Cover
Cover - shares | 6 Months Ended | |
Jun. 25, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 25, 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, $0.01 par value | |
Trading Symbol | FWRG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,523,950 | |
Entity Central Index Key | 0001789940 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 66,765 | $ 49,672 |
Restricted cash | 326 | 251 |
Accounts receivable | 4,466 | 6,164 |
Inventory | 4,887 | 5,028 |
Prepaid expenses | 5,893 | 5,800 |
Derivative assets | 724 | 0 |
Other current assets | 1,982 | 373 |
Total current assets | 85,043 | 67,288 |
Goodwill | 350,491 | 345,219 |
Intangible assets, net | 144,083 | 143,151 |
Operating lease right-of-use assets | 369,587 | 352,373 |
Property, fixtures and equipment, net of accumulated depreciation of $162,238 and $145,720, respectively | 212,182 | 195,117 |
Other long-term assets | 1,232 | 1,298 |
Total assets | 1,162,618 | 1,104,446 |
Current liabilities: | ||
Accounts payable | 5,514 | 7,590 |
Accrued liabilities | 32,321 | 22,729 |
Accrued compensation | 20,895 | 17,899 |
Deferred revenues | 3,472 | 5,193 |
Current portion of operating lease liabilities | 39,734 | 38,936 |
Current portion of long-term debt | 6,881 | 6,257 |
Note payable | 344 | 1,376 |
Total current liabilities | 109,161 | 99,980 |
Operating lease liabilities | 387,868 | 366,113 |
Long-term debt, net | 92,174 | 94,668 |
Deferred income taxes | 23,040 | 17,166 |
Derivative liabilities | 884 | 0 |
Other long-term liabilities | 3,654 | 3,384 |
Total liabilities | 616,781 | 581,311 |
Commitments and contingencies (Note 12) | ||
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; 59,463,950 and 59,211,019 shares issued and outstanding at June 25, 2023 and December 25, 2022, respectively | 594 | 592 |
Additional paid-in capital | 626,216 | 620,675 |
Accumulated deficit | (80,813) | (98,132) |
Accumulated other comprehensive loss | (160) | 0 |
Total equity | 545,837 | 523,135 |
Total liabilities and equity | $ 1,162,618 | $ 1,104,446 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 162,238 | $ 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) | 59,463,950 | 59,211,019 |
Common stock, shares outstanding (in shares) | 59,463,950 | 59,211,019 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | |
Revenues: | ||||
Total revenues | $ 216,300 | $ 184,453 | $ 427,706 | $ 357,565 |
Restaurant operating expenses (exclusive of depreciation and amortization shown below): | ||||
Food and beverage costs | 47,692 | 45,219 | 94,319 | 84,622 |
Labor and other related expenses | 70,602 | 58,687 | 139,175 | 113,829 |
Other restaurant operating expenses | 32,182 | 28,759 | 63,878 | 56,076 |
Occupancy expenses | 16,461 | 14,844 | 32,395 | 29,227 |
Pre-opening expenses | 1,252 | 1,094 | 2,288 | 2,079 |
General and administrative expenses | 25,284 | 21,942 | 47,989 | 41,505 |
Depreciation and amortization | 9,441 | 8,400 | 18,558 | 16,623 |
Impairments and loss on disposal of assets | 299 | 155 | 433 | 234 |
Transaction expenses, net | 1,744 | 300 | 1,997 | 557 |
Total operating costs and expenses | 204,957 | 179,400 | 401,032 | 344,752 |
Income from operations | 11,343 | 5,053 | 26,674 | 12,813 |
Interest expense | (2,037) | (1,126) | (3,944) | (2,132) |
Other income, net | 685 | 116 | 1,179 | 279 |
Income before income taxes | 9,991 | 4,043 | 23,909 | 10,960 |
Income tax expense | (2,032) | (1,336) | (6,590) | (3,613) |
Net income | 7,959 | 2,707 | 17,319 | 7,347 |
Other comprehensive loss: | ||||
Unrealized loss on derivatives, net of tax | (160) | 0 | (160) | 0 |
Comprehensive income | $ 7,799 | $ 2,707 | $ 17,159 | $ 7,347 |
Net income per common share - basic (in dollars per share) | $ 0.13 | $ 0.05 | $ 0.29 | $ 0.12 |
Net income per common share - diluted (in dollars per share) | $ 0.13 | $ 0.05 | $ 0.28 | $ 0.12 |
Weighted average common shares outstanding - basic (in shares) | 59,385,510 | 59,057,991 | 59,314,470 | 59,053,219 |
Weighted average common shares outstanding - diluted (in shares) | 60,944,836 | 59,888,029 | 60,770,441 | 59,933,003 |
Restaurant sales | ||||
Revenues: | ||||
Total revenues | $ 212,587 | $ 181,682 | $ 420,555 | $ 352,351 |
Franchise revenues | ||||
Revenues: | ||||
Total revenues | $ 3,713 | $ 2,771 | $ 7,151 | $ 5,214 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
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 | 7,347 | 7,347 | |||
Stock-based compensation | 5,102 | 5,102 | |||
Common stock issued under stock-based compensation plans, net (in shares) | 27,116 | ||||
Common stock issued under stock-based compensation plans, net | 244 | $ 1 | 243 | ||
Ending balance (in shares) at Jun. 26, 2022 | 59,075,562 | ||||
Ending balance at Jun. 26, 2022 | 517,122 | $ 591 | 614,223 | (97,692) | |
Beginning balance (in shares) at Mar. 27, 2022 | 59,048,446 | ||||
Beginning balance at Mar. 27, 2022 | 511,363 | $ 590 | 611,172 | (100,399) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,707 | 2,707 | |||
Stock-based compensation | 2,808 | 2,808 | |||
Common stock issued under stock-based compensation plans, net (in shares) | 27,116 | ||||
Common stock issued under stock-based compensation plans, net | 244 | $ 1 | 243 | ||
Ending balance (in shares) at Jun. 26, 2022 | 59,075,562 | ||||
Ending balance at Jun. 26, 2022 | 517,122 | $ 591 | 614,223 | (97,692) | |
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 | 17,319 | 17,319 | |||
Stock-based compensation | 3,622 | 3,622 | |||
Common stock issued under stock-based compensation plans, net (in shares) | 252,931 | ||||
Common stock issued under stock-based compensation plans, net | 1,921 | $ 2 | 1,919 | ||
Other comprehensive loss | (160) | $ (160) | |||
Ending balance (in shares) at Jun. 25, 2023 | 59,463,950 | ||||
Ending balance at Jun. 25, 2023 | 545,837 | $ 594 | 626,216 | (80,813) | (160) |
Beginning balance (in shares) at Mar. 26, 2023 | 59,284,590 | ||||
Beginning balance at Mar. 26, 2023 | 534,557 | $ 593 | 622,736 | (88,772) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 7,959 | 7,959 | |||
Stock-based compensation | 2,125 | 2,125 | |||
Common stock issued under stock-based compensation plans, net (in shares) | 179,360 | ||||
Common stock issued under stock-based compensation plans, net | 1,356 | $ 1 | 1,355 | ||
Other comprehensive loss | (160) | (160) | |||
Ending balance (in shares) at Jun. 25, 2023 | 59,463,950 | ||||
Ending balance at Jun. 25, 2023 | $ 545,837 | $ 594 | $ 626,216 | $ (80,813) | $ (160) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2023 | Jun. 26, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 17,319 | $ 7,347 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 18,558 | 16,623 |
Stock-based compensation | 3,622 | 5,102 |
Non-cash operating lease costs | 8,994 | 7,730 |
Non-cash portion of gain on lease modifications | (123) | (62) |
Deferred income taxes | 5,874 | 3,166 |
Amortization of debt discount and deferred issuance costs | 221 | 223 |
Impairments and loss on disposal of assets | 433 | 234 |
