First Watch Restaurant (FWRG) 10-Q 8 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 26, 2021	Nov. 05, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 26, 2021
Document Transition Report	false
Entity File Number	001-04321
Entity Registrant Name	First Watch Restaurant Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-4271369
Entity Address, Address Line One	8725 Pendery Place
Entity Address, Address Line Two	Suite 201
Entity Address, City or Town	Bradenton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	34201
City Area Code	941
Local Phone Number	907-9800
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	FWRG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,048,446
Entity Central Index Key	0001789940
Amendment Flag	false
Current Fiscal Year End Date	--12-27
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 26, 2021	Dec. 27, 2020
Current assets:
Cash and cash equivalents	$ 51,851,000	$ 38,846,000
Restricted cash	251,000	251,000
Accounts receivable	2,901,000	3,915,000
Inventory	3,473,000	2,915,000
Prepaid expenses	3,304,000	2,490,000
Deferred offering costs	3,709,000	0
Other current assets	1,232,000	621,000
Total current assets	66,721,000	49,038,000
Goodwill	345,219,000	345,219,000
Intangible assets, net	143,241,000	143,662,000
Operating lease right-of-use assets	318,931,000	307,558,000
Property, fixtures and equipment, net of accumulated depreciation of $107,994 and $86,250, respectively	163,404,000	160,744,000
Other long-term assets	1,319,000	1,291,000
Total assets	1,038,835,000	1,007,512,000
Current liabilities:
Accounts payable	6,977,000	4,220,000
Accrued liabilities	17,281,000	13,482,000
Accrued compensation and deferred payroll taxes	15,256,000	10,856,000
Deferred revenues	2,251,000	4,273,000
Current portion of operating lease liabilities	39,633,000	40,111,000
Current portion of long-term debt	3,626,000	3,590,000
Total current liabilities	85,024,000	76,532,000
Operating lease liabilities	322,516,000	307,802,000
Long-term debt, net	287,660,000	286,400,000
Deferred income taxes	12,839,000	10,313,000
Employee-related Liabilities	3,333,000	3,333,000
Other long-term liabilities	3,305,000	2,266,000
Total liabilities	714,677,000	686,646,000
Commitments and contingencies
Equity:
Preferred stock; $0.01 par value; 266,667 shares authorized, issued and outstanding	3,000	3,000
Common stock; $0.01 par value; 300,000,000 shares authorized; 45,013,784 shares issued and outstanding	450,000	450,000
Additional paid-in capital	424,091,000	423,345,000
Accumulated deficit	(100,386,000)	(102,932,000)
Total equity	324,158,000	320,866,000
Total liabilities and equity	$ 1,038,835,000	$ 1,007,512,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 26, 2021	Dec. 27, 2020
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 107,994	$ 86,250
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	266,667	266,667
Preferred stock, shares issued (in shares)	266,667	266,667
Preferred stock, shares outstanding (in shares)	266,667	266,667
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	45,013,784	45,013,784
Common stock, shares outstanding (in shares)	45,013,784	45,013,784

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2021	Sep. 27, 2020	Sep. 26, 2021	Sep. 27, 2020
Revenues:
Total revenues	$ 157,441	$ 99,749	$ 438,573	$ 232,995
Restaurant operating expenses (exclusive of depreciation and amortization shown below):
Food and beverage costs	35,871	22,053	96,383	53,040
Labor and other related expenses	50,587	34,115	136,586	84,127
Other restaurant operating expenses	24,185	19,881	71,000	43,163
Occupancy expenses	14,199	13,127	41,956	38,309
General and administrative expenses	17,019	11,347	44,360	33,625
Depreciation and amortization	8,203	7,849	23,965	22,877
Impairments and loss on disposal of assets	98	27	261	282
Transaction expenses (income), net	126	(34)	752	65
Total operating costs and expenses	150,288	108,365	415,263	275,488
Income (Loss) from operations	7,153	(8,616)	23,310	(42,493)
Interest expense	(6,051)	(5,832)	(18,656)	(16,499)
Other income, net	215	45	536	405
Income (Loss) before income tax expense (benefit)	1,317	(14,403)	5,190	(58,587)
Income tax expense (benefit)	534	(3,262)	2,644	(16,024)
Net income (loss)	783	(11,141)	2,546	(42,563)
Comprehensive income (loss)	$ 783	$ (11,141)	$ 2,546	$ (42,563)
Net income (loss) per common share - basic (in dollars per share)	$ 0.02	$ (0.25)	$ 0.06	$ (0.95)
Net income (loss) per common share - diluted (in dollars per share)	$ 0.02	$ (0.25)	$ 0.06	$ (0.95)
Weighted average common shares outstanding - basic (in shares)	45,013,784	45,013,784	45,013,784	45,013,784
Weighted average common shares outstanding - diluted (in shares)	46,085,650	45,013,784	46,077,196	45,013,784
Restaurant sales
Revenues:
Total revenues	$ 155,082	$ 98,353	$ 432,136	$ 229,546
Franchise revenues
Revenues:
Total revenues	$ 2,359	$ 1,396	$ 6,437	$ 3,449

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning Balance (in shares) at Dec. 29, 2019		0	45,013,784
Beginning Balance at Dec. 29, 2019	$ 329,797	$ 0	$ 450	$ 382,598	$ (53,251)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share issuance (in shares)		266,667
Share issuance	40,000	$ 3		39,997
Net income	(42,563)				(42,563)
Stock-based compensation	571			571
Ending Balance (in shares) at Sep. 27, 2020		266,667	45,013,784
Ending Balance at Sep. 27, 2020	327,805	$ 3	$ 450	423,166	(95,814)
Beginning Balance (in shares) at Jun. 28, 2020		0	45,013,784
Beginning Balance at Jun. 28, 2020	298,754	$ 0	$ 450	382,977	(84,673)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share issuance (in shares)		266,667
Share issuance	40,000	$ 3		39,997
Net income	(11,141)				(11,141)
Stock-based compensation	192			192
Ending Balance (in shares) at Sep. 27, 2020		266,667	45,013,784
Ending Balance at Sep. 27, 2020	327,805	$ 3	$ 450	423,166	(95,814)
Beginning Balance (in shares) at Dec. 27, 2020		266,667	45,013,784
Beginning Balance at Dec. 27, 2020	320,866	$ 3	$ 450	423,345	(102,932)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,546				2,546
Stock-based compensation	746			746
Ending Balance (in shares) at Sep. 26, 2021		266,667	45,013,784
Ending Balance at Sep. 26, 2021	324,158	$ 3	$ 450	424,091	(100,386)
Beginning Balance (in shares) at Jun. 27, 2021		266,667	45,013,784
Beginning Balance at Jun. 27, 2021	322,945	$ 3	$ 450	423,661	(101,169)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	783				783
Stock-based compensation	430			430
Ending Balance (in shares) at Sep. 26, 2021		266,667	45,013,784
Ending Balance at Sep. 26, 2021	$ 324,158	$ 3	$ 450	$ 424,091	$ (100,386)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2021	Sep. 27, 2020
Cash flows from operating activities:
Net income (loss)	$ 2,546	$ (42,563)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	23,965	22,877
Amortization of debt discount and deferred issuance costs	958	901
Non-cash operating lease costs	9,582	8,757
Deferred income taxes	2,526	(16,112)
Impairments and loss on disposal of assets	261	282
Stock-based compensation	746	571
Changes in assets and liabilities:
Accounts receivable	1,014	3,438
Inventory	(558)	53
Prepaid expenses	(814)	291
Deferred offering costs	(2,454)	1,307
Other assets, current and long-term	(639)	(517)
Accounts payable	2,757	768
Accrued liabilities	8,406	(2,346)
Accrued compensation and deferred payroll taxes, current and long-term	4,399	(3,188)
Deferred revenues, current and long-term	(1,714)	(4,069)
Operating lease liabilities	(6,716)	9,157
Net cash provided by (used in) operating activities	44,265	(20,393)
Cash flows from investing activities:
Capital expenditures	(27,065)	(22,179)
Purchase of intangible assets	(359)	(149)
Net cash used in investing activities	(27,424)	(22,328)
Cash flows from financing activities:
Proceeds from preferred stock issuance	0	40,000
Proceeds from issuance of long-term debt	0	54,600
Repayments of long-term debt	(2,210)	(3,210)
Proceeds from borrowings on revolving credit facility	0	22,000
Repayments of borrowings on revolving credit facility	0	(39,000)
Payment of deferred offering costs	(1,255)	0
Finance lease payments	(371)	(223)
Net cash (used in) provided by financing activities	(3,836)	74,167
Net increase in cash and cash equivalents and restricted cash	13,005	31,446
Cash and cash equivalents and restricted cash, Beginning of period	39,097	11,121
Cash and cash equivalents and restricted cash, End of period	52,102	42,567
Supplemental cash flow information:
Cash paid for interest	14,763	14,606
Cash paid for income taxes, net of refunds	55	155
Supplemental disclosures of non-cash investing and financing activities:
Interest converted to long-term debt	3,062	566
Leased assets obtained in exchange for new operating lease liabilities	23,391	14,313
Leased assets obtained in exchange for new finance lease liabilities	185	248
Remeasurements of operating lease assets and lease liabilities	(2,396)	(3,355)
Terminations of operating lease liabilities	0	(705)
Remeasurements of finance lease assets and lease liabilities	9	164
Change in liabilities from acquisition of property, fixtures and equipment	$ (1,153)	$ (3,036)

