Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 27, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Wingstop Inc. | ||
Entity Central Index Key | 1,636,222 | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 29,333,868 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,515.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 12,493 | $ 4,063 |
Restricted cash | 4,462 | 0 |
Accounts receivable, net | 5,764 | 4,567 |
Prepaid expenses and other current assets | 2,056 | 4,334 |
Advertising fund assets, restricted | 5,131 | 2,944 |
Total current assets | 29,906 | 15,908 |
Property and equipment, net | 8,338 | 5,826 |
Goodwill | 49,655 | 46,557 |
Trademarks | 32,700 | 32,700 |
Customer relationships, net | 18,240 | 17,739 |
Other non-current assets | 4,917 | 3,278 |
Total assets | 139,749 | 119,836 |
Current liabilities | ||
Accounts payable | 2,750 | 1,752 |
Other current liabilities | 16,201 | 10,929 |
Current portion of debt | 2,400 | 3,500 |
Advertising fund liabilities | 5,131 | 2,944 |
Total current liabilities | 26,482 | 19,125 |
Long-term debt, net | 309,374 | 129,841 |
Deferred revenues, net of current | 21,885 | 21,226 |
Deferred income tax liabilities, net | 4,866 | 5,920 |
Other non-current liabilities | 1,972 | 2,142 |
Total liabilities | 364,579 | 178,254 |
Commitments and contingencies | ||
Stockholders' deficit | ||
Common stock, $0.01 par value; 100,000,000 shares authorized; 29,296,939 and 29,092,669 shares issued and outstanding as of December 29, 2018 and December 30, 2017, respectively | 293 | 291 |
Additional paid-in-capital | 1,036 | 262 |
Accumulated deficit | (226,159) | (58,971) |
Total stockholders' deficit | (224,830) | (58,418) |
Total liabilities and stockholders' deficit | 139,749 | 119,836 |
Customer relationships | ||
Current assets | ||
Customer relationships, net | $ 14,233 | $ 15,567 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 |
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) | 29,296,939 | 29,092,669 |
Common Stock, Shares, Outstanding | 29,296,939 | 29,092,669 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | Dec. 03, 2018 | Feb. 14, 2018 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue: | ||||||||||||||
Advertising fees and related income | $ 34,484 | $ 30,174 | $ 14,561 | |||||||||||
Total revenues | $ 40,509 | $ 38,246 | $ 37,037 | $ 37,389 | $ 35,208 | $ 33,123 | $ 31,578 | $ 33,410 | 153,181 | 133,319 | 103,324 | |||
Costs and expenses: | ||||||||||||||
Cost of sales | 32,063 | [1] | 28,745 | 25,308 | ||||||||||
Advertising expenses | 33,699 | 32,427 | 13,849 | |||||||||||
Selling, general and administrative | 44,579 | 34,898 | 34,552 | |||||||||||
Depreciation and amortization | 4,313 | 3,376 | 3,008 | |||||||||||
Total costs and expenses | 114,654 | 99,446 | 76,717 | |||||||||||
Operating income | 8,679 | 10,356 | 9,926 | 9,566 | 8,466 | 8,696 | 8,186 | 8,525 | 38,527 | 33,873 | 26,607 | |||
Interest expense, net | 10,123 | 5,131 | 4,396 | |||||||||||
Other expense, net | 1,477 | 0 | 254 | |||||||||||
Income before income tax expense | 26,927 | 28,742 | 21,957 | |||||||||||
Income tax expense | 5,208 | 4,802 | 8,188 | |||||||||||
Net income | $ 2,419 | $ 6,293 | $ 6,839 | $ 6,168 | $ 8,072 | $ 4,704 | $ 4,907 | $ 6,257 | $ 21,719 | $ 23,940 | $ 13,769 | |||
Earnings per share | ||||||||||||||
Basic (in usd per share) | $ 0.08 | $ 0.21 | $ 0.23 | $ 0.21 | $ 0.28 | $ 0.16 | $ 0.17 | $ 0.22 | $ 0.74 | $ 0.82 | $ 0.48 | |||
Diluted (in usd per share) | $ 0.08 | $ 0.21 | $ 0.23 | $ 0.21 | $ 0.27 | $ 0.16 | $ 0.17 | $ 0.21 | $ 0.73 | $ 0.82 | $ 0.47 | |||
Weighted average shares outstanding | ||||||||||||||
Basic (in shares) | 29,296 | 29,284 | 29,230 | 29,116 | 29,094 | 29,081 | 29,032 | 28,895 | 29,231 | 29,025 | 28,637 | |||
Diluted (in shares) | 29,620 | 29,584 | 29,528 | 29,503 | 29,459 | 29,384 | 29,394 | 29,336 | 29,587 | 29,424 | 28,983 | |||
Dividends per share (in usd per share) | $ 3.05 | $ 3.17 | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 6.54 | $ 0.14 | $ 2.90 | |||
Franchise | ||||||||||||||
Revenue: | ||||||||||||||
Royalty revenue, franchise fees and other | $ 71,858 | $ 66,076 | $ 54,475 | |||||||||||
Franchisor Owned Outlet | ||||||||||||||
Revenue: | ||||||||||||||
Total revenues | $ 46,839 | $ 37,069 | $ 34,288 | |||||||||||
[1] | Cost of sales excludes depreciation and amortization, which are presented separately, and includes advertising expenses incurred at company-owned restaurants. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance (in shares) at Dec. 26, 2015 | 28,581,182 | |||
Balance at Dec. 26, 2015 | $ (14,810,000) | $ 286,000 | $ 36,870,000 | $ (51,966,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 13,769,000 | 13,769,000 | ||
Exercise of stock options (in shares) | 166,210 | |||
Exercise of stock options | 485,000 | $ 1,000 | 484,000 | |
Payments Related to Tax Withholding for Share-based Compensation | 0 | |||
Stock-based compensation expense | 1,231,000 | 1,231,000 | ||
Excess tax benefit of stock-based compensation | 1,163,000 | 1,163,000 | ||
Dividends paid | (83,268,000) | (38,554,000) | (44,714,000) | |
Balance (in shares) at Dec. 31, 2016 | 28,747,392 | |||
Balance at Dec. 31, 2016 | (81,430,000) | $ 287,000 | 1,194,000 | (82,911,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 23,940,000 | 23,940,000 | ||
Issuance of common stock, net (in shares) | 19,168 | |||
Issuance of common stock, net | $ 1,000 | (1,000) | ||
Exercise of stock options (in shares) | 326,109 | |||
Exercise of stock options | 1,318,000 | $ 3,000 | 1,315,000 | |
Payments Related to Tax Withholding for Share-based Compensation | 0 | |||
Stock-based compensation expense | 1,851,000 | 1,851,000 | ||
Dividends paid | $ (4,097,000) | (4,097,000) | ||
Balance (in shares) at Dec. 30, 2017 | 29,092,669 | 29,092,669 | ||
Balance at Dec. 30, 2017 | $ (58,418,000) | $ 291,000 | 262,000 | (58,971,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 21,719,000 | 21,719,000 | ||
Issuance of common stock, net (in shares) | 50,442 | |||
Issuance of common stock, net | $ 1,000 | (1,000) | ||
Exercise of stock options (in shares) | 158,000 | 157,819 | ||
Exercise of stock options | $ 517,000 | $ 1,000 | 516,000 | |
Shares Paid for Tax Withholding for Share Based Compensation | (3,991) | |||
Payments Related to Tax Withholding for Share-based Compensation | (183,000) | (183,000) | ||
Stock-based compensation expense | 3,725,000 | 3,725,000 | ||
Dividends paid | $ (192,190,000) | (3,466,000) | (188,724,000) | |
Balance (in shares) at Dec. 29, 2018 | 29,296,939 | 29,296,939 | ||
Balance at Dec. 29, 2018 | $ (224,830,000) | $ 293,000 | $ 1,036,000 | $ (226,159,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 21,719,000 | $ 23,940,000 | $ 13,769,000 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 4,313,000 | 3,376,000 | 3,008,000 |
Deferred income taxes | (1,054,000) | (2,548,000) | (1,645,000) |
Stock-based compensation expense | 3,725,000 | 1,851,000 | 1,231,000 |
Amortization of debt issuance costs | 1,983,000 | 292,000 | 437,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,197,000) | (1,368,000) | 205,000 |
Prepaid expenses and other assets | (178,000) | (503,000) | (171,000) |
Advertising fund assets and liabilities, net | 1,657,000 | 386,000 | (1,450,000) |
Accounts payable and other current liabilities | 6,996,000 | (876,000) | 3,648,000 |
Deferred revenue | 977,000 | 3,052,000 | 2,644,000 |
Other non-current liabilities | (171,000) | (167,000) | 203,000 |
Cash provided by operating activities | 38,770,000 | 27,435,000 | 21,879,000 |
Investing activities | |||
Purchases of property and equipment | (3,982,000) | (2,535,000) | (2,056,000) |
Acquisition of restaurants from franchisees | (6,516,000) | (3,949,000) | 0 |
Cash used in investing activities | (10,498,000) | (6,484,000) | (2,056,000) |
Financing activities | |||
Proceeds from exercise of stock options | 517,000 | 1,318,000 | 485,000 |
Borrowings of long-term debt | 551,108,000 | 3,500,000 | 165,000,000 |
Repayments of long-term debt | (364,858,000) | (21,000,000) | (109,250,000) |
Payment of deferred financing costs | (9,571,000) | 0 | (1,180,000) |
Tax payments for restricted stock upon vesting | (183,000) | 0 | 0 |
Dividends paid | (190,737,000) | (4,070,000) | (83,268,000) |
Cash used in financing activities | (13,724,000) | (20,252,000) | (28,213,000) |
Net change in cash, cash equivalents, and restricted cash | 14,548,000 | 699,000 | (8,390,000) |
Cash, cash equivalents, and restricted cash at beginning of period | 6,392,000 | 5,693,000 | 14,083,000 |
Cash, cash equivalents, and restricted cash at end of period | 20,940,000 | 6,392,000 | 5,693,000 |
Supplemental information: | |||
Cash paid for interest | 7,601,000 | 4,842,000 | 4,775,000 |
Cash paid for taxes | $ 2,951,000 | $ 10,096,000 | $ 7,230,000 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Overview Wingstop Inc. (“Wingstop” or the “Company”), together with its consolidated subsidiaries, is in the business of franchising and operating Wingstop restaurants. As of December 29, 2018 , 1,095 franchised restaurants were in operation domestically and 128 international franchised restaurants were in operation across nine countries. As of December 29, 2018 , the Company owned and operated 29 restaurants. 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 2018 and 2017 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, Cash Equivalents, and Restricted Cash The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 29, 2018 and December 30, 2017 , we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents. In accordance with the Company’s securitized financing facility, certain cash accounts have been established in the name of Citibank, N.A. (the “Trustee”) for the benefit of the Trustee and the noteholders, and are restricted in their use. The Company holds restricted cash which primarily represents (i) cash collections held by the Trustee and (ii) interest, principal, and commitment fee reserves held by the Trustee related to the Company’s Notes (see Note 10). Pursuant to new accounting guidance adopted in fiscal year 2018 (see Note 1(r)), restricted cash is combined with cash and cash equivalents when reconciling the beginning and end of period balances in the consolidated statements of cash flows. Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of December 29, 2018 and December 30, 2017 were as follows (in thousands): December 29, 2018 December 30, 2017 Cash and cash equivalents $ 12,493 $ 4,063 Restricted cash 4,462 — Restricted cash, included in Advertising fund assets, restricted 3,985 2,329 Total cash, cash equivalents, and restricted cash $ 20,940 $ 6,392 (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 Computer software 3 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 2018 , 2017 or 2016 . 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 primarily of royalties, national advertising fund contributions, initial and renewal franchise fees, and upfront fees from development agreements and international territory agreements. These performance obligations under franchise agreements consist of (a) a franchise license, (b) pre-opening services, such as training, and (c) ongoing services, such as management of the national advertising fund contributions, development of training materials and menu items, and restaurant monitoring. These performance obligations are highly interrelated, so they are not considered to be individually distinct and therefore are accounted for as a single performance obligation, which is satisfied by providing a right to use our intellectual property over the term of each franchise agreement. Franchise fee, development fee and international territory fee payments received by the Company 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 $8.2 million , $11.2 million , and $6.5 million , during fiscal years 2018 , 2017 , and 2016 , respectively, of which $1.2 million , $0.9 million , and $1.0 million was classified as a reduction in Cost of sales during fiscal years 2018 , 2017 , and 2016 , respectively. (m) Advertising Expenses The Company administers the Wingstop Restaurants Advertising Fund (“Ad Fund”), for which a percentage of gross sales is collected from Wingstop restaurant franchisees and company-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 Ad Fund contribution collected from Wingstop restaurant franchisees and company-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. The Company administers and directs the development of all advertising and promotion programs in the Ad Fund for which it collects advertising contributions, in accordance with the provisions of its franchise agreements. The Company has a contractual obligation with regard to these advertising contributions. The Company consolidates and reports all assets and liabilities of the Ad Fund as restricted assets of the Ad Fund and restricted liabilities of the Ad Fund within current assets and current liabilities, respectively, in the Consolidated Balance Sheets. The assets and liabilities of the Ad Fund consist primarily of cash, receivables, accrued expenses, other liabilities, and any cumulative surplus related to the Ad Fund. Pursuant to the Company’s franchise agreements, use of Ad Fund contributions is 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 that are directly associated with administering the Ad Fund, as outlined in the provisions of the applicable franchise agreements. Ad Fund contributions and expenditures are reported on a gross basis in the Consolidated Statements of Operations, which are largely offsetting and therefore do not impact our reported net income. Advertising expenses incurred by company-owned restaurants are included within Cost of sales in the Consolidated Statements of Operations. Administrative support services and compensation expenses of employees that provide services directly to the Ad Fund, are included in Selling, general and administrative expenses (“SG&A”) in the Consolidated Statements of Operations. Company operated restaurants incurred advertising expenses of $1.9 million in fiscal years 2018 , and $1.5 million in fiscal years 2017 and 2016 , which are included in cost of sales in the Consolidated Statements of Operations and include the company-operated restaurants’ Ad Fund contributions that are equal to 3% of gross sales for fiscal years 2018 and 2017 and 2% for fiscal year 2016. (n) Leases The Company 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, the Company 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 the Company’s option, the Company 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 the Company 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, the Company 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. The Company accounts for forfeitures as they occur. (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 29, 2018 , the franchise operations segment consisted of 1,223 restaurants operated by Wingstop franchisees in the United States and nine countries outside of the United States as compared to 1,110 franchised restaurants in operation as of December 30, 2017 . Franchise operations revenue consists primarily of franchise royalty revenue, Ad Fund contributions, fees for the sale of franchise and development agreements, and international territory agreements. 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 29, 2018 , the Company segment consisted of 29 company-owned restaurants, located in the United States, as compared to 23 company-owned restaurants as of December 30, 2017 . Company-owned 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 transaction costs associated with debt refinancings and special dividends. The Company allocates selling, general and administrative expenses based on the relative support provided to each reportable segment. (r) Recent Accounting Pronouncements Recently issued In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”). 