Gain on insurance proceeds | (601) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 1,698 | 581 |
Inventory | 198 | 57 |
Prepaid expenses | (92) | 135 |
Other assets, current and long-term | (1,539) | (1,376) |
Accounts payable | (2,076) | (4,074) |
Accrued liabilities and other long-term liabilities | 5,821 | 3,636 |
Accrued compensation and deferred payroll taxes | 2,996 | (2,223) |
Deferred revenues, current and long-term | (1,920) | (1,504) |
Operating lease liabilities | (3,800) | (3,783) |
Net cash provided by operating activities | 55,583 | 31,812 |
Cash flows from investing activities: | ||
Capital expenditures | (29,677) | (26,566) |
Acquisitions, net of cash acquired | (8,018) | 0 |
Purchase of intangible assets | (76) | (379) |
Insurance proceeds | 601 | 0 |
Net cash used in investing activities | (37,170) | (26,945) |
Cash flows from financing activities: | ||
Repayments of note payable | (1,032) | (1,829) |
Repayments of long-term debt, including finance lease liabilities | (2,134) | (1,502) |
Proceeds from exercise of stock options, net of employee taxes paid | 1,921 | 244 |
Contingent consideration payment | 0 | (78) |
Net cash used in financing activities | (1,245) | (3,165) |
Net increase in cash and cash equivalents and restricted cash | 17,168 | 1,702 |
Cash and cash equivalents and restricted cash, beginning of period | 49,923 | 52,115 |
Cash and cash equivalents and restricted cash, end of period | 67,091 | 53,817 |
Supplemental cash flow information: | ||
Cash paid for interest | 3,421 | 1,996 |
Cash paid for income taxes, net of refunds | 982 | 593 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Leased assets obtained in exchange for new operating lease liabilities | 27,627 | 27,216 |
Leased assets obtained in exchange for new finance lease liabilities | 62 | 50 |
Remeasurements and terminations of operating lease assets and lease liabilities | (1,212) | (746) |
Remeasurements and terminations of finance lease assets and lease liabilities | (19) | (135) |
Increase in liabilities from acquisition of property, fixtures and equipment | $ 4,010 | $ 2,221 |
Nature of Business and Organiza
Nature of Business and Organization | 6 Months Ended |
Jun. 25, 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 | 6 Months Ended |
Jun. 25, 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 June 25, 2023 and June 26, 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. Interest Rate Swaps As an element of the Company’s interest rate risk management strategy, Management uses interest rate swaps. The intent of these instruments is to reduce cash flow exposure to variability in expected future interest rates on the Company’s debt. Management has elected to designate and qualify the interest rate swaps as cash flow hedges. As such, the instruments are recorded on the balance sheet at fair value. Thereafter, gains or losses on the instruments are recognized in equity as changes to Other Comprehensive Income and subsequently reclassified into earnings at the time of the Company’s debt- interest payments. 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. |
Business Acquisition
Business Acquisition | 6 Months Ended |
Jun. 25, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition | Business Acquisition On May 1, 2023, the Company acquired substantially all of the assets of six franchise-owned restaurants for approximately $8.2 million in cash. Transaction costs of $0.3 million were expensed as incurred and the Company recognized $0.1 million of deferred franchise revenues as a result of terminating the pre-existing franchise agreements. The purchase price was allocated to the fair value of assets acquired and liabilities assumed as follows: (in thousands) Cash $ 9 Inventory $ 57 Prepaid rent and other assets $ 67 Property, fixtures and equipment $ 1,840 Reacquired rights $ 1,342 Goodwill (primarily expected synergies and assembled workforce; tax deductible) $ 5,272 Unfavorable leasehold positions, net $ (330) Gift card liabilities assumed $ (80) |
Revenues
Revenues | 6 Months Ended |
Jun. 25, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following tables include a detail of liabilities from contracts with customers: (in thousands) JUNE 25, 2023 DECEMBER 25, 2022 Deferred revenues: Deferred gift card revenue $ 3,154 $ 4,897 Deferred franchise fee revenue - current 318 296 Total current deferred revenues $ 3,472 $ 5,193 Other long-term liabilities: Deferred franchise fee revenue - non-current $ 2,354 $ 2,472 Changes in deferred gift card contract liabilities were as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Deferred gift card revenue: Balance, beginning of period $ 2,909 $ 2,752 $ 4,897 $ 4,410 Gift card sales 3,027 2,362 4,561 3,578 Gift card redemptions (2,601) (2,089) (5,805) (4,679) Gift card breakage (261) (220) (579) (504) Gift card liabilities assumed through acquisitions 80 — 80 — Balance, end of period $ 3,154 $ 2,805 $ 3,154 $ 2,805 Changes in deferred franchise fee contract liabilities were as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Deferred franchise fee revenue: Balance, beginning of period $ 2,725 $ 2,592 $ 2,768 $ 2,536 Cash received 105 110 139 230 Franchise revenues recognized (80) (65) (157) (129) Business combinations - franchise revenues recognized (78) — (78) — Balance, end of period $ 2,672 $ 2,637 $ 2,672 $ 2,637 Revenues recognized disaggregated by type were as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Restaurant sales: In-restaurant dining sales $ 174,352 $ 144,839 $ 343,581 $ 277,731 Third-party delivery sales 21,440 19,829 43,754 40,855 Take-out sales 16,795 17,014 33,220 33,765 Total restaurant sales $ 212,587 $ 181,682 $ 420,555 $ 352,351 Franchise revenues: Royalty and system fund contributions $ 3,555 $ 2,706 $ 6,916 $ 5,085 Initial fees 158 65 235 129 Total franchise revenues $ 3,713 $ 2,771 $ 7,151 $ 5,214 Total revenues $ 216,300 $ 184,453 $ 427,706 $ 357,565 |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 25, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consisted of the following: (in thousands) JUNE 25, 2023 DECEMBER 25, 2022 Receivables from third-party delivery providers $ 1,334 $ 974 Receivables from franchisees 1,401 1,076 Receivables from vendors 1,086 920 Receivables related to gift card sales 581 1,565 Other receivables 64 1,629 Total accounts receivable $ 4,466 $ 6,164 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 25, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) JUNE 25, 2023 DECEMBER 25, 2022 Construction liabilities $ 10,918 $ 6,908 Sales tax 4,472 3,791 Self-insurance and general liability reserves 2,385 1,529 Utilities 1,632 1,468 Interest payable 1,808 1,506 Credit card fees 1,228 1,043 Property tax 1,122 951 Contingent rent 769 811 Common area maintenance 803 680 Other 7,184 4,042 Total accrued liabilities $ 32,321 $ 22,729 |
Debt
Debt | 6 Months Ended |
