Cover
Cover - shares | 3 Months Ended | |
Mar. 26, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 26, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40866 | |
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, $0.01 par value | |
Trading Symbol | FWRG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,364,409 | |
Entity Central Index Key | 0001789940 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 54,416 | $ 49,672 |
Restricted cash | 251 | 251 |
Accounts receivable | 3,828 | 6,164 |
Inventory | 4,406 | 5,028 |
Prepaid expenses | 6,673 | 5,800 |
Other current assets | 585 | 373 |
Total current assets | 70,159 | 67,288 |
Goodwill | 345,219 | 345,219 |
Intangible assets, net | 143,025 | 143,151 |
Operating lease right-of-use assets | 355,500 | 352,373 |
Property, fixtures and equipment, net of accumulated depreciation of $154,303 and $145,720, respectively | 199,889 | 195,117 |
Other long-term assets | 1,260 | 1,298 |
Total assets | 1,115,052 | 1,104,446 |
Current liabilities: | ||
Accounts payable | 5,223 | 7,590 |
Accrued liabilities | 24,874 | 22,729 |
Accrued compensation and deferred payroll taxes | 11,378 | 17,899 |
Deferred revenues | 3,225 | 5,193 |
Current portion of operating lease liabilities | 40,474 | 38,936 |
Current portion of long-term debt | 5,627 | 6,257 |
Note payable | 860 | 1,376 |
Total current liabilities | 91,661 | 99,980 |
Operating lease liabilities | 370,728 | 366,113 |
Long-term debt, net | 93,410 | 94,668 |
Deferred income taxes | 21,395 | 17,166 |
Other long-term liabilities | 3,301 | 3,384 |
Total liabilities | 580,495 | 581,311 |
Commitments and contingencies (Note 10) | ||
Equity: | ||
Preferred stock; $0.01 par value; 10,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock; $0.01 par value; 300,000,000 shares authorized; 59,284,590 and 59,211,019 shares issued and outstanding at March 26, 2023 and December 25, 2022, respectively | 593 | 592 |
Additional paid-in capital | 622,736 | 620,675 |
Accumulated deficit | (88,772) | (98,132) |
Total equity | 534,557 | 523,135 |
Total liabilities and equity | $ 1,115,052 | $ 1,104,446 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 154,303 | $ 145,720 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
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) | 59,284,590 | 59,211,019 |
Common stock, shares outstanding (in shares) | 59,284,590 | 59,211,019 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Revenues: | ||
Total revenues | $ 211,406 | $ 173,112 |
Restaurant operating expenses (exclusive of depreciation and amortization shown below): | ||
Food and beverage costs | 46,627 | 39,403 |
Labor and other related expenses | 68,573 | 55,142 |
Other restaurant operating expenses | 31,696 | 27,317 |
Occupancy expenses | 15,934 | 14,383 |
Pre-opening expenses | 1,036 | 985 |
General and administrative expenses | 22,705 | 19,563 |
Depreciation and amortization | 9,117 | 8,223 |
Impairments and loss on disposal of assets | 134 | 79 |
Transaction expenses, net | 253 | 257 |
Total operating costs and expenses | 196,075 | 165,352 |
Income from operations | 15,331 | 7,760 |
Interest expense | (1,907) | (1,006) |
Other income, net | 494 | 163 |
Income before income taxes | 13,918 | 6,917 |
Income tax expense | (4,558) | (2,277) |
Net income and total comprehensive income | $ 9,360 | $ 4,640 |
Net income per common share - basic (in dollars per share) | $ 0.16 | $ 0.08 |
Net income per common share - diluted (in dollars per share) | $ 0.15 | $ 0.08 |
Weighted average common shares outstanding - basic (in shares) | 59,243,430 | 59,048,446 |
Weighted average common shares outstanding - diluted (in shares) | 60,597,729 | 59,983,150 |
Restaurant sales | ||
Revenues: | ||
Total revenues | $ 207,968 | $ 170,669 |
Franchise revenues | ||
Revenues: | ||
Total revenues | $ 3,438 | $ 2,443 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance (in shares) at Dec. 26, 2021 | 59,048,446 | |||
Beginning balance at Dec. 26, 2021 | $ 504,429 | $ 590 | $ 608,878 | $ (105,039) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 4,640 | 4,640 | ||
Stock-based compensation | 2,294 | 2,294 | ||
Ending balance (in shares) at Mar. 27, 2022 | 59,048,446 | |||
Ending balance at Mar. 27, 2022 | 511,363 | $ 590 | 611,172 | (100,399) |
Beginning balance (in shares) at Dec. 25, 2022 | 59,211,019 | |||
Beginning balance at Dec. 25, 2022 | 523,135 | $ 592 | 620,675 | (98,132) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 9,360 | 9,360 | ||
Common stock issued upon exercise of stock options, net (in shares) | 73,571 | |||
Common stock issued under stock-based compensation plans, net | 565 | $ 1 | 564 | |
Stock-based compensation | 1,497 | 1,497 | ||
Ending balance (in shares) at Mar. 26, 2023 | 59,284,590 | |||
Ending balance at Mar. 26, 2023 | $ 534,557 | $ 593 | $ 622,736 | $ (88,772) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 9,360 | $ 4,640 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,117 | 8,223 |
Stock-based compensation | 1,497 | 2,294 |
Non-cash operating lease costs | 4,357 | 3,898 |
Deferred income taxes | 4,229 | 2,046 |
Non-cash portion of gain on lease modifications | (116) | (62) |
Amortization of debt discount and deferred issuance costs | 110 | 112 |
Impairments and loss on disposal of assets | 134 | 79 |
Gain on insurance proceeds | (154) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 2,336 | 1,423 |
Inventory | 622 | 297 |
Prepaid expenses | (873) | (639) |
Other assets, current and long-term | (174) | 13 |
Accounts payable | (2,367) | (3,095) |
Accrued liabilities | 2,832 | 2,074 |
Accrued compensation and deferred payroll taxes, current and long-term | (6,521) | (9,230) |
Deferred revenues, current and long-term | (2,031) | (1,602) |
Operating lease liabilities | (1,215) | (2,482) |
Net cash provided by operating activities | 21,143 | 7,989 |
Cash flows from investing activities: | ||
Insurance proceeds | 154 | 0 |
Capital expenditures | (14,519) | (11,357) |
Purchase of intangible assets | (76) | (101) |