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 fiscal year 2019, with early adoption permitted, and a modified retrospective transition approach required for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company will adopt this new guidance using the modified retrospective transition approach through a cumulative-effect adjustment at the beginning of the first quarter of 2019. The Company will elect the package of practical expedients, as well as the hindsight practical expedient, permitted under the new guidance, which includes allowing the Company to continue utilizing historical classification of leases. In preparation for the adoption, the Company is implementing new accounting systems, business processes and internal controls to assist in the application of the new guidance. The adoption of the standard will result in the recognition of right-of-use assets and lease liabilities for operating leases which will result in additional assets and corresponding liabilities of approximately $9 million to $11 million on the consolidated balance sheets, with no material impact to its consolidated statements of income, stockholders’ equity, or cash flows. Our assessment is ongoing and subject to finalization such that the actual impact may differ from the estimated range. Recently adopted In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740) (“ASU 2018-05”) . ASU 2018-05 provides guidance on accounting for the income tax effects of the Tax Cuts and Jobs Act of 2017 (the “Act”), which impacts U.S. corporate tax rates, business-related exclusions, and deductions and credits. The Act also has tax consequences for many companies that operate internationally. The Company recognized the income tax effects of the Act in its 2017 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of Accounting Standards Codification (“ASC”) Topic 740, "Income Taxes," in the reporting period in which the Act was signed into law. The Company completed its analysis during the fourth quarter of 2018 and all adjustments are reflected within the financial statements presented. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which superseded nearly all existing revenue recognition guidance. The new guidance provided 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 Company adopted this new guidance effective the first day of fiscal year 2018, using the full retrospective transition method, which resulted in adjusting each prior reporting period presented and a cumulative effect adjustment of $5.1 million, which was recorded as of the first day of 2016. The adoption changed the timing of recognition of initial franchise fees, development fees, territory fees for our international business and renewal and transfer fees, as well as the reporting of Ad Fund contributions and related expenditures. See the tables below as well as Note 15 to our consolidated financial statements, Revenue from Contracts with Customers , for further discussion. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires that restricted cash and cash equivalents be included as components of total cash and cash equivalents as presented on the statement of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and a retrospective transition method is required. The Company adopted this new guidance effective the first day of fiscal year 2018, using the full retrospective transition method, which resulted in adjusting the Statement of Cash Flows for each prior period presented. The following table presents the effect of the adoption of ASU 2014-09 on our consolidated balance sheets as of December 30, 2017 (in thousands): As reported Adjustments for adoption of ASU 2014-09 As adjusted Assets Current assets Cash and cash equivalents $ 4,063 $ — $ 4,063 Accounts receivable, net 4,567 — 4,567 Prepaid expenses and other current assets 4,334 — 4,334 Advertising fund assets, restricted 2,944 — 2,944 Total current assets 15,908 — 15,908 Property and equipment, net 5,826 — 5,826 Goodwill 46,557 — 46,557 Trademarks 32,700 — 32,700 Customer relationships, net 15,567 — 15,567 Other non-current assets 3,278 — 3,278 Total assets $ 119,836 $ — $ 119,836 Liabilities and stockholders' deficit Current liabilities Accounts payable $ 1,752 $ — $ 1,752 Other current liabilities 10,683 246 10,929 Current portion of debt 3,500 — 3,500 Advertising fund liabilities 2,944 — 2,944 Total current liabilities 18,879 246 19,125 Long-term debt, net 129,841 — 129,841 Deferred revenues, net of current 8,427 12,799 21,226 Deferred income tax liabilities, net 8,799 (2,879 ) 5,920 Other non-current liabilities 2,142 — 2,142 Total liabilities 168,088 10,166 178,254 Commitments and contingencies Stockholders' deficit Common stock 291 — 291 Additional paid-in-capital 262 — 262 Accumulated deficit (48,805 ) (10,166 ) (58,971 ) Total stockholders' deficit (48,252 ) (10,166 ) (58,418 ) Total liabilities and stockholders' deficit $ 119,836 $ — $ 119,836 The following table presents the effect of the adoption of ASU 2014-09 on our consolidated statements of operations for the fiscal year ended December 30, 2017 (in thousands, except per share amounts): Adjustments for adoption of ASU 2014-09 As reported Franchise Fees Advertising As adjusted Revenue: Royalty revenue, franchise fees and other $ 68,483 $ (2,407 ) $ — $ 66,076 Advertising fees and related income — — 30,174 30,174 Company-owned restaurant sales 37,069 — — 37,069 Total revenue 105,552 (2,407 ) 30,174 133,319 Costs and expenses: Cost of sales (1) 28,745 — — 28,745 Advertising expenses — — 32,427 32,427 Selling, general and administrative 37,151 — (2,253 ) 34,898 Depreciation and amortization 3,376 — — 3,376 Total costs and expenses 69,272 — 30,174 99,446 Operating income 36,280 (2,407 ) — 33,873 Interest expense, net 5,131 — — 5,131 Income before income tax expense 31,149 (2,407 ) — 28,742 Income tax expense 3,845 957 — 4,802 Net income $ 27,304 $ (3,364 ) $ — $ 23,940 Earnings per share Basic $ 0.94 $ (0.12 ) $ — $ 0.82 Diluted $ 0.93 $ (0.11 ) $ — $ 0.82 (1) Cost of sales excludes depreciation and amortization, which are presented separately, and includes advertising expenses incurred at company-owned restaurants. The following table presents the effect of the adoption of ASU 2014-09 on our consolidated statements of operations for the fiscal year ended December 31, 2016 (in thousands, except per share amounts): Adjustments for adoption of ASU 2014-09 As reported Franchise Fees Advertising As adjusted Revenue: Royalty revenue, franchise fees and other $ 57,071 $ (2,596 ) $ — $ 54,475 Advertising fees and related income — — 14,561 14,561 Company-owned restaurant sales 34,288 — — 34,288 Total revenue 91,359 (2,596 ) 14,561 103,324 Costs and expenses: Cost of sales (1) 25,308 — — 25,308 Advertising expenses — — 13,849 13,849 Selling, general and administrative 33,840 — 712 34,552 Depreciation and amortization 3,008 — — 3,008 Total costs and expenses 62,156 — 14,561 76,717 Operating income 29,203 (2,596 ) — 26,607 Interest expense, net 4,396 — — 4,396 Other expense, net 254 — — 254 Income before income tax expense 24,553 (2,596 ) — 21,957 Income tax expense 9,119 (931 ) — 8,188 Net income $ 15,434 $ (1,665 ) $ — $ 13,769 Earnings per share Basic $ 0.54 $ (0.06 ) $ — $ 0.48 Diluted $ 0.53 $ (0.06 ) $ — $ 0.47 (1) Cost of sales excludes depreciation and amortization, which are presented separately, and includes advertising expenses incurred at company-owned restaurants. The following table presents the effect of the adoption of ASU 2014-09 and ASU 2016-18 on our consolidated statements of cash flows for the fiscal year ended December 30, 2017 (in thousands): As reported Adjustments for adoption of ASU 2014-09 Adjustments for adoption of ASU 2016-18 As adjusted Operating activities Net income $ 27,304 $ (3,364 ) $ — $ 23,940 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 3,376 — — 3,376 Deferred income taxes (3,505 ) 957 — (2,548 ) Stock-based compensation expense 1,851 — — 1,851 Amortization of debt issuance costs 292 — — 292 Changes in operating assets and liabilities: Accounts receivable (1,368 ) — — (1,368 ) Prepaid expenses and other assets (503 ) — — (503 ) Advertising fund assets and liabilities, net — — 386 386 Accounts payable and other current liabilities (876 ) — — (876 ) Deferred revenue 645 2,407 — 3,052 Other non-current liabilities (167 ) — — (167 ) Cash provided by operating activities 27,049 — 386 27,435 Investing activities Purchases of property and equipment (2,535 ) — — (2,535 ) Acquisition of restaurant from franchisee (3,949 ) — — (3,949 ) Cash used in investing activities (6,484 ) — — (6,484 ) Financing activities Proceeds from exercise of stock options 1,318 — — 1,318 Borrowings of long-term debt 3,500 — — 3,500 Repayments of long-term debt (21,000 ) — — (21,000 ) Dividends paid (4,070 ) — — (4,070 ) Cash used in financing activities (20,252 ) — — (20,252 ) Net change in cash, cash equivalents, and restricted cash 313 — 386 699 Cash, cash equivalents, and restricted cash at beginning of period 3,750 — 1,943 5,693 Cash, cash equivalents, and restricted cash at end of period $ 4,063 $ — $ 2,329 $ 6,392 The following table presents the effect of the adoption of ASU 2014-09 and ASU 2016-18 on our consolidated statements of cash flows for the fiscal year ended December 31, 2016 (in thousands): As reported Adjustments for adoption of ASU 2014-09 Adjustments for adoption of ASU 2016-18 As adjusted Operating activities Net income $ 15,434 $ (1,665 ) $ — $ 13,769 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 3,008 — — 3,008 Deferred income taxes (714 ) (931 ) — (1,645 ) Stock-based compensation expense 1,231 — — 1,231 Amortization of debt issuance costs 437 — — 437 Changes in operating assets and liabilities: Accounts receivable 205 — — 205 Prepaid expenses and other assets (171 ) — — (171 ) Advertising fund assets and liabilities, net — — (1,450 ) (1,450 ) Accounts payable and other current liabilities 3,648 — — 3,648 Deferred revenue 48 2,596 — 2,644 Other non-current liabilities 203 — — 203 Cash provided by operating activities 23,329 — (1,450 ) 21,879 Investing activities Purchases of property and equipment (2,056 ) — — (2,056 ) Cash used in investing activities (2,056 ) — — (2,056 ) Financing activities Proceeds from exercise of stock options 485 — — 485 Borrowings of long-term debt 165,000 — — 165,000 Repayments of long-term debt (109,250 ) — — (109,250 ) Payment of deferred financing costs (1,180 ) — — (1,180 ) Dividends paid (83,268 ) — — (83,268 ) Cash used in financing activities (28,213 ) — — (28,213 ) Net change in cash, cash equivalents, and restricted cash (6,940 ) — (1,450 ) (8,390 ) Cash, cash equivalents, and restricted cash at beginning of period 10,690 — 3,393 14,083 Cash, cash equivalents, and restricted cash at end of period $ 3,750 $ — $ 1,943 $ 5,693 |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings 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 3,000 , 6,000 , and 4,000 equity awards outstanding at December 29, 2018 , December 30, 2017 , and December 31, 2016 , 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 29, December 30, December 31, Basic weighted average shares outstanding 29,231 29,025 28,637 Dilutive shares 356 399 346 Diluted weighted average shares outstanding 29,587 29,424 28,983 |
Dividends (Notes)
Dividends (Notes) | 12 Months Ended |
Dec. 29, 2018 | |
Dividends [Abstract] | |
Dividends Disclosure [Text Block] | Dividends During 2018 , the Company’s Board of Directors approved a quarterly dividend of $0.07 per share of common stock in each of the first two quarters, and a quarterly dividend of $0.09 per share of common stock in each of the third and fourth quarters, with aggregate dividends of $9.4 million , or $0.32 per common share, which were paid in fiscal year 2018 . Subsequent to the fourth quarter, on February 26, 2019 , the Company’s Board of Directors declared a quarterly dividend of $0.09 per share of common stock for stockholders of record as of March 13, 2019 , to be paid on March 27, 2019 , totaling approximately $2.7 million . Separate from our regular dividend program, on January 30, 2018 and November 14, 2018 , the Company’s Board of Directors declared special cash dividends of $3.17 per share and $3.05 per share, respectively, which were paid on February 14, 2018 and December 3, 2018 , respectively, totaling $182.8 million . During 2017, the Company’s Board of Directors declared a quarterly dividend of $0.07 per share of common stock in each of the last two quarters of 2017, totaling $4.1 million . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018 December 30, 2017 Carrying Value Fair Value Carrying Value Fair Value Securitized Financing Facility: 2018-1 Class A-2 Senior Secured Notes (1) Level 2 $ 320,000 $ 320,000 $ — $ — Senior Secured Credit Facility: Term loan facility (1) Level 2 $ — $ — $ 64,750 $ 64,750 Revolving credit facility (1) Level 2 $ — $ — $ 69,000 $ 69,000 (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. 29, 2018 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivables, net, consist of the following (in thousands): December 29, December 30, Vendor rebates receivable $ 2,224 $ 2,145 Royalties receivable, net 1,521 987 Gift card receivable 1,484 1,184 Other receivables 535 251 Accounts receivable, net $ 5,764 $ 4,567 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following (in thousands): December 29, December 30, Equipment, furniture and fixtures $ 11,192 $ 9,298 Leasehold improvements 7,929 7,005 Construction in progress 1,962 183 Property and equipment, gross 21,083 16,486 Less: accumulated depreciation (12,745 ) (10,660 ) Property and equipment, net $ 8,338 $ 5,826 Depreciation expense was $2.1 million , $1.9 million and $1.6 million for the fiscal years ended December 29, 2018 , December 30, 2017 and December 31, 2016 , respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 29, 2018 | |
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 and 2018. 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 29, December 30, Balance, beginning of period $ 46,557 $ 45,128 Acquisition of restaurants 3,098 1,429 Balance, end of period $ 49,655 $ 46,557 Intangible assets, excluding goodwill, consisted of the following (in thousands): December 29, December 30, 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) 5,028 2,323 5.4 Proprietary software (1) 115 115 5.0 Noncompete agreements (1) 250 250 2.8 Less: accumulated amortization (13,453 ) (11,249 ) Definite-lived assets 18,240 17,739 17.5 Intangible assets, net $ 50,940 $ 50,439 (1) Included within Other non-current assets net of associated accumulated amortization within the Consolidated Balance Sheets. Amortization expense for definite-lived intangibles was $2.2 million , $1.5 million , and $1.4 million for fiscal years 2018 , 2017 , and 2016 , respectively. Estimated amortization expense, principally related to customer relationships, for the five succeeding years and the aggregate thereafter is (in thousands): Fiscal year 2019 $ 2,378 Fiscal year 2020 2,117 Fiscal year 2021 1,957 Fiscal year 2022 1,800 Fiscal year 2023 1,692 Thereafter 8,296 Total $ 18,240 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets and Other Current Liabilities | 12 Months Ended |
Dec. 29, 2018 | |
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 29, December 30, Prepaid expenses $ 1,468 $ 946 Federal income tax receivable — 2,500 Prepaid gift card expenses 289 672 Inventories 299 216 Total $ 2,056 $ 4,334 Other current liabilities consisted of the following (in thousands): December 29, December 30, Accrued payroll and bonuses $ 5,183 $ 4,192 Current portion of deferred revenues 2,343 2,041 Gift card liability 2,782 2,074 Taxes payable 398 163 Other accrued liabilities 5,495 2,459 Total $ 16,201 $ 10,929 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) for the fiscal years 2018 , 2017 and 2016 consists of the following (in thousands): Fiscal Year December 29, December 30, December 31, Current expense Federal $ 4,932 $ 6,204 $ 8,854 State 1,089 800 847 Foreign 241 346 132 Deferred expense (benefit) Federal (946 ) (2,660 ) (1,571 ) State (108 ) 112 (74 ) Income tax expense $ 5,208 $ 4,802 $ 8,188 A reconciliation of income tax at the United States federal statutory tax rate (using a statutory tax rate of 21% and 35% as appropriate) to income tax expense for fiscal years 2018 , 2017 and 2016 in dollars is as follows (in thousands): Fiscal Year December 29, December 30, December 31, Expected income tax expense at statutory rate $ 5,655 $ 10,060 $ 7,685 Tax Act impact on deferred taxes — (3,647 ) — Permanent differences (1,462 ) (2,300 ) 92 State tax expense, net of federal benefit 520 589 373 Foreign tax expense 241 347 132 Foreign tax credits (241 ) (347 ) (132 ) Increase in unrecognized tax benefit 322 114 185 Valuation allowance — — — Other 173 (14 ) (147 ) Income tax expense $ 5,208 $ 4,802 $ 8,188 The components of deferred tax assets (liabilities) are as follows (in thousands): December 29, 2018 December 30, 2017 Deferred tax assets: Deferred revenue $ 4,470 $ 4,282 Accrued bonus 276 53 Stock based compensation 735 607 Deferred rent 257 270 Intangible assets 118 191 Other 405 157 Net operating loss carryforwards and credits 571 443 Valuation allowance (482 ) (482 ) 6,350 5,521 Deferred tax liabilities: Intangible assets (10,933 ) (11,302 ) Property and equipment (283 ) (139 ) (11,216 ) (11,441 ) Net deferred tax liability $ (4,866 ) $ (5,920 ) The Company had a state net operating loss carry-forward of $23.3 million at December 29, 2018 and December 30, 2017 , respectively. The state net operating loss carry forwards begin to expire in 2030. As of December 29, 2018 and 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. 