Nature of Business and Organiza

Nature of Business and Organization	9 Months Ended
	Sep. 26, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Organization	Nature of Business and Organization First Watch Restaurant Group, Inc. (collectively with its wholly-owned subsidiaries, “the Company” or “Management”) operates and franchises restaurants in 28 states operating under the “First Watch” trade name which are focused on made-to-order breakfast, brunch and lunch. As of September 26, 2021 and December 27, 2020, the Company operated 337 company-owned restaurants and 321 company-owned restaurants, respectively, and had 91 franchise-owned restaurants and 88 franchise-owned restaurants, respectively. Initial Public Offering On September 20, 2021, the Company’s board of directors and its stockholders approved an amendment to the Company’s Certificate of Incorporation. Such amendment (i) effected a 11.838-for-1 stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratio of the preferred stock and (ii) authorized an increase to the number of shares of common stock of the Company to 300,000,000 and an increase to the number of shares of preferred stock to 10,000,000. The par value of the Company’s common and preferred stock was not adjusted in connection with the stock split. All common share and per share amounts for all periods presented in the accompanying unaudited interim consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this stock split. On September 30, 2021, the Company’s registration statement on Form S-1 related to its initial public offering (“IPO”) was declared effective and the Company’s common stock began trading on the Nasdaq Global Select Market on October 1, 2021. On October 5, 2021, the Company completed its IPO, in which the Company sold 10,877,850 shares of common stock at the initial public offering price of $18.00 per share. The shares sold included th e underwriters’ full exercise of their option to purchase up to an additional 1,418,850 shares of common stock at the initial public offering price of $18.00 per share. All of the Company ’ s outstanding shares of preferred stock were adjusted in connection with the aforementioned stock split and were automatically converted into 3,156,812 shares of common stock immediately prior to and in connection with the consummation of the IPO. On October 5, 2021, the Company received aggregate net proceeds of $182.1 million after deducting underwriting discounts and commissions of $13.7 million. The aggregate net proceeds received were used to repay $182.1 million of borrowings outstanding under the Company ’ s senior credit facilities, which are comprised of the Initial Term Loan Facility, Initial Delayed Draw Term Loan Facility, First Amendment Delayed Draw Term Facility, Second Amendment Delayed Draw Term Facility and Revolving Credit Facility (collectively, “Senior Credit Facilities”). On October 6, 2021, the Company entered into a new credit agreement that provides for (i) a $100 million term loan A facility and (ii) a $75 million revolving credit facility (See Note 13, Subsequent Events

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 26, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The Company reports financial information on a 52- or 53-week fiscal year ending on the last Sunday of each calendar year. Our fiscal quarters are comprised of 13 weeks each, except for fiscal years consisting of 53 weeks for which the fourth quarter will consist of 14 weeks, and end on the 13th Sunday of each quarter (14th Sunday of the fourth quarter, when applicable). The quarters ended September 26, 2021 and September 27, 2020 were both 13-week periods. The accompanying unaudited interim consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments necessary for the fair statement of the consolidated financial statements for the interim periods presented. The results of operations for interim periods are not necessarily indicative of the results to be expected for other interim periods or the entire fiscal year. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 27, 2020 included in the Company’s final prospectus dated September 30, 2021 filed with the SEC in accordance with Rule 424(b) of the Securities Act on October 4, 2021 (the “IPO Prospectus”). Use of Estimates The preparation of the unaudited interim consolidated financial statements in accordance with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates and such differences could be material. Deferred Offering Costs Certain legal, professional accounting, and other third-party fees that are directly associated with in-process equity financings are capitalized as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in equity as a reduction of additional paid-in capital generated as a result of the offering. As of September 26, 2021, there was a total of $3.7 million of deferred offering costs related to the Company’s IPO. There were no deferred offering costs as of December 27, 2020. Newly Issued Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, ” (“ASU 2020-04”). The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 may be adopted beginning March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. Management is currently evaluating its contracts and the optional expedients and exceptions provided by the new standard.

Revenues

Revenues	9 Months Ended
	Sep. 26, 2021
Revenue from Contract with Customer [Abstract]
Revenues	Revenues The following tables include a detail of contract liabilities with customers: (in thousands) SEPTEMBER 26, 2021 DECEMBER 27, 2020 Deferred revenues: Deferred gift card revenue $ 2,012 $ 4,024 Deferred franchise fee revenue - current 239 249 Total current deferred revenues $ 2,251 $ 4,273 Other long-term liabilities: Deferred franchise fee revenue - non-current $ 2,334 $ 2,025 Changes in deferred gift card contract liabilities were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Deferred gift card revenue: Balance, beginning of period $ 2,657 $ 3,993 $ 4,024 $ 6,902 Gift card sales 1,003 577 4,088 2,365 Gift card redemptions (1,483) (1,437) (5,543) (5,455) Gift card breakage (165) (131) (557) (810) Balance, end of period $ 2,012 $ 3,002 $ 2,012 $ 3,002 Changes in deferred franchise fee contract liabilities were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Deferred franchise fee revenue: Balance, beginning of period $ 2,232 $ 2,266 $ 2,274 $ 2,456 Cash received 400 75 482 113 Franchise revenues recognized (59) (54) (183) (282) Balance, end of period $ 2,573 $ 2,287 $ 2,573 $ 2,287 Revenues recognized disaggregated by type were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Restaurant sales: In-restaurant dining sales $ 123,311 $ 68,853 $ 327,147 $ 182,814 Third-party delivery sales 15,232 15,141 52,584 19,947 Take-out sales 16,539 14,359 52,405 26,785 Total restaurant sales $ 155,082 $ 98,353 $ 432,136 $ 229,546 Franchise revenues: Royalty and system fund contributions $ 2,300 $ 1,342 $ 6,254 $ 3,167 Initial fees 59 54 183 282 Total franchise revenues $ 2,359 $ 1,396 $ 6,437 $ 3,449 Total revenues $ 157,441 $ 99,749 $ 438,573 $ 232,995

COVID-19 Charges

COVID-19 Charges	9 Months Ended
	Sep. 26, 2021
Unusual or Infrequent Items, or Both [Abstract]
COVID-19 Charges	COVID-19 Charges Following is a summary of the charges recorded in connection with the COVID-19 pandemic during the thirteen and thirty-nine weeks ended September 26, 2021 and September 27, 2020: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) Consolidated Statements of SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Inventory obsolescence and spoilage Food and beverage costs $ — $ 156 $ — $ 556 Compensation for employees upon furlough and return from furlough Labor and other related expenses — 38 3 1,085 Health insurance premiums paid for furloughed employees, net of employee retention credits Labor and other related expenses — 68 — 852 Other expenses Other restaurant operating expenses — 323 16 802 Compensation for employees upon furlough and return from furlough General and administrative expenses — (56) 128 277 Other expenses General and administrative expenses — 434 64 1,273 Total COVID-19 charges $ — $ 963 $ 211 $ 4,845

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 26, 2021
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable consisted of the following: (in thousands) SEPTEMBER 26, 2021 DECEMBER 27, 2020 Receivables from third-party delivery providers $ 984 $ 1,742 Receivables from franchisees 876 591 Rebate receivables 635 514 Receivables related to gift card sales 318 1,028 Other receivables 88 40 Total accounts receivable $ 2,901 $ 3,915

