Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2018 | Feb. 26, 2019 | Jul. 01, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CARROLS RESTAURANT GROUP, INC. | ||
Entity Central Index Key | 809,248 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 37,003,873 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 505,346,703 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash | $ 4,014 | $ 29,412 |
Receivables, Net, Current | 11,693 | 9,420 |
Inventory, Net | 10,396 | 9,373 |
Prepaid rent | 1,880 | 5,134 |
Prepaid expenses and other current assets | 6,695 | 6,622 |
Refundable income taxes | 0 | 54 |
Total current assets | 34,678 | 60,015 |
Property and equipment, net | 289,817 | 274,098 |
Franchise rights, net | 175,897 | 152,028 |
Goodwill | 38,469 | 36,792 |
Franchise agreements, net | 24,414 | 23,192 |
Favorable leases, net (Note 4) | 5,892 | 5,862 |
Deferred income taxes (Note 10) | 28,291 | 27,647 |
Other assets | 2,793 | 1,880 |
Total assets | 600,251 | 581,514 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current portion of long-term debt | 1,948 | 1,808 |
Accounts payable | 29,143 | 29,245 |
Accrued interest | 3,818 | 3,672 |
Accrued payroll, related taxes and benefits | 28,719 | 26,635 |
Accrued real estate taxes | 5,910 | 5,269 |
Other liabilities | 12,601 | 12,900 |
Total current liabilities | 82,139 | 79,529 |
Long-term debt, net of current portion and deferred financing costs | 276,823 | 278,519 |
Lease financing obligations | 1,196 | 1,196 |
Deferred income-sale-leaseback of real estate | 10,073 | 11,451 |
Accrued postretirement benefits | 4,320 | 4,838 |
Unfavorable leases, net | 12,348 | 13,111 |
Other liabilities | 27,812 | 23,810 |
Total liabilities | 414,711 | 412,454 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, par value $.01 | 0 | 0 |
Voting common stock, par value $.01 | 357 | 354 |
Additional paid-in capital | 150,459 | 144,650 |
Retained Earnings | 35,511 | 25,407 |
Accumulated other comprehensive income | (646) | (1,210) |
Treasury stock, at cost | (141) | (141) |
Total stockholders' equity | 185,540 | 169,060 |
Total liabilities and stockholders' equity | $ 600,251 | $ 581,514 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Franchise agreements, accumulated amortization | $ 12,022 | $ 11,028 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock, shares issued | 100 | 100 |
Preferred stock, shares outstanding | 100 | 100 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 36,538,903 | 36,158,711 |
Common stock, shares outstanding | 35,742,427 | 35,436,252 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Restaurant sales | $ 1,179,307 | $ 1,088,532 | $ 943,583 |
Costs and expenses: | |||
Cost of sales | 326,308 | 304,593 | 250,112 |
Restaurant wages and related expenses | 382,829 | 350,054 | 297,766 |
Restaurant rent expense | 81,409 | 75,948 | 64,814 |
Other restaurant operating expenses | 178,750 | 166,786 | 148,946 |
Advertising expense | 48,340 | 44,677 | 41,299 |
General and administrative | 66,587 | 60,348 | 54,956 |
Depreciation and amortization | 58,468 | 54,159 | 47,295 |
Impairment and other lease charges | 3,685 | 2,827 | 2,355 |
Other expense (income) | (424) | (333) | 338 |
Total operating expenses | 1,145,952 | 1,059,059 | 907,881 |
Income (loss) from operations | 33,355 | 29,473 | 35,702 |
Interest Expense | 23,638 | 21,710 | 18,315 |
Gain on bargain purchase (Note 2) | (230) | 0 | 0 |
Income (loss) before income taxes | 9,947 | 7,763 | 17,387 |
Provision (benefit) for income taxes | (157) | 604 | (28,085) |
Net income (loss) | $ 10,104 | $ 7,159 | $ 45,472 |
Earnings Per Share, Basic | $ 0.22 | $ 0.16 | $ 1.01 |
Basic weighted average common shares outstanding | 35,715,372 | 35,416,531 | 35,178,329 |
Diluted weighted average common shares outstanding | 45,319,971 | 44,976,514 | 44,851,345 |
Other comprehensive income (loss), net of tax: | |||
Net income (loss) | $ 10,104 | $ 7,159 | $ 45,472 |
Change in postretirement benefit obligations, net of tax | 564 | (7) | (868) |
Comprehensive income (loss) | $ 10,668 | $ 7,152 | $ 44,604 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Stock-based compensation | $ 5,812 | $ 3,518 | $ 2,053 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Balance at Jan. 03, 2016 | $ 107,999,000 | $ 350,000 | $ 0 | $ 139,083,000 | $ (30,958,000) | $ (335,000) | $ (141,000) |
Common stock, shares outstanding at Jan. 03, 2016 | 35,039,890 | ||||||
Stock-based compensation | 2,053,000 | $ 0 | 0 | 2,053,000 | 0 | 0 | 0 |
Vesting of non-vested shares and excess tax benefits | 0 | $ 3,000 | 0 | (3,000) | 0 | 0 | 0 |
Vesting of non-vested shares, shares | 218,689 | ||||||
Net income (loss) | 45,472,000 | $ 0 | 0 | 0 | 45,472,000 | 0 | 0 |
Change in postretirement benefit obligations | (868,000) | 0 | 0 | 0 | 0 | (868,000) | 0 |
Balance at Jan. 01, 2017 | 154,656,000 | $ 353,000 | 0 | 141,133,000 | 14,514,000 | (1,203,000) | (141,000) |
Common stock, shares outstanding at Jan. 01, 2017 | 35,258,579 | ||||||
Cumulative-effect adjustment from adoption of ASU 2016-09 | 3,734,000 | 3,734,000 | |||||
Stock-based compensation | 3,518,000 | $ 0 | 0 | 3,518,000 | 0 | 0 | 0 |
Vesting of non-vested shares and excess tax benefits | 0 | $ 1,000 | 0 | (1,000) | 0 | 0 | 0 |
Vesting of non-vested shares, shares | 177,673 | ||||||
Net income (loss) | 7,159,000 | $ 0 | 0 | 0 | 7,159,000 | 0 | 0 |
Change in postretirement benefit obligations | (7,000) | 0 | 0 | 0 | 0 | (7,000) | 0 |
Balance at Dec. 31, 2017 | $ 169,060,000 | $ 354,000 | 0 | 144,650,000 | 25,407,000 | (1,210,000) | (141,000) |
Common stock, shares outstanding at Dec. 31, 2017 | 35,436,252 | 35,436,252 | |||||
Stock-based compensation | $ 5,812,000 | $ 0 | 0 | 5,812,000 | 0 | 0 | 0 |
Vesting of non-vested shares and excess tax benefits | 0 | $ 3,000 | 0 | (3,000) | 0 | 0 | 0 |
Vesting of non-vested shares, shares | 306,175 | ||||||
Net income (loss) | 10,104,000 | $ 0 | 0 | 0 | 10,104,000 | 0 | 0 |
Change in postretirement benefit obligations | 564,000 | 0 | 0 | 0 | 0 | 564,000 | 0 |
Balance at Dec. 30, 2018 | $ 185,540,000 | $ 357,000 | $ 0 | $ 150,459,000 | $ 35,511,000 | $ (646,000) | $ (141,000) |
Common stock, shares outstanding at Dec. 30, 2018 | 35,742,427 | 35,742,427 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity Parentheticals - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Other Comprehensive Income (Loss), Tax | $ (186) | $ 326 | $ 541 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | |
Cash flows provided from (used for) operating activities: | |||
Net income (loss) | $ 10,104 | $ 7,159 | $ 45,472 |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Loss on disposals of property and equipment | 312 | 521 | (549) |
Stock-based compensation | 5,812 | 3,518 | 2,053 |
Gain on bargain purchase (Note 2) | (230) | 0 | 0 |
Impairment and other lease charges | 3,685 | 2,827 | 2,355 |
Depreciation and amortization | 58,468 | 54,159 | 47,295 |
Amortization of deferred financing costs | 1,202 | 1,035 | 791 |
Amortization of bond premium | (913) | (459) | 0 |
Amortization of deferred gains from sale-leaseback transactions | (1,584) | (1,626) | (1,788) |
Deferred income taxes | (483) | 574 | (28,085) |
Refundable income taxes | 55 | 99 | (153) |
Accounts receivable | (2,275) | (1,310) | (1,462) |
Accounts payable | (926) | 3,084 | 1,686 |
Accrued interest | 146 | 996 | 4 |
Accrued payroll, related taxes and benefits | 2,084 | 336 | (1,553) |
Other | 5,312 | 1,870 | (3,778) |
Net cash provided from operating activities | 80,769 | 72,783 | 62,288 |
Cash flows used for investing activities: | |||
New restaurant development | (23,171) | (14,759) | (8,228) |
Restaurant remodeling | (31,951) | (33,504) | (65,767) |
Other restaurant capital expenditures | (15,726) | (18,926) | (15,168) |
Corporate and restaurant information systems | (4,887) | (6,327) | (4,936) |
Total capital expenditures | (75,735) | (73,516) | (94,099) |
Acquisition of restaurants, net of cash acquired | (38,102) | (37,923) | (48,088) |
Proceeds from insurance recoveries | 642 | 481 | 1,413 |
Properties purchased for sale-leaseback | (2,123) | (1,404) | (9,046) |
Proceeds from sale-leaseback transactions | 8,424 | 4,257 | 53,599 |
Net cash used for investing activities | (106,894) | (108,105) | (96,221) |
Cash flows provided from (used for) financing activities: | |||
Proceeds from issuance of senior secured second lien notes | 0 | 79,875 | 0 |
Senior Notes | 275,000 | 275,000 | |
Financing costs associated with issuance of debt | (154) | (1,992) | (175) |
Borrowings under senior credit facility | 17,000 | 183,250 | 129,000 |
Repayments under senior credit facility | (17,000) | (196,750) | (115,500) |
Principal payments on capital leases | (1,811) | (1,651) | (1,480) |
Proceeds from lease financing obligations | 2,692 | 0 | 1,816 |
Net cash provided from (used for) financing activities | 727 | 62,732 | 13,661 |
Net increase (decrease) in cash | (25,398) | 27,410 | (20,272) |
Cash, beginning of period | 29,412 | 2,002 | 22,274 |
Cash, end of period | 4,014 | 29,412 | 2,002 |
Supplemental disclosures: | |||
Interest paid on long-term debt | 23,098 | 20,885 | 17,415 |
Interest paid on lease financing obligations | 105 | 119 | 105 |
Accruals for capital expenditures | 7,605 | 6,839 | 4,032 |
Non-cash reduction of capital lease assets and obligation | 2,538 | 1,744 | 0 |
Income taxes paid (refunded), net | (270) | (63) | 153 |
Capital lease obligations incurred | $ 49 | $ 316 | $ 583 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 12 Months Ended |
Dec. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation Business Description. At December 30, 2018 Carrols Restaurant Group, Inc. ("Carrols Restaurant Group") operated, as franchisee, 849 restaurants under the trade name “Burger King®” in 18 Northeastern, Midwestern and Southeastern states. Basis of Consolidation. Carrols Restaurant Group is a holding company and conducts all of its operations through its wholly-owned subsidiary, Carrols Corporation (“Carrols”) and Carrols' wholly-owned subsidiary, Carrols LLC, a Delaware limited liability company, and Carrols LLC's wholly-owned subsidiary Republic Foods, Inc., a Maryland corporation ("Republic Foods") . The consolidated financial statements presented herein include the accounts of Carrols Restaurant Group and its wholly-owned subsidiary Carrols. Unless the context otherwise requires, Carrols Restaurant Group, Carrols and Carrols LLC are collectively referred to as the “Company.” All intercompany transactions have been eliminated in consolidation. Fiscal Year. The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to December 31. The fiscal years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 each contained 52 weeks. Use of Estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include: accrued occupancy costs, insurance liabilities, evaluation for impairment of long-lived assets and franchise rights, lease accounting matters, the valuation of acquired assets and liabilities and the valuation of deferred income tax assets. Actual results could differ from those estimates. Cash and Cash Equivalents. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At December 30, 2018 and December 31, 2017 , the Company had $2.3 million and $27.6 million respectively, invested in money market funds. Inventories. Inventories, consisting primarily of food, beverages, and paper supplies, are stated at the lower of cost determined on the first-in, first-out method or net realizable value. Net realizable value is determined as the estimated selling price in the normal course of business minus the cost of disposal and transportation. Property and Equipment. Property and equipment is recorded at cost. The Company capitalizes all direct costs incurred to develop, construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Repairs and maintenance expenditures are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Owned buildings 9 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to capital leases Shorter of useful life or lease term Leasehold improvements are amortized over the shorter of their estimated useful lives or the underlying lease term. In circumstances where an economic penalty would be presumed by the non-exercise of one or more renewal options under the lease, the Company includes those renewal option periods when determining the lease term. For significant leasehold improvements made during the latter part of the lease term, the Company amortizes those improvements over the shorter of their useful life or the expected lease term. The expected lease term would consider the exercise of renewal options if the value of the improvements would imply that an economic penalty would be incurred without the renewal of the option. Building costs incurred for new restaurants on leased land are amortized over the lease term, which is generally a period of twenty years . Business Combinations. In accordance with ASC 805, the Company allocates the purchase price of an acquired business to its identifiable assets and liabilities based on the estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. The excess value of the net identifiable assets and liabilities acquired over the purchase price of an acquired business is recorded as a bargain purchase gain. The Company uses all available information to estimate fair values of identifiable intangible assets and property acquired. In making these determinations, the Company may engage an independent third party valuation specialist to assist with the valuation of certain leasehold improvements, franchise rights and favorable and unfavorable leases. The Company estimates that the seller's carrying value of acquired restaurant equipment, subject to certain adjustments is equivalent to fair value of this equipment at the date of the acquisition. The fair values of assumed franchise agreements are valued as if the remaining term of the agreement is at the market rate. The fair values of acquired land, buildings, certain leasehold improvements, and restaurant equipment subject to capital leases are determined using both the cost approach and market approach. The fair value of the favorable and unfavorable leases acquired, as well as the fair value of land, buildings, leasehold improvements, and restaurant equipment subject to capital leases acquired, is measured using significant inputs observable in the open market. The Company categorizes all such inputs as Level 2 inputs under ASC 820. The fair value of acquired franchise rights is primarily determined using the income approach, and unobservable inputs classified as Level 3 under ASC 820. On May 30, 2012, the Company acquired 278 Burger King® restaurants from Burger King Corporation ("BKC"), including BKC's assignment of its right of first refusal on franchise restaurant transfers in 20 states as follows: Connecticut (except Hartford county), Delaware, Indiana, Kentucky, Maine, Maryland, Massachusetts (except for Middlesex, Norfolk and Suffolk counties), Michigan, New Hampshire, New Jersey, New York (except for Bronx, Kings, Nassau, New York, Queens, Richmond, Suffolk and Westchester counties), North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, Washington DC and West Virginia, (the "ROFR") pursuant to an operating agreement with BKC dated May 30, 2012, and as amended on January 26, 2015 and December 17, 2015. See also Note 19 - "Subsequent Events." Franchise Rights. The Company determines the fair value of franchise rights based upon the acquired restaurants' future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment and assembled workforce to determine the fair value attributable to these franchise rights. Amounts allocated to franchise rights for each acquisition are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. Franchise Agreements. Fees for initial franchises and renewals are amortized using the straight-line method over the term of the agreement, which is generally twenty years . Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. Favorable and Unfavorable Leases. Favorable and unfavorable leases are due to the terms of acquired operating lease contracts being favorable or unfavorable relative to market terms of comparable leases on the acquisition date. Favorable and unfavorable leases are amortized as a component of rent expense on a straight-line basis over the remaining lease terms at the time of the acquisition. Impairment of Long-Lived Assets. The Company assesses the recoverability of property and equipment, franchise rights and other intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining useful lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Deferred Financing Costs. Financing costs incurred in obtaining long-term debt and lease financing obligations are capitalized and amortized over the life of the related obligation as interest expense using the effective interest method. Long-term debt on the consolidated balance sheets is presented net of the unamortized amount of the financing costs related to long-term borrowings. Leases. All leases are reviewed for capital or operating classification at their inception. The majority of the Company’s leases are operating leases. Many of the lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including any option periods included in the determination of the lease term. Contingent rentals are generally based upon a percentage of sales or a percentage of sales in excess of stipulated amounts and are generally not considered minimum rent payments but are recognized as rent expense when incurred. Lease Financing Obligations. Lease financing obligations pertain to real estate sale-leaseback transactions accounted for under the financing method. The assets (land and building) subject to these obligations remain on the Company’s consolidated balance sheets at their historical costs and such assets (excluding land) continue to be depreciated over their remaining useful lives. The proceeds received by the Company from these transactions are recorded as lease financing obligations and the lease payments are applied as payments of principal and interest. The selection of the interest rate on lease financing obligations is evaluated at inception of the lease based on the Company’s incremental borrowing rate adjusted to the rate required to prevent recognition of a non-cash loss or negative amortization of the obligation through the end of the primary lease term. Revenue Recognition . Revenues from Company restaurants, net of sales discounts are recognized when payment is tendered at the time of sale. Revenues are reported net of sales tax collected from customers and remitted to governmental taxing authorities. Gift cards. The Company sells gift cards in its restaurants that are issued under BKC's gift card program. Proceeds from the sale of Burger King® gift cards at the Company’s restaurants are received by BKC. The Company recognizes revenue from gift cards upon redemption by the customer. Income Taxes. Deferred income tax assets and liabilities are based on the difference between the financial statement and tax basis of assets and liabilities as measured by the tax rates that are anticipated to be in effect when those differences reverse. The deferred tax provision generally represents the net change in deferred tax assets and liabilities during the period including any changes in valuation allowances. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established when it is necessary to reduce deferred tax assets to an amount for which realization is likely. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company and its subsidiary file a consolidated federal income tax return. Advertising Costs. All advertising costs are expensed as incurred. Cost of Sales. The Company includes the cost of food, beverage and paper, net of any vendor discounts and rebates, in cost of sales. Pre-opening Costs. The Company’s pre-opening costs generally include payroll costs and travel associated with the opening of a new restaurant, rent and promotional costs. For the years ended December 30, 2018 and December 31, 2017 and January 1, 2017 , pre-opening costs were $0.6 million, $0.5 million and $0.3 million. These costs are expensed as incurred prior to a restaurant opening and are included in operating expenses in the accompanying consolidated statements of comprehensive income. Insurance. The Company is self-insured for workers’ compensation, general liability and medical insurance claims under policies where it pays all claims, subject to stop-loss limitations both for individual claims and in certain cases claims in the aggregate. Losses are accrued based upon the Company’s estimates of the aggregate liability for claims based on Company experience and other methods used to measure such estimates. The Company does not discount any of its self-insurance obligations. Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Fair value is determined based on the following: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. Financial instruments include cash and cash equivalents, trade and other receivables, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, trade and other receivables and accounts payable approximate fair value because of the short-term nature of these financial instruments. The fair value of the Carrols Restaurant Group 8.0% Senior Secured Second Lien Notes due 2022 is based on a recent trading value, which is considered Level 2, and at December 30, 2018 and December 31, 2017 was approximately $277.1 million and $290.5 million , respectively. Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of long-lived assets, goodwill and intangible assets. Long-lived assets and definite-lived intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. As described in Note 5, the Company recorded long-lived asset impairment charges of $2.7 million , $1.7 million and $1.0 million during the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 , respectively. Stock-Based Compensation. The Company has an incentive stock plan under which incentive stock options, non-qualified stock options and non-vested shares may be granted to employees and non-employee directors. On an annual basis, the Company has granted non-vested shares under this plan. Non-vested shares granted to corporate employees and non-employee directors generally vest on a straight-line basis over three years. For non-vested stock awards, the fair market value of the award, determined based upon the closing value of the Company’s stock price on the grant date, is recorded to compensation expense on a straight-line basis over the requisite service period. See Note 11 to the consolidated financial statements. Concentrations of Credit Risk. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains its day-to-day operating cash balances in interest-bearing transaction accounts at financial institutions, which are insured by the Federal Deposit Insurance Corporation up to $250,000 . Although the Company maintains balances that exceed the federally insured limit, it has not experienced any losses related to these balances and believes its credit risk to be minimal. Segment Information. Operating segments are components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker in order to allocate resources and assess performance. The Company's chief operating decision maker currently evaluates the Company's operations from a number of different operational perspectives; however resource allocation decisions are made based on the chief operating decision maker's evaluation of the total Company operations. The Company derives all significant revenues from a single operating segment. Accordingly, the Company views the operating results of its Burger King® restaurants as one reportable segment. Recently Issued Accounting Pronouncements Not Yet Adopted. In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies the accounting for goodwill by eliminating step 2 from the goodwill impairment test. Under the new ASU, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized for the amount by which the carrying amount exceeds its fair value. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company believes that this pronouncement will have no impact on its consolidated financial statements and related disclosures. In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by issuing additional ASU's that provide clarification and further guidance around areas identified as potential implementation issues. The new standard requires a lessee to recognize a liability for lease obligations, representing the discounted obligation to make minimum lease payments, and a corresponding right-of-use asset on the balance sheet for all leases with a term longer than 12 months. The Company has adopted the new standard on December 31, 2018, the first day of fiscal 2019. The Company elected the optional transition method to initially apply the new lease standard at the adoption date and not adjust its comparative period consolidated financial statements. The Company will recognize a cumulative-effect adjustment to retained earnings of approximately $10.1 million on the date of adoption to eliminate the deferred gains on qualified sale-leaseback transactions. The Company has elected the package of three practical expedients, which permits the Company not to reassess prior conclusions about lease identification, lease classification and initial direct costs. The Company has not elected the use-of-hindsight or the practical expedient in determining lease term or impairment of right-of-use assets. In addition, the Company has elected a short-term lease exemption policy that permits the Company to not apply the recognition requirements of the new lease standard to leases with a term of 12 months or less. The Company has also elected an accounting policy to not separate lease and non-lease components for certain classes of leases. The adoption of this ASU will have a material effect on our consolidated balance sheet and will impact the related disclosures. The Company is finalizing the impact of the standard on our accounting policies, processes, disclosures and internal control over financial reporting. Upon adoption, the Company expects to recognize lease liabilities of approximately $500 million to $550 million based on the present value of remaining minimum rental payments using the discount rate as of the effective date and corresponding right-of-use assets based upon the operating lease liabilities adjusted for prepaid and deferred non-level rents, unamortized deferred sale-leaseback gains, unamortized lease acquisition costs and unamortized favorable and unfavorable lease balances. As the impact of the standard is non–cash in nature, the Company does not anticipate its adoption having an impact on the consolidated statements of cash flows. Recently Issued Accounting Pronouncements Adopted. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies certain elements of accounting for employee share-based payment transactions, including income tax consequences, the classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this ASU in the first quarter of 2017. Upon adoption of this ASU, the Company elected to change its accounting policy and account for forfeitures when they occur. The Company recorded a $3.7 million cumulative-effect adjustment in 2017 to increase deferred tax assets and retained earnings as a result of the recognition of excess tax benefits previously unrealized. Prior periods have not been adjusted for the adoption of this ASU. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the classification of certain cash receipts and payments in the statement of cash flows in order to eliminate diversity in practice. This update was adopted by the Company on January 1, 2018. The new guidance has not impacted the classification of cash receipts and cash payments in the Company's consolidated financial statements and related disclosures. In May 2014, the FASB issued amended guidance for revenue recognition. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance requires improved disclosure to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance and was adopted by the Company on January 1, 2018. The new guidance has not impacted the Company's recognition of revenue from Company-operated restaurant sales and has no impact on the manner in which the Company recognizes revenue as the Company’s advertising fund and gift card program are run by its franchisor. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisition [Text Block] | Acquisitions 2018 Acquisitions During the year ended December 30, 2018 , the Company acquired a total of 44 restaurants from other franchisees, which are referred to as the "2018 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Market Location February 13, 2018 (1) 1 $ — New York August 21, 2018 (2) 2 1,666 Detroit, Michigan September 5, 2018 (2) 31 25,930 Western Virginia October 2, 2018 10 10,506 South Carolina and Georgia 44 $ 38,102 (1) This acquisition resulted in a bargain purchase gain because the fair value of net assets acquired, largely representing a franchise right asset of $0.3 million , exceeded the total fair value of consideration paid by $0.2 million . The Company recognized this gain and recorded it as "Gain on bargain purchase" in the consolidated statements of comprehensive income. (2) Acquisitions resulting from the exercise of the ROFR. The Company allocated the aggregate purchase price to the net tangible and intangible assets acquired in the acquisitions at their estimated fair values. The following table summarizes the final allocation of the aggregate purchase price for the four 2018 acquisitions: Inventory $ 401 Restaurant equipment 2,092 Restaurant equipment - subject to capital lease 43 Leasehold improvements 1,329 Franchise fees 1,264 Franchise rights (Note 4) 31,275 Favorable leases (Note 4) 587 Deferred taxes 346 Goodwill (Note 4) 1,677 Capital lease obligations for restaurant equipment (49 ) Unfavorable leases (Note 4) (624 ) Accounts payable (9 ) Net assets acquired $ 38,332 The results of operations for the restaurants acquired are included from the closing date of the respective acquisition. The 2018 acquired restaurants contributed restaurant sales of $16.9 million during the year ended December 30, 2018 . It is impracticable to disclose net earnings for the post-acquisition periods as net earnings of these restaurants were not tracked on a collective basis due to the integration of administrative functions, including field supervision. The pro forma impact on the results of operations for restaurants acquired in 2018 and 2017 is included below. The pro forma results of operations are not necessarily indicative of the results that would have occurred had the restaurants acquired in 2018 and 2017 been consummated at the beginning of the periods presented, nor are they necessarily indicative of any future consolidated operating results. The following table summarizes the Company's unaudited proforma operating results: Year Ended December 30, 2018 December 31, 2017 Restaurant sales $ 1,217,891 $ 1,170,627 Net income $ 13,684 $ 12,464 Basic and diluted net income per share $ 0.30 $ 0.28 This pro forma financial information does not give effect to any anticipated synergies, operating efficiencies or cost savings or any integration costs related to the 2018 acquired restaurants. The proforma results exclude acquisition costs recorded as general and administrative expenses of $1.4 million and $1.8 million during the years ended December 30, 2018 and December 31, 2017 , respectively. 2017 Acquisitions During the year ended December 31, 2017 , the Company acquired a total of 64 restaurants from other franchisees, which are referred to as the "2017 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Market Location February 28, 2017 43 $ 20,366 Cincinnati, Ohio June 5, 2017 (1) 17 16,355 Baltimore, Maryland and Washington, DC November 28, 2017 4 1,202 Maine 64 $ 37,923 (1) Acquisition resulting from the exercise of the ROFR. The Company allocated the aggregate purchase price to the net tangible and intangible assets acquired in the acquisitions at their estimated fair values. The following table summarizes the final allocation of the aggregate purchase price for the three 2017 acquisitions: Trade and other receivables $ 486 Inventory 616 Prepaid expenses 192 Other assets 52 Restaurant equipment 3,290 Restaurant equipment - subject to capital lease 264 Leasehold improvements 2,496 Franchise fees 1,315 Franchise rights (Note 4) 24,691 Favorable leases (Note 4) 1,100 Deferred taxes (4,357 ) Goodwill (Note 4) 13,923 Capital lease obligations for restaurant equipment (316 ) Unfavorable leases (Note 4) (2,997 ) Accounts payable (880 ) Accrued payroll, related taxes and benefits (270 ) Other liabilities (1,682 ) Net assets acquired $ 37,923 The results of operations for the restaurants acquired are included from the closing date of the respective acquisition. The 2017 acquired restaurants contributed restaurant sales of $90.2 million and $64.9 million during the years ended December 30, 2018 and December 31, 2017 , respectively. It is impracticable to disclose net earnings for the post-acquisition periods as net earnings of these restaurants were not tracked on a collective basis due to the integration of administrative functions, including field supervision. The pro forma impact on the results of operations for restaurants acquired in 2017 and 2016 is included below. The pro forma results of operations are not necessarily indicative of the results that would have occurred had the restaurants acquired in 2017 and 2016 been consummated at the beginning of the periods presented, nor are they necessarily indicative of any future consolidated operating results. The following table summarizes the Company's unaudited proforma operating results: Year Ended December 31, 2017 January 1, 2017 Restaurant sales $ 1,114,642 $ 1,071,437 Net income $ 9,546 $ 52,730 (1) Basic and diluted net income per share $ 0.21 $ 1.18 (1) Includes a tax benefit of $30.4 million for the reversal of the Company's valuation allowance on its net deferred income tax assets (see Note 10). This pro forma financial information does not give effect to any anticipated synergies, operating efficiencies or cost savings or any integration costs related to the 2017 acquired restaurants. The proforma results exclude acquisition costs recorded as general and administrative expenses of $1.8 million and $1.6 million during the years ended December 31, 2017 and January 1, 2017 , respectively. 2016 Acquisitions During the year ended January 1, 2017, the Company acquired a total of 56 restaurants from other franchisees, which are referred to as the "2016 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Number of Fee-Owned Restaurants (1) Market Location February 23, 2016 (2) 12 $ 7,127 Scranton/Wilkes-Barre, Pennsylvania May 25, 2016 6 12,080 5 Detroit, Michigan July 14, 2016 (2) 4 5,445 3 Detroit, Michigan August 23, 2016 7 8,755 6 Portland, Maine October 4, 2016 3 1,623 Raleigh, North Carolina November 15, 2016 17 7,251 Pittsburgh and Johnstown, Pennsylvania December 1, 2016 7 5,807 1 Columbus, Ohio 56 $ 48,088 15 (1) The 2016 acquisitions included the purchase of 15 fee-owned properties of which fourteen were sold in sale-leaseback transactions during 2016 for net proceeds of $19.1 million . (2) Acquisitions resulting from the exercise of the ROFR. The Company allocated the aggregate purchase price to the net tangible and intangible assets acquired in the acquisitions at their estimated fair values. The following table summarizes the final allocation of the aggregate purchase price for the seven 2016 acquisitions: Inventory $ 558 Land and buildings 19,387 Restaurant equipment 1,599 Restaurant equipment - subject to capital lease 435 Leasehold improvements 2,464 Franchise fees 1,121 Franchise rights 21,202 Favorable leases 390 Deferred taxes 216 Goodwill 2,431 Capital lease obligations for restaurant equipment (492 ) Unfavorable leases (1,152 ) Other liabilities (71 ) Net assets acquired $ 48,088 The results of operations for the restaurants acquired are included from the closing date of the respective acquisition. The 2016 acquired restaurants contributed restaurant sales of $70.8 million and $28.6 million during the years ended December 31, 2017 and January 1, 2017 , respectively. It is impracticable to disclose net earnings for the post-acquisition periods as net earnings of these restaurants were not tracked on a collective basis due to the integration of administrative functions, including field supervision. The pro forma impact on the results of operations for restaurants acquired in 2016 is included below. The pro forma results of operations are not necessarily indicative of the results that would have occurred had the restaurants acquired in 2016 been consummated at the beginning of the period presented, nor are they necessarily indicative of any future consolidated operating results. The following table summarizes the Company's unaudited proforma operating results: Year ended January 1, 2017 Restaurant sales $ 984,164 Net income $ 48,264 (1) Basic and diluted net income per share $ 1.07 (1) Includes a tax benefit of $30.4 million for the reversal of the Company's valuation allowance on its net deferred income tax assets (see Note 10). This pro forma financial information does not give effect to any anticipated synergies, operating efficiencies or cost savings or any integration costs related to the 2016 acquired restaurants. The proforma results exclude acquisition costs recorded as general and administrative expenses of $1.6 million during the year ended January 1, 2017 . Acquired Intangible Assets Goodwill recorded in connection with the acquisitions in 2018, 2017 and 2016 represents costs in excess of fair values assigned to the underlying net assets of acquired restaurants. Acquired goodwill that is expected to be deductible for income tax purposes was $0.5 million in 2018, $6.7 million in 2017 and $1.8 million in 2016. The weighted average amortization period of the intangible assets acquired is as follows: 2018 Acquisitions 2017 Acquisitions 2016 Acquisitions Favorable leases 17.2 15.2 15.4 Unfavorable leases 18.3 14.3 12.0 Franchise rights 31.6 27.9 28.0 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and Equipment Property and equipment at December 30, 2018 and December 31, 2017 consisted of the following: December 30, 2018 December 31, 2017 Land $ 8,779 $ 8,659 Owned buildings 9,488 9,950 Leasehold improvements 339,180 301,091 Equipment 244,446 227,284 Assets subject to capital leases 16,797 16,874 618,690 563,858 Less accumulated depreciation and amortization (328,873 ) (289,760 ) $ 289,817 $ 274,098 Assets subject to capital leases primarily pertain to buildings leased for certain restaurant locations and certain leases of restaurant equipment and had accumulated amortization at December 30, 2018 and December 31, 2017 of $13.7 million and $12.2 million , respectively. Depreciation expense for all property and equipment for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 was $49.3 million , $45.7 million and $39.9 million , respectively. |
Intangible Assets (Notes)
Intangible Assets (Notes) | 12 Months Ended |
Dec. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Franchise Rights, Favorable and Unfavorable Leases | Intangible Assets Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year. In performing its goodwill impairment test, the Company compared the net book value of its reporting unit to its estimated fair value, the latter determined by employing a combination of a discounted cash flow analysis and a market-based approach. There have been no recorded goodwill impairment losses during the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 . Goodwill at January 1, 2017 $ 22,869 Acquisitions of restaurants (Note 2) 13,923 Goodwill at December 31, 2017 36,792 Acquisitions of restaurants (Note 2) 1,677 Goodwill at December 30, 2018 $ 38,469 Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King® restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. The following is a summary of the Company’s franchise rights as of the respective balance sheet dates: December 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Franchise rights $ 283,918 $ 108,021 $ 252,643 $ 100,615 Amortization expense related to franchise rights for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 was $7.4 million , $6.8 million and $5.9 million , respectively, and the Company expects annual amortization to be $8.1 million in each of the next five fiscal years. No impairment charges were recorded related to the Company’s franchise rights during the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 . Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. The following is a summary of the Company’s favorable and unfavorable leases as of the respective balance sheet dates, which are included as assets and liabilities, respectively, on the accompanying consolidated balance sheets: December 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Favorable leases $ 8,148 $ 2,256 $ 7,805 $ 1,943 Unfavorable leases $ 18,423 $ 6,075 $ 18,164 $ 5,053 The net reduction of rent expense related to the amortization of favorable and unfavorable leases for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 was $0.8 million , $0.9 million and $0.9 million , respectively, and the Company expects the net reduction of rent expense to be $0.8 million in 2019 , $0.7 million in 2020 , $0.6 million in 2021 , $0.6 million in 2022 and $0.7 million in 2023 . |