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 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 Additions for tax positions of prior years 78 Subtractions for tax positions of prior years — Additions for tax positions of current year 155 Subtractions for tax positions of current year — Balance as of December 29, 2018 $ 913 As of December 29, 2018 and December 30, 2017 , the accrued interest and penalties on the unrecognized tax benefits were $258,000 and $151,000 , 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. At December 29, 2018 and December 30, 2017 , the amount of unrecognized tax benefits was $913,000 and $680,000 of which, if ultimately recognized, would reduce the Company’s effective tax rate. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Long-term debt consists of the following components (in thousands): December 29, 2018 December 30, 2017 Term loan $ — $ 64,750 Revolving credit facility — 69,000 2018-1 Class A-2 Senior Secured Notes 320,000 — Debt issuance costs, net of amortization (8,226 ) (409 ) Less: current portion of debt (2,400 ) (3,500 ) Long-term debt, net $ 309,374 $ 129,841 Securitized Financing Facility On November 14, 2018, Wingstop Funding LLC (“Wingstop Funding” or the “Issuer”), a limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiary of Wingstop Inc., entered into a base indenture and a related supplemental indenture, which allow the Issuer to issue multiple series of notes. On the same date, the Issuer issued $320 million of its Series 2018-1 4.970% Fixed Rate Senior Secured Notes, Class A-2 (the “Class A-2 Notes”). In connection with the issuance of the Class A-2 Notes, the Issuer also entered into a revolving financing facility of Series 2018-1 Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”), which permits borrowings of up to a maximum principal amount of $20 million , which may be used to issue letters of credit. A portion of the proceeds of the Class A-2 Notes was used to repay the $215 million of principal outstanding on the outstanding term loan and revolving credit facility and to pay related transaction fees. The additional net proceeds were used for general corporate purposes, which included a return of capital to the Company’s shareholders in 2018 (see note 3). No amounts were borrowed under the Variable Funding Notes in fiscal year 2018. The Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “Notes” and were issued in a securitization transaction pursuant to which certain of the Company’s domestic and foreign revenue-generating assets, consisting principally of franchise-related agreements and intellectual property (collectively, the “Securitized Assets”), were contributed or otherwise transferred to the Issuer and certain other limited-purpose, bankruptcy-remote, wholly owned indirect subsidiaries of the Company (collectively, the “Securitization Entities”) that act as guarantors of the Notes and that have pledged substantially all of their assets. Interest and principal payments on the Class A-2 Notes are payable on a quarterly basis. The requirement to make such quarterly principal payments on the Class A-2 Notes is subject to certain financial conditions set forth in the Indenture. The legal final maturity date of the Notes is in December of 2048, but, unless earlier prepaid to the extent permitted under the Indenture, the anticipated repayment date of the Class A-2 Notes will be in December 2023. If the Issuer has not repaid or refinanced the Class A-2 Notes prior to the anticipated repayment date, additional interest will accrue on the Notes. The Variable Funding Notes accrue interest at a variable rate based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the London interbank offered rate for U.S. Dollars or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, in each case plus any applicable margin, as more fully set forth in the Variable Funding Note Purchase Agreement. There is a commitment fee on the unused portion of the Variable Funding Notes facility, which is 50 basis points based on the utilization under the Variable Funding Notes facility. As of December 29, 2018 , $5.0 million of letters of credit were outstanding against the Variable Funding Notes, which relate primarily to interest reserves required under the Indenture. Total debt issuance costs incurred and capitalized in connection with the issuance of the Notes were $8.8 million . Previously capitalized financing costs of $1.5 million were expensed as a result of the refinancing in fiscal year 2018. The Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Issuer maintains specified reserve accounts to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Class A-2 Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, that the assets pledged as collateral for the Notes are in stated ways defective or ineffective, and (iv) covenants relating to recordkeeping, access to information, and similar matters. The Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated debt service coverage ratios, the sum of global gross sales for specified restaurants being below certain levels on certain measurement dates, certain change of control and manager termination events, an event of default, and the failure to repay or refinance the Class A‑2 Notes on the applicable scheduled maturity date. The Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments. As of December 29, 2018 , the Company was in compliance with all financial covenants. Senior credit facility In January 2018, the Company entered into an amended senior secured credit facility (the “2018 Facility”), which replaced its senior secured credit facility dated June 30, 2016 (the “2016 Facility”). The 2018 Facility included a term loan facility in an aggregate principal amount of $100 million and a revolving credit facility up to an aggregate principal amount of $150 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 special dividend of $93.1 million to its stockholders. Borrowings under the 2018 Facility bore interest, payable quarterly, at the Company’s 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 had a maturity date of January 2023. In conjunction with the 2018 Facility, the Company evaluated the refinancing of the 2016 Facility and determined $202.5 million should be accounted for as a debt modification and $47.5 million should be new debt issuance. The Company incurred $1.0 million in financing costs of which $0.2 million was expensed and $0.8 million was capitalized. In June 2016, the Company entered into a $180.0 million new senior secured credit facility, which replaced the Company’s second amended and restated credit facility dated March 18, 2015 (the “2015 Facility”). The 2016 Facility included 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 bore 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 had a maturity date of June 2021. The revolving credit facility bore 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 bore a commitment fee ( 0.375% to 0.50% , dependent on the Company’s reported leverage ratio). 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. Previously capitalized financing costs of $0.2 million were expensed as a result of the refinancing in fiscal year 2016. As of December 29, 2018 , the scheduled principle payments on debt were as follows (in thousands): Fiscal year 2019 $ 2,400 Fiscal year 2020 3,200 Fiscal year 2021 3,200 Fiscal year 2022 3,200 Fiscal year 2023 308,000 Total $ 320,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases certain office and retail space and equipment under non-cancelable operating leases with terms expiring at various dates through July 2027 . 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 29, 2018 , is as follows (in thousands): Fiscal year 2019 $ 2,181 Fiscal year 2020 2,214 Fiscal year 2021 2,005 Fiscal year 2022 1,800 Fiscal year 2023 1,523 Thereafter 2,145 Total $ 11,868 Rent expense under cancelable and non-cancelable leases was $2.3 million , $2.0 million , and $1.9 million for the fiscal years ended December 29, 2018 , December 30, 2017 , and December 31, 2016 , 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. 29, 2018 | |
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 $556,000 , $450,000 and $425,000 for fiscal years 2018 , 2017 and 2016 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Wingstop Inc. 2015 Omnibus Equity Incentive Plan, or the 2015 Plan, was adopted in June 2015 and is currently the only plan under which the Company currently grants awards. 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. As of December 29, 2018 , there were approximately 1.8 million shares available for future grants under the 2015 Plan. Prior to the 2015 Plan, the Company granted awards under the 2010 Stock Option Plan. The options and restricted stock awards granted under the 2015 Plan are subject to either service-based or performance-based vesting. Service-based awards 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 or sales targets for the vesting period. In the event of a change in control of the Company (as defined in the 2015 Plan), unless otherwise determined by the Board of Directors or the Compensation Committee of the Company, each outstanding award will become fully vested immediately prior to the change in control and shall be exchanged for cash. 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 $3.7 million , $1.9 million , and $1.2 million in stock compensation expense for fiscal years 2018 , 2017 , and 2016 , 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. 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 30, 2017 420 5.45 $ 14,068 5.7 Options granted 2 44.03 Options exercised (158 ) 3.29 Options canceled (28 ) 7.53 Outstanding - December 29, 2018 236 $ 6.04 $ 13,848 4.8 The total grant-date fair value of stock options vested during each of the fiscal years 2018 , 2017 , and 2016 was $0.5 million , $1.0 million , and $1.0 million , respectively. The total intrinsic value of stock options exercised was $7.6 million , $8.1 million , and $3.8 million for fiscal years 2018 , 2017 , and 2016 , respectively. A summary of the status of non-vested options as of December 29, 2018 and the changes during the period then ended is presented below (in thousands, except per share data): Stock Options Weighted average grant-date fair value Non-vested options - December 30, 2017 171 $ 9.54 Granted 2 $ 44.03 Vested (86 ) $ 6.76 Forfeited (28 ) $ 7.53 Non-vested options - December 29, 2018 59 $ 12.82 As of December 29, 2018 , there was $0.3 million of total unrecognized stock compensation expense related to non-vested stock options, which will be recognized over a weighted average period of approximately 1.0 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 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 Risk-free interest 1.44 % Expected life (years) 6.2 Expected dividend yield 0 % Volatility 52.0 % Weighted-average Black-Scholes fair value per share at date of grant $ 13.74 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 (“PSUs”) (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 30, 2017 94 $ 27.11 86 $ 27.63 Units granted 63 43.88 73 46.23 Units vested (31 ) 27.12 (14 ) 26.25 Units canceled (23 ) 32.56 (15 ) 31.65 Outstanding - December 29, 2018 103 $ 36.18 130 $ 40.46 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 2018 vest over a three year service period. As of December 29, 2018 , total unrecognized compensation expense related to unvested restricted stock units was $2.6 million which is expected to be recognized over a weighted-average period of 1.7 years . During fiscal year 2018, there was a modification to certain awards resulting in additional compensation expense of $0.9 million over the remaining term of the awards. The Company granted 73,023 PSUs during fiscal year 2018 that are based on the outcome of certain performance criteria. Of the total PSUs granted, 57,733 are subject to a service condition and a performance vesting condition based on the achievement of certain Adjusted EBITDA targets, as defined by the 2015 Plan, over a performance period of one to three years. The amount of such units that can be earned ranges from 0% to 100% . The compensation expense related to these PSUs is recognized over the vesting period when the achievement of the performance conditions becomes probable. The total compensation cost for the PSUs is determined based on the most likely outcome of the performance condition and the number of awards expected to vest. The remaining 15,290 PSUs granted are subject to a service condition and a performance vesting condition based on the level of new sales growth achieved over the performance period. The maximum vesting percentage that could be realized for each of these PSUs is 500% , based on the level of performance achieved for the respective awards, as well as a market vesting condition linked to the level of total stockholder return received by the Company ’ s stockholders during the performance period measured against the companies in the S&P 600 Restaurant Index (“TSR PSUs”). The TSR PSUs were valued based on a Monte Carlo simulation model to reflect the impact of the total stockholder return market condition, resulting in a grant-date fair value range of $0.00 to $179.27 per unit based on the outcome of the performance condition. The probability of satisfying a market condition is considered in the estimation of the grant-date fair value for TSR PSUs and the compensation cost is not reversed if the market condition is not achieved, provided the requisite service has been provided. As of December 29, 2018 , total unrecognized compensation expense related to unvested performance stock units was $3.4 million , which is expected to be recognized over a weighted-average period of 1.6 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 30, 2017 15 $ 27.89 Awards granted 6 49.00 Awards vested (5 ) 27.52 Awards canceled — — Outstanding - December 29, 2018 16 $ 36.02 The fair value of the non-vested restricted stock awards is based on the closing price on the date of grant. As of December 29, 2018 , total unrecognized compensation expense related to unvested restricted stock awards was $0.4 million , which will be recognized over a weighted average period of approximately 1.7 years . |
Restaurant Acquisition (Notes)
Restaurant Acquisition (Notes) | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Restaurant Acquisition On February 19, 2018 , April 16, 2018 , and May 1, 2018 , the Company acquired one existing Wingstop restaurant each from three separate franchisees. The total purchase prices were $1.9 million , $1.9 million , and $2.2 million , respectively, which were funded by cash flows from operations. 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): Purchase Price Allocation February 19, 2018 April 16, 2018 May 1, 2018 Acquisition Acquisition Acquisition Working capital $ 4 $ 20 $ 7 Property and equipment 26 160 28 Reacquired franchise rights 541 1,277 887 Goodwill 1,331 458 1,309 Gift card liability (2 ) — — Total purchase price $ 1,900 $ 1,915 $ 2,231 During the fourth quarter of 2018, the Company acquired three existing Wingstop restaurants from a franchisee for a total purchase price of $0.5 million . The purchase price was allocated to property and equipment. On July 16, 2017 , the Company acquired two existing Wingstop restaurants from a franchisee for a total purchase price of $3.9 million which was funded by cash flows from operations and proceeds from our revolving credit facility. 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): Purchase Price Allocation July 16, 2017 Acquisition Working capital $ 16 Property and equipment 183 Reacquired franchise rights 2,323 Goodwill 1,429 Gift card liability (2 ) Total purchase price $ 3,949 The results of operations of these locations are included in our Consolidated Statements of Operations since the date of acquisition. The acquisitions were accounted for as business combinations. 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. All of the goodwill from the acquisitions 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers Revenue from contracts with customers consist primarily of royalties, advertising fund contributions, initial and renewal franchise fees and upfront fees from development agreements and international territory agreements. Our performance obligations under franchise agreements consist of (a) a franchise license, (b) pre-opening services, such as training, and (c) ongoing services, such as management of the Ad Fund, development of training materials and menu items and restaurant monitoring. These performance obligations are highly interrelated so are not considered to be individually distinct and therefore are accounted for as a single performance obligation, which is satisfied by providing a right to use intellectual property over the term of each franchise agreement. Royalties, including franchisee contributions to the advertising fund, are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Initial and renewal franchise fees are payable by the franchisee prior to the restaurant opening or at the time of a renewal of an existing franchise agreement. Our franchise agreement royalties, inclusive of advertising fund contributions, represent sales-based royalties that are related entirely to our performance obligation under the franchise agreement and are recognized as franchised restaurant sales occur. Additionally, under ASC 606, initial and renewal franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement. Our performance obligation under development agreements and international territory agreements generally consists of an obligation to grant exclusive development rights over a stated term. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for development rights are apportioned to each franchised restaurant opened and accounted for as an initial franchise fee. The following table represents a disaggregation of revenue from contracts with customers for the fiscal years 2018 , 2017 , and 2016 (in thousands): Fiscal Year December 29, December 30, December 31, Royalty revenue 61,882 53,204 46,779 Advertising fees and related income 34,484 30,174 14,561 Franchise fees 2,924 2,535 2,198 Franchise fee, development fee, and international territory fee payments received by the Company are recorded as deferred revenue on the Consolidated Balance Sheet, which represents a contract liability. Deferred revenue is reduced as fees are recognized in revenue over the term of the franchise license for the respective restaurant. As the term of the franchise license is typically ten years, substantially all of the franchise fee revenue recognized in the current fiscal year was included in the deferred revenue balance as of December 30, 2017 . Approximately $9.2 million and $10.1 million of deferred revenue as of December 29, 2018 and December 30, 2017 , respectively, relates to restaurants that have not yet opened, so the fees are not yet being amortized. The weighted average remaining amortization period for deferred franchise and renewal fees related to open restaurants is 7.5 years . The Company does not have any material contract assets as of December 29, 2018 . |
