Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 03, 2021 | Mar. 03, 2021 | Jun. 28, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Jan. 3, 2021 | ||
Current Fiscal Year End Date | --01-03 | ||
Entity File Number | 001-33174 | ||
Entity Registrant Name | CARROLS RESTAURANT GROUP, INC. | ||
Entity Address, Address Line One | 968 James Street | ||
Entity Address, Postal Zip Code | 13203 | ||
Entity Address, City or Town | Syracuse, | ||
Entity Address, State or Province | NY | ||
City Area Code | 315 | ||
Local Phone Number | 424-0513 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | TAST | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 53,337,104 | ||
Entity Public Float | $ 178,742,600 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for Carrols Restaurant Group, Inc's 2021 Annual Meeting of Stockholders, which is expected to be filed pursuant to Regulation 14A no later than 120 days after the conclusion of Carrols Restaurant Group, Inc.'s fiscal year ended January 3, 2021, are incorporated by reference into Part III of this annual report. | ||
Entity Central Index Key | 0000809248 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-3804854 | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Small Business | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
ASSETS | ||
Cash | $ 64,964 | $ 2,974 |
Receivables, Net, Current | 19,862 | 13,445 |
Inventory, Net | 11,595 | 13,334 |
Prepaid rent | 8,046 | 1,986 |
Prepaid expenses and other current assets | 7,309 | 7,762 |
Refundable income taxes | 169 | 284 |
Total current assets | 111,945 | 39,785 |
Property and equipment, net | 349,555 | 385,578 |
Franchise rights, net | 334,597 | 348,941 |
Goodwill | 122,619 | 122,619 |
Franchise agreements, net | 31,584 | 32,690 |
Operating right-of-use assets, net | 799,962 | 811,016 |
Other assets | 6,823 | 10,831 |
Total assets | 1,757,085 | 1,751,460 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current portion of long-term debt | 5,525 | 5,866 |
Less: current portion | 41,815 | 40,805 |
Accounts payable | 27,596 | 45,780 |
Accrued interest | 656 | 901 |
Accrued payroll, related taxes and benefits | 49,417 | 31,314 |
Accrued real estate taxes | 7,774 | 8,139 |
Other liabilities | 23,558 | 16,520 |
Total current liabilities | 156,341 | 149,325 |
Total Long-term Debt | 475,695 | 455,565 |
Lease financing obligations | 1,191 | 1,194 |
Operating Lease, Liability, Noncurrent | 809,969 | 808,292 |
Deferred Income Tax Liabilities, Net | 11,362 | 6,983 |
Accrued postretirement benefits | 1,523 | 2,555 |
Other liabilities | 29,472 | 18,084 |
Total liabilities | 1,485,553 | 1,441,998 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock, par value $.01 | 0 | 0 |
Voting common stock, par value $.01 | 515 | 510 |
Additional paid-in capital | 306,469 | 301,251 |
Retained Earnings | (18,367) | 11,096 |
Accumulated other comprehensive income | (3,015) | 622 |
Treasury stock, at cost | (14,070) | (4,017) |
Total stockholders' equity | 271,532 | 309,462 |
Total liabilities and stockholders' equity | $ 1,757,085 | $ 1,751,460 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Franchise rights, accumulated amortization | $ 14,653 | $ 13,365 |
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 | 52,653,964 | 49,389,382 |
Common stock, shares outstanding | 51,840,200 | 50,496,265 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Gain on insurance recoveries | $ 2,100 | $ 200 | $ 400 |
Revenue | 1,547,502 | 1,462,765 | 1,179,307 |
Costs and expenses: | |||
Cost of sales | 452,738 | 431,969 | 326,308 |
Restaurant wages and related expenses | 498,127 | 485,278 | 382,829 |
Restaurant rent expense | 118,444 | 107,147 | 81,409 |
Other restaurant operating expenses | 236,059 | 227,364 | 178,750 |
Advertising expense | 60,735 | 58,689 | 48,340 |
General and administrative | 84,051 | 84,734 | 66,587 |
Depreciation and amortization | 81,727 | 74,674 | 58,468 |
Impairment and other lease charges | 12,778 | 3,564 | 3,685 |
Other expense (income) | (1,271) | (1,911) | (424) |
Total operating expenses | 1,543,388 | 1,471,508 | 1,145,952 |
Income (loss) from operations | 4,114 | (8,743) | 33,355 |
Interest Expense | 27,283 | 27,856 | 23,638 |
Gain on bargain purchase | 0 | 0 | (230) |
Loss on extinguishment of debt | 0 | 7,443 | 0 |
Income (loss) before income taxes | (23,169) | (44,042) | 9,947 |
Provision (benefit) for income taxes | 6,294 | (12,123) | (157) |
Net income (loss) | $ (29,463) | $ (31,919) | $ 10,104 |
Basic and diluted net income (loss) per share | $ (0.58) | $ (0.74) | $ 0.22 |
Basic weighted average common shares outstanding | 50,751,185 | 43,421,715 | 35,715,372 |
Diluted weighted average common shares outstanding | 50,751,185 | 43,421,715 | 45,319,971 |
Other comprehensive income (loss), net of tax: | |||
Net income (loss) | $ (29,463) | $ (31,919) | $ 10,104 |
Change in postretirement benefit obligations, net of tax | (5,284) | 1,268 | 564 |
Comprehensive income (loss) | (34,747) | (30,651) | 10,668 |
Restaurant sales | |||
Revenue | 1,547,502 | 1,452,516 | 1,179,307 |
Other revenue | |||
Revenue | $ 0 | $ 10,249 | $ 0 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Statement [Abstract] | |||
Stock-based compensation | $ 5,223 | $ 5,753 | $ 5,812 |
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] |
Common stock, shares outstanding at Dec. 31, 2017 | 35,436,252 | ||||||
Balance at Dec. 31, 2017 | $ 169,060,000 | $ 354,000 | $ 100 | $ 144,650,000 | $ 25,407,000 | $ (1,210,000) | $ (141,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 5,812,000 | 5,812,000 | |||||
Vesting of non-vested shares, shares | 306,175 | ||||||
Vesting of non-vested shares | 0 | $ 3,000 | (3,000) | ||||
Net income (loss) | 10,104,000 | 10,104,000 | |||||
Change in postretirement benefit obligations | 564,000 | 564,000 | |||||
Common stock, shares outstanding at Dec. 30, 2018 | 35,742,427 | 0 | |||||
Balance at Dec. 30, 2018 | 185,540,000 | $ 357,000 | $ 100 | 150,459,000 | 35,511,000 | (646,000) | $ (141,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative-effect adjustment from new accounting principal adoption | Accounting Standards Update 2016-02 [Member] | 7,504,000 | 7,504,000 | |||||
Stock-based compensation | 5,753,000 | 5,753,000 | |||||
Vesting of non-vested shares, shares | 492,135 | ||||||
Vesting of non-vested shares | 0 | $ 4,000 | (4,000) | ||||
Issuance of common and preferred stock, shares | 7,364,413 | 10,000 | |||||
Issuance of common and preferred stock | $ 145,333,000 | $ 74,000 | 145,259,000 | ||||
Treasury Stock, Shares, Acquired | 553,112 | ||||||
Repurchase of treasury stock | $ (4,017,000) | (4,017,000) | |||||
Retirement of treasury stock | 0 | (141,000) | $ 141,000 | ||||
Conversion of preferred stock to common stock, shares | 7,450,402 | (10,000) | |||||
Conversion of preferred stock to common stock | 0 | $ 75,000 | (75,000) | ||||
Net income (loss) | (31,919,000) | (31,919,000) | |||||
Change in postretirement benefit obligations | $ 1,268,000 | 1,268,000 | |||||
Common stock, shares outstanding at Dec. 29, 2019 | 50,496,265 | 51,049,377 | 553,112 | ||||
Balance at Dec. 29, 2019 | $ 309,462,000 | $ 510,000 | $ 100 | 301,251,000 | 11,096,000 | 622,000 | $ (4,017,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 5,223,000 | 5,223,000 | |||||
Vesting of non-vested shares, shares | 436,739 | ||||||
Vesting of non-vested shares | $ 0 | $ 5,000 | (5,000) | ||||
Treasury Stock, Shares, Acquired | 1,543,622 | ||||||
Repurchase of treasury stock | $ (10,053,000) | $ (10,053,000) | |||||
Net income (loss) | (29,463,000) | (29,463,000) | |||||
Change in Valuation of Interest Rate Swap | (4,221,000) | (4,221,000) | |||||
Change in postretirement benefit obligations | $ 584,000 | 584,000 | |||||
Common stock, shares outstanding at Jan. 03, 2021 | 51,840,200 | 51,486,116 | 2,096,734 | ||||
Balance at Jan. 03, 2021 | $ 271,532,000 | $ 515,000 | $ 100 | $ 306,469,000 | $ (18,367,000) | $ (3,015,000) | $ (14,070,000) |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity Parentheticals - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Other Comprehensive Income (Loss), Tax | $ 194 | $ 420 | $ 186 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
Other Comprehensive Income (Loss), Tax | $ 1,841 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Cash flows provided from (used for) operating activities: | |||
Net income (loss) | $ (29,463) | $ (31,919) | $ 10,104 |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Loss (gain) on disposals of property and equipment | (994) | (74) | 312 |
Stock-based compensation | 5,223 | 5,753 | 5,812 |
Gain on bargain purchase | 0 | 0 | (230) |
Impairment and other lease charges | 12,778 | 3,564 | 3,685 |
Depreciation and amortization | 81,727 | 74,674 | 58,468 |
Amortization of deferred financing costs | 2,170 | 1,694 | 1,202 |
Amortization of bond premium and discount on debt | 539 | (80) | (913) |
Amortization of deferred gains from sale-leaseback transactions | 0 | 0 | (1,584) |
Deferred income taxes | 6,026 | (11,982) | (483) |
Loss on extinguishment of debt - non-cash | 0 | 129 | 0 |
Refundable income taxes | 115 | (284) | 55 |
Trade and other receivables | (6,417) | (523) | (2,275) |
Accounts payable | (5,927) | 1,196 | (926) |
Accrued interest | (245) | (2,917) | 146 |
Accrued payroll, related taxes and benefits | 18,103 | (538) | 2,084 |
Increase (Decrease) in Other Operating Liabilities | 10,993 | 238 | 3,998 |
Change in operating right-of-use assets and operating lease liabilities, net | 10,906 | 3,980 | 0 |
Other | (1,589) | 5,797 | 1,314 |
Net cash provided from operating activities | 103,945 | 48,708 | 80,769 |
Cash flows used for investing activities: | |||
New restaurant development | (17,824) | (53,596) | (23,171) |
Restaurant remodeling | (15,317) | (50,383) | (31,951) |
Other restaurant capital expenditures | (13,064) | (18,922) | (15,726) |
Corporate and restaurant information systems | (10,685) | (11,978) | (4,887) |
Total capital expenditures | (56,890) | (134,879) | (75,735) |
Acquisition of restaurants, net of cash acquired | 0 | (130,646) | (38,102) |
Proceeds from insurance recoveries | 2,071 | 323 | 642 |
Properties purchased for sale-leaseback | (15,537) | (1,207) | (2,123) |
Proceeds from sale-leaseback transactions | 22,499 | 48,364 | 8,424 |
Net cash used for investing activities | (47,857) | (218,045) | (106,894) |
Cash flows provided from (used for) financing activities: | |||
Proceeds from issuance of senior secured second lien notes | 71,250 | 422,875 | 0 |
Repayments of Term Loan B Facility | (4,625) | (2,125) | 0 |
Retirement of 8% Senior Secured Second Lien Notes | 0 | (280,500) | 0 |
Borrowings under prior revolving credit facility | 0 | 0 | 17,000 |
Repayments under prior revolving credit facility | 0 | 0 | (17,000) |
Borrowings under new revolving credit facility | 150,000 | 436,000 | 0 |
Repayments under new revolving credit facility | (195,750) | (390,250) | 0 |
Payments on finance lease liabilities | (1,617) | (2,170) | (1,811) |
Proceeds from lease financing obligations | 0 | 0 | 2,692 |
Costs associated with financing long-term debt | (3,303) | (11,516) | (154) |
Purchase of treasury shares | (10,053) | (4,017) | 0 |
Net cash provided from (used for) financing activities | 5,902 | 168,297 | 727 |
Net increase (decrease) in cash | 61,990 | (1,040) | (25,398) |
Cash and cash equivalents, beginning of period | 2,974 | 4,014 | 29,412 |
Cash and cash equivalents, end of period | 64,964 | 2,974 | 4,014 |
Supplemental disclosures: | |||
Interest paid on long-term debt | 24,714 | 29,055 | 23,098 |
Interest paid on lease financing obligations | 104 | 104 | 105 |
Accruals for capital expenditures | 1,241 | 15,062 | 7,605 |
Common stock issued for consideration in acquisition | 0 | 145,333 | 0 |
Non-cash reduction of capital lease assets and obligation | 0 | 0 | 2,538 |
Income taxes paid (refunded), net | $ 153 | $ 144 | $ (270) |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 12 Months Ended |
Jan. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation Business Description. At January 3, 2021 Carrols Restaurant Group, Inc. ("Carrols Restaurant Group") operated, as franchisee, 1,009 Burger King® restaurants in 23 Northeastern, Midwestern and Southeastern states and 65 Popeyes® restaurants in seven Southeastern states. In March 2020, the World Health Organization declared the COVID-19 outbreak to be a global pandemic, which continues to spread throughout the United States. The COVID-19 pandemic has significantly impacted the communities the Company's restaurants operate in as federal, state and local governments have taken a series of actions to contain its spread. In March 2020, the Company closed its dining rooms in all restaurants and modified operating hours in line with local ordinances and day-part sales trends, and over the course of March and April of 2020, temporarily closed 46 restaurants that were geographically close to one of its other restaurants. Given sales improvements after the initial months of the pandemic, 44 of the temporarily closed restaurants had reopened by the end of 2020. Two of the restaurants temporarily closed in March were permanently closed in 2020. Each restaurant operated according to their respective local governmental guidelines as well as safety procedures developed by Burger King and Popeyes. As individual states and local governments have allowed reopenings, the Company has evaluated opportunities to re-open dining rooms. Approximately 35% of dining rooms had reopened by the end of 2020, however, eat-in sales represented only approximately 1% of our total restaurant sales as guests continue to rely on our drive-thru, carry-out and delivery service modes. Basis of Consolidation. Carrols Restaurant Group, Inc. is a holding company and conducts all of its operations through its direct and indirect wholly-owned subsidiaries Carrols Corporation and New CFH, LLC and their wholly-owned subsidiaries. Carrols Corporation's material direct and indirect wholly-owned subsidiaries (collectively, "Carrols") include its 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"). New CFH LLC's material direct and indirect wholly-owned subsidiaries include Frayser Quality, LLC and Nashville Quality, LLC (and together with New CFH, LLC's immaterial direct and indirect subsidiaries, collectively, "New CFH"). Unless the context otherwise requires, Carrols Restaurant Group and its direct and indirect wholly-owned subsidiaries 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 year ended January 3, 2021 contained 53 weeks and the fiscal years ended December 29, 2019 and December 30, 2018 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: other lease charges related to closed locations, insurance liabilities, evaluation for impairment of long-lived assets and franchise rights, lease accounting matters, the valuation of acquired assets and liabilities, valuation of interest rate swap 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 both January 3, 2021 and December 29, 2019, the Company did not have any cash invested in money market funds which are classified as cash equivalents on the consolidated balance sheets. 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 finance leases Shorter of useful life or lease term Building costs incurred for new restaurants on leased land are amortized over the lease term, which is generally a period of twenty years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the underlying expected lease term. The Company includes renewal option periods when determining the expected lease term in circumstances where the non-exercise of one or more renewal options under the lease would result in an economic penalty. 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, if any, 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 finance leases are determined using both the cost approach and market approach using significant inputs observable in the open market. The Company categorizes these inputs as Level 2 inputs under ASC 820. The fair value of acquired franchise rights and favorable or unfavorable lease positions are determined using the income approach and includes unobservable inputs. The Company categorizes these inputs as Level 3 inputs under ASC 820. 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 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 the businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. Impairment of Long-Lived Assets. The Company assesses the potential impairment of property and equipment, franchise rights and other definite-lived 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. Impairment indicators at the restaurant level include low operating cash flows, declining sales and if the ratio of trailing twelve months cash flows extended over the remaining lease term does not exceed the net book value of the asset group. 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. 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 provide for renewal options with rent escalations. The exercise of such renewal options are generally at the Company’s sole discretion. The Company evaluates renewal options at lease commencement to determine if such options are reasonably certain to be exercised based on economic factors. Certain leases also 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. Right-of-use (“ROU”) lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make payments in exchange for that right of use. As the rate implicit within our leases is not readily determinable, the Company uses market and term specific incremental borrowing rates which consider the rate of interest it expects to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. ROU assets are also reduced by lease incentives, initial direct costs and adjusted by favorable lease assets and unfavorable lease liabilities. Variable lease components represent amounts that are contractually fixed as a percentage of sales and are recognized in expense as incurred. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet and are recognized as lease expense on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components. The Company also utilizes certain restaurant equipment under various finance lease agreements with initial terms of generally eight For certain leases where rent escalates based upon a change in a financial index, such as the Consumer Price Index, the difference between the rate at lease inception and the subsequent fluctuations in that rate are included in variable lease costs. Additionally, because the Company has elected to not separate lease and non-lease components, in limited instances variable costs also include payments to the landlord for common area maintenance, real estate taxes, insurance and other operating expenses. Lease expense is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. Lease Financing Obligations. Lease financing obligations pertain to real estate sale-leaseback transactions accounted for under the financing method. The land and building assets subject to these obligations remain on the Company’s consolidated balance sheets at their historical costs and the building assets 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 and other revenue from convenience store sales, net of sales discounts, are recognized when payment is tendered at the time of sale or upon fulfillment of delivery orders. 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 the gift card program of Restaurant Brands International, Inc. ("RBI"). Proceeds from the sale of Burger King® and Popeyes® gift cards at the Company’s restaurants are remitted to RBI, and RBI reimburses the Company for any gift card redemptions at its restaurants. The Company recognizes revenue for restaurant sales upon redemption of gift cards by the customer. Cost of Sales. The Company includes food, beverage and paper costs and delivery charges, net of any vendor purchase discounts and rebates, in cost of sales. 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 subsidiaries file a consolidated federal income tax return. Advertising Costs. All advertising costs are expensed as incurred. For the years ended January 3, 2021, December 29, 2019 and December 30, 2018, advertising costs were $60.7 million, $58.7 million and $48.3 million, respectively. 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 January 3, 2021, December 29, 2019 and December 30, 2018, pre-opening costs were $0.2 million, $1.4 million and $0.6 million, respectively. These costs are expensed as incurred prior to a restaurant opening and are included in other restaurant operating expenses in the accompanying consolidated statements of comprehensive income (loss). Insurance. The Company is self-insured for general liability, medical insurance and most workers’ compensation 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. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: 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 the Company's 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 carrying amount of the Term Loan B and Incremental Term B-1 Loan borrowings at January 3, 2021 approximate fair value because of their variable rates. The Carrols Restaurant Group 8.0% Senior Secured Second Lien Notes due 2022 (the "8% Notes") were redeemed in full as of December 29, 2019. 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 $8.2 million, $1.7 million and $2.7 million during the years ended January 3, 2021, December 29, 2019 and December 30, 2018, respectively. Stock-Based Compensation. The Company has an incentive stock plan under which incentive stock options, non-qualified stock options, restricted stock units (RSU) and non-vested shares may be granted to employees and non-employee directors. The Company has granted non-vested shares under this plan annually as well as granted non-vested shares, stock options, and RSU's to corporate employees for performance. Non-vested shares, options, and RSUs 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. For stock options, the fair-value of the options is estimated using the Black-Scholes option pricing model based on assumptions for the risk-free rate of interest, expected dividend yield, expected volatility, and the expected term of the award. Compensation expense is recognized over the three-year vesting 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 restaurants as one reportable segment. Recently Issued Accounting Pronouncements Not Yet Adopted. In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”). This ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the effect adoption of this guidance will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) ("ASU No. 2019-12"). This ASU simplifies the accounting for income taxes by removing certain exceptions, including an exception to the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss for the full year. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted and amendments applied on a prospective basis. The impact of the standard will depend on interim and anticipated profit or loss in a given period, however the Company does not expect ASU No. 2019-12 to have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, to introduce new guidance for the accounting for credit losses on instruments within its scope. ASU 2016-13 requires among other things, the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This update was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company implemented this for the year beginning December 30, 2019 and the implementation had no impact on its consolidated financial statements and related disclosures. In January 2017, the 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 was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company implemented this for the year ended January 3, 2021 and the implementation had no impact on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement benefits (Topic 715-20). This ASU amends ASC 715 to add certain relevant disclosures, remove certain disclosures no longer considered to be cost beneficial, and clarify specific disclosure requirements related to defined benefit pension and other postretirement plans. This ASU is effective for fiscal years ending after December 15, 2020 and requires application on a retrospective basis. The Company implemented this for the year ended January 3, 2021 and there was no impact on its consolidated financial statements. In April 2020, the FASB staff issued interpretive guidance that indicated it would be acceptable for entities to make an election to account for lease concessions related to the COVID-19 pandemic consistent with how those concessions would be accounted for under ACS Topic 842, Leases ("ASC 842"), as though enforceable rights and obligations for those concessions existed (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). Consequently, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in Topic 842 to those contracts. This election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. The Company has made the policy election to apply this interpretive guidance to certain rent relief resulting directly from COVID-19, and has assumed that enforceable rights and obligations for those concessions exist in the lease contract. Accordingly, the Company recognized abatements that did not result in an extension of lease term as reductions in variable lease payments, and deferrals that did not result in an extension of lease term as an increase in other current liabilities. This election will continue while these abatements or deferrals are in effect. |
Acquisition
Acquisition | 12 Months Ended |
Jan. 03, 2021 | |
Business Combinations [Abstract] | |
Acquisition [Text Block] | Acquisitions 2019 Acquisitions During the year ended December 29, 2019, the Company acquired a total of 234 restaurants from other franchisees, which are referred to as the "2019 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price April 30, 2019 (1) 220 $ 259,083 Southeastern states, primarily TN, MS, LA June 11, 2019 13 15,788 Baltimore, Maryland August 20, 2019 (2) 1 1,108 Pennsylvania 234 $ 275,979 (1) During the second quarter of 2019, the Company completed the merger with New CFH, LLC ("Cambridge") and acquired 165 Burger King restaurants and 55 Popeyes restaurants. (2) Acquisitions resulting from the exercise of the Company's right of first refusal on acquisitions in certain markets (see note 15). On April 30, 2019 the Company completed a merger with Cambridge ("the Cambridge Merger") for a purchase price of $259.1 million through the issuance of shares of stock which consisted of (i) approximately 7.4 million shares of common stock, (ii) 10,000 shares of the Company's newly designated Series C Convertible Preferred Stock, which were converted into approximately 7.5 million shares of common stock on August 29, 2019, and (iii) the retirement of approximately $113.8 million of the indebtedness of Cambridge, net of cash acquired. All shares issued are subject to a two Under the purchase method of accounting, the aggregate purchase price is allocated to the net tangible and intangible assets based on their estimated fair values on the acquisition date. The purchase price allocation valued the common stock at $145.3 million based on the $9.81 closing price of the Company's stock on the date of acquisition. The Company allocated the aggregate purchase price to the net tangible and intangible assets acquired in the Cambridge Merger at their estimated fair values. The Company engaged a third party valuation specialist to assist with the valuation of franchise rights, leasehold improvements and favorable and unfavorable leases included in the operating right-to-use assets acquired. The fair value of other property and equipment and franchise agreements was based on the carrying value of the respective assets given that in the three years prior to the Cambridge Merger, Cambridge had completed valuations in connection with its own acquisition of 132 restaurants and also recently constructed 33 new restaurants. The fair value of the operating lease liability is based upon the lease payments over the remaining lease term discounted by the Company's incremental borrowing rate. The deferred income tax liability allocated from the purchase price represents book and tax differences primarily related to the fair value of the acquired franchise rights. Goodwill recorded in connection with the Cambridge Merger represents the excess of the purchase price over the aggregate fair value of net assets acquired and is related to the benefits expected as a result of the merger, including sales, operating synergies, development and growth opportunities. The Company believes that Cambridge's existing Burger King and Popeyes restaurant portfolios provide it with significant growth and development opportunities and due to the geographic location of the restaurants mitigate the dependence on the economic performance of any one particular geographic location or restaurant concept. The following table summarizes the final allocation of the aggregate purchase price for the Cambridge Merger: Inventory $ 2,839 Prepaid expenses 2,947 Other assets 1,846 Land and buildings 21,257 Restaurant equipment 25,358 Restaurant equipment - subject to finance leases 488 Right-of-use assets 251,431 Leasehold improvements 3,498 Franchise fees 7,300 Franchise rights (Note 4) 174,500 Deferred taxes (44,292) Goodwill (Note 4) 84,060 Finance lease obligations for restaurant equipment (568) Operating lease liabilities (255,897) Accounts payable (8,014) Accrued payroll, related taxes and benefits (3,133) Other liabilities (4,537) Net assets acquired $ 259,083 The Company allocated the aggregate purchase price for the 2019 acquisitions other than the Cambridge Merger at their estimated fair values. The following table summarizes the final allocation of the aggregate purchase price for these other 2019 acquisitions: Inventory $ 158 Restaurant equipment 743 Restaurant equipment - subject to finance leases 150 Right-of-use assets 9,515 Leasehold improvements 6,205 Franchise fees 394 Franchise rights (Note 4) 9,809 Deferred taxes 29 Goodwill (Note 4) 86 Operating lease liabilities (9,968) Finance lease obligations for restaurant equipment (185) Accounts payable (40) Net assets acquired $ 16,896 The results of operations for the restaurants acquired are included from the closing date of the respective acquisition. The 2019 acquired restaurants contributed restaurant sales of $288.9 million during the year ended January 3, 2021 and $201.9 million and other revenue of $10.2 million during the year ended December 29, 2019. 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 2019 and 2018 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 2019 and 2018 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 29, 2019 December 30, 2018 Restaurant sales $ 1,568,533 $ 1,518,841 Net income (loss) (25,586) 27,730 Basic and diluted net income (loss) per share (0.59) 0.60 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 2019 acquired restaurants. The proforma results exclude transaction costs recorded as general and administrative expenses of $4.1 million and $1.4 million during the years ended December 29, 2019 and December 30, 2018, respectively. 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 (loss). (2) Acquisitions resulting from the exercise of the Company's right of first refusal on acquisitions in certain markets (see note 15). 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 587 Deferred taxes 346 Goodwill (Note 4) 1,677 Capital lease obligations for restaurant equipment (49) Unfavorable leases (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 $52.9 million and $16.9 million during the years ended December 29, 2019 and December 28, 2018, 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 2018 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 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 Restaurant sales $ 1,217,891 Net income 13,684 Basic and diluted net income per share 0.30 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 during the year ended December 30, 2018. Acquired Intangible Assets Goodwill recorded in connection with the acquisitions in 2019 and 2018 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 $47.2 million in 2019 and $0.5 million in 2018. The weighted average amortization period of the intangible assets acquired is as follows: 2019 Acquisitions 2018 Acquisitions Favorable leases — 17.2 Unfavorable leases — 18.3 Franchise rights 32.7 31.6 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 03, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and Equipment Property and equipment at January 3, 2021 and December 29, 2019 consisted of the following: January 3, 2021 December 29, 2019 Land $ 8,301 $ 8,800 Owned buildings 13,325 12,490 Leasehold improvements 424,685 413,543 Equipment 320,909 311,423 Assets subject to finance leases 16,663 17,132 783,883 763,388 Less accumulated depreciation and amortization (434,328) (377,810) $ 349,555 $ 385,578 |
Intangible Assets (Notes)
Intangible Assets (Notes) | 12 Months Ended |
Jan. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Franchise Rights, Favorable and Unfavorable Leases | Intangible Assets Goodwill. The Company is required to test 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 January 3, 2021, December 29, 2019 and December 30, 2018. Goodwill at December 30, 2018 $ 38,469 Acquisitions of restaurants (Note 2) 84,150 Goodwill at December 29, 2019 122,619 Acquisitions of restaurants (Note 2) — Goodwill at January 3, 2021 $ 122,619 Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King® and Popeyes® restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty Balance at December 30, 2018 $ 175,897 Acquisitions of restaurants (Note 2) 184,309 Amortization expense (11,265) Balance at December 29, 2019 348,941 Amortization expense (14,344) Balance at January 3, 2021 $ 334,597 |
Impairment Of Long-Lived Assets
Impairment Of Long-Lived Assets And Other Lease Charges | 12 Months Ended |
Jan. 03, 2021 | |
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. For restaurants reviewed for impairment the Company determined the fair value of restaurant equipment, based on current economic conditions. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. During the year ended January 3, 2021, the Company recorded impairment and other lease charges of $12.8 million consisting of $1.2 million of capital expenditures at previously impaired restaurants, $5.0 million related to initial impairment charges for fifteen underperforming restaurants, other lease charges of $4.6 million primarily from 22 restaurant closures, and $2.0 million related to impairment of its right of first refusal under its Area Development and Remodeling Agreement with BKC (see Note 15) During the year ended December 29, 2019, the Company recorded impairment and other lease charges of $3.6 million including $0.3 million for capital expenditures at previously impaired restaurants, $1.3 million related to initial impairment charges for seven underperforming restaurants, and other lease charges of $1.9 million mostly related to the closing of the six convenience stores acquired in 2019. During the year ended December 30, 2018, the Company recorded impairment and other lease charges of $3.7 million including $0.4 million for 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 the sale-leaseback of four restaurant properties, and other lease charges of $0.2 million. |
