Wingstop (WING) 10-Q 29 Jul 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 27, 2020	Jul. 28, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 27, 2020
Document Transition Report	false
Entity File Number	001-37425
Entity Registrant Name	WINGSTOP INC.
Entity Central Index Key	0001636222
Current Fiscal Year End Date	--12-26
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3494862
Entity Address, Address Line One	5501 LBJ Freeway
Entity Address, Address Line Two	5th Floor
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75240
City Area Code	972
Local Phone Number	686-6500
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	WING
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,598,958

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Current assets
Cash and cash equivalents	$ 45,766	$ 12,849
Restricted cash	4,132	4,790
Accounts receivable, net	5,580	5,175
Prepaid expenses and other current assets	4,118	2,449
Advertising fund assets, restricted	7,860	4,927
Total current assets	67,456	30,190
Property and equipment, net	27,220	27,842
Goodwill	50,160	50,188
Trademarks	32,700	32,700
Other non-current assets	11,323	12,283
Total assets	201,114	166,113
Current liabilities
Accounts payable	2,890	3,348
Other current liabilities	20,829	21,454
Current portion of debt	16,000	3,200
Advertising fund liabilities	7,860	4,927
Total current liabilities	47,579	32,929
Long-term debt, net	310,846	307,669
Deferred revenues, net of current	22,280	22,343
Deferred income tax liabilities, net	6,043	4,485
Other non-current liabilities	7,038	8,115
Total liabilities	393,786	375,541
Commitments and contingencies (see Note 7)
Stockholders' deficit
Common stock, $0.01 par value; 100,000,000 shares authorized; 29,596,347 and 29,457,228 shares issued and outstanding as of June 27, 2020 and December 28, 2019, respectively	296	295
Additional paid-in-capital	43	552
Accumulated deficit	(193,011)	(210,275)
Total stockholders' deficit	(192,672)	(209,428)
Total liabilities and stockholders' deficit	$ 201,114	$ 166,113
Common Stock, Par or Stated Value Per Share	$ 0.01
Common Stock, Shares Authorized	100,000,000
Common Stock, Shares, Issued	29,596,347	29,457,228
Common Stock, Shares, Outstanding	29,596,347	29,457,228
Customer Relationships [Member]
Customer relationships, net	$ 12,255	$ 12,910

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Revenue:
Royalty revenue, franchise fees and other		$ 27,858	$ 21,187	$ 52,057	$ 42,515
Advertising fees and related income		19,923	13,487	35,937	26,697
Total revenue		66,105	48,562	121,541	96,615
Costs and expenses:
Cost of sales (1)	[1]	13,387	10,573	24,563	20,303
Advertising expenses		18,589	12,973	33,513	25,707
Selling, general and administrative		13,194	13,394	27,504	25,936
Depreciation and amortization		1,398	1,335	2,953	2,611
Total costs and expenses		46,568	38,275	88,533	74,557
Operating income		19,537	10,287	33,008	22,058
Interest expense, net		4,214	4,299	8,359	8,709
Income before income tax expense		15,323	5,988	24,649	13,349
Income tax expense		3,784	1,070	5,014	1,825
Net income		$ 11,539	$ 4,918	$ 19,635	$ 11,524
Earnings per share
Basic		$ 0.39	$ 0.17	$ 0.66	$ 0.39
Diluted		$ 0.39	$ 0.17	$ 0.66	$ 0.39
Weighted average shares outstanding
Basic		29,588	29,418	29,538	29,377
Diluted		29,793	29,667	29,751	29,650
Dividends per share		$ 0.11	$ 0.09	$ 0.22	$ 0.18
Franchisor Owned Outlet
Revenue:
Total revenue		$ 18,324	$ 13,888	$ 33,547	$ 27,403
[1]	Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, and excludes depreciation and amortization, which are presented separately.