Business Segments
Business Segments | 12 Months Ended |
Dec. 29, 2018 | |
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 29, December 30, December 31, Revenue: Franchise segment $ 106,342 $ 96,250 $ 69,036 Company segment 46,839 37,069 34,288 Total segment revenue $ 153,181 $ 133,319 $ 103,324 Segment Profit: Franchise segment $ 30,645 $ 29,230 $ 23,254 Company segment 10,303 4,643 5,526 Total segment profit 40,948 33,873 28,780 Corporate and other (1) 2,421 — 2,173 Interest expense, net 10,123 5,131 4,396 Other (income) expense, net 1,477 — 254 Income before taxes $ 26,927 $ 28,742 $ 21,957 Depreciation and amortization: Franchise segment $ 3,036 $ 2,220 $ 2,092 Company segment 1,277 1,156 916 Total depreciation and amortization 4,313 3,376 3,008 Capital expenditures: Franchise segment $ 2,930 $ 864 $ 387 Company segment (2) 1,052 1,671 1,669 Total capital expenditures $ 3,982 $ 2,535 $ 2,056 (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. (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 29, 2018 December 30, 2017 Segment assets: Franchise segment $ 97,455 $ 98,069 Company segment 19,841 14,166 Total segment assets 117,296 112,235 Corporate and other (3) 22,453 7,601 Total assets $ 139,749 $ 119,836 (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. As of December 29, 2018 December 30, 2017 Segment goodwill: Franchise segment $ 39,930 $ 39,930 Company segment 9,725 6,627 Total goodwill $ 49,655 $ 46,557 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 and 2017 (in thousands, except per share data): Quarter Ended December 29, 2018 September 29, 2018 June 30, 2018 March 31, 2018 December 30, 2017 September 30, 2017 July 1, 2017 April 1, 2017 Total revenue $ 40,509 $ 38,246 $ 37,037 $ 37,389 $ 35,208 $ 33,123 $ 31,578 $ 33,410 Operating income 8,679 10,356 9,926 9,566 8,466 8,696 8,186 8,525 Net income 2,419 6,293 6,839 6,168 8,072 4,704 4,907 6,257 Earnings per share Basic $ 0.08 $ 0.21 $ 0.23 $ 0.21 $ 0.28 $ 0.16 $ 0.17 $ 0.22 Diluted $ 0.08 $ 0.21 $ 0.23 $ 0.21 $ 0.27 $ 0.16 $ 0.17 $ 0.21 Weighted average shares outstanding Basic 29,296 29,284 29,230 29,116 29,094 29,081 29,032 28,895 Diluted 29,620 29,584 29,528 29,503 29,459 29,384 29,394 29,336 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 and 2017 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, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 29, 2018 and December 30, 2017 , we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents. In accordance with the Company’s securitized financing facility, certain cash accounts have been established in the name of Citibank, N.A. (the “Trustee”) for the benefit of the Trustee and the noteholders, and are restricted in their use. The Company holds restricted cash which primarily represents (i) cash collections held by the Trustee and (ii) interest, principal, and commitment fee reserves held by the Trustee related to the Company’s Notes (see Note 10). Pursuant to new accounting guidance adopted in fiscal year 2018 (see Note 1(r)), restricted cash is combined with cash and cash equivalents when reconciling the beginning and end of period balances in the consolidated statements of cash flows. Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of December 29, 2018 and December 30, 2017 were as follows (in thousands): December 29, 2018 December 30, 2017 Cash and cash equivalents $ 12,493 $ 4,063 Restricted cash 4,462 — Restricted cash, included in Advertising fund assets, restricted 3,985 2,329 Total cash, cash equivalents, and restricted cash $ 20,940 $ 6,392 |
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 Computer software 3 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 2018 , 2017 or 2016 . 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 primarily of royalties, national advertising fund contributions, initial and renewal franchise fees, and upfront fees from development agreements and international territory agreements. These performance obligations under franchise agreements consist of (a) a franchise license, (b) pre-opening services, such as training, and (c) ongoing services, such as management of the national advertising fund contributions, development of training materials and menu items, and restaurant monitoring. These performance obligations are highly interrelated, so they are not considered to be individually distinct and therefore are accounted for as a single performance obligation, which is satisfied by providing a right to use our intellectual property over the term of each franchise agreement. Franchise fee, development fee and international territory fee payments received by the Company 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 $8.2 million , $11.2 million , and $6.5 million , during fiscal years 2018 , 2017 , and 2016 , respectively, of which $1.2 million , $0.9 million , and $1.0 million was classified as a reduction in Cost of sales during fiscal years 2018 , 2017 , and 2016 , respectively. |
Advertising Expenses | Advertising Expenses The Company administers the Wingstop Restaurants Advertising Fund (“Ad Fund”), for which a percentage of gross sales is collected from Wingstop restaurant franchisees and company-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 Ad Fund contribution collected from Wingstop restaurant franchisees and company-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. The Company administers and directs the development of all advertising and promotion programs in the Ad Fund for which it collects advertising contributions, in accordance with the provisions of its franchise agreements. The Company has a contractual obligation with regard to these advertising contributions. The Company consolidates and reports all assets and liabilities of the Ad Fund as restricted assets of the Ad Fund and restricted liabilities of the Ad Fund within current assets and current liabilities, respectively, in the Consolidated Balance Sheets. The assets and liabilities of the Ad Fund consist primarily of cash, receivables, accrued expenses, other liabilities, and any cumulative surplus related to the Ad Fund. Pursuant to the Company’s franchise agreements, use of Ad Fund contributions is 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 that are directly associated with administering the Ad Fund, as outlined in the provisions of the applicable franchise agreements. Ad Fund contributions and expenditures are reported on a gross basis in the Consolidated Statements of Operations, which are largely offsetting and therefore do not impact our reported net income. Advertising expenses incurred by company-owned restaurants are included within Cost of sales in the Consolidated Statements of Operations. Administrative support services and compensation expenses of employees that provide services directly to the Ad Fund, are included in Selling, general and administrative expenses (“SG&A”) in the Consolidated Statements of Operations. Company operated restaurants incurred advertising expenses of $1.9 million in fiscal years 2018 , and $1.5 million in fiscal years 2017 and 2016 , which are included in cost of sales in the Consolidated Statements of Operations and include the company-operated restaurants’ Ad Fund contributions that are equal to 3% of gross sales for fiscal years 2018 and 2017 and 2% for fiscal year 2016. |
Leases | Leases The Company 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, the Company 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 the Company’s option, the Company 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 the Company 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, the Company 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. The Company accounts for forfeitures as they occur. |
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 29, 2018 , the franchise operations segment consisted of 1,223 restaurants operated by Wingstop franchisees in the United States and nine countries outside of the United States as compared to 1,110 franchised restaurants in operation as of December 30, 2017 . Franchise operations revenue consists primarily of franchise royalty revenue, Ad Fund contributions, fees for the sale of franchise and development agreements, and international territory agreements. 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 29, 2018 , the Company segment consisted of 29 company-owned restaurants, located in the United States, as compared to 23 company-owned restaurants as of December 30, 2017 . Company-owned 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 transaction costs associated with debt refinancings and special dividends. The Company allocates selling, general and administrative expenses based on the relative support provided to each reportable segment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”). 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 fiscal year 2019, with early adoption permitted, and a modified retrospective transition approach required for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company will adopt this new guidance using the modified retrospective transition approach through a cumulative-effect adjustment at the beginning of the first quarter of 2019. The Company will elect the package of practical expedients, as well as the hindsight practical expedient, permitted under the new guidance, which includes allowing the Company to continue utilizing historical classification of leases. In preparation for the adoption, the Company is implementing new accounting systems, business processes and internal controls to assist in the application of the new guidance. The adoption of the standard will result in the recognition of right-of-use assets and lease liabilities for operating leases which will result in additional assets and corresponding liabilities of approximately $9 million to $11 million on the consolidated balance sheets, with no material impact to its consolidated statements of income, stockholders’ equity, or cash flows. Our assessment is ongoing and subject to finalization such that the actual impact may differ from the estimated range. Recently adopted In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740) (“ASU 2018-05”) . ASU 2018-05 provides guidance on accounting for the income tax effects of the Tax Cuts and Jobs Act of 2017 (the “Act”), which impacts U.S. corporate tax rates, business-related exclusions, and deductions and credits. The Act also has tax consequences for many companies that operate internationally. The Company recognized the income tax effects of the Act in its 2017 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of Accounting Standards Codification (“ASC”) Topic 740, "Income Taxes," in the reporting period in which the Act was signed into law. The Company completed its analysis during the fourth quarter of 2018 and all adjustments are reflected within the financial statements presented. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which superseded nearly all existing revenue recognition guidance. The new guidance provided 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 Company adopted this new guidance effective the first day of fiscal year 2018, using the full retrospective transition method, which resulted in adjusting each prior reporting period presented and a cumulative effect adjustment of $5.1 million, which was recorded as of the first day of 2016. The adoption changed the timing of recognition of initial franchise fees, development fees, territory fees for our international business and renewal and transfer fees, as well as the reporting of Ad Fund contributions and related expenditures. See the tables below as well as Note 15 to our consolidated financial statements, Revenue from Contracts with Customers , for further discussion. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires that restricted cash and cash equivalents be included as components of total cash and cash equivalents as presented on the statement of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and a retrospective transition method is required. The Company adopted this new guidance effective the first day of fiscal year 2018, using the full retrospective transition method, which resulted in adjusting the Statement of Cash Flows for each prior period presented. The following table presents the effect of the adoption of ASU 2014-09 on our consolidated balance sheets as of December 30, 2017 (in thousands): As reported Adjustments for adoption of ASU 2014-09 As adjusted Assets Current assets Cash and cash equivalents $ 4,063 $ — $ 4,063 Accounts receivable, net 4,567 — 4,567 Prepaid expenses and other current assets 4,334 — 4,334 Advertising fund assets, restricted 2,944 — 2,944 Total current assets 15,908 — 15,908 Property and equipment, net 5,826 — 5,826 Goodwill 46,557 — 46,557 Trademarks 32,700 — 32,700 Customer relationships, net 15,567 — 15,567 Other non-current assets 3,278 — 3,278 Total assets $ 119,836 $ — $ 119,836 Liabilities and stockholders' deficit Current liabilities Accounts payable $ 1,752 $ — $ 1,752 Other current liabilities 10,683 246 10,929 Current portion of debt 3,500 — 3,500 Advertising fund liabilities 2,944 — 2,944 Total current liabilities 18,879 246 19,125 Long-term debt, net 129,841 — 129,841 Deferred revenues, net of current 8,427 12,799 21,226 Deferred income tax liabilities, net 8,799 (2,879 ) 5,920 Other non-current liabilities 2,142 — 2,142 Total liabilities 168,088 10,166 178,254 Commitments and contingencies Stockholders' deficit Common stock 291 — 291 Additional paid-in-capital 262 — 262 Accumulated deficit (48,805 ) (10,166 ) (58,971 ) Total stockholders' deficit (48,252 ) (10,166 ) (58,418 ) Total liabilities and stockholders' deficit $ 119,836 $ — $ 119,836 The following table presents the effect of the adoption of ASU 2014-09 on our consolidated statements of operations for the fiscal year ended December 30, 2017 (in thousands, except per share amounts): Adjustments for adoption of ASU 2014-09 As reported Franchise Fees Advertising As adjusted Revenue: Royalty revenue, franchise fees and other $ 68,483 $ (2,407 ) $ — $ 66,076 Advertising fees and related income — — 30,174 30,174 Company-owned restaurant sales 37,069 — — 37,069 Total revenue 105,552 (2,407 ) 30,174 133,319 Costs and expenses: Cost of sales (1) 28,745 — — 28,745 Advertising expenses — — 32,427 32,427 Selling, general and administrative 37,151 — (2,253 ) 34,898 Depreciation and amortization 3,376 — — 3,376 Total costs and expenses 69,272 — 30,174 99,446 Operating income 36,280 (2,407 ) — 33,873 Interest expense, net 5,131 — — 5,131 Income before income tax expense 31,149 (2,407 ) — 28,742 Income tax expense 3,845 957 — 4,802 Net income $ 27,304 $ (3,364 ) $ — $ 23,940 Earnings per share Basic $ 0.94 $ (0.12 ) $ — $ 0.82 Diluted $ 0.93 $ (0.11 ) $ — $ 0.82 (1) Cost of sales excludes depreciation and amortization, which are presented separately, and includes advertising expenses incurred at company-owned restaurants. The following