Other Liabilities, Long-Term (N
Other Liabilities, Long-Term (Notes) | 12 Months Ended |
Jan. 03, 2021 | |
Liabilities, Noncurrent [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Liabilities, Long-Term Other liabilities, long-term, at January 3, 2021 and December 29, 2019 consisted of the following: January 3, 2021 December 29, 2019 Accrued occupancy costs $ 2,394 $ 8,523 Accrued workers’ compensation and general liability claims 5,499 5,370 Interest rate swap liability 6,062 — Deferred compensation 4,419 3,902 Deferred federal payroll taxes 10,808 — Other 290 289 $ 29,472 $ 18,084 |
Leases
Leases | 12 Months Ended |
Jan. 03, 2021 | |
Leases [Abstract] | |
Leases Disclosure [Text Block] | Leases As a result of the COVID-19 pandemic and the resulting economic uncertainty in the restaurant industry, the Company contacted each of its landlords to potentially negotiate accommodations to preserve cash. For certain leases the Company was able to modify existing payment terms, in some cases through deferral of existing payments until future periods and in some cases through a reduction in payments due during this period. The Company elected the practical expedient to not evaluate whether a deferral of rent within the current term is a lease modification. Any concessions which resulted in extension of the existing lease term were accounted for as a lease modification under the current GAAP guidance. The total rent that was or will be deferred as a result of requests for relief from our landlords other than BKC was $5.8 million, of which $4.8 million was or is expected to be repaid over various periods that began in the third quarter of 2020. Additionally, the Company received $0.4 million in 2020 from BKC for concessions related to leases the Company subleases from BKC with third party landlords (see Note 15). As of January 3, 2021, $3.2 million remains to be repaid to landlords related to these deferrals. During the years ended January 3, 2021, December 29, 2019 and December 30, 2018, the Company sold twelve, twenty-seven and five restaurant properties, respectively, in sale-leaseback transactions for net proceeds of $22.5 million, $48.4 million and $8.4 million, respectively. These leases have been classified as operating leases and generally contain a twenty-year initial term plus renewal options. Rent commitments under finance and non-cancelable operating leases at January 3, 2021 were as follows: Fiscal year ending: Operating Leases Finance Leases January 2, 2022 $ 99,191 $ 583 January 1, 2023 98,850 240 December 31, 2023 98,005 68 December 29, 2024 96,853 42 December 28, 2025 94,613 28 Thereafter 877,149 59 Total lease payments 1,364,661 1,020 Less: imputed interest (512,877) (112) Present value of lease liabilities 851,784 908 Less: current portion (41,815) (525) Total long-term lease liabilities $ 809,969 $ 383 Lease Cost The components and classification of lease expense for the years ended January 3, 2021 and December 29, 2019 are as follows: Year ended Lease cost Classification January 3, 2021 December 29, 2019 Operating lease cost (1) Restaurant rent expense $ 102,651 $ 90,718 Operating lease cost General and administrative 606 $ 579 Variable lease cost - variable rent Restaurant rent expense 16,245 $ 16,454 Variable lease cost - common area maintenance Other restaurant operating expenses 521 $ 617 Sublease income Restaurant rent expense (452) $ (25) Finance lease cost: Amortization of right-of-use assets Depreciation and amortization 1,233 $ 1,778 Interest on lease liabilities Interest expense 130 $ 256 Total lease cost $ 120,934 $ 110,377 (1) Includes short-term leases which are not material. Total rent expense for the year ended December 30, 2018 on operating leases, including contingent rent on both operating and finance leases, was as follows: Year ended December 30, 2018 Minimum rent on real property $ 72,206 Contingent rent on real property 9,203 Restaurant rent expense 81,409 Administrative and equipment rent 273 $ 81,682 Lease Position Supplemental balance sheet information related to leases was as follows as of January 3, 2021 and December 29, 2019: Leases Classification January 3, 2021 December 29, 2019 Assets Operating leases Operating right-of-use assets, net $ 799,962 $ 811,016 Finance leases Property and equipment, net 644 1,882 Total leased assets $ 800,606 $ 812,898 Liabilities Current Operating leases Current portion of operating lease liabilities $ 41,815 $ 40,805 Finance leases Current portion of long-term debt and finance lease liabilities 525 1,616 Long-term Operating leases Operating lease liabilities 809,969 808,292 Finance leases Long-term debt and finance lease liabilities 383 908 Total lease liabilities $ 852,692 $ 851,621 Weighted Average Remaining Lease Term Operating leases 14.0 years 14.5 years Finance leases 2.4 years 2.0 years Weighted Average Discount Rate Operating leases 7.0 % 7.0 % Finance leases 8.9 % 7.9 % Other Information Supplemental cash flow information related to leases for the years ended January 3, 2021 and December 29, 2019 are as follows: Year ended January 3, 2021 December 29, 2019 Gain on sale-leaseback transactions $ 189 $ 636 Lease assets and liabilities resulting from lease modifications and new leases 50,978 76,878 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 98,561 87,220 Operating cash flows from finance leases 130 256 Financing cash flows from finance lease obligations 1,617 2,170 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 03, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-term Debt Long-term debt at January 3, 2021 and December 29, 2019 consisted of the following: January 3, 2021 December 29, 2019 Collateralized: Senior Credit Facility: Term Loan B borrowings $ 419,375 $ 422,875 Term Loan B-1 borrowings 73,875 — Revolving credit borrowings — 45,750 Finance lease liabilities 908 2,524 494,158 471,149 Less: current portion of long-term debt and finance lease liabilities (5,525) (5,866) Less: unamortized debt issuance costs (7,777) (7,768) Less: original issue discount (5,161) (1,950) Total Long-term Debt $ 475,695 $ 455,565 On April 30, 2019, the Company entered into new senior secured credit facilities in an aggregate principal amount of $550.0 million, consisting of (i) a Term Loan B Facility in an aggregate principal amount of $425.0 million (the “Term Loan B Facility”) maturing on April 30, 2026 and (ii) a new revolving credit facility (including a sub-facility of $35.0 million for standby letters of credit) in an aggregate principal amount of $125.0 million maturing on April 30, 2024 (the “Revolving Credit Facility” and, together with the Term Loan B Facility, the (“New Senior Credit Facilities”). On December 13, 2019, the Company entered into the First Amendment to Credit Agreement (the "First Amendment") which amended a financial covenant under the Senior Credit Facilities applicable solely with respect to the Revolving Credit Facility that previously required the Company to maintain quarterly a Total Net Leverage Ratio (as defined in the Senior Credit Facilities) of not greater than 4.75 to 1.00 (measured on a most recent four quarter basis), to now require that the Company maintain only a First Lien Leverage Ratio (as defined in the Senior Credit Facilities) of not greater than 5.75 to 1.00 (as measured on a most recent four quarter basis) if, and only if, on the last day of any fiscal quarter (beginning with the fiscal quarter ended December 29, 2019), the sum of the aggregate principal amount of outstanding revolving credit borrowings under the Revolving Credit Facility and the aggregate face amount of letters of credit issued under the Revolving Credit Facility (excluding undrawn letters of credit in an aggregate face amount up to $12.0 million) exceeds 35% of the aggregate amount of the maximum revolving credit borrowings under the Revolving Credit Facility. The First Amendment also reduced the aggregate maximum revolving credit borrowings under the Revolving Credit Facility by $10.0 million to a total of $115.0 million. On March 25, 2020, the Company entered into the Second Amendment to its Senior Credit Facilities (the "Second Amendment"). The Second Amendment increased the aggregate maximum commitments available for revolving credit borrowings (including standby letters of credit) under the Revolving Credit Facility (the "Revolving Committed Amount") by $15.4 million to a total of $130.4 million. The Second Amendment amended the definition of Applicable Margin (such definition and all other definitions used herein and otherwise not defined herein shall have the meanings set forth in the Senior Credit Facilities) to provide that on and after the date of the Second Amendment (the "Second Amendment Effective Date"), the Applicable Margin for borrowings under the Revolving Credit Facility (including Letter of Credit Fees) shall be at a rate per annum equal to (a) for so long as the Revolving Committed Amount is greater than $115.0 million, (i) for the period commencing on the Second Amendment Effective Date and including the date that is 179 days after the Second Amendment Effective Date, 3.5% for LIBOR Rate Loans and 2.5% for Alternate Base Rate Loans, (ii) for the period commencing on the date that is 180 days after the Second Amendment Effective Date, through and including the date that is 269 days after the Second Amendment Effective Date, 4.25% for LIBOR Rate Loans and 3.25% for Alternate Base Rate Loans, (iii) for the period commencing on the date that is 270 days after the Second Amendment Effective Date, through and including the date that is 364 days after the Second Amendment Effective Date, 4.5% for LIBOR Rate Loans and 3.5% for Alternate Base Rate Loans and (iv) for the period commencing on the date that is 365 days after the Second Amendment Effective Date and thereafter, 4.75% for LIBOR Rate Loans and 3.75% for Alternate Base Rate Loans and (b) for so long as the Revolving Committed Amount is equal to or less than $115.0 million, 3.5% for LIBOR Rate Loans and 2.5% for Alternate Base Rate Loans. The Second Amendment provides that beginning on the 180th day after the Second Amendment Effective Date and for so long as the Revolving Committed Amount is greater than $115.0 million, the Company shall pay to the Administrative Agent, for the ratable benefit of the Revolving Facility Lenders, a commitment fee (the "Ticking Fee") on the average daily amount of the Revolving Committed Amount at a rate per annum equal to (a) 0.125% for the 180th day after the Second Amendment Effective Date through and including the 269th day after the Second Amendment Effective Date, (b) 0.25% for the 270th day after the Second Amendment Effective Date through and including the 364th day after the Second Amendment Effective Date and (c) 1.00% for the 365th day after the Second Amendment Effective Date and thereafter. The Second Amendment provides that the Ticking Fee will be due and payable quarterly in arrears (calculated on a 360-day basis) on the last Business Day of each calendar quarter and will accrue from the 180th day after the Second Amendment Effective Date for so long as the Revolving Committed Amount is greater than $115.0 million. The Company recorded expense of $0.1 million related to these ticking fees in the year ended January 3, 2021. The Second Amendment also provides that the Company shall use the proceeds of an Extension of Credit which results in the sum of the aggregate principal amount of outstanding Revolving Loans plus the aggregate amount of LOC Obligations equaling an amount in excess of $115.0 million, solely for ongoing operations of the Company and its subsidiaries and shall not be held as cash on the balance sheet. On April 8, 2020, the Company entered into the Third Amendment to its Senior Credit Facilities which increased the aggregate maximum commitments available for revolving credit borrowings (including standby letters of credit) under the Revolving Credit Facility by $15.4 million to a total of $145.8 million. On April 16, 2020, the Company entered into the Fourth Amendment to its Senior Credit Facilities (the "Fourth Amendment"). The Fourth Amendment permits the Company to incur and, if necessary, repay indebtedness incurred pursuant to the Paycheck Protection Program (the "PPP") under the Coronavirus Aid, Relief and Economic Security Act, as amended (the "CARES Act"). Subsequent to this amendment, the Company withdrew its application for relief under the PPP and returned the funds upon receipt. On June 23, 2020 (the "Fifth Amendment Effective Date"), the Company entered into the Fifth Amendment to its Senior Credit Facilities (the "Fifth Amendment"). The Fifth Amendment increased the Term Loan (as defined in the Senior Credit Facilities) borrowings in the aggregate principal amount of $75 million of Incremental Term B-1 Loans (as defined in the Senior Credit Facilities). The Incremental Term B-1 Loans constitute a new tranche of Term Loans ranking pari passu in right of payment and security with the Initial Term Loans for all purposes under the Senior Credit Facilities. The Incremental Term B-1 Loans have the same terms as outstanding borrowings under the Company's existing term loan B facility pursuant to and in accordance with the Senior Credit Facilities, provided that (i) borrowings under the Incremental Term B-1 Loans will bear interest at a rate per annum, at the Company’s option, of (a) the Alternate Base Rate (as defined in the Senior Credit Facilities) plus the applicable margin of 5.25% or (b) the LIBOR Rate (as defined in the Senior Credit Facilities) (which shall not be less than 1% for Incremental Term B-1 Loans) plus the applicable margin of 6.25% and (ii) certain prepayments of the Incremental Term B-1 Loans by the Company prior to the first anniversary of the Fifth Amendment Effective Date are subject to a premium to the Administrative Agent (as defined in the Senior Credit Facilities), for the ratable account of each applicable Term Loan Lender (as defined in the Senior Credit Facilities) holding Incremental Term B-1 Loans on the date of such prepayment equal to the Applicable Make-Whole Amount (as defined in the Senior Credit Facilities) with respect to the principal amount of the Incremental Term B-1 Loans so prepaid. The principal amount of the Incremental Term B-1 Loans will amortize in an aggregate annual amount equal to 1% of the original principal amount of the Incremental Term B-1 Loans and shall be repayable in consecutive quarterly installments on the last day of the Company's fiscal quarters beginning on the third fiscal quarter of 2020 with the remaining outstanding principal amount of the Incremental Term B-1 Loan and all accrued but unpaid interest and other amounts payable with respect to the Incremental Term B-1 Loan due on April 30, 2026 which is the Term Loan Maturity Date (as defined in the Senior Credit Facilities). The net proceeds of the Incremental Term B-1 Loans were $71.3 million after original issue discount and were used for general corporate purposes, including repayment of the outstanding balance of the Revolving Credit Facility. The Company’s obligations under the Senior Credit Facilities 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 Senior Credit Facilities, 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 Senior Credit Facilities contain 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 Senior Credit Facilities require the Company to meet a First Lien Leverage Ratio (as defined in the Senior Credit Facilities) if revolving credit borrowings exceed 35% of the aggregate borrowing capacity, as described under the First Amendment above. As there were no borrowings under the Revolving Credit Facility at January 3, 2021, no First Lien Leverage Ratio calculation was required. The Company was in compliance with the covenants under its Senior Credit Facilities at January 3, 2021. The Senior Credit Facilities contain 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. The Term Loan B and B-1 borrowings are due and payable in quarterly installments, which began on September 30, 2019. Amounts outstanding at January 3, 2021 are due and payable as follows: (i) twenty-one quarterly installments of $1.3 million; (ii) one final payment of $467.0 million on April 30, 2026. At January 3, 2021, borrowings under the Senior Credit Facilities bore interest as follows: (i) Revolving Credit Facility: at a rate per annum equal to (a) the Alternate Base Rate (as defined in the Senior Credit Facilities) plus 2.50% or (b) LIBOR Rate (as defined in the Senior Credit Facilities) plus 3.50%. (ii) Term Loan B borrowings: at a rate per annum equal to (a) the Alternate Base Rate (as defined in the Senior Credit Facilities) plus 2.25% or (b) LIBOR Rate (as defined in the Senior Credit Facilities) plus 3.25%. (iii) Term Loan B-1 borrowings: at a rate per annum, at the Company’s option, of (a) the Alternate Base Rate plus the applicable margin of 5.25% or (b) the LIBOR Rate (which shall not be less than 1% for Incremental Term B-1 Loans) plus the applicable margin of 6.25%. As of January 3, 2021, there were no revolving credit borrowings outstanding and $9.7 million of letters of credit issued under the Revolving Credit Facility. After reserving for issued letters of credit and outstanding revolving credit borrowings, $136.1 million was available for revolving credit borrowings under the Revolving Credit Facility at January 3, 2021. At January 3, 2021, principal payments required on long-term debt, including finance leases, were as follows: Fiscal year ending: January 2, 2022 $ 5,525 January 1, 2023 5,218 December 31, 2023 5,055 December 29, 2024 5,034 December 28, 2025 5,023 Thereafter 468,303 $ 494,158 The weighted average interest rate on all debt, excluding lease financing obligations, for the years ended January 3, 2021, December 29, 2019 and December 30, 2018 was 4.6%, 6.1% and 7.9%, respectively. Interest expense on the Company’s long-term debt, excluding lease financing obligations, was $27.2 million, $27.8 million and $23.5 million for the years ended January 3, 2021, December 29, 2019 and December 30, 2018, respectively. Interest Rate Swap. In March 2020, the Company entered into an interest rate swap agreement with its lenders to mitigate the risk of increases in the variable interest rate related to term loan borrowings under the Term Loan B Facility. The interest rate swap fixes the interest rate on 50% of the outstanding term loan borrowings under the Term Loan B Facility at 0.915% plus the applicable margin in its Senior Credit Facilities. The agreement matures on February 28, 2025 and has a notional amount of $220.0 million at January 3, 2021. The differences between the variable LIBOR rate and the interest rate swap rate of 0.915% are settled monthly. The Company made payments of $1.0 million to settle the interest rate swap during the twelve months ended January 3, 2021. The fair value of the Company's interest rate swap agreement was a liability of $6.1 million as of January 3, 2021 and is included in long-term other liabilities in the accompanying consolidated balance sheets. Changes in the valuation of the Company's interest rate swap were included as a component of other comprehensive income and will be reclassified to earnings as the losses are realized. The Company expects to reclassify net losses totaling $1.7 million into earnings in the next twelve months. |
