First Watch Restaurant (FWRG) 10-Q 1 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 24, 2023	Oct. 30, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 24, 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		59,817,629
Entity Central Index Key	0001789940
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 24, 2023	Dec. 25, 2022
Current assets:
Cash and cash equivalents	$ 39,923	$ 49,672
Restricted cash	326	251
Accounts receivable	4,990	6,164
Inventory	4,791	5,028
Prepaid expenses	4,697	5,800
Derivative assets, current	833	0
Other current assets	3,005	373
Total current assets	58,565	67,288
Goodwill	356,969	345,219
Intangible assets, net	150,280	143,151
Operating lease right-of-use assets	400,764	352,373
Property, fixtures and equipment, net of accumulated depreciation of $171,582 and $145,720, respectively	237,527	195,117
Derivative assets, long-term	263	0
Other long-term assets	1,478	1,298
Total assets	1,205,846	1,104,446
Current liabilities:
Accounts payable	5,550	7,590
Accrued liabilities	33,840	22,729
Accrued compensation	18,258	17,899
Deferred revenues	2,655	5,193
Current portion of operating lease liabilities	42,856	38,936
Current portion of long-term debt	6,891	6,257
Note payable	0	1,376
Total current liabilities	110,050	99,980
Operating lease liabilities	420,496	366,113
Long-term debt, net	90,949	94,668
Deferred income taxes	24,003	17,166
Other long-term liabilities	3,257	3,384
Total liabilities	648,755	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; 59,794,999 and 59,211,019 shares issued and outstanding at September 24, 2023 and December 25, 2022, respectively	597	592
Additional paid-in capital	631,064	620,675
Accumulated deficit	(75,395)	(98,132)
Accumulated other comprehensive income	825	0
Total equity	557,091	523,135
Total liabilities and equity	$ 1,205,846	$ 1,104,446

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 24, 2023	Dec. 25, 2022
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 171,582	$ 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)	59,794,999	59,211,019
Common stock, shares outstanding (in shares)	59,794,999	59,211,019

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Revenues:
Total revenues	$ 219,212	$ 186,852	$ 646,918	$ 544,417
Restaurant operating expenses (exclusive of depreciation and amortization shown below):
Food and beverage costs	48,709	44,578	143,028	129,200
Labor and other related expenses	73,137	61,262	212,312	175,091
Other restaurant operating expenses	33,694	29,685	97,572	85,761
Occupancy expenses	17,555	15,091	49,950	44,318
Pre-opening expenses	2,035	1,490	4,323	3,569
General and administrative expenses	25,179	21,689	73,168	63,194
Depreciation and amortization	10,434	8,679	28,992	25,302
Impairments and loss on disposal of assets	185	338	618	572
Transaction expenses, net	546	1,419	2,543	1,976
Total operating costs and expenses	211,474	184,231	612,506	528,983
Income from operations	7,738	2,621	34,412	15,434
Interest expense	(1,848)	(1,362)	(5,792)	(3,494)
Other income, net	771	116	1,950	395
Income before income taxes	6,661	1,375	30,570	12,335
Income tax expense	(1,243)	(1,329)	(7,833)	(4,942)
Net income	5,418	46	22,737	7,393
Other comprehensive income:
Unrealized gain on derivatives	1,257	0	1,097	0
Income tax related to other comprehensive income	(272)	0	(272)	0
Income tax related to other comprehensive income	985	0	825	0
Comprehensive income	$ 6,403	$ 46	$ 23,562	$ 7,393
Net income per common share - basic (in dollars per share)	$ 0.09	$ 0	$ 0.38	$ 0.13
Net income per common share - diluted (in dollars per share)	$ 0.09	$ 0	$ 0.37	$ 0.12
Weighted average common shares outstanding - basic (in shares)	59,646,027	59,089,831	59,424,989	59,065,423
Weighted average common shares outstanding - diluted (in shares)	61,562,524	60,464,062	61,016,105	60,088,622
Restaurant sales
Revenues:
Total revenues	$ 215,495	$ 183,978	$ 636,050	$ 536,329
Franchise revenues
Revenues:
Total revenues	$ 3,717	$ 2,874	$ 10,868	$ 8,088

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income
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	7,393			7,393
Stock-based compensation	7,821		7,821
Common stock issued under stock-based compensation plans, net (in shares)		68,277
Common stock issued under stock-based compensation plans, net	628	$ 1	627
Ending balance (in shares) at Sep. 25, 2022		59,116,723
Ending balance at Sep. 25, 2022	520,271	$ 591	617,326	(97,646)
Beginning balance (in shares) at Jun. 26, 2022		59,075,562
Beginning balance at Jun. 26, 2022	517,122	$ 591	614,223	(97,692)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	46			46
Stock-based compensation	2,719		2,719
Common stock issued under stock-based compensation plans, net (in shares)		41,161
Common stock issued under stock-based compensation plans, net	384	$ 0	384
Ending balance (in shares) at Sep. 25, 2022		59,116,723
Ending balance at Sep. 25, 2022	520,271	$ 591	617,326	(97,646)
Beginning balance (in shares) at Dec. 25, 2022		59,211,019
Beginning balance at Dec. 25, 2022	523,135	$ 592	620,675	(98,132)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,737			22,737
Stock-based compensation	5,386		5,386
Common stock issued under stock-based compensation plans, net (in shares)		583,980
Common stock issued under stock-based compensation plans, net	5,008	$ 5	5,003
Other comprehensive income, net of tax	825				825
Ending balance (in shares) at Sep. 24, 2023		59,794,999
Ending balance at Sep. 24, 2023	557,091	$ 597	631,064	(75,395)	825
Beginning balance (in shares) at Jun. 25, 2023		59,463,950
Beginning balance at Jun. 25, 2023	545,837	$ 594	626,216	(80,813)	(160)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,418			5,418
Stock-based compensation	1,764		1,764
Common stock issued under stock-based compensation plans, net (in shares)		331,049
Common stock issued under stock-based compensation plans, net	3,087	$ 3	3,084
Other comprehensive income, net of tax	985				985
Ending balance (in shares) at Sep. 24, 2023		59,794,999
Ending balance at Sep. 24, 2023	$ 557,091	$ 597	$ 631,064	$ (75,395)	$ 825