Net cash used in investing activities | (14,441) | (11,458) |
Cash flows from financing activities: | ||
Repayments of note payable | (516) | (1,045) |
Proceeds from exercise of stock options, net of employee taxes paid | 565 | 0 |
Repayments of long-term debt, including finance lease liabilities | (2,007) | (751) |
Contingent consideration payment | 0 | (78) |
Net cash used in financing activities | (1,958) | (1,874) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 4,744 | (5,343) |
Cash and cash equivalents and restricted cash, beginning of period | 49,923 | 52,115 |
Cash and cash equivalents and restricted cash, end of period | 54,667 | 46,772 |
Supplemental cash flow information: | ||
Cash paid for interest | 1,658 | 952 |
Cash paid for income taxes, net of refunds | 67 | 0 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Leased assets obtained in exchange for new operating lease liabilities | 8,323 | 10,330 |
Leased assets obtained in exchange for new finance lease liabilities | 9 | 27 |
Remeasurements and terminations of operating lease assets and lease liabilities | (955) | (380) |
Remeasurements and terminations of finance lease assets and lease liabilities | 0 | (91) |
Decrease in liabilities from acquisition of property, fixtures and equipment | $ (707) | $ (350) |
Nature of Business and Organiza
Nature of Business and Organization | 3 Months Ended |
Mar. 26, 2023 | |
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”) is a Delaware holding company. The Company operates and franchises restaurants in 29 sta |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 26, 2023 | |
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. The quarters ended March 26, 2023 and March 27, 2022 were 13-week periods. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K as of and for the year ended December 25, 2022 (“2022 Form 10-K”). 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 included in the 2022 Form 10-K and include all adjustments necessary for the fair statement of the consolidated financial statements for the quarterly periods presented. The results of operations for quarterly periods are not necessarily indicative of the results to be expected for other quarterly periods or the entire fiscal year. 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. Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The carrying amounts of the Company ’ s financial instruments, including cash equivalents, accounts receivable, accounts payable, accrued expenses, note payable and other current liabilities approximate their fair values due to their short-term maturities. Summary of Recently Issued Accounting Pronouncements Recent accounting guidance not discussed herein is not applicable, did not have, or is not expected to have a material impact to the Company. |
Revenues
Revenues | 3 Months Ended |
Mar. 26, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following tables include a detail of liabilities from contracts with customers: (in thousands) MARCH 26, 2023 DECEMBER 25, 2022 Deferred revenues: Deferred gift card revenue $ 2,909 $ 4,897 Deferred franchise fee revenue - current 316 296 Total current deferred revenues $ 3,225 $ 5,193 Other long-term liabilities: Deferred franchise fee revenue - non-current $ 2,409 $ 2,472 Changes in deferred gift card contract liabilities were as follows: THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Deferred gift card revenue: Balance, beginning of period $ 4,897 $ 4,410 Gift card sales 1,534 1,216 Gift card redemptions (3,204) (2,590) Gift card breakage (318) (284) Balance, end of period $ 2,909 $ 2,752 Changes in deferred franchise fee contract liabilities were as follows: THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Deferred franchise fee revenue: Balance, beginning of period $ 2,768 $ 2,536 Cash received 34 120 Franchise revenues recognized (77) (64) Balance, end of period $ 2,725 $ 2,592 Revenues recognized disaggregated by type were as follows: THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Restaurant sales: In-restaurant dining sales $ 169,229 $ 132,892 Third-party delivery sales 22,314 21,026 Take-out sales 16,425 16,751 Total restaurant sales $ 207,968 $ 170,669 Franchise revenues: Royalty and system fund contributions $ 3,361 $ 2,379 Initial fees 77 64 Total franchise revenues $ 3,438 $ 2,443 Total revenues $ 211,406 $ 173,112 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 26, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consisted of the following: (in thousands) MARCH 26, 2023 DECEMBER 25, 2022 Receivables from third-party delivery providers $ 1,339 $ 974 Receivables from franchisees 1,388 1,076 Receivables from vendors 494 920 Receivables related to gift card sales 351 1,565 Other receivables 256 1,629 Total accounts receivable $ 3,828 $ 6,164 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 26, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) MARCH 26, 2023 DECEMBER 25, 2022 Construction liabilities $ 6,201 $ 6,908 Sales tax 4,675 3,791 Self-insurance and general liability reserves 2,413 1,529 Utilities 1,631 1,468 Interest payable 1,645 1,506 Credit card fees 1,260 1,043 Property tax 935 951 Contingent rent 679 811 Common area maintenance 654 680 Other 4,781 4,042 Total accrued liabilities $ 24,874 $ 22,729 |
Debt
Debt | 3 Months Ended |