Jun. 25, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt, net consisted of the following: JUNE 25, 2023 DECEMBER 25, 2022 (in thousands) Balance Interest Rate Balance Interest Rate Term Facility $ 96,250 7.25% $ 98,125 5.89% Finance lease liabilities 1,217 1,433 Financing obligation 3,050 3,050 Less: Unamortized debt discount and deferred issuance costs (1,462) (1,683) Total Debt, net 99,055 100,925 Less: Current portion of long-term debt (6,881) (6,257) Long-term debt, net $ 92,174 $ 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 June 25, 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. Refer to Note 8, Interest Rate Swaps , for information about the variable-to-fixed interest rate swap agreements entered into in June 2023. Fair Value of Debt |
Leases
Leases | 6 Months Ended |
Jun. 25, 2023 | |
Leases [Abstract] | |
Leases | Leases The following table includes a detail of lease assets and liabilities: (in thousands) Consolidated Balance Sheets Classification JUNE 25, 2023 DECEMBER 25, 2022 Operating lease right-of-use assets Operating lease right-of-use assets $ 369,587 $ 352,373 Finance lease assets Property, fixtures and equipment, net 1,126 1,332 Total lease assets $ 370,713 $ 353,705 Operating lease liabilities (1) - current Current portion of operating lease liabilities $ 39,734 $ 38,936 Operating lease liabilities - non-current Operating lease liabilities 387,868 366,113 Finance lease liabilities - current Current portion of long-term debt 631 632 Finance lease liabilities - non-current Long-term debt, net 586 801 Total lease liabilities $ 428,819 $ 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 TWENTY-SIX WEEKS ENDED JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Operating lease expense Other restaurant operating expenses $ 13,472 $ 12,130 $ 26,441 $ 24,176 Variable lease expense Food and beverage costs 4,126 3,594 8,006 6,993 Finance lease expense: Amortization of leased assets Depreciation and amortization 127 132 254 267 Interest on lease liabilities Interest expense 26 39 52 76 Total lease expense (1) $ 17,751 $ 15,895 $ 34,753 $ 31,512 _____________ (1) Includes contingent rent expense of $0.5 million and $0.4 million during the thirteen weeks ended June 25, 2023 and June 26, 2022, respectively, and $0.9 million and $0.8 million during the twenty-six weeks ended June 25, 2023 and June 26, 2022, respectively. Supplemental cash flow information related to leases was as follows: TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 21,247 $ 20,229 Operating cash flows - finance leases $ 52 $ 76 Financing cash flows - finance leases $ 259 $ 252 Supplemental information related to leases was as follows: TWENTY-SIX WEEKS ENDED JUNE 25, 2023 JUNE 26, 2022 Weighted-average remaining lease term (in years) Operating leases 14.2 15.0 Finance leases 2.6 3.1 Weighted-average discount rate (1) Operating leases 8.5 % 8.7 % Finance leases 7.4 % 7.8 % ____________ (1) Based on the Company’s incremental borrowing rate. As of June 25, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) OPERATING LEASES FINANCE LEASES Fiscal year 2023 $ 20,647 $ 351 2024 47,853 603 2025 53,407 244 2026 52,971 55 2027 52,158 43 Thereafter 541,589 41 Total future minimum lease payments (1) 768,625 1,337 Less: imputed interest (341,023) (120) Total present value of lease liabilities $ 427,602 $ 1,217 _____________ (1) Excludes approxim ately $83.8 million of exec uted operating leases that have not commenced as of June 25, 2023. |
Leases | Leases The following table includes a detail of lease assets and liabilities: (in thousands) Consolidated Balance Sheets Classification JUNE 25, 2023 DECEMBER 25, 2022 Operating lease right-of-use assets Operating lease right-of-use assets $ 369,587 $ 352,373 Finance lease assets Property, fixtures and equipment, net 1,126 1,332 Total lease assets $ 370,713 $ 353,705 Operating lease liabilities (1) - current Current portion of operating lease liabilities $ 39,734 $ 38,936 Operating lease liabilities - non-current Operating lease liabilities 387,868 366,113 Finance lease liabilities - current Current portion of long-term debt 631 632 Finance lease liabilities - non-current Long-term debt, net 586 801 Total lease liabilities $ 428,819 $ 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 TWENTY-SIX WEEKS ENDED JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Operating lease expense Other restaurant operating expenses $ 13,472 $ 12,130 $ 26,441 $ 24,176 Variable lease expense Food and beverage costs 4,126 3,594 8,006 6,993 Finance lease expense: Amortization of leased assets Depreciation and amortization 127 132 254 267 Interest on lease liabilities Interest expense 26 39 52 76 Total lease expense (1) $ 17,751 $ 15,895 $ 34,753 $ 31,512 _____________ (1) Includes contingent rent expense of $0.5 million and $0.4 million during the thirteen weeks ended June 25, 2023 and June 26, 2022, respectively, and $0.9 million and $0.8 million during the twenty-six weeks ended June 25, 2023 and June 26, 2022, respectively. Supplemental cash flow information related to leases was as follows: TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 21,247 $ 20,229 Operating cash flows - finance leases $ 52 $ 76 Financing cash flows - finance leases $ 259 $ 252 Supplemental information related to leases was as follows: TWENTY-SIX WEEKS ENDED JUNE 25, 2023 JUNE 26, 2022 Weighted-average remaining lease term (in years) Operating leases 14.2 15.0 Finance leases 2.6 3.1 Weighted-average discount rate (1) Operating leases 8.5 % 8.7 % Finance leases 7.4 % 7.8 % ____________ (1) Based on the Company’s incremental borrowing rate. As of June 25, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) OPERATING LEASES FINANCE LEASES Fiscal year 2023 $ 20,647 $ 351 2024 47,853 603 2025 53,407 244 2026 52,971 55 2027 52,158 43 Thereafter 541,589 41 Total future minimum lease payments (1) 768,625 1,337 Less: imputed interest (341,023) (120) Total present value of lease liabilities $ 427,602 $ 1,217 _____________ (1) Excludes approxim ately $83.8 million of exec uted operating leases that have not commenced as of June 25, 2023. |
Equity and Stock-Based Compensa
Equity and Stock-Based Compensation | 6 Months Ended |