Impairment Of Long-Lived Assets
Impairment Of Long-Lived Assets And Other Lease Charges | 12 Months Ended |
Dec. 30, 2018 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Asset Impairment Charges [Text Block] | Impairment of Long-Lived Assets and Other Lease Charges The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. The Company determined the fair value of restaurant equipment, for those restaurants reviewed for impairment, based on current economic conditions and the Company’s history of transferring these assets in the operation of its business. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. During the year ended December 30, 2018 , the Company recorded impairment and other lease charges of $3.7 million consisting of $0.4 million of capital expenditures at previously impaired restaurants, $0.4 million related to initial impairment charges for six underperforming restaurants, $1.9 million related to the write-off of defective product holding unit kitchen equipment that was replaced, losses of $0.8 million associated with sale-leaseback transactions of four restaurant properties, and other lease charges of $0.2 million . During the year ended December 31, 2017 , the Company recorded impairment and other lease charges of $2.8 million including $0.7 million for capital expenditures at previously impaired restaurants, $1.1 million related to initial impairment charges for five underperforming restaurants, $0.9 million of other lease charges primarily due to four restaurants and an acquired administrative office closed during the period and a loss of $0.1 million associated with the sale-leaseback of one restaurant property. During the year ended January 1, 2017 , the Company recorded impairment and other lease charges of $2.4 million including $0.9 million for capital expenditures at previously impaired restaurants, $0.2 million related to initial impairment charges for four underperforming restaurants and losses of $1.2 million associated with the sale-leaseback of seven restaurant properties. The following table presents the activity in the accrual for closed restaurant locations: December 30, 2018 December 31, 2017 Balance, beginning of year $ 2,028 $ 1,513 Provisions for closures 249 1,174 Changes in estimates of accrued costs (147 ) 81 Payments, net (889 ) (862 ) Other adjustments, including the effect of discounting future obligations 111 122 Balance, end of year $ 1,352 $ 2,028 Changes in estimates of accrued costs primarily relate to revisions of terminations of certain closed restaurant leases, changes in assumptions for sublease income assumptions and other costs. |
Other Liabilities, Long-Term (N
Other Liabilities, Long-Term (Notes) | 12 Months Ended |
Dec. 30, 2018 | |
Liabilities, Noncurrent [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Liabilities, Long-Term Other liabilities, long-term, at December 30, 2018 and December 31, 2017 consisted of the following: December 30, 2018 December 31, 2017 Deferred rent $ 16,610 $ 14,040 Other accrued occupancy costs 3,074 3,189 Accrued workers’ compensation and general liability claims 4,398 3,353 Deferred compensation 3,610 3,053 Other 120 175 $ 27,812 $ 23,810 Other accrued occupancy costs above include long-term obligations pertaining to closed restaurant locations and unamortized lease incentives. |
Leases
Leases | 12 Months Ended |
Dec. 30, 2018 | |
Leases [Abstract] | |
Leases Disclosure [Text Block] | Leases The Company utilizes land and buildings in its operations under various lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for twenty years and, in many cases, provide for renewal options and in most cases rent escalations. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. During the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 , the Company sold 5 , 3 and 38 restaurant properties, respectively, in sale-leaseback transactions for net proceeds of $8.4 million , $4.3 million and $53.6 million , respectively. These leases have been classified as operating leases and generally contain a twenty -year initial term plus renewal options. Deferred gains from sale-leaseback transactions of restaurant properties of $206 , $716 and $1,480 were recognized during the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 , respectively, and are being amortized over the term of the related leases. The amortization of deferred gains from sale-leaseback transactions were $1.6 million , $1.6 million and $1.8 million for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 , respectively. Minimum rent commitments under capital and non-cancelable operating leases at December 30, 2018 were as follows: Fiscal year ending: Capital Operating December 29, 2019 $ 2,180 $ 73,304 January 3, 2021 1,454 71,764 January 2, 2022 345 70,607 January 1, 2023 190 70,160 December 31, 2023 68 69,221 Thereafter 129 640,793 Total minimum lease payments 4,366 $ 995,849 Less amount representing interest (425 ) Total obligations under capital leases 3,941 Less current portion (1,948 ) Long-term obligations under capital leases $ 1,993 Total rent expense on operating leases, including contingent rent on both operating and capital leases, was as follows: Year ended December 30, 2018 December 31, 2017 January 1, 2017 Minimum rent on real property $ 72,206 $ 68,329 $ 59,076 Contingent rent on real property 9,203 7,619 5,738 Restaurant rent expense 81,409 75,948 64,814 Administrative and equipment rent 273 328 267 $ 81,682 $ 76,276 $ 65,081 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 30, 2018 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-term Debt Long-term debt at December 30, 2018 and December 31, 2017 consisted of the following: December 30, 2018 December 31, 2017 Collateralized: Carrols Restaurant Group 8% Senior Secured Second Lien Notes $ 275,000 $ 275,000 Capital leases 3,941 5,681 278,941 280,681 Less: current portion of capital leases (1,948 ) (1,808 ) Less: deferred financing costs (3,673 ) (4,770 ) Add: bond premium 3,503 4,416 Total Long-term Debt $ 276,823 $ 278,519 8% Notes. On April 29, 2015, the Company issued $200.0 million of 8.0% Senior Secured Second Lien Notes due 2022 (the "Existing Notes") pursuant to an indenture dated as of April 29, 2015 governing such notes. On June 23, 2017, the Company issued an additional $75.0 million principal amount of 8.0% Senior Secured Second Lien Notes due 2022 (the "Additional Notes" and together with the "Existing Notes", the "8% Notes") for net proceeds of $35.5 million , after repayment of outstanding revolving credit borrowings of $42.6 million and transaction fees of $1.8 million . The 8% Notes mature and are payable on May 1, 2022. Interest is payable semi-annually on May 1 and November 1 commencing November 1, 2015. The 8% Notes are guaranteed by the Company's subsidiaries and are secured by second-priority liens on substantially all of the Company's and its subsidiaries' assets (including a pledge of all of the capital stock and equity interests of its subsidiaries). The 8% Notes are redeemable at the option of the Company in whole or in part at any time after May 1, 2018 at a price of 104% of the principal amount plus accrued and unpaid interest, if any, if redeemed before May 1, 2019, 102% of the principal amount plus accrued and unpaid interest, if any, if redeemed after May 1, 2019 but before May 1, 2020 and 100% of the principal amount plus accrued and unpaid interest, if any, if redeemed after May 1, 2020. The 8% Notes are jointly and severally guaranteed, unconditionally and in full by the Company's subsidiaries which are directly or indirectly 100% owned by the Company. Separate condensed consolidating information is not included because Carrols Restaurant Group is a holding company that has no independent assets or operations. There are no significant restrictions on its ability or any of the guarantor subsidiaries' ability to obtain funds from its respective subsidiaries. All consolidated amounts in our financial statements are representative of the combined guarantors. The indenture governing the 8% Notes includes certain covenants, including limitations and restrictions on the Company and its subsidiaries who are guarantors under such indenture to, among other things: incur indebtedness or issue preferred stock; incur liens; pay dividends or make distributions in respect of capital stock or make certain other restricted payments or investments; sell assets; agree to payment restrictions affecting certain subsidiaries; enter into transaction with affiliates; or merge, consolidate or sell substantially all of the Company's assets. The indenture governing the 8% Notes and the security agreement provide that any capital stock and equity interests of any of the Company's subsidiaries will be excluded from the collateral to the extent that the par value, book value or market value of such capital stock or equity interests exceeds 20% of the aggregate principal amount of the 8% Notes then outstanding. The indenture governing the 8% Notes contains customary default provisions, including without limitation, a cross default provision pursuant to which it is an event of default under the 8% Notes and the indenture governing the 8% Notes if there is a default under any of the Company's indebtedness having an outstanding principal amount of $20.0 million or more which results in the acceleration of such indebtedness prior to its stated maturity or is caused by a failure to pay principal when due. Senior Credit Facility. On May 30, 2012, the Company entered into a senior credit facility, which has a maturity date of February 12, 2021, and was most recently amended on June 20, 2017 to increase the permitted indebtedness of our second lien notes to a principal amount not to exceed $300.0 million in order to provide for the additional $75.0 million of the 8% Notes issued on June 23, 2017. On January 13, 2017, the senior credit facility was amended to, among other things, provide for maximum revolving credit borrowings of up to $73.0 million (including $20.0 million available for letters of credit). The amended senior credit facility also provides for potential incremental borrowing increases of up to $25.0 million , in the aggregate. As of December 30, 2018 , there were no revolving credit borrowings outstanding and $11.6 million of letters of credit were issued under the amended senior credit facility. After reserving for issued letters of credit and outstanding revolving credit borrowings, $61.4 million was available for revolving credit borrowings under the amended senior credit facility. Borrowings under the amended senior credit facility bear interest at a rate per annum, at the Company’s option, based on (all terms as defined in the Company's amended senior credit facility): (i) the Alternate Base Rate plus the applicable margin of 1.75% to 2.75% based on the Company’s Adjusted Leverage Ratio, or (ii) the LIBOR Rate plus the applicable margin of 2.75% to 3.75% based on the Company’s Adjusted Leverage Ratio. At December 30, 2018 , the Company's Alternate Base Rate margin was 1.75% and the LIBOR Rate margin was 2.75% based on the Company's Adjusted Leverage Ratio at the end of the third quarter of 2018. The Company’s obligations under the amended senior credit facility are guaranteed by its subsidiaries and are secured by first priority liens on substantially all of the assets of the Company and its subsidiaries, including a pledge of all of the capital stock and equity interests of its subsidiaries. Under the amended senior credit facility, the Company is required to make mandatory prepayments of borrowings in the event of dispositions of assets, debt issuances and insurance and condemnation proceeds (all subject to certain exceptions). The amended senior credit facility contains certain covenants, including without limitation, those limiting the Company’s and its subsidiaries' ability to, among other things, incur indebtedness, incur liens, sell or acquire assets or businesses, change the character of its business in all material respects, engage in transactions with related parties, make certain investments, make certain restricted payments or pay dividends. In addition, the amended senior credit facility requires the Company to meet certain financial ratios, including a Fixed Charge Coverage Ratio, Adjusted Leverage Ratio and First Lien Leverage Ratio (all as defined under the amended senior credit facility). The Company was in compliance with the covenants under its senior credit facility at December 30, 2018 . The amended senior credit facility contains customary default provisions, including that the lenders may terminate their obligation to advance and may declare the unpaid balance of borrowings, or any part thereof, immediately due and payable upon the occurrence and during the continuance of customary defaults which include, without limitation, payment default, covenant defaults, bankruptcy type defaults, cross-defaults on other indebtedness, judgments or upon the occurrence of a change of control. At December 30, 2018 , principal payments required on long-term debt, including capital leases, were as follows: Fiscal year ending: December 29, 2019 $ 1,948 January 3, 2021 1,357 January 2, 2022 301 January 1, 2023 275,169 December 31, 2023 56 Thereafter 110 $ 278,941 The weighted average interest rate on all debt, excluding lease financing obligations, for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 was 7.9% , 7.7% and 7.9% , respectively. Interest expense on the Company’s long-term debt, excluding lease financing obligations, was $23.5 million , $21.6 million and $18.2 million for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes was comprised of the following: Year ended December 30, 2018 December 31, 2017 January 1, 2017 Current: Federal $ — $ — $ — State 326 30 — 326 30 — Deferred: Federal (598 ) (219 ) 1,297 State 115 793 992 (483 ) 574 2,289 Change in valuation allowance — — (30,374 ) Provision (benefit) for income taxes $ (157 ) $ 604 $ (28,085 ) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. The components of deferred income tax assets and liabilities at December 30, 2018 and December 31, 2017 were as follows: December 30, 2018 December 31, 2017 Deferred income tax assets: Deferred income on sale-leaseback of certain real estate $ 2,505 $ 2,848 Lease financing obligations 182 173 Postretirement benefit obligations 935 877 Stock-based compensation expense 1,326 827 Federal net operating loss carryforwards 18,955 17,730 State net operating loss carryforwards 3,902 4,095 Goodwill and other intangibles, net 1,301 1,590 Occupancy costs 6,091 5,863 Tax credit carryforwards 28,827 24,982 Accrued vacation benefits 2,060 1,851 Accrued workers compensation 1,189 1,141 Accumulated other comprehensive income-postretirement benefits 140 326 Other 1,983 1,706 Net deferred income tax assets $ 69,396 $ 64,009 Deferred income tax liabilities: Inventory and other reserves (167 ) (116 ) Property and equipment depreciation (19,870 ) (15,701 ) Franchise rights (21,068 ) (20,545 ) Total deferred income tax liabilities $ (41,105 ) $ (36,362 ) Carrying value of net deferred income tax assets $ 28,291 $ 27,647 The Company's federal net operating loss carryforwards generated prior to December 31, 2017 expire beginning in 2033. As of December 30, 2018 , the Company had federal net operating loss carryforwards of approximately $89.6 million . The Company's state net operating loss carryforwards expire beginning in 2019 through 2038. In 2014, the Company recorded a valuation allowance on all of its net deferred tax assets. During the fourth quarter of 2016, the Company evaluated evidence to consider the reversal of the valuation allowance on its net deferred income tax assets and determined in the fourth quarter of fiscal 2016 that there was sufficient positive evidence to conclude that it is more likely than not its deferred income tax assets are realizable. In determining the likelihood of future realization of the deferred income tax assets as of January 1, 2017, the Company considered both positive and negative evidence and weighted the effect of such evidence based upon its objectivity as required by ASC 740. As a result, the Company believed that the weight of the positive evidence, including the cumulative income position in the three most recent years as of January 1, 2017 (as adjusted for non-recurring items and permanent differences between book and tax) and forecasts for a sustained level of future taxable income, was sufficient to overcome the weight of the negative evidence, and recorded a $30.4 million tax benefit to release the full valuation allowance against the Company's deferred income tax assets in the fourth quarter of 2016. The Company has performed the required assessment of positive and negative evidence regarding the realization of deferred income tax assets in accordance with ASC 740 at December 31, 2018 and December 31, 2017. In determining the likelihood of future realization of the deferred income tax assets as of December 30, 2018 and December 31, 2017 the Company considered both positive and negative evidence and weighted the effect of such evidence based upon it's objectivity. The Company believes that the weight of the positive evidence, including the cumulative income position in the three most recent years (as adjusted for non-recurring items and permanent differences between book and tax) and forecasts for a sustained level of future taxable income, is sufficient to overcome the weight of the negative evidence and concludes that it does not need to record a valuation allowance against its deferred income tax assets. A reconciliation of the statutory federal income tax provision to the income tax provision (benefit) for the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 was as follows: Year ended December 30, 2018 December 31, 2017 January 1, 2017 Statutory federal income tax provision $ 2,089 $ 2,717 $ 6,085 State income taxes, net of federal benefit 325 572 403 Change in valuation allowance — — (30,374 ) Employment tax credits (3,059 ) (1,947 ) (5,408 ) Non-deductible expenses 415 336 965 Federal rate change — (762 ) — Miscellaneous 73 (312 ) 244 Provision (benefit) for income taxes $ (157 ) $ 604 $ (28,085 ) The Company's policy is to recognize interest and/or penalties related to uncertain tax positions in income tax expense. At December 30, 2018 and December 31, 2017 , the Company had no unrecognized tax benefits and no accrued interest related to uncertain tax positions. The tax years 2013 - 2018 remain open to examination by the major taxing jurisdictions to which the Company is subject. Although it is not reasonably possible to estimate the amount by which unrecognized tax benefits may increase within the next twelve months due to uncertainties regarding the timing of examinations, the Company does not expect unrecognized tax benefits to significantly change in the next twelve months. On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was signed into law. The Act reduces the corporate tax rate to 21% from 35% while retaining the employment tax credits the Company is eligible for. In addition, the Act provides for one hundred percent expensing of certain qualified property placed in service after September 27, 2017. The Company recorded a $0.8 million discrete tax benefit in 2017 to remeasure its net deferred taxes due to the lowering of the Federal income tax statutory rate to 21% under the Act. The measurement of general business credits, which are a large component of offsetting deferred tax assets, was not affected by the Act with the exception of making a final determination on whether or not to opt out of the one hundred percent expensing provision. The benefit for income taxes for the year ended December 30, 2018 contains net discrete tax adjustments of $0.1 million of income tax expense. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 30, 2018 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2016 Stock Incentive Plan. In 2016, the Company adopted a stock plan entitled the 2016 Stock Incentive Plan (the “2016 Plan”) and reserved and authorized a total of 4,000,000 shares of common stock for grant thereunder. As of December 30, 2018 , 3,274,873 shares were available for future grant or issuance. On January 15, 2018, the Company granted 350,000 non-vested shares of stock to officers of the Company. These shares vest over their three -year vesting period. In addition, during 2018 the Company issued an aggregate of 30,192 non-vested shares of common stock to non-employee directors. The non-vested stock awards vest over three years , provided that the participant has continuously remained a director of the Company. On January 15, 2017, the Company granted 340,000 non-vested shares of stock to officers of the Company. These shares vest over their three -year vesting period. In addition, during 2017 the Company issued an aggregate of 26,580 non-vested shares of common stock to non-employee directors. The non-vested stock awards vest over three years , provided that the participant has continuously remained a director of the Company. Stock-based compensation expense for the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 was $5.8 million , $3.5 million and $2.1 million , respectively. A summary of all non-vested share activity for the year ended December 30, 2018 was as follows: Shares Weighted Average Grant Date Price Non-vested at December 31, 2017 722,459 $ 12.76 Granted 380,192 $ 13.25 Vested (306,175 ) $ 12.43 Non-vested at December 30, 2018 796,476 $ 13.12 The fair value of the non-vested shares is based on the closing price of the Company's common stock on the date of grant. As of December 30, 2018 , total non-vested stock-based compensation expense was approximately $6.0 million and the remaining weighted average vesting period for non-vested shares was 1.4 years . |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 30, 2018 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred Stock [Text Block] | Stockholders' Equity Preferred Stock . In 2012, Carrols Restaurant Group issued to BKC 100 shares of Series A Convertible Preferred Stock pursuant to a certificate of designation. These shares are convertible into 9,414,580 shares of Carrols Restaurant Group Common Stock ("Carrols Common Stock"). In 2018, Carrols Restaurant Group exchanged the Series A Convertible Preferred Stock for Series B Convertible Preferred Stock, with substantially the same, powers, preferences and rights of the shares of Series A Convertible Preferred Stock, except to provide that such shares will be transferrable by BKC solely to certain of its affiliates or subsidiaries. The Preferred Stock ranks senior to Carrols Common Stock with respect to rights on liquidation, winding-up and dissolution of Carrols Restaurant Group. The Preferred Stock is perpetual, will receive any dividends and amounts upon a liquidation event on an as converted basis, does not pay interest and has no mandatory prepayment features. BKC also has certain approval and voting rights as set forth in the certificate of designation for the Preferred Stock so long as it owns greater than 10.0% of the outstanding shares of Carrols Common Stock (on an as-converted basis). The Preferred Stock will vote with the Company's common stock on an as converted basis and provides for the right of BKC to elect (a) two members to the Company's board of directors until the date on which the number of shares of common stock into which the outstanding shares of the Preferred Stock held by BKC are then convertible constitutes less than 14.5% of the total number of outstanding shares of common stock and (b) one member to the Company's board of directors until BKC owns Preferred Stock (on an as converted basis) of less than 10.0% of the total number of outstanding shares of common stock. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income per Share The Company applies the two-class method to calculate and present net income per share. The Company's non-vested share awards and Series B Convertible Preferred Stock issued to BKC contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method. The following table sets forth the calculation of basic and diluted net income per share: Year ended December 30, 2018 December 31, 2017 January 1, 2017 Basic net income per share: Net income $ 10,104 $ 7,159 $ 45,472 Less: Income attributable to non-vested shares (178 ) (118 ) (616 ) Less: Income attributable to preferred stock (2,071 ) (1,479 ) (9,461 ) Net income available to common stockholders $ 7,855 $ 5,562 $ 35,395 Weighted average common shares outstanding 35,715,372 35,416,531 35,178,329 Basic net income per share $ 0.22 $ 0.16 $ 1.01 Diluted net income per share: Net income $ 10,104 $ 7,159 $ 45,472 Weighted average common shares outstanding 35,715,372 35,416,531 35,178,329 Dilutive effect of preferred stock and non-vested shares 9,604,599 9,559,983 9,673,016 Dilutive weighted average common shares outstanding 45,319,971 44,976,514 44,851,345 Diluted net income per share (1) $ 0.22 $ 0.16 $ 1.01 (1) Diluted net income per share is equal to basic net income per share for the periods presented due to the allocation of earnings to participating securities under the two-class method of calculating basic net income per share causing basic net income per share to be lower than diluted net income per share calculated under the treasury-stock method. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Lease Guarantees. Fiesta Restaurant Group, Inc ("Fiesta"), a former wholly-owned subsidiary of the Company, was spun-off in 2012 to the Company's stockholders. As of December 30, 2018 , the Company is a guarantor under 27 Fiesta restaurant property leases, of which all except for one of those restaurants are still operating, with lease terms expiring on various dates through 2030. The Company is also the primary lessee on five Fiesta restaurant property leases, which it subleases to Fiesta. The Company is fully liable for all obligations under the terms of the leases in the event that Fiesta fails to pay any sums due under the lease, subject to indemnification provisions of the Separation and Distribution Agreement entered into in connection with the spin-off of Fiesta. The maximum potential amount of future undiscounted rental payments the Company could be required to make under these leases at December 30, 2018 was $16.3 million . The obligations under these leases will generally continue to decrease over time as these operating leases expire. No payments related to these guarantees have been made by the Company to date and none are expected to be required to be made in the future. The Company has not recorded a liability for these guarantees in accordance with ASC 460 - Guarantees as Fiesta has indemnified the Company for all such obligations and the Company did not believe it was probable it would be required to perform under any of the guarantees or direct obligations. Litigation. On August 21, 2012 Alan Vituli, the Company's former chairman and chief executive officer, filed an action in the Superior Court of the State of Delaware ( the “Court”) against the Company and Carrols. On July 29, 2016 the Company, Carrols, and Mr. Vituli agreed to fully resolve all of Mr. Vituli’s claims in the lawsuit for a total payment by the Company of $2.0 million . Upon the execution of releases and payment of the settlement amount, the litigation was dismissed. Net of a contribution from the Company's insurance carrier, $1.85 million is included in other income (expense) in the accompanying consolidated statements of comprehensive income for the year ended January 1, 2017. The Company is a party to various litigation matters that arise in the ordinary course of business. The Company does not believe that the ultimate resolution of any of these other matters will have a material adverse effect on its consolidated financial statements. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Transactions with Related Parties In connection with an acquisition of restaurants from BKC in 2012, the Company issued to BKC 100 shares of Series A Convertible Preferred Stock, which was exchanged for 100 shares of newly issued Series B Convertible Preferred Stock in 2018, and as of December 30, 2018 is convertible into approximately 20.3% of the outstanding shares of the Company's common stock after giving effect to the conversion of the Series B Preferred Stock. See Note 12—Stockholder's Equity for further information. Pursuant to the terms of the Series B Convertible Preferred Stock, BKC also has two representatives on the Company's board of directors. Each of the Company's restaurants operates under a separate franchise agreement with BKC. These franchise agreements generally provide for an initial term of twenty years and currently have an initial franchise fee of $50 . Any franchise agreement, including renewals, can be extended at the Company's discretion for an additional 20 year term, with BKC's approval, provided that, among other things, the restaurant meets the current Burger King® image standard and the Company is not in default under terms of the franchise agreement. In addition to the initial franchise fee, the Company generally pays BKC a monthly royalty at a rate of 4.5% of sales. Royalty expense was $50.5 million , $46.4 million , and $40.0 million for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 , respectively. The Company is also generally required to contribute 4% of restaurant sales from the Company's restaurants to an advertising fund utilized by BKC for its advertising, promotional programs and public relations activities, and amounts for additional local advertising in markets that approve such advertising. Advertising expense associated with these expenditures was $47.0 million , $43.5 million and $40.2 million for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 , respectively. As of December 30, 2018 , December 31, 2017 , and January 1, 2017 , the Company leased 244 , 251 and 275 of its restaurant locations from BKC, respectively. As of December 30, 2018 , for 117 of the restaurants, the terms and conditions of the lease with BKC are identical to those between BKC and their third-party lessor. Aggregate rent under these BKC leases for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 was $27.2 million , $27.6 million , and $27.8 million , respectively. The Company believes the related party lease terms have not been significantly affected by the fact that the Company and BKC are deemed to be related parties. As of December 30, 2018 , the Company owed BKC $9.3 million related to the payment of advertising, royalties and rent, which is remitted on a monthly basis. The Company has entered into an Area Development and Remodeling Agreement with BKC which will be subject to the closing of the transactions contemplated by the Merger Agreement and will supersede the amended operating agreement. See Note 19 - Subsequent Events for further information. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 30, 2018 | |
Retirement Benefits [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Retirement Plans The Company offers its salaried employees the option to participate in the Carrols Corporation Retirement Savings Plan (the “Retirement Plan”). The Retirement Plan includes a savings option pursuant to section 401(k) of the Internal Revenue Code in addition to a post-tax savings option. Participating employees may contribute up to 50% of their salary annually to either of the savings options, subject to other limitations. The employees may allocate their contributions to various investment options available under a trust established by the Retirement Plan. The Company may elect to contribute to the Retirement Plan on an annual basis. The Company's contribution is equal to 50% of the employee's contribution subject to a maximum annual amount and begins to vest after one year of service and fully vests after five years of service. A year of service is defined as a plan year during which an employee completes at least 1,000 hours of service. Expense recognized for the Company's contributions to the Retirement Plan was $0.7 million , $0.6 million and $0.5 million for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 , respectively. The Company also has an Amended and Restated Deferred Compensation Plan which permits employees not eligible to participate in the Retirement Plan because they have been excluded as “highly compensated” employees (as so defined in the Retirement Plan) to voluntarily defer portions of their base salary and annual bonus. All amounts deferred by the participants earn interest at 8% per annum. There is no Company matching on any portion of the funds. At December 30, 2018 and December 31, 2017 , a total of $3.6 million and $3.1 million , respectively, was deferred under this plan, including accrued interest and is included in Other liabilities on the consolidated balance sheet.. |
Postretirement Benefits (Notes)
Postretirement Benefits (Notes) | 12 Months Ended |
Dec. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Postretirement Benefits The Company sponsors a postretirement medical and life insurance plan covering substantially all administrative and restaurant management personnel who retire or terminate after qualifying for such benefits. The following was the change in benefit obligation, plan assets and funded status at December 30, 2018 and December 31, 2017 : December 30, 2018 December 31, 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 4,838 $ 4,566 Service cost 196 192 Interest cost 178 191 Plan participants' contributions 97 88 Actuarial gain (894 ) (122 ) Benefits paid (99 ) (115 ) Medicare part D prescription drug subsidy 4 38 Benefit obligation at end of year $ 4,320 $ 4,838 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer refunds (2 ) (11 ) Plan participants' contributions 97 88 Benefits paid (99 ) (115 ) Medicare part D prescription drug subsidy 4 38 Fair value of plan assets at end of year — — Funded status $ (4,320 ) $ (4,838 ) Weighted average assumptions: Discount rate used to determine benefit obligations 4.17 % 3.60 % Discount rate used to determine net periodic benefit cost 3.60 % 4.11 % The discount rate is determined based on high-quality fixed income investments that match the duration of expected retiree medical and life insurance benefits. The Company has typically used the corporate AA/Aa bond rate for this assumption. Components of net periodic postretirement benefit expense recognized in the consolidated statements of comprehensive income were: Year ended December 30, 2018 December 31, 2017 January 1, 2017 Service cost $ 196 $ 192 $ 150 Interest cost 178 191 165 Amortization of net loss 208 222 197 Amortization of prior service credit (352 ) (355 ) (355 ) Net periodic postretirement benefit expense $ 230 $ 250 $ 157 Amounts recognized in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit expense, consisted of: Year ended December 30, 2018 December 31, 2017 Prior service credit $ 1,265 $ 1,617 Net loss (1,826 ) (2,928 ) Deferred income taxes (85 ) 101 Accumulated other comprehensive loss $ (646 ) $ (1,210 ) The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit expense over the next fiscal year is $0.1 million . The amount of prior service credit for the postretirement benefit plan that will be amortized from accumulated other comprehensive loss into net periodic postretirement benefit expense over the next fiscal year is $0.4 million . The following table reflects the changes in accumulated other comprehensive loss for the years ended December 30, 2018 and December 31, 2017 : Year ended December 30, 2018 December 31, 2017 Actuarial gain $ (894 ) $ (122 ) Amortization of net loss (208 ) (222 ) Amortization of prior service credit 352 355 Deferred income taxes 186 (4 ) Total recognized in accumulated other comprehensive loss $ (564 ) $ 7 Assumed health care cost trend rates at the years ended were as follows: December 30, 2018 December 31, 2017 January 1, 2017 Medical benefits cost trend rate assumed for the following year pre-65 7.00 % 7.25 % 7.50 % Medical benefits cost trend rate assumed for the following year post-65 5.00 % 6.25 % 6.50 % Prescription drug cost trend rate assumed for the following year 9.50 % 10.50 % 10.50 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 3.78 % 3.89 % 3.89 % Year that the rate reaches the ultimate trend rate 2075 2075 2075 The assumed healthcare cost trend rate represents the Company's estimate of the annual rates of change in the costs of the healthcare benefits currently provided by the Company's postretirement plan. The healthcare cost trend rate implicitly considers estimates of healthcare inflation, changes in healthcare utilization and delivery patterns, technological advances and changes in the health status of the plan participants. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in the assumed healthcare cost trend rates would have the following effects: 1% Point Increase 1% Point Decrease Effect on total of service and interest cost $ 103 $ 75 Effect on postretirement benefit obligation $ 846 $ 649 During 2019 , the Company expects to contribute approximately $0.1 million to its postretirement benefit plan. The benefits, net of Medicare Part D subsidy receipts, expected to be paid in each year from 2019 through 2023 are $0.1 million , $0.2 million , $0.2 million , $0.2 million and $0.2 million respectively, and for the years 2024-2028 the aggregate amount is $1.2 million . |
Selected Quarterly Financial an
Selected Quarterly Financial and Earnings Data (Unaudited) (Notes) | 12 Months Ended |
Dec. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Selected Quarterly Financial Data (Unaudited) Year Ended December 30, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Restaurant sales $ 271,586 (1) $ 303,050 $ 296,917 (1) $ 307,754 (1) Income from operations 2,664 (1)(2) 13,833 (1)(2) 9,668 (1)(2) 7,190 (1)(2) Net income (3,102) 7,788 3,611 1,807 Basic and diluted net income per share (0.09 ) 0.17 0.08 0.04 Restaurants at end of period 807 807 838 849 Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Restaurant sales $ 239,852 (3) $ 279,478 (3) $ 285,235 $ 283,967 (3) Income from operations (1,406) (3)(4) 12,335 (3)(4) 8,684 (3)(4) 9,860 (3)(4) Net income (5,596) 6,039 2,795 3,921 Basic and diluted net income per share (0.16 ) 0.13 0.06 0.09 Restaurants at end of period 788 799 798 807 (1) In fiscal 2018 the Company acquired one restaurant in the first quarter in a bargain purchase, 33 restaurants in the third quarter, and ten restaurants in the fourth quarter (See Note 2). In fiscal 2018 the Company recorded acquisition costs related to the 2018 acquisitions of $0.1 million in the first quarter, $0.1 million in the second quarter, $0.8 million in the third quarter and $0.4 million in the fourth quarter (See Note 2). (2) In fiscal 2018 the Company recorded impairment and other lease charges of $0.3 million in the first quarter, $2.9 million in the second quarter, $0.2 million in the third quarter and $0.3 million in the fourth quarter (See Note 5). (3) In fiscal 2017 the Company acquired 43 restaurants in the first quarter, 17 restaurants in the second quarter, and four restaurants in the fourth quarter (See Note 2). In fiscal 2017 the Company recorded acquisition costs related to the 2017 and 2016 acquisitions of $0.7 million in the first quarter, $0.5 million in the second quarter, $0.5 million in the third quarter and $0.1 million in the fourth quarter (See Note 2). (4) In fiscal 2017 the Company recorded impairment and other lease charges of $0.5 million in the first quarter, $0.4 million in the second quarter, $1.0 million in the third quarter and $0.8 million in the fourth quarter (See Note 5). |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Dec. 30, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Column B Column C Column D Column E Description Balance at Beginning of Period Charged to Costs and Expenses Charged to other accounts Deductions Balance at End of Period Year Ended December 30, 2018 Deferred income tax valuation allowance $ — $ — $ — $ — $ — Year Ended December 31, 2017 Deferred income tax valuation allowance — — — — — Year Ended January 1, 2017 Deferred income tax valuation allowance 30,374 — — (30,374 ) — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent Events. On February 20, 2019 , the Company announced entry into a definitive Agreement and Plan of Merger ("Merger Agreement") to acquire 166 Burger King® and 55 Popeyes® restaurants from Cambridge. The transaction will be structured as a tax-free merger. Cambridge will receive approximately 7.36 million shares of the Company's common stock, and at closing will own approximately 16.6% of the Company's outstanding common shares. Cambridge will also receive shares of 9% PIK Series C Convertible Preferred Stock that will be convertible into approximately 