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Deficit Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Balance (shares) at Dec. 29, 2018		29,296,939
Balance at Dec. 29, 2018	$ (224,830)	$ 293	$ 1,036	$ (226,159)
Net income	6,606			6,606
Shares issued under stock plans, shares		114,936
Shares issued under stock plans, value	158	$ 1	157
Tax payments for restricted stock upon vesting (shares)		(12,469)
Tax payments for restricted stock upon vesting	(833)			(833)
Stock-based compensation expense	838		838
Dividends paid	(2,571)		(1,825)	(746)
Balance (shares) at Mar. 30, 2019		29,399,406
Balance at Mar. 30, 2019	(220,478)	$ 294	206	(220,978)
Balance (shares) at Dec. 29, 2018		29,296,939
Balance at Dec. 29, 2018	(224,830)	$ 293	1,036	(226,159)
Net income	11,524
Tax payments for restricted stock upon vesting	(1,059)
Balance (shares) at Jun. 29, 2019		29,442,728
Balance at Jun. 29, 2019	(216,368)	$ 295	892	(217,555)
Balance (shares) at Mar. 30, 2019		29,399,406
Balance at Mar. 30, 2019	(220,478)	$ 294	206	(220,978)
Net income	4,918			4,918
Shares issued under stock plans, value	148	$ 1	147
Tax payments for restricted stock upon vesting (shares)		(2,456)
Tax payments for restricted stock upon vesting	(226)			(226)
Stock-based compensation expense	1,928		1,928
Dividends paid	(2,658)		(1,389)	(1,269)
Balance (shares) at Jun. 29, 2019		29,442,728
Balance at Jun. 29, 2019	(216,368)	$ 295	892	(217,555)
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture		45,778
Accumulated deficit	$ (210,275)
Balance (shares) at Dec. 28, 2019	29,457,228	29,457,228
Balance at Dec. 28, 2019	$ (209,428)	$ 295	552	(210,275)
Net income	8,096			8,096
Shares issued under stock plans, shares		128,585
Shares issued under stock plans, value	505	$ 1	504
Tax payments for restricted stock upon vesting (shares)		(2,419)
Tax payments for restricted stock upon vesting	(229)			(229)
Stock-based compensation expense	1,331		1,331
Dividends paid	(3,223)		(2,168)	(1,055)
Balance (shares) at Mar. 28, 2020		29,583,394
Balance at Mar. 28, 2020	$ (202,948)	$ 296	219	(203,463)
Balance (shares) at Dec. 28, 2019	29,457,228	29,457,228
Balance at Dec. 28, 2019	$ (209,428)	$ 295	552	(210,275)
Net income	19,635
Tax payments for restricted stock upon vesting	$ (241)
Balance (shares) at Jun. 27, 2020	29,596,347	29,596,347
Balance at Jun. 27, 2020	$ (192,672)	$ 296	43	(193,011)
Balance (shares) at Mar. 28, 2020		29,583,394
Balance at Mar. 28, 2020	(202,948)	$ 296	219	(203,463)
Net income	11,539			11,539
Shares issued under stock plans, value	57		57
Tax payments for restricted stock upon vesting (shares)		(104)
Tax payments for restricted stock upon vesting	(12)			(12)
Stock-based compensation expense	1,969		1,969
Dividends paid	$ (3,277)		(2,202)	(1,075)
Balance (shares) at Jun. 27, 2020	29,596,347	29,596,347
Balance at Jun. 27, 2020	$ (192,672)	$ 296	$ 43	$ (193,011)
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture		13,057
Accumulated deficit	$ (193,011)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Operating activities
Net income	$ 19,635	$ 11,524
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	2,953	2,611
Deferred income taxes	1,720	(687)
Stock-based compensation expense	3,300	2,766
Gain (Loss) on Sale of Assets and Asset Impairment Charges	(2,016)	0
Amortization of debt issuance costs	815	775
Changes in operating assets and liabilities:
Accounts receivable	(405)	123
Prepaid expenses and other assets	(652)	(678)
Advertising fund assets and liabilities, net	2,004	(2,664)
Accounts payable and other current liabilities	(675)	(3,503)
Deferred revenue	10	(258)
Other non-current liabilities	(1,077)	482
Cash provided by operating activities	25,612	10,491
Investing activities
Purchases of property and equipment	(2,670)	(1,442)
Proceeds from Sales of Assets, Investing Activities	2,300	0
Cash used in investing activities	(370)	(1,442)
Financing activities
Proceeds from exercise of stock options	562	306
Borrowings of long-term debt	16,000	0
Repayments of long-term debt	(800)	(800)
Tax payments for restricted stock upon vesting	(241)	(1,059)
Dividends paid	(6,500)	(5,229)
Cash provided by (used in) financing activities	9,021	(6,782)
Net increase in cash, cash equivalents, and restricted cash	34,263	2,267
Cash, cash equivalents, and restricted cash at beginning of period	21,175	20,940
Cash, cash equivalents, and restricted cash at end of period	$ 55,438	$ 23,207