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022
Cash flows from operating activities:
Net income	$ 22,737	$ 7,393
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28,992	25,302
Stock-based compensation	5,386	7,821
Non-cash operating lease costs	14,132	11,907
Non-cash portion of gain on lease modifications	(123)	(84)
Deferred income taxes	6,566	4,353
Amortization of debt discount and deferred issuance costs	332	334
Impairments and loss on disposal of assets	618	572
Gain on insurance proceeds	(643)	0
Changes in assets and liabilities:
Accounts receivable	1,174	1,018
Inventory	458	(93)
Prepaid expenses	1,115	1,346
Other assets, current and long-term	(2,758)	(2,176)
Accounts payable	(2,072)	(3,560)
Accrued liabilities and other long-term liabilities	4,997	6,032
Accrued compensation and deferred payroll taxes	359	(5,890)
Deferred revenues, current and long-term	(3,322)	(2,061)
Operating lease liabilities	(4,904)	(5,570)
Net cash provided by operating activities	73,044	46,644
Cash flows from investing activities:
Capital expenditures	(52,770)	(44,985)
Acquisitions, net of cash acquired	(30,422)	0
Purchase of intangible assets	(84)	(715)
Insurance proceeds	643	0
Net cash used in investing activities	(82,633)	(45,700)
Cash flows from financing activities:
Repayments of note payable	(1,376)	(2,352)
Repayments of long-term debt, including finance lease liabilities	(3,519)	(1,635)
Proceeds from exercise of stock options, net of employee taxes paid	5,008	628
Contingent consideration payment	(198)	(78)
Net cash used in financing activities	(85)	(3,437)
Net decrease in cash and cash equivalents and restricted cash	(9,674)	(2,493)
Cash and cash equivalents and restricted cash, beginning of period	49,923	52,115
Cash and cash equivalents and restricted cash, end of period	40,249	49,622
Supplemental cash flow information:
Cash paid for interest	5,362	2,800
Cash paid for income taxes, net of refunds	1,337	777
Supplemental disclosures of non-cash investing and financing activities:
Leased assets obtained in exchange for new operating lease liabilities	64,660	37,961
Leased assets obtained in exchange for new finance lease liabilities	145	89
Remeasurements and terminations of operating lease assets and lease liabilities	(1,453)	(1,861)
Remeasurements and terminations of finance lease assets and lease liabilities	(43)	(191)
Increase in liabilities from acquisition of property, fixtures and equipment	$ 6,202	$ 2,148

Nature of Business and Organiza

Nature of Business and Organization	9 Months Ended
	Sep. 24, 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 tes operating under the “First Watch” trade name, which are focused on made-to-order breakfast, brunch and lunch. The Company does not operate outside of the United States and all of its assets are located in the United States. As of September 24, 2023, the Company operated 402 company-owned restaurants and 103 franchise-owned restaurants.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 24, 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 September 24, 2023 and September 25, 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 Acquisitions

Business Acquisitions	9 Months Ended
	Sep. 24, 2023
Business Combination and Asset Acquisition [Abstract]
Business Acquisition	Business Acquisitions During the thirty-nine weeks ended September 24, 2023, the Company acquired substantially all the assets associated with 17 franchise operated First Watch restaurants. The purchase price was allocated to the fair value of assets acquired and liabilities assumed, which are based on preliminary valuations and are subject to adjustment as additional information is available. The details of each acquisition are as follows: (dollars in thousands) Date of acquisition May 1, 2023 June 26, 2023 August 9, 2023 Number of acquired restaurants 6 5 6 Number of acquired restaurants under development — — 1 Purchase price (cash) $ 8,177 $ 8,656 $ 14,127 Transaction costs incurred $ 362 $ 334 $ 373 Deferred franchise fees recognized as a result of termination of $ 78 $ 123 $ 200 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ 9 $ 6 $ 16 Inventory $ 57 $ 62 $ 102 Prepaid rent and other assets $ 67 $ 33 $ 89 Property, fixtures and equipment $ 1,840 $ 3,783 $ 6,364 Reacquired rights $ 1,342 $ 2,304 $ 4,358 Goodwill (primarily expected synergies and assembled workforce; tax deductible) $ 5,272 $ 2,667 $ 3,811 Unfavorable leasehold positions, net $ (330) $ (70) $ (530) Accounts payable $ — $ — $ (32) Deferred revenues - gift card liabilities assumed $ (80) $ (129) $ (51)

Revenues

Revenues	9 Months Ended
	Sep. 24, 2023
Revenue from Contract with Customer [Abstract]
Revenues	Revenues The following tables include a detail of liabilities from contracts with customers: (in thousands) SEPTEMBER 24, 2023 DECEMBER 25, 2022 Deferred revenues: Deferred gift card revenue $ 2,370 $ 4,897 Deferred franchise fee revenue - current 285 296 Total current deferred revenues $ 2,655 $ 5,193 Other long-term liabilities: Deferred franchise fee revenue - non-current $ 1,949 $ 2,472 Changes in deferred gift card contract liabilities were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Deferred gift card revenue: Balance, beginning of period $ 3,154 $ 2,805 $ 4,897 $ 4,410 Gift card sales 1,185 1,218 5,746 4,796 Gift card redemptions (1,921) (1,720) (7,726) (6,399) Gift card breakage (228) (192) (807) (696) Gift card liabilities assumed through acquisitions 180 — 260 — Balance, end of period $ 2,370 $ 2,111 $ 2,370 $ 2,111 Changes in deferred franchise fee contract liabilities were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Deferred franchise fee revenue: Balance, beginning of period $ 2,672 $ 2,637 $ 2,768 $ 2,536 Cash received 36 204 175 434 Franchise revenues recognized (150) (67) (307) (196) Business combinations - franchise revenues recognized (323) — (401) — Balance, end of period $ 2,235 $ 2,774 $ 2,235 $ 2,774 Revenues recognized disaggregated by type were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Restaurant sales: In-restaurant dining sales $ 176,696 $ 147,491 $ 520,277 $ 425,222 Third-party delivery sales 22,011 20,105 65,765 60,960 Take-out sales 16,788 16,382 50,008 50,147 Total restaurant sales $ 215,495 $ 183,978 $ 636,050 $ 536,329 Franchise revenues: Royalty and system fund contributions $ 3,244 $ 2,807 $ 10,160 $ 7,892 Initial fees 473 67 708 196 Total franchise revenues $ 3,717 $ 2,874 $ 10,868 $ 8,088 Total revenues $ 219,212 $ 186,852 $ 646,918 $ 544,417