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 26, 2021
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) SEPTEMBER 26, 2021 DECEMBER 27, 2020 Sales tax $ 3,277 $ 2,159 Construction liabilities 3,148 4,301 Legal services and contingencies 1,602 126 Self-insurance and general liability reserves 1,386 1,297 Utilities 1,284 1,016 Property tax 1,213 424 Credit card fees 929 520 Accounting and consulting 718 251 Common area maintenance 411 700 Contingent rent 593 234 Other 2,720 2,454 Total accrued liabilities $ 17,281 $ 13,482

Debt

Debt	9 Months Ended
	Sep. 26, 2021
Debt Disclosure [Abstract]
Debt	Debt Long-term debt, net consisted of the following: SEPTEMBER 26, 2021 DECEMBER 27, 2020 (in thousands) Balance Interest rate (1) Balance Interest rate (1) Senior Credit Facilities: Initial Term Loan Repayment in quarterly installments of 0.25%; outstanding balance paid at maturity $ 150,649 6.75 % $ 150,214 8.00 % Initial Delayed Draw Term Loan Repayment in quarterly installments of 0.25%; outstanding balance paid at maturity 49,138 6.75 % 48,992 8.00 % First Amendment Delayed Draw Term Facility Repayment in quarterly installments of 0.25%; outstanding balance paid at maturity 49,609 6.75 % 49,458 8.00 % Second Amendment Delayed Draw Term Facility Repayment in quarterly installments of 0.25%; outstanding balance paid at maturity 39,491 6.75 % 39,369 8.00 % Revolving credit facility — — Finance lease liabilities 2,120 2,300 Financing obligations 3,050 3,050 Less: Unamortized debt discount and deferred issuance costs (2,771) (3,393) Total debt, net 291,286 289,990 Less: Current portion of long-term debt (3,626) (3,590) Long-term debt, net $ 287,660 $ 286,400 _____________ (1) Borrowings under the Senior Credit Facilities bore interest, at the Company’s option, at a rate per annum equal to either (a) (i) the greater of an adjusted London Interbank Offered Rate (the “Adjusted Eurocurrency Rate”) and 1.00%, plus (ii) the applicable Adjusted Eurocurrency Rate spread, or (b) (i) the alternate base rate (“ABR”) plus (ii) the applicable ABR spread. ABR is a floating rate per annum equal to the highest of (i) the federal funds effective rate plus 0.50%, (ii) to the extent ascertainable, the London interbank offered rate for a 1-month interest period on such day plus 1.00%, (iii) the rate of interest last quoted by The Wall Street Journal as the “prime rate” in the U.S. and (iv) 1.00%. Borrowings under the Senior Credit Facilities also bore an additional interest pursuant to the Fourth Amendment that is paid in kind. The applicable rate for the additional interest ranges from 0.25% to 1.5% of the outstanding balances, depending on the leverage ratio. The estimated fair value of the outstanding debt, excluding finance lease obligations and financing obligations, is classified as Level 3 in the fair value hierarchy and was estimated using discounted cash flow models using market yield and yield volatility. The estimated fair value of the outstanding debt, excluding finance lease liabilities and financing obligations, is as follows: (in thousands) SEPTEMBER 26, 2021 DECEMBER 27, 2020 Initial term loan $ 150,652 $ 150,239 Initial delayed draw term loan 49,139 49,000 First amendment delayed draw term facility 49,610 49,466 Second amendment delayed draw term facility 39,491 39,376 Total $ 288,892 $ 288,081 The Company was in compliance with all financial covenants as of September 26, 2021 and December 27, 2020.