7.45 million shares of Carrols common stock at $13.50 per share. The conversion of the preferred stock received by Cambridge will be subject to a vote of the Company's stockholders which will occur at the Company’s 2019 Annual Meeting of Stockholders, and will automatically convert into common stock upon stockholder approval of such conversion. All shares issued to Cambridge are subject to a two year restriction on sale or transfer subject to certain limited exceptions. As part of the transaction, Cambridge will have the right to designate up to two director nominees and two Cambridge executives will join the Company's Board of Directors upon completion of the merger. The Company expects to refinance the existing debt assumed as part of the transaction, along with the Company’s existing debt, through a new senior secured credit facility providing for term loan and revolving credit borrowings under a fully committed financing provided by Wells Fargo Bank, National Association ("Wells Fargo Bank"), Coöperatieve Rabobank U.A., New York Branch (“Rabobank”), Manufacturers and Traders Trust Company (“M&T Bank”) and SunTrust Bank, each as a lender. Wells Fargo Bank will act as the sole administrative agent. Wells Fargo Securities, LLC, Rabobank, M&T Bank and SunTrust Robinson Humphrey, Inc. will act as joint bookrunners and joint lead arrangers. The closing of the merger is not, however, conditioned on financing. The Company, Carrols and Carrols LLC has entered into an Area Development and Remodeling Agreement with BKC which will be subject to and effective upon the closing of the transactions contemplated by the Merger Agreement and have a term commencing on, the date of the closing of the Merger Agreement, and ending on September 30, 2024. Pursuant to the Area Development Agreement, which will supercede the amended operating agreement, BKC will grant the Company franchise pre-approval and assign to its right of first refusal under its franchise agreements with its franchisees to purchase all of the assets of a Burger King restaurant or all or substantially all of the voting stock of the franchisee, whether direct or indirect, on the same terms proposed between such franchisee and a third party purchaser in 16 states until the date that the Company has acquired more than an aggregate of 500 Burger King Restaurants. The Company will pay BKC $3.0 million in equal installment payments in 2019. The Company also will agree to open, build and operate 200 new Burger King restaurants as follows: 7 Burger King restaurants by September 30, 2019, 32 additional Burger King restaurants by September 30, 2020, 41 additional Burger King restaurants by September 30, 2021, 41 additional Burger King restaurants by September 30, 2022, 40 additional Burger King restaurants by September 30, 2023 and 39 additional Burger King restaurants by September 30, 2024 and will agree to remodel or upgrade 748 Burger King restaurants to BKC’s Burger King of Tomorrow restaurant image, including 90 Burger King restaurants by September 30, 2019, 130 additional Burger King restaurants by September 30, 2020, 118 additional Burger King restaurants by September 30, 2021, 131 additional Burger King restaurants by September 30, 2022, 138 additional Burger King restaurants by September 30, 2023 and 141 additional Burger King restaurants by September 30, 2024 and includes a contribution by BKC of $10 million to $12 million for upgrades to approximately 50 to 60 Burger King restaurants in 2019 and 2020 where BKC is the landlord on the lease. |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 12 Months Ended |
Dec. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation [Policy Text Block] | Basis of Consolidation. Carrols Restaurant Group is a holding company and conducts all of its operations through its wholly-owned subsidiary, Carrols Corporation (“Carrols”) and Carrols' wholly-owned subsidiary, Carrols LLC, a Delaware limited liability company, and Carrols LLC's wholly-owned subsidiary Republic Foods, Inc., a Maryland corporation ("Republic Foods") . The consolidated financial statements presented herein include the accounts of Carrols Restaurant Group and its wholly-owned subsidiary Carrols. Unless the context otherwise requires, Carrols Restaurant Group, Carrols and Carrols LLC are collectively referred to as the “Company.” All intercompany transactions have been eliminated in consolidation. |
Fiscal Period [Policy Text Block] | Fiscal Year. The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to December 31. The fiscal years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 each contained 52 weeks. |
Use of Estimates [Policy Text Block] | Use of Estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include: accrued occupancy costs, insurance liabilities, evaluation for impairment of long-lived assets and franchise rights, lease accounting matters, the valuation of acquired assets and liabilities and the valuation of deferred income tax assets. Actual results could differ from those estimates. |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Inventory [Policy Text Block] | Inventories. Inventories, consisting primarily of food, beverages, and paper supplies, are stated at the lower of cost determined on the first-in, first-out method or net realizable value. |
Property and Equipment [Policy Text Block] | Property and Equipment. Property and equipment is recorded at cost. The Company capitalizes all direct costs incurred to develop, construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Repairs and maintenance expenditures are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Owned buildings 9 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to capital leases Shorter of useful life or lease term Leasehold improvements are amortized over the shorter of their estimated useful lives or the underlying lease term. In circumstances where an economic penalty would be presumed by the non-exercise of one or more renewal options under the lease, the Company includes those renewal option periods when determining the lease term. For significant leasehold improvements made during the latter part of the lease term, the Company amortizes those improvements over the shorter of their useful life or the expected lease term. The expected lease term would consider the exercise of renewal options if the value of the improvements would imply that an economic penalty would be incurred without the renewal of the option. Building costs incurred for new restaurants on leased land are amortized over the lease term, which is generally a period of twenty years . |
Business Combinations Policy [Policy Text Block] | Business Combinations. In accordance with ASC 805, the Company allocates the purchase price of an acquired business to its identifiable assets and liabilities based on the estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. The excess value of the net identifiable assets and liabilities acquired over the purchase price of an acquired business is recorded as a bargain purchase gain. The Company uses all available information to estimate fair values of identifiable intangible assets and property acquired. In making these determinations, the Company may engage an independent third party valuation specialist to assist with the valuation of certain leasehold improvements, franchise rights and favorable and unfavorable leases. |
Intangible Assets [Policy Text Block] | Favorable and Unfavorable Leases. Favorable and unfavorable leases are due to the terms of acquired operating lease contracts being favorable or unfavorable relative to market terms of comparable leases on the acquisition date. Favorable and unfavorable leases are amortized as a component of rent expense on a straight-line basis over the remaining lease terms at the time of the acquisition. Franchise Rights. The Company determines the fair value of franchise rights based upon the acquired restaurants' future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment and assembled workforce to determine the fair value attributable to these franchise rights. Amounts allocated to franchise rights for each acquisition are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. Franchise Agreements. Fees for initial franchises and renewals are amortized using the straight-line method over the term of the agreement, which is generally twenty years . Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King® restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. |
Goodwill [Policy Text Block] | Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year. In performing its goodwill impairment test, the Company compared the net book value of its reporting unit to its estimated fair value, the latter determined by employing a combination of a discounted cash flow analysis and a market-based approach. |
Impairment or Disposal of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets. The Company assesses the recoverability of property and equipment, franchise rights and other intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining useful lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. |
Deferred Financing Costs [Policy Text Block] | Deferred Financing Costs. Financing costs incurred in obtaining long-term debt and lease financing obligations are capitalized and amortized over the life of the related obligation as interest expense using the effective interest method. |
Leases [Policy Text Block] | Leases. All leases are reviewed for capital or operating classification at their inception. The majority of the Company’s leases are operating leases. Many of the lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including any option periods included in the determination of the lease term. Contingent rentals are generally based upon a percentage of sales or a percentage of sales in excess of stipulated amounts and are generally not considered minimum rent payments but are recognized as rent expense when incurred. The Company utilizes land and buildings in its operations under various lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for twenty years and, in many cases, provide for renewal options and in most cases rent escalations. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. |
Lease Financing Obligations [Policy Text Block] | Lease Financing Obligations. Lease financing obligations pertain to real estate sale-leaseback transactions accounted for under the financing method. The assets (land and building) subject to these obligations remain on the Company’s consolidated balance sheets at their historical costs and such assets (excluding land) continue to be depreciated over their remaining useful lives. The proceeds received by the Company from these transactions are recorded as lease financing obligations and the lease payments are applied as payments of principal and interest. The selection of the interest rate on lease financing obligations is evaluated at inception of the lease based on the Company’s incremental borrowing rate adjusted to the rate required to prevent recognition of a non-cash loss or negative amortization of the obligation through the end of the primary lease term. |
Revenue Recognition [Policy Text Block] | Revenue Recognition . Revenues from Company restaurants, net of sales discounts are recognized when payment is tendered at the time of sale. Revenues are reported net of sales tax collected from customers and remitted to governmental taxing authorities. |
Income Tax [Policy Text Block] | Income Taxes. Deferred income tax assets and liabilities are based on the difference between the financial statement and tax basis of assets and liabilities as measured by the tax rates that are anticipated to be in effect when those differences reverse. The deferred tax provision generally represents the net change in deferred tax assets and liabilities during the period including any changes in valuation allowances. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established when it is necessary to reduce deferred tax assets to an amount for which realization is likely. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company and its subsidiary file a consolidated federal income tax return. |
Advertising Costs [Policy Text Block] | Advertising Costs. All advertising costs are expensed as incurred. |
Cost of Sales [Policy Text Block] | Cost of Sales. The Company includes the cost of food, beverage and paper, net of any vendor discounts and rebates, in cost of sales. |
Pre-opening Costs [Policy Text Block] | Pre-opening Costs. The Company’s pre-opening costs generally include payroll costs and travel associated with the opening of a new restaurant, rent and promotional costs. |
Insurance [Policy Text Block] | Insurance. The Company is self-insured for workers’ compensation, general liability and medical insurance claims under policies where it pays all claims, subject to stop-loss limitations both for individual claims and in certain cases claims in the aggregate. Losses are accrued based upon the Company’s estimates of the aggregate liability for claims based on Company experience and other methods used to measure such estimates. The Company does not discount any of its self-insurance obligations. |
Fair Value of Financial Instruments [Policy Text Block] | Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Fair value is determined based on the following: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. Financial instruments include cash and cash equivalents, trade and other receivables, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, trade and other receivables and accounts payable approximate fair value because of the short-term nature of these financial instruments. The fair value of the Carrols Restaurant Group 8.0% Senior Secured Second Lien Notes due 2022 is based on a recent trading value, which is considered Level 2, and at December 30, 2018 and December 31, 2017 was approximately $277.1 million and $290.5 million , respectively. Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of long-lived assets, goodwill and intangible assets. Long-lived assets and definite-lived intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. |
Stock-based Compensation [Policy Text Block] | Stock-Based Compensation. The Company has an incentive stock plan under which incentive stock options, non-qualified stock options and non-vested shares may be granted to employees and non-employee directors. On an annual basis, the Company has granted non-vested shares under this plan. Non-vested shares granted to corporate employees and non-employee directors generally vest on a straight-line basis over three years. For non-vested stock awards, the fair market value of the award, determined based upon the closing value of the Company’s stock price on the grant date, is recorded to compensation expense on a straight-line basis over the requisite service period. See Note 11 to the consolidated financial statements. |
Concentrations of Credit Risk [Policy Text Block] | Concentrations of Credit Risk. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains its day-to-day operating cash balances in interest-bearing transaction accounts at financial institutions, which are insured by the Federal Deposit Insurance Corporation up to $250,000 . Although the Company maintains balances that exceed the federally insured limit, it has not experienced any losses related to these balances and believes its credit risk to be minimal. |
Segment Information [Policy Text Block] | Segment Information. Operating segments are components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker in order to allocate resources and assess performance. The Company's chief operating decision maker currently evaluates the Company's operations from a number of different operational perspectives; however resource allocation decisions are made based on the chief operating decision maker's evaluation of the total Company operations. The Company derives all significant revenues from a single operating segment. Accordingly, the Company views the operating results of its Burger King® restaurants as one reportable segment. |
Subsequent Events [Policy Text Block] | n May 2014, the FASB issued amended guidance for revenue recognition. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance requires improved disclosure to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance and was adopted by the Company on January 1, 2018. The new guidance has not impacted the Company's recognition of revenue from Company-operated restaurant sales and has no impact on the manner in which the Company recognizes revenue as the Company’s advertising fund and gift card program are run by its franchisor. |
Intangible Assets (Policies)
Intangible Assets (Policies) | 12 Months Ended |
Dec. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill [Policy Text Block] | Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year. In performing its goodwill impairment test, the Company compared the net book value of its reporting unit to its estimated fair value, the latter determined by employing a combination of a discounted cash flow analysis and a market-based approach. |
Intangible Assets [Policy Text Block] | Favorable and Unfavorable Leases. Favorable and unfavorable leases are due to the terms of acquired operating lease contracts being favorable or unfavorable relative to market terms of comparable leases on the acquisition date. Favorable and unfavorable leases are amortized as a component of rent expense on a straight-line basis over the remaining lease terms at the time of the acquisition. Franchise Rights. The Company determines the fair value of franchise rights based upon the acquired restaurants' future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment and assembled workforce to determine the fair value attributable to these franchise rights. Amounts allocated to franchise rights for each acquisition are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. Franchise Agreements. Fees for initial franchises and renewals are amortized using the straight-line method over the term of the agreement, which is generally twenty years . Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King® restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. |
Impairment Of Long-Lived Asse_2
Impairment Of Long-Lived Assets And Other Lease Charges (Policies) | 12 Months Ended |
Dec. 30, 2018 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Impairment or Disposal of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets. The Company assesses the recoverability of property and equipment, franchise rights and other intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining useful lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. |
Leases (Policies)
Leases (Policies) | 12 Months Ended |
Dec. 30, 2018 | |
Leases [Abstract] | |
Leases [Policy Text Block] | Leases. All leases are reviewed for capital or operating classification at their inception. The majority of the Company’s leases are operating leases. Many of the lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including any option periods included in the determination of the lease term. Contingent rentals are generally based upon a percentage of sales or a percentage of sales in excess of stipulated amounts and are generally not considered minimum rent payments but are recognized as rent expense when incurred. The Company utilizes land and buildings in its operations under various lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for twenty years and, in many cases, provide for renewal options and in most cases rent escalations. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. |
Net Income (Loss) Per Share Ear
Net Income (Loss) Per Share Earnings per share narrative (Policies) | 12 Months Ended |