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 24, 2023
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable consisted of the following: (in thousands) SEPTEMBER 24, 2023 DECEMBER 25, 2022 Receivables from third-party delivery providers $ 1,414 $ 974 Receivables from franchisees 1,184 1,076 Receivables from vendors 1,239 920 Receivables related to gift card sales 323 1,565 Other receivables 587 1,629 Total accounts receivable $ 4,990 $ 6,164

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 24, 2023
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) SEPTEMBER 24, 2023 DECEMBER 25, 2022 Construction liabilities $ 13,110 $ 6,908 Sales tax 4,478 3,791 Self-insurance and general liability reserves 1,446 1,529 Utilities 1,840 1,468 Interest payable 1,847 1,506 Credit card fees 1,220 1,043 Property tax 1,355 951 Contingent rent 1,063 811 Common area maintenance 668 680 Other 6,813 4,042 Total accrued liabilities $ 33,840 $ 22,729

Debt

Debt	9 Months Ended
	Sep. 24, 2023
Debt Disclosure [Abstract]
Debt	Debt Long-term debt, net consisted of the following: SEPTEMBER 24, 2023 DECEMBER 25, 2022 (dollars in thousands) Balance Interest Rate Balance Interest Rate Term Facility $ 95,000 7.59% $ 98,125 5.89% Finance lease liabilities 1,141 1,433 Financing obligation 3,050 3,050 Less: Unamortized debt discount and deferred issuance costs (1,351) (1,683) Total Debt, net 97,840 100,925 Less: Current portion of long-term debt (6,891) (6,257) Long-term debt, net $ 90,949 $ 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 September 24, 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	9 Months Ended
	Sep. 24, 2023
Leases [Abstract]
Leases	Leases The following table includes a detail of lease assets and liabilities: (in thousands) Consolidated Balance Sheets Classification SEPTEMBER 24, 2023 DECEMBER 25, 2022 Operating lease right-of-use assets Operating lease right-of-use assets $ 400,764 $ 352,373 Finance lease assets Property, fixtures and equipment, net 1,062 1,332 Total lease assets $ 401,826 $ 353,705 Operating lease liabilities (1) - current Current portion of operating lease liabilities $ 42,856 $ 38,936 Operating lease liabilities - non-current Operating lease liabilities 420,496 366,113 Finance lease liabilities - current Current portion of long-term debt 641 632 Finance lease liabilities - non-current Long-term debt, net 500 801 Total lease liabilities $ 464,493 $ 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 THIRTY-NINE WEEKS ENDED SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Operating lease expense Other restaurant operating expenses $ 14,492 $ 12,667 $ 40,933 $ 36,843 Variable lease expense Food and beverage costs 4,438 3,676 12,444 10,669 Finance lease expense: Amortization of leased assets Depreciation and amortization 126 127 380 394 Interest on lease liabilities Interest expense 20 25 72 101 Total lease expense (1) $ 19,076 $ 16,495 $ 53,829 $ 48,007 _________________ (1) Includes contingent rent expense of $0.5 million and $0.4 million during the thirteen weeks ended September 24, 2023 and September 25, 2022, respectively, and $1.4 million and $1.2 million during the thirty-nine weeks ended September 24, 2023 and September 25, 2022, respectively. Supplemental cash flow information related to leases was as follows: THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 31,707 $ 30,506 Operating cash flows - finance leases $ 72 $ 101 Financing cash flows - finance leases $ 394 $ 385 Supplemental information related to leases was as follows: THIRTY-NINE WEEKS ENDED SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Weighted-average remaining lease term (in years) Operating leases 14.0 14.8 Finance leases 2.7 3.0 Weighted-average discount rate (1) Operating leases 8.4 % 8.6 % Finance leases 7.2 % 7.7 % ________________ (1) Based on the Company’s incremental borrowing rate. As of September 24, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) OPERATING LEASES FINANCE LEASES Fiscal year 2023 $ 11,382 $ 208 2024 47,813 600 2025 57,841 254 2026 57,555 67 2027 56,701 56 Thereafter 589,118 67 Total future minimum lease payments (1) 820,410 1,252 Less: imputed interest (357,058) (111) Total present value of lease liabilities $ 463,352 $ 1,141 _________________ (1) Excludes approxim ately $76.6 million of exec uted operating leases that have not commenced as of September 24, 2023.
Leases	Leases The following table includes a detail of lease assets and liabilities: (in thousands) Consolidated Balance Sheets Classification SEPTEMBER 24, 2023 DECEMBER 25, 2022 Operating lease right-of-use assets Operating lease right-of-use assets $ 400,764 $ 352,373 Finance lease assets Property, fixtures and equipment, net 1,062 1,332 Total lease assets $ 401,826 $ 353,705 Operating lease liabilities (1) - current Current portion of operating lease liabilities $ 42,856 $ 38,936 Operating lease liabilities - non-current Operating lease liabilities 420,496 366,113 Finance lease liabilities - current Current portion of long-term debt 641 632 Finance lease liabilities - non-current Long-term debt, net 500 801 Total lease liabilities $ 464,493 $ 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 THIRTY-NINE WEEKS ENDED SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Operating lease expense Other restaurant operating expenses $ 14,492 $ 12,667 $ 40,933 $ 36,843 Variable lease expense Food and beverage costs 4,438 3,676 12,444 10,669 Finance lease expense: Amortization of leased assets Depreciation and amortization 126 127 380 394 Interest on lease liabilities Interest expense 20 25 72 101 Total lease expense (1) $ 19,076 $ 16,495 $ 53,829 $ 48,007 _________________ (1) Includes contingent rent expense of $0.5 million and $0.4 million during the thirteen weeks ended September 24, 2023 and September 25, 2022, respectively, and $1.4 million and $1.2 million during the thirty-nine weeks ended September 24, 2023 and September 25, 2022, respectively. Supplemental cash flow information related to leases was as follows: THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 31,707 $ 30,506 Operating cash flows - finance leases $ 72 $ 101 Financing cash flows - finance leases $ 394 $ 385 Supplemental information related to leases was as follows: THIRTY-NINE WEEKS ENDED SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Weighted-average remaining lease term (in years) Operating leases 14.0 14.8 Finance leases 2.7 3.0 Weighted-average discount rate (1) Operating leases 8.4 % 8.6 % Finance leases 7.2 % 7.7 % ________________ (1) Based on the Company’s incremental borrowing rate. As of September 24, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) OPERATING LEASES FINANCE LEASES Fiscal year 2023 $ 11,382 $ 208 2024 47,813 600 2025 57,841 254 2026 57,555 67 2027 56,701 56 Thereafter 589,118 67 Total future minimum lease payments (1) 820,410 1,252 Less: imputed interest (357,058) (111) Total present value of lease liabilities $ 463,352 $ 1,141 _________________ (1) Excludes approxim ately $76.6 million of exec uted operating leases that have not commenced as of September 24, 2023.