Other Income (Notes)
Other Income (Notes) | 12 Months Ended |
Jan. 03, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income | Other Income In 2020, the Company recorded other income, net of $1.3 million, which consisted of gains related to insurance recoveries from property damage at four of its restaurants of $2.1 million, net gain on twelve sale-leaseback transactions of $0.2 million and a loss on disposal of assets of $1.0 million. In 2019, the Company recorded other income, net of $1.9 million which consisted of a $1.9 million gain from a settlement with RBI for their approval of new restaurant development by other franchisees which unfavorably impacted the Company's restaurants, $0.6 million net gains on sale-leaseback transactions, a $0.2 million gain related to insurance recoveries from fire at two of its restaurants and a loss on a disposal of restaurant equipment of $0.8 million. In 2018 the Company recorded other income of $0.4 million, primarily related to insurance recoveries from fires at two restaurants. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes was comprised of the following: Year ended January 3, 2021 December 29, 2019 December 30, 2018 Current: Federal $ — $ (260) $ — State 268 119 326 268 (141) 326 Deferred: Federal (6,039) (9,768) (598) State (1,073) (2,214) 115 (7,112) (11,982) (483) Increase in valuation allowance 13,138 — — Provision (benefit) for income taxes $ 6,294 $ (12,123) $ (157) 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 January 3, 2021 and December 29, 2019 were as follows: January 3, 2021 December 29, 2019 Deferred income tax assets: Operating lease liabilities $ 219,096 $ 218,503 Federal net operating loss carryforwards 28,880 30,588 Tax credit carryforwards 35,650 32,378 State net operating loss carryforwards 6,032 5,388 Interest expense limitation under section 163 (j) — 2,558 Stock-based compensation expense 1,323 1,274 Accrued vacation benefits 2,684 2,440 Accrued interest rate swap 1,841 — Postretirement benefit obligations 853 944 Other deferred income tax assets 4,345 4,690 Gross deferred income tax assets 300,704 298,763 Less: Valuation allowance (13,138) — Total deferred income tax assets $ 287,566 $ 298,763 Deferred income tax liabilities: Operating right-of-use assets (205,897) (208,804) Property and equipment depreciation (26,056) (29,685) Franchise rights (65,329) (66,725) Accumulated other comprehensive income-postretirement benefits (474) (280) Other deferred income tax liabilities (1,172) (252) Total deferred income tax liabilities (298,928) (305,746) Net long-term deferred income tax liabilities $ (11,362) $ (6,983) The Company's federal net operating loss carryforwards generated prior to December 31, 2017 expire beginning in 2033. Federal net operating losses generated subsequent to 2017 have no expiration date. As of January 3, 2021, the Company had federal net operating loss carryforwards of approximately $136.7 million and approximately $7.6 million in state net operating loss carryforwards. The Company's state net operating loss carryforwards expire beginning in 2021 through 2038. 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 January 3, 2021 and December 29, 2019. Under ASC 740, the weight given to negative and positive evidence is commensurate only to the extent that such evidence can be objectively verified. ASC 740 prescribes that objective historical evidence, in particular the Company’s three-year cumulative loss position at January 3, 2021, be given a greater weight than subjective evidence, including the Company’s forecast of future taxable income, which include assumptions that cannot be objectively verified. In determining the likelihood of future realization of the deferred income tax assets as of January 3, 2021 and December 29, 2019 the Company considered both positive and negative evidence and weighted the effect of such evidence based upon its objectivity. Based on the required weight of evidence under ASC 740, as of January 3, 2021 the Company determined that a valuation allowance was needed for certain federal income tax credits in the amount of $13.1 million as they may expire prior to their utilization by the Company. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as projections for growth. The company recorded income tax expense of $13.1 million in fiscal 2020 relative to this valuation reserve. A reconciliation of the statutory federal income tax provision to the income tax provision (benefit) for the years ended January 3, 2021, December 29, 2019, and December 30, 2018 was as follows: Year ended January 3, 2021 December 29, 2019 December 30, 2018 Statutory federal income tax provision (benefit) $ (4,865) $ (9,249) $ 2,089 State income taxes, net of federal benefit (726) (1,655) 325 Employment tax credits (2,585) (2,938) (3,059) Change in valuation allowances 13,138 — — Non-deductible expenses 214 1,374 415 Stock-based compensation 525 308 (53) Rate change 312 — — Miscellaneous 281 37 126 Provision (benefit) for income taxes $ 6,294 $ (12,123) $ (157) The Company's policy is to recognize interest and/or penalties related to uncertain tax positions in income tax expense. At January 3, 2021 and December 29, 2019, the Company had no unrecognized tax benefits and no accrued interest related to uncertain tax positions. The tax years 2014 - 2020 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. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 03, 2021 | |
Share-based Payment Arrangement, Noncash Expense [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 January 3, 2021, 887,171 shares were available for future grant or issuance. Stock-based compensation expense for the years ended January 3, 2021, December 29, 2019, and December 30, 2018 was $5.2 million, $5.8 million and $5.8 million, respectively. As of January 3, 2021, the total remaining stock-based compensation expense relating to non-vested shares and stock options was approximately $7.7 million and the remaining weighted average vesting period for non-vested shares and stock options was 4.0 years. Non-vested Shares During the year ended January 3, 2021, the Company granted 790,000 non-vested shares of common stock to certain employees and officers of the Company and 73,128 non-vested shares to outside directors of the Company. These shares vest over their three-year vesting period, provided the participant has continuously remained an employee, officer, or director of the Company. On January 15, 2019, the Company granted 417,500 non-vested shares of common stock to certain employees and officers of the Company and 47,470 non-vested shares to outside directors of the Company. These shares vest over their three-year vesting period, provided the participant has continuously remained an employee, officer, or director of the Company. In September of 2019, the Company granted 10,000 non-vested shares of common stock to an interim officer of the Company, which vested in May 2020. On January 15, 2018, the Company granted 350,000 non-vested shares of common stock to officers of the Company. These shares vest over their three A summary of all non-vested common share activity for the year ended January 3, 2021 was as follows: Shares Weighted Average Grant Date Price Non-vested at December 29, 2019 790,823 $ 11.35 Granted 863,128 $ 5.42 Vested (416,253) $ 12.07 Forfeited (69,850) $ 6.24 Non-vested at January 3, 2021 1,167,848 $ 7.02 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 January 3, 2021, the total non-vested stock-based compensation expense relating to non-vested shares and stock options was approximately $7.7 million and the remaining weighted average vesting period for non-vested shares and stock options was 4.0 years. Stock Options During the twelve months ended January 3, 2021, the Company granted in the aggregate options to purchase 1,075,000 shares of its common stock, consisting of 739,340 shares of non-qualified stock options and 335,660 shares of incentive stock options (“ISOs”) to certain employees and officers of the Company. These options become exercisable and are being expensed over their three-year vesting period. The options expire seven years from the date of the grant and were issued with an exercise price equal to the fair market value of the stock price, or $7.12 per share of common stock, on the date of grant. The following assumptions were used in the Black-Scholes option-pricing model to determine the fair value of stock option awards at the grant date: 2020 Risk-free interest rate 0.21 % Expected term (in years) 4.5 Expected volatility 65.10 % Expected dividend yield — % Fair Value $ 3.65 Expected term represents the period that the stock option awards were expected to be outstanding. Given the Company has not issued stock options since 2010, it concluded that its stock option exercise history did not provide a reasonable basis upon which to estimate expected term and therefore used the simplified method to determine the expected term of this stock option grant. This method bases the expected term calculation on the average of the vesting term and the contractual term of the awards. The risk-free interest rate was based on the yield of constant maturity U.S. treasury bonds with a remaining term equal to the expected term of the awards. There was no expected dividend yield. The Company estimated the stock price volatility using weekly price observations over the most recent historical period equal to the expected life of the awards. A summary of all stock option activity for the year ended January 3, 2021 was as follows: Options Weighted Average Exercise Price Average Remaining Contractual Life Aggregate Intrinsic Value (1) Options outstanding at December 29, 2019 — Granted 1,075,000 $ 7.12 Forfeited (25,000) $ 7.12 Options Outstanding at January 3, 2021 1,050,000 $ 7.12 6.6 $ — Vested or expected to vest at January 3, 2021 1,050,000 $ 7.12 6.6 $ — Options exercisable at January 3, 2021 — (1) The aggregate intrinsic value is calculated using the difference between the market price of the Company's common stock at January 3, 2021 of $6.28 and the grant date exercise price for only those awards that have a grant date exercise price that is less than the market price of the Company's common stock at January 3, 2021. There were no awards having a grant date exercise price less than the market price of the Company's common stock at January 3, 2021. Restricted Stock Units The Company has issued restricted stock units (“RSUs”) on shares of the Company's common shares to certain eligible employees. The RSUs generally vest in equal installments over three years. During the twelve months ended January 3, 2021, 20,486 RSUs vested into shares of the Company's common stock at a weighted average price of $2.92 per share. A summary of all RSU activity for the year ended January 3, 2021 was as follows: Units Non-vested at December 29, 2019 57,942 Vested (20,486) Non-vested at January 3, 2021 37,456 |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Jan. 03, 2021 | |
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 the Company's Series A Convertible Preferred Stock (the "Series A Convertible Preferred Stock") pursuant to a certificate of designation. These shares were convertible into 9,414,580 shares of Carrols Restaurant Group Common Stock ("Carrols Common Stock"). In 2018, Carrols Restaurant Group, BKC and Blue Holdco 1, LLC ("Blue Holdco" and together with BKC, the "BKC Stockholders") exchanged the Series A Convertible Preferred Stock for Series B Convertible Preferred Stock (the "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 transferable by the BKC Stockholders solely to certain of its affiliates or subsidiaries. The Series B Convertible Preferred Stock ranks senior to Carrols Common Stock with respect to rights on liquidation, winding-up and dissolution of Carrols Restaurant Group. The Series B Convertible 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. The BKC Stockholders also have certain approval and voting rights as set forth in the certificate of designation for the Series B Convertible Preferred Stock so long as they own greater than 7.5% of the outstanding shares of Carrols Common Stock (on an as-converted basis). The Series B Convertible Preferred Stock will vote with the Company's Common Stock on an as converted basis and provides for the right of the BKC Stockholders 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 Series B Convertible Preferred Stock held by the BKC stockholders are then convertible constitutes less than 11.5% of the total number of outstanding shares of the Company's Common Stock and (b) one member to the Company's Board of Directors until the BKC Stockholders own Series B Convertible Preferred Stock (on an as converted basis) of less than 7.5% of the total number of outstanding shares of the Company's Common Stock. In connection with the Cambridge Merger, Cambridge Holdings was issued 10,000 shares of the Company's Series C Convertible Preferred Stock (the " Series C Convertible Preferred Stock") that was automatically converted during the third quarter of 2019 into approximately 7.5 million shares of the Company's Common Stock when such conversion was approved by the Company's stockholders at the Company's annual stockholders meeting on August 29, 2019. With the conversion of the Series C Convertible Preferred Stock in the third quarter of 2019, as of January 3, 2021 Cambridge Holdings beneficially owns approximately 23.9% of the Company's Common Stock after giving effect to the conversion of the Series B Convertible Preferred Stock. Stock Repurchase Program. On August 2, 2019, the Company's Board of Directors approved a stock repurchase plan ("Repurchase Program") under which the Company may repurchase up to $25.0 million of its outstanding common stock. The authorization became effective August 2, 2019, and will expire 24 months thereafter, unless terminated earlier by the Company's Board of Directors. Purchases under the Repurchase Program may be made from time to time in open market transactions at prevailing market prices or in privately negotiated transactions (including, without limitation, the use of Rule 10b5-1 plans) in compliance with applicable federal securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase stock under the Repurchase Program, and the timing, actual number and value of shares purchased will depend on the Company's stock price, trading volume, general market and economic conditions, and other factors. During the twelve months ended January 3, 2021, the Company repurchased in open market transactions 1,534,304 shares of the Company's Common Stock at an average share price of $6.52 for a total cost of $10.0 million under the Repurchase Program. During the twelve months ended December 29, 2019, the Company repurchased in open market transactions 553,112 shares of the Company's Common Stock at an average share price of $7.26 for a total cost of $4.0 million under the Repurchase Program. At January 3, 2021, $11.0 million was available to repurchase shares under the Repurchase Program. Shares repurchased are being held in treasury until they are retired at the discretion of the Board of Directors. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Jan. 03, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) per Share The Company applies the two-class method to calculate and present net income (loss) per share. The Company's non-vested restricted share awards and Series B Convertible Preferred Stock held by the BKC Stockholders 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 (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income (loss) 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 (loss) per share: Year ended January 3, 2021 December 29, 2019 December 30, 2018 Basic net income (loss) per share: Net income (loss) $ (29,463) $ (31,919) $ 10,104 Less: Income attributable to non-vested shares — — (178) Less: Income attributable to preferred stock — — (2,071) Net income (loss) available to common stockholders $ (29,463) $ (31,919) $ 7,855 Weighted average common shares outstanding 50,751,185 43,421,715 35,715,372 Basic net income (loss) per share $ (0.58) $ (0.74) $ 0.22 Diluted net income (loss) per share: Net income (loss) $ (29,463) $ (31,919) $ 10,104 Weighted average common shares outstanding 50,751,185 43,421,715 35,715,372 Dilutive effect of preferred stock and non-vested shares — — 9,604,599 Dilutive weighted average common shares outstanding 50,751,185 43,421,715 45,319,971 Diluted net income (loss) per share (1) $ (0.58) $ (0.74) $ 0.22 Shares excluded from diluted net income (loss) per share computations (2) 9,615,435 11,484,159 — (1) Diluted net income (loss) per share is equal to basic net income (loss) 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 (loss) per share causing basic net income (loss) per share to be lower than diluted net income (loss) per share calculated under the treasury-stock method. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Jan. 03, 2021 | |