Dec. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | The Company applies the two-class method to calculate and present net income per share. The Company's non-vested share awards and Series B Convertible Preferred Stock issued to BKC contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method. |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property and equipment [Table Text Block] | The Company capitalizes all direct costs incurred to develop, construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Repairs and maintenance expenditures are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Owned buildings 9 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to capital leases Shorter of useful life or lease term Property and equipment at December 30, 2018 and December 31, 2017 consisted of the following: December 30, 2018 December 31, 2017 Land $ 8,779 $ 8,659 Owned buildings 9,488 9,950 Leasehold improvements 339,180 301,091 Equipment 244,446 227,284 Assets subject to capital leases 16,797 16,874 618,690 563,858 Less accumulated depreciation and amortization (328,873 ) (289,760 ) $ 289,817 $ 274,098 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | During the year ended December 30, 2018 , the Company acquired a total of 44 restaurants from other franchisees, which are referred to as the "2018 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Market Location February 13, 2018 (1) 1 $ — New York August 21, 2018 (2) 2 1,666 Detroit, Michigan September 5, 2018 (2) 31 25,930 Western Virginia October 2, 2018 10 10,506 South Carolina and Georgia 44 $ 38,102 (1) This acquisition resulted in a bargain purchase gain because the fair value of net assets acquired, largely representing a franchise right asset of $0.3 million , exceeded the total fair value of consideration paid by $0.2 million . The Company recognized this gain and recorded it as "Gain on bargain purchase" in the consolidated statements of comprehensive income. (2) Acquisitions resulting from the exercise of the ROFR. During the year ended December 31, 2017 , the Company acquired a total of 64 restaurants from other franchisees, which are referred to as the "2017 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Market Location February 28, 2017 43 $ 20,366 Cincinnati, Ohio June 5, 2017 (1) 17 16,355 Baltimore, Maryland and Washington, DC November 28, 2017 4 1,202 Maine 64 $ 37,923 (1) Acquisition resulting from the exercise of the ROFR. During the year ended January 1, 2017, the Company acquired a total of 56 restaurants from other franchisees, which are referred to as the "2016 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Number of Fee-Owned Restaurants (1) Market Location February 23, 2016 (2) 12 $ 7,127 Scranton/Wilkes-Barre, Pennsylvania May 25, 2016 6 12,080 5 Detroit, Michigan July 14, 2016 (2) 4 5,445 3 Detroit, Michigan August 23, 2016 7 8,755 6 Portland, Maine October 4, 2016 3 1,623 Raleigh, North Carolina November 15, 2016 17 7,251 Pittsburgh and Johnstown, Pennsylvania December 1, 2016 7 5,807 1 Columbus, Ohio 56 $ 48,088 15 |
Schedule of Purchase Price Allocation [Table Text Block] | The following table summarizes the final allocation of the aggregate purchase price for the three 2017 acquisitions: Trade and other receivables $ 486 Inventory 616 Prepaid expenses 192 Other assets 52 Restaurant equipment 3,290 Restaurant equipment - subject to capital lease 264 Leasehold improvements 2,496 Franchise fees 1,315 Franchise rights (Note 4) 24,691 Favorable leases (Note 4) 1,100 Deferred taxes (4,357 ) Goodwill (Note 4) 13,923 Capital lease obligations for restaurant equipment (316 ) Unfavorable leases (Note 4) (2,997 ) Accounts payable (880 ) Accrued payroll, related taxes and benefits (270 ) Other liabilities (1,682 ) Net assets acquired $ 37,923 The following table summarizes the final allocation of the aggregate purchase price for the seven 2016 acquisitions: Inventory $ 558 Land and buildings 19,387 Restaurant equipment 1,599 Restaurant equipment - subject to capital lease 435 Leasehold improvements 2,464 Franchise fees 1,121 Franchise rights 21,202 Favorable leases 390 Deferred taxes 216 Goodwill 2,431 Capital lease obligations for restaurant equipment (492 ) Unfavorable leases (1,152 ) Other liabilities (71 ) Net assets acquired $ 48,088 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table summarizes the Company's unaudited proforma operating results: Year ended January 1, 2017 Restaurant sales $ 984,164 Net income $ 48,264 (1) Basic and diluted net income per share $ 1.07 The following table summarizes the Company's unaudited proforma operating results: Year Ended December 31, 2017 January 1, 2017 Restaurant sales $ 1,114,642 $ 1,071,437 Net income $ 9,546 $ 52,730 (1) Basic and diluted net income per share $ 0.21 $ 1.18 (1) Includes a tax benefit of $30.4 million for the reversal of the Company's valuation allowance on its net deferred income tax assets (see Note 10). |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The weighted average amortization period of the intangible assets acquired is as follows: 2018 Acquisitions 2017 Acquisitions 2016 Acquisitions Favorable leases 17.2 15.2 15.4 Unfavorable leases 18.3 14.3 12.0 Franchise rights 31.6 27.9 28.0 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment [Table Text Block] | The Company capitalizes all direct costs incurred to develop, construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Repairs and maintenance expenditures are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Owned buildings 9 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to capital leases Shorter of useful life or lease term Property and equipment at December 30, 2018 and December 31, 2017 consisted of the following: December 30, 2018 December 31, 2017 Land $ 8,779 $ 8,659 Owned buildings 9,488 9,950 Leasehold improvements 339,180 301,091 Equipment 244,446 227,284 Assets subject to capital leases 16,797 16,874 618,690 563,858 Less accumulated depreciation and amortization (328,873 ) (289,760 ) $ 289,817 $ 274,098 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Goodwill [Line Items] | |
Schedule of Goodwill [Table Text Block] | Goodwill at January 1, 2017 $ 22,869 Acquisitions of restaurants (Note 2) 13,923 Goodwill at December 31, 2017 36,792 Acquisitions of restaurants (Note 2) 1,677 Goodwill at December 30, 2018 $ 38,469 |
Intangible Assets [Table Text Block] | The following is a summary of the Company’s franchise rights as of the respective balance sheet dates: December 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Franchise rights $ 283,918 $ 108,021 $ 252,643 $ 100,615 The following is a summary of the Company’s favorable and unfavorable leases as of the respective balance sheet dates, which are included as assets and liabilities, respectively, on the accompanying consolidated balance sheets: December 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Favorable leases $ 8,148 $ 2,256 $ 7,805 $ 1,943 Unfavorable leases $ 18,423 $ 6,075 $ 18,164 $ 5,053 |
Impairment Of Long-Lived Asse_3
Impairment Of Long-Lived Assets And Other Lease Charges (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Closed Restaurant Reserve [Table Text Block] | The following table presents the activity in the accrual for closed restaurant locations: December 30, 2018 December 31, 2017 Balance, beginning of year $ 2,028 $ 1,513 Provisions for closures 249 1,174 Changes in estimates of accrued costs (147 ) 81 Payments, net (889 ) (862 ) Other adjustments, including the effect of discounting future obligations 111 122 Balance, end of year $ 1,352 $ 2,028 |
Other Liabilities, Long-Term (T
Other Liabilities, Long-Term (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Liabilities, Noncurrent [Abstract] | |
Schedule of Other Liabilities [Table Text Block] | Other liabilities, long-term, at December 30, 2018 and December 31, 2017 consisted of the following: December 30, 2018 December 31, 2017 Deferred rent $ 16,610 $ 14,040 Other accrued occupancy costs 3,074 3,189 Accrued workers’ compensation and general liability claims 4,398 3,353 Deferred compensation 3,610 3,053 Other 120 175 $ 27,812 $ 23,810 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Leases [Abstract] | |
Schedule of minimum rent commitments [Table Text Block] | Minimum rent commitments under capital and non-cancelable operating leases at December 30, 2018 were as follows: Fiscal year ending: Capital Operating December 29, 2019 $ 2,180 $ 73,304 January 3, 2021 1,454 71,764 January 2, 2022 345 70,607 January 1, 2023 190 70,160 December 31, 2023 68 69,221 Thereafter 129 640,793 Total minimum lease payments 4,366 $ 995,849 Less amount representing interest (425 ) Total obligations under capital leases 3,941 Less current portion (1,948 ) Long-term obligations under capital leases $ 1,993 |
Schedule of rent expense [Table Text Block] | otal rent expense on operating leases, including contingent rent on both operating and capital leases, was as follows: Year ended December 30, 2018 December 31, 2017 January 1, 2017 Minimum rent on real property $ 72,206 $ 68,329 $ 59,076 Contingent rent on real property 9,203 7,619 5,738 Restaurant rent expense 81,409 75,948 64,814 Administrative and equipment rent 273 328 267 $ 81,682 $ 76,276 $ 65,081 |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt at December 30, 2018 and December 31, 2017 consisted of the following: December 30, 2018 December 31, 2017 Collateralized: Carrols Restaurant Group 8% Senior Secured Second Lien Notes $ 275,000 $ 275,000 Capital leases 3,941 5,681 278,941 280,681 Less: current portion of capital leases (1,948 ) (1,808 ) Less: deferred financing costs (3,673 ) (4,770 ) Add: bond premium 3,503 4,416 Total Long-term Debt $ 276,823 $ 278,519 |
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 30, 2018 , principal payments required on long-term debt, including capital leases, were as follows: Fiscal year ending: December 29, 2019 $ 1,948 January 3, 2021 1,357 January 2, 2022 301 January 1, 2023 275,169 December 31, 2023 56 Thereafter 110 $ 278,941 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes was comprised of the following: Year ended December 30, 2018 December 31, 2017 January 1, 2017 Current: Federal $ — $ — $ — State 326 30 — 326 30 — Deferred: Federal (598 ) (219 ) 1,297 State 115 793 992 (483 ) 574 2,289 Change in valuation allowance — — (30,374 ) Provision (benefit) for income taxes $ (157 ) $ 604 $ (28,085 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred income tax assets and liabilities at December 30, 2018 and December 31, 2017 were as follows: December 30, 2018 December 31, 2017 Deferred income tax assets: Deferred income on sale-leaseback of certain real estate $ 2,505 $ 2,848 Lease financing obligations 182 173 Postretirement benefit obligations 935 877 Stock-based compensation expense 1,326 827 Federal net operating loss carryforwards 18,955 17,730 State net operating loss carryforwards 3,902 4,095 Goodwill and other intangibles, net 1,301 1,590 Occupancy costs 6,091 5,863 Tax credit carryforwards 28,827 24,982 Accrued vacation benefits 2,060 1,851 Accrued workers compensation 1,189 1,141 Accumulated other comprehensive income-postretirement benefits 140 326 Other 1,983 1,706 Net deferred income tax assets $ 69,396 $ 64,009 Deferred income tax liabilities: Inventory and other reserves (167 ) (116 ) Property and equipment depreciation (19,870 ) (15,701 ) Franchise rights (21,068 ) (20,545 ) Total deferred income tax liabilities $ (41,105 ) $ (36,362 ) Carrying value of net deferred income tax assets $ 28,291 $ 27,647 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the statutory federal income tax provision to the income tax provision (benefit) for the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 was as follows: Year ended December 30, 2018 December 31, 2017 January 1, 2017 Statutory federal income tax provision $ 2,089 $ 2,717 $ 6,085 State income taxes, net of federal benefit 325 572 403 Change in valuation allowance — — (30,374 ) Employment tax credits (3,059 ) (1,947 ) (5,408 ) Non-deductible expenses 415 336 965 Federal rate change — (762 ) — Miscellaneous 73 (312 ) 244 Provision (benefit) for income taxes $ (157 ) $ 604 $ (28,085 ) |
Stock-based Compensation Stock-
Stock-based Compensation Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of all non-vested share activity for the year ended December 30, 2018 was as follows: Shares Weighted Average Grant Date Price Non-vested at December 31, 2017 722,459 $ 12.76 Granted 380,192 $ 13.25 Vested (306,175 ) $ 12.43 Non-vested at December 30, 2018 796,476 $ 13.12 |
Net Income (Loss) Per Share E_2
Net Income (Loss) Per Share Earnings per Share Table (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the calculation of basic and diluted net income per share: Year ended December 30, 2018 December 31, 2017 January 1, 2017 Basic net income per share: Net income $ 10,104 $ 7,159 $ 45,472 Less: Income attributable to non-vested shares (178 ) (118 ) (616 ) Less: Income attributable to preferred stock (2,071 ) (1,479 ) (9,461 ) Net income available to common stockholders $ 7,855 $ 5,562 $ 35,395 Weighted average common shares outstanding 35,715,372 35,416,531 35,178,329 Basic net income per share $ 0.22 $ 0.16 $ 1.01 Diluted net income per share: Net income $ 10,104 $ 7,159 $ 45,472 Weighted average common shares outstanding 35,715,372 35,416,531 35,178,329 Dilutive effect of preferred stock and non-vested shares 9,604,599 9,559,983 9,673,016 Dilutive weighted average common shares outstanding 45,319,971 44,976,514 44,851,345 Diluted net income per share (1) $ 0.22 $ 0.16 $ 1.01 (1) Diluted net income per share is equal to basic net income per share for the periods presented due to the allocation of earnings to participating securities under the two-class method of calculating basic net income per share causing basic net income per share to be lower than diluted net income per share calculated under the treasury-stock method. |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of Net Funded Status [Table Text Block] | The following was the change in benefit obligation, plan assets and funded status at December 30, 2018 and December 31, 2017 : December 30, 2018 December 31, 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 4,838 $ 4,566 Service cost 196 192 Interest cost 178 191 Plan participants' contributions 97 88 Actuarial gain (894 ) (122 ) Benefits paid (99 ) (115 ) Medicare part D prescription drug subsidy 4 38 Benefit obligation at end of year $ 4,320 $ 4,838 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer refunds (2 ) (11 ) Plan participants' contributions 97 88 Benefits paid (99 ) (115 ) Medicare part D prescription drug subsidy 4 38 Fair value of plan assets at end of year — — Funded status $ (4,320 ) $ (4,838 ) Weighted average assumptions: Discount rate used to determine benefit obligations 4.17 % 3.60 % Discount rate used to determine net periodic benefit cost 3.60 % 4.11 % |
Schedule of Net Benefit Costs [Table Text Block] | Components of net periodic postretirement benefit expense recognized in the consolidated statements of comprehensive income were: Year ended December 30, 2018 December 31, 2017 January 1, 2017 Service cost $ 196 $ 192 $ 150 Interest cost 178 191 165 Amortization of net loss 208 222 197 Amortization of prior service credit (352 ) (355 ) (355 ) Net periodic postretirement benefit expense $ 230 $ 250 $ 157 |
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block] | Amounts recognized in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit expense, consisted of: Year ended December 30, 2018 December 31, 2017 Prior service credit $ 1,265 $ 1,617 Net loss (1,826 ) (2,928 ) Deferred income taxes (85 ) 101 Accumulated other comprehensive loss $ (646 ) $ (1,210 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The following table reflects the changes in accumulated other comprehensive loss for the years ended December 30, 2018 and December 31, 2017 : Year ended December 30, 2018 December 31, 2017 Actuarial gain $ (894 ) $ (122 ) Amortization of net loss (208 ) (222 ) Amortization of prior service credit 352 355 Deferred income taxes 186 (4 ) Total recognized in accumulated other comprehensive loss $ (564 ) $ 7 |
Schedule of Health Care Cost Trend Rates [Table Text Block] | Assumed health care cost trend rates at the years ended were as follows: December 30, 2018 December 31, 2017 January 1, 2017 Medical benefits cost trend rate assumed for the following year pre-65 7.00 % 7.25 % 7.50 % Medical benefits cost trend rate assumed for the following year post-65 5.00 % 6.25 % 6.50 % Prescription drug cost trend rate assumed for the following year 9.50 % 10.50 % 10.50 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 3.78 % 3.89 % 3.89 % Year that the rate reaches the ultimate trend rate 2075 2075 2075 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one-percentage-point change in the assumed healthcare cost trend rates would have the following effects: 1% Point Increase 1% Point Decrease Effect on total of service and interest cost $ 103 $ 75 Effect on postretirement benefit obligation $ 846 $ 649 |
Selected Quarterly Financial _2
Selected Quarterly Financial and Earnings Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Selected Quarterly Financial Data (Unaudited) Year Ended December 30, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Restaurant sales $ 271,586 (1) $ 303,050 $ 296,917 (1) $ 307,754 (1) Income from operations 2,664 (1)(2) 13,833 (1)(2) 9,668 (1)(2) 7,190 (1)(2) Net income (3,102) 7,788 3,611 1,807 Basic and diluted net income per share (0.09 ) 0.17 0.08 0.04 Restaurants at end of period 807 807 838 849 Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Restaurant sales $ 239,852 (3) $ 279,478 (3) $ 285,235 $ 283,967 (3) Income from operations (1,406) (3)(4) 12,335 (3)(4) 8,684 (3)(4) 9,860 (3)(4) Net income (5,596) 6,039 2,795 3,921 Basic and diluted net income per share (0.16 ) 0.13 0.06 0.09 Restaurants at end of period 788 799 798 807 (1) In fiscal 2018 the Company acquired one restaurant in the first quarter in a bargain purchase, 33 restaurants in the third quarter, and ten restaurants in the fourth quarter (See Note 2). In fiscal 2018 the Company recorded acquisition costs related to the 2018 acquisitions of $0.1 million in the first quarter, $0.1 million in the second quarter, $0.8 million in the third quarter and $0.4 million in the fourth quarter (See Note 2). (2) In fiscal 2018 the Company recorded impairment and other lease charges of $0.3 million in the first quarter, $2.9 million in the second quarter, $0.2 million in the third quarter and $0.3 million in the fourth quarter (See Note 5). (3) In fiscal 2017 the Company acquired 43 restaurants in the first quarter, 17 restaurants in the second quarter, and four restaurants in the fourth quarter (See Note 2). In fiscal 2017 the Company recorded acquisition costs related to the 2017 and 2016 acquisitions of $0.7 million in the first quarter, $0.5 million in the second quarter, $0.5 million in the third quarter and $0.1 million in the fourth quarter (See Note 2). (4) In fiscal 2017 the Company recorded impairment and other lease charges of $0.5 million in the first quarter, $0.4 million in the second quarter, $1.0 million in the third quarter and $0.8 million in the fourth quarter (See Note 5). |
Basis Of Presentation Narrative
Basis Of Presentation Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 30, 2018USD ($) | Apr. 01, 2018 | Jul. 02, 2017 | Dec. 30, 2018USD ($)restaurant | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | Dec. 30, 2012 | Dec. 31, 2018USD ($) | Sep. 30, 2018 | Jul. 01, 2018 | Oct. 01, 2017 | Apr. 02, 2017 | |
Entity Information [Line Items] | ||||||||||||
Cash and Cash Equivalents, at Carrying Value | $ 27,600,000 | $ 27,600,000 | ||||||||||
Restaurants Acquired | 10 | 1 | 17 | 44 | 4 | 278 | ||||||
Number of Restaurants | 849 | 807 | 799 | 849 | 807 | 838 | 807 | 798 | 788 | |||
Number of states | 18 | 18 | ||||||||||
Weeks In fiscal period | 52 | 52 | ||||||||||
Franchise Term Renewal Period | 20 years | |||||||||||
Franchise Agreement, Term | 20 years | |||||||||||
Long-term Debt, Fair Value | $ 277,100,000 | $ 277,100,000 | $ 290,500,000 | |||||||||
Asset Impairment Charges | 2,700,000 | 1,700,000 | $ 1,000,000 | |||||||||
Cash, FDIC Insured Amount | $ 250,000 | $ 250,000 | ||||||||||
Number of Reportable Segments | 1 | |||||||||||
Right of First Refusal, Number of States | 20 | 20 | ||||||||||
Cumulative-effect adjustment from adoption of ASU 2016-09 | 3,734,000 | |||||||||||
Deferred income-sale-leaseback of real estate | $ 10,073,000 | $ 10,073,000 | $ 11,451,000 | |||||||||
Minimum [Member] | ||||||||||||
Entity Information [Line Items] | ||||||||||||
Weeks In fiscal period | 52 | |||||||||||
Maximum [Member] | ||||||||||||
Entity Information [Line Items] | ||||||||||||
Weeks In fiscal period | 53 | |||||||||||
Retained Earnings [Member] | ||||||||||||
Entity Information [Line Items] | ||||||||||||
Cumulative-effect adjustment from adoption of ASU 2016-09 | $ 3,734,000 | |||||||||||
Subsequent Events | Scenario, Forecast | Minimum [Member] | ||||||||||||
Entity Information [Line Items] | ||||||||||||
Operating Lease, Liability | $ 500,000,000 | |||||||||||
Subsequent Events | Scenario, Forecast | Maximum [Member] | ||||||||||||
Entity Information [Line Items] | ||||||||||||
Operating Lease, Liability | $ 550,000,000 |
Basis Of Presentation Property