Mar. 26, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt, net consisted of the following: MARCH 26, 2023 DECEMBER 25, 2022 (in thousands) Balance Interest Rate Balance Interest Rate Term Facility $ 96,250 6.64% $ 98,125 5.89% Finance lease liabilities 1,310 1,433 Financing obligation 3,050 3,050 Less: Unamortized debt discount and deferred issuance costs (1,573) (1,683) Total Debt, net 99,037 100,925 Less: Current portion of long-term debt (5,627) (6,257) Long-term debt, net $ 93,410 $ 94,668 Credit Facilities FWR Holding Corporation (“FWR”), a subsidiary of the Company, is the borrower under the credit agreement dated as of October 6, 2021 (“Credit Agreement”), which provides for (i) a $100.0 million term loan A facility (the “Term Facility”) and (ii) a $75.0 million revolving credit facility (the “Revolving Credit Facility” and, together with the Term Facility, collectively, the “Credit Facilities”). The Revolving Credit Facility was undrawn at March 26, 2023 and December 25, 2022. The Credit Facilities mature on October 6, 2026. On February 24, 2023, the Company entered into the Amendment No. 1 to the Credit Agreement (the “Amendment”) to replace LIBO Rate (“LIBOR”) with a secured overnight financing rate (“SOFR”). All outstanding borrowings under the Credit Agreement continued to bear interest at LIBOR until March 27, 2023. Effective March 27, 2023, borrowings under the Credit Facilities bear interest, at the option of FWR at either (i) the alternate base rate plus a margin of between 125 and 200 basis points depending on the total rent adjusted net leverage ratio of FWR and its restricted subsidiaries on a consolidated basis (the “Total Rent Adjusted Net Leverage Ratio”) or (ii) SOFR plus a credit spread adjustment of 10 basis points plus a margin of between 225 and 300 basis points depending on the Total Rent Adjusted Net Leverage Ratio. Fair Value of Debt |
Leases
Leases | 3 Months Ended |
Mar. 26, 2023 | |
Leases [Abstract] | |
Leases | Leases The following table includes a detail of lease assets and liabilities: (in thousands) Consolidated Balance Sheets Classification MARCH 26, 2023 DECEMBER 25, 2022 Operating lease right-of-use assets Operating lease right-of-use assets $ 355,500 $ 352,373 Finance lease assets Property, fixtures and equipment, net 1,215 1,332 Total lease assets $ 356,715 $ 353,705 Operating lease liabilities (1) - current Current portion of operating lease liabilities 40,474 38,936 Operating lease liabilities - non-current Operating lease liabilities 370,728 366,113 Finance lease liabilities - current Current portion of long-term debt 627 632 Finance lease liabilities - non-current Long-term debt, net 683 801 Total lease liabilities $ 412,512 $ 406,482 _____________ (1) Excludes all variable lease expense. The components of lease expense are as follows: (in thousands) Consolidated Statements of Operations and Comprehensive Income Classification THIRTEEN WEEKS ENDED MARCH 26, 2023 MARCH 27, 2022 Operating lease expense Other restaurant operating expenses $ 12,969 $ 12,046 Variable lease expense Food and beverage costs 3,880 3,399 Finance lease expense: Amortization of leased assets Depreciation and amortization 127 135 Interest on lease liabilities Interest expense 26 37 Total lease expense (1) $ 17,002 $ 15,617 _____________ (1) Includes contingent rent of $0.5 million and $0.4 million during the thirteen weeks ended March 26, 2023 and March 27, 2022, respectively. Supplemental cash flow information related to leases was as follows: THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 9,827 $ 10,630 Operating cash flows - finance leases $ 26 $ 37 Financing cash flows - finance leases $ 132 $ 126 Supplemental information related to leases was as follows: THIRTEEN WEEKS ENDED MARCH 26, 2023 MARCH 27, 2022 Weighted-average remaining lease term (in years) Operating leases 14.4 15.2 Finance leases 2.7 3.3 Weighted-average discount rate (1) Operating leases 8.6 % 8.9 % Finance leases 7.6 % 7.8 % ____________ (1) Based on the Company’s incremental borrowing rate. As of March 26, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) Operating Leases Finance Leases Fiscal year 2023 $ 31,208 $ 497 2024 48,752 607 2025 50,834 236 2026 50,632 46 2027 50,033 35 Thereafter 514,274 22 Total future minimum lease payments (1) 745,733 1,443 Less: imputed interest (334,531) (133) Total present value of lease liabilities $ 411,202 $ 1,310 _____________ (1) Excludes approxim ately $52.1 million of exec uted operating leases that have not commenced as of March 26, 2023. |
Leases | Leases The following table includes a detail of lease assets and liabilities: (in thousands) Consolidated Balance Sheets Classification MARCH 26, 2023 DECEMBER 25, 2022 Operating lease right-of-use assets Operating lease right-of-use assets $ 355,500 $ 352,373 Finance lease assets Property, fixtures and equipment, net 1,215 1,332 Total lease assets $ 356,715 $ 353,705 Operating lease liabilities (1) - current Current portion of operating lease liabilities 40,474 38,936 Operating lease liabilities - non-current Operating lease liabilities 370,728 366,113 Finance lease liabilities - current Current portion of long-term debt 627 632 Finance lease liabilities - non-current Long-term debt, net 683 801 Total lease liabilities $ 412,512 $ 406,482 _____________ (1) Excludes all variable lease expense. The components of lease expense are as follows: (in thousands) Consolidated Statements of Operations and Comprehensive Income Classification THIRTEEN WEEKS ENDED MARCH 26, 2023 MARCH 27, 2022 Operating lease expense Other restaurant operating expenses $ 12,969 $ 12,046 Variable lease expense Food and beverage costs 3,880 3,399 Finance lease expense: Amortization of leased assets Depreciation and amortization 127 135 Interest on lease liabilities Interest expense 26 37 Total lease expense (1) $ 17,002 $ 15,617 _____________ (1) Includes contingent rent of $0.5 million and $0.4 million during the thirteen weeks ended March 26, 2023 and March 27, 2022, respectively. Supplemental cash flow information related to leases was as follows: THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 9,827 $ 10,630 Operating cash flows - finance leases $ 26 $ 37 Financing cash flows - finance leases $ 132 $ 126 Supplemental information related to leases was as follows: THIRTEEN WEEKS ENDED MARCH 26, 2023 MARCH 27, 2022 Weighted-average remaining lease term (in years) Operating leases 14.4 15.2 Finance leases 2.7 3.3 Weighted-average discount rate (1) Operating leases 8.6 % 8.9 % Finance leases 7.6 % 7.8 % ____________ (1) Based on the Company’s incremental borrowing rate. As of