table presents the effect of the adoption of ASU 2014-09 on our consolidated statements of operations for the fiscal year ended December 31, 2016 (in thousands, except per share amounts): Adjustments for adoption of ASU 2014-09 As reported Franchise Fees Advertising As adjusted Revenue: Royalty revenue, franchise fees and other $ 57,071 $ (2,596 ) $ — $ 54,475 Advertising fees and related income — — 14,561 14,561 Company-owned restaurant sales 34,288 — — 34,288 Total revenue 91,359 (2,596 ) 14,561 103,324 Costs and expenses: Cost of sales (1) 25,308 — — 25,308 Advertising expenses — — 13,849 13,849 Selling, general and administrative 33,840 — 712 34,552 Depreciation and amortization 3,008 — — 3,008 Total costs and expenses 62,156 — 14,561 76,717 Operating income 29,203 (2,596 ) — 26,607 Interest expense, net 4,396 — — 4,396 Other expense, net 254 — — 254 Income before income tax expense 24,553 (2,596 ) — 21,957 Income tax expense 9,119 (931 ) — 8,188 Net income $ 15,434 $ (1,665 ) $ — $ 13,769 Earnings per share Basic $ 0.54 $ (0.06 ) $ — $ 0.48 Diluted $ 0.53 $ (0.06 ) $ — $ 0.47 (1) Cost of sales excludes depreciation and amortization, which are presented separately, and includes advertising expenses incurred at company-owned restaurants. The following table presents the effect of the adoption of ASU 2014-09 and ASU 2016-18 on our consolidated statements of cash flows for the fiscal year ended December 30, 2017 (in thousands): As reported Adjustments for adoption of ASU 2014-09 Adjustments for adoption of ASU 2016-18 As adjusted Operating activities Net income $ 27,304 $ (3,364 ) $ — $ 23,940 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 3,376 — — 3,376 Deferred income taxes (3,505 ) 957 — (2,548 ) Stock-based compensation expense 1,851 — — 1,851 Amortization of debt issuance costs 292 — — 292 Changes in operating assets and liabilities: Accounts receivable (1,368 ) — — (1,368 ) Prepaid expenses and other assets (503 ) — — (503 ) Advertising fund assets and liabilities, net — — 386 386 Accounts payable and other current liabilities (876 ) — — (876 ) Deferred revenue 645 2,407 — 3,052 Other non-current liabilities (167 ) — — (167 ) Cash provided by operating activities 27,049 — 386 27,435 Investing activities Purchases of property and equipment (2,535 ) — — (2,535 ) Acquisition of restaurant from franchisee (3,949 ) — — (3,949 ) Cash used in investing activities (6,484 ) — — (6,484 ) Financing activities Proceeds from exercise of stock options 1,318 — — 1,318 Borrowings of long-term debt 3,500 — — 3,500 Repayments of long-term debt (21,000 ) — — (21,000 ) Dividends paid (4,070 ) — — (4,070 ) Cash used in financing activities (20,252 ) — — (20,252 ) Net change in cash, cash equivalents, and restricted cash 313 — 386 699 Cash, cash equivalents, and restricted cash at beginning of period 3,750 — 1,943 5,693 Cash, cash equivalents, and restricted cash at end of period $ 4,063 $ — $ 2,329 $ 6,392 The following table presents the effect of the adoption of ASU 2014-09 and ASU 2016-18 on our consolidated statements of cash flows for the fiscal year ended December 31, 2016 (in thousands): As reported Adjustments for adoption of ASU 2014-09 Adjustments for adoption of ASU 2016-18 As adjusted Operating activities Net income $ 15,434 $ (1,665 ) $ — $ 13,769 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 3,008 — — 3,008 Deferred income taxes (714 ) (931 ) — (1,645 ) Stock-based compensation expense 1,231 — — 1,231 Amortization of debt issuance costs 437 — — 437 Changes in operating assets and liabilities: Accounts receivable 205 — — 205 Prepaid expenses and other assets (171 ) — — (171 ) Advertising fund assets and liabilities, net — — (1,450 ) (1,450 ) Accounts payable and other current liabilities 3,648 — — 3,648 Deferred revenue 48 2,596 — 2,644 Other non-current liabilities 203 — — 203 Cash provided by operating activities 23,329 — (1,450 ) 21,879 Investing activities Purchases of property and equipment (2,056 ) — — (2,056 ) Cash used in investing activities (2,056 ) — — (2,056 ) Financing activities Proceeds from exercise of stock options 485 — — 485 Borrowings of long-term debt 165,000 — — 165,000 Repayments of long-term debt (109,250 ) — — (109,250 ) Payment of deferred financing costs (1,180 ) — — (1,180 ) Dividends paid (83,268 ) — — (83,268 ) Cash used in financing activities (28,213 ) — — (28,213 ) Net change in cash, cash equivalents, and restricted cash (6,940 ) — (1,450 ) (8,390 ) Cash, cash equivalents, and restricted cash at beginning of period 10,690 — 3,393 14,083 Cash, cash equivalents, and restricted cash at end of period $ 3,750 $ — $ 1,943 $ 5,693 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of December 29, 2018 and December 30, 2017 were as follows (in thousands): December 29, 2018 December 30, 2017 Cash and cash equivalents $ 12,493 $ 4,063 Restricted cash 4,462 — Restricted cash, included in Advertising fund assets, restricted 3,985 2,329 Total cash, cash equivalents, and restricted cash $ 20,940 $ 6,392 |
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 Computer software 3 years Property and equipment, net consisted of the following (in thousands): December 29, December 30, Equipment, furniture and fixtures $ 11,192 $ 9,298 Leasehold improvements 7,929 7,005 Construction in progress 1,962 183 Property and equipment, gross 21,083 16,486 Less: accumulated depreciation (12,745 ) (10,660 ) Property and equipment, net $ 8,338 $ 5,826 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table presents the effect of the adoption of ASU 2014-09 on our consolidated balance sheets as of December 30, 2017 (in thousands): As reported Adjustments for adoption of ASU 2014-09 As adjusted Assets Current assets Cash and cash equivalents $ 4,063 $ — $ 4,063 Accounts receivable, net 4,567 — 4,567 Prepaid expenses and other current assets 4,334 — 4,334 Advertising fund assets, restricted 2,944 — 2,944 Total current assets 15,908 — 15,908 Property and equipment, net 5,826 — 5,826 Goodwill 46,557 — 46,557 Trademarks 32,700 — 32,700 Customer relationships, net 15,567 — 15,567 Other non-current assets 3,278 — 3,278 Total assets $ 119,836 $ — $ 119,836 Liabilities and stockholders' deficit Current liabilities Accounts payable $ 1,752 $ — $ 1,752 Other current liabilities 10,683 246 10,929 Current portion of debt 3,500 — 3,500 Advertising fund liabilities 2,944 — 2,944 Total current liabilities 18,879 246 19,125 Long-term debt, net 129,841 — 129,841 Deferred revenues, net of current 8,427 12,799 21,226 Deferred income tax liabilities, net 8,799 (2,879 ) 5,920 Other non-current liabilities 2,142 — 2,142 Total liabilities 168,088 10,166 178,254 Commitments and contingencies Stockholders' deficit Common stock 291 — 291 Additional paid-in-capital 262 — 262 Accumulated deficit (48,805 ) (10,166 ) (58,971 ) Total stockholders' deficit (48,252 ) (10,166 ) (58,418 ) Total liabilities and stockholders' deficit $ 119,836 $ — $ 119,836 The following table presents the effect of the adoption of ASU 2014-09 on our consolidated statements of operations for the fiscal year ended December 30, 2017 (in thousands, except per share amounts): Adjustments for adoption of ASU 2014-09 As reported Franchise Fees Advertising As adjusted Revenue: Royalty revenue, franchise fees and other $ 68,483 $ (2,407 ) $ — $ 66,076 Advertising fees and related income — — 30,174 30,174 Company-owned restaurant sales 37,069 — — 37,069 Total revenue 105,552 (2,407 ) 30,174 133,319 Costs and expenses: Cost of sales (1) 28,745 — — 28,745 Advertising expenses — — 32,427 32,427 Selling, general and administrative 37,151 — (2,253 ) 34,898 Depreciation and amortization 3,376 — — 3,376 Total costs and expenses 69,272 — 30,174 99,446 Operating income 36,280 (2,407 ) — 33,873 Interest expense, net 5,131 — — 5,131 Income before income tax expense 31,149 (2,407 ) — 28,742 Income tax expense 3,845 957 — 4,802 Net income $ 27,304 $ (3,364 ) $ — $ 23,940 Earnings per share Basic $ 0.94 $ (0.12 ) $ — $ 0.82 Diluted $ 0.93 $ (0.11 ) $ — $ 0.82 (1) Cost of sales excludes depreciation and amortization, which are presented separately, and includes advertising expenses incurred at company-owned restaurants. The following table presents the effect of the adoption of ASU 2014-09 on our consolidated statements of operations for the fiscal year ended December 31, 2016 (in thousands, except per share amounts): Adjustments for adoption of ASU 2014-09 As reported Franchise Fees Advertising As adjusted Revenue: Royalty revenue, franchise fees and other $ 57,071 $ (2,596 ) $ — $ 54,475 Advertising fees and related income — — 14,561 14,561 Company-owned restaurant sales 34,288 — — 34,288 Total revenue 91,359 (2,596 ) 14,561 103,324 Costs and expenses: Cost of sales (1) 25,308 — — 25,308 Advertising expenses — — 13,849 13,849 Selling, general and administrative 33,840 — 712 34,552 Depreciation and amortization 3,008 — — 3,008 Total costs and expenses 62,156 — 14,561 76,717 Operating income 29,203 (2,596 ) — 26,607 Interest expense, net 4,396 — — 4,396 Other expense, net 254 — — 254 Income before income tax expense 24,553 (2,596 ) — 21,957 Income tax expense 9,119 (931 ) — 8,188 Net income $ 15,434 $ (1,665 ) $ — $ 13,769 Earnings per share Basic $ 0.54 $ (0.06 ) $ — $ 0.48 Diluted $ 0.53 $ (0.06 ) $ — $ 0.47 (1) Cost of sales excludes depreciation and amortization, which are presented separately, and includes advertising expenses incurred at company-owned restaurants. The following table presents the effect of the adoption of ASU 2014-09 and ASU 2016-18 on our consolidated statements of cash flows for the fiscal year ended December 30, 2017 (in thousands): As reported Adjustments for adoption of ASU 2014-09 Adjustments for adoption of ASU 2016-18 As adjusted Operating activities Net income $ 27,304 $ (3,364 ) $ — $ 23,940 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 3,376 — — 3,376 Deferred income taxes (3,505 ) 957 — (2,548 ) Stock-based compensation expense 1,851 — — 1,851 Amortization of debt issuance costs 292 — — 292 Changes in operating assets and liabilities: Accounts receivable (1,368 ) — — (1,368 ) Prepaid expenses and other assets (503 ) — — (503 ) Advertising fund assets and liabilities, net — — 386 386 Accounts payable and other current liabilities (876 ) — — (876 ) Deferred revenue 645 2,407 — 3,052 Other non-current liabilities (167 ) — — (167 ) Cash provided by operating activities 27,049 — 386 27,435 Investing activities Purchases of property and equipment (2,535 ) — — (2,535 ) Acquisition of restaurant from franchisee (3,949 ) — — (3,949 ) Cash used in investing activities (6,484 ) — — (6,484 ) Financing activities Proceeds from exercise of stock options 1,318 — — 1,318 Borrowings of long-term debt 3,500 — — 3,500 Repayments of long-term debt (21,000 ) — — (21,000 ) Dividends paid (4,070 ) — — (4,070 ) Cash used in financing activities (20,252 ) — — (20,252 ) Net change in cash, cash equivalents, and restricted cash 313 — 386 699 Cash, cash equivalents, and restricted cash at beginning of period 3,750 — 1,943 5,693 Cash, cash equivalents, and restricted cash at end of period $ 4,063 $ — $ 2,329 $ 6,392 The following table presents the effect of the adoption of ASU 2014-09 and ASU 2016-18 on our consolidated statements of cash flows for the fiscal year ended December 31, 2016 (in thousands): As reported Adjustments for adoption of ASU 2014-09 Adjustments for adoption of ASU 2016-18 As adjusted Operating activities Net income $ 15,434 $ (1,665 ) $ — $ 13,769 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 3,008 — — 3,008 Deferred income taxes (714 ) (931 ) — (1,645 ) Stock-based compensation expense 1,231 — — 1,231 Amortization of debt issuance costs 437 — — 437 Changes in operating assets and liabilities: Accounts receivable 205 — — 205 Prepaid expenses and other assets (171 ) — — (171 ) Advertising fund assets and liabilities, net — — (1,450 ) (1,450 ) Accounts payable and other current liabilities 3,648 — — 3,648 Deferred revenue 48 2,596 — 2,644 Other non-current liabilities 203 — — 203 Cash provided by operating activities 23,329 — (1,450 ) 21,879 Investing activities Purchases of property and equipment (2,056 ) — — (2,056 ) Cash used in investing activities (2,056 ) — — (2,056 ) Financing activities Proceeds from exercise of stock options 485 — — 485 Borrowings of long-term debt 165,000 — — 165,000 Repayments of long-term debt (109,250 ) — — (109,250 ) Payment of deferred financing costs (1,180 ) — — (1,180 ) Dividends paid (83,268 ) — — (83,268 ) Cash used in financing activities (28,213 ) — — (28,213 ) Net change in cash, cash equivalents, and restricted cash (6,940 ) — (1,450 ) (8,390 ) Cash, cash equivalents, and restricted cash at beginning of period 10,690 — 3,393 14,083 Cash, cash equivalents, and restricted cash at end of period $ 3,750 $ — $ 1,943 $ 5,693 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, December 30, December 31, Basic weighted average shares outstanding 29,231 29,025 28,637 Dilutive shares 356 399 346 Diluted weighted average shares outstanding 29,587 29,424 28,983 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018 December 30, 2017 Carrying Value Fair Value Carrying Value Fair Value Securitized Financing Facility: 2018-1 Class A-2 Senior Secured Notes (1) Level 2 $ 320,000 $ 320,000 $ — $ — Senior Secured Credit Facility: Term loan facility (1) Level 2 $ — $ — $ 64,750 $ 64,750 Revolving credit facility (1) Level 2 $ — $ — $ 69,000 $ 69,000 (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. 29, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, net | Accounts receivables, net, consist of the following (in thousands): December 29, December 30, Vendor rebates receivable $ 2,224 $ 2,145 Royalties receivable, net 1,521 987 Gift card receivable 1,484 1,184 Other receivables 535 251 Accounts receivable, net $ 5,764 $ 4,567 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 Computer software 3 years Property and equipment, net consisted of the following (in thousands): December 29, December 30, Equipment, furniture and fixtures $ 11,192 $ 9,298 Leasehold improvements 7,929 7,005 Construction in progress 1,962 183 Property and equipment, gross 21,083 16,486 Less: accumulated depreciation (12,745 ) (10,660 ) Property and equipment, net $ 8,338 $ 5,826 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a summary of goodwill balances and activity (in thousands): December 29, December 30, Balance, beginning of period $ 46,557 $ 45,128 Acquisition of restaurants 3,098 1,429 Balance, end of period $ 49,655 $ 46,557 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, excluding goodwill, consisted of the following (in thousands): December 29, December 30, 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) 5,028 2,323 5.4 Proprietary software (1) 115 115 5.0 Noncompete agreements (1) 250 250 2.8 Less: accumulated amortization (13,453 ) (11,249 ) Definite-lived assets 18,240 17,739 17.5 Intangible assets, net $ 50,940 $ 50,439 |
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 2019 $ 2,378 Fiscal year 2020 2,117 Fiscal year 2021 1,957 Fiscal year 2022 1,800 Fiscal year 2023 1,692 Thereafter 8,296 Total $ 18,240 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, December 30, Prepaid expenses $ 1,468 $ 946 Federal income tax receivable — 2,500 Prepaid gift card expenses 289 672 Inventories 299 216 Total $ 2,056 $ 4,334 |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following (in thousands): December 29, December 30, Accrued payroll and bonuses $ 5,183 $ 4,192 Current portion of deferred revenues 2,343 2,041 Gift card liability 2,782 2,074 Taxes payable 398 163 Other accrued liabilities 5,495 2,459 Total $ 16,201 $ 10,929 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) for the fiscal years 2018 , 2017 and 2016 consists of the following (in thousands): Fiscal Year December 29, December 30, December 31, Current expense Federal $ 4,932 $ 6,204 $ 8,854 State 1,089 800 847 Foreign 241 346 132 Deferred expense (benefit) Federal (946 ) (2,660 ) (1,571 ) State (108 ) 112 (74 ) Income tax expense $ 5,208 $ 4,802 $ 8,188 |
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 21% and 35% as appropriate) to income tax expense for fiscal years 2018 , 2017 and 2016 in dollars is as follows (in thousands): Fiscal Year December 29, December 30, December 31, Expected income tax expense at statutory rate $ 5,655 $ 10,060 $ 7,685 Tax Act impact on deferred taxes — (3,647 ) — Permanent differences (1,462 ) (2,300 ) 92 State tax expense, net of federal benefit 520 589 373 Foreign tax expense 241 347 132 Foreign tax credits (241 ) (347 ) (132 ) Increase in unrecognized tax benefit 322 114 185 Valuation allowance — — — Other 173 (14 ) (147 ) Income tax expense $ 5,208 $ 4,802 $ 8,188 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets (liabilities) are as follows (in thousands): December 29, 2018 December 30, 2017 Deferred tax assets: Deferred revenue $ 4,470 $ 4,282 Accrued bonus 276 53 Stock based compensation 735 607 Deferred rent 257 270 Intangible assets 118 191 Other 405 157 Net operating loss carryforwards and credits 571 443 Valuation allowance (482 ) (482 ) 6,350 5,521 Deferred tax liabilities: Intangible assets (10,933 ) (11,302 ) Property and equipment (283 ) (139 ) (11,216 ) (11,441 ) Net deferred tax liability $ (4,866 ) $ (5,920 ) |