Basis of Presentation (Notes)

Basis of Presentation (Notes)	6 Months Ended
	Jun. 27, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation and Update to Significant Accounting Policies Basis of Presentation Wingstop Inc., together with its consolidated subsidiaries (collectively, “Wingstop” or the “Company”), is in the business of franchising and operating Wingstop restaurants. As of June 27, 2020, the Company had 1,244 domestic franchised restaurants, and 162 international franchised restaurants. As of June 27, 2020, the Company owned and operated 30 restaurants. The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Consequently, financial information and disclosures normally included in financial statements prepared annually in accordance with accounting principles generally accepted in the United States have been condensed or omitted. Balance sheet amounts are as of June 27, 2020 and December 28, 2019, and operating results are for the thirteen and twenty-six weeks ended June 27, 2020 and June 29, 2019. In the Company’s opinion, all necessary adjustments have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019. The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2020 and 2019 each have 52 weeks. Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash within the Consolidated Balance Sheets and the Consolidated Statements of Cash Flows as of June 27, 2020 and December 28, 2019 were as follows (in thousands): June 27, 2020 December 28, 2019 Cash and cash equivalents $ 45,766 $ 12,849 Restricted cash 4,132 4,790 Restricted cash, included in Advertising fund assets, restricted 5,540 3,536 Total cash, cash equivalents, and restricted cash $ 55,438 $ 21,175 Segment Reporting Historically, the Company had two reporting segments: franchise operations and company restaurant operations. In accordance with Accounting Standards Codification 280 “Segment Reporting”, the Company uses the management approach for determining its reportable segments. The management approach is based upon the way management reviews performance and allocates resources. Due to changes in how the Company’s chief operating decision maker assesses the Company’s performance and allocates resources, the Company reevaluated its operating segments and has determined it has one operating segment and one reporting segment. Recently Issued Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including applicable interim periods. The Company is currently assessing the impact of adopting this standard but does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

Earnings per Share (Notes)

Earnings per Share (Notes)	6 Months Ended
	Jun. 27, 2020
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities convertible into, or other contracts to issue, common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of the exercise and vesting of stock options and restricted stock units, respectively, as determined using the treasury stock method. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended June 27, June 29, June 27, June 29, Basic weighted average shares outstanding 29,588 29,418 29,538 29,377 Dilutive shares 205 249 213 273 Diluted weighted average shares outstanding 29,793 29,667 29,751 29,650 For the thirteen weeks ended June 27, 2020 and June 29, 2019, equity awards representing approximately 1,000 and 6,000 shares, respectively, were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive. For the twenty-six weeks ended June 27, 2020 and June 29, 2019, equity awards representing approximately 1,000 and 18,000 shares, respectively, were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive.

Dividends (Notes)

Dividends (Notes)	6 Months Ended
	Jun. 27, 2020
Dividends [Abstract]
Dividends Disclosure [Text Block]	Dividends In each of the first two quarters of 2020, the Company’s Board of Directors declared a quarterly dividend of $0.11 per share of common stock, which, in the aggregate, totaled $6.5 million, or $0.22 per share of common stock, and which was paid during the twenty-six weeks ended June 27, 2020. Subsequent to the second quarter, on July 28, 2020, the Company’s Board of Directors declared a quarterly dividend of $0.14 per share of common stock for stockholders of record as of August 28, 2020, to be paid on September 11, 2020, totaling approximately $4.1 million.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 27, 2020
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 June 27, 2020 December 28, 2019 Carrying Value Fair Value Carrying Value Fair Value Securitized Financing Facility: 2018-1 Class A-2 Senior Secured Notes (1) Level 2 $ 316,800 $ 314,395 $ 317,600 $ 331,247 2018-1 Class A-1 Variable Funding Senior Notes (2) Level 2 $ 16,000 $ 16,000 $ — $ — (1) The fair value of the 2018-1 Class A-2 Senior Secured Notes was estimated using available market information. (2) The fair value of the 2018-1 Class A-1 Variable Funding Senior Notes was estimated based on the borrowing rates currently available for variable rate loans obtained from third-party lending institutions and approximated the book value of such 2018-1 Class A-1 Variable Funding Senior Notes. The Company also measures certain non-financial assets (primarily long-lived assets, intangible assets, and goodwill) at fair value on a non-recurring basis in connection with its periodic evaluations of such assets for potential impairment.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 27, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense and the effective tax rate were $3.8 million and 24.7%, respectively, for the thirteen weeks ended June 27, 2020, and $1.1 million and 17.9%, respectively, for the thirteen weeks ended June 29, 2019. Income tax expense and the effective tax rate were $5.0 million and 20.3%, respectively, for the twenty-six weeks ended June 27, 2020, and $1.8 million and 13.7%, respectively, for the twenty-six weeks ended June 29, 2019. Income tax expense for the thirteen and twenty-six weeks ended June 27, 2020 included $0.2 million and $1.5 million, respectively, in tax benefits resulting from the recognition of excess tax benefits from stock-based compensation, as compared to $0.6 million and $1.8 million in tax benefits for the thirteen and twenty-six weeks ended June 29, 2019, respectively.