March 26, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) Operating Leases Finance Leases Fiscal year 2023 $ 31,208 $ 497 2024 48,752 607 2025 50,834 236 2026 50,632 46 2027 50,033 35 Thereafter 514,274 22 Total future minimum lease payments (1) 745,733 1,443 Less: imputed interest (334,531) (133) Total present value of lease liabilities $ 411,202 $ 1,310 _____________ (1) Excludes approxim ately $52.1 million of exec uted operating leases that have not commenced as of March 26, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 26, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Option Awards There were no stock options granted during the thirteen weeks ended March 26, 2023. A summary of stock option activity for the Company’s stock-based compensation plans during the thirteen weeks ended March 26, 2023 is as follows: NUMBER OF OPTIONS WEIGHTED AVERAGE AGGREGATE INTRINSIC VALUE (in thousands) WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE (in years) Outstanding, December 25, 2022 5,115,674 $ 10.12 $ 20,981 6.1 Exercised (66,717) $ 8.45 $ 503 Forfeited (49,362) $ 12.22 Outstanding, March 26, 2023 4,999,595 $ 10.12 $ 26,181 5.8 Exercisable, March 26, 2023 3,076,284 $ 9.56 $ 17,819 5.2 The aggregate intrinsic value is based on the difference between the exercise price of the stock option and the closing price of the Company’s common stock on Nasdaq on the last trading day. A summary of the non-vested stock options for the Company’s stock-based compensation plans is as follows: NUMBER OF OPTIONS WEIGHTED AVERAGE GRANT DATE FAIR VALUE Nonvested, December 25, 2022 2,324,316 $ 7.31 Vested (351,643) $ 6.53 Forfeited (49,362) $ 5.19 Nonvested, March 26, 2023 1,923,311 $ 7.51 Restricted Stock Units During the thirteen weeks ended March 26, 2023, a total of 507,702 restricted stock units (“RSU”) were granted, which will vest ratably over a period of three years from grant date. A summary of the Company’s RSU activity during the thirteen weeks ended March 26, 2023 is as follows: RESTRICTED STOCK UNITS WEIGHTED AVERAGE GRANT DATE FAIR VALUE AGGREGATE INTRINSIC VALUE (in thousands) Outstanding, December 25, 2022 38,311 $ 14.36 $ 544 Granted 507,702 $ 15.52 Vested (6,854) $ 14.59 Outstanding, March 26, 2023 539,159 $ 15.45 $ 8,276 The aggregate intrinsic value is based on the closing price of the Company’s common stock on Nasdaq of $15.35 and $14.21 on March 24, 2023 and December 23, 2022, the last trading days for the periods, respectively. Stock-based compensation expense was $1.5 million and $2.3 million for the thirteen weeks ended March 26, 2023 and March 27, 2022, respectively. Unrecognized stock-based compensation expense As of March 26, 2023, the amount of stock-based compensation expense not yet recognized for stock option awards was approximately $7.9 million and will be recognized over a weighted-average period of approximately 1.3 years. The amount of stock-based compensation expense not yet recognized for RSUs was approximately $7.8 million and will be recognized over a weighted-average period of approximately 2.8 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 26, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Income before income taxes $ 13,918 $ 6,917 Income tax expense $ (4,558) $ (2,277) Effective income tax rate 32.7 % 32.9 % The effective income tax rate for the thirteen weeks ended March 26, 2023 was 32.7% as compared to 32.9% for the thirteen weeks ended March 27, 2022. 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 and (ii) the benefit of tax credits for FICA taxes on certain employees’ tips. The effective income tax rates for the thirteen weeks ended March 26, 2023 and March 27, 2022 were different than the blended federal and state statutory rate 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 impacts of executive stock-based compensation. The Company evaluates quarterly whether the resulting deferred tax assets are realizable given the Company’s history of losses. Based on the available evidence, the Company does not meet the more likely than not standard related to the realization of a portion of the deferred tax assets as of March 26, 2023. Accordingly, the Company has established a valuation allowance on the portion of deferred tax assets deemed not realizable, including state charitable contribution carryovers, various state loss carryforwards, and various federal tax credit carryforwards. The Company continues to monitor and evaluate the rationale for recording a valuation allowance for deferred tax assets. As the Company’s earnings increase and deferred tax assets are utilized, it is possible that a portion of the valuation allowance may no longer be needed. Release of any valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense in the period any release is recorded. The exact timing and amount of any release is subject to change based on the level of profitability the Company is able to achieve. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 26, 2023 | |
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. The amount of the ultimate liability with respect to these matters was not material as of March 26, 2023. In the event any litigation losses become probable and estimable, the Company will recognize any anticipated losses for the period during which such determination occurs. Unclaimed Property The Company is subject to unclaimed or abandoned property (escheat) laws which require it to turn over to state governmental authorities the property of others held by the Company that has been unclaimed for specified periods of time. Property subject to escheat laws generally relates to uncashed checks, trade accounts receivable credits and unredeemed gift card balances. During the first quarter of 2022, the Company received a letter from the Delaware Secretary of State inviting the Company to participate in the Delaware Secretary of State’s Abandoned or Unclaimed Property Voluntary Disclosure Agreement Program to avoid being sent an audit notice