Leases

Leases	9 Months Ended
	Sep. 26, 2021
Leases [Abstract]
Leases	Leases The following table includes a detail of lease assets and liabilities: (in thousands) Consolidated Balance Sheets Classification SEPTEMBER 26, 2021 DECEMBER 27, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 318,931 $ 307,558 Finance lease assets Property, fixtures and equipment, net 2,001 2,212 Total lease assets $ 320,932 $ 309,770 Operating lease liabilities (1) - current Current portion of operating lease liabilities 39,633 40,111 Operating lease liabilities - non-current Operating lease liabilities 322,516 307,802 Finance lease liabilities - current Current portion of long-term debt 679 645 Finance lease liabilities - non-current Long-term debt, net 1,441 1,655 Total lease liabilities $ 364,269 $ 350,213 _____________ (1) Excludes all variable lease expense. The components of lease expense were as follows: (in thousands) Consolidated Statements of Operations and Comprehensive Income (Loss) Classification THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Operating lease expense Occupancy expenses $ 11,377 $ 10,505 $ 33,263 $ 31,144 Variable lease expense Occupancy expenses 3,202 2,677 9,294 7,254 Finance lease expense: Amortization of leased assets Depreciation and amortization 139 125 405 373 Interest on lease liabilities Interest expense 43 48 133 137 Total lease expense (1) $ 14,761 $ 13,355 $ 43,095 $ 38,908 _____________ (1) Includes conting ent rent of $0.3 million and $0.7 million during the thirteen and thirty-nine weeks ended September 26, 2021, respectively. There was no contingent rent during the thirteen and thirty-nine weeks ended September 27, 2020. Supplemental cash flow information related to leases was as follows: THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 30,388 $ 13,255 Operating cash flows - finance leases $ 133 $ 137 Financing cash flows - finance leases $ 371 $ 223 Supplemental information related to leases was as follows: THIRTY-NINE WEEKS ENDED SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Weighted-average remaining lease term (in years) Operating leases 15.6 16.5 Finance leases 3.7 4.6 Weighted-average discount rate (1) Operating leases 9.1 % 9.1 % Finance leases 8.0 % 8.1 % _____________ (1) Based on the Company’s incremental borrowing rate. As of September 26, 2021, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) Operating Leases Finance Leases Fiscal year 2021 $ 10,944 $ 204 2022 40,879 667 2023 43,637 667 2024 44,081 667 2025 44,153 212 Thereafter 523,322 32 Total future minimum lease payments (1) 707,016 2,449 Less: imputed interest (344,867) (329) Total present value of lease liabilities $ 362,149 $ 2,120 _____________ (1) Excludes approxim ately $28.0 million of exec uted operating leases that have not commenced as of September 26, 2021.
Leases	Leases The following table includes a detail of lease assets and liabilities: (in thousands) Consolidated Balance Sheets Classification SEPTEMBER 26, 2021 DECEMBER 27, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 318,931 $ 307,558 Finance lease assets Property, fixtures and equipment, net 2,001 2,212 Total lease assets $ 320,932 $ 309,770 Operating lease liabilities (1) - current Current portion of operating lease liabilities 39,633 40,111 Operating lease liabilities - non-current Operating lease liabilities 322,516 307,802 Finance lease liabilities - current Current portion of long-term debt 679 645 Finance lease liabilities - non-current Long-term debt, net 1,441 1,655 Total lease liabilities $ 364,269 $ 350,213 _____________ (1) Excludes all variable lease expense. The components of lease expense were as follows: (in thousands) Consolidated Statements of Operations and Comprehensive Income (Loss) Classification THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Operating lease expense Occupancy expenses $ 11,377 $ 10,505 $ 33,263 $ 31,144 Variable lease expense Occupancy expenses 3,202 2,677 9,294 7,254 Finance lease expense: Amortization of leased assets Depreciation and amortization 139 125 405 373 Interest on lease liabilities Interest expense 43 48 133 137 Total lease expense (1) $ 14,761 $ 13,355 $ 43,095 $ 38,908 _____________ (1) Includes conting ent rent of $0.3 million and $0.7 million during the thirteen and thirty-nine weeks ended September 26, 2021, respectively. There was no contingent rent during the thirteen and thirty-nine weeks ended September 27, 2020. Supplemental cash flow information related to leases was as follows: THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 30,388 $ 13,255 Operating cash flows - finance leases $ 133 $ 137 Financing cash flows - finance leases $ 371 $ 223 Supplemental information related to leases was as follows: THIRTY-NINE WEEKS ENDED SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Weighted-average remaining lease term (in years) Operating leases 15.6 16.5 Finance leases 3.7 4.6 Weighted-average discount rate (1) Operating leases 9.1 % 9.1 % Finance leases 8.0 % 8.1 % _____________ (1) Based on the Company’s incremental borrowing rate. As of September 26, 2021, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) Operating Leases Finance Leases Fiscal year 2021 $ 10,944 $ 204 2022 40,879 667 2023 43,637 667 2024 44,081 667 2025 44,153 212 Thereafter 523,322 32 Total future minimum lease payments (1) 707,016 2,449 Less: imputed interest (344,867) (329) Total present value of lease liabilities $ 362,149 $ 2,120 _____________ (1) Excludes approxim ately $28.0 million of exec uted operating leases that have not commenced as of September 26, 2021.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 26, 2021
Share-based Payment Arrangement [Abstract]
Stock Based Compensation	Stock-Based Compensation The 2017 Omnibus Equity Incentive Plan (the “2017 Equity Plan”) authorizes stock-based option awards to be granted for up to 6,138,240 shares of common stock. The awards granted under the 2017 Equity Plan consist of non-qualified stock options that generally vest based over a five-year requisite service period from the date of grant, as well as upon the occurrence of certain events and market conditions. Stock-based compensation expense associated with awards granted under the 2017 Equity Plan was $0.4 million and $0.7 million during the thirteen and thirty-nine weeks ended September 26, 2021, respectively. Stock-based compensation expense was $0.2 million and $0.6 million during the thirteen and thirty-nine weeks ended September 27, 2020, respectively. Modification of Stock-Based Awards On August 31, 2021, the Company’s board of directors amended the 2017 Equity Plan such that the performance-based option awards that convert into time-based options upon an initial public offering no longer vest over a period of three years, but instead one-third (1/3rd) on each of the first two anniversaries of an initial public offering and one-third (1/3rd) on the 273rd day following the second anniversary of an initial public offering. This was accounted for as a modification for accounting purposes, resulting in a new fair value for all the performance-based option awards as of the modification date. On September 19, 2021, the Company’s board of directors modified performance-based option awards that contained a market condition granted under the 2017 Equity Plan, such that the vesting terms for one such tranche of the performance-based option awards that contain a market condition were amended to waive the market condition. Accordingly, upon an initial public offering, such tranche will convert into time-based option awards and will vest one-third (1/3rd) on each of the first two anniversaries of an initial public offering and one-third (1/3rd) on the 273rd day following the second anniversary of an initial public offering. This was accounted for as a modification for accounting purposes resulting in a new fair value for such tranche as of the modification date. On September 19, 2021, the Company’s board of directors modified the terms of performance-based option awards granted under the 2017 Equity Plan to the Company’s Chairman Emeritus. The modification accelerated the vesting period of the performance-based option awards that convert into time-based option awards upon an initial public offering such that they no longer vest one-third (1/3rd) on each of the first two anniversaries of an initial public offering and one-third (1/3rd) on the 273rd day following the second anniversary of an initial public offering, but instead will vest on August 1, 2022. Additionally, the exercise period of these time-based and performance-based vested awards was modified such that any vested option may be exercised at any time prior to the 10th anniversary of the original grant date. These actions were accounted for as modifications for accounting purposes and resulted in an increase of $0.3 million to the fair value of these awards. Unrecognized stock-based compensation expense As of September 26, 2021, the amount of stock-based compensation expense not yet recognized on time-based option awards was approximately $0.7 million, and will be recognized over a weighted-average period of approximately 1.3 years. After consideration of the above modifications to the performance-based option awards, the amount of stock-based compensation expense not yet recognized on performance-based option awards as of September 26, 2021 was approximately $20.5 million and will be expensed over a weighted-average period of approximately 2.8 years. A total of approximately $3.8 million of stock compensation expense will be recognized in the fourth fiscal quarter of 2021 related to non-vested performance-based option awards for which the market condition was not satisfied upon the Company’s IPO. 2021 Equity Incentive Plan On September 19, 2021, the Company’s board of directors adopted, and on September 19, 2021 its stockholders approved, the First Watch Restaurant Group, Inc. 2021 Equity Incentive Plan (the “2021 Equity Plan”), which became effective on September 30, 2021. The 2021 Equity Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, and stock-based awards. The number of shares of common stock to be reserved for issuance under the 2021 Equity Plan is 4,034,072 common shares (“Share Reserve”). The number of shares of common stock that may be issued under the 2021 Equity Plan will automatically increase on the first day of each fiscal year, commencing on January 1, 2023 and continuing for each fiscal year until, and including, the fiscal year ending on (and including) January 1, 2032, equal to the least of (i) 2% of the total number of shares of common stock actually issued and outstanding on the last day of the preceding fiscal year, (ii) a number of shares of common stock determined by the board of directors; and (iii) the number of shares of common stock equal to the Share Reserve. If any award granted under the 2021 Equity Plan is cancelled, expired, forfeited, or surrendered without consideration or otherwise terminated without delivery of the shares to the participant, then such unissued shares will be returned to the 2021 Equity Plan and be available for future awards under the 2021 Equity Plan. Shares that are withheld from any award in payment of the exercise, base or purchase price or taxes related to such an award, not issued or delivered as a result of the net settlement of any award, or repurchased by the Company on the open market with the proceeds of a stock option will be deemed to have been delivered under the 2021 Equity Plan and will not be returned to the 2021 Equity Plan nor be available for future awards under the 2021 Equity Plan.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 26, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Income (Loss) before income tax expense (benefit) $ 1,317 $ (14,403) $ 5,190 $ (58,587) Income tax expense (benefit) $ 534 $ (3,262) $ 2,644 $ (16,024) Effective tax rate 40.5 % 22.6 % 50.9 % 27.4 % The effective income tax rate for the thirteen weeks ended September 26, 2021 was 40.5% as compared to 22.6% for the thirteen weeks ended September 27, 2020 and the effective income tax rate for the thirty-nine weeks ended September 26, 2021 was 50.9% as compared to 27.4% for the thirty-nine weeks ended September 27, 2020. The change in the effective income tax rates was primarily due to (i) the change in the valuation allowance for federal and state deferred tax assets, (ii) the benefit of tax credits for FICA taxes on certain employees’ tips and (iii) the forecasted 2021 pre-tax book income as compared to the forecasted 2020 pre-tax book loss. The Company has a blended federal and state statutory rate of approximately 25.0%. The effective income tax rates for the thirteen and thirty-nine weeks ended September 26, 2021 and September 27, 2020 were different from the blended federal and state statutory rate primarily due to the change in the valuation allowance for federal and state deferred tax assets and the benefit of tax credits for FICA taxes on certain employees’ tips. Pursuant to the merger agreement through which the Company was acquired by funds affiliated with or managed by Advent International Corporation in August 2017, the Company is required to pay the previous stockholders an amount equal to tax savings to the extent federal and state loss carryforwards and general business credits that had been accumulated from operations prior to August 2017 are utilized to reduce tax liabilities. This requirement lapses with respect to any tax year, or portion thereof, beginning after December 31, 2024, or if a change in control event occurs. A contingent consideration liability of $1.2 million was initially recognized, of which approximately $0.2 million was paid in the fiscal year ended December 29, 2019. As a result of revaluing the contingent consideration liability using actual results and forecasted projections, an additional $0.7 million for expected payments to be made to the previous stockholders was recognized within Transaction expenses (income), net on the consolidated statements of operations and comprehensive income (loss) during the thirty-nine weeks ended September 26, 2021. As of September 26, 2021 the contingent consideration liability was $1.0 million, of which $0.1 million was recorded within Accrued liabilities and $0.9 million was recorded within Other long-term liabilities on the consolidated balance sheets. As of December 27, 2020, the contingent consideration liability was $0.3 million, of which $0.1 million was recorded within Accrued liabilities and $0.2 million was recorded within Other long-term liabilities on the consolidated balance sheets.