Jun. 25, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity and Stock-Based Compensation | Equity and Stock-Based Compensation Equity Transactions During the thirteen weeks ended June 25, 2023, funds managed by the Company’s majority owner, Advent International Corporation, sold 3,500,000 and 3,000,000 shares of the Company’s common stock through underwritten secondary public offerings that were completed on May 18, 2023 and June 13, 2023, respectively (the “Secondary Offerings”). The selling stockholders sold an additional 525,000 and 450,000 shares of common stock on May 18, 2023 and July 3, 2023, respectively, pursuant to the terms of the underwriter’s option associated with each Secondary Offering. All net proceeds from the sale of the shares of common stock were distributed to the selling stockholders. The Company incurred approximately $1.0 million of costs that were recorded within Transaction expenses, net on the Consolidated Statements of Operations and Comprehensive Income. Stock option awards There were no stock option awards granted under the 2021 Equity Plan during the twenty-six weeks ended June 25, 2023. A summary of stock option activity during the twenty-six weeks ended June 25, 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 (224,620) $ 8.93 Forfeited (51,454) $ 12.45 Outstanding, June 25, 2023 4,839,600 $ 10.15 $ 28,820 5.6 Exercisable, June 25, 2023 2,966,385 $ 9.63 $ 19,187 5.1 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 option activity during the twenty-six weeks ended June 25, 2023 is as follows: NUMBER OF OPTIONS WEIGHTED AVERAGE GRANT DATE FAIR VALUE Nonvested, December 25, 2022 2,324,316 $ 7.31 Vested (399,647) $ 5.95 Forfeited (51,454) $ 5.37 Nonvested, June 25, 2023 1,873,215 $ 7.65 Restricted stock units A summary of activity for restricted stock units during the twenty-six weeks ended June 25, 2023 is as follows: RESTRICTED STOCK UNITS WEIGHTED AVERAGE AGGREGATE INTRINSIC VALUE (in thousands) Outstanding, December 25, 2022 38,311 $ 14.36 $ 544 Granted 532,700 $ 15.64 Vested (38,311) $ 14.36 Forfeited (1,288) $ 15.52 Outstanding, June 25, 2023 531,412 $ 15.64 $ 8,556 The aggregate intrinsic value is based on the closing price of the Company’s common stock on Nasdaq of $16.10 and $14.21 on June 23, 2023 and December 23, 2022, the last trading days for the periods, respectively. Stock-based compensation expense was $2.1 million and $3.6 million during the thirteen and twenty-six weeks ended June 25, 2023, respectively. Stock-based compensation expense was $2.8 million and $5.1 million during the thirteen and twenty-six weeks ended June 26, 2022, respectively. The total related income tax benefit for stock-based compensation expense was $0.4 million and $0.6 million during the thirteen and twenty-six weeks ended June 25, 2023, respectively. The total related income tax benefit for stock-based compensation expense was less than $0.1 million during the thirteen and twenty-six weeks ended June 26, 2022. Unrecognized stock-based compensation expense The following represents unrecognized stock-based compensation expense and the remaining weighted average vesting period as of June 25, 2023: UNRECOGNIZED STOCK-BASED COMPENSATION EXPENSE (in thousands) REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years) Stock options $ 6,346 1.1 Restricted stock units $ 7,497 1.7 |
Interest Rate Swaps
Interest Rate Swaps | 6 Months Ended |
Jun. 25, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Swaps | Interest Rate Swaps On June 23, 2023, the Company entered into variable-to-fixed interest rate swaps to hedge a portion of the cash flows of the Company’s variable rate debt. The interest rate swaps have an aggregate notional amount of $90.0 million and mature on October 6, 2026. Under the terms of the interest rate swaps, the Company will pay a weighted average fixed rate of 4.16% on the notional amount and will receive payments from the counterparties based on the three-month SOFR rate. The fair value measurement of the interest rate swaps was based on the contractual terms and used observable market-based inputs. The interest rate swaps were valued using a discounted cash flow analysis on the expected cash flows using observable inputs including interest rate curves and credit spreads. Although the majority of the inputs used to value the instruments fall within Level 2 of the fair value hierarchy, the credit valuation adjustments utilized Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and the counterparties. The Company has determined that the impact of the credit valuation adjustments was not significant to the overall valuation. As a result, the derivative was classified as Level 2 of the fair value hierarchy. Amounts reported in Other comprehensive income related to the interest rate swaps will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. Over the next 12 months, the Company estimates that $0.9 million will be reclassified as a reduction to interest expense. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 25, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Income before income taxes $ 9,991 $ 4,043 $ 23,909 $ 10,960 Income tax expense $ (2,032) $ (1,336) $ (6,590) $ (3,613) Effective income tax rate 20.3 % 33.0 % 27.6 % 33.0 % The change in the effective income tax rates for the thirteen and twenty-six weeks ended June 25, 2023 as compared to the same periods in the prior year was primarily due to (i) the change in the valuation allowance for federal deferred tax assets, (ii) a decrease in the valuation allowance for state net operating loss carryforwards, (iii) the benefit of tax credits for FICA taxes on certain employees’ tips, (iv) impacts of executive stock-based compensation and (v) non-deductible costs associated with the Secondary Offerings. The effective income tax rates for the thirteen and twenty-six weeks ended June 25, 2023 and June 26, 2022 were different than the blended federal and state statutory rate primarily due to (i) the change in the valuation allowance for federal deferred tax assets, (ii) a decrease in the valuation allowance for state net operating loss carryforwards, (iii) the benefit of tax credits for FICA taxes on certain employees’ tips, (iv) impacts of executive stock-based compensation and (v) non-deductible costs associated with the Secondary Offerings. Valuation allowance Management evaluates quarterly whether the resulting deferred tax assets are realizable given the Company’s earnings history. 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 June 25, 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. Management continues to monitor and evaluate the rationale for recording a valuation allowance for deferred tax assets. As the Company’s future taxable earnings increase and deferred tax assets are utilized, it is possible that a portion of the valuation allowance will no longer be needed. Release of any portion of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense in the period of the release. The timing and amount of any release related to future taxable income is currently indeterminable. During the thirteen weeks ended June 25, 2023, a release of the valuation allowance related to certain state loss carryforwards decreased income tax expense by approximately $1.0 million. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 25, 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 anticipated liability with respect to these matters was not material as of June 25, 2023. In the event any litigation losses become probable and estimable, the Company will recognize any anticipated losses. 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 | 6 Months Ended |