by the Delaware Department of Finance. On August 31, 2022, the Company was accepted into Delaware’s Voluntary Disclosure Agreement Program, entitling it to certain benefits and protections offered to participants in the program. The Company intends to work in good faith to complete a review of its books and records related to unclaimed or abandoned property during the periods required under the program. The Company will continue to examine its options regarding the escheat laws of Delaware including completing Delaware’s Voluntary Disclosure Agreement Program or proceeding to audit. Any potential loss, or range of loss, that may result from this matter is not currently reasonably estimable. As of December 26, 2022, Management believes the Company is not currently required to remit any amounts relating to future unredeemed gift cards to states as the Company’s subsidiary that is the issuer of our gift cards was re-domiciled in Florida, which exempts gift cards from the abandoned and unclaimed property laws. |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 26, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share The following table sets forth the computations of basic and diluted net income per common share: THIRTEEN WEEKS ENDED (in thousands, except share and per share data) MARCH 26, 2023 MARCH 27, 2022 Numerator: Net income $ 9,360 $ 4,640 Denominator: Weighted average common shares outstanding - basic 59,243,430 59,048,446 Weighted average common shares outstanding - diluted 60,597,729 59,983,150 Net income per common share - basic $ 0.16 $ 0.08 Net income per common share - diluted $ 0.15 $ 0.08 Stock option awards outstanding not included in diluted net income per common share as their effect is anti-dilutive 1,118,816 2,150,374 Diluted net income 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 stock option awards outstanding and unvested as of the respective periods using the treasury method. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 26, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 1, 2023, the Company acquired six restaurants, including franchise and development rights plus other associated assets from a franchisee for cash of $8.2 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 26, 2023 | |
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. The quarters ended March 26, 2023 and March 27, 2022 were 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 included in the 2022 Form 10-K and include all adjustments necessary for the fair statement of the consolidated financial statements for the quarterly periods presented. The results of operations for quarterly periods are not necessarily indicative of the results to be expected for other quarterly periods or the entire fiscal year. |
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. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The carrying amounts of the Company ’ |
Summary of Recently Issued Accounting Pronouncements | Summary of Recently Issued Accounting Pronouncements Recent accounting guidance not discussed herein is not applicable, did not have, or is not expected to have a material impact to the Company. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following tables include a detail of liabilities from contracts with customers: (in thousands) MARCH 26, 2023 DECEMBER 25, 2022 Deferred revenues: Deferred gift card revenue $ 2,909 $ 4,897 Deferred franchise fee revenue - current 316 296 Total current deferred revenues $ 3,225 $ 5,193 Other long-term liabilities: Deferred franchise fee revenue - non-current $ 2,409 $ 2,472 Changes in deferred gift card contract liabilities were as follows: THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Deferred gift card revenue: Balance, beginning of period $ 4,897 $ 4,410 Gift card sales 1,534 1,216 Gift card redemptions (3,204) (2,590) Gift card breakage (318) (284) Balance, end of period $ 2,909 $ 2,752 Changes in deferred franchise fee contract liabilities were as follows: THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Deferred franchise fee revenue: Balance, beginning of period $ 2,768 $ 2,536 Cash received 34 120 Franchise revenues recognized (77) (64) Balance, end of period $ 2,725 $ 2,592 |
Disaggregation of Revenue | Revenues recognized disaggregated by type were as follows: THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Restaurant sales: In-restaurant dining sales $ 169,229 $ 132,892 Third-party delivery sales 22,314 21,026 Take-out sales 16,425 16,751 Total restaurant sales $ 207,968 $ 170,669 Franchise revenues: Royalty and system fund contributions $ 3,361 $ 2,379 Initial fees 77 64 Total franchise revenues $ 3,438 $ 2,443 Total revenues $ 211,406 $ 173,112 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivable consisted of the following: (in thousands) MARCH 26, 2023 DECEMBER 25, 2022 Receivables from third-party delivery providers $ 1,339 $ 974 Receivables from franchisees 1,388 1,076 Receivables from vendors 494 920 Receivables related to gift card sales 351 1,565 Other receivables 256 1,629 Total accounts receivable $ 3,828 $ 6,164 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (in thousands) MARCH 26, 2023 DECEMBER 25, 2022 Construction liabilities $ 6,201 $ 6,908 Sales tax 4,675 3,791 Self-insurance and general liability reserves 2,413 1,529 Utilities 1,631 1,468 Interest payable 1,645 1,506 Credit card fees 1,260 1,043 Property tax 935 951 Contingent rent 679 811 Common area maintenance 654 680 Other 4,781 4,042 Total accrued liabilities $ 24,874 $ 22,729 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | Long-term debt, net consisted of the following: MARCH 26, 2023 DECEMBER 25, 2022 (in thousands) Balance Interest Rate Balance Interest Rate Term Facility $ 96,250 6.64% $ 98,125 5.89% Finance lease liabilities 1,310 1,433 Financing obligation 3,050 3,050 Less: Unamortized debt discount and deferred issuance costs (1,573) (1,683) Total Debt, net 99,037 100,925 Less: Current portion of long-term debt (5,627) (6,257) Long-term debt, net $ 93,410 $ 94,668 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Leases [Abstract] | |