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 26, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings The Company is subject to legal proceedings, claims and liabilities that arise in the ordinary course of business. In the event any litigation losses become probable and estimable, the Company will recognize any anticipated losses. In the opinion of Management, the amount of the liability with respect to these matters was not material as of September 26, 2021.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	9 Months Ended
	Sep. 26, 2021
Earnings Per Share [Abstract]
Net Income (Loss) Per Common Share	Net Income (Loss) Per Common Share The following table sets forth the computations of basic and diluted net income (loss) per common share: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands, except share and per share data) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Numerator: Net income (loss) $ 783 $ (11,141) $ 2,546 $ (42,563) Denominator: Weighted average common shares outstanding - basic 45,013,784 45,013,784 45,013,784 45,013,784 Weighted average common shares outstanding - diluted 46,085,650 45,013,784 46,077,196 45,013,784 Net income (loss) per common share - basic $ 0.02 $ (0.25) $ 0.06 $ (0.95) Net income (loss) per common share - diluted $ 0.02 $ (0.25) $ 0.06 $ (0.95) Time-based option awards outstanding not included in diluted net income (loss) per common share as their effect is anti-dilutive 90,045 2,616,724 90,045 2,616,724 Diluted net income (loss) per common share is calculated by adjusting the weighted average shares outstanding for the theoretical effect of potential common shares that would be issued for preferred stock and stock option awards outstanding and unvested as of the respective periods using the two-class method and treasury method, respectively. All performance-based option awards have been excluded from the diluted net income (loss) per common share calculation for all periods presented as the performance condition was not considered probable of being met. During the thirteen and thirty-nine weeks ended September 27, 2020, all time-based option awards outstanding were excluded from the calculation of diluted net loss per common share because of their anti-dilutive impact.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 26, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 6, 2021, FWR Holding Corporation (“FWR”), an indirect subsidiary of the Company entered into a credit agreement (the “FWR Credit Agreement”) with Bank of America, N.A., and other parties specified therein. The FWR Credit Agreement provides for (i) a $100 million term loan A facility (the “New Term Facility”) and (ii) a $75 million revolving credit facility (the “New Revolving Credit Facility” and, together with the New Term Facility, collectively, the “New Facilities”). The loans under the New Facilities mature on October 6, 2026. Substantially all of FWR’s assets, including fixed assets and intangibles, are pledged as collateral, subject to customary exceptions, under the New Facilities. The New Facilities contain covenants that provide for, among other things, maintenance of certain financial ratios and restrictions on (i) payment of dividends or other distributions; (ii) granting liens; (iii) making investments, including acquisitions, loans, and advances; (iv) incurring additional indebtedness; (v) selling, transferring, or otherwise disposing of assets; (vi) liquidating or dissolving subsidiaries of the Company; (vii) materially altering the Company’s business; (viii) engaging in transactions with affiliates; and (ix) entering into burdensome agreements, each subject to certain exceptions. The proceeds from the IPO, the proceeds of the loans under the New Facilities and cash on hand were used to repay in full the outstanding indebtedness of the Senior Credit Facilities. This repayment was accounted for as a debt extinguishment for accounting purposes and a loss on debt extinguishment of approximately $2.4 million will be recorded in the fourth fiscal quarter of 2021. In October 2021, the Company entered into a financing agreement for approximately $3.0 million that bears interest of 2.41% and is payable in monthly installments of $0.3 million through August 30, 2022.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 26, 2021
Accounting Policies [Abstract]
Fiscal Period, Policy	The Company reports financial information on a 52- or 53-week fiscal year ending on the last Sunday of each calendar year. Our fiscal quarters are comprised of 13 weeks each, except for fiscal years consisting of 53 weeks for which the fourth quarter will consist of 14 weeks, and end on the 13th Sunday of each quarter (14th Sunday of the fourth quarter, when applicable). The quarters ended September 26, 2021 and September 27, 2020 were both 13-week periods.
Basis of Presentation	The accompanying unaudited interim consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).
Consolidation, Policy	Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments necessary for the fair statement of the consolidated financial statements for the interim periods presented. The results of operations for interim periods are not necessarily indicative of the results to be expected for other interim periods or the entire fiscal year. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 27, 2020 included in the Company’s final prospectus dated September 30, 2021 filed with the SEC in accordance with Rule 424(b) of the Securities Act on October 4, 2021 (the “IPO Prospectus”).
Use of Estimates	Use of Estimates The preparation of the unaudited interim consolidated financial statements in accordance with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates and such differences could be material.
Deferred Offering Costs	Deferred Offering CostsCertain legal, professional accounting, and other third-party fees that are directly associated with in-process equity financings are capitalized as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in equity as a reduction of additional paid-in capital generated as a result of the offering.
Newly Issued Accounting Standards Not Yet Adopted	Newly Issued Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, ” (“ASU 2020-04”). The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 may be adopted beginning March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. Management is currently evaluating its contracts and the optional expedients and exceptions provided by the new standard.

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 26, 2021
Revenue from Contract with Customer [Abstract]
Contract with Customer, Contract Asset, Contract Liability, and Receivable	The following tables include a detail of contract liabilities with customers: (in thousands) SEPTEMBER 26, 2021 DECEMBER 27, 2020 Deferred revenues: Deferred gift card revenue $ 2,012 $ 4,024 Deferred franchise fee revenue - current 239 249 Total current deferred revenues $ 2,251 $ 4,273 Other long-term liabilities: Deferred franchise fee revenue - non-current $ 2,334 $ 2,025 Changes in deferred gift card contract liabilities were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Deferred gift card revenue: Balance, beginning of period $ 2,657 $ 3,993 $ 4,024 $ 6,902 Gift card sales 1,003 577 4,088 2,365 Gift card redemptions (1,483) (1,437) (5,543) (5,455) Gift card breakage (165) (131) (557) (810) Balance, end of period $ 2,012 $ 3,002 $ 2,012 $ 3,002 Changes in deferred franchise fee contract liabilities were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Deferred franchise fee revenue: Balance, beginning of period $ 2,232 $ 2,266 $ 2,274 $ 2,456 Cash received 400 75 482 113 Franchise revenues recognized (59) (54) (183) (282) Balance, end of period $ 2,573 $ 2,287 $ 2,573 $ 2,287
Disaggregation of Revenue	Revenues recognized disaggregated by type were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Restaurant sales: In-restaurant dining sales $ 123,311 $ 68,853 $ 327,147 $ 182,814 Third-party delivery sales 15,232 15,141 52,584 19,947 Take-out sales 16,539 14,359 52,405 26,785 Total restaurant sales $ 155,082 $ 98,353 $ 432,136 $ 229,546 Franchise revenues: Royalty and system fund contributions $ 2,300 $ 1,342 $ 6,254 $ 3,167 Initial fees 59 54 183 282 Total franchise revenues $ 2,359 $ 1,396 $ 6,437 $ 3,449 Total revenues $ 157,441 $ 99,749 $ 438,573 $ 232,995

COVID-19 Charges (Tables)

COVID-19 Charges (Tables)	9 Months Ended
	Sep. 26, 2021
Unusual or Infrequent Items, or Both [Abstract]
Summary of the charges recorded in connection with the COVID-19 pandemic	Following is a summary of the charges recorded in connection with the COVID-19 pandemic during the thirteen and thirty-nine weeks ended September 26, 2021 and September 27, 2020: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) Consolidated Statements of SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Inventory obsolescence and spoilage Food and beverage costs $ — $ 156 $ — $ 556 Compensation for employees upon furlough and return from furlough Labor and other related expenses — 38 3 1,085 Health insurance premiums paid for furloughed employees, net of employee retention credits Labor and other related expenses — 68 — 852 Other expenses Other restaurant operating expenses — 323 16 802 Compensation for employees upon furlough and return from furlough General and administrative expenses — (56) 128 277 Other expenses General and administrative expenses — 434 64 1,273 Total COVID-19 charges $ — $ 963 $ 211 $ 4,845

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 26, 2021
Receivables [Abstract]
Accounts Receivable	Accounts receivable consisted of the following: (in thousands) SEPTEMBER 26, 2021 DECEMBER 27, 2020 Receivables from third-party delivery providers $ 984 $ 1,742 Receivables from franchisees 876 591 Rebate receivables 635 514 Receivables related to gift card sales 318 1,028 Other receivables 88 40 Total accounts receivable $ 2,901 $ 3,915

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 26, 2021
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following: (in thousands) SEPTEMBER 26, 2021 DECEMBER 27, 2020 Sales tax $ 3,277 $ 2,159 Construction liabilities 3,148 4,301 Legal services and contingencies 1,602 126 Self-insurance and general liability reserves 1,386 1,297 Utilities 1,284 1,016 Property tax 1,213 424 Credit card fees 929 520 Accounting and consulting 718 251 Common area maintenance 411 700 Contingent rent 593 234 Other 2,720 2,454 Total accrued liabilities $ 17,281 $ 13,482