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 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 Additions for tax positions of prior years 78 Subtractions for tax positions of prior years — Additions for tax positions of current year 155 Subtractions for tax positions of current year — Balance as of December 29, 2018 $ 913 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following components (in thousands): December 29, 2018 December 30, 2017 Term loan $ — $ 64,750 Revolving credit facility — 69,000 2018-1 Class A-2 Senior Secured Notes 320,000 — Debt issuance costs, net of amortization (8,226 ) (409 ) Less: current portion of debt (2,400 ) (3,500 ) Long-term debt, net $ 309,374 $ 129,841 |
Schedule of Maturities of Long-term Debt | As of December 29, 2018 , the scheduled principle payments on debt were as follows (in thousands): Fiscal year 2019 $ 2,400 Fiscal year 2020 3,200 Fiscal year 2021 3,200 Fiscal year 2022 3,200 Fiscal year 2023 308,000 Total $ 320,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018 , is as follows (in thousands): Fiscal year 2019 $ 2,181 Fiscal year 2020 2,214 Fiscal year 2021 2,005 Fiscal year 2022 1,800 Fiscal year 2023 1,523 Thereafter 2,145 Total $ 11,868 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 30, 2017 420 5.45 $ 14,068 5.7 Options granted 2 44.03 Options exercised (158 ) 3.29 Options canceled (28 ) 7.53 Outstanding - December 29, 2018 236 $ 6.04 $ 13,848 4.8 |
Schedule of Nonvested Share Activity | A summary of the status of non-vested options as of December 29, 2018 and the changes during the period then ended is presented below (in thousands, except per share data): Stock Options Weighted average grant-date fair value Non-vested options - December 30, 2017 171 $ 9.54 Granted 2 $ 44.03 Vested (86 ) $ 6.76 Forfeited (28 ) $ 7.53 Non-vested options - December 29, 2018 59 $ 12.82 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 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 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 Risk-free interest 1.44 % Expected life (years) 6.2 Expected dividend yield 0 % Volatility 52.0 % Weighted-average Black-Scholes fair value per share at date of grant $ 13.74 |
Schedule of Unvested Restricted Stock Units Roll Forward | The following table summarizes activity related to restricted stock units and performance stock units (“PSUs”) (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 30, 2017 94 $ 27.11 86 $ 27.63 Units granted 63 43.88 73 46.23 Units vested (31 ) 27.12 (14 ) 26.25 Units canceled (23 ) 32.56 (15 ) 31.65 Outstanding - December 29, 2018 103 $ 36.18 130 $ 40.46 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | 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 30, 2017 15 $ 27.89 Awards granted 6 49.00 Awards vested (5 ) 27.52 Awards canceled — — Outstanding - December 29, 2018 16 $ 36.02 |
Restaurant Acquisition (Tables)
Restaurant Acquisition (Tables) | 12 Months Ended | |
Dec. 29, 2018 | 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): Purchase Price Allocation February 19, 2018 April 16, 2018 May 1, 2018 Acquisition Acquisition Acquisition Working capital $ 4 $ 20 $ 7 Property and equipment 26 160 28 Reacquired franchise rights 541 1,277 887 Goodwill 1,331 458 1,309 Gift card liability (2 ) — — Total purchase price $ 1,900 $ 1,915 $ 2,231 | 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): Purchase Price Allocation July 16, 2017 Acquisition Working capital $ 16 Property and equipment 183 Reacquired franchise rights 2,323 Goodwill 1,429 Gift card liability (2 ) Total purchase price $ 3,949 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table represents a disaggregation of revenue from contracts with customers for the fiscal years 2018 , 2017 , and 2016 (in thousands): Fiscal Year December 29, December 30, December 31, Royalty revenue 61,882 53,204 46,779 Advertising fees and related income 34,484 30,174 14,561 Franchise fees 2,924 2,535 2,198 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 29, December 30, December 31, Revenue: Franchise segment $ 106,342 $ 96,250 $ 69,036 Company segment 46,839 37,069 34,288 Total segment revenue $ 153,181 $ 133,319 $ 103,324 Segment Profit: Franchise segment $ 30,645 $ 29,230 $ 23,254 Company segment 10,303 4,643 5,526 Total segment profit 40,948 33,873 28,780 Corporate and other (1) 2,421 — 2,173 Interest expense, net 10,123 5,131 4,396 Other (income) expense, net 1,477 — 254 Income before taxes $ 26,927 $ 28,742 $ 21,957 Depreciation and amortization: Franchise segment $ 3,036 $ 2,220 $ 2,092 Company segment 1,277 1,156 916 Total depreciation and amortization 4,313 3,376 3,008 Capital expenditures: Franchise segment $ 2,930 $ 864 $ 387 Company segment (2) 1,052 1,671 1,669 Total capital expenditures $ 3,982 $ 2,535 $ 2,056 (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. (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 29, 2018 December 30, 2017 Segment assets: Franchise segment $ 97,455 $ 98,069 Company segment 19,841 14,166 Total segment assets 117,296 112,235 Corporate and other (3) 22,453 7,601 Total assets $ 139,749 $ 119,836 (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. As of December 29, 2018 December 30, 2017 Segment goodwill: Franchise segment $ 39,930 $ 39,930 Company segment 9,725 6,627 Total goodwill $ 49,655 $ 46,557 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 and 2017 (in thousands, except per share data): Quarter Ended December 29, 2018 September 29, 2018 June 30, 2018 March 31, 2018 December 30, 2017 September 30, 2017 July 1, 2017 April 1, 2017 Total revenue $ 40,509 $ 38,246 $ 37,037 $ 37,389 $ 35,208 $ 33,123 $ 31,578 $ 33,410 Operating income 8,679 10,356 9,926 9,566 8,466 8,696 8,186 8,525 Net income 2,419 6,293 6,839 6,168 8,072 4,704 4,907 6,257 Earnings per share Basic $ 0.08 $ 0.21 $ 0.23 $ 0.21 $ 0.28 $ 0.16 $ 0.17 $ 0.22 Diluted $ 0.08 $ 0.21 $ 0.23 $ 0.21 $ 0.27 $ 0.16 $ 0.17 $ 0.21 Weighted average shares outstanding Basic 29,296 29,284 29,230 29,116 29,094 29,081 29,032 28,895 Diluted 29,620 29,584 29,528 29,503 29,459 29,384 29,394 29,336 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Overview (Details) | 12 Months Ended | ||
Dec. 29, 2018restaurantcountry | Dec. 30, 2017restaurant | Dec. 31, 2016 | |
Franchisor Disclosure [Line Items] | |||
Fiscal period duration | 364 days | 364 days | 371 days |
Franchised Units | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 1,223 | 1,110 | |
Franchised Units | United States | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 1,095 | ||
Franchised Units | Non-US | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 128 | ||
Number of countries in which the entity operates | country | 9 | ||
Entity Operated Units | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 29 | 23 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 12,493 | $ 4,063 | ||
Restricted Cash and Cash Equivalents, Current | 4,462 | 0 | ||
Restricted cash, included in Advertising fund assets, restricted | 3,985 | 2,329 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 20,940 | $ 6,392 | $ 5,693 | $ 14,083 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Equipment, furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Equipment, furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 7 years |
Computer Software, Intangible Asset | |
Property, Plant and Equipment [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Basis of Presentation and Sum_7
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. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Franchisor Disclosure [Line Items] | |||
Incentives From Vendors Recognized | $ 8.2 | $ 11.2 | $ 6.5 |
Cost of Sales | |||
Franchisor Disclosure [Line Items] | |||
Incentives From Vendors Recognized | $ 1.2 | $ 0.9 | $ 1 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Franchisor Disclosure [Line Items] | |||
Percentage of revenue collected for advertising fund | 3.00% | 2.00% | |
Percentage of Revenue Required to be Spent on Advertising | 4.00% | ||
Advertising expenses | $ 33,699 | $ 32,427 | $ 13,849 |
Cost of Sales | |||
Franchisor Disclosure [Line Items] | |||
Advertising expenses | $ 1,900 | $ 1,500 | $ 1,500 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 29, 2018 | |
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 Su_10
Basis of Presentation and Summary of Significant Accounting Policies - Business Segments (Details) | Dec. 29, 2018restaurantcountry | Dec. 30, 2017restaurant |
Franchised Units | ||
Segment Reporting Information [Line Items] | ||
Number of restaurants | 1,223 | 1,110 |
Entity Operated Units | ||
Segment Reporting Information [Line Items] | ||
Number of restaurants | 29 | 23 |
Non-US | Franchised Units | ||
Segment Reporting Information [Line Items] | ||
Number of countries in which the entity operates | country | 9 | |
Number of restaurants | 128 |
Basis of Presentation and Su_11
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 14, 2018 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | May 01, 2018 | Apr. 16, 2018 | Feb. 19, 2018 | Jul. 16, 2017 | Dec. 26, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Advertising fees and related income | $ 34,484 | $ 30,174 | $ 14,561 | |||||||||||||||
Total revenues | $ 40,509 | $ 38,246 | $ 37,037 | $ 37,389 | $ 35,208 | $ 33,123 | $ 31,578 | $ 33,410 | 153,181 | 133,319 | 103,324 | |||||||
Cost of sales | 32,063 | [1] | 28,745 | 25,308 | ||||||||||||||
Advertising expenses | 33,699 | 32,427 | 13,849 | |||||||||||||||
Selling, general and administrative | 44,579 | 34,898 | 34,552 | |||||||||||||||
Depreciation and amortization | 4,313 | 3,376 | 3,008 | |||||||||||||||
Total costs and expenses | 114,654 | 99,446 | 76,717 | |||||||||||||||
Operating income | 8,679 | 10,356 | 9,926 | 9,566 | 8,466 | 8,696 | 8,186 | 8,525 | 38,527 | 33,873 | 26,607 | |||||||
Interest expense, net | 10,123 | 5,131 | 4,396 | |||||||||||||||
Other expense, net | 1,477 | 0 | 254 | |||||||||||||||
Income before taxes | 26,927 | 28,742 | 21,957 | |||||||||||||||
Income tax expense | 5,208 | 4,802 | 8,188 | |||||||||||||||
Net income | $ 2,419 | $ 6,293 | $ 6,839 | $ 6,168 | $ 8,072 | $ 4,704 | $ 4,907 | $ 6,257 | $ 21,719 | $ 23,940 | $ 13,769 | |||||||
Basic (in usd per share) | $ 0.08 | $ 0.21 | $ 0.23 | $ 0.21 | $ 0.28 | $ 0.16 | $ 0.17 | $ 0.22 | $ 0.74 | $ 0.82 | $ 0.48 | |||||||
Diluted (in usd per share) | $ 0.08 | $ 0.21 | $ 0.23 | $ 0.21 | $ 0.27 | $ 0.16 | $ 0.17 | $ 0.21 | $ 0.73 | $ 0.82 | $ 0.47 | |||||||
Cash and cash equivalents | $ 12,493 | $ 4,063 | $ 12,493 | $ 4,063 | ||||||||||||||
Accounts receivable, net | 5,764 | 4,567 | 5,764 | 4,567 | ||||||||||||||
Prepaid expenses and other current assets | 2,056 | 4,334 | 2,056 | 4,334 | ||||||||||||||
Advertising fund assets, restricted | 5,131 | 2,944 | 5,131 | 2,944 | ||||||||||||||
Assets, Current | 29,906 | 15,908 | 29,906 | 15,908 | ||||||||||||||
Property and equipment, net | 8,338 | 5,826 | 8,338 | 5,826 | ||||||||||||||
Goodwill | 49,655 | 46,557 | 49,655 | 46,557 | $ 45,128 | $ 1,309 | $ 458 | $ 1,331 | $ 1,429 | |||||||||
Trademarks | 32,700 | 32,700 | 32,700 | 32,700 | ||||||||||||||
Customer relationships, net | 18,240 | 17,739 | 18,240 | 17,739 | ||||||||||||||
Other non-current assets | 4,917 | 3,278 | 4,917 | 3,278 | ||||||||||||||
Total assets | 139,749 | 119,836 | 139,749 | 119,836 | ||||||||||||||
Accounts payable | 2,750 | 1,752 | 2,750 | 1,752 | ||||||||||||||
Other Liabilities, Current | 16,201 | 10,929 | 16,201 | 10,929 | ||||||||||||||
Current portion of debt | 2,400 | 3,500 | 2,400 | 3,500 | ||||||||||||||
Advertising fund liabilities | 5,131 | 2,944 | 5,131 | 2,944 | ||||||||||||||
Liabilities, Current | 26,482 | 19,125 | 26,482 | 19,125 | ||||||||||||||
Long-term debt, net | 309,374 | 129,841 | 309,374 | 129,841 | ||||||||||||||
Deferred revenues, net of current | 21,885 | 21,226 | 21,885 | 21,226 | ||||||||||||||
Deferred income tax liabilities, net | 4,866 | 5,920 | 4,866 | 5,920 | ||||||||||||||
Other non-current liabilities | 1,972 | 2,142 | 1,972 | 2,142 | ||||||||||||||
Liabilities | 364,579 | 178,254 | 364,579 | 178,254 | ||||||||||||||
Common stock, $0.01 par value; 100,000,000 shares authorized; 29,296,939 and 29,092,669 shares issued and outstanding as of December 29, 2018 and December 30, 2017, respectively | 293 | 291 | 293 | 291 | ||||||||||||||
Additional paid-in-capital | 1,036 | 262 | 1,036 | 262 | ||||||||||||||
Accumulated deficit | (226,159) | (58,971) | (226,159) | (58,971) | ||||||||||||||
Stockholders' Equity Attributable to Parent | (224,830) | (58,418) | (224,830) | (58,418) | (81,430) | $ (14,810) | ||||||||||||
Liabilities and Equity | 139,749 | 119,836 | 139,749 | 119,836 | ||||||||||||||
Deferred income taxes | (1,054) | (2,548) | (1,645) | |||||||||||||||
Stock-based compensation expense | 3,725 | 1,851 | 1,231 | |||||||||||||||
Amortization of debt issuance costs | 1,983 | 292 | 437 | |||||||||||||||
Accounts receivable | (1,197) | (1,368) | 205 | |||||||||||||||
Prepaid expenses and other assets | (178) | (503) | (171) | |||||||||||||||
Advertising fund assets and liabilities, net | 1,657 | 386 | (1,450) | |||||||||||||||
Accounts payable and other current liabilities | 6,996 | (876) | 3,648 | |||||||||||||||
Deferred revenue | 977 | 3,052 | 2,644 | |||||||||||||||
Other non-current liabilities | (171) | (167) | 203 | |||||||||||||||
Net Cash Provided by (Used in) Operating Activities | 38,770 | 27,435 | 21,879 | |||||||||||||||
Purchases of property and equipment | (3,982) | (2,535) | (2,056) | |||||||||||||||
Acquisition of restaurants from franchisees | (6,516) | (3,949) | 0 | |||||||||||||||
Net Cash Provided by (Used in) Investing Activities | (10,498) | (6,484) | (2,056) | |||||||||||||||
Proceeds from exercise of stock options | 517 | 1,318 | 485 | |||||||||||||||
Borrowings of long-term debt | 551,108 | 3,500 | 165,000 | |||||||||||||||
Repayments of long-term debt | (364,858) | (21,000) | (109,250) | |||||||||||||||
Payment of deferred financing costs | (9,571) | 0 | (1,180) | |||||||||||||||
Dividends paid | $ (93,100) | (190,737) | (4,070) | (83,268) | ||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (13,724) | (20,252) | (28,213) | |||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 14,548 | 699 | (8,390) | |||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 20,940 | 6,392 | 20,940 | 6,392 | 5,693 | 14,083 | ||||||||||||
Customer relationships | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Customer relationships, net | 14,233 | 15,567 | 14,233 | 15,567 | ||||||||||||||
Accounting Standards Update 2016-02 | Minimum | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Operating Lease, Right-of-Use Asset | 9,000 | 9,000 | ||||||||||||||||
Operating Lease, Liability | 9,000 | 9,000 | ||||||||||||||||
Accounting Standards Update 2016-02 | Maximum | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Operating Lease, Right-of-Use Asset | 11,000 | 11,000 | ||||||||||||||||
Operating Lease, Liability | $ 11,000 | 11,000 | ||||||||||||||||
Accounting Standards Update 2014-09 | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Depreciation and amortization | 0 | 0 | ||||||||||||||||
Net income | (3,364) | (1,665) | ||||||||||||||||
Cash and cash equivalents | 0 | 0 | ||||||||||||||||
Accounts receivable, net | 0 | 0 | ||||||||||||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||||||||||||
Advertising fund assets, restricted | 0 | 0 | ||||||||||||||||
Assets, Current | 0 | 0 | ||||||||||||||||
Property and equipment, net | 0 | 0 | ||||||||||||||||
Goodwill | 0 | 0 | ||||||||||||||||
Trademarks | 0 | 0 | ||||||||||||||||
Other non-current assets | 0 | 0 | ||||||||||||||||
Total assets | 0 | 0 | ||||||||||||||||
Accounts payable | 0 | 0 | ||||||||||||||||
Other Liabilities, Current | 246 | 246 | ||||||||||||||||
Current portion of debt | 0 | 0 | ||||||||||||||||
Advertising fund liabilities | 0 | 0 | ||||||||||||||||
Liabilities, Current | 246 | 246 | ||||||||||||||||
Long-term debt, net | 0 | 0 | ||||||||||||||||
Deferred revenues, net of current | 12,799 | 12,799 | ||||||||||||||||
Deferred income tax liabilities, net | (2,879) | (2,879) | ||||||||||||||||
Other non-current liabilities | 0 | 0 | ||||||||||||||||
Liabilities | 10,166 | 10,166 | ||||||||||||||||
Common stock, $0.01 par value; 100,000,000 shares authorized; 29,296,939 and 29,092,669 shares issued and outstanding as of December 29, 2018 and December 30, 2017, respectively | 0 | 0 | ||||||||||||||||
Additional paid-in-capital | 0 | 0 | ||||||||||||||||
Accumulated deficit | (10,166) | (10,166) | ||||||||||||||||
Stockholders' Equity Attributable to Parent | (10,166) | (10,166) | ||||||||||||||||