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 January 3, 2021, the Company is a guarantor under 18 Fiesta restaurant property leases, of which all but two of those restaurants are still operating with lease terms expiring on various dates through 2030. 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 January 3, 2021 was $13.6 million. The obligations under these leases will generally continue to decrease over time as these operating leases expire, other than execution of option renewals that exist under the original leases. 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. |
Related Parties
Related Parties | 12 Months Ended |
Jan. 03, 2021 | |
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 January 3, 2021 is convertible into approximately 15.2% of the outstanding shares of the Company's common stock after giving effect to the conversion of the Series B Convertible Preferred Stock. See Note 12—Stockholder's Equity for further information. Pursuant to the terms of the Series B Convertible Preferred Stock, the BKC Stockholders are entitled to elect two representatives on the Company's Board of Directors. The Company operates its Burger King® restaurants under franchise agreements with BKC and its Popeyes® restaurants under franchise agreements with Popeyes Louisiana Kitchen, Inc. ("PLK"), a subsidiary of RBI. These franchise agreements generally provide for an initial term of twenty The Company is also generally required to contribute 4% of restaurant sales from the Company's restaurants to the advertising funds utilized by BKC and PLK for their 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 $59.3 million, $56.7 million and $47.0 million for the years ended January 3, 2021, December 29, 2019 and December 30, 2018, respectively. As of January 3, 2021, December 29, 2019, and December 30, 2018, the Company leased 232, 248 and 244 of its restaurant locations from BKC, respectively. As of January 3, 2021, the terms and conditions of the leases with BKC are identical to those between BKC and their third-party lessor for 101 of the restaurants. Aggregate rent under these BKC leases for the years ended January 3, 2021, December 29, 2019 and December 30, 2018 was $25.9 million, $27.4 million, and $27.2 million, respectively. The Company does not believe that such lease terms have been significantly affected by the fact that the Company and BKC are deemed to be related parties. As of January 3, 2021 and December 29, 2019, the Company owed BKC $14.7 million and $11.5 million respectively, related to the payment of advertising, royalties, rent and real estate taxes, which is normally remitted on a monthly basis. These costs are included in accounts payable, other current liabilities, prepaid rent and accrued real estate taxes on the accompanying consolidated balance sheets. The Company and BKC entered into an Area Development and Remodeling Agreement ("Area Development Agreement") commencing on April 30, 2019 and ending on September 30, 2024, which superseded the Operating Agreement dated as of May 30, 2012, as amended, between Carrols LLC and BKC. Pursuant to the Area Development Agreement, BKC assigned its right of first refusal under its franchise agreements with its franchisees to purchase all of the assets of a Burger King restaurant on the same terms proposed between such franchisee and a third party purchaser (the “ADA ROFR”), in 16 states and a limited number of counties in four additional states, and granted franchise pre-approval to acquire Burger King restaurants until the date that Carrols LLC has acquired more than an aggregate of an additional 500 Burger King restaurants excluding those restaurants the Company acquired in the Cambridge Merger. Carrols LLC agreed to pay BKC $3.0 million for the ADA ROFR in four equal installment payments over the course of one year. The ADA was amended and restated on January 4, 2021 (see Note 18) and an impairment charge was recorded during the year ended January 3, 2021 for the remaining value of the ADA ROFR (see Note 5). The Company assumed Cambridge's development agreement for Popeyes®, which includes a right of first refusal for acquisitions in two southern states, as well as a development commitment to open, build and operate approximately 80 new Popeyes® restaurants over six first refusal is subject to suspension at Popeyes® discretion in the event of non-compliance by the Company with certain terms set forth in this development agreement. The Company received $1.9 million related to a settlement with BKC for their approval of new restaurant development by other franchisees which unfavorably impacted the Company's restaurants which was recorded as other income in 2019 (see Note 9). |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jan. 03, 2021 | |
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 $1.9 million, $1.4 million and $0.7 million for the years ended January 3, 2021, December 29, 2019 and December 30, 2018, 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 January 3, 2021 and December 29, 2019, a total of $4.4 million and $3.9 million, respectively, was deferred under this plan, including accrued interest, which is included in long-term other liabilities on the accompanying consolidated balance sheets. |
Selected Quarterly Financial an
Selected Quarterly Financial and Earnings Data (Unaudited) (Notes) | 12 Months Ended |
Jan. 03, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Selected Quarterly Financial Data (Unaudited) Year Ended January 3, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Restaurant sales $ 351,518 (2) $ 368,418 (2) $ 407,036 $ 420,530 Income (loss) from operations (22,047) (3) 14,302 (3) 10,228 (3) 1,631 (3) Net income (loss) (22,209) 7,842 3,531 (18,627) (4) Basic and diluted net loss per share (0.44) 0.13 0.06 (0.37) Restaurants open at end of period 1,093 1,092 1,088 1,074 Year Ended December 29, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Restaurant sales $ 290,789 (5) $ 365,674 (5) $ 398,414 $ 397,639 Income (loss) from operations (5,168) (5)(6) 2,103 (5)(6) (1,115) (5)(6) (4,563) (5)(6) Net loss (11,469) (3,732) (6,812) (9,906) Basic and diluted net loss per share (0.32) (0.09) (0.15) (0.20) Restaurants open at end of period 845 1,081 1,088 1,101 (1) The fourth quarter of 2020 includes an extra week (see footnote 1) (2) In the first and second quarters of 2020, the Company's sales were impacted by the onset of the COVID-19 pandemic. Restaurant sales during the last two weeks of March and first two weeks of April showed approximately 30% declines in comparable sales. The declines began easing mid-April and throughout May, with a return to positive changes in comparable restaurant sales for the month of June. (3) In fiscal 2020, the Company recorded impairment and other lease charges of $2.9 million in the first quarter, $2.9 million in the second quarter, $2.0 million in the third quarter and $5.0 million in the fourth quarter. The fourth quarter of 2020 included a $2.0 million charge related to the ROFR termination (See Note 5). (4) In the fourth quarter of 2020, the Company recorded a valuation allowance on certain of its tax credits of $12.9 million (see Note 10). (5) In fiscal 2019, the Company acquired 233 restaurants in the second quarter in two separate transactions and one restaurant in the third quarter (See Note 2). In fiscal 2019 the Company recorded acquisition and integration costs related to the 2019 acquisitions of $2.6 million in the first quarter, $2.6 million in the second quarter, $2.8 million in the third quarter and $2.8 million in the fourth quarter (See Note 2). (6) In fiscal 2019, the Company recorded impairment and other lease charges of $0.9 million in the first quarter, $0.4 million in the second quarter, $0.5 million in the third quarter and $1.8 million in the fourth quarter (See Note 5). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 03, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent Events. On January 4, 2021, the Company amended and restated its existing Area Development Agreement (See Note 15). Pursuant to the ADA and for a cost of $3.0 million, BKC had assigned to Carrols LLC the right of first refusal on the sale of franchisee-operated restaurants in 16 states and a limited number of counties in four additional states, and granted franchise pre-approval to acquire Burger King restaurants until the date that we have acquired more than an aggregate of an additional 500 Burger King restaurants excluding those restaurants we acquired in the Cambridge Acquisition ("ADA ROFR"). The ADA ROFR was terminated in connection with the Amended ADA. On October 1 of each year following the commencement date of the ADA, Carrols LLC had been required to pay BKC certain pre-paid franchise fees to be applied to new Burger King restaurants opened and operated by Carrols LLC. The Amended ADA eliminated the requirement for any prepayments due and payable on and after October 1, 2020, and the $0.6 million balance of prepaid franchise fees paid under the ADA that had not yet been applied to new restaurant development was forfeited. Pursuant to the Amended ADA, Carrols LLC has agreed to open, build and operate a total of 50 new Burger King restaurants, 80% of which must be in Kentucky, Tennessee and Indiana. This includes four Burger King restaurants by September 30, 2021, 10 additional Burger King restaurants by September 30, 2022, 12 additional Burger King restaurants by September 30, 2023, 12 additional Burger King restaurants by September 30, 2024 and 12 additional Burger King restaurants by September 30, 2025. In addition, pursuant to the Amended ADA, BKC granted Carrols LLC franchise pre-approval to build new Burger King restaurants or acquire Burger King restaurants from Burger King franchisees with respect to 500 Burger King restaurants in the aggregate in (i) Kentucky, Tennessee and Indiana (excluding certain geographic areas in Indiana) and (ii) (a) 16 states, which include Arkansas, Indiana, Kentucky, Louisiana, Maine, Maryland, Michigan, Mississippi, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont and Virginia (subject to certain exceptions for certain limited geographic areas within certain states) and (b) any other geographic locations that Carrols LLC enters after the commencement date of the Amended ADA pursuant to BKC procedures subject to certain limitations. |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 12 Months Ended |
Jan. 03, 2021shares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 year ended January 3, 2021 contained 53 weeks and the fiscal years ended December 29, 2019 and December 30, 2018 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: other lease charges related to closed locations, insurance liabilities, evaluation for impairment of long-lived assets and franchise rights, lease accounting matters, the valuation of acquired assets and liabilities, valuation of interest rate swap 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 finance leases Shorter of useful life or lease term |
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, if any, 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 finance leases are determined using both the cost approach and market approach using significant inputs observable in the open market. The Company categorizes these inputs as Level 2 inputs under ASC 820. The fair value of acquired franchise rights and favorable or unfavorable lease positions are determined using the income approach and includes unobservable inputs. The Company categorizes these inputs as Level 3 inputs under ASC 820. |
Intangible Assets [Policy Text Block] | 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 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. twenty |
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 the businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. |
Impairment or Disposal of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets. The Company assesses the potential impairment of property and equipment, franchise rights and other definite-lived 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. Impairment indicators at the restaurant level include low operating cash flows, declining sales and if the ratio of trailing twelve months cash flows extended over the remaining lease term does not exceed the net book value of the asset group. |
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. 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 provide for renewal options with rent escalations. The exercise of such renewal options are generally at the Company’s sole discretion. The Company evaluates renewal options at lease commencement to determine if such options are reasonably certain to be exercised based on economic factors. Certain leases also 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. Right-of-use (“ROU”) lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make payments in exchange for that right of use. As the rate implicit within our leases is not readily determinable, the Company uses market and term specific incremental borrowing rates which consider the rate of interest it expects to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. ROU assets are also reduced by lease incentives, initial direct costs and adjusted by favorable lease assets and unfavorable lease liabilities. Variable lease components represent amounts that are contractually fixed as a percentage of sales and are recognized in expense as incurred. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet and are recognized as lease expense on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components. The Company also utilizes certain restaurant equipment under various finance lease agreements with initial terms of generally eight For certain leases where rent escalates based upon a change in a financial index, such as the Consumer Price Index, the difference between the rate at lease inception and the subsequent fluctuations in that rate are included in variable lease costs. Additionally, because the Company has elected to not separate lease and non-lease components, in limited instances variable costs also include payments to the landlord for common area maintenance, real estate taxes, insurance and other operating expenses. Lease expense is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. |
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 land and building assets subject to these obligations remain on the Company’s consolidated balance sheets at their historical costs and the building assets continue to be depreciated |
Revenue Recognition [Policy Text Block] | Revenue Recognition. Revenues from Company restaurants and other revenue from convenience store sales, net of sales discounts, are recognized when payment is tendered at the time of sale or upon fulfillment of delivery orders. Revenues are reported net of sales tax collected from customers and remitted to governmental taxing authorities. |
Gift cards [Policy Text Block] | Gift cards. The Company sells gift cards in its restaurants that are issued under the gift card program of Restaurant Brands International, Inc. ("RBI"). Proceeds from the sale of Burger King® and Popeyes® gift cards at the Company’s restaurants are remitted to RBI, and RBI reimburses the Company for any gift card redemptions at its restaurants. The Company recognizes revenue for restaurant sales upon redemption of gift cards by the customer. Cost of Sales. The Company includes food, beverage and paper costs and delivery charges, net of any vendor purchase discounts and rebates, in cost of sales. |
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 subsidiaries file a consolidated federal income tax return. |