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 26, 2021
Debt Disclosure [Abstract]
Long-Term Debt, Net	Long-term debt, net consisted of the following: SEPTEMBER 26, 2021 DECEMBER 27, 2020 (in thousands) Balance Interest rate (1) Balance Interest rate (1) Senior Credit Facilities: Initial Term Loan Repayment in quarterly installments of 0.25%; outstanding balance paid at maturity $ 150,649 6.75 % $ 150,214 8.00 % Initial Delayed Draw Term Loan Repayment in quarterly installments of 0.25%; outstanding balance paid at maturity 49,138 6.75 % 48,992 8.00 % First Amendment Delayed Draw Term Facility Repayment in quarterly installments of 0.25%; outstanding balance paid at maturity 49,609 6.75 % 49,458 8.00 % Second Amendment Delayed Draw Term Facility Repayment in quarterly installments of 0.25%; outstanding balance paid at maturity 39,491 6.75 % 39,369 8.00 % Revolving credit facility — — Finance lease liabilities 2,120 2,300 Financing obligations 3,050 3,050 Less: Unamortized debt discount and deferred issuance costs (2,771) (3,393) Total debt, net 291,286 289,990 Less: Current portion of long-term debt (3,626) (3,590) Long-term debt, net $ 287,660 $ 286,400 _____________ (1) Borrowings under the Senior Credit Facilities bore interest, at the Company’s option, at a rate per annum equal to either (a) (i) the greater of an adjusted London Interbank Offered Rate (the “Adjusted Eurocurrency Rate”) and 1.00%, plus (ii) the applicable Adjusted Eurocurrency Rate spread, or (b) (i) the alternate base rate (“ABR”) plus (ii) the applicable ABR spread. ABR is a floating rate per annum equal to the highest of (i) the federal funds effective rate plus 0.50%, (ii) to the extent ascertainable, the London interbank offered rate for a 1-month interest period on such day plus 1.00%, (iii) the rate of interest last quoted by The Wall Street Journal as the “prime rate” in the U.S. and (iv) 1.00%. Borrowings under the Senior Credit Facilities also bore an additional interest pursuant to the Fourth Amendment that is paid in kind. The applicable rate for the additional interest ranges from 0.25% to 1.5% of the outstanding balances, depending on the leverage ratio.
Schedule of Estimated Fair Value of the Outstanding Debt, Excluding Finance Lease Liabilities and Financing Obligations	The estimated fair value of the outstanding debt, excluding finance lease liabilities and financing obligations, is as follows: (in thousands) SEPTEMBER 26, 2021 DECEMBER 27, 2020 Initial term loan $ 150,652 $ 150,239 Initial delayed draw term loan 49,139 49,000 First amendment delayed draw term facility 49,610 49,466 Second amendment delayed draw term facility 39,491 39,376 Total $ 288,892 $ 288,081

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 26, 2021
Leases [Abstract]
Supplemental Information Related To Leases	The following table includes a detail of lease assets and liabilities: (in thousands) Consolidated Balance Sheets Classification SEPTEMBER 26, 2021 DECEMBER 27, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 318,931 $ 307,558 Finance lease assets Property, fixtures and equipment, net 2,001 2,212 Total lease assets $ 320,932 $ 309,770 Operating lease liabilities (1) - current Current portion of operating lease liabilities 39,633 40,111 Operating lease liabilities - non-current Operating lease liabilities 322,516 307,802 Finance lease liabilities - current Current portion of long-term debt 679 645 Finance lease liabilities - non-current Long-term debt, net 1,441 1,655 Total lease liabilities $ 364,269 $ 350,213 _____________ (1) Excludes all variable lease expense. Supplemental information related to leases was as follows: THIRTY-NINE WEEKS ENDED SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Weighted-average remaining lease term (in years) Operating leases 15.6 16.5 Finance leases 3.7 4.6 Weighted-average discount rate (1) Operating leases 9.1 % 9.1 % Finance leases 8.0 % 8.1 % _____________ (1) Based on the Company’s incremental borrowing rate.
Supplemental Cash Flow Information	The components of lease expense were as follows: (in thousands) Consolidated Statements of Operations and Comprehensive Income (Loss) Classification THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Operating lease expense Occupancy expenses $ 11,377 $ 10,505 $ 33,263 $ 31,144 Variable lease expense Occupancy expenses 3,202 2,677 9,294 7,254 Finance lease expense: Amortization of leased assets Depreciation and amortization 139 125 405 373 Interest on lease liabilities Interest expense 43 48 133 137 Total lease expense (1) $ 14,761 $ 13,355 $ 43,095 $ 38,908 _____________ (1) Includes conting ent rent of $0.3 million and $0.7 million during the thirteen and thirty-nine weeks ended September 26, 2021, respectively. There was no contingent rent during the thirteen and thirty-nine weeks ended September 27, 2020. Supplemental cash flow information related to leases was as follows: THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 30,388 $ 13,255 Operating cash flows - finance leases $ 133 $ 137 Financing cash flows - finance leases $ 371 $ 223
Operating Lease Maturity	As of September 26, 2021, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) Operating Leases Finance Leases Fiscal year 2021 $ 10,944 $ 204 2022 40,879 667 2023 43,637 667 2024 44,081 667 2025 44,153 212 Thereafter 523,322 32 Total future minimum lease payments (1) 707,016 2,449 Less: imputed interest (344,867) (329) Total present value of lease liabilities $ 362,149 $ 2,120 _____________ (1) Excludes approxim ately $28.0 million of exec
Finance Lease Maturity	As of September 26, 2021, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) Operating Leases Finance Leases Fiscal year 2021 $ 10,944 $ 204 2022 40,879 667 2023 43,637 667 2024 44,081 667 2025 44,153 212 Thereafter 523,322 32 Total future minimum lease payments (1) 707,016 2,449 Less: imputed interest (344,867) (329) Total present value of lease liabilities $ 362,149 $ 2,120 _____________ (1) Excludes approxim ately $28.0 million of exec

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 26, 2021
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) and Effective Income Tax Rate	THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Income (Loss) before income tax expense (benefit) $ 1,317 $ (14,403) $ 5,190 $ (58,587) Income tax expense (benefit) $ 534 $ (3,262) $ 2,644 $ (16,024) Effective tax rate 40.5 % 22.6 % 50.9 % 27.4 %

Net Income (Loss) Per Common _2

Net Income (Loss) Per Common Share (Tables)	9 Months Ended
	Sep. 26, 2021
Earnings Per Share [Abstract]
Computations of Basic and Diluted Net Income (Loss) per Common Share	The following table sets forth the computations of basic and diluted net income (loss) per common share: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands, except share and per share data) SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 SEPTEMBER 26, 2021 SEPTEMBER 27, 2020 Numerator: Net income (loss) $ 783 $ (11,141) $ 2,546 $ (42,563) Denominator: Weighted average common shares outstanding - basic 45,013,784 45,013,784 45,013,784 45,013,784 Weighted average common shares outstanding - diluted 46,085,650 45,013,784 46,077,196 45,013,784 Net income (loss) per common share - basic $ 0.02 $ (0.25) $ 0.06 $ (0.95) Net income (loss) per common share - diluted $ 0.02 $ (0.25) $ 0.06 $ (0.95) Time-based option awards outstanding not included in diluted net income (loss) per common share as their effect is anti-dilutive 90,045 2,616,724 90,045 2,616,724

Nature of Business and Organi_2

Nature of Business and Organization - Additional Information (Details)	Sep. 26, 2021staterestaurant	Dec. 27, 2020restaurant
Franchisor Disclosure [Line Items]
Number of states where company operates and franchises restaurants | state	28
Company-owned restaurants
Franchisor Disclosure [Line Items]
Number of Restaurants	337	321
Franchise-owned restaurants
Franchisor Disclosure [Line Items]
Number of Restaurants	91	88