Debt Obligations

Debt Obligations	6 Months Ended
	Jun. 27, 2020
Debt Disclosure [Abstract]
Debt Obligations	Debt Obligations Long-term debt consists of the following components (in thousands): June 27, 2020 December 28, 2019 2018-1 Class A-2 Senior Secured Notes $ 316,800 $ 317,600 2018-1 Class A-1 Variable Funding Senior Notes 16,000 — Debt issuance costs, net of amortization (5,954) (6,731) Total debt 326,846 310,869 Less: current portion of debt (16,000) (3,200) Long-term debt, net $ 310,846 $ 307,669 The Company's outstanding debt consists of (i) Series 2018-1 4.97% Fixed Rate Senior Secured Notes, Class A-2 (the “Class A-2 Notes”) issued by Wingstop Funding LLC (the “Issuer”), a limited-purpose, bankruptcy-remote, wholly owned indirect subsidiary of Wingstop Inc. and (ii) Series 2018-1 Variable Funding Senior Notes, Class A-1, which permit borrowings of up to a maximum principal amount of $20 million, which may be used to borrow amounts on a revolving basis and to issue letters of credit (the “Variable Funding Notes,” and together with the Class A-2 Notes, the “Notes”). As of June 27, 2020, we had $316.8 million of Class A-2 Notes outstanding and $16.0 million of Variable Funding Notes outstanding. The Variable Funding Notes were issued in the first quarter of 2020 as a precautionary measure to improve the Company's cash position. The Variable Funding Notes had a weighted average interest rate of 2.72% during the twenty-six weeks ended June 27, 2020 and are classified as current debt. There were no borrowings outstanding under the Variable Funding Notes as of December 28, 2019. Further, as of June 27, 2020 and December 28, 2019, $4.0 million of letters of credit were outstanding against the Variable Funding Notes, which relate primarily to interest reserves required under the base indenture and related supplemental indenture. There were no amounts drawn down on the letters of credit as of June 27, 2020 or December 28, 2019. During the first fiscal quarter of 2020, the Company had a leverage ratio under the Class A-2 Notes of less than 5.0x. Per the terms of the Company’s debt agreements, principal payments on the Class A-2 Notes are not due until the repayment date as long as the Company maintains a leverage ratio of less than 5.0x. As such, the Company ceased making principal payments beginning in the second quarter of 2020. Accordingly, the entire outstanding balance of the Class A-2 Notes has been classified as long-term debt. The Class A-2 Notes and the Variable Funding Notes were each 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, were contributed or otherwise transferred to the Issuer and certain other limited-purpose, bankruptcy-remote, wholly owned indirect subsidiaries of the Company that act as guarantors of the Notes and that have pledged substantially all of their assets.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 27, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesThe Company is subject to legal proceedings, claims, and liabilities, such as employment-related claims and premises-liability cases, which arise in the ordinary course of business and are generally covered by insurance. In the opinion of management, the amount of ultimate liability with respect to such actions is not likely to have a material adverse impact on the Company’s financial position, results of operations, or cash flows.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 27, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation is measured at the date of grant, based on the calculated fair value of the award, and is recognized as expense over the requisite employee service period (generally the vesting period of the award). The Company recognized $3.3 million in stock-based compensation expense for the twenty-six weeks ended June 27, 2020, with a corresponding increase to additional paid-in-capital. Stock-based compensation expense is included in selling, general and administrative expense in the Consolidated Statements of Operations. Stock Options The following table summarizes stock option activity (in thousands, except term and per share data): Stock Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding - December 28, 2019 134 $ 5.72 $ 10,801 3.8 Options granted 67 84.41 Options exercised (46) 12.12 Outstanding - June 27, 2020 155 $ 38.02 $ 15,086 5.6 The total grant-date fair value of stock options vested during the twenty-six weeks ended June 27, 2020 was $0.2 million. The total intrinsic value of stock options exercised during the twenty-six weeks ended June 27, 2020 was $2.8 million. As of June 27, 2020, total unrecognized compensation expense related to unvested stock options was $1.4 million, which is expected to be recognized over a weighted-average period of 2.7 years. During the twenty-six weeks ended June 27, 2020, there was a modification to certain awards resulting in additional compensation expense of $0.4 million. Restricted Stock Units and Performance Stock Units The following table summarizes activity related to restricted stock units (“RSUs”) and performance stock units (“PSUs”) (in thousands, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Performance Stock Units Weighted Average Grant Date Fair Value Outstanding - December 28, 2019 82 $ 52.73 169 $ 55.92 Units granted 24 87.72 43 84.37 Units vested (38) 44.57 (52) 41.54 Units canceled (11) 63.89 (8) 66.04 Outstanding - June 27, 2020 57 $ 70.82 152 $ 68.49 The fair value of the Company’s RSUs and PSUs is based on the closing market price of the stock on the date of grant. The RSUs granted during the twenty-six weeks ended June 27, 2020 vest over a three-year service period. As of June 27, 2020, total unrecognized compensation expense related to unvested RSUs was $3.4 million, which is expected to be recognized over a weighted-average period of 1.9 years. The Company granted 40,529 PSUs during the twenty-six weeks ended June 27, 2020 that are based on a service condition and a performance vesting condition based on the achievement of certain adjusted EBITDA targets over a performance period of three years. The maximum vesting percentage that could be realized for each of the PSUs is 250% 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 $157.96 per unit based on the