Equity and Stock-Based Compensa

Equity and Stock-Based Compensation	9 Months Ended
	Sep. 24, 2023
Share-Based Payment Arrangement [Abstract]
Equity and Stock-Based Compensation	Equity and Stock-Based Compensation Equity Transactions During the thirty-nine weeks ended September 24, 2023, funds managed by the Company’s majority owner, Advent International Corporation, (“Advent”) 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 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 public 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 in connection with the offerings that were recorded within Transaction expenses, net on the Consolidated Statements of Operations and Comprehensive Income. During the thirteen weeks ended September 25, 2022, funds managed by Advent, sold 4,500,000 shares of the Company’s common stock through a secondary public offering that was completed on September 19, 2022. The selling stockholders sold an additional 675,000 shares of common stock on October 6, 2022 pursuant to the terms of the underwriters option associated with the secondary offering. All net proceeds from the sale of the shares of common stock were distributed to the selling stockholders. The Company incurred approximately $1.6 million of costs in connection with the offerings 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 thirty-nine weeks ended September 24, 2023. A summary of stock option activity during the thirty-nine weeks ended September 24, 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 (545,669) $ 9.18 Forfeited (126,113) $ 12.12 Outstanding, September 24, 2023 4,443,892 $ 10.18 $ 34,316 5.4 Exercisable, September 24, 2023 2,706,341 $ 9.67 $ 22,277 4.9 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 thirty-nine weeks ended September 24, 2023 is as follows: NUMBER OF OPTIONS WEIGHTED AVERAGE GRANT DATE FAIR VALUE Nonvested, December 25, 2022 2,324,316 $ 7.31 Vested (460,652) $ 5.59 Forfeited (126,113) $ 6.47 Nonvested, September 24, 2023 1,737,551 $ 7.83 Restricted stock units A summary of activity for restricted stock units during the thirty-nine weeks ended September 24, 2023 is as follows: RESTRICTED STOCK UNITS WEIGHTED AVERAGE AGGREGATE INTRINSIC VALUE (in thousands) Outstanding, December 25, 2022 38,311 $ 14.36 $ 544 Granted 538,007 $ 15.67 Vested (38,311) $ 14.36 Forfeited (22,228) $ 15.52 Outstanding, September 24, 2023 515,779 $ 15.67 $ 9,232 The aggregate intrinsic value is based on the closing price of the Company’s common stock on Nasdaq of $17.90 and $14.21 on September 22, 2023 and December 23, 2022, the last trading days for the periods, respectively. Stock-based compensation expense was $1.8 million and $5.4 million during the thirteen and thirty-nine weeks ended September 24, 2023, respectively. Stock-based compensation expense was $2.7 million and $7.8 million during the thirteen and thirty-nine weeks ended September 25, 2022, respectively. The total related income tax benefit for stock-based compensation expense was $0.8 million and $1.3 million during the thirteen and thirty-nine weeks ended September 24, 2023, respectively. The total related income tax benefit for stock-based compensation expense was less than $0.1 million during the thirteen and thirty-nine weeks ended September 25, 2022. Unrecognized stock-based compensation expense The following represents unrecognized stock-based compensation expense and the remaining weighted average vesting period as of September 24, 2023: UNRECOGNIZED STOCK-BASED COMPENSATION EXPENSE (in thousands) REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years) Stock options $ 4,574 0.8 Restricted stock units $ 6,549 2.4

Interest Rate Swaps

Interest Rate Swaps	9 Months Ended
	Sep. 24, 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 $1.0 million will be reclassified as a reduction to interest expense.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 24, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (dollars in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Income before income taxes $ 6,661 $ 1,375 $ 30,570 $ 12,335 Income tax expense $ (1,243) $ (1,329) $ (7,833) $ (4,942) Effective income tax rate 18.7 % 96.7 % 25.6 % 40.1 % The change in the effective income tax rates for the thirteen and thirty-nine weeks ended September 24, 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) the 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 sales of the Company’s common stock by funds managed by Advent through secondary public offerings. The effective income tax rates for the thirteen and thirty-nine weeks ended September 24, 2023 and September 25, 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) the 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 sales of the Company’s common stock by funds managed by Advent through secondary public 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 September 24, 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 thirty-nine weeks ended September 24, 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	9 Months Ended
	Sep. 24, 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 September 24, 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	9 Months Ended
	Sep. 24, 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 THIRTY-NINE WEEKS ENDED (in thousands, except share and per share data) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Numerator: Net income $ 5,418 $ 46 $ 22,737 $ 7,393 Denominator: Weighted average common shares outstanding - basic 59,646,027 59,089,831 59,424,989 59,065,423 Weighted average common shares outstanding - diluted 61,562,524 60,464,062 61,016,105 60,088,622 Net income per common share - basic $ 0.09 $ — $ 0.38 $ 0.13 Net income per common share - diluted $ 0.09 $ — $ 0.37 $ 0.12 Stock options outstanding not included in diluted net income per common share as their effect is anti-dilutive 12,552 1,255,089 59,101 1,708,602 Restricted stock units outstanding not included in diluted net income per share as their effect is anti-dilutive — — 1,302 —

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 24, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 13, 2023, the Company executed an asset purchase agreement to acquire from a franchisee six operating restaurants together with other associated assets, including, but not limited to, franchise and development rights for cash of approximately $9.2 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)	9 Months Ended
	Sep. 24, 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 September 24, 2023 and September 25, 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 Acquisitions (Tables)