Nature of Business and Organi_3

Nature of Business and Organization - Initial Public Offering (Details)	Oct. 05, 2021USD ($)$ / sharesshares	Sep. 20, 2021shares	Sep. 26, 2021USD ($)shares	Oct. 06, 2021USD ($)	Dec. 27, 2020shares
Class of Stock [Line Items]
Stock split, conversion ratio		11.838
Common stock authorized (in shares)		300,000,000	300,000,000		300,000,000
Preferred stock, shares authorized (in shares)		10,000,000	266,667		266,667
Senior Credit Facilities | Line of Credit
Class of Stock [Line Items]
Repayments of long-term debt | $			$ 182,100,000
New Facilities | Line of Credit | Subsequent Event | Revolving Credit Facility
Class of Stock [Line Items]
Borrowing capacity | $				$ 75,000,000
Common Stock | Subsequent Event
Class of Stock [Line Items]
Shares issued on conversion (in shares)	3,156,812
IPO | Subsequent Event
Class of Stock [Line Items]
Shares of common stock sold (in shares)	10,877,850
Initial public offering price (in dollars per share) | $ / shares	$ 18
Aggregate net proceeds from IPO | $	$ 182,100,000
Underwriting discounts and commissions | $	$ 13,700,000
Over-Allotment Option | Subsequent Event
Class of Stock [Line Items]
Shares of common stock sold (in shares)	1,418,850

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 26, 2021	Dec. 27, 2020
Accounting Policies [Abstract]
Deferred offering costs	$ 3,709,000	$ 0

Revenues - Detail of Contract L

Revenues - Detail of Contract Liabilities (Details) - USD ($) $ in Thousands	Sep. 26, 2021	Dec. 27, 2020
Revenue from Contract with Customer [Abstract]
Deferred gift card revenue	$ 2,012	$ 4,024
Deferred franchise fee revenue - current	239	249
Total current deferred revenues	2,251	4,273
Deferred franchise fee revenue - non-current	$ 2,334	$ 2,025

Revenues - Change in Contract L

Revenues - Change in Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2021	Sep. 27, 2020	Sep. 26, 2021	Sep. 27, 2020
Changes in contract liabilities, deferred gift card revenue
Balance, beginning of period	$ 2,657	$ 3,993	$ 4,024	$ 6,902
Gift card sales	1,003	577	4,088	2,365
Gift card redemptions	(1,483)	(1,437)	(5,543)	(5,455)
Gift card breakage	(165)	(131)	(557)	(810)
Balance, end of period	2,012	3,002	2,012	3,002
Changes in contract liabilities, deferred franchise fee revenue
Balance, beginning of period	2,232	2,266	2,274	2,456
Cash received	400	75	482	113
Franchise revenues recognized	(59)	(54)	(183)	(282)
Balance, end of period	$ 2,573	$ 2,287	$ 2,573	$ 2,287

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2021	Sep. 27, 2020	Sep. 26, 2021	Sep. 27, 2020
Disaggregation of Revenue [Line Items]
Total revenues	$ 157,441	$ 99,749	$ 438,573	$ 232,995
Restaurant sales
Disaggregation of Revenue [Line Items]
Total revenues	155,082	98,353	432,136	229,546
In-restaurant dining sales
Disaggregation of Revenue [Line Items]
Total revenues	123,311	68,853	327,147	182,814
Third-party delivery sales
Disaggregation of Revenue [Line Items]
Total revenues	15,232	15,141	52,584	19,947
Take-out sales
Disaggregation of Revenue [Line Items]
Total revenues	16,539	14,359	52,405	26,785
Franchise revenues
Disaggregation of Revenue [Line Items]
Total revenues	2,359	1,396	6,437	3,449
Royalty and system fund contributions
Disaggregation of Revenue [Line Items]
Total revenues	2,300	1,342	6,254	3,167
Initial fees
Disaggregation of Revenue [Line Items]
Total revenues	$ 59	$ 54	$ 183	$ 282

COVID-19 Charges (Details)

COVID-19 Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2021	Sep. 27, 2020	Sep. 26, 2021	Sep. 27, 2020
Unusual or Infrequent Item, or Both [Line Items]
Total COVID-19 charges	$ 0	$ 963	$ 211	$ 4,845
Cost of sales | Inventory obsolescence and spoilage
Unusual or Infrequent Item, or Both [Line Items]
Total COVID-19 charges	0	156	0	556
Cost of sales | Compensation for employees upon furlough and return from furlough
Unusual or Infrequent Item, or Both [Line Items]
Total COVID-19 charges	0	38	3	1,085
Cost of sales | Health insurance premiums paid for furloughed employees, net of employee retention credits
Unusual or Infrequent Item, or Both [Line Items]
Total COVID-19 charges	0	68	0	852
Cost of sales | Other expenses
Unusual or Infrequent Item, or Both [Line Items]
Total COVID-19 charges	0	323	16	802
General and administrative expenses | Compensation for employees upon furlough and return from furlough
Unusual or Infrequent Item, or Both [Line Items]
Total COVID-19 charges	0	(56)	128	277
General and administrative expenses | Other expenses
Unusual or Infrequent Item, or Both [Line Items]
Total COVID-19 charges	$ 0	$ 434	$ 64	$ 1,273

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 26, 2021	Dec. 27, 2020
Receivables [Abstract]
Receivables from third-party delivery providers	$ 984	$ 1,742
Receivables from franchisees	876	591
Rebate receivables	635	514
Receivables related to gift card sales	318	1,028
Other receivables	88	40
Total accounts receivable	$ 2,901	$ 3,915

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 26, 2021	Dec. 27, 2020
Payables and Accruals [Abstract]
Sales tax	$ 3,277	$ 2,159
Construction liabilities	3,148	4,301
Legal services and contingencies	1,602	126
Self-insurance and general liability reserves	1,386	1,297
Utilities	1,284	1,016
Property tax	1,213	424
Credit card fees	929	520
Accounting and consulting	718	251
Common area maintenance	411	700
Contingent rent	593	234
Other	2,720	2,454
Total accrued liabilities	$ 17,281	$ 13,482

Debt - Long-Term Debt, Net (Det

Debt - Long-Term Debt, Net (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2021	Dec. 27, 2020
Debt Instrument [Line Items]
Finance lease liabilities	$ 2,120	$ 2,300
Less: Unamortized debt discount and deferred issuance costs	(2,771)	(3,393)
Total debt, net	291,286	289,990
Less: Current portion of long-term debt	(3,626)	(3,590)
Long-term debt, net	$ 287,660	286,400
Senior Credit Facilities | Line of Credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable rate, floor	1.00%
Variable rate used to determine alternate base rate	1.00%
Alternate base rate, floor	1.00%
Senior Credit Facilities | Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate
Debt Instrument [Line Items]
Variable rate used to determine alternate base rate	0.50%
Senior Credit Facilities | Line of Credit | Initial Term Loan
Debt Instrument [Line Items]
Quarterly amortization payment percentage	0.25%
Long-term debt	$ 150,649	$ 150,214
Interest rate	6.75%	8.00%
Senior Credit Facilities | Line of Credit | Initial Delayed Draw Term Loan
Debt Instrument [Line Items]
Quarterly amortization payment percentage	0.25%
Long-term debt	$ 49,138	$ 48,992
Interest rate	6.75%	8.00%
Senior Credit Facilities | Line of Credit | First Amendment Delayed Draw
Debt Instrument [Line Items]
Quarterly amortization payment percentage	0.25%
Long-term debt	$ 49,609	$ 49,458
Interest rate	6.75%	8.00%
Senior Credit Facilities | Line of Credit | Second Amendment Delayed Draw
Debt Instrument [Line Items]
Quarterly amortization payment percentage	0.25%
Long-term debt	$ 39,491	$ 39,369
Interest rate	6.75%	8.00%
Senior Credit Facilities | Line of Credit | Minimum
Debt Instrument [Line Items]
Applicable rate for additional interest, paid-in-kind	0.25%
Senior Credit Facilities | Line of Credit | Maximum
Debt Instrument [Line Items]
Applicable rate for additional interest, paid-in-kind	1.50%
Existing Credit Facility | Line of Credit
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 0
Financing obligations | Other Debt
Debt Instrument [Line Items]
Long-term debt	$ 3,050	$ 3,050