Supplemental Information Related to Leases | The following table includes a detail of lease assets and liabilities: (in thousands) Consolidated Balance Sheets Classification MARCH 26, 2023 DECEMBER 25, 2022 Operating lease right-of-use assets Operating lease right-of-use assets $ 355,500 $ 352,373 Finance lease assets Property, fixtures and equipment, net 1,215 1,332 Total lease assets $ 356,715 $ 353,705 Operating lease liabilities (1) - current Current portion of operating lease liabilities 40,474 38,936 Operating lease liabilities - non-current Operating lease liabilities 370,728 366,113 Finance lease liabilities - current Current portion of long-term debt 627 632 Finance lease liabilities - non-current Long-term debt, net 683 801 Total lease liabilities $ 412,512 $ 406,482 _____________ (1) Excludes all variable lease expense. Supplemental information related to leases was as follows: THIRTEEN WEEKS ENDED MARCH 26, 2023 MARCH 27, 2022 Weighted-average remaining lease term (in years) Operating leases 14.4 15.2 Finance leases 2.7 3.3 Weighted-average discount rate (1) Operating leases 8.6 % 8.9 % Finance leases 7.6 % 7.8 % ____________ (1) Based on the Company’s incremental borrowing rate. |
Supplemental Cash Flow Information | The components of lease expense are as follows: (in thousands) Consolidated Statements of Operations and Comprehensive Income Classification THIRTEEN WEEKS ENDED MARCH 26, 2023 MARCH 27, 2022 Operating lease expense Other restaurant operating expenses $ 12,969 $ 12,046 Variable lease expense Food and beverage costs 3,880 3,399 Finance lease expense: Amortization of leased assets Depreciation and amortization 127 135 Interest on lease liabilities Interest expense 26 37 Total lease expense (1) $ 17,002 $ 15,617 _____________ (1) Includes contingent rent of $0.5 million and $0.4 million during the thirteen weeks ended March 26, 2023 and March 27, 2022, respectively. Supplemental cash flow information related to leases was as follows: THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 9,827 $ 10,630 Operating cash flows - finance leases $ 26 $ 37 Financing cash flows - finance leases $ 132 $ 126 |
Operating Lease Maturity | As of March 26, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) Operating Leases Finance Leases Fiscal year 2023 $ 31,208 $ 497 2024 48,752 607 2025 50,834 236 2026 50,632 46 2027 50,033 35 Thereafter 514,274 22 Total future minimum lease payments (1) 745,733 1,443 Less: imputed interest (334,531) (133) Total present value of lease liabilities $ 411,202 $ 1,310 _____________ (1) Excludes approxim ately $52.1 million of exec |
Finance Lease Maturity | As of March 26, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) Operating Leases Finance Leases Fiscal year 2023 $ 31,208 $ 497 2024 48,752 607 2025 50,834 236 2026 50,632 46 2027 50,033 35 Thereafter 514,274 22 Total future minimum lease payments (1) 745,733 1,443 Less: imputed interest (334,531) (133) Total present value of lease liabilities $ 411,202 $ 1,310 _____________ (1) Excludes approxim ately $52.1 million of exec |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Options Roll Forward | A summary of stock option activity for the Company’s stock-based compensation plans during the thirteen weeks ended March 26, 2023 is as follows: NUMBER OF OPTIONS WEIGHTED AVERAGE AGGREGATE INTRINSIC VALUE (in thousands) WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE (in years) Outstanding, December 25, 2022 5,115,674 $ 10.12 $ 20,981 6.1 Exercised (66,717) $ 8.45 $ 503 Forfeited (49,362) $ 12.22 Outstanding, March 26, 2023 4,999,595 $ 10.12 $ 26,181 5.8 Exercisable, March 26, 2023 3,076,284 $ 9.56 $ 17,819 5.2 |
Schedule of Fair Value Non-vested Options at Grant Dates | A summary of the non-vested stock options for the Company’s stock-based compensation plans is as follows: NUMBER OF OPTIONS WEIGHTED AVERAGE GRANT DATE FAIR VALUE Nonvested, December 25, 2022 2,324,316 $ 7.31 Vested (351,643) $ 6.53 Forfeited (49,362) $ 5.19 Nonvested, March 26, 2023 1,923,311 $ 7.51 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the Company’s RSU activity during the thirteen weeks ended March 26, 2023 is as follows: RESTRICTED STOCK UNITS WEIGHTED AVERAGE GRANT DATE FAIR VALUE AGGREGATE INTRINSIC VALUE (in thousands) Outstanding, December 25, 2022 38,311 $ 14.36 $ 544 Granted 507,702 $ 15.52 Vested (6,854) $ 14.59 Outstanding, March 26, 2023 539,159 $ 15.45 $ 8,276 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) and Effective Income Tax Rate | THIRTEEN WEEKS ENDED (in thousands) MARCH 26, 2023 MARCH 27, 2022 Income before income taxes $ 13,918 $ 6,917 Income tax expense $ (4,558) $ (2,277) Effective income tax rate 32.7 % 32.9 % |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
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 per common share: THIRTEEN WEEKS ENDED (in thousands, except share and per share data) MARCH 26, 2023 MARCH 27, 2022 Numerator: Net income $ 9,360 $ 4,640 Denominator: Weighted average common shares outstanding - basic 59,243,430 59,048,446 Weighted average common shares outstanding - diluted 60,597,729 59,983,150 Net income per common share - basic $ 0.16 $ 0.08 Net income per common share - diluted $ 0.15 $ 0.08 Stock option awards outstanding not included in diluted net income per common share as their effect is anti-dilutive 1,118,816 2,150,374 |
Nature of Business and Organi_2
Nature of Business and Organization - Additional Information (Details) | Mar. 26, 2023 restaurant state |
Franchisor Disclosure [Line Items] | |
Number of states where company operates and franchises restaurants | state | 29 |
Company-owned restaurants | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 370 |
Franchise-owned restaurants | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 114 |
Revenues - Detail of Contract L