Property, Plant, and Equipment

Property, Plant, and Equipment	6 Months Ended
	Jun. 27, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment Transactions	Company-owned Restaurant Transactions During the Company’s fiscal quarter ended June 27, 2020, the Company sold two company-owned restaurants in the Houston market to an existing franchisee for proceeds of $2.3 million. In connection with the sale of the restaurants, the Company recorded a $2.0 million pre-tax gain on the sale of the related assets and liabilities, which was net of a $28,000 reduction in goodwill. The net gain on these restaurants was recorded in Selling, general and administrative expense on our Consolidated Statements of Operations. Subsequent to the end of the Company’s fiscal quarter ended June 27, 2020, the Company completed the sale of five company-owned restaurants in the Kansas City market to an existing franchisee for proceeds of $2.5 million. The total assets associated with these restaurants held for sale totaled $1.9 million and were included in Prepaid expenses and other current assets on the Consolidated Balance Sheet as of June 27, 2020.

Revenue from Contracts with Cus

Revenue from Contracts with Customers (Notes)	6 Months Ended
	Jun. 27, 2020
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	Revenue from Contracts with Customers The following table represents a disaggregation of revenue from contracts with customers for the thirteen and twenty-six weeks ended June 27, 2020 and June 29, 2019 (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Royalty revenue $ 25,447 $ 18,437 $ 46,755 $ 36,344 Advertising fees and related income 19,923 13,487 35,937 26,697 Franchise fees 881 939 1,763 2,521

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 27, 2020
Accounting Policies [Abstract]
Fiscal Year End	The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2020 and 2019 each have 52 weeks
Recent Accounting Pronouncements	Recently Issued Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including applicable interim periods. The Company is currently assessing the impact of adopting this standard but does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.
Segment Reporting	Segment ReportingHistorically, the Company had two reporting segments: franchise operations and company restaurant operations. In accordance with Accounting Standards Codification 280 “Segment Reporting”, the Company uses the management approach for determining its reportable segments. The management approach is based upon the way management reviews performance and allocates resources. Due to changes in how the Company’s chief operating decision maker assesses the Company’s performance and allocates resources, the Company reevaluated its operating segments and has determined it has one operating segment and one reporting segment.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 27, 2020
Accounting Policies [Abstract]
Schedule of Cash and Cash Equivalents	Cash, cash equivalents, and restricted cash within the Consolidated Balance Sheets and the Consolidated Statements of Cash Flows as of June 27, 2020 and December 28, 2019 were as follows (in thousands): June 27, 2020 December 28, 2019 Cash and cash equivalents $ 45,766 $ 12,849 Restricted cash 4,132 4,790 Restricted cash, included in Advertising fund assets, restricted 5,540 3,536 Total cash, cash equivalents, and restricted cash $ 55,438 $ 21,175