Debt - Estimated Fair Value of

Debt - Estimated Fair Value of Outstanding Debt (Details) - Senior Credit Facilities - Fair Value, Inputs, Level 3 - Line of Credit - USD ($) $ in Thousands	Sep. 26, 2021	Dec. 27, 2020
Debt Instrument [Line Items]
Estimated fair value of outstanding debt, excluding finance lease liabilities and financing obligations	$ 288,892	$ 288,081
Initial Term Loan
Debt Instrument [Line Items]
Estimated fair value of outstanding debt, excluding finance lease liabilities and financing obligations	150,652	150,239
Initial Delayed Draw Term Loan
Debt Instrument [Line Items]
Estimated fair value of outstanding debt, excluding finance lease liabilities and financing obligations	49,139	49,000
First Amendment Delayed Draw
Debt Instrument [Line Items]
Estimated fair value of outstanding debt, excluding finance lease liabilities and financing obligations	49,610	49,466
Second Amendment Delayed Draw
Debt Instrument [Line Items]
Estimated fair value of outstanding debt, excluding finance lease liabilities and financing obligations	$ 39,491	$ 39,376

Leases - Lease Assets and Lease

Leases - Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 26, 2021	Dec. 27, 2020
Leases [Abstract]
Operating lease right-of-use assets	$ 318,931	$ 307,558
Finance lease assets	2,001	2,212
Total lease assets	320,932	309,770
Operating lease liabilities - current	39,633	40,111
Operating lease liabilities - non-current	322,516	307,802
Finance lease liabilities - current	679	645
Finance lease liabilities - non-current	1,441	1,655
Total lease liabilities	$ 364,269	$ 350,213
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, fixtures and equipment, net of accumulated depreciation of $107,994 and $86,250, respectively	Property, fixtures and equipment, net of accumulated depreciation of $107,994 and $86,250, respectively
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of long-term debt	Current portion of long-term debt
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term debt, net	Long-term debt, net

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2021	Sep. 27, 2020	Sep. 26, 2021	Sep. 27, 2020
Leases [Abstract]
Operating lease expense	$ 11,377	$ 10,505	$ 33,263	$ 31,144
Variable lease expense	3,202	2,677	9,294	7,254
Amortization of leased assets	139	125	405	373
Interest on lease liabilities	43	48	133	137
Total lease expense	14,761	13,355	43,095	38,908
Contingent rent	$ 300	$ 0	$ 700	$ 0

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2021	Sep. 27, 2020
Leases [Abstract]
Operating cash flows - operating leases	$ 30,388	$ 13,255
Operating cash flows - finance leases	133	137
Financing cash flows - finance leases	$ 371	$ 223

Leases - Supplemental Informati

Leases - Supplemental Information Related To Leases (Details)	Sep. 26, 2021	Dec. 27, 2020	Sep. 27, 2020
Weighted-average remaining lease term (in years)
Operating leases	15 years 7 months 6 days		16 years 6 months
Finance leases	3 years 8 months 12 days		4 years 7 months 6 days
Weighted-average discount rate
Operating leases	9.10%	9.10%
Finance leases	8.00%	8.10%

Leases - Operating And Finance

Leases - Operating And Finance Lease Maturity (Details) - USD ($) $ in Thousands	Sep. 26, 2021	Dec. 27, 2020
Operating Leases
2021	$ 10,944
2022	40,879
2023	43,637
2024	44,081
2025	44,153
Thereafter	523,322
Total future minimum lease payments	707,016
Less: imputed interest	(344,867)
Total present value of lease liabilities	362,149
Finance Leases
2021	204
2022	667
2023	667
2024	667
2025	212
Thereafter	32
Total future minimum lease payments	2,449
Less: imputed interest	(329)
Total present value of lease liabilities	2,120	$ 2,300
Executed operating leases that have not commenced	$ 28,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) $ in Millions	Sep. 19, 2021USD ($)anniversaryshares	Aug. 31, 2021anniversary	Dec. 26, 2021USD ($)	Sep. 26, 2021USD ($)shares	Sep. 27, 2020USD ($)	Sep. 26, 2021USD ($)shares	Sep. 27, 2020USD ($)
Time-based option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense not yet recognized				$ 0.7		$ 0.7
Weighted-average period of recognition						1 year 3 months 18 days
Performance-based option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense not yet recognized				$ 20.5		$ 20.5
Weighted-average period of recognition						2 years 9 months 18 days
Performance-based option awards | Forecast
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 3.8
2017 Options Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for grant (in shares) | shares				6,138,240		6,138,240
Requisite service period						5 years
Stock-based compensation expense				$ 0.4	$ 0.2	$ 0.7	$ 0.6
2017 Options Plan | Time-based option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Number of anniversaries | anniversary	2	2
2017 Options Plan | Time-based option awards | Chairman Emeritus
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of anniversaries | anniversary	2
Increase in fair value of awards	$ 0.3
2017 Options Plan | Time-based option awards | Vesting on first anniversary of initial public offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting amount, percentage	33.33%	33.33%
2017 Options Plan | Time-based option awards | Vesting on first anniversary of initial public offering | Chairman Emeritus
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting amount, percentage	33.33%
2017 Options Plan | Time-based option awards | Vesting on second anniversary of initial public offer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting amount, percentage	33.33%	33.33%
2017 Options Plan | Time-based option awards | Vesting on second anniversary of initial public offer | Chairman Emeritus
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting amount, percentage	33.33%
2017 Options Plan | Time-based option awards | Vesting on 273rd day following the second anniversary of initial public offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting amount, percentage	33.34%	33.34%
2017 Options Plan | Time-based option awards | Vesting on 273rd day following the second anniversary of initial public offering | Chairman Emeritus
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting amount, percentage	33.34%
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance (in shares) | shares	4,034,072
Annual increase to number of shares that may be issued, percentage of total number of shares of common stock actually issued and outstanding on last day of preceding fiscal year	2.00%

Income Taxes - Components of In

Income Taxes - Components of Income Tax Expense (Benefit) and Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2021	Sep. 27, 2020	Sep. 26, 2021	Sep. 27, 2020
Income Tax Disclosure [Abstract]
Income (Loss) before income tax expense (benefit)	$ 1,317	$ (14,403)	$ 5,190	$ (58,587)
Income tax expense (benefit)	$ 534	$ (3,262)	$ 2,644	$ (16,024)
Effective tax rate	40.50%	22.60%	50.90%	27.40%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 26, 2021	Sep. 27, 2020	Sep. 26, 2021	Sep. 27, 2020	Dec. 29, 2019	Dec. 27, 2020	Aug. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	40.50%	22.60%	50.90%	27.40%
Blended federal and state statutory rate			25.00%
Contingent consideration liability	$ 1		$ 1			$ 0.3	$ 1.2
Payment contingent consideration liability					$ 0.2
Additional expected payments			0.7
Contingent consideration liability, current	0.1		0.1			0.1
Contingent consideration liability, noncurrent	$ 0.9		$ 0.9			$ 0.2

Net Income (Loss) Per Common _3

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2021	Sep. 27, 2020	Sep. 26, 2021	Sep. 27, 2020
Numerator
Net income (loss)	$ 783	$ (11,141)	$ 2,546	$ (42,563)
Net income (loss)	$ 783	$ (11,141)	$ 2,546	$ (42,563)
Denominator
Weighted average common shares outstanding - basic (in shares)	45,013,784	45,013,784	45,013,784	45,013,784
Weighted average common shares outstanding - diluted (in shares)	46,085,650	45,013,784	46,077,196	45,013,784
Net income (loss) per common share - basic (in dollars per share)	$ 0.02	$ (0.25)	$ 0.06	$ (0.95)
Net income (loss) per common share - diluted (in dollars per share)	$ 0.02	$ (0.25)	$ 0.06	$ (0.95)
Time-based option awards outstanding not included in diluted net income (loss) per common share as their effect is anti-dilutive (in shares)	90,045	2,616,724	90,045	2,616,724

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - USD ($)	1 Months Ended	3 Months Ended
	Oct. 31, 2021	Dec. 26, 2021	Oct. 06, 2021
Subsequent Event [Line Items]
Loss on debt extinguishment		$ 2,400,000
Financing Agreement | Loans Payable
Subsequent Event [Line Items]
Short-term debt	$ 3,000,000
Interest rate	2.41%
Amount of monthly installment	$ 300,000
Secured Debt | New Facilities | Line of Credit
Subsequent Event [Line Items]
Borrowing capacity			$ 100,000,000
Revolving Credit Facility | New Facilities | Line of Credit
Subsequent Event [Line Items]
Borrowing capacity			$ 75,000,000