Business Acquisitions (Tables)	9 Months Ended
	Sep. 24, 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, which are based on preliminary valuations and are subject to adjustment as additional information is available. The details of each acquisition are as follows: (dollars in thousands) Date of acquisition May 1, 2023 June 26, 2023 August 9, 2023 Number of acquired restaurants 6 5 6 Number of acquired restaurants under development — — 1 Purchase price (cash) $ 8,177 $ 8,656 $ 14,127 Transaction costs incurred $ 362 $ 334 $ 373 Deferred franchise fees recognized as a result of termination of $ 78 $ 123 $ 200 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ 9 $ 6 $ 16 Inventory $ 57 $ 62 $ 102 Prepaid rent and other assets $ 67 $ 33 $ 89 Property, fixtures and equipment $ 1,840 $ 3,783 $ 6,364 Reacquired rights $ 1,342 $ 2,304 $ 4,358 Goodwill (primarily expected synergies and assembled workforce; tax deductible) $ 5,272 $ 2,667 $ 3,811 Unfavorable leasehold positions, net $ (330) $ (70) $ (530) Accounts payable $ — $ — $ (32) Deferred revenues - gift card liabilities assumed $ (80) $ (129) $ (51)

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 24, 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) SEPTEMBER 24, 2023 DECEMBER 25, 2022 Deferred revenues: Deferred gift card revenue $ 2,370 $ 4,897 Deferred franchise fee revenue - current 285 296 Total current deferred revenues $ 2,655 $ 5,193 Other long-term liabilities: Deferred franchise fee revenue - non-current $ 1,949 $ 2,472 Changes in deferred gift card contract liabilities were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Deferred gift card revenue: Balance, beginning of period $ 3,154 $ 2,805 $ 4,897 $ 4,410 Gift card sales 1,185 1,218 5,746 4,796 Gift card redemptions (1,921) (1,720) (7,726) (6,399) Gift card breakage (228) (192) (807) (696) Gift card liabilities assumed through acquisitions 180 — 260 — Balance, end of period $ 2,370 $ 2,111 $ 2,370 $ 2,111 Changes in deferred franchise fee contract liabilities were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Deferred franchise fee revenue: Balance, beginning of period $ 2,672 $ 2,637 $ 2,768 $ 2,536 Cash received 36 204 175 434 Franchise revenues recognized (150) (67) (307) (196) Business combinations - franchise revenues recognized (323) — (401) — Balance, end of period $ 2,235 $ 2,774 $ 2,235 $ 2,774
Disaggregation of Revenue	Revenues recognized disaggregated by type were as follows: THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Restaurant sales: In-restaurant dining sales $ 176,696 $ 147,491 $ 520,277 $ 425,222 Third-party delivery sales 22,011 20,105 65,765 60,960 Take-out sales 16,788 16,382 50,008 50,147 Total restaurant sales $ 215,495 $ 183,978 $ 636,050 $ 536,329 Franchise revenues: Royalty and system fund contributions $ 3,244 $ 2,807 $ 10,160 $ 7,892 Initial fees 473 67 708 196 Total franchise revenues $ 3,717 $ 2,874 $ 10,868 $ 8,088 Total revenues $ 219,212 $ 186,852 $ 646,918 $ 544,417

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 24, 2023
Receivables [Abstract]
Accounts Receivable	Accounts receivable consisted of the following: (in thousands) SEPTEMBER 24, 2023 DECEMBER 25, 2022 Receivables from third-party delivery providers $ 1,414 $ 974 Receivables from franchisees 1,184 1,076 Receivables from vendors 1,239 920 Receivables related to gift card sales 323 1,565 Other receivables 587 1,629 Total accounts receivable $ 4,990 $ 6,164

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 24, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following: (in thousands) SEPTEMBER 24, 2023 DECEMBER 25, 2022 Construction liabilities $ 13,110 $ 6,908 Sales tax 4,478 3,791 Self-insurance and general liability reserves 1,446 1,529 Utilities 1,840 1,468 Interest payable 1,847 1,506 Credit card fees 1,220 1,043 Property tax 1,355 951 Contingent rent 1,063 811 Common area maintenance 668 680 Other 6,813 4,042 Total accrued liabilities $ 33,840 $ 22,729

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 24, 2023
Debt Disclosure [Abstract]
Long-Term Debt, Net	Long-term debt, net consisted of the following: SEPTEMBER 24, 2023 DECEMBER 25, 2022 (dollars in thousands) Balance Interest Rate Balance Interest Rate Term Facility $ 95,000 7.59% $ 98,125 5.89% Finance lease liabilities 1,141 1,433 Financing obligation 3,050 3,050 Less: Unamortized debt discount and deferred issuance costs (1,351) (1,683) Total Debt, net 97,840 100,925 Less: Current portion of long-term debt (6,891) (6,257) Long-term debt, net $ 90,949 $ 94,668