Revenues - Detail of Contract Liabilities (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Deferred gift card revenue | $ 2,909 | $ 4,897 |
Deferred franchise fee revenue - current | 316 | 296 |
Total current deferred revenues | 3,225 | 5,193 |
Deferred franchise fee revenue - non-current | $ 2,409 | $ 2,472 |
Revenues - Change in Contract L
Revenues - Change in Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Changes in contract liabilities, deferred gift card revenue | ||
Balance, beginning of period | $ 4,897 | $ 4,410 |
Gift card sales | 1,534 | 1,216 |
Gift card redemptions | (3,204) | (2,590) |
Gift card breakage | (318) | (284) |
Balance, end of period | 2,909 | 2,752 |
Changes in contract liabilities, deferred franchise fee revenue | ||
Balance, beginning of period | 2,768 | 2,536 |
Cash received | 34 | 120 |
Franchise revenues recognized | (77) | (64) |
Balance, end of period | $ 2,725 | $ 2,592 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 211,406 | $ 173,112 |
Restaurant sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 207,968 | 170,669 |
In-restaurant dining sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 169,229 | 132,892 |
Third-party delivery sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 22,314 | 21,026 |
Take-out sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 16,425 | 16,751 |
Franchise revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3,438 | 2,443 |
Royalty and system fund contributions | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3,361 | 2,379 |
Initial fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 77 | $ 64 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Receivables [Abstract] | ||
Receivables from third-party delivery providers | $ 1,339 | $ 974 |
Receivables from franchisees | 1,388 | 1,076 |
Receivables from vendors | 494 | 920 |
Receivables related to gift card sales | 351 | 1,565 |
Other receivables | 256 | 1,629 |
Total accounts receivable | $ 3,828 | $ 6,164 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Payables and Accruals [Abstract] | ||
Construction liabilities | $ 6,201 | $ 6,908 |
Sales tax | 4,675 | 3,791 |
Self-insurance and general liability reserves | 2,413 | 1,529 |
Utilities | 1,631 | 1,468 |
Interest payable | 1,645 | 1,506 |
Credit card fees | 1,260 | 1,043 |
Property tax | 935 | 951 |
Contingent rent | 679 | 811 |
Common area maintenance | 654 | 680 |
Other | 4,781 | 4,042 |
Total accrued liabilities | $ 24,874 | $ 22,729 |
Debt - Long-Term Debt, Net (Det
Debt - Long-Term Debt, Net (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Debt Instrument [Line Items] | ||
Finance lease liabilities | $ 1,310 | $ 1,433 |
Less: Unamortized debt discount and deferred issuance costs | (1,573) | (1,683) |
Total Debt, net | 99,037 | 100,925 |
Less: Current portion of long-term debt | (5,627) | (6,257) |
Long-term debt, net | 93,410 | 94,668 |
Financing Obligations | Other Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 3,050 | 3,050 |
Term Facility | New Facilities | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 96,250 | $ 98,125 |
Interest Rate | 6.64% |
Debt - Estimated Fair Value of
Debt - Estimated Fair Value of Outstanding Debt (Details) - USD ($) $ in Millions | Mar. 27, 2023 | Mar. 26, 2023 | Dec. 25, 2022 | Oct. 06, 2021 |
New Facilities | Secured Overnight Financing Rate (SOFR) | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 0.10% | |||
New Facilities | Minimum | Adjusted Leverage Rate | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.25% | |||
New Facilities | Minimum | Secured Overnight Financing Rate (SOFR) | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2.25% | |||
New Facilities | Maximum | Adjusted Leverage Rate | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2% | |||
New Facilities | Maximum | Secured Overnight Financing Rate (SOFR) | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 3% | |||
Term Facility | New Facilities | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 100 | |||
Term Facility | Senior Credit Facilities | Line of Credit | Fair Value, Inputs, Level 3 | ||||
Debt Instrument [Line Items] | ||||
Estimated fair value of outstanding debt, excluding finance lease liabilities and financing obligations | $ 94.8 | $ 97.1 | ||
Revolving Credit Facility | New Facilities | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 75 |
Leases - Lease Assets and Lease
Leases - Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 355,500 | $ 352,373 |
Finance lease assets | 1,215 | 1,332 |
Total lease assets | 356,715 | 353,705 |
Operating lease liabilities - current | 40,474 | 38,936 |
Operating lease liabilities - non-current | 370,728 | 366,113 |
Finance lease liabilities - current | 627 | 632 |
Finance lease liabilities - non-current | 683 | 801 |
Total lease liabilities | $ 412,512 | $ 406,482 |
Finance lease, right-of-use asset, statement of financial position [Extensible Enumeration] | Property, fixtures and equipment, net of accumulated depreciation of $154,303 and $145,720, respectively | Property, fixtures and equipment, net of accumulated depreciation of $154,303 and $145,720, respectively |
Finance lease, liability, current, statement of financial position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt |
Finance lease, liability, noncurrent, statement of financial position [Extensible Enumeration] | Long-term debt, net | Long-term debt, net |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 12,969 | $ 12,046 |
Variable lease expense | 3,880 | 3,399 |
Amortization of leased assets | 127 | 135 |
Interest on lease liabilities | 26 | 37 |
Total lease expense | 17,002 | 15,617 |
Contingent rent | $ 500 | $ 400 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Leases [Abstract] | ||
Operating cash flows - operating leases | $ 9,827 | $ 10,630 |
Operating cash flows - finance leases | 26 | 37 |
Financing cash flows - finance leases | $ 132 | $ 126 |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases (Details) | Mar. 26, 2023 | Mar. 27, 2022 |