Liabilities and Equity | 0 | 0 | ||||||||||||||||
Deferred income taxes | 957 | (931) | ||||||||||||||||
Stock-based compensation expense | 0 | 0 | ||||||||||||||||
Amortization of debt issuance costs | 0 | 0 | ||||||||||||||||
Accounts receivable | 0 | 0 | ||||||||||||||||
Prepaid expenses and other assets | 0 | 0 | ||||||||||||||||
Advertising fund assets and liabilities, net | 0 | 0 | ||||||||||||||||
Accounts payable and other current liabilities | 0 | 0 | ||||||||||||||||
Deferred revenue | 2,407 | 2,596 | ||||||||||||||||
Other non-current liabilities | 0 | 0 | ||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 | ||||||||||||||||
Purchases of property and equipment | 0 | 0 | ||||||||||||||||
Acquisition of restaurants from franchisees | 0 | |||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 0 | 0 | ||||||||||||||||
Proceeds from exercise of stock options | 0 | 0 | ||||||||||||||||
Borrowings of long-term debt | 0 | 0 | ||||||||||||||||
Repayments of long-term debt | 0 | 0 | ||||||||||||||||
Payment of deferred financing costs | 0 | |||||||||||||||||
Dividends paid | 0 | 0 | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 0 | 0 | ||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 0 | 0 | ||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | 0 | ||||||||||||||
Accounting Standards Update 2014-09 | Franchise Revenue | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Advertising fees and related income | 0 | 0 | ||||||||||||||||
Total revenues | (2,407) | (2,596) | ||||||||||||||||
Cost of sales | 0 | 0 | ||||||||||||||||
Advertising expenses | 0 | 0 | ||||||||||||||||
Selling, general and administrative | 0 | 0 | ||||||||||||||||
Depreciation and amortization | 0 | 0 | ||||||||||||||||
Total costs and expenses | 0 | 0 | ||||||||||||||||
Operating income | (2,407) | (2,596) | ||||||||||||||||
Interest expense, net | 0 | 0 | ||||||||||||||||
Other expense, net | 0 | |||||||||||||||||
Income before taxes | (2,407) | (2,596) | ||||||||||||||||
Income tax expense | 957 | (931) | ||||||||||||||||
Net income | $ (3,364) | $ (1,665) | ||||||||||||||||
Basic (in usd per share) | $ (0.12) | $ (0.06) | ||||||||||||||||
Diluted (in usd per share) | $ (0.11) | $ (0.06) | ||||||||||||||||
Accounting Standards Update 2014-09 | Franchise Advertising Fund Income | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Advertising fees and related income | $ 30,174 | $ 14,561 | ||||||||||||||||
Total revenues | 30,174 | 14,561 | ||||||||||||||||
Cost of sales | 0 | 0 | ||||||||||||||||
Advertising expenses | 32,427 | 13,849 | ||||||||||||||||
Selling, general and administrative | (2,253) | 712 | ||||||||||||||||
Depreciation and amortization | 0 | 0 | ||||||||||||||||
Total costs and expenses | 30,174 | 14,561 | ||||||||||||||||
Operating income | 0 | 0 | ||||||||||||||||
Interest expense, net | 0 | 0 | ||||||||||||||||
Other expense, net | 0 | |||||||||||||||||
Income before taxes | 0 | 0 | ||||||||||||||||
Income tax expense | 0 | 0 | ||||||||||||||||
Net income | $ 0 | $ 0 | ||||||||||||||||
Basic (in usd per share) | $ 0 | $ 0 | ||||||||||||||||
Diluted (in usd per share) | $ 0 | $ 0 | ||||||||||||||||
Accounting Standards Update 2014-09 | Customer relationships | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Customer relationships, net | 0 | $ 0 | ||||||||||||||||
Accounting Standards Update 2016-18 | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Depreciation and amortization | 0 | $ 0 | ||||||||||||||||
Net income | 0 | 0 | ||||||||||||||||
Deferred income taxes | 0 | 0 | ||||||||||||||||
Stock-based compensation expense | 0 | 0 | ||||||||||||||||
Amortization of debt issuance costs | 0 | 0 | ||||||||||||||||
Accounts receivable | 0 | 0 | ||||||||||||||||
Prepaid expenses and other assets | 0 | 0 | ||||||||||||||||
Advertising fund assets and liabilities, net | 386 | (1,450) | ||||||||||||||||
Accounts payable and other current liabilities | 0 | 0 | ||||||||||||||||
Deferred revenue | 0 | 0 | ||||||||||||||||
Other non-current liabilities | 0 | 0 | ||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | 386 | (1,450) | ||||||||||||||||
Purchases of property and equipment | 0 | 0 | ||||||||||||||||
Acquisition of restaurants from franchisees | 0 | |||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | 0 | 0 | ||||||||||||||||
Proceeds from exercise of stock options | 0 | 0 | ||||||||||||||||
Borrowings of long-term debt | 0 | 0 | ||||||||||||||||
Repayments of long-term debt | 0 | 0 | ||||||||||||||||
Payment of deferred financing costs | 0 | |||||||||||||||||
Dividends paid | 0 | 0 | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | 0 | 0 | ||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 386 | (1,450) | ||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 2,329 | 2,329 | 1,943 | 3,393 | ||||||||||||||
Previously Reported | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Advertising fees and related income | 0 | 0 | ||||||||||||||||
Total revenues | 105,552 | 91,359 | ||||||||||||||||
Cost of sales | 28,745 | 25,308 | ||||||||||||||||
Advertising expenses | 0 | 0 | ||||||||||||||||
Selling, general and administrative | 37,151 | 33,840 | ||||||||||||||||
Depreciation and amortization | 3,376 | 3,008 | ||||||||||||||||
Total costs and expenses | 69,272 | 62,156 | ||||||||||||||||
Operating income | 36,280 | 29,203 | ||||||||||||||||
Interest expense, net | 5,131 | 4,396 | ||||||||||||||||
Other expense, net | 254 | |||||||||||||||||
Income before taxes | 31,149 | 24,553 | ||||||||||||||||
Income tax expense | 3,845 | 9,119 | ||||||||||||||||
Net income | $ 27,304 | $ 15,434 | ||||||||||||||||
Basic (in usd per share) | $ 0.94 | $ 0.54 | ||||||||||||||||
Diluted (in usd per share) | $ 0.93 | $ 0.53 | ||||||||||||||||
Cash and cash equivalents | 4,063 | $ 4,063 | ||||||||||||||||
Accounts receivable, net | 4,567 | 4,567 | ||||||||||||||||
Prepaid expenses and other current assets | 4,334 | 4,334 | ||||||||||||||||
Advertising fund assets, restricted | 2,944 | 2,944 | ||||||||||||||||
Assets, Current | 15,908 | 15,908 | ||||||||||||||||
Property and equipment, net | 5,826 | 5,826 | ||||||||||||||||
Goodwill | 46,557 | 46,557 | ||||||||||||||||
Trademarks | 32,700 | 32,700 | ||||||||||||||||
Other non-current assets | 3,278 | 3,278 | ||||||||||||||||
Total assets | 119,836 | 119,836 | ||||||||||||||||
Accounts payable | 1,752 | 1,752 | ||||||||||||||||
Other Liabilities, Current | 10,683 | 10,683 | ||||||||||||||||
Current portion of debt | 3,500 | 3,500 | ||||||||||||||||
Advertising fund liabilities | 2,944 | 2,944 | ||||||||||||||||
Liabilities, Current | 18,879 | 18,879 | ||||||||||||||||
Long-term debt, net | 129,841 | 129,841 | ||||||||||||||||
Deferred revenues, net of current | 8,427 | 8,427 | ||||||||||||||||
Deferred income tax liabilities, net | 8,799 | 8,799 | ||||||||||||||||
Other non-current liabilities | 2,142 | 2,142 | ||||||||||||||||
Liabilities | 168,088 | 168,088 | ||||||||||||||||
Common stock, $0.01 par value; 100,000,000 shares authorized; 29,296,939 and 29,092,669 shares issued and outstanding as of December 29, 2018 and December 30, 2017, respectively | 291 | 291 | ||||||||||||||||
Additional paid-in-capital | 262 | 262 | ||||||||||||||||
Accumulated deficit | (48,805) | (48,805) | ||||||||||||||||
Stockholders' Equity Attributable to Parent | (48,252) | (48,252) | ||||||||||||||||
Liabilities and Equity | 119,836 | 119,836 | ||||||||||||||||
Deferred income taxes | (3,505) | $ (714) | ||||||||||||||||
Stock-based compensation expense | 1,851 | 1,231 | ||||||||||||||||
Amortization of debt issuance costs | 292 | 437 | ||||||||||||||||
Accounts receivable | (1,368) | 205 | ||||||||||||||||
Prepaid expenses and other assets | (503) | (171) | ||||||||||||||||
Advertising fund assets and liabilities, net | 0 | 0 | ||||||||||||||||
Accounts payable and other current liabilities | (876) | 3,648 | ||||||||||||||||
Deferred revenue | 645 | 48 | ||||||||||||||||
Other non-current liabilities | (167) | 203 | ||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | 27,049 | 23,329 | ||||||||||||||||
Purchases of property and equipment | (2,535) | (2,056) | ||||||||||||||||
Acquisition of restaurants from franchisees | (3,949) | |||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | (6,484) | (2,056) | ||||||||||||||||
Proceeds from exercise of stock options | 1,318 | 485 | ||||||||||||||||
Borrowings of long-term debt | 3,500 | 165,000 | ||||||||||||||||
Repayments of long-term debt | (21,000) | (109,250) | ||||||||||||||||
Payment of deferred financing costs | (1,180) | |||||||||||||||||
Dividends paid | (4,070) | (83,268) | ||||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (20,252) | (28,213) | ||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 313 | (6,940) | ||||||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4,063 | 4,063 | 3,750 | $ 10,690 | ||||||||||||||
Previously Reported | Customer relationships | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Customer relationships, net | $ 15,567 | 15,567 | ||||||||||||||||
Franchise | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Royalty revenue, franchise fees and other | 71,858 | 66,076 | 54,475 | |||||||||||||||
Franchise | Accounting Standards Update 2014-09 | Franchise Revenue | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Royalty revenue, franchise fees and other | (2,407) | (2,596) | ||||||||||||||||
Franchise | Accounting Standards Update 2014-09 | Franchise Advertising Fund Income | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Royalty revenue, franchise fees and other | 0 | 0 | ||||||||||||||||
Franchise | Previously Reported | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Royalty revenue, franchise fees and other | 68,483 | 57,071 | ||||||||||||||||
Franchisor Owned Outlet | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Total revenues | $ 46,839 | 37,069 | 34,288 | |||||||||||||||
Franchisor Owned Outlet | Accounting Standards Update 2014-09 | Franchise Revenue | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Total revenues | 0 | 0 | ||||||||||||||||
Franchisor Owned Outlet | Accounting Standards Update 2014-09 | Franchise Advertising Fund Income | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Total revenues | 0 | 0 | ||||||||||||||||
Franchisor Owned Outlet | Previously Reported | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Total revenues | $ 37,069 | $ 34,288 | ||||||||||||||||
[1] | Cost of sales excludes depreciation and amortization, which are presented separately, and includes advertising expenses incurred at company-owned restaurants. |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Basic weighted average shares outstanding | 29,296 | 29,284 | 29,230 | 29,116 | 29,094 | 29,081 | 29,032 | 28,895 | 29,231 | 29,025 | 28,637 |
Dilutive shares | 356 | 399 | 346 | ||||||||
Diluted weighted average shares outstanding | 29,620 | 29,584 | 29,528 | 29,503 | 29,459 | 29,384 | 29,394 | 29,336 | 29,587 | 29,424 | 28,983 |
Employee Stock Option | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | 6 | 4 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 26, 2019 | Dec. 03, 2018 | Feb. 14, 2018 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Dec. 03, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Dividends Payable [Line Items] | |||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.32 | ||||||||||||
Dividends per share (in usd per share) | $ 3.05 | $ 3.17 | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 6.54 | $ 0.14 | $ 2.90 | ||
Dividends, Common Stock | $ 182,800 | $ 9,400 | |||||||||||
Dividends paid | $ (93,100) | $ (190,737) | $ (4,070) | $ (83,268) | |||||||||
Subsequent Event | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.09 | ||||||||||||
Dividends Payable, Current | $ (2,700) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
2018-1 Class A-2 Senior Secured Notes (1) | $ 320,000 | $ 0 | |
Nonrecurring | Level 2 | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
2018-1 Class A-2 Senior Secured Notes (1) | 320,000 | ||
Term loan facility (1) | 64,750 | ||
Revolving credit facility (1) | 69,000 | ||
Nonrecurring | Level 2 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
2018-1 Class A-2 Senior Secured Notes (1) | [1] | $ 320,000 | |
Term loan facility (1) | [1] | 64,750 | |
Revolving credit facility (1) | [1] | $ 69,000 | |
[1] | The fair value of long-term debt was estimated using available market information. |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 5,764 | $ 4,567 |
Vendor rebates receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 2,224 | 2,145 |
Royalties receivable, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 1,521 | 987 |
Gift card receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 1,484 | 1,184 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 535 | $ 251 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 21,083 | $ 16,486 | |
Less: accumulated depreciation | (12,745) | (10,660) | |
Property and equipment, net | 8,338 | 5,826 | |
Depreciation | 2,100 | 1,900 | $ 1,600 |
Equipment, furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 11,192 | 9,298 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 7,929 | 7,005 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,962 | $ 183 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Goodwill (Details) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018USD ($)reporting_unit | Dec. 30, 2017USD ($) | |
Goodwill [Line Items] | ||
Number of reporting units | reporting_unit | 2 | |
Goodwill balance, beginning of period | $ 46,557 | $ 45,128 |
Acquisition of restaurants | 3,098 | 1,429 |
Goodwill balance, end of period | $ 49,655 | $ 46,557 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Intangible Assets Excluding Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | ||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived assets | $ 32,700 | $ 32,700 | |
Finite-Lived Intangible Assets [Line Items] | |||
Less: accumulated amortization | (13,453) | (11,249) | |
Definite-lived assets | $ 18,240 | 17,739 | |
Weighted Average Amortization Period (in years) | 17 years 6 months | ||
Intangible assets, net | $ 50,940 | 50,439 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived assets, gross | 26,300 | 26,300 | |
Definite-lived assets | $ 14,233 | 15,567 | |
Weighted Average Amortization Period (in years) | 20 years | ||
Franchise rights (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 5 years 4 months 24 days | ||
Proprietary software (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 5 years | ||
Noncompete agreements (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 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 | [1] | 5,028 | 2,323 |
Other non-current assets | Proprietary software (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived assets, gross | [1] | 115 | 115 |
Other non-current assets | Noncompete agreements (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived assets, gross | [1] | $ 250 | $ 250 |
[1] | Included within Other non-current assets net of associated accumulated amortization within the Consolidated Balance Sheets. |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 2,200 | $ 1,500 | $ 1,400 |
Fiscal year 2019 | 2,378 | ||
Fiscal year 2020 | 2,117 | ||
Fiscal year 2021 | 1,957 | ||
Fiscal year 2022 | 1,800 | ||
Fiscal year 2023 | 1,692 | ||
Thereafter | 8,296 | ||
Total | $ 18,240 | $ 17,739 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets and Other Current Liabilities - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 1,468 | $ 946 |
Federal income tax receivable | 0 | 2,500 |
Prepaid gift card expenses | 289 | 672 |
Inventories | 299 | 216 |
Total | $ 2,056 | $ 4,334 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets and Other Current Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued payroll and bonuses | $ 5,183 | $ 4,192 |
Current portion of deferred revenues | 2,343 | 2,041 |
Gift card liability | 2,782 | 2,074 |
Taxes payable | 398 | 163 |
Other accrued liabilities | 5,495 | 2,459 |
Total | $ 16,201 | $ 10,929 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current expense | |||
Federal | $ 4,932 | $ 6,204 | $ 8,854 |
State | 1,089 | 800 | 847 |
Foreign | 241 | 346 | 132 |
Deferred expense (benefit) | |||
Federal | (946) | (2,660) | (1,571) |
State | (108) | 112 | (74) |
Income tax expense | $ 5,208 | $ 4,802 | $ 8,188 |
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 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal statutory tax rate | 21.00% | 35.00% | |
Expected income tax expense at statutory rate | $ 5,655 | $ 10,060 | $ 7,685 |
Tax Act impact on deferred taxes | 0 | (3,647) | 0 |
Permanent differences | (1,462) | (2,300) | 92 |
State tax expense, net of federal benefit | 520 | 589 | 373 |
Foreign tax expense | 241 | 347 | 132 |
Foreign tax credits | (241) | (347) | (132) |
Increase in unrecognized tax benefit | 322 | 114 | 185 |
Valuation allowance | 0 | 0 | 0 |