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 27, 2020
Earnings Per Share [Abstract]
Schedule of Reconciliation of Basic Shares Outstanding to Diluted Shares Outstanding	Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended June 27, June 29, June 27, June 29, Basic weighted average shares outstanding 29,588 29,418 29,538 29,377 Dilutive shares 205 249 213 273 Diluted weighted average shares outstanding 29,793 29,667 29,751 29,650

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 27, 2020
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 June 27, 2020 December 28, 2019 Carrying Value Fair Value Carrying Value Fair Value Securitized Financing Facility: 2018-1 Class A-2 Senior Secured Notes (1) Level 2 $ 316,800 $ 314,395 $ 317,600 $ 331,247 2018-1 Class A-1 Variable Funding Senior Notes (2) Level 2 $ 16,000 $ 16,000 $ — $ — (1) The fair value of the 2018-1 Class A-2 Senior Secured Notes was estimated using available market information. (2) The fair value of the 2018-1 Class A-1 Variable Funding Senior Notes was estimated based on the borrowing rates currently available for variable rate loans obtained from third-party lending institutions and approximated the book value of such 2018-1 Class A-1 Variable Funding Senior Notes.

Debt Obligations (Tables)

Debt Obligations (Tables)	6 Months Ended
	Jun. 27, 2020
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt consists of the following components (in thousands): June 27, 2020 December 28, 2019 2018-1 Class A-2 Senior Secured Notes $ 316,800 $ 317,600 2018-1 Class A-1 Variable Funding Senior Notes 16,000 — Debt issuance costs, net of amortization (5,954) (6,731) Total debt 326,846 310,869 Less: current portion of debt (16,000) (3,200) Long-term debt, net $ 310,846 $ 307,669

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 27, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	The following table summarizes stock option activity (in thousands, except term and per share data): Stock Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding - December 28, 2019 134 $ 5.72 $ 10,801 3.8 Options granted 67 84.41 Options exercised (46) 12.12 Outstanding - June 27, 2020 155 $ 38.02 $ 15,086 5.6
Schedule of Unvested Restricted Stock Units Roll Forward	The following table summarizes activity related to restricted stock units (“RSUs”) and performance stock units (“PSUs”) (in thousands, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Performance Stock Units Weighted Average Grant Date Fair Value Outstanding - December 28, 2019 82 $ 52.73 169 $ 55.92 Units granted 24 87.72 43 84.37 Units vested (38) 44.57 (52) 41.54 Units canceled (11) 63.89 (8) 66.04 Outstanding - June 27, 2020 57 $ 70.82 152 $ 68.49

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 27, 2020
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 thirteen and twenty-six weeks ended June 27, 2020 and June 29, 2019 (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Royalty revenue $ 25,447 $ 18,437 $ 46,755 $ 36,344 Advertising fees and related income 19,923 13,487 35,937 26,697 Franchise fees 881 939 1,763 2,521

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019	Dec. 28, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 66,105	$ 48,562	$ 121,541	$ 96,615
Advertising fees and related income	19,923	13,487	35,937	26,697
Contract with Customer, Portion of Liability not yet being Amortized	$ 8,300		$ 8,300		$ 8,300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-27
Disaggregation of Revenue [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	7 years 2 months 12 days		7 years 2 months 12 days
Franchise | Transferred over Time
Disaggregation of Revenue [Line Items]
Total revenue	$ 881	939	$ 1,763	2,521
Franchise | Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Advertising fees and related income	19,923	13,487	35,937	26,697
Royalty | Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Total revenue	$ 25,447	$ 18,437	$ 46,755	$ 36,344

Basis of Presentation - Overvie

Basis of Presentation - Overview (Details)	Jun. 27, 2020restaurant
Franchised Units | United States
Franchisor Disclosure [Line Items]
Number of Restaurants	1,244
Franchised Units | Non-US
Franchisor Disclosure [Line Items]
Number of Restaurants	162
Entity Operated Units
Franchisor Disclosure [Line Items]
Number of Restaurants	30