Jun. 25, 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 TWENTY-SIX WEEKS ENDED (in thousands, except share and per share data) JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Numerator: Net income $ 7,959 $ 2,707 $ 17,319 $ 7,347 Denominator: Weighted average common shares outstanding - basic 59,385,510 59,057,991 59,314,470 59,053,219 Weighted average common shares outstanding - diluted 60,944,836 59,888,029 60,770,441 59,933,003 Net income per common share - basic $ 0.13 $ 0.05 $ 0.29 $ 0.12 Net income per common share - diluted $ 0.13 $ 0.05 $ 0.28 $ 0.12 Stock options outstanding not included in diluted net income per common share as their effect is anti-dilutive 1,005,061 2,213,408 1,005,359 1,567,102 Restricted stock units outstanding not included in diluted net income per share as their effect is anti-dilutive 9,065 11,185 4,533 — 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 | 6 Months Ended |
Jun. 25, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On June 26, 2023, the Company acquired five restaurants, including franchise and development rights plus other associated assets from a franchisee for cash of $8.6 million. On June 30, 2023, the Company executed an asset purchase agreement to acquire from a franchisee six operating restaurants and one restaurant under development, together with other associated assets, including, but not limited to, franchise and development rights for cash of approximately $13.9 million. The close date of the sale is subject to the satisfaction of certain customary closing conditions set forth in the asset purchase agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 25, 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 June 25, 2023 and June 26, 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 ’ |
Interest Rate Swaps | Interest Rate Swaps As an element of the Company’s interest rate risk management strategy, Management uses interest rate swaps. The intent of these instruments is to reduce cash flow exposure to variability in expected future interest rates on the Company’s debt. Management has elected to designate and qualify the interest rate swaps as cash flow hedges. As such, the instruments are recorded on the balance sheet at fair value. Thereafter, gains or losses on the instruments are recognized in equity as changes to Other Comprehensive Income and subsequently reclassified into earnings at the time of the Company’s debt- interest payments. |
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. |
Business Acquisition (Tables)
Business Acquisition (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The purchase price was allocated to the fair value of assets acquired and liabilities assumed as follows: (in thousands) Cash $ 9 Inventory $ 57 Prepaid rent and other assets $ 67 Property, fixtures and equipment $ 1,840 Reacquired rights $ 1,342 Goodwill (primarily expected synergies and assembled workforce; tax deductible) $ 5,272 Unfavorable leasehold positions, net $ (330) Gift card liabilities assumed $ (80) |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 25, 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) JUNE 25, 2023 DECEMBER 25, 2022 Deferred revenues: Deferred gift card revenue $ 3,154 $ 4,897 Deferred franchise fee revenue - current 318 296 Total current deferred revenues $ 3,472 $ 5,193 Other long-term liabilities: Deferred franchise fee revenue - non-current $ 2,354 $ 2,472 Changes in deferred gift card contract liabilities were as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Deferred gift card revenue: Balance, beginning of period $ 2,909 $ 2,752 $ 4,897 $ 4,410 Gift card sales 3,027 2,362 4,561 3,578 Gift card redemptions (2,601) (2,089) (5,805) (4,679) Gift card breakage (261) (220) (579) (504) Gift card liabilities assumed through acquisitions 80 — 80 — Balance, end of period $ 3,154 $ 2,805 $ 3,154 $ 2,805 Changes in deferred franchise fee contract liabilities were as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Deferred franchise fee revenue: Balance, beginning of period $ 2,725 $ 2,592 $ 2,768 $ 2,536 Cash received 105 110 139 230 Franchise revenues recognized (80) (65) (157) (129) Business combinations - franchise revenues recognized (78) — (78) — Balance, end of period $ 2,672 $ 2,637 $ 2,672 $ 2,637 |
Disaggregation of Revenue | Revenues recognized disaggregated by type were as follows: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Restaurant sales: In-restaurant dining sales $ 174,352 $ 144,839 $ 343,581 $ 277,731 Third-party delivery sales 21,440 19,829 43,754 40,855 Take-out sales 16,795 17,014 33,220 33,765 Total restaurant sales $ 212,587 $ 181,682 $ 420,555 $ 352,351 Franchise revenues: Royalty and system fund contributions $ 3,555 $ 2,706 $ 6,916 $ 5,085 Initial fees 158 65 235 129 Total franchise revenues $ 3,713 $ 2,771 $ 7,151 $ 5,214 Total revenues $ 216,300 $ 184,453 $ 427,706 $ 357,565 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivable consisted of the following: (in thousands) JUNE 25, 2023 DECEMBER 25, 2022 Receivables from third-party delivery providers $ 1,334 $ 974 Receivables from franchisees 1,401 1,076 Receivables from vendors 1,086 920 Receivables related to gift card sales 581 1,565 Other receivables 64 1,629 Total accounts receivable $ 4,466 $ 6,164 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (in thousands) JUNE 25, 2023 DECEMBER 25, 2022 Construction liabilities $ 10,918 $ 6,908 Sales tax 4,472 3,791 Self-insurance and general liability reserves 2,385 1,529 Utilities 1,632 1,468 Interest payable 1,808 1,506 Credit card fees 1,228 1,043 Property tax 1,122 951 Contingent rent 769 811 Common area maintenance 803 680 Other 7,184 4,042 Total accrued liabilities $ 32,321 $ 22,729 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | Long-term debt, net consisted of the following: JUNE 25, 2023 DECEMBER 25, 2022 (in thousands) Balance Interest Rate Balance Interest Rate Term Facility $ 96,250 7.25% $ 98,125 5.89% Finance lease liabilities 1,217 1,433 Financing obligation 3,050 3,050 Less: Unamortized debt discount and deferred issuance costs (1,462) (1,683) Total Debt, net 99,055 100,925 Less: Current portion of long-term debt (6,881) (6,257) Long-term debt, net $ 92,174 $ 94,668 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 25, 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 JUNE 25, 2023 DECEMBER 25, 2022 Operating lease right-of-use assets Operating lease right-of-use assets $ 369,587 $ 352,373 Finance lease assets Property, fixtures and equipment, net 1,126 1,332 Total lease assets $ 370,713 $ 353,705 Operating lease liabilities (1) - current Current portion of operating lease liabilities $ 39,734 $ 38,936 Operating lease liabilities - non-current Operating lease liabilities 387,868 366,113 Finance lease liabilities - current Current portion of long-term debt 631 632 Finance lease liabilities - non-current Long-term debt, net 586 801 Total lease liabilities $ 428,819 $ 406,482 _____________ (1) Excludes all variable lease expense. Supplemental information related to leases was as follows: TWENTY-SIX WEEKS ENDED JUNE 25, 2023 JUNE 26, 2022 Weighted-average remaining lease term (in years) Operating leases 14.2 15.0 