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 24, 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 SEPTEMBER 24, 2023 DECEMBER 25, 2022 Operating lease right-of-use assets Operating lease right-of-use assets $ 400,764 $ 352,373 Finance lease assets Property, fixtures and equipment, net 1,062 1,332 Total lease assets $ 401,826 $ 353,705 Operating lease liabilities (1) - current Current portion of operating lease liabilities $ 42,856 $ 38,936 Operating lease liabilities - non-current Operating lease liabilities 420,496 366,113 Finance lease liabilities - current Current portion of long-term debt 641 632 Finance lease liabilities - non-current Long-term debt, net 500 801 Total lease liabilities $ 464,493 $ 406,482 ___________________ (1) Excludes all variable lease expense. Supplemental information related to leases was as follows: THIRTY-NINE WEEKS ENDED SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Weighted-average remaining lease term (in years) Operating leases 14.0 14.8 Finance leases 2.7 3.0 Weighted-average discount rate (1) Operating leases 8.4 % 8.6 % Finance leases 7.2 % 7.7 % ________________ (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 THIRTY-NINE WEEKS ENDED SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Operating lease expense Other restaurant operating expenses $ 14,492 $ 12,667 $ 40,933 $ 36,843 Variable lease expense Food and beverage costs 4,438 3,676 12,444 10,669 Finance lease expense: Amortization of leased assets Depreciation and amortization 126 127 380 394 Interest on lease liabilities Interest expense 20 25 72 101 Total lease expense (1) $ 19,076 $ 16,495 $ 53,829 $ 48,007 _________________ (1) Includes contingent rent expense of $0.5 million and $0.4 million during the thirteen weeks ended September 24, 2023 and September 25, 2022, respectively, and $1.4 million and $1.2 million during the thirty-nine weeks ended September 24, 2023 and September 25, 2022, respectively. Supplemental cash flow information related to leases was as follows: THIRTY-NINE WEEKS ENDED (in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - operating leases $ 31,707 $ 30,506 Operating cash flows - finance leases $ 72 $ 101 Financing cash flows - finance leases $ 394 $ 385
Operating Lease Maturity	As of September 24, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) OPERATING LEASES FINANCE LEASES Fiscal year 2023 $ 11,382 $ 208 2024 47,813 600 2025 57,841 254 2026 57,555 67 2027 56,701 56 Thereafter 589,118 67 Total future minimum lease payments (1) 820,410 1,252 Less: imputed interest (357,058) (111) Total present value of lease liabilities $ 463,352 $ 1,141 _________________ (1) Excludes approxim ately $76.6 million of exec uted operating leases that have not commenced as of September 24, 2023.
Finance Lease Maturity	As of September 24, 2023, future minimum lease payments for operating and finance leases consisted of the following: (in thousands) OPERATING LEASES FINANCE LEASES Fiscal year 2023 $ 11,382 $ 208 2024 47,813 600 2025 57,841 254 2026 57,555 67 2027 56,701 56 Thereafter 589,118 67 Total future minimum lease payments (1) 820,410 1,252 Less: imputed interest (357,058) (111) Total present value of lease liabilities $ 463,352 $ 1,141 _________________ (1) Excludes approxim ately $76.6 million of exec uted operating leases that have not commenced as of September 24, 2023.

Equity and Stock-Based Compen_2

Equity and Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 24, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Options Roll Forward	A summary of stock option activity during the thirty-nine weeks ended September 24, 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 (545,669) $ 9.18 Forfeited (126,113) $ 12.12 Outstanding, September 24, 2023 4,443,892 $ 10.18 $ 34,316 5.4 Exercisable, September 24, 2023 2,706,341 $ 9.67 $ 22,277 4.9
Schedule of Fair Value Non-vested Options at Grant Dates	A summary of the non-vested stock option activity during the thirty-nine weeks ended September 24, 2023 is as follows: NUMBER OF OPTIONS WEIGHTED AVERAGE GRANT DATE FAIR VALUE Nonvested, December 25, 2022 2,324,316 $ 7.31 Vested (460,652) $ 5.59 Forfeited (126,113) $ 6.47 Nonvested, September 24, 2023 1,737,551 $ 7.83
Schedule of Nonvested Restricted Stock Units Activity	A summary of activity for restricted stock units during the thirty-nine weeks ended September 24, 2023 is as follows: RESTRICTED STOCK UNITS WEIGHTED AVERAGE AGGREGATE INTRINSIC VALUE (in thousands) Outstanding, December 25, 2022 38,311 $ 14.36 $ 544 Granted 538,007 $ 15.67 Vested (38,311) $ 14.36 Forfeited (22,228) $ 15.52 Outstanding, September 24, 2023 515,779 $ 15.67 $ 9,232
Schedule of Unrecognized Stock-based Compensation Expense	The following represents unrecognized stock-based compensation expense and the remaining weighted average vesting period as of September 24, 2023: UNRECOGNIZED STOCK-BASED COMPENSATION EXPENSE (in thousands) REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years) Stock options $ 4,574 0.8 Restricted stock units $ 6,549 2.4

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 24, 2023
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) and Effective Income Tax Rate	THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED (dollars in thousands) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Income before income taxes $ 6,661 $ 1,375 $ 30,570 $ 12,335 Income tax expense $ (1,243) $ (1,329) $ (7,833) $ (4,942) Effective income tax rate 18.7 % 96.7 % 25.6 % 40.1 %

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 24, 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 THIRTY-NINE WEEKS ENDED (in thousands, except share and per share data) SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 SEPTEMBER 24, 2023 SEPTEMBER 25, 2022 Numerator: Net income $ 5,418 $ 46 $ 22,737 $ 7,393 Denominator: Weighted average common shares outstanding - basic 59,646,027 59,089,831 59,424,989 59,065,423 Weighted average common shares outstanding - diluted 61,562,524 60,464,062 61,016,105 60,088,622 Net income per common share - basic $ 0.09 $ — $ 0.38 $ 0.13 Net income per common share - diluted $ 0.09 $ — $ 0.37 $ 0.12 Stock options outstanding not included in diluted net income per common share as their effect is anti-dilutive 12,552 1,255,089 59,101 1,708,602 Restricted stock units outstanding not included in diluted net income per share as their effect is anti-dilutive — — 1,302 —

Nature of Business and Organi_2

Nature of Business and Organization - Additional Information (Details)	Sep. 24, 2023 state restaurant
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	402
Franchise-owned restaurants
Franchisor Disclosure [Line Items]
Number of restaurants	103

Business Acquisitions - Additio

Business Acquisitions - Additional Information (Details) - restaurant				9 Months Ended
	Aug. 09, 2023	Jun. 26, 2023	May 01, 2023	Sep. 24, 2023
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of businesses acquired	6	5	6	17

Business Acquisitions - Schedul

Business Acquisitions - Schedule of Business Acquisitions, by Acquisition (Details) $ in Thousands				3 Months Ended		9 Months Ended
	Aug. 09, 2023 USD ($) restaurant	Jun. 26, 2023 USD ($) restaurant	May 01, 2023 USD ($) restaurant	Sep. 24, 2023 USD ($)	Sep. 25, 2022 USD ($)	Sep. 24, 2023 USD ($) restaurant	Sep. 25, 2022 USD ($)	Dec. 25, 2022 USD ($)
Asset Acquisition [Line Items]
Deferred franchise fees recognized as a result of termination of pre-existing franchise agreement				$ 323	$ 0	$ 401	$ 0
Goodwill (primarily expected synergies and assembled workforce; tax deductible)				$ 356,969		$ 356,969		$ 345,219
Series of Individually Immaterial Business Acquisitions
Asset Acquisition [Line Items]
Number of businesses acquired | restaurant	6	5	6			17
Number of acquired restaurants under development | restaurant	1	0	0
Purchase price (cash)	$ 14,127	$ 8,656	$ 8,177
Transaction costs incurred	373	334	362
Deferred franchise fees recognized as a result of termination of pre-existing franchise agreement	200	123	78
Cash	16	6	9
Inventory	102	62	57
Prepaid rent and other assets	89	33	67
Property, fixtures and equipment	6,364	3,783	1,840
Reacquired rights	4,358	2,304	1,342
Goodwill (primarily expected synergies and assembled workforce; tax deductible)	3,811	2,667	5,272
Unfavorable leasehold positions, net	(530)	(70)	(330)
Accounts payable	(32)	0	0
Deferred revenues - gift card liabilities assumed	$ (51)	$ (129)	$ (80)