Basis Of Presentation Property and Equipment (Details) | 12 Months Ended |
Dec. 30, 2018 | |
Property and equipment [Line Items] | |
Operating leases, term | 20 years |
Building [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Useful life | 30 years |
Building [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Useful life | 9 years |
Equipment [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Useful life | 7 years |
Equipment [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Useful life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Useful life | 7 years |
Computer Equipment [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Useful life | 3 years |
Basis Of Presentation Stock-Bas
Basis Of Presentation Stock-Based Compensation (Details) | 12 Months Ended | |
Dec. 30, 2018 | Dec. 31, 2017 | |
Management [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Award Vesting Period | 3 years | 3 years |
Management [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Award Vesting Period | 3 years | |
Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Award Vesting Period | 3 years | 3 years |
Acquisition Table of 2017 Acqui
Acquisition Table of 2017 Acquisitions (Details) $ in Thousands | Oct. 02, 2018USD ($)restaurant | Sep. 05, 2018USD ($)restaurant | Aug. 21, 2018USD ($)restaurant | Feb. 13, 2018USD ($)restaurant | Nov. 28, 2017USD ($) | Jun. 05, 2017USD ($) | Feb. 28, 2017USD ($) | Dec. 30, 2018 | Apr. 01, 2018 | Jul. 02, 2017 | Dec. 30, 2018USD ($)restaurant | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | Dec. 30, 2012 |
Business Acquisition [Line Items] | ||||||||||||||
Restaurants Acquired | 10 | 1 | 17 | 44 | 4 | 278 | ||||||||
Purchase Price | $ 38,102 | $ 37,923 | $ 48,088 | |||||||||||
2018 Acquisitions [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Revenue of acquired restaurants since acquisition | $ 16,900 | |||||||||||||
Restaurants Acquired | restaurant | 44 | |||||||||||||
Purchase Price | $ 38,102 | |||||||||||||
February 28, 2017 Acquisition [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restaurants Acquired | 43 | |||||||||||||
Purchase Price | $ 20,366 | |||||||||||||
June 5, 2017 Acquisitions [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restaurants Acquired | 17 | |||||||||||||
Purchase Price | $ 16,355 | |||||||||||||
November 28, 2017 Acquisition [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restaurants Acquired | 4 | |||||||||||||
Purchase Price | $ 1,202 | |||||||||||||
2017 Acquisition [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restaurants Acquired | 64 | |||||||||||||
Purchase Price | $ 37,923 | |||||||||||||
NEW YORK | 2018 Acquisitions [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restaurants Acquired | restaurant | 1 | |||||||||||||
Purchase Price | $ 0 | |||||||||||||
MICHIGAN | 2018 Acquisitions [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restaurants Acquired | restaurant | 2 | |||||||||||||
Purchase Price | $ 1,666 | |||||||||||||
WEST VIRGINIA | 2018 Acquisitions [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restaurants Acquired | restaurant | 31 | |||||||||||||
Purchase Price | $ 25,930 | |||||||||||||
South Carolina And Georgia | 2018 Acquisitions [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Restaurants Acquired | restaurant | 10 | |||||||||||||
Purchase Price | $ 10,506 |
Acquisition Purchase Price Allo
Acquisition Purchase Price Allocation, 2017 Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Business Acquisition [Line Items] | |||
Inventory | $ 558 | ||
Restaurant equipment | 1,599 | ||
Restaurant equipment - subject to capital lease | 435 | ||
Leasehold improvements | 2,464 | ||
Franchise fees | 1,121 | ||
Franchise rights | 21,202 | ||
Favorable leases | 390 | ||
Goodwill, Acquired During Period | $ 1,677 | 13,923 | |
Goodwill | 38,469 | 36,792 | $ 22,869 |
Capital lease obligation for restaurant equipment | (492) | ||
Unfavorable leases | (1,152) | ||
Other liabilities | $ (71) | ||
2018 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Inventory | 401 | ||
Restaurant equipment | 2,092 | ||
Restaurant equipment - subject to capital lease | 43 | ||
Leasehold improvements | 1,329 | ||
Franchise fees | 1,264 | ||
Franchise rights | 31,275 | ||
Favorable leases | 587 | ||
Deferred taxes | (346) | ||
Capital lease obligation for restaurant equipment | (49) | ||
Unfavorable leases | (624) | ||
Accounts payable | (9) | ||
Net assets acquired | 38,332 | ||
2017 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Trade and other receivables | 486 | ||
Inventory | 616 | ||
Prepaid expenses | 192 | ||
Other assets | 52 | ||
Restaurant equipment | 3,290 | ||
Restaurant equipment - subject to capital lease | 264 | ||
Leasehold improvements | 2,496 | ||
Franchise fees | 1,315 | ||
Franchise rights | 24,691 | ||
Favorable leases | 1,100 | ||
Deferred taxes | (4,357) | ||
Capital lease obligation for restaurant equipment | (316) | ||
Unfavorable leases | (2,997) | ||
Accounts payable | (880) | ||
Accrued payroll, related taxes and benefits | (270) | ||
Other liabilities | (1,682) | ||
Net assets acquired | $ 37,923 |
Acquisition Pro Forma Informati
Acquisition Pro Forma Information, 2017 Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Business Acquisition [Line Items] | ||||
Income tax expense, valuation allowance | $ (30,400) | $ 0 | $ 0 | $ (30,374) |
2018 Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Restaurant sales | 1,217,891 | 1,170,627 | ||
Net income | $ 13,684 | $ 12,464 | ||
Basic and diluted net income (loss) per share | $ 0.30 | $ 0.28 | ||
2017 Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Restaurant sales | $ 1,114,642 | $ 1,071,437 | ||
Net income | $ 9,546 | $ 52,730 | ||
Basic and diluted net income (loss) per share | $ 0.21 | $ 1.18 |
Acquisition Table of 2016 Acqui
Acquisition Table of 2016 Acquisitions (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 30, 2018 | Apr. 01, 2018 | Jul. 02, 2017 | Dec. 30, 2018USD ($)restaurant | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | Dec. 30, 2012 | |
Business Acquisition [Line Items] | |||||||
Restaurants Acquired | 10 | 1 | 17 | 44 | 4 | 278 | |
Purchase Price | $ 38,102 | $ 37,923 | $ 48,088 | ||||
Proceeds from sale-leaseback transactions | $ 8,424 | $ 4,257 | $ 53,599 | ||||
2016 Acquisitions [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Properties purchased for sale-leaseback, number | 15 | ||||||
Restaurants Acquired | 56 | ||||||
Purchase Price | $ 48,088 | ||||||
Properties sold in sale-leaseback transactions | 14 | ||||||
Proceeds from sale-leaseback transactions | $ 19,100 | ||||||
February 23, 2016 Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Restaurants Acquired | 12 | ||||||
Purchase Price | $ 7,127 | ||||||
May 25, 2016 Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Properties purchased for sale-leaseback, number | 5 | ||||||
Restaurants Acquired | 6 | ||||||
Purchase Price | $ 12,080 | ||||||
July 14, 2016 Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Properties purchased for sale-leaseback, number | 3 | ||||||
Restaurants Acquired | 4 | ||||||
Purchase Price | $ 5,445 | ||||||
August 23, 2016 Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Properties purchased for sale-leaseback, number | 6 | ||||||
Restaurants Acquired | 7 | ||||||
Purchase Price | $ 8,755 | ||||||
October 4, 2016 Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Restaurants Acquired | 3 | ||||||
Purchase Price | $ 1,623 | ||||||
November 15, 2016 Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Restaurants Acquired | 17 | ||||||
Purchase Price | $ 7,251 | ||||||
December 1, 2016 Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Properties purchased for sale-leaseback, number | 1 | ||||||
Restaurants Acquired | 7 | ||||||
Purchase Price | $ 5,807 |
Acquisition Purchase Price Al_2
Acquisition Purchase Price Allocation, 2016 Acquisitions (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Business Acquisition [Line Items] | |||
Inventory | $ 558 | ||
Land and building | 19,387 | ||
Restaurant equipment | 1,599 | ||
Restaurant equipment - subject to capital lease | 435 | ||
Leasehold improvements | 2,464 | ||
Franchise fees | 1,121 | ||
Franchise rights | 21,202 | ||
Favorable leases | 390 | ||
Deferred taxes | 216 | ||
Goodwill | $ 38,469 | 36,792 | $ 22,869 |
Capital lease obligation for restaurant equipment | (492) | ||
Unfavorable leases | (1,152) | ||
Other liabilities | (71) | ||
Purchase price | 48,088 | ||
2016 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 2,431 |
Acquisition Pro forma informa_2
Acquisition Pro forma information, 2016 acquisitions (Details) - 2016 Acquisitions [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Restaurant sales | $ 984,164 |
Net income (loss) | $ 48,264 |
Basic and diluted net income (loss) per share | $ / shares | $ 1.07 |
Acquisition Table of 2015 Acqui
Acquisition Table of 2015 Acquisitions (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Jul. 01, 2018USD ($) | Apr. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 01, 2017USD ($) | Jul. 02, 2017USD ($) | Apr. 02, 2017USD ($) | Dec. 30, 2018USD ($)restaurant | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | Dec. 30, 2012 | |
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 10 | 1 | 17 | 44 | 4 | 278 | ||||||
Purchase Price | $ 38,102 | $ 37,923 | $ 48,088 | |||||||||
Proceeds from sale-leaseback transactions | $ 8,424 | 4,257 | $ 53,599 | |||||||||
Land and building | $ 19,387 | 19,387 | ||||||||||
Acquisition-related costs | $ 400 | $ 800 | $ 100 | $ 100 | $ 100 | $ 500 | $ 500 | $ 700 | ||||
2016 Acquisitions [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 56 | |||||||||||
Purchase Price | $ 48,088 | |||||||||||
Properties purchased for sale-leaseback, number | 15 | |||||||||||
Properties sold in sale-leaseback transactions | 14 | |||||||||||
Proceeds from sale-leaseback transactions | $ 19,100 | |||||||||||
Revenue of acquired restaurants since acquisition | $ 70,800 | $ 28,600 |
Acquisition Details (Details)
Acquisition Details (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Bargain Purchase, Gain Recognized, Amount | $ 230 | $ 0 | $ 0 | ||||||||||
Deferred income taxes | $ 500 | $ 6,700 | 500 | 6,700 | $ 1,800 | ||||||||
Acquisition-related costs | $ 400 | $ 800 | $ 100 | $ 100 | $ 100 | $ 500 | $ 500 | $ 700 | |||||
Income tax expense, valuation allowance | $ 30,400 | 0 | 0 | 30,374 | |||||||||
2017 Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue of acquired restaurants since acquisition | 90,200 | 64,900 | |||||||||||
Acquisition-related costs | 1,800 | 1,600 | |||||||||||
2018 Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue of acquired restaurants since acquisition | 16,900 | ||||||||||||
Acquisition-related costs | $ 1,400 | ||||||||||||
2016 Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue of acquired restaurants since acquisition | $ 70,800 | $ 28,600 | |||||||||||
Off-Market Favorable Lease [Member] | 2018 Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 17 years 2 months | ||||||||||||
Off-Market Favorable Lease [Member] | 2016 Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years 5 months | ||||||||||||
Off-Market Favorable Lease [Member] | 2017 Acquisition [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years 2 months | ||||||||||||
Above Market Leases [Member] | 2018 Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 18 years 3 months | ||||||||||||
Above Market Leases [Member] | 2016 Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | ||||||||||||
Above Market Leases [Member] | 2017 Acquisition [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years 3 months | ||||||||||||
Franchise Rights [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Bargain Purchase, Gain Recognized, Amount | $ 290 | ||||||||||||
Franchise Rights [Member] | 2018 Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 31 years 7 months | ||||||||||||
Franchise Rights [Member] | 2016 Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 28 years | ||||||||||||
Franchise Rights [Member] | 2017 Acquisition [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 27 years 11 months |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Property and equipment [Line Items] | |||
Land | $ 8,779 | $ 8,659 | |
Owned buildings | 9,488 | 9,950 | |
Leasehold improvements | 339,180 | 301,091 | |
Equipment | 244,446 | 227,284 | |
Assets subject to capital leases | 16,797 | 16,874 | |
Propert and equipment, gross | 618,690 | 563,858 | |
Less accumulated depreciation and amortization | (328,873) | (289,760) | |
Property and equipment, net | 289,817 | 274,098 | |
Capital leases, accumulated depreciation | 13,725 | 12,245 | |
Depreciation expense | 58,468 | 54,159 | $ 47,295 |
Property and Equipment [Member] | |||
Property and equipment [Line Items] | |||
Depreciation expense | $ 49,336 | $ 45,700 | $ 39,918 |
Intangible Assets Goodwill Disc
Intangible Assets Goodwill Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 36,792 | $ 22,869 | |
Goodwill, Acquired During Period | 1,677 | 13,923 | |
Goodwill | 38,469 | 36,792 | $ 22,869 |
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Intangible Assets Franchise Rig
Intangible Assets Franchise Rights Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Franchise Term Renewal Period | 20 years | ||
Franchise Rights, Gross | $ 283,918 | $ 252,643 | |
Franchise Rights, Accumulated Amortization | 108,021 | 100,615 | |
Franchise rights impairment | 0 | 0 | $ 0 |
Franchise Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 7,406 | $ 6,816 | $ 5,930 |
Expected Amortization, next fiscal year | 8,123 | ||
Expected Amortization, year three | 8,123 | ||
Expected Amortization, year four | 8,123 | ||
Expected Amortization, year five | $ 8,123 |
Intangible Assets Favorable and
Intangible Assets Favorable and Unfavorable Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Favorable lease, gross | $ 8,148 | $ 7,805 | |
Favorable leases, accumulated amortization | 2,256 | 1,943 | |
Unfavorable leases, gross | 18,423 | 18,164 | |
Unfavorable leases, accumulated amortization | 6,075 | 5,053 | |
Favorable and Unfavorable Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 830 | $ 892 | $ 869 |
Expected Amortization, next fiscal year | 760 | ||
Expected Amortization, year two | 690 | ||
Expected Amortization, year three | 628 | ||
Expected Amortization, year four | 642 | ||
Expected Amortization, year five | $ 662 |
Impairment Of Long-Lived Asse_4
Impairment Of Long-Lived Assets And Other Lease Charges (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Jul. 01, 2018USD ($) | Apr. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 01, 2017USD ($) | Jul. 02, 2017USD ($) | Apr. 02, 2017USD ($) | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Impairment and other lease charges | $ 300 | $ 200 | $ 2,900 | $ 300 | $ 800 | $ 1,000 | $ 400 | $ 500 | $ 3,685 | $ 2,827 | $ 2,355 |
Impairment charges | 2,700 | 1,700 | 1,000 | ||||||||
Sale Leaseback Transaction Current Period Loss Recognized | $ 800 | $ 100 | $ 1,200 | ||||||||
Sale Leaseback Losses, number of restaurants | 4 | 1 | 7 | ||||||||
Other lease charges | $ 900 | ||||||||||
Asset impairment charges, number of restaurants | 6 | 5 | 4 | ||||||||
Previously Impaired [Member] | |||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Impairment charges | $ 400 | $ 700 | $ 900 | ||||||||
Initial Impairments [Member] | |||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Impairment charges | $ 400 | $ 1,100 | $ 200 |
Impairment Of Long-Lived Asse_5
Impairment Of Long-Lived Assets And Other Lease Charges Closed Restaurant Reserve Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of year | $ 2,028 | $ 1,513 |
Payments, net | (889) | (862) |
Other adjustments | 111 | 122 |
Balance, end of year | 1,352 | 2,028 |
Provisions for closures [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provisions for restaurant closures | 249 | 1,174 |
Changes in estimates of accrued costs | 249 | 1,174 |
Changes in estimates [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provisions for restaurant closures | (147) | 81 |
Changes in estimates of accrued costs | $ (147) | $ 81 |
Other Liabilities, Long-Term (D
Other Liabilities, Long-Term (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Liabilities, Noncurrent [Abstract] | ||
Deferred rent | $ 16,610 | $ 14,040 |
Accrued Occupancy Costs | 3,074 | 3,189 |
Accrued workers' compensation and general liability claims | 4,398 | 3,353 |
Deferred compensation | 3,610 | 3,053 |
Other Accrued Liabilities, Noncurrent | 120 | 175 |
Other Liabilities, Noncurrent | $ 27,812 | $ 23,810 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Leases [Abstract] | |||
Sale leaseback transactions, number | 5 | 3 | 38 |
Proceeds from sale-leaseback transactions | $ 8,424 | $ 4,257 | $ 53,599 |
Operating leases, term | 20 years | ||
Sale leaseback transaction, deferred gains | $ 206 | 716 | 1,480 |
Amortization of deferred gains from sale leaseback transactions | $ 1,584 | $ 1,626 | $ 1,788 |
Leases Minimum Rent Disclosures
Leases Minimum Rent Disclosures (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
Capital lease payments due in twelve months | $ 2,180 | |
Capital lease payments due in two years | 1,454 | |
Capital lease payments due in three years | 345 | |
Capital lease payments due in four years | 190 | |
Capital lease payments due in five years | 68 | |
Capital lease payments due thereafter | 129 | |
Capital leases, future minimum payments due | 4,366 | |
Less amount representing interest | (425) | |
Total obligations under capital leases | 3,941 | $ 5,681 |
Less current portion | (1,948) | |
Long-term obligations under capital leases | 1,993 | |
Operating lease payments due in next twelve months | 73,304 | |
Operating lease payments due in two years | 71,764 | |
Operating lease payments due in three years | 70,607 | |
Operating lease payments due in four years | 70,160 | |
Operating lease payments due in five years | 69,221 | |
Operating lease payments due thereafter | 640,793 | |
Operating leases, future minimum payments due | $ 995,849 |
Leases Rent Expense Disclosures
Leases Rent Expense Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Operating Leased Assets [Line Items] | |||
Minimum rent on real property | $ 72,206 | $ 68,329 | $ 59,076 |
Contingent rent on real property | 9,203 | 7,619 | 5,738 |
Restaurant rent expense | 81,409 | 75,948 | 64,814 |
Administrative and equipment rent | 81,682 | 76,276 | 65,081 |
Rent expense on operating leases | 81,682 | 76,276 | 65,081 |
General and Administrative Expense [Member] | |||
Operating Leased Assets [Line Items] | |||
Administrative and equipment rent | 273 | 328 | 267 |
Rent expense on operating leases | $ 273 | $ 328 | $ 267 |
Long-Term Debt Long Term Debt (
Long-Term Debt Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 | Jun. 23, 2017 |
Long-term Debt, Unclassified [Abstract] | |||
Carrols Restaurant Group Senior Secured Second Lien Notes | $ 275,000 | $ 275,000 | |
Capital leases | 3,941 | 5,681 | |
Long-term Debt | 278,941 | 280,681 | |
Less: current portion | (1,948) | (1,808) | |
Less: deferred financing costs | 3,673 | 4,770 | $ 1,800 |
Add: bond premium | 3,503 | 4,416 | |
Long-term debt, net of current portion and deferred financing costs | $ 276,823 | $ 278,519 |
Long-Term Debt Senior Secured S
Long-Term Debt Senior Secured Second Lien Notes (Details) - USD ($) | Jun. 23, 2017 | Sep. 30, 2018 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Apr. 29, 2015 |
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of senior secured second lien notes | $ 0 | $ 79,875,000 | $ 0 | |||
Interest Rate | 8.00% | |||||
Proceeds from Issuance of Debt | $ 35,500,000 | $ 75,000,000 | ||||
Repayments of Debt | 42,600,000 | |||||
Debt Issuance Costs, Net | $ 1,800,000 | $ 3,673,000 | $ 4,770,000 | |||
Collateral exclusion for material subsidiaries, percentage of Senior Notes | 20.00% | |||||
Senior Notes, Cross Default Provision, Minimum Debt Principal Amount | $ 20,000,000 | |||||
Debt Instrument, Redemption, Period Two [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes, Redemption Price | 1.04 | |||||
Debt Instrument, Redemption, Period Three [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes, Redemption Price | 1.02 | |||||
Debt Instrument, Redemption, Period Four [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes, Redemption Price | $ 1 |
Long-Term Debt Senior Credit Fa
Long-Term Debt Senior Credit Facility (Details) - USD ($) | Jun. 23, 2017 | Sep. 30, 2018 | Dec. 30, 2018 | Jun. 20, 2017 | Jan. 13, 2017 | Apr. 29, 2015 |
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000,000 | |||||