Finance leases 2.6 3.1 Weighted-average discount rate (1) Operating leases 8.5 % 8.7 % Finance leases 7.4 % 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 TWENTY-SIX WEEKS ENDED JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Operating lease expense Other restaurant operating expenses $ 13,472 $ 12,130 $ 26,441 $ 24,176 Variable lease expense Food and beverage costs 4,126 3,594 8,006 6,993 Finance lease expense: Amortization of leased assets Depreciation and amortization 127 132 254 267 Interest on lease liabilities Interest expense 26 39 52 76 Total lease expense (1) $ 17,751 $ 15,895 $ 34,753 $ 31,512 _____________ (1) Includes contingent rent expense of $0.5 million and $0.4 million during the thirteen weeks ended June 25, 2023 and June 26, 2022, respectively, and $0.9 million and $0.8 million during the twenty-six weeks ended June 25, 2023 and June 26, 2022, respectively. Supplemental cash flow information related to leases was as follows: TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 21,247 $ 20,229 Operating cash flows - finance leases $ 52 $ 76 Financing cash flows - finance leases $ 259 $ 252 |
Operating Lease Maturity | As of June 25, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) OPERATING LEASES FINANCE LEASES Fiscal year 2023 $ 20,647 $ 351 2024 47,853 603 2025 53,407 244 2026 52,971 55 2027 52,158 43 Thereafter 541,589 41 Total future minimum lease payments (1) 768,625 1,337 Less: imputed interest (341,023) (120) Total present value of lease liabilities $ 427,602 $ 1,217 _____________ (1) Excludes approxim ately $83.8 million of exec |
Finance Lease Maturity | As of June 25, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) OPERATING LEASES FINANCE LEASES Fiscal year 2023 $ 20,647 $ 351 2024 47,853 603 2025 53,407 244 2026 52,971 55 2027 52,158 43 Thereafter 541,589 41 Total future minimum lease payments (1) 768,625 1,337 Less: imputed interest (341,023) (120) Total present value of lease liabilities $ 427,602 $ 1,217 _____________ (1) Excludes approxim ately $83.8 million of exec |
Equity and Stock-Based Compen_2
Equity and Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Options Roll Forward | A summary of stock option activity during the twenty-six weeks ended June 25, 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 (224,620) $ 8.93 Forfeited (51,454) $ 12.45 Outstanding, June 25, 2023 4,839,600 $ 10.15 $ 28,820 5.6 Exercisable, June 25, 2023 2,966,385 $ 9.63 $ 19,187 5.1 |
Schedule of Fair Value Non-vested Options at Grant Dates | A summary of the non-vested stock option activity during the twenty-six weeks ended June 25, 2023 is as follows: NUMBER OF OPTIONS WEIGHTED AVERAGE GRANT DATE FAIR VALUE Nonvested, December 25, 2022 2,324,316 $ 7.31 Vested (399,647) $ 5.95 Forfeited (51,454) $ 5.37 Nonvested, June 25, 2023 1,873,215 $ 7.65 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of activity for restricted stock units during the twenty-six weeks ended June 25, 2023 is as follows: RESTRICTED STOCK UNITS WEIGHTED AVERAGE AGGREGATE INTRINSIC VALUE (in thousands) Outstanding, December 25, 2022 38,311 $ 14.36 $ 544 Granted 532,700 $ 15.64 Vested (38,311) $ 14.36 Forfeited (1,288) $ 15.52 Outstanding, June 25, 2023 531,412 $ 15.64 $ 8,556 |
Schedule of Unrecognized Stock-based Compensation Expense | The following represents unrecognized stock-based compensation expense and the remaining weighted average vesting period as of June 25, 2023: UNRECOGNIZED STOCK-BASED COMPENSATION EXPENSE (in thousands) REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years) Stock options $ 6,346 1.1 Restricted stock units $ 7,497 1.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) and Effective Income Tax Rate | THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands) JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Income before income taxes $ 9,991 $ 4,043 $ 23,909 $ 10,960 Income tax expense $ (2,032) $ (1,336) $ (6,590) $ (3,613) Effective income tax rate 20.3 % 33.0 % 27.6 % 33.0 % |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 25, 2023 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Net Income Per Common Share | The following table sets forth the computations of basic and diluted net income per common share: THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED (in thousands, except share and per share data) JUNE 25, 2023 JUNE 26, 2022 JUNE 25, 2023 JUNE 26, 2022 Numerator: Net income $ 7,959 $ 2,707 $ 17,319 $ 7,347 Denominator: Weighted average common shares outstanding - basic 59,385,510 59,057,991 59,314,470 59,053,219 Weighted average common shares outstanding - diluted 60,944,836 59,888,029 60,770,441 59,933,003 Net income per common share - basic $ 0.13 $ 0.05 $ 0.29 $ 0.12 Net income per common share - diluted $ 0.13 $ 0.05 $ 0.28 $ 0.12 Stock options outstanding not included in diluted net income per common share as their effect is anti-dilutive 1,005,061 2,213,408 1,005,359 1,567,102 Restricted stock units outstanding not included in diluted net income per share as their effect is anti-dilutive 9,065 11,185 4,533 — |
Nature of Business and Organi_2
Nature of Business and Organization - Additional Information (Details) | Jun. 25, 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 | 381 |
Franchise-owned restaurants | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 111 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 01, 2023 USD ($) restaurant | Jun. 25, 2023 USD ($) | Jun. 26, 2022 USD ($) | Jun. 25, 2023 USD ($) | Jun. 26, 2022 USD ($) | |
Asset Acquisition [Line Items] | |||||
Contract with customer, liability, franchise fee revenue, revenue recognized, business combination | $ 78 | $ 0 | $ 78 | $ 0 | |
Series of Individually Immaterial Business Acquisitions | |||||
Asset Acquisition [Line Items] | |||||
Number of businesses acquired | restaurant | 6 | ||||
Payments to acquire businesses, gross | $ 8,200 | ||||
Business acquisition, transaction costs | 300 | ||||
Contract with customer, liability, franchise fee revenue, revenue recognized, business combination | 100 | ||||
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | 1,800 | ||||
Business combination, pro forma information, earnings or loss of acquiree since acquisition date, actual | $ 300 |
Business Acquisition - Schedule
Business Acquisition - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ in Thousands | Jun. 25, 2023 | May 01, 2023 | Dec. 25, 2022 |
Asset Acquisition [Line Items] | |||
Goodwill (primarily expected synergies and assembled workforce; tax deductible) | $ 350,491 | $ 345,219 | |
Series of Individually Immaterial Business Acquisitions | |||
Asset Acquisition [Line Items] | |||
Cash | $ 9 | ||
Inventory | 57 | ||
Prepaid rent and other assets | 67 | ||
Property, fixtures and equipment | 1,840 | ||
Reacquired rights | 1,342 | ||
Goodwill (primarily expected synergies and assembled workforce; tax deductible) | 5,272 | ||
Unfavorable leasehold positions, net | (330) | ||
Gift card liabilities assumed | $ (80) |