Advertising Costs [Policy Text Block] | Advertising Costs. All advertising costs are expensed as incurred. For the years ended January 3, 2021, December 29, 2019 and December 30, 2018, advertising costs were $60.7 million, $58.7 million and $48.3 million, respectively. |
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 general liability, medical insurance and most workers’ compensation 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. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: 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 the Company's 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 |
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, restricted stock units (RSU) and non-vested shares may be granted to employees and non-employee directors. The Company has granted non-vested shares under this plan annually as well as granted non-vested shares, stock options, and RSU's to corporate employees for performance. Non-vested shares, options, and RSUs 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. For stock options, the fair-value of the options is estimated using the Black-Scholes option pricing model based on assumptions for the risk-free rate of interest, expected dividend yield, expected volatility, and the expected term of the award. Compensation expense is recognized over the three-year vesting 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 restaurants as one reportable segment. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements Not Yet Adopted. In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”). This ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the effect adoption of this guidance will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) ("ASU No. 2019-12"). This ASU simplifies the accounting for income taxes by removing certain exceptions, including an exception to the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss for the full year. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted and amendments applied on a prospective basis. The impact of the standard will depend on interim and anticipated profit or loss in a given period, however the Company does not expect ASU No. 2019-12 to have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, to introduce new guidance for the accounting for credit losses on instruments within its scope. ASU 2016-13 requires among other things, the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This update was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company implemented this for the year beginning December 30, 2019 and the implementation had no impact on its consolidated financial statements and related disclosures. In January 2017, the 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 was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company implemented this for the year ended January 3, 2021 and the implementation had no impact on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement benefits (Topic 715-20). This ASU amends ASC 715 to add certain relevant disclosures, remove certain disclosures no longer considered to be cost beneficial, and clarify specific disclosure requirements related to defined benefit pension and other postretirement plans. This ASU is effective for fiscal years ending after December 15, 2020 and requires application on a retrospective basis. The Company implemented this for the year ended January 3, 2021 and there was no impact on its consolidated financial statements. In April 2020, the FASB staff issued interpretive guidance that indicated it would be acceptable for entities to make an election to account for lease concessions related to the COVID-19 pandemic consistent with how those concessions would be accounted for under ACS Topic 842, Leases ("ASC 842"), as though enforceable rights and obligations for those concessions existed (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). Consequently, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in Topic 842 to those contracts. This election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. The Company has made the policy election to apply this interpretive guidance to certain rent relief resulting directly from COVID-19, and has assumed that enforceable rights and obligations for those concessions exist in the lease contract. Accordingly, the Company recognized abatements that did not result in an extension of lease term as reductions in variable lease payments, and deferrals that did not result in an extension of lease term as an increase in other current liabilities. This election will continue while these abatements or deferrals are in effect. |
Convertible Preferred Stock, Common Shares Issuable upon Conversion | 9,414,580 |
Intangible Assets (Policies)
Intangible Assets (Policies) | 12 Months Ended |
Jan. 03, 2021 | |
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 the businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. |
Intangible Assets [Policy Text Block] | 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 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. twenty |
Impairment Of Long-Lived Asse_2
Impairment Of Long-Lived Assets And Other Lease Charges (Policies) | 12 Months Ended |
Jan. 03, 2021 | |
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 potential impairment of property and equipment, franchise rights and other definite-lived 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. Impairment indicators at the restaurant level include low operating cash flows, declining sales and if the ratio of trailing twelve months cash flows extended over the remaining lease term does not exceed the net book value of the asset group. |
Net Income (Loss) Per Share Ear
Net Income (Loss) Per Share Earnings per share narrative (Policies) | 12 Months Ended |
Jan. 03, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | The Company applies the two-class method to calculate and present net income (loss) per share. The Company's non-vested restricted share awards and Series B Convertible Preferred Stock held by the BKC Stockholders 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 (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income (loss) 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 |
Jan. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property and equipment [Table Text Block] | 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 finance leases Shorter of useful life or lease term Property and equipment at January 3, 2021 and December 29, 2019 consisted of the following: January 3, 2021 December 29, 2019 Land $ 8,301 $ 8,800 Owned buildings 13,325 12,490 Leasehold improvements 424,685 413,543 Equipment 320,909 311,423 Assets subject to finance leases 16,663 17,132 783,883 763,388 Less accumulated depreciation and amortization (434,328) (377,810) $ 349,555 $ 385,578 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | During the year ended December 29, 2019, the Company acquired a total of 234 restaurants from other franchisees, which are referred to as the "2019 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price April 30, 2019 (1) 220 $ 259,083 Southeastern states, primarily TN, MS, LA June 11, 2019 13 15,788 Baltimore, Maryland August 20, 2019 (2) 1 1,108 Pennsylvania 234 $ 275,979 (1) During the second quarter of 2019, the Company completed the merger with New CFH, LLC ("Cambridge") and acquired 165 Burger King restaurants and 55 Popeyes restaurants. (2) Acquisitions resulting from the exercise of the Company's right of first refusal on acquisitions in certain markets (see note 15). 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 (loss). (2) Acquisitions resulting from the exercise of the Company's right of first refusal on acquisitions in certain markets (see note 15). |
Schedule of Purchase Price Allocation [Table Text Block] | The following table summarizes the final allocation of the aggregate purchase price for the Cambridge Merger: Inventory $ 2,839 Prepaid expenses 2,947 Other assets 1,846 Land and buildings 21,257 Restaurant equipment 25,358 Restaurant equipment - subject to finance leases 488 Right-of-use assets 251,431 Leasehold improvements 3,498 Franchise fees 7,300 Franchise rights (Note 4) 174,500 Deferred taxes (44,292) Goodwill (Note 4) 84,060 Finance lease obligations for restaurant equipment (568) Operating lease liabilities (255,897) Accounts payable (8,014) Accrued payroll, related taxes and benefits (3,133) Other liabilities (4,537) Net assets acquired $ 259,083 Inventory $ 158 Restaurant equipment 743 Restaurant equipment - subject to finance leases 150 Right-of-use assets 9,515 Leasehold improvements 6,205 Franchise fees 394 Franchise rights (Note 4) 9,809 Deferred taxes 29 Goodwill (Note 4) 86 Operating lease liabilities (9,968) Finance lease obligations for restaurant equipment (185) Accounts payable (40) Net assets acquired $ 16,896 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 587 Deferred taxes 346 Goodwill (Note 4) 1,677 Capital lease obligations for restaurant equipment (49) Unfavorable leases (624) Accounts payable (9) Net assets acquired $ 38,332 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table summarizes the Company's unaudited proforma operating results: Year Ended December 29, 2019 December 30, 2018 Restaurant sales $ 1,568,533 $ 1,518,841 Net income (loss) (25,586) 27,730 Basic and diluted net income (loss) per share (0.59) 0.60 Year Ended December 30, 2018 Restaurant sales $ 1,217,891 Net income 13,684 Basic and diluted net income per share 0.30 |
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: 2019 Acquisitions 2018 Acquisitions Favorable leases — 17.2 Unfavorable leases — 18.3 Franchise rights 32.7 31.6 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment [Table Text Block] | 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 finance leases Shorter of useful life or lease term Property and equipment at January 3, 2021 and December 29, 2019 consisted of the following: January 3, 2021 December 29, 2019 Land $ 8,301 $ 8,800 Owned buildings 13,325 12,490 Leasehold improvements 424,685 413,543 Equipment 320,909 311,423 Assets subject to finance leases 16,663 17,132 783,883 763,388 Less accumulated depreciation and amortization (434,328) (377,810) $ 349,555 $ 385,578 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Goodwill [Line Items] | |
Schedule of Goodwill [Table Text Block] | Goodwill at December 30, 2018 $ 38,469 Acquisitions of restaurants (Note 2) 84,150 Goodwill at December 29, 2019 122,619 Acquisitions of restaurants (Note 2) — Goodwill at January 3, 2021 $ 122,619 |
Intangible Assets [Table Text Block] | The following is a summary of the Company’s franchise rights as of the respective balance sheet dates: Balance at December 30, 2018 $ 175,897 Acquisitions of restaurants (Note 2) 184,309 Amortization expense (11,265) Balance at December 29, 2019 348,941 Amortization expense (14,344) Balance at January 3, 2021 $ 334,597 |
Other Liabilities, Long-Term (T
Other Liabilities, Long-Term (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Liabilities, Noncurrent [Abstract] | |
Schedule of Other Liabilities [Table Text Block] | Other liabilities, long-term, at January 3, 2021 and December 29, 2019 consisted of the following: January 3, 2021 December 29, 2019 Accrued occupancy costs $ 2,394 $ 8,523 Accrued workers’ compensation and general liability claims 5,499 5,370 Interest rate swap liability 6,062 — Deferred compensation 4,419 3,902 Deferred federal payroll taxes 10,808 — Other 290 289 $ 29,472 $ 18,084 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Rent commitments under finance and non-cancelable operating leases at January 3, 2021 were as follows: Fiscal year ending: Operating Leases Finance Leases January 2, 2022 $ 99,191 $ 583 January 1, 2023 98,850 240 December 31, 2023 98,005 68 December 29, 2024 96,853 42 December 28, 2025 94,613 28 Thereafter 877,149 59 Total lease payments 1,364,661 1,020 Less: imputed interest (512,877) (112) Present value of lease liabilities 851,784 908 Less: current portion (41,815) (525) Total long-term lease liabilities $ 809,969 $ 383 |
Finance Lease, Liability, Maturity [Table Text Block] | Rent commitments under finance and non-cancelable operating leases at January 3, 2021 were as follows: Fiscal year ending: Operating Leases Finance Leases January 2, 2022 $ 99,191 $ 583 January 1, 2023 98,850 240 December 31, 2023 98,005 68 December 29, 2024 96,853 42 December 28, 2025 94,613 28 Thereafter 877,149 59 Total lease payments 1,364,661 1,020 Less: imputed interest (512,877) (112) Present value of lease liabilities 851,784 908 Less: current portion (41,815) (525) Total long-term lease liabilities $ 809,969 $ 383 |
Lease, Cost [Table Text Block] | The components and classification of lease expense for the years ended January 3, 2021 and December 29, 2019 are as follows: Year ended Lease cost Classification January 3, 2021 December 29, 2019 Operating lease cost (1) Restaurant rent expense $ 102,651 $ 90,718 Operating lease cost General and administrative 606 $ 579 Variable lease cost - variable rent Restaurant rent expense 16,245 $ 16,454 Variable lease cost - common area maintenance Other restaurant operating expenses 521 $ 617 Sublease income Restaurant rent expense (452) $ (25) Finance lease cost: Amortization of right-of-use assets Depreciation and amortization 1,233 $ 1,778 Interest on lease liabilities Interest expense 130 $ 256 Total lease cost $ 120,934 $ 110,377 (1) Includes short-term leases which are not material. Total rent expense for the year ended December 30, 2018 on operating leases, including contingent rent on both operating and finance leases, was as follows: Year ended December 30, 2018 Minimum rent on real property $ 72,206 Contingent rent on real property 9,203 Restaurant rent expense 81,409 Administrative and equipment rent 273 $ 81,682 Supplemental cash flow information related to leases for the years ended January 3, 2021 and December 29, 2019 are as follows: Year ended January 3, 2021 December 29, 2019 Gain on sale-leaseback transactions $ 189 $ 636 Lease assets and liabilities resulting from lease modifications and new leases 50,978 76,878 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 98,561 87,220 Operating cash flows from finance leases 130 256 Financing cash flows from finance lease obligations 1,617 2,170 |
Assets And Liabilities, Lessee [Table Text Block] | Supplemental balance sheet information related to leases was as follows as of January 3, 2021 and December 29, 2019: Leases Classification January 3, 2021 December 29, 2019 Assets Operating leases Operating right-of-use assets, net $ 799,962 $ 811,016 Finance leases Property and equipment, net 644 1,882 Total leased assets $ 800,606 $ 812,898 Liabilities Current Operating leases Current portion of operating lease liabilities $ 41,815 $ 40,805 Finance leases Current portion of long-term debt and finance lease liabilities 525 1,616 Long-term Operating leases Operating lease liabilities 809,969 808,292 Finance leases Long-term debt and finance lease liabilities 383 908 Total lease liabilities $ 852,692 $ 851,621 Weighted Average Remaining Lease Term Operating leases 14.0 years 14.5 years Finance leases 2.4 years 2.0 years Weighted Average Discount Rate Operating leases 7.0 % 7.0 % Finance leases 8.9 % 7.9 % |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt at January 3, 2021 and December 29, 2019 consisted of the following: January 3, 2021 December 29, 2019 Collateralized: Senior Credit Facility: Term Loan B borrowings $ 419,375 $ 422,875 Term Loan B-1 borrowings 73,875 — Revolving credit borrowings — 45,750 Finance lease liabilities 908 2,524 494,158 471,149 Less: current portion of long-term debt and finance lease liabilities (5,525) (5,866) Less: unamortized debt issuance costs (7,777) (7,768) Less: original issue discount (5,161) (1,950) Total Long-term Debt $ 475,695 $ 455,565 |
Schedule of Maturities of Long-term Debt [Table Text Block] | At January 3, 2021, principal payments required on long-term debt, including finance leases, were as follows: Fiscal year ending: January 2, 2022 $ 5,525 January 1, 2023 5,218 December 31, 2023 5,055 December 29, 2024 5,034 December 28, 2025 5,023 Thereafter 468,303 $ 494,158 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
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 January 3, 2021 December 29, 2019 December 30, 2018 Current: Federal $ — $ (260) $ — State 268 119 326 268 (141) 326 Deferred: Federal (6,039) (9,768) (598) State (1,073) (2,214) 115 (7,112) (11,982) (483) Increase in valuation allowance 13,138 — — Provision (benefit) for income taxes $ 6,294 $ (12,123) $ (157) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred income tax assets and liabilities at January 3, 2021 and December 29, 2019 were as follows: January 3, 2021 December 29, 2019 Deferred income tax assets: Operating lease liabilities $ 219,096 $ 218,503 Federal net operating loss carryforwards 28,880 30,588 Tax credit carryforwards 35,650 32,378 State net operating loss carryforwards 6,032 5,388 Interest expense limitation under section 163 (j) — 2,558 Stock-based compensation expense 1,323 1,274 Accrued vacation benefits 2,684 2,440 Accrued interest rate swap 1,841 — Postretirement benefit obligations 853 944 Other deferred income tax assets 4,345 4,690 Gross deferred income tax assets 300,704 298,763 Less: Valuation allowance (13,138) — Total deferred income tax assets $ 287,566 $ 298,763 Deferred income tax liabilities: Operating right-of-use assets (205,897) (208,804) Property and equipment depreciation (26,056) (29,685) Franchise rights (65,329) (66,725) Accumulated other comprehensive income-postretirement benefits (474) (280) Other deferred income tax liabilities (1,172) (252) Total deferred income tax liabilities (298,928) (305,746) Net long-term deferred income tax liabilities $ (11,362) $ (6,983) |