Other | 173 | (14) | (147) |
Income tax expense | $ 5,208 | $ 4,802 | $ 8,188 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred tax assets: | ||
Deferred revenue | $ 4,470 | $ 4,282 |
Accrued bonus | 276 | 53 |
Stock based compensation | 735 | 607 |
Deferred rent | 257 | 270 |
Intangible assets | 118 | 191 |
Other | 405 | 157 |
Net operating loss carryforwards and credits | 571 | 443 |
Valuation allowance | (482) | (482) |
Deferred tax assets, net of valuation allowance | 6,350 | 5,521 |
Deferred tax liabilities: | ||
Intangible assets | (10,933) | (11,302) |
Property and equipment | (283) | (139) |
Deferred tax liabilities | (11,216) | (11,441) |
Deferred tax liabilities, net | (4,866) | $ (5,920) |
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. 29, 2018 | Dec. 30, 2017 |
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | $ (482) | $ (482) |
State and Local Jurisdiction | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforward | 23,300 | $ 23,300 |
Valuation allowance | (443) | |
Domestic Tax Authority | ||
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | $ (39) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | $ 680 | $ 602 | $ 465 |
Additions for tax positions of prior years | 78 | 0 | 0 |
Subtractions for tax positions of prior years | 0 | 0 | 0 |
Additions for tax positions of current year | 155 | 78 | 137 |
Subtractions for tax positions of current year | 0 | 0 | 0 |
Unrecognized tax benefits, end of period | 913 | 680 | $ 602 |
Accrued interest and penalties on unrecognized tax benefits | $ 258 | $ 151 |
Debt Obligations Debt Obligatio
Debt Obligations Debt Obligations - Components of Long-term Debt (Details) - USD ($) | Dec. 29, 2018 | Jan. 30, 2018 | Dec. 30, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | ||||
2018-1 Class A-2 Senior Secured Notes (1) | $ 320,000,000 | $ 0 | ||
Debt issuance costs, net of amortization | (8,226,000) | (409,000) | ||
Current portion of debt | (2,400,000) | (3,500,000) | ||
Long-term debt, net | 309,374,000 | 129,841,000 | ||
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Term loan | 0 | $ 100,000,000 | 64,750,000 | $ 70,000,000 |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Term loan | $ 0 | $ 69,000,000 |
Debt Obligations Debt Obligat_2
Debt Obligations Debt Obligations - Securitized Financing Facility (Details) - USD ($) $ in Thousands | Nov. 14, 2018 | Jan. 30, 2018 | Jun. 30, 2016 | Jul. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||||||
2018-1 Class A-2 Senior Secured Notes (1) | $ 320,000 | $ 0 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.97% | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000 | |||||
Letters of Credit Outstanding, Amount | 5,000 | |||||
Debt issuance cost | $ 8,800 | $ 1,000 | $ 1,300 | |||
Previously capitalized financing costs, expensed | 1,500 | $ 200 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 20,000 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||
Debt issuance costs, capitalized | 8,800 | $ 800 | $ 1,200 | |||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Lines of Credit | $ 215,000 | $ 85,500 |
Debt Obligations - Senior Secur
Debt Obligations - Senior Secured Credit Facility (Details) - USD ($) | Nov. 14, 2018 | Feb. 14, 2018 | Jan. 30, 2018 | Jun. 30, 2016 | Jul. 01, 2017 | Sep. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 180,000,000 | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||||
Dividends paid | $ (93,100,000) | $ (190,737,000) | $ (4,070,000) | $ (83,268,000) | |||||
Debt Issuance, Accounted for as a Modification | $ 202,500,000 | 90,000,000 | |||||||
Debt Issuance, Accounted for as New Debt | 47,500,000 | 90,000,000 | |||||||
Debt issuance cost | $ 8,800,000 | 1,000,000 | $ 1,300,000 | ||||||
Debt issuance costs, expensed | 200,000 | 100,000 | |||||||
Debt issuance costs, capitalized | 8,800,000 | 800,000 | 1,200,000 | ||||||
Previously capitalized financing costs, expensed | 1,500,000 | $ 200,000 | |||||||
Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan | 100,000,000 | 70,000,000 | 0 | $ 64,750,000 | |||||
Repayments of Secured Debt | 133,800,000 | ||||||||
Repayments of Lines of Credit | $ (215,000,000) | (85,500,000) | |||||||
Secured Debt | Minimum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | 1.00% | |||||||
Secured Debt | Minimum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 2.00% | |||||||
Secured Debt | Maximum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 2.00% | |||||||
Secured Debt | Maximum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | 3.00% | |||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 150,000,000 | $ 110,000,000 | |||||||
Term loan | $ 0 | $ 69,000,000 | |||||||
Revolving Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | ||||||||
Revolving Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Maturities (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Debt Disclosure [Abstract] | |
Fiscal year 2019 | $ 2,400 |
Fiscal year 2020 | 3,200 |
Fiscal year 2021 | 3,200 |
Fiscal year 2022 | 3,200 |
Fiscal year 2023 | 308,000 |
Total | $ 320,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Fiscal year 2019 | $ 2,181 | ||
Fiscal year 2020 | 2,214 | ||
Fiscal year 2021 | 2,005 | ||
Fiscal year 2022 | 1,800 | ||
Fiscal year 2023 | 1,523 | ||
Thereafter | 2,145 | ||
Total | 11,868 | ||
Rent expense | $ 2,300 | $ 2,000 | $ 1,900 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Matching contributions | $ 556 | $ 450 | $ 425 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Plan (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of stock options, vested | $ 0.5 | $ 1 | $ 1 |
Intrinsic value of stock options | 7.6 | 8.1 | 3.8 |
Stock-based compensation expense, unrecognized | 0.3 | ||
Additional Paid-In Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3.7 | $ 1.9 | $ 1.2 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, recognition period | 1 year 4 days | ||
2015 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants (in shares) | 1.8 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Stock options outstanding (in shares) | 420 | |
Stock options granted (in shares) | 2 | |
Stock options exercised (in shares) | (158) | |
Stock options canceled (in shares) | (28) | |
Stock options outstanding (in shares) | 236 | 420 |
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) | $ 5.45 | |
Stock options grated, weighted average exercise price (in usd per share) | 44.03 | |
Stock options exercised, weighted average exercise price (in usd per share) | 3.29 | |
stock options canceled, weighted average exercise price (in usd per share) | 7.53 | |
Stock options outstanding, weighted average exercise price (in usd per share) | $ 6.04 | $ 5.45 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Stock options outstanding, aggregate intrinsic value | $ 14,068 | |
Stock options outstanding, aggregate intrinsic value | $ 13,848 | $ 14,068 |
Stock options outstanding, weighted average remaining term | 4 years 9 months 4 days | 5 years 8 months 12 days |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-vested Shares (Details) shares in Thousands | 12 Months Ended |
Dec. 29, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested shares at beginning of year (in shares) | shares | 171 |
Granted (in shares) | shares | 2 |
Vested (in shares) | shares | (86) |
Forfeited (in shares) | shares | (28) |
Non-vested shares at beginning of year (in shares) | shares | 59 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested shares at beginning of year (in usd per share) | $ / shares | $ 9.54 |
Granted (in usd per share) | $ / shares | 44.03 |
Vested (in usd per share) | $ / shares | 6.76 |
Forfeited (in usd per share) | $ / shares | 7.53 |
Non-vested shares at beginning of year (in usd per share) | $ / shares | $ 12.82 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Assumptions (Details) | 12 Months Ended |
Dec. 31, 2016$ / shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk-free interest | 1.44% |
Expected life (years) | 6 years 2 months 12 days |
Expected dividend yield | 0.00% |
Volatility | 52.00% |
Weighted-average Black-Scholes fair value per share at date of grant (in usd per share) | $ 13.74 |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Units and Performance Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Units outstanding | 103,000 | 94,000 |
Units granted | 63,000 | |
Units vested | (31,000) | |
Units canceled | (23,000) | |
Performance Units, weighted average grant date fair value | $ 36.18 | $ 27.11 |
Units granted, weighted average grant date fair value | 43.88 | |
Units vested, weighted average grant date fair value | 27.12 | |
Units canceled, weighted average grant date fair value | $ 32.56 | |
Performance units, service period | 3 years | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 2.6 | |
Stock-based compensation expense, recognition period | 1 year 8 months 23 days | |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Units outstanding | 130,000 | 86,000 |
Units granted | 73,023 | |
Units vested | (14,000) | |
Units canceled | (15,000) | |
Performance Units, weighted average grant date fair value | $ 40.46 | $ 27.63 |
Units granted, weighted average grant date fair value | 46.23 | |
Units vested, weighted average grant date fair value | 26.25 | |
Units canceled, weighted average grant date fair value | $ 31.65 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 3.4 | |
Stock-based compensation expense, recognition period | 1 year 7 months 17 days | |
Award Modification, Incremental Compensation Cost | $ 0.9 | |
PSUs based on EBITDA targets | Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted | 57,733 | |
PSUs based on EBITDA targets | Performance Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance units, service period | 1 year | |
Performance Units, vesting percentage | 0.00% | |
PSUs based on EBITDA targets | Performance Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance units, service period | 3 years | |
Performance Units, vesting percentage | 100.00% | |
PSUs based on new sales growth | Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted | 15,290 | |
PSUs based on new sales growth | Performance Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted, weighted average grant date fair value | $ 0 | |
PSUs based on new sales growth | Performance Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted, weighted average grant date fair value | $ 179.27 | |
Performance Units, vesting percentage | 500.00% |
Stock-Based Compensation Rest_2
Stock-Based Compensation Restricted Stock Awards (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Awards, beginning of period | shares | 15 |
Awards granted | shares | 6 |
Awards vested | shares | (5) |
Awards canceled | shares | 0 |
Restricted Stock Awards, end of period | shares | 16 |
Restricted Stock Awards, weighted average grant date fair value, beginning of period | $ / shares | $ 27.89 |
Restricted Stock Awards, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 49 |
Restricted Stock Awards, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | 27.52 |
Restricted Stock Awards, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | 0 |
Restricted Stock Awards, weighted average grant date fair value, end of period | $ / shares | $ 36.02 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ | $ 0.4 |
Stock-based compensation expense, recognition period | 1 year 7 months 25 days |
Restaurant Acquisition (Details
Restaurant Acquisition (Details) $ in Thousands | Apr. 16, 2018USD ($)restaurant | Jul. 16, 2017USD ($)restaurant | Dec. 29, 2018USD ($)restaurant | Dec. 29, 2018USD ($)restaurant | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | May 01, 2018USD ($)restaurant | Feb. 19, 2018USD ($)restaurant |
Business Acquisition [Line Items] | ||||||||
Number of Restaurants Acquired from a Franchisee | restaurant | 1 | 2 | 3 | 3 | 1 | 1 | ||
Business Combination, Consideration Transferred | $ 6,516 | $ 3,949 | $ 0 | |||||
Working capital | $ 20 | $ 16 | $ 7 | $ 4 | ||||
Property and equipment | 160 | 183 | 28 | 26 | ||||
Reacquired franchise rights | 1,277 | 2,323 | 887 | 541 | ||||
Goodwill | 458 | 1,429 | $ 49,655 | $ 49,655 | $ 46,557 | $ 45,128 | 1,309 | 1,331 |
Gift card liability | 0 | (2) | 0 | (2) | ||||
Total purchase price | 1,915 | 3,949 | $ 2,231 | $ 1,900 | ||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Consideration Transferred | $ 1,900 | $ 3,900 | $ 500 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 40,509 | $ 38,246 | $ 37,037 | $ 37,389 | $ 35,208 | $ 33,123 | $ 31,578 | $ 33,410 | $ 153,181 | $ 133,319 | $ 103,324 |
Advertising fees and related income | 34,484 | 30,174 | 14,561 | ||||||||
Contract with Customer, Portion of Liability not yet being Amortized | $ 9,200 | $ 10,100 | $ 9,200 | 10,100 | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 7 years 6 months | 7 years 6 months | |||||||||
Franchise | Transferred over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Initial Franchise Fees | $ 2,924 | 2,535 | 2,198 | ||||||||
Franchise | Transferred at Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Advertising fees and related income | 34,484 | 30,174 | 14,561 | ||||||||
Royalty | Transferred at Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 61,882 | $ 53,204 | $ 46,779 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | May 01, 2018 | Apr. 16, 2018 | Feb. 19, 2018 | Jul. 16, 2017 | |
Revenue: | |||||||||||||||
Total revenues | $ 40,509 | $ 38,246 | $ 37,037 | $ 37,389 | $ 35,208 | $ 33,123 | $ 31,578 | $ 33,410 | $ 153,181 | $ 133,319 | $ 103,324 | ||||
Segment Profit: | |||||||||||||||
Operating income | 8,679 | $ 10,356 | $ 9,926 | $ 9,566 | 8,466 | $ 8,696 | $ 8,186 | $ 8,525 | 38,527 | 33,873 | 26,607 | ||||
Interest expense, net | 10,123 | 5,131 | 4,396 | ||||||||||||
Other (income) expense, net | 1,477 | 0 | 254 | ||||||||||||
Income before taxes | 26,927 | 28,742 | 21,957 | ||||||||||||
Depreciation and amortization | 4,313 | 3,376 | 3,008 | ||||||||||||
Capital expenditures: | 3,982 | 2,535 | 2,056 | ||||||||||||
Total assets | 139,749 | 119,836 | 139,749 | 119,836 | |||||||||||
Goodwill | 49,655 | 46,557 | 49,655 | 46,557 | 45,128 | $ 1,309 | $ 458 | $ 1,331 | $ 1,429 | ||||||
Operating Segments | |||||||||||||||
Revenue: | |||||||||||||||
Total revenues | 153,181 | 133,319 | 103,324 | ||||||||||||
Segment Profit: | |||||||||||||||
Operating income | 40,948 | 33,873 | 28,780 | ||||||||||||
Depreciation and amortization | 4,313 | 3,376 | 3,008 | ||||||||||||
Capital expenditures: | 3,982 | 2,535 | 2,056 | ||||||||||||
Total assets | 117,296 | 112,235 | 117,296 | 112,235 | |||||||||||
Goodwill | 49,655 | 46,557 | 49,655 | 46,557 | |||||||||||
Corporate | |||||||||||||||
Segment Profit: | |||||||||||||||
Other Nonoperating Expense | (2,421) | 0 | 2,173 | ||||||||||||
Total assets | 22,453 | 7,601 | 22,453 | 7,601 | |||||||||||
Segment Reconciling Items | |||||||||||||||
Segment Profit: | |||||||||||||||
Interest expense, net | (10,123) | (5,131) | (4,396) | ||||||||||||
Other (income) expense, net | (1,477) | 0 | (254) | ||||||||||||
Franchise segment | Operating Segments | |||||||||||||||
Revenue: | |||||||||||||||
Total revenues | 106,342 | 96,250 | 69,036 | ||||||||||||
Segment Profit: | |||||||||||||||
Operating income | 30,645 | 29,230 | 23,254 | ||||||||||||
Depreciation and amortization | 3,036 | 2,220 | 2,092 | ||||||||||||
Capital expenditures: | 2,930 | 864 | 387 | ||||||||||||
Total assets | 97,455 | 98,069 | 97,455 | 98,069 | |||||||||||
Goodwill | 39,930 | 39,930 | 39,930 | 39,930 | |||||||||||
Company segment | Operating Segments | |||||||||||||||
Segment Profit: | |||||||||||||||
Operating income | 10,303 | 4,643 | 5,526 | ||||||||||||
Depreciation and amortization | 1,277 | 1,156 | 916 | ||||||||||||
Capital expenditures: | 1,052 | 1,671 | $ 1,669 | ||||||||||||
Total assets | 19,841 | 14,166 | 19,841 | 14,166 | |||||||||||
Goodwill | $ 9,725 | $ 6,627 | $ 9,725 | $ 6,627 |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 40,509 | $ 38,246 | $ 37,037 | $ 37,389 | $ 35,208 | $ 33,123 | $ 31,578 | $ 33,410 | $ 153,181 | $ 133,319 | $ 103,324 |
Operating income | 8,679 | 10,356 | 9,926 | 9,566 | 8,466 | 8,696 | 8,186 | 8,525 | 38,527 | 33,873 | 26,607 |
Net income | $ 2,419 | $ 6,293 | $ 6,839 | $ 6,168 | $ 8,072 | $ 4,704 | $ 4,907 | $ 6,257 | $ 21,719 | $ 23,940 | $ 13,769 |
Earnings per share | |||||||||||
Basic (in usd per share) | $ 0.08 | $ 0.21 | $ 0.23 | $ 0.21 | $ 0.28 | $ 0.16 | $ 0.17 | $ 0.22 | $ 0.74 | $ 0.82 | $ 0.48 |
Diluted (in usd per share) | $ 0.08 | $ 0.21 | $ 0.23 | $ 0.21 | $ 0.27 | $ 0.16 | $ 0.17 | $ 0.21 | $ 0.73 | $ 0.82 | $ 0.47 |
Weighted average shares outstanding | |||||||||||
Basic (in shares) | 29,296 | 29,284 | 29,230 | 29,116 | 29,094 | 29,081 | 29,032 | 28,895 | 29,231 | 29,025 | 28,637 |
Diluted weighted average number of common shares (in shares) | 29,620 | 29,584 | 29,528 | 29,503 | 29,459 | 29,384 | 29,394 | 29,336 | 29,587 | 29,424 | 28,983 |