Revenues - Detail of Contract L
Revenues - Detail of Contract Liabilities (Details) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Deferred gift card revenue | $ 3,154 | $ 4,897 |
Deferred franchise fee revenue - current | 318 | 296 |
Total current deferred revenues | 3,472 | 5,193 |
Deferred franchise fee revenue - non-current | $ 2,354 | $ 2,472 |
Revenues - Change in Contract L
Revenues - Change in Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | |
Changes in contract liabilities, deferred gift card revenue | ||||
Balance, beginning of period | $ 2,909 | $ 2,752 | $ 4,897 | $ 4,410 |
Gift card sales | 3,027 | 2,362 | 4,561 | 3,578 |
Gift card redemptions | (2,601) | (2,089) | (5,805) | (4,679) |
Gift card breakage | (261) | (220) | (579) | (504) |
Gift card liabilities assumed through acquisitions | 80 | 0 | 80 | 0 |
Balance, end of period | 3,154 | 2,805 | 3,154 | 2,805 |
Changes in contract liabilities, deferred franchise fee revenue | ||||
Balance, beginning of period | 2,725 | 2,592 | 2,768 | 2,536 |
Cash received | 105 | 110 | 139 | 230 |
Franchise revenues recognized | (80) | (65) | (157) | (129) |
Business combinations - franchise revenues recognized | (78) | 0 | (78) | 0 |
Balance, end of period | $ 2,672 | $ 2,637 | $ 2,672 | $ 2,637 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 216,300 | $ 184,453 | $ 427,706 | $ 357,565 |
Restaurant sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 212,587 | 181,682 | 420,555 | 352,351 |
In-restaurant dining sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 174,352 | 144,839 | 343,581 | 277,731 |
Third-party delivery sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 21,440 | 19,829 | 43,754 | 40,855 |
Take-out sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 16,795 | 17,014 | 33,220 | 33,765 |
Franchise revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,713 | 2,771 | 7,151 | 5,214 |
Royalty and system fund contributions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,555 | 2,706 | 6,916 | 5,085 |
Initial fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 158 | $ 65 | $ 235 | $ 129 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Receivables [Abstract] | ||
Receivables from third-party delivery providers | $ 1,334 | $ 974 |
Receivables from franchisees | 1,401 | 1,076 |
Receivables from vendors | 1,086 | 920 |
Receivables related to gift card sales | 581 | 1,565 |
Other receivables | 64 | 1,629 |
Total accounts receivable | $ 4,466 | $ 6,164 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Payables and Accruals [Abstract] | ||
Construction liabilities | $ 10,918 | $ 6,908 |
Sales tax | 4,472 | 3,791 |
Self-insurance and general liability reserves | 2,385 | 1,529 |
Utilities | 1,632 | 1,468 |
Interest payable | 1,808 | 1,506 |
Credit card fees | 1,228 | 1,043 |
Property tax | 1,122 | 951 |
Contingent rent | 769 | 811 |
Common area maintenance | 803 | 680 |
Other | 7,184 | 4,042 |
Total accrued liabilities | $ 32,321 | $ 22,729 |
Debt - Long-Term Debt, Net (Det
Debt - Long-Term Debt, Net (Details) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
Debt Instrument [Line Items] | ||
Finance lease liabilities | $ 1,217 | $ 1,433 |
Less: Unamortized debt discount and deferred issuance costs | (1,462) | (1,683) |
Total Debt, net | 99,055 | 100,925 |
Less: Current portion of long-term debt | (6,881) | (6,257) |
Long-term debt, net | 92,174 | 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 | 7.25% | 5.89% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | Mar. 27, 2023 | Jun. 25, 2023 | Dec. 25, 2022 | Oct. 06, 2021 |
New Facilities | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 0.10% | |||
New Facilities | Minimum | Adjusted Leverage Rate | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.25% | |||
New Facilities | Minimum | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2.25% | |||
New Facilities | Maximum | Adjusted Leverage Rate | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2% | |||
New Facilities | Maximum | Secured Overnight Financing Rate (SOFR) | ||||
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 | $ 96 | $ 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 | Jun. 25, 2023 | Dec. 25, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 369,587 | $ 352,373 |
Finance lease assets | 1,126 | 1,332 |
Total lease assets | 370,713 | 353,705 |
Operating lease liabilities - current | 39,734 | 38,936 |
Operating lease liabilities - non-current | 387,868 | 366,113 |
Finance lease liabilities - current | 631 | 632 |
Finance lease liabilities - non-current | 586 | 801 |
Total lease liabilities | $ 428,819 | $ 406,482 |
Finance lease, right-of-use asset, statement of financial position [Extensible Enumeration] | Property, fixtures and equipment, net of accumulated depreciation of $162,238 and $145,720, respectively | Property, fixtures and equipment, net of accumulated depreciation of $162,238 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 | 6 Months Ended | ||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 13,472 | $ 12,130 | $ 26,441 | $ 24,176 |
Variable lease expense | 4,126 | 3,594 | 8,006 | 6,993 |
Amortization of leased assets | 127 | 132 | 254 | 267 |
Interest on lease liabilities | 26 | 39 | 52 | 76 |
Total lease expense | 17,751 | 15,895 | 34,753 | 31,512 |
Contingent rent expense | $ 500 | $ 400 | $ 900 | $ 800 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2023 | Jun. 26, 2022 | |
Leases [Abstract] | ||
Operating cash flows - operating leases | $ 21,247 | $ 20,229 |
Operating cash flows - finance leases | 52 | 76 |
Financing cash flows - finance leases | $ 259 | $ 252 |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases (Details) | Jun. 25, 2023 | Jun. 26, 2022 |
Weighted-average remaining lease term (in years) | ||
Operating leases | 14 years 2 months 12 days | 15 years |
Finance leases | 2 years 7 months 6 days | 3 years 1 month 6 days |
Weighted-average discount rate | ||
Operating leases | 8.50% | 8.70% |
Finance leases | 7.40% | 7.80% |
Leases - Operating and Finance
Leases - Operating and Finance Lease Maturity (Details) - USD ($) $ in Thousands | Jun. 25, 2023 | Dec. 25, 2022 |
OPERATING LEASES | ||
2023 | $ 20,647 | |
2024 | 47,853 | |
2025 | 53,407 | |
2026 | 52,971 | |
2027 | 52,158 | |
Thereafter | 541,589 | |
Total future minimum lease payments | 768,625 | |
Less: imputed interest | (341,023) | |
Total present value of lease liabilities | 427,602 | |
FINANCE LEASES | ||
2023 | 351 | |
2024 | 603 | |
2025 | 244 | |
2026 | 55 | |
2027 | 43 | |
Thereafter | 41 | |
Total future minimum lease payments | 1,337 | |
Less: imputed interest | (120) | |
Total present value of lease liabilities | 1,217 | $ 1,433 |
Executed operating leases that have not commenced | $ 83,800 |
Equity and Stock-Based Compen_3
Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jul. 03, 2023 | Jun. 13, 2023 | May 18, 2023 | Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | Jun. 23, 2023 | Dec. 23, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Payments of stock issuance costs | $ 1,032 | $ 1,829 | |||||||