Proceeds from Issuance of Debt | $ 35,500,000 | $ 75,000,000 | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 73,000,000 | |||||
Line of Credit Facility, Potential Incremental Increases | 25,000,000 | |||||
Long-term Line of Credit | $ 0 | |||||
Letters of Credit Outstanding, Amount | 11,600,000 | |||||
Line of Credit Facility, Unused Borrowing Capacity | $ 61,400,000 | |||||
Interest Rate | 8.00% | |||||
Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 20,000,000 | |||||
Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 1.75% | |||||
Base Rate [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 1.75% | |||||
Base Rate [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 2.75% | |||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Interest Rate at Period End | 2.75% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 2.75% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 3.75% |
Long-Term Debt Long-Term Debt D
Long-Term Debt Long-Term Debt Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Apr. 29, 2015 | |
Debt Disclosure [Abstract] | ||||
Senior Notes | $ 275,000 | $ 275,000 | ||
Interest Rate | 8.00% | |||
Debt, Weighted Average Interest Rate | 7.90% | 7.70% | 7.90% | |
Interest Expense, Debt | $ 23,532 | $ 21,589 | $ 18,208 |
Long-Term Debt Future Maturitie
Long-Term Debt Future Maturities (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Next Twelve Months | $ 1,948 | |
Year Two | 1,357 | |
Year Three | 301 | |
Year Four | 275,169 | |
Year Five | 56 | |
Thereafter | 110 | |
Long-term Debt | $ 278,941 | $ 280,681 |
Other Income (Expense) (Details
Other Income (Expense) (Details) $ in Thousands | 12 Months Ended | ||||||||
Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($)restaurant | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | |
Other Income and Expenses [Abstract] | |||||||||
Other Operating Income (Expense), Net | $ 424 | $ 333 | $ (338) | ||||||
Insured Event, Gain (Loss) | $ 1,200 | ||||||||
Properties damaged in fire | restaurant | 2 | ||||||||
Gain (Loss) on Condemnation | $ 500 | ||||||||
Number of Restaurants | 849 | 807 | 838 | 807 | 807 | 798 | 799 | 788 | |
Litigation Settlement, Expense | $ 1,850 |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Federal | $ 0 | $ 0 | $ 0 | |
State | 326 | 30 | 0 | |
Current Income Tax Expense (Benefit) | 326 | 30 | 0 | |
Federal | (598) | (219) | 1,297 | |
State | 115 | 793 | 992 | |
Deferred | (483) | 574 | 2,289 | |
Income tax expense, valuation allowance | $ (30,400) | 0 | 0 | (30,374) |
Provision (benefit) for income taxes | $ (157) | $ 604 | $ (28,085) |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Income Tax Disclosure [Abstract] | ||||
Deferred income on sale-leaseback of certain real estate | $ 2,505 | $ 2,848 | ||
Lease financing obligations | 182 | 173 | ||
Postretirement benefit expenses | 935 | 877 | ||
Stock-based compensation expense | 1,326 | 827 | ||
Federal net operating loss carryforwards | 18,955 | 17,730 | ||
State net operating loss carryforwards | 3,902 | 4,095 | ||
Goodwill and other intangibles, net | 1,301 | 1,590 | ||
Occupancy costs | 6,091 | 5,863 | ||
Tax credit carryforwards | 28,827 | 24,982 | ||
Accrued vacation benefits | 2,060 | 1,851 | ||
Accrued workers compensation | 1,189 | 1,141 | ||
Accumulated other comprehensive income-postretirement benefits | 140 | 326 | ||
Other | 1,983 | 1,706 | ||
Less: Valuation allowance | 0 | 0 | $ 0 | $ (30,374) |
Net deferred income tax assets | 69,396 | 64,009 | ||
Inventory and other reserves | (167) | (116) | ||
Property and equipment depreciation | (19,870) | (15,701) | ||
Franchise rights | (21,068) | (20,545) | ||
Deferred Tax Liabilities, Gross | (41,105) | (36,362) | ||
Carrying value of net deferred income tax assets | $ 28,291 | $ 27,647 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Federal operating loss carryforwards | $ 89,600 | |||
Income tax expense, valuation allowance | $ (30,400) | 0 | $ 0 | $ (30,374) |
Unrecognized Tax Benefits | 0 | 0 | ||
Change in valuation allowance | $ 30,400 | 0 | 0 | 30,374 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0 | 0 | ||
Discrete tax benefit | 800 | |||
Miscellaneous | $ 73 | $ (312) | $ 244 |
Income Taxes Effective Rate Rec
Income Taxes Effective Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Statutory federal income tax provision (benefit) | $ 2,089 | $ 2,717 | $ 6,085 | |
State income taxes (benefit), net of federal provision (benefit) | 325 | 572 | 403 | |
Change in valuation allowance | $ (30,400) | 0 | 0 | (30,374) |
Employment tax credits | (3,059) | (1,947) | (5,408) | |
Non-deductible expenses | 415 | 336 | 965 | |
Federal rate change | 0 | (762) | 0 | |
Miscellaneous | 73 | (312) | 244 | |
Provision (benefit) for income taxes | $ (157) | $ 604 | $ (28,085) |
Stock-based Compensation Stoc_2
Stock-based Compensation Stock-Based Compensation Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 5,812 | $ 3,518 | $ 2,053 |
Nonvested stock-based compensation expense | $ 6,000 | ||
Remaining weighted average vesting period | 1 year 4 months 17 days | ||
Management [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Awards Issued During Period | 350,000 | 340,000 | |
Stock Award Vesting Period | 3 years | 3 years | |
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Awards Issued During Period | 30,192 | 26,580 | |
Stock Award Vesting Period | 3 years | 3 years | |
2016 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Authorized Under Stock Incentive Plan | 4,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,274,873 |
Stock-based Compensation Summar
Stock-based Compensation Summary of Non-Vested Stock Activity (Details) | 12 Months Ended |
Dec. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested shares at beginning of period | shares | 722,459 |
Nonvested shares, Weighted Average Grant Date Price at beginning of period | $ / shares | $ 12.76 |
Grants in Period | shares | 380,192 |
Grants in Period, Weighted Average Grant Date Price | $ / shares | $ 13.25 |
Vested | shares | (306,175) |
Vested, Weighted Average Grant Date Price | $ / shares | $ 12.43 |
Nonvested shares at end of period | shares | 796,476 |
Nonvested shares, Weighted Average Grant Date Price at end of period | $ / shares | $ 13.12 |
Stockholder's Equity Preferred
Stockholder's Equity Preferred Stock (Details) | 12 Months Ended | |
Dec. 30, 2018Rateshares | Dec. 31, 2017shares | |
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | shares | 100 | 100 |
Convertible Preferred Stock, Common Shares Issuable upon Conversion | shares | 9,414,580 | |
Board of directors, number of members | 2 | |
Minimum [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Ownership | Rate | 10.00% | |
Board of directors, number of members | 1 | |
Maximum [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Ownership | Rate | 14.50% | |
Board of directors, number of members | 2 |
Net Income (Loss) Per Share E_3
Net Income (Loss) Per Share Earnings Per Share Table (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Earnings Per Share, Basic | $ 0.22 | $ 0.16 | $ 1.01 | ||||||||
Net income (loss) | $ 1,807 | $ 3,611 | $ 7,788 | $ (3,102) | $ 3,921 | $ 2,795 | $ 6,039 | $ (5,596) | $ 10,104 | $ 7,159 | $ 45,472 |
Net income available to common stockholders | $ 7,855 | $ 5,562 | $ 35,395 | ||||||||
Basic weighted average common shares outstanding | 35,715,372 | 35,416,531 | 35,178,329 | ||||||||
Basic and diluted net income (loss) per share | $ 0.04 | $ 0.08 | $ 0.17 | $ (0.09) | $ 0.09 | $ 0.06 | $ 0.13 | $ (0.16) | |||
Net income (loss) | $ 1,807 | $ 3,611 | $ 7,788 | $ (3,102) | $ 3,921 | $ 2,795 | $ 6,039 | $ (5,596) | $ 10,104 | $ 7,159 | $ 45,472 |
Basic weighted average common shares outstanding | 35,715,372 | 35,416,531 | 35,178,329 | ||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 9,604,599 | 9,559,983 | 9,673,016 | ||||||||
Diluted weighted average common shares outstanding | 45,319,971 | 44,976,514 | 44,851,345 | ||||||||
Basic and diluted net income (loss) per share | $ 0.04 | $ 0.08 | $ 0.17 | $ (0.09) | $ 0.09 | $ 0.06 | $ 0.13 | $ (0.16) | |||
Earnings Per Share, Diluted | $ 0.22 | $ 0.16 | $ 1.01 | ||||||||
Restricted Stock [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Less: income attributable to participating securities | $ (178) | $ (118) | $ (616) | ||||||||
Convertible Preferred Stock | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Less: income attributable to participating securities | $ (2,071) | $ (1,479) | $ (9,461) |
Commitments And Contingencies L
Commitments And Contingencies Lease Guarantees (Details) $ in Millions | 12 Months Ended |
Dec. 30, 2018USD ($) | |
Guarantor Obligations [Line Items] | |
Maximum potential undiscounted rental payments | $ 16.3 |
Loss Contingency Accrual, Payments | $ 0 |
Property Lease Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Property Leases | 27 |
Closed Restaurants [Member] | |
Guarantor Obligations [Line Items] | |
Property Leases | 1 |
Performance Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Property Leases | 5 |
Commitments And Contingencies_2
Commitments And Contingencies Litigation (Details) - USD ($) $ in Thousands | Jul. 29, 2016 | Jan. 01, 2017 |
Loss Contingencies [Line Items] | ||
Litigation Settlement, Amount (Deprecated 2017-01-31) | $ 2,000 | |
Litigation Settlement, Expense | $ 1,850 | |
Other Operating Income (Expense) [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement, Amount (Deprecated 2017-01-31) | $ 1,900 |
Related Parties (Details)
Related Parties (Details) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2018USD ($)yrRateshares | Dec. 31, 2017USD ($)shares | Jan. 01, 2017USD ($) | Jan. 03, 2016 | |
Related Party Transaction [Line Items] | ||||
Preferred Stock, Shares Issued | shares | 100 | 100 | ||
Franchise Term | yr | 20 | |||
Board of directors, number of members | 2 | |||
Restaurant rent expense | $ 81,409 | $ 75,948 | $ 64,814 | |
Related Party Transaction, Accounts Payable | 29,143 | 29,245 | ||
Related Party, Burger King Corporate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Initial Franchise Fees | $ 50 | |||
Sale of Stock, Percentage of Ownership after Transaction | Rate | 20.30% | |||
Related Party Transaction, Royalty Fee Rate | Rate | 4.50% | |||
Royalty Expense | $ 50,500 | 46,400 | 40,000 | |
Related Party Transaction, Advertising Fee Rate | Rate | 4.00% | |||
Advertising Expense | $ 47,000 | $ 43,500 | 40,200 | |
Leases, Number of Leased Restaurants | 244 | 251 | 275 | |
Restaurant rent expense | $ 27,200 | $ 27,600 | $ 27,800 | |
Related Party Transaction, Accounts Payable | $ 9,300 | |||
Property Leases Identical to BKC's Lease with Third Party [Member] | Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Leases, Number of Leased Restaurants | 117 |
Retirement Plans (Details)
Retirement Plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018USD ($)Rate | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | Rate | 50.00% | ||
Defined Contribution Plan, Requisite Service Period, Hours of Service | 1,000 | ||
Defined Contribution Plan, Cost | $ 676 | $ 615 | $ 496 |
Deferred Compensation Arrangements, Interest Rate | Rate | 8.00% | ||
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 0 | ||
Deferred compensation | $ 3,610 | $ 3,053 | |
Minimum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Vesting Period of Company Contributions | 1 year | ||
Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Vesting Period of Company Contributions | 5 years |
Postretirement Benefits Schedul
Postretirement Benefits Schedule of Net Funded Status and APBO (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Defined Benefit Plan [Abstract] | |||
Benefit obligation at beginning of year | $ 4,838 | $ 4,566 | |
Service cost | 196 | 192 | $ 150 |
Interest cost | 178 | 191 | 165 |
Plan participants' contributions | 97 | 88 | |
Plan participants' contributions | 97 | 88 | |
Actuarial loss (gain) | (894) | (122) | |
Benefits paid | (99) | (115) | |
Benefits paid | (99) | (115) | |
Medicare part D prescription drug subsidy | 4 | 38 | |
Benefit obligation at end of year | 4,320 | 4,838 | 4,566 |
Fair value of plan assets at beginning of year | 0 | 0 | |
Employer contributions | (2) | (11) | |
Funded status | (4,320) | (4,838) | |
Fair value of plan assets at end of year | $ 0 | $ 0 | $ 0 |
Discount rate used to determine benefit obligations | 4.17% | 3.60% | |
Discount rate used to determine net periodic benefit cost | 3.60% | 4.11% | |
Defined Benefit Plan, Plan Assets, Prescription Drug Subsidy Receipt | $ 4 | $ 38 |
Postretirement Benefits Compone
Postretirement Benefits Components of Net Periodic Postretirement Benefit Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 196 | $ 192 | $ 150 |
Interest cost | 178 | 191 | 165 |
Amortization of net loss | (208) | (222) | (197) |
Amortization of prior service credit | (352) | (355) | (355) |
Net periodic postretirement benefit income | $ 230 | $ 250 | $ 157 |
Postretirement Benefits Amounts
Postretirement Benefits Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | $ 1,265 | $ 1,617 |
Net gain | (1,826) | (2,928) |
Deferred Tax Assets, Other Comprehensive Loss | 140 | 326 |
Accumulated other comprehensive income | (646) | (1,210) |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | 113 | |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | (350) | |
Other Comprehensive Income (Loss) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Deferred Tax Assets, Other Comprehensive Loss | $ (85) | $ 101 |
Postretirement Benefits Change
Postretirement Benefits Change in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Retirement Benefits [Abstract] | |||
Net actuarial (gain) loss | $ (894) | $ (122) | |
Amortization of net loss | (208) | (222) | |
Amortization of prior service credit | 352 | 355 | |
Deferred income taxes | (186) | 4 | |
Total recognized in accumulated other comprehensive income | $ (564) | $ 7 | $ 868 |
Postretirement Benefits Assumed
Postretirement Benefits Assumed Health Care Trend Rates (Details) | 12 Months Ended | |||
Dec. 30, 2018Rate | Dec. 31, 2017Rate | Jan. 01, 2017Rate | Jan. 03, 2016Rate | |
Retirement Benefits [Abstract] | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year, pre-65 | 7.00% | 7.25% | 7.50% | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year, post-65 | 5.00% | 6.25% | 6.50% | |
Prescription drug benefit cost trend rate assumed for the following year | 9.50% | 10.50% | 10.50% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 3.78% | 3.89% | 3.89% | |
Year that the rate reaches the ultimate trend rate | 2,075 | 2,075 | 2,075 |
Postretirement Benefits Expecte
Postretirement Benefits Expected Future Benefit Payments (Details) $ in Thousands | Dec. 30, 2018USD ($) |
Retirement Benefits [Abstract] | |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 149 |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 149 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 169 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 170 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 191 |
Defined Benefit Plan, Expected Future Benefit Payments, Rolling Year Five | 185 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 1,178 |
Postretirement Benefits Postret
Postretirement Benefits Postretirement Benefits (Details) $ in Thousands | 12 Months Ended |
Dec. 30, 2018USD ($) | |
Retirement Benefits [Abstract] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 103 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | 75 |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 846 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ 649 |
Selected Quarterly Financial _3
Selected Quarterly Financial and Earnings Data (Unaudited) Quarterly Table (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares | Jul. 01, 2018USD ($)$ / shares | Apr. 01, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Oct. 01, 2017USD ($)$ / shares | Jul. 02, 2017USD ($)$ / shares | Apr. 02, 2017USD ($)$ / shares | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Restaurant sales | $ 307,754 | $ 296,917 | $ 303,050 | $ 271,586 | $ 283,967 | $ 285,235 | $ 279,478 | $ 239,852 | $ 1,179,307 | $ 1,088,532 | $ 943,583 |
Operating income (loss) | 7,190 | 9,668 | 13,833 | 2,664 | 9,860 | 8,684 | 12,335 | (1,406) | 33,355 | 29,473 | 35,702 |
Net income (loss) | $ 1,807 | $ 3,611 | $ 7,788 | $ (3,102) | $ 3,921 | $ 2,795 | $ 6,039 | $ (5,596) | $ 10,104 | $ 7,159 | $ 45,472 |
Basic and diluted net income (loss) per share | $ / shares | $ 0.04 | $ 0.08 | $ 0.17 | $ (0.09) | $ 0.09 | $ 0.06 | $ 0.13 | $ (0.16) | |||
Restaurants at end of period | 849 | 838 | 807 | 807 | 807 | 798 | 799 | 788 | 849 | 807 |
Selected Quarterly Financial _4
Selected Quarterly Financial and Earnings Data (Unaudited) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Jul. 01, 2018USD ($) | Apr. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 01, 2017USD ($) | Jul. 02, 2017USD ($) | Apr. 02, 2017USD ($) | Dec. 30, 2018USD ($)restaurant | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | Dec. 30, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Restaurants Acquired | 10 | 1 | 17 | 44 | 4 | 278 | ||||||
Acquisition-related costs | $ 400 | $ 800 | $ 100 | $ 100 | $ 100 | $ 500 | $ 500 | $ 700 | ||||
Impairment and other lease charges | $ 300 | $ 200 | $ 2,900 | $ 300 | $ 800 | $ 1,000 | $ 400 | $ 500 | $ 3,685 | $ 2,827 | $ 2,355 | |
Number of Restaurants | 849 | 838 | 807 | 807 | 807 | 798 | 799 | 788 | 849 | 807 | ||
Litigation Settlement, Expense | $ 1,850 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |||
Deferred Tax Assets, Valuation Allowance Beginning of Year | $ 0 | $ 0 | $ 30,374 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0 | 0 | 0 |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | 0 | 0 |
Valuation Allowances and Reserves, Deductions | 0 | 0 | |
Deferred Tax Assets, Valuation Allowance, End of Year | $ 0 | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, shares in Thousands, $ in Millions | Feb. 20, 2019USD ($)restaurantdirectorstate$ / sharesshares | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 |
Subsequent Event [Line Items] | |||||||||
Number of restaurants acquired | 849 | 838 | 807 | 807 | 807 | 798 | 799 | 788 | |
Number of states | 20 | ||||||||
Area Development and Remodeling Agreement | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of states | state | 16 | ||||||||
Number of franchises | 500 | ||||||||
Quarterly payment amount | $ | $ 3 | ||||||||
Number of restaurants to be built | 200 | ||||||||
By September 30, 2019 | 7 | ||||||||
By September 30, 2020 | 32 | ||||||||
By September 30, 2021 | 41 | ||||||||
By September 30, 2022 | 41 | ||||||||
By September 30, 2023 | 40 | ||||||||
By September 30, 2024 | 39 | ||||||||
Number of restaurants to be remodeled or upgraded | 748 | ||||||||
By September 30, 2019 | 90 | ||||||||
By September 30, 2020 | 130 | ||||||||
By September 30, 2021 | 118 | ||||||||
By September 30, 2022 | 131 | ||||||||
By September 30, 2023 | 138 | ||||||||
By September 30, 2024 | 141 | ||||||||
Area Development and Remodeling Agreement | BKC | Minimum | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of restaurants to be remodeled or upgraded | 50 | ||||||||
Contribution by counterparty | $ | $ 10 | ||||||||
Area Development and Remodeling Agreement | BKC | Maximum | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of restaurants to be remodeled or upgraded | 60 | ||||||||
Contribution by counterparty | $ | $ 12 | ||||||||
Merger Agreement - Cambridge Holdings | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of shares transferred in acquisition (in shares) | shares | 7,360 | ||||||||
Conversion price (in dollars per share) | $ / shares | $ 13.50 | ||||||||
Term of restrictions on sale or transfer | 2 years | ||||||||
Number of counterparty directors that may join board upon merger | director | 2 | ||||||||
Number of director nominees | director | 2 | ||||||||
Merger Agreement - Cambridge Holdings | Convertible Preferred Stock | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Preferred stock dividend rate | 9.00% | ||||||||
Shares issuable upon conversion of preferred stock (in shares) | shares | 7,450 | ||||||||
Merger Agreement - Cambridge Holdings | Cambridge Holdings | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Percentage of outstanding common shares held | 16.60% | ||||||||
Merger Agreement - Cambridge Holdings | Burger King | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of restaurants acquired | 166 | ||||||||
Merger Agreement - Cambridge Holdings | Popeyes | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of restaurants acquired | 55 |