Revenues - Detail of Contract L

Revenues - Detail of Contract Liabilities (Details) - USD ($) $ in Thousands	Sep. 24, 2023	Dec. 25, 2022
Revenue from Contract with Customer [Abstract]
Deferred gift card revenue	$ 2,370	$ 4,897
Deferred franchise fee revenue - current	285	296
Total current deferred revenues	2,655	5,193
Deferred franchise fee revenue - non-current	$ 1,949	$ 2,472

Revenues - Change in Contract L

Revenues - Change in Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Changes in contract liabilities, deferred gift card revenue
Balance, beginning of period	$ 3,154	$ 2,805	$ 4,897	$ 4,410
Gift card sales	1,185	1,218	5,746	4,796
Gift card redemptions	(1,921)	(1,720)	(7,726)	(6,399)
Gift card breakage	(228)	(192)	(807)	(696)
Gift card liabilities assumed through acquisitions	180	0	260	0
Balance, end of period	2,370	2,111	2,370	2,111
Changes in contract liabilities, deferred franchise fee revenue
Balance, beginning of period	2,672	2,637	2,768	2,536
Cash received	36	204	175	434
Franchise revenues recognized	(150)	(67)	(307)	(196)
Business combinations - franchise revenues recognized	(323)	0	(401)	0
Balance, end of period	$ 2,235	$ 2,774	$ 2,235	$ 2,774

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 219,212	$ 186,852	$ 646,918	$ 544,417
Restaurant sales
Disaggregation of Revenue [Line Items]
Total revenues	215,495	183,978	636,050	536,329
In-restaurant dining sales
Disaggregation of Revenue [Line Items]
Total revenues	176,696	147,491	520,277	425,222
Third-party delivery sales
Disaggregation of Revenue [Line Items]
Total revenues	22,011	20,105	65,765	60,960
Take-out sales
Disaggregation of Revenue [Line Items]
Total revenues	16,788	16,382	50,008	50,147
Franchise revenues
Disaggregation of Revenue [Line Items]
Total revenues	3,717	2,874	10,868	8,088
Royalty and system fund contributions
Disaggregation of Revenue [Line Items]
Total revenues	3,244	2,807	10,160	7,892
Initial fees
Disaggregation of Revenue [Line Items]
Total revenues	$ 473	$ 67	$ 708	$ 196

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 24, 2023	Dec. 25, 2022
Receivables [Abstract]
Receivables from third-party delivery providers	$ 1,414	$ 974
Receivables from franchisees	1,184	1,076
Receivables from vendors	1,239	920
Receivables related to gift card sales	323	1,565
Other receivables	587	1,629
Total accounts receivable	$ 4,990	$ 6,164

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 24, 2023	Dec. 25, 2022
Payables and Accruals [Abstract]
Construction liabilities	$ 13,110	$ 6,908
Sales tax	4,478	3,791
Self-insurance and general liability reserves	1,446	1,529
Utilities	1,840	1,468
Interest payable	1,847	1,506
Credit card fees	1,220	1,043
Property tax	1,355	951
Contingent rent	1,063	811
Common area maintenance	668	680
Other	6,813	4,042
Total accrued liabilities	$ 33,840	$ 22,729

Debt - Long-Term Debt, Net (Det

Debt - Long-Term Debt, Net (Details) - USD ($) $ in Thousands	Sep. 24, 2023	Dec. 25, 2022
Debt Instrument [Line Items]
Finance lease liabilities	$ 1,141	$ 1,433
Less: Unamortized debt discount and deferred issuance costs	(1,351)	(1,683)
Total Debt, net	97,840	100,925
Less: Current portion of long-term debt	(6,891)	(6,257)
Long-term debt, net	90,949	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	$ 95,000	$ 98,125
Interest Rate	7.59%	5.89%

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($) $ in Millions	Mar. 27, 2023	Sep. 24, 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		$ 94.9	$ 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	Sep. 24, 2023	Dec. 25, 2022
Leases [Abstract]
Operating lease right-of-use assets	$ 400,764	$ 352,373
Finance lease assets	1,062	1,332
Total lease assets	401,826	353,705
Operating lease liabilities - current	42,856	38,936
Operating lease liabilities - non-current	420,496	366,113
Finance lease liabilities - current	641	632
Finance lease liabilities - non-current	500	801
Total lease liabilities	$ 464,493	$ 406,482
Finance lease, right-of-use asset, statement of financial position [Extensible Enumeration]	Property, fixtures and equipment, net of accumulated depreciation of $171,582 and $145,720, respectively	Property, fixtures and equipment, net of accumulated depreciation of $171,582 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		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Leases [Abstract]
Operating lease expense	$ 14,492	$ 12,667	$ 40,933	$ 36,843
Variable lease expense	4,438	3,676	12,444	10,669
Amortization of leased assets	126	127	380	394
Interest on lease liabilities	20	25	72	101
Total lease expense	19,076	16,495	53,829	48,007
Contingent rent expense	$ 500	$ 400	$ 1,400	$ 1,200

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022
Leases [Abstract]
Operating cash flows - operating leases	$ 31,707	$ 30,506
Operating cash flows - finance leases	72	101
Financing cash flows - finance leases	$ 394	$ 385

Leases - Supplemental Informati

Leases - Supplemental Information Related to Leases (Details)	Sep. 24, 2023	Sep. 25, 2022
Weighted-average remaining lease term (in years)
Operating leases	14 years	14 years 9 months 18 days
Finance leases	2 years 8 months 12 days	3 years
Weighted-average discount rate
Operating leases	8.40%	8.60%
Finance leases	7.20%	7.70%