Closing price of common stock on Nasdaq (in dollars per share) | $ 16.10 | $ 14.21 | |||||||
Stock-based compensation expense | $ 2,100 | $ 2,800 | 3,600 | 5,100 | |||||
Stock-based compensation | 3,622 | 5,102 | |||||||
Share-based payment arrangement, expense, tax benefit | $ 400 | $ 100 | $ 600 | $ 100 | |||||
Secondary Offering | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares of common stock sold (in shares) | 3,000,000 | 3,500,000 | |||||||
Payments of stock issuance costs | $ 1,000 | ||||||||
Over-Allotment Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares of common stock sold (in shares) | 525,000 | ||||||||
Over-Allotment Option | Subsequent Event | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares of common stock sold (in shares) | 450,000 |
Equity and Stock-Based Compen_4
Equity and Stock-Based Compensation - Schedule of Stock Options Roll Forward (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 25, 2023 | Dec. 25, 2022 | |
NUMBER OF OPTIONS | ||
Options outstanding, beginning of period (in shares) | 5,115,674 | |
Options exercised (in shares) | (224,620) | |
Options forfeited (in shares) | (51,454) | |
Options outstanding, end of period (in shares) | 4,839,600 | 5,115,674 |
Options exercisable, end of period (in shares) | 2,966,385 | |
WEIGHTED AVERAGE EXERCISE PRICE | ||
Options outstanding, beginning of period, weighted average exercise price (in dollars per share) | $ 10.12 | |
Options exercised, weighted average exercise price (in dollars per share) | 8.93 | |
Options forfeited, weighted average exercise price (in dollars per share) | 12.45 | |
Options outstanding, end of period, weighted average exercise price (in dollars per share) | 10.15 | $ 10.12 |
Options exercisable, end of period, weighted average exercise price (in dollars per share) | $ 9.63 | |
AGGREGATE INTRINSIC VALUE (in thousands) | ||
Options outstanding, beginning of period, aggregate intrinsic value | $ 20,981 | |
Options outstanding, end of period, aggregate intrinsic value | 28,820 | $ 20,981 |
Options exercisable, end of period, aggregate intrinsic value | $ 19,187 | |
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average remaining contractual term | 5 years 7 months 6 days | 6 years 1 month 6 days |
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted average remaining contractual term | 5 years 1 month 6 days |
Equity and Stock-Based Compen_5
Equity and Stock-Based Compensation - Schedule of Fair Value Non-vested Options at Grant Dates (Details) | 6 Months Ended |
Jun. 25, 2023 $ / shares shares | |
NUMBER OF OPTIONS | |
Beginning balance (in shares) | shares | 2,324,316 |
Vested (in shares) | shares | (399,647) |
Forfeited (in shares) | shares | (51,454) |
Ending balance (in shares) | shares | 1,873,215 |
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 | 5.95 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 5.37 |
Ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.65 |
Equity and Stock-Based Compen_6
Equity and Stock-Based Compensation - Schedule of Nonvested Restricted Stock Units Activity (Details) - Restricted stock units $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 25, 2023 USD ($) $ / shares shares | |
RESTRICTED STOCK UNITS | |
Beginning balance (in shares) | shares | 38,311 |
Granted (in shares) | shares | 532,700 |
Vested (in shares) | shares | (38,311) |
Forfeited (in shares) | shares | (1,288) |
Ending balance (in shares) | shares | 531,412 |
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 | 15.64 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 14.36 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 15.52 |
Ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 15.64 |
AGGREGATE INTRINSIC VALUE (in thousands) | |
Beginning balance outstanding, aggregate intrinsic value | $ | $ 544 |
Ending outstanding, aggregate intrinsic value | $ | $ 8,556 |
Equity and Stock-Based Compen_7
Equity and Stock-Based Compensation - Schedule of Unrecognized Stock-based Compensation Expense (Details) $ in Thousands | 6 Months Ended |
Jun. 25, 2023 USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock compensation expense | $ 6,346 |
REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years) | 1 year 1 month 6 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock compensation expense | $ 7,497 |
REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years) | 1 year 8 months 12 days |
Interest Rate Swaps - Additiona
Interest Rate Swaps - Additional Information (Details) - Interest Rate Swap $ in Millions | Jun. 23, 2023 USD ($) |
Derivative [Line Items] | |
Derivative, notional amount | $ 90 |
Derivative, average fixed interest rate | 4.16% |
Cash flow hedge gain (loss) to be reclassified within 12 months | $ (0.9) |
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 | 6 Months Ended | ||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 9,991 | $ 4,043 | $ 23,909 | $ 10,960 |
Income tax expense | $ (2,032) | $ (1,336) | $ (6,590) | $ (3,613) |
Effective income tax rate | 20.30% | 33% | 27.60% | 33% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | 3 Months Ended |
Jun. 25, 2023 USD ($) | |
Income Tax Disclosure [Abstract] | |
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | $ (1) |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2023 | Jun. 26, 2022 | Jun. 25, 2023 | Jun. 26, 2022 | |
Numerator | ||||
Net income | $ 7,959 | $ 2,707 | $ 17,319 | $ 7,347 |
Net income | $ 7,959 | $ 2,707 | $ 17,319 | $ 7,347 |
Denominator | ||||
Weighted average common shares outstanding - basic (in shares) | 59,385,510 | 59,057,991 | 59,314,470 | 59,053,219 |
Weighted average common shares outstanding - diluted (in shares) | 60,944,836 | 59,888,029 | 60,770,441 | 59,933,003 |
Net income per common share - basic (in dollars per share) | $ 0.13 | $ 0.05 | $ 0.29 | $ 0.12 |
Net income per common share - diluted (in dollars per share) | $ 0.13 | $ 0.05 | $ 0.28 | $ 0.12 |
Stock options | ||||
Denominator | ||||
Option awards and restricted stock units outstanding not included in diluted net income per common share as their effect is anti-dilutive (in shares) | 1,005,061 | 2,213,408 | 1,005,359 | 1,567,102 |
Restricted stock units | ||||
Denominator | ||||
Option awards and restricted stock units outstanding not included in diluted net income per common share as their effect is anti-dilutive (in shares) | 9,065 | 11,185 | 4,533 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Series of Individually Immaterial Business Acquisitions $ in Millions | Jun. 30, 2023 USD ($) restaurant | Jun. 26, 2023 USD ($) restaurant | May 01, 2023 USD ($) restaurant |
Subsequent Event [Line Items] | |||
Number of businesses acquired | 6 | ||
Payments to acquire businesses, gross | $ | $ 8.2 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Number of businesses acquired | 6 | 5 | |
Payments to acquire businesses, gross | $ | $ 13.9 | $ 8.6 | |
Number of under development businesses acquired | 1 |