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 January 3, 2021, December 29, 2019, and December 30, 2018 was as follows: Year ended January 3, 2021 December 29, 2019 December 30, 2018 Statutory federal income tax provision (benefit) $ (4,865) $ (9,249) $ 2,089 State income taxes, net of federal benefit (726) (1,655) 325 Employment tax credits (2,585) (2,938) (3,059) Change in valuation allowances 13,138 — — Non-deductible expenses 214 1,374 415 Stock-based compensation 525 308 (53) Rate change 312 — — Miscellaneous 281 37 126 Provision (benefit) for income taxes $ 6,294 $ (12,123) $ (157) |
Stock-based Compensation Stock-
Stock-based Compensation Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of all non-vested common share activity for the year ended January 3, 2021 was as follows: Shares Weighted Average Grant Date Price Non-vested at December 29, 2019 790,823 $ 11.35 Granted 863,128 $ 5.42 Vested (416,253) $ 12.07 Forfeited (69,850) $ 6.24 Non-vested at January 3, 2021 1,167,848 $ 7.02 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were used in the Black-Scholes option-pricing model to determine the fair value of stock option awards at the grant date: 2020 Risk-free interest rate 0.21 % Expected term (in years) 4.5 Expected volatility 65.10 % Expected dividend yield — % Fair Value $ 3.65 Expected term represents the period that the stock option awards were expected to be outstanding. Given the Company has not issued stock options since 2010, it concluded that its stock option exercise history did not provide a reasonable basis upon which to estimate expected term and therefore used the simplified method to determine the expected term of this stock option grant. This method bases the expected term calculation on the average of the vesting term and the contractual term of the awards. The risk-free interest rate was based on the yield of constant maturity U.S. treasury bonds with a remaining term equal to the expected term of the awards. There was no |
Share-based Payment Arrangement, Option, Activity | A summary of all stock option activity for the year ended January 3, 2021 was as follows: Options Weighted Average Exercise Price Average Remaining Contractual Life Aggregate Intrinsic Value (1) Options outstanding at December 29, 2019 — Granted 1,075,000 $ 7.12 Forfeited (25,000) $ 7.12 Options Outstanding at January 3, 2021 1,050,000 $ 7.12 6.6 $ — Vested or expected to vest at January 3, 2021 1,050,000 $ 7.12 6.6 $ — Options exercisable at January 3, 2021 — (1) The aggregate intrinsic value is calculated using the difference between the market price of the Company's common stock at January 3, 2021 of $6.28 and the grant date exercise price for only those awards that have a grant date exercise price that is less than the market price of the Company's common stock at January 3, 2021. There were no awards having a grant date exercise price less than the market price of the Company's common stock at January 3, 2021. |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | A summary of all RSU activity for the year ended January 3, 2021 was as follows: Units Non-vested at December 29, 2019 57,942 Vested (20,486) Non-vested at January 3, 2021 37,456 |
Net Income (Loss) Per Share E_2
Net Income (Loss) Per Share Earnings per Share Table (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
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 (loss) per share: Year ended January 3, 2021 December 29, 2019 December 30, 2018 Basic net income (loss) per share: Net income (loss) $ (29,463) $ (31,919) $ 10,104 Less: Income attributable to non-vested shares — — (178) Less: Income attributable to preferred stock — — (2,071) Net income (loss) available to common stockholders $ (29,463) $ (31,919) $ 7,855 Weighted average common shares outstanding 50,751,185 43,421,715 35,715,372 Basic net income (loss) per share $ (0.58) $ (0.74) $ 0.22 Diluted net income (loss) per share: Net income (loss) $ (29,463) $ (31,919) $ 10,104 Weighted average common shares outstanding 50,751,185 43,421,715 35,715,372 Dilutive effect of preferred stock and non-vested shares — — 9,604,599 Dilutive weighted average common shares outstanding 50,751,185 43,421,715 45,319,971 Diluted net income (loss) per share (1) $ (0.58) $ (0.74) $ 0.22 Shares excluded from diluted net income (loss) per share computations (2) 9,615,435 11,484,159 — (1) Diluted net income (loss) per share is equal to basic net income (loss) 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 (loss) per share causing basic net income (loss) per share to be lower than diluted net income (loss) per share calculated under the treasury-stock method. (2) Shares issuable upon conversion of preferred stock and non-vested shares were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. |
Selected Quarterly Financial _2
Selected Quarterly Financial and Earnings Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Selected Quarterly Financial Data (Unaudited) Year Ended January 3, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Restaurant sales $ 351,518 (2) $ 368,418 (2) $ 407,036 $ 420,530 Income (loss) from operations (22,047) (3) 14,302 (3) 10,228 (3) 1,631 (3) Net income (loss) (22,209) 7,842 3,531 (18,627) (4) Basic and diluted net loss per share (0.44) 0.13 0.06 (0.37) Restaurants open at end of period 1,093 1,092 1,088 1,074 Year Ended December 29, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Restaurant sales $ 290,789 (5) $ 365,674 (5) $ 398,414 $ 397,639 Income (loss) from operations (5,168) (5)(6) 2,103 (5)(6) (1,115) (5)(6) (4,563) (5)(6) Net loss (11,469) (3,732) (6,812) (9,906) Basic and diluted net loss per share (0.32) (0.09) (0.15) (0.20) Restaurants open at end of period 845 1,081 1,088 1,101 (1) The fourth quarter of 2020 includes an extra week (see footnote 1) (2) In the first and second quarters of 2020, the Company's sales were impacted by the onset of the COVID-19 pandemic. Restaurant sales during the last two weeks of March and first two weeks of April showed approximately 30% declines in comparable sales. The declines began easing mid-April and throughout May, with a return to positive changes in comparable restaurant sales for the month of June. (3) In fiscal 2020, the Company recorded impairment and other lease charges of $2.9 million in the first quarter, $2.9 million in the second quarter, $2.0 million in the third quarter and $5.0 million in the fourth quarter. The fourth quarter of 2020 included a $2.0 million charge related to the ROFR termination (See Note 5). (4) In the fourth quarter of 2020, the Company recorded a valuation allowance on certain of its tax credits of $12.9 million (see Note 10). (5) In fiscal 2019, the Company acquired 233 restaurants in the second quarter in two separate transactions and one restaurant in the third quarter (See Note 2). In fiscal 2019 the Company recorded acquisition and integration costs related to the 2019 acquisitions of $2.6 million in the first quarter, $2.6 million in the second quarter, $2.8 million in the third quarter and $2.8 million in the fourth quarter (See Note 2). (6) In fiscal 2019, the Company recorded impairment and other lease charges of $0.9 million in the first quarter, $0.4 million in the second quarter, $0.5 million in the third quarter and $1.8 million in the fourth quarter (See Note 5). |
Basis Of Presentation Narrative
Basis Of Presentation Narrative (Details) | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2020restaurant | Jun. 28, 2020restaurant | Jan. 03, 2021USD ($)restaurantshares | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Sep. 27, 2020 | Mar. 29, 2020 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Entity Information [Line Items] | ||||||||||
Pre-Opening Costs | $ 200,000 | $ 1,400,000 | $ 600,000 | |||||||
Restaurants Acquired | restaurant | 233 | 44 | ||||||||
Number of Restaurants | 1,092 | 1,074 | 1,101 | 1,088 | 1,093 | 1,088 | 1,081 | 845 | ||
Number of states | 23 | |||||||||
Franchise Term Renewal Period | 20 years | |||||||||
Franchise Agreement, Term | 20 years | |||||||||
Asset Impairment Charges | $ 8,200,000 | $ 1,700,000 | 2,700,000 | |||||||
Cash, FDIC Insured Amount | $ 250,000 | |||||||||
Number of Reportable Segments | 1 | |||||||||
Operating Lease, Liability | $ 851,784,000 | |||||||||
Operating right-of-use assets, net | $ 799,962,000 | 811,016,000 | ||||||||
Operating leases, term | 20 years | |||||||||
Marketing and Advertising Expense | $ 60,735,000 | $ 58,689,000 | 48,340,000 | |||||||
COVID-19 | ||||||||||
Entity Information [Line Items] | ||||||||||
Number Of Restaurants Temporarily Closed | restaurant | 46 | |||||||||
Number Of Restaurants Temporarily Closed Which Have Reopened | restaurant | 44 | |||||||||
Burger King Corporate [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Number of Restaurants | 1,009 | |||||||||
Popeyes Franchises [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Number of Restaurants | 65 | |||||||||
Number of states | 7 | |||||||||
Right of First Refusal, Number of States | shares | 2 | |||||||||
Accounting Standards Update 2016-02 [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Cumulative-effect adjustment from new accounting principal adoption | 7,504,000 | |||||||||
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Cumulative-effect adjustment from new accounting principal adoption | $ 7,504,000 | |||||||||
Senior Secured Second Lien Notes due 2022 [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Interest Rate | 8.00% |
Basis Of Presentation Property
Basis Of Presentation Property and Equipment (Details) | 12 Months Ended |
Jan. 03, 2021 | |
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) | Jan. 15, 2019 | Jan. 15, 2018 | Jan. 03, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Award Vesting Period | 3 years | ||
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 |
Acquisition Narrative (Details)
Acquisition Narrative (Details) $ / shares in Units, $ in Thousands | Aug. 20, 2019USD ($)restaurant | Jun. 11, 2019USD ($)restaurant | Apr. 30, 2019USD ($)restaurant$ / sharesshares | Feb. 13, 2018USD ($)restaurant | Jan. 03, 2021USD ($) | Sep. 27, 2020USD ($) | Jun. 28, 2020USD ($)restaurant | Mar. 29, 2020USD ($) | Jan. 03, 2021USD ($)restaurant | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||||
Revenue | $ 1,547,502 | $ 1,462,765 | $ 1,179,307 | ||||||||
Restaurants Acquired | restaurant | 233 | 44 | |||||||||
Acquisition of restaurants, net of cash acquired | $ 0 | (130,646) | (38,102) | ||||||||
Business Combination, Bargain Purchase, Gain Recognized, Amount | 0 | 0 | 230 | ||||||||
Deferred income taxes | $ 47,200 | 47,200 | 500 | ||||||||
Acquisition-related costs | 2,800 | $ 2,800 | $ 2,600 | $ 2,600 | |||||||
Business Combination, Retirement of Debt, Net of Cash Acquired | $ 113,800 | ||||||||||
Business Combination, Share Restriction | 2 years | ||||||||||
Business Combination Purchase Price Allocation, Common Stock | $ 145,300 | ||||||||||
Business Combination Purchase Price Allocation, Common Stock, Per Share | $ / shares | $ 9.81 | ||||||||||
Business Acquisition, Pro Forma General And Administrative Expenses | 1,400 | ||||||||||
2019 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Acquisition, Pro Forma, General and Administrative Exepnses | $ 4,100 | 1,400 | |||||||||
Restaurants Acquired | restaurant | 234 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 29 | $ 29 | |||||||||
Cambridge Holdings, LLC [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Restaurants Acquired | restaurant | 132 | ||||||||||
Business Combination, Construction Of Restaurants Acquired | restaurant | 33 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 44,292 | $ 44,292 | |||||||||
2018 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 44 | ||||||||||
Acquisition of restaurants, net of cash acquired | $ (38,102) | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ 346 | $ 346 | |||||||||
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 12 days | ||||||||||
Above Market Leases [Member] | 2018 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 18 years 3 months 18 days | ||||||||||
Franchise Rights [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Bargain Purchase, Gain Recognized, Amount | $ 300 | ||||||||||
Franchise Rights [Member] | 2019 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 32 years 8 months 12 days | ||||||||||
Franchise Rights [Member] | 2018 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 31 years 7 months 6 days | ||||||||||
Common Stock [Member] | Cambridge Holdings, LLC [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 7,400,000 | ||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | shares | 7,500,000 | ||||||||||
Series C Preferred Stock [Member] | Cambridge Holdings, LLC [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 10,000 | ||||||||||
NEW YORK | 2019 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 1 | 13 | 220 | 234 | |||||||
Acquisition of restaurants, net of cash acquired | $ (1,108) | $ (15,788) | $ (259,083) | $ (275,979) | |||||||
NEW YORK | 2018 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 1 | ||||||||||
Acquisition of restaurants, net of cash acquired | $ 0 | ||||||||||
Restaurant sales | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenue | 1,547,502 | 1,452,516 | 1,179,307 | ||||||||
Restaurant sales | 2019 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenue | 288,900 | 201,900 | |||||||||
Restaurant sales | 2018 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenue | 52,900 | 16,900 | |||||||||
Other revenue | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenue | $ 0 | 10,249 | $ 0 | ||||||||
Other Income | 2019 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenue | $ 10,200 |
Acquisition Table of Acquisitio
Acquisition Table of Acquisitions (Details) $ in Thousands | Aug. 20, 2019USD ($)restaurant | Jun. 11, 2019USD ($)restaurant | Apr. 30, 2019USD ($)restaurant | Oct. 02, 2018USD ($)restaurant | Sep. 05, 2018USD ($)restaurant | Aug. 21, 2018USD ($)restaurant | Feb. 13, 2018USD ($)restaurant | Jun. 28, 2020restaurant | Jan. 03, 2021USD ($)restaurant | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 233 | 44 | |||||||||
Acquisition of restaurants, net of cash acquired | $ | $ 0 | $ (130,646) | $ (38,102) | ||||||||
Gain on bargain purchase | $ | $ 0 | $ 0 | $ (230) | ||||||||
2019 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 234 | ||||||||||
2018 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 44 | ||||||||||
Acquisition of restaurants, net of cash acquired | $ | $ (38,102) | ||||||||||
NEW YORK | 2019 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 1 | 13 | 220 | 234 | |||||||
Acquisition of restaurants, net of cash acquired | $ | $ (1,108) | $ (15,788) | $ (259,083) | $ (275,979) | |||||||
NEW YORK | 2018 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 1 | ||||||||||
Acquisition of restaurants, net of cash acquired | $ | $ 0 | ||||||||||
MICHIGAN | 2018 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 2 | ||||||||||
Acquisition of restaurants, net of cash acquired | $ | $ (1,666) | ||||||||||
WEST VIRGINIA | 2018 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 31 | ||||||||||
Acquisition of restaurants, net of cash acquired | $ | $ (25,930) | ||||||||||
South Carolina And Georgia | 2018 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 10 | ||||||||||
Acquisition of restaurants, net of cash acquired | $ | $ (10,506) | ||||||||||
Franchise Rights [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gain on bargain purchase | $ | (300) | ||||||||||
Business Combination, Consideration Transferred | $ | $ 200 | ||||||||||
Burger King Corporate [Member] | Cambridge Holdings, LLC [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 165 | ||||||||||
Popeyes Franchises [Member] | Cambridge Holdings, LLC [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | restaurant | 55 |
Acquisition Purchase Price Allo
Acquisition Purchase Price Allocation, Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Business Acquisition [Line Items] | |||
Goodwill, Acquired During Period | $ 0 | $ 84,150 | |
Goodwill | 122,619 | $ 122,619 | $ 38,469 |
2019 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Inventory | 158 | ||
Restaurant equipment | 743 | ||
Restaurant equipment - subject to capital lease | 150 | ||
Right-of-use assets | 9,515 | ||
Leasehold improvements | 6,205 | ||
Franchise fees | 394 | ||
Franchise rights | 9,809 | ||
Deferred taxes | (29) | ||
Goodwill | 86 | ||
Finance lease obligations for restaurant equipment | (185) | ||
Operating lease liabilities | (9,968) | ||
Accounts payable | (40) | ||
Net assets acquired | 16,896 | ||
Cambridge Holdings, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Inventory | 2,839 | ||
Prepaid expenses | 2,947 | ||
Other assets | 1,846 | ||
Land and building | 21,257 | ||
Restaurant equipment | 25,358 | ||
Restaurant equipment - subject to capital lease | 488 | ||
Right-of-use assets | 251,431 | ||
Leasehold improvements | 3,498 | ||
Franchise fees | 7,300 | ||
Franchise rights | 174,500 | ||
Deferred taxes | (44,292) | ||
Goodwill | 84,060 | ||