Leases - Operating and Finance

Leases - Operating and Finance Lease Maturity (Details) - USD ($) $ in Thousands	Sep. 24, 2023	Dec. 25, 2022
OPERATING LEASES
2023	$ 11,382
2024	47,813
2025	57,841
2026	57,555
2027	56,701
Thereafter	589,118
Total future minimum lease payments	820,410
Less: imputed interest	(357,058)
Total present value of lease liabilities	463,352
FINANCE LEASES
2023	208
2024	600
2025	254
2026	67
2027	56
Thereafter	67
Total future minimum lease payments	1,252
Less: imputed interest	(111)
Total present value of lease liabilities	1,141	$ 1,433
Executed operating leases that have not commenced	$ 76,600

Equity and Stock-Based Compen_3

Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands						3 Months Ended		9 Months Ended
	Jul. 03, 2023	Jun. 13, 2023	May 18, 2023	Oct. 06, 2022	Sep. 19, 2022	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022	Sep. 22, 2023	Dec. 23, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payments of stock issuance costs								$ 1,376	$ 2,352
Closing price of common stock on Nasdaq (in dollars per share)										$ 17.90	$ 14.21
Stock-based compensation expense						$ 1,800	$ 2,700	5,400	7,800
Share-based payment arrangement, expense, tax benefit						$ 800	$ 100	$ 1,300	$ 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		4,500,000
Payments of stock issuance costs			$ 1,000	$ 1,600
Over-Allotment Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock sold (in shares)	450,000		525,000	675,000

Equity and Stock-Based Compen_4

Equity and Stock-Based Compensation - Schedule of Stock Options Roll Forward (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 24, 2023	Dec. 25, 2022
NUMBER OF OPTIONS
Options outstanding, beginning of period (in shares)	5,115,674
Options exercised (in shares)	(545,669)
Options forfeited (in shares)	(126,113)
Options outstanding, end of period (in shares)	4,443,892	5,115,674
Options exercisable, end of period (in shares)	2,706,341
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)	9.18
Options forfeited, weighted average exercise price (in dollars per share)	12.12
Options outstanding, end of period, weighted average exercise price (in dollars per share)	10.18	$ 10.12
Options exercisable, end of period, weighted average exercise price (in dollars per share)	$ 9.67
AGGREGATE INTRINSIC VALUE (in thousands)
Options outstanding, beginning of period, aggregate intrinsic value	$ 20,981
Options outstanding, end of period, aggregate intrinsic value	34,316	$ 20,981
Options exercisable, end of period, aggregate intrinsic value	$ 22,277
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average remaining contractual term	5 years 4 months 24 days	6 years 1 month 6 days
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted average remaining contractual term	4 years 10 months 24 days

Equity and Stock-Based Compen_5

Equity and Stock-Based Compensation - Schedule of Fair Value Non-vested Options at Grant Dates (Details)	9 Months Ended
	Sep. 24, 2023 $ / shares shares
NUMBER OF OPTIONS
Beginning balance (in shares) | shares	2,324,316
Vested (in shares) | shares	(460,652)
Forfeited (in shares) | shares	(126,113)
Ending balance (in shares) | shares	1,737,551
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	5.59
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares	6.47
Ending balance, weighted average grant date fair value (in dollars per share) | $ / shares	$ 7.83

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	9 Months Ended
	Sep. 24, 2023 USD ($) $ / shares shares
RESTRICTED STOCK UNITS
Beginning balance (in shares) | shares	38,311
Granted (in shares) | shares	538,007
Vested (in shares) | shares	(38,311)
Forfeited (in shares) | shares	(22,228)
Ending balance (in shares) | shares	515,779
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	15.67
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	$ 15.67
AGGREGATE INTRINSIC VALUE (in thousands)
Beginning balance outstanding, aggregate intrinsic value | $	$ 544
Ending outstanding, aggregate intrinsic value | $	$ 9,232

Equity and Stock-Based Compen_7

Equity and Stock-Based Compensation - Schedule of Unrecognized Stock-based Compensation Expense (Details) $ in Thousands	9 Months Ended
	Sep. 24, 2023 USD ($)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock compensation expense	$ 4,574
REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years)	9 months 18 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock compensation expense	$ 6,549
REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years)	2 years 4 months 24 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	$ (1)

Income Taxes - Components of In

Income Taxes - Components of Income Tax Expense (Benefit) and Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Income Tax Disclosure [Abstract]
Income before income taxes	$ 6,661	$ 1,375	$ 30,570	$ 12,335
Income tax expense	$ (1,243)	$ (1,329)	$ (7,833)	$ (4,942)
Effective income tax rate	18.70%	96.70%	25.60%	40.10%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 24, 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		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Numerator
Net income	$ 5,418	$ 46	$ 22,737	$ 7,393
Net income	$ 5,418	$ 46	$ 22,737	$ 7,393
Denominator
Weighted average common shares outstanding - basic (in shares)	59,646,027	59,089,831	59,424,989	59,065,423
Weighted average common shares outstanding - diluted (in shares)	61,562,524	60,464,062	61,016,105	60,088,622
Net income per common share - basic (in dollars per share)	$ 0.09	$ 0	$ 0.38	$ 0.13
Net income per common share - diluted (in dollars per share)	$ 0.09	$ 0	$ 0.37	$ 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)	12,552	1,255,089	59,101	1,708,602
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)	0	0	1,302	0

Subsequent Events (Details)

Subsequent Events (Details) - Series of Individually Immaterial Business Acquisitions $ in Thousands					9 Months Ended
	Oct. 13, 2023 USD ($) restaurant	Aug. 09, 2023 USD ($) restaurant	Jun. 26, 2023 USD ($) restaurant	May 01, 2023 USD ($) restaurant	Sep. 24, 2023 restaurant
Subsequent Event [Line Items]
Number of businesses acquired | restaurant		6	5	6	17
Purchase price (cash) | $		$ 14,127	$ 8,656	$ 8,177
Subsequent Event
Subsequent Event [Line Items]
Number of businesses acquired | restaurant	6
Purchase price (cash) | $	$ 9,200