Basis of Presentation - Cash, c

Basis of Presentation - Cash, cash equivalent, and restricted cash (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019	Dec. 29, 2018
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 45,766	$ 12,849
Restricted cash	4,132	4,790
Restricted cash, included in Advertising Fund assets, restricted	5,540	3,536
Total cash, cash equivalents, and restricted cash	$ 55,438	$ 21,175	$ 23,207	$ 20,940

Earnings per Share (Details)

Earnings per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Earnings Per Share [Abstract]
Basic weighted average shares outstanding	29,588,000	29,418,000	29,538,000	29,377,000
Dilutive shares	205,000	249,000	213,000	273,000
Diluted weighted average shares outstanding	29,793,000	29,667,000	29,751,000	29,650,000
Antidilutive securities excluded from computation of earnings per share, amount	1,000	6,000	1,000	18,000

Dividends (Details)

Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 28, 2020	Jun. 27, 2020	Mar. 28, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Dividends Payable [Line Items]
Common Stock, Dividends, Per Share, Cash Paid		$ 0.11	$ 0.11	$ 0.09	$ 0.22	$ 0.18
Dividends paid					$ (6,500)	$ (5,229)
Subsequent Event
Dividends Payable [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.14
Dividends Payable, Current	$ (4,100)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands		Jun. 27, 2020	Dec. 28, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
2018-1 Class A-2 Senior Secured Notes		$ 316,800	$ 317,600
2018-1 Class A-1 Variable Funding Senior Notes		16,000	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Payable, Fair Value Disclosure	[1]	314,395	331,247
Lines of Credit, Fair Value Disclosure	[2]	$ 16,000	$ 0
[1]	The fair value of the 2018-1 Class A-2 Senior Secured Notes was estimated using available market information.
[2]	The fair value of the 2018-1 Class A-1 Variable Funding Senior Notes was estimated based on the borrowing rates currently available for variable rate loans obtained from third-party lending institutions and approximated the book value of such 2018-1 Class A-1 Variable Funding Senior Notes.

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ 3,784	$ 1,070	$ 5,014	$ 1,825
Effective income tax rate	24.70%	17.90%	20.30%	13.70%
Excess Tax Benefit from Share-based Compensation	$ 200	$ 600	$ 1,500	$ 1,800

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Long-term Debt, by Type Alternative [Abstract]
2018-1 Class A-2 Senior Secured Notes	$ 316,800	$ 317,600
2018-1 Class A-1 Variable Funding Senior Notes	16,000	0
Debt issuance costs, net of amortization	(5,954)	(6,731)
Total debt	326,846	310,869
Less: current portion of debt	(16,000)	(3,200)
Long-term debt, net	$ 310,846	$ 307,669

Debt Obligations - Securitized

Debt Obligations - Securitized Financing Facility (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2020	Dec. 28, 2019	Nov. 14, 2018
Debt Disclosure [Abstract]
2018-1 Class A-2 Senior Secured Notes	$ 316,800	$ 317,600
Debt Instrument, Interest Rate, Stated Percentage			4.97%
Line of Credit Facility, Maximum Borrowing Capacity			$ 20,000
2018-1 Class A-1 Variable Funding Senior Notes	16,000	0
Letters of Credit Outstanding, Amount	$ 4,000	$ 4,000
Debt, Weighted Average Interest Rate	2.72%
Debt Instrument, Covenant Description	5.0

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 27, 2020	Dec. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Stock options outstanding, beginning of period (in shares)	134
Stock options granted (in shares)	67
Stock options exercised (in shares)	(46)
Stock options outstanding, end of period (in shares)	155	134
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Stock options outstanding, weighted average exercise price, beginning of period (in usd per share)	$ 5.72
Stock options granted, weighted average exercise price (in usd per share)	84.41
Stock options exercised, weighted average exercise price (in usd per share)	12.12
Stock options outstanding, weighted average exercise price, end of period (in usd per share)	$ 38.02	$ 5.72
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share-based Payment Award, Options, Aggregate Intrinsic Value	$ 15,086	$ 10,801
Stock options outstanding, weighted average remaining term	5 years 7 months 6 days	3 years 9 months 18 days