Weighted-average remaining lease term (in years) | ||
Operating leases | 14 years 4 months 24 days | 15 years 2 months 12 days |
Finance leases | 2 years 8 months 12 days | 3 years 3 months 18 days |
Weighted-average discount rate | ||
Operating leases | 8.60% | 8.90% |
Finance leases | 7.60% | 7.80% |
Leases - Operating and Finance
Leases - Operating and Finance Lease Maturity (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Operating Leases | ||
2023 | $ 31,208 | |
2024 | 48,752 | |
2025 | 50,834 | |
2026 | 50,632 | |
2027 | 50,033 | |
Thereafter | 514,274 | |
Total future minimum lease payments | 745,733 | |
Less: imputed interest | (334,531) | |
Total present value of lease liabilities | 411,202 | |
Finance Leases | ||
2023 | 497 | |
2024 | 607 | |
2025 | 236 | |
2026 | 46 | |
2027 | 35 | |
Thereafter | 22 | |
Total future minimum lease payments | 1,443 | |
Less: imputed interest | (133) | |
Total present value of lease liabilities | 1,310 | $ 1,433 |
Executed operating leases that have not commenced | $ 52,100 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | |||
Mar. 26, 2023 | Mar. 27, 2022 | Mar. 24, 2023 | Dec. 23, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (in shares) | 0 | |||
Closing price of common stock on Nasdaq (in dollars per share) | $ 15.35 | $ 14.21 | ||
Stock-based compensation expense | $ 1,500 | $ 2,300 | ||
Share-Based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense not yet recognized | $ 7,900 | |||
Weighted-average period of recognition | 1 year 3 months 18 days | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average period of recognition | 2 years 9 months 18 days | |||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $ 7,800 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options Roll Forward (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 26, 2023 | Dec. 25, 2022 | |
NUMBER OF OPTIONS | ||
Options outstanding, beginning of period (in shares) | 5,115,674 | |
Options exercised (in shares) | (66,717) | |
Forfeited (in shares) | (49,362) | |
Options outstanding, end of period (in shares) | 4,999,595 | 5,115,674 |
Options exercisable, end of period (in shares) | 3,076,284 | |
WEIGHTED AVERAGE EXERCISE PRICE | ||
Outstanding, beginning of period, weighted average exercise price (in dollars per share) | $ 10.12 | |
Exercised, weighted average exercise price (in dollars per share) | 8.45 | |
Forfeited, weighted average exercise price (in dollars per share) | 12.22 | |
Outstanding, end of period, weighted average exercise price (in dollars per share) | 10.12 | $ 10.12 |
Exercisable, end of period, weighted average exercise price (in dollars per share) | $ 9.56 | |
AGGREGATE INTRINSIC VALUE (in thousands) | ||
Outstanding, beginning of period, aggregate intrinsic value | $ 20,981 | |
Exercised, aggregate intrinsic value | 503 | |
Outstanding, end of period, aggregate intrinsic value | 26,181 | $ 20,981 |
Exercisable, end of period, aggregate intrinsic value | $ 17,819 | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Weighted Average Remaining Contractual Term [Abstract] | ||
Outstanding, weighted average remaining contractual term | 5 years 9 months 18 days | 6 years 1 month 6 days |
Exercisable, weighted average remaining contractual term | 5 years 2 months 12 days |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Fair Value Non-vested Options at Grant Dates (Details) | 3 Months Ended |
Mar. 26, 2023 $ / shares shares | |
NUMBER OF OPTIONS | |
Beginning balance (in shares) | shares | 2,324,316 |
Vested (in shares) | shares | (351,643) |
Forfeited (in shares) | shares | (49,362) |
Ending balance (in shares) | shares | 1,923,311 |
WEIGHTED AVERAGE GRANT DATE FAIR VALUE | |
Beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.31 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 6.53 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 5.19 |
Ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.51 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Nonvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 26, 2023 USD ($) $ / shares shares | |
RESTRICTED STOCK UNITS | |
Beginning balance (in shares) | shares | 38,311 |
Granted (in shares) | shares | 507,702 |
Vested (in shares) | shares | (6,854) |
Ending balance (in shares) | shares | 539,159 |
WEIGHTED AVERAGE GRANT DATE FAIR VALUE | |
Beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 14.36 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | 15.52 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 14.59 |
Ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 15.45 |
AGGREGATE INTRINSIC VALUE (in thousands) | |
Beginning balance outstanding, aggregate intrinsic value | $ | $ 544 |
Ending outstanding, aggregate intrinsic value | $ | $ 8,276 |
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 | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 13,918 | $ 6,917 |
Income tax expense | $ (4,558) | $ (2,277) |
Effective income tax rate | 32.70% | 32.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 32.70% | 32.90% |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Numerator | ||
Net income | $ 9,360 | $ 4,640 |
Net income | $ 9,360 | $ 4,640 |
Denominator | ||
Weighted average common shares outstanding - basic (in shares) | 59,243,430 | 59,048,446 |
Weighted average common shares outstanding - diluted (in shares) | 60,597,729 | 59,983,150 |
Net income per common share - basic (in dollars per share) | $ 0.16 | $ 0.08 |
Net income per common share - diluted (in dollars per share) | $ 0.15 | $ 0.08 |
Stock option awards outstanding not included in diluted net income per common share as their effect is anti-dilutive (in shares) | 1,118,816 | 2,150,374 |
Subsequent Events (Details)
Subsequent Events (Details) - Series of Individually Immaterial Business Acquisitions - Subsequent Event $ in Millions | May 01, 2023 USD ($) restaurant |
Subsequent Event [Line Items] | |
Number of businesses acquired | restaurant | 6 |
Payments to acquire businesses, gross | $ | $ 8.2 |