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Plan (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 27, 2020USD ($)	Jun. 27, 2020USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value of stock options, vested		$ 200
Intrinsic value of stock options exercised		2,800
Stock-based compensation expense, unrecognized	$ 1,400	$ 1,400
Award Modification, Incremental Compensation Cost	$ 400
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense, recognition period		2 years 8 months 12 days
Additional Paid-In Capital
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 3,300

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Details) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 27, 2020USD ($)$ / sharesshares	Jun. 27, 2020USD ($)$ / sharesshares
Maximum | Market-based vesting
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	250.00%
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock units and performance stock units outstanding, beginning of period (in shares) | shares		82,000
Restricted stock units and performance stock units granted (in shares) | shares		24,000
Restricted stock units and performance stock units released (in shares) | shares		(38,000)
Restricted stock units and performance stock units canceled (in shares) | shares		(11,000)
Restricted stock units and performance stock units outstanding, end of period (in shares) | shares	57,000	57,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Restricted stock units and performance stock units outstanding, weighted average grant date fair value, beginning of period (in usd per share)		$ 52.73
Restricted stock units and performance stock units granted, weighted average grant date fair value (in usd per share)		87.72
Restricted stock units and performance stock units released, weighted average grant date fair value (in usd per share)		44.57
Restricted stock units and performance stock units canceled, weighted average grant date fair value (in usd per share)		63.89
Restricted stock units and performance stock units outstanding, weighted average grant date fair value, end of period (in usd per share)	$ 70.82	$ 70.82
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $	$ 3.4	$ 3.4
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		1 year 10 months 24 days
Restricted stock units and performance stock units granted, weighted average grant date fair value (in usd per share)		$ 87.72
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock units and performance stock units outstanding, beginning of period (in shares) | shares		169,000
Restricted stock units and performance stock units granted (in shares) | shares		43,000
Restricted stock units and performance stock units released (in shares) | shares		(52,000)
Restricted stock units and performance stock units canceled (in shares) | shares		(8,000)
Restricted stock units and performance stock units outstanding, end of period (in shares) | shares	152,000	152,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Restricted stock units and performance stock units outstanding, weighted average grant date fair value, beginning of period (in usd per share)		$ 55.92
Restricted stock units and performance stock units granted, weighted average grant date fair value (in usd per share)		84.37
Restricted stock units and performance stock units released, weighted average grant date fair value (in usd per share)		41.54
Restricted stock units and performance stock units canceled, weighted average grant date fair value (in usd per share)		66.04
Restricted stock units and performance stock units outstanding, weighted average grant date fair value, end of period (in usd per share)	$ 68.49	$ 68.49
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $	$ 5.8	$ 5.8
Restricted stock units and performance stock units granted, weighted average grant date fair value (in usd per share)		$ 84.37
Performance Shares | Market-based vesting
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock units and performance stock units granted (in shares) | shares		40,529
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Performance Shares | Minimum | Market-based vesting
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Restricted stock units and performance stock units granted, weighted average grant date fair value (in usd per share)		$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Restricted stock units and performance stock units granted, weighted average grant date fair value (in usd per share)		0
Performance Shares | Maximum | Market-based vesting
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Restricted stock units and performance stock units granted, weighted average grant date fair value (in usd per share)		157.96
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Restricted stock units and performance stock units granted, weighted average grant date fair value (in usd per share)		$ 157.96

Property, Plant, and Equipment

Property, Plant, and Equipment (Details) $ in Thousands	Jul. 13, 2020USD ($)restaurant	Jun. 27, 2020USD ($)
Property, Plant and Equipment [Line Items]
Proceeds from Sale of Productive Assets		$ 2,300
Goodwill, Written off Related to Sale of Business Unit		28
Gain (Loss) on Disposition of Property Plant Equipment		$ 2,000
Subsequent Event
Property, Plant and Equipment [Line Items]
Proceeds from Sale of Productive Assets	$ 2,500
Significant Changes, Franchises Sold | restaurant	5
Assets Held-for-sale, Not Part of Disposal Group, Current, Other	$ 1,900

Uncategorized Items - wing-2020

Label	Element	Value
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings (Accumulated Deficit)	us-gaap_RetainedEarningsAccumulatedDeficit	$ 154,000
Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]
Retained Earnings (Accumulated Deficit)	us-gaap_RetainedEarningsAccumulatedDeficit	$ 154,000