Finance lease obligations for restaurant equipment | (568) | ||
Operating lease liabilities | (255,897) | ||
Accounts payable | (8,014) | ||
Accrued payroll, related taxes and benefits | (3,133) | ||
Other liabilities | (4,537) | ||
Net assets acquired | 259,083 | ||
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) | ||
Goodwill | 1,677 | ||
Finance lease obligations for restaurant equipment | (49) | ||
Unfavorable leases | (624) | ||
Accounts payable | (9) | ||
Net assets acquired | $ 38,332 |
Acquisition Pro Forma Informati
Acquisition Pro Forma Information, Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
2019 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Restaurant sales | $ 1,568,533 | $ 1,518,841 |
Net income | $ (25,586) | $ 27,730 |
Basic and diluted net income (loss) per share | $ (0.59) | $ 0.60 |
2018 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Restaurant sales | $ 1,217,891 | |
Net income | $ 13,684 | |
Basic and diluted net income (loss) per share | $ 0.30 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Property and equipment [Line Items] | |||
Land | $ 8,301 | $ 8,800 | |
Owned buildings | 13,325 | 12,490 | |
Leasehold improvements | 424,685 | 413,543 | |
Equipment | 320,909 | 311,423 | |
Assets subject to capital leases | 16,663 | 17,132 | |
Propert and equipment, gross | 783,883 | 763,388 | |
Less accumulated depreciation and amortization | (434,328) | (377,810) | |
Property and equipment, net | 349,555 | 385,578 | |
Capital leases, accumulated depreciation | 16,000 | 15,200 | |
Depreciation expense | 81,727 | 74,674 | $ 58,468 |
Property and Equipment [Member] | |||
Property and equipment [Line Items] | |||
Depreciation expense | $ 64,400 | $ 60,800 | $ 49,300 |
Intangible Assets Goodwill Disc
Intangible Assets Goodwill Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 122,619 | $ 38,469 | |
Goodwill, Acquired During Period | 0 | 84,150 | |
Goodwill | 122,619 | 122,619 | $ 38,469 |
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Intangible Assets Franchise Rig
Intangible Assets Franchise Rights Disclosures (Details) - USD ($) | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Franchise Term Renewal Period | 20 years | ||
Expected Amortization, next fiscal year | $ 13,700,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 13,700,000 | ||
Expected Amortization, year three | 13,700,000 | ||
Expected Amortization, year four | 13,700,000 | ||
Expected Amortization, year five | 13,700,000 | ||
Franchise rights impairment | 0 | $ 0 | $ 0 |
Franchise Rights [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Net (Excluding Goodwill) | 348,941,000 | 175,897,000 | |
Finite-lived Intangible Assets Acquired | 184,309,000 | ||
Amortization expense | (14,344,000) | (11,265,000) | 7,400,000 |
Intangible Assets, Net (Excluding Goodwill) | $ 334,597,000 | $ 348,941,000 | $ 175,897,000 |
Intangible Assets Favorable and
Intangible Assets Favorable and Unfavorable Leases (Details) $ in Millions | Jan. 03, 2021USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Expected Amortization, next fiscal year | $ 13.7 |
Expected Amortization, year four | 13.7 |
Expected Amortization, year five | $ 13.7 |
Impairment Of Long-Lived Asse_3
Impairment Of Long-Lived Assets And Other Lease Charges (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2021USD ($)restaurant | Sep. 27, 2020USD ($) | Jun. 28, 2020USD ($) | Mar. 29, 2020USD ($) | Dec. 29, 2019USD ($) | Sep. 29, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Impairment and other lease charges | $ 5,000 | $ 2,000 | $ 2,900 | $ 2,900 | $ 1,800 | $ 500 | $ 400 | $ 900 | $ 12,778 | $ 3,564 | $ 3,685 |
Impairment charges | 8,200 | 1,700 | 2,700 | ||||||||
Sale Leaseback Transaction Current Period Loss Recognized | $ 800 | ||||||||||
Sale Leaseback Losses, number of restaurants | 4 | ||||||||||
Other lease charges | $ 4,600 | $ 1,900 | $ 200 | ||||||||
Asset impairment charges, number of restaurants | 15 | 7 | 6 | ||||||||
Write Off Of Defective Product | $ 1,900 | ||||||||||
Previously Impaired [Member] | |||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Impairment charges | $ 1,200 | $ 300 | 400 | ||||||||
Initial Impairments [Member] | |||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Impairment charges | 5,000 | $ 1,300 | $ 400 | ||||||||
First Right Of Refusal | |||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Impairment charges | $ 2,000 | ||||||||||
Other Lease Charges | |||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Asset impairment charges, number of restaurants | restaurant | 22 |
Other Liabilities, Long-Term (D
Other Liabilities, Long-Term (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Unusual or Infrequent Item, or Both [Line Items] | ||
Accrued Occupancy Costs | $ 2,394 | $ 8,523 |
Accrued workers' compensation and general liability claims | 5,499 | 5,370 |
Accrued Interest Rate Swap, Noncurrent | 6,062 | 0 |
Deferred compensation | 4,419 | 3,902 |
Deferred Federal Payroll Taxes, Noncurrent | 10,808 | 0 |
Other Accrued Liabilities, Noncurrent | 290 | 289 |
Other Liabilities, Noncurrent | 29,472 | $ 18,084 |
COVID-19 | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Deferred compensation | 10,800 | |
Deferred Liability, Noncurrent, CARES Act | $ 21,600 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | Sep. 27, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Sale leaseback transactions, number | twelve | twenty-seven | five | |
Proceeds from sale-leaseback transactions | $ 22,499 | $ 48,364 | $ 8,424 | |
Operating leases, term | 20 years | |||
Lessee, Finance Lease, Term of Contract | 8 years | |||
Amortization of deferred gains from sale leaseback transactions | $ 0 | $ 0 | $ 1,584 | |
COVID-19 | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Modification, Deferred Rent | 3,200 | $ 5,800 | ||
Sublease Income | $ 400 | |||
Lessee, Operating Lease, Modification, Deferred Rent, Expected To Be Repaid | $ 4,800 |
Leases - Minimum Rent Commitmen
Leases - Minimum Rent Commitments (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Leases [Abstract] | ||
January, 3, 2021 | $ 99,191 | |
January 2, 2022 | 98,850 | |
January, 1, 2023 | 98,005 | |
45655 | 96,853 | |
46019 | 94,613 | |
Thereafter | 877,149 | |
Total lease payments | 1,364,661 | |
Less: imputed interest | (512,877) | |
Present value of lease liabilities | 851,784 | |
Less: current portion | (41,815) | $ (40,805) |
Total long-term lease liabilities | 809,969 | 808,292 |
Finance Leases | ||
January, 3, 2021 | 583 | |
January 2, 2022 | 240 | |
January, 1, 2023 | 68 | |
45655 | 42 | |
46019 | 28 | |
Thereafter | 59 | |
Total lease payments | 1,020 | |
Less: imputed interest | (112) | |
Present value of lease liabilities | 908 | |
Less: current portion | (525) | |
Total long-term lease liabilities | $ 383 | $ 908 |
Leases - Cost (Details)
Leases - Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset, Amortization | $ 1,233 | $ 1,778 |
Finance Lease, Interest Expense | 130 | 256 |
Lease, Cost | 120,934 | 110,377 |
Restaurant Rent Expense [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Cost | 102,651 | 90,718 |
Variable Lease, Cost | 16,245 | 16,454 |
Sublease Income | (452) | (25) |
General and Administrative Expense [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Cost | 606 | 579 |
Other Restaurant Operating Expenses [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Variable Lease, Cost | $ 521 | $ 617 |
Leases - Rent Expense (Details)
Leases - Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Operating Leased Assets [Line Items] | |||
Minimum rent on real property | $ 72,206 | ||
Contingent rent on real property | 9,203 | ||
Restaurant rent expense | $ 118,444 | $ 107,147 | 81,409 |
Administrative and equipment rent | 81,682 | ||
Rent expense on operating leases | 81,682 | ||
General and Administrative Expense [Member] | |||
Operating Leased Assets [Line Items] | |||
Administrative and equipment rent | 273 | ||
Rent expense on operating leases | $ 273 |
Leases - Balance Sheet (Details
Leases - Balance Sheet (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Leases [Abstract] | ||
Operating right-of-use assets, net | $ 799,962 | $ 811,016 |
Finance Lease, Right-of-Use Asset | 644 | 1,882 |
Leased Assets | 800,606 | 812,898 |
Less: current portion | 41,815 | 40,805 |
Long-term Debt and Lease Obligation, Including Current Maturities | 525 | 1,616 |
Operating Lease, Liability, Noncurrent | 809,969 | 808,292 |
Finance Lease, Liability, Noncurrent | 383 | 908 |
Lease Liabilities | $ 852,692 | $ 851,621 |
Operating Lease, Weighted Average Remaining Lease Term | 14 years | 14 years 6 months |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 4 months 24 days | 2 years |
Operating Lease, Weighted Average Discount Rate, Percent | 7.00% | 7.00% |
Finance Lease, Weighted Average Discount Rate, Percent | 8.90% | 7.90% |
Leases - Cash Flow (Details)
Leases - Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Leases [Abstract] | ||
Sale and Leaseback Transaction, Gain (Loss), Net | $ 189 | $ 636 |
Operating Lease, Payments | 98,561 | 87,220 |
Finance Lease, Interest Payment on Liability | 130 | 256 |
Finance Lease, Principal Payments | 1,617 | 2,170 |
Lease Assets and Liabilities Resulting From Lease Modifications | $ 50,978 | $ 76,878 |
Long-Term Debt Long Term Debt (
Long-Term Debt Long Term Debt (Details) - USD ($) | Jan. 03, 2021 | Dec. 29, 2019 |
Debt Instrument [Line Items] | ||
Finance lease liabilities | $ 908,000 | $ 2,524,000 |
Long-term Debt | 494,158,000 | 471,149,000 |
Less: current portion of long-term debt and finance lease liabilities | (5,525,000) | (5,866,000) |
Less: unamortized debt issuance costs | 7,777,000 | 7,768,000 |
Less: original issue discount | (5,161,000) | (1,950,000) |
Total Long-term Debt | 475,695,000 | 455,565,000 |
Term Loan B Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 419,375,000 | 422,875,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 0 | 45,750,000 |
Term Loan B-1 Facility | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | $ 73,875,000 | $ 0 |
Long-Term Debt Senior Secured S
Long-Term Debt Senior Secured Second Lien Notes (Details) | Apr. 30, 2026USD ($) | Jun. 28, 2020 | Jun. 23, 2020USD ($) | Mar. 25, 2020USD ($) | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Apr. 08, 2020USD ($) | Mar. 29, 2020 | Dec. 13, 2019 | Apr. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||||
Letters of Credit Outstanding, Amount | $ 9,700,000 | ||||||||||
Line of Credit Facility, Unused Borrowing Capacity | 136,100,000 | ||||||||||
Proceeds from issuance of senior secured second lien notes | 71,250,000 | $ 422,875,000 | $ 0 | ||||||||
Debt Issuance Costs, Net | $ 7,777,000 | 7,768,000 | |||||||||
Senior Secured Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 550,000,000 | ||||||||||
Debt, Total Net Leverage Ratio | 4.75 | ||||||||||
Debt, First Lien Leverage Ratio | 5.75 | ||||||||||
Interest Rate | 0.915% | ||||||||||
Letter of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Letters of Credit Outstanding, Amount | $ 12,000,000 | ||||||||||
Debt, Percentage Borrowing Threshold | 35.00% | ||||||||||
First Amendment, Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Letters of Credit Outstanding, Amount | $ 115,000,000 | ||||||||||
Line of Credit Facility, Increase (Decrease), Net | 10,000,000 | ||||||||||
Term Loan B Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 425,000,000 | ||||||||||
Repayment of Debt Quarterly Payment | 1,300,000 | ||||||||||
Long-term Line of Credit | 419,375,000 | 422,875,000 | |||||||||
Term Loan B Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||||||||
Term Loan B Facility [Member] | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||||
Standby Letters of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 35,000,000 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000,000 | ||||||||||
Debt, Percent of Aggregate Amount of Borrowing | 35.00% | ||||||||||
Long-term Line of Credit | 0 | 45,750,000 | |||||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||||||||
Revolving Credit Facility [Member] | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||||||||
Second Amendment, Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 130,400,000 | ||||||||||
Line of Credit Facility, Increase of Borrowing Capacity | 15,400,000 | ||||||||||
Line of Credit Facility, Revolving Committed Amount | $ 115,000,000 | ||||||||||
Payments of Financing Costs | 100,000 | ||||||||||
Second Amendment, Revolving Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest Rate | 3.50% | ||||||||||
Second Amendment, Revolving Credit Facility | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest Rate | 2.50% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 179 Days | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Applicable Margin, Period After Effect Date | 179 days | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 179 Days | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest Rate | 3.50% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 179 Days | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest Rate | 2.50% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 179 Through 269 Days | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Applicable Margin, Period After Effect Date | 180 days | ||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.125% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 269 Days | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Applicable Margin, Period After Effect Date | 269 days | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 269 Days | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest Rate | 4.25% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 269 Days | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest Rate | 3.25% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 269 Through 364 Days | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Applicable Margin, Period After Effect Date | 270 days | ||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 364 Days | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Applicable Margin, Period After Effect Date | 364 days | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 364 Days | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest Rate | 4.50% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 364 Days | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest Rate | 3.50% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 365 Plus Days | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Applicable Margin, Period After Effect Date | 365 days | ||||||||||
Line of Credit Facility, Commitment Fee Percentage | 1.00% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 365 Plus Days | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest Rate | 4.75% | ||||||||||
Second Amendment, Revolving Credit Facility | Second Amendment Effective, 365 Plus Days | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest Rate | 3.75% | ||||||||||
Third Amendment, Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 145,800,000 | ||||||||||
Line of Credit Facility, Increase of Borrowing Capacity | $ 15,400,000 | ||||||||||
Term Loan B-1 Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Additional Borrowing Capacity | $ 75,000,000 | ||||||||||
Debt Instrument, Annual Amortization Rate, Percentage Of Principal Amount | 1.00% | ||||||||||
Long-term Line of Credit | $ 73,875,000 | $ 0 | |||||||||
Term Loan B-1 Facility | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.25% | 6.25% | |||||||||
Term Loan B-1 Facility | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.25% | 5.25% | |||||||||
Debt Instrument, Interest Rate Floor | 1.00% | ||||||||||
Term Loan B And B-1 Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt, Number of Payments | 21 | ||||||||||
Scenario, Forecast | Term Loan B Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of Debt | $ 467,000,000 |
Long-Term Debt Senior Credit Fa
Long-Term Debt Senior Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Proceeds from issuance of senior secured second lien notes | $ 71,250 | $ 422,875 | $ 0 | |
Loss on extinguishment of debt | 0 | $ (7,443) | 0 | |
Letters of Credit Outstanding, Amount | 9,700 | |||
Line of Credit Facility, Unused Borrowing Capacity | $ 136,100 | |||
Debt, Weighted Average Interest Rate | 4.60% | 6.10% | 7.90% | |
Interest Expense, Debt | $ 27,200 | $ 27,800 | $ 23,500 | |
Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 12,000 | |||
Debt, Percentage Borrowing Threshold | 35.00% | |||
Senior Secured Second Lien Notes due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 8.00% |
Long-Term Debt Future Maturitie
Long-Term Debt Future Maturities (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Debt Disclosure [Abstract] | ||
Next Twelve Months | $ 5,525 | |
Year Two | 5,218 | |
Year Three | 5,055 | |
Year Four | 5,034 | |
Year Five | 5,023 | |
Thereafter | 468,303 | |
Long-term Debt | $ 494,158 | $ 471,149 |
Long-Term Debt - Interest Rate
Long-Term Debt - Interest Rate Swap (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Jan. 03, 2021 | Mar. 29, 2020 | Dec. 29, 2019 | |
Debt Instrument [Line Items] | ||||
Derivative Asset, Notional Amount | $ 220,000,000 | |||
Payments for Derivative Instrument, Financing Activities | 1,000,000 | |||
Accrued Interest Rate Swap, Noncurrent | 6,062,000 | $ 0 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 1,700,000 | |||
Term Loan B Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Interest Rate Swap Debt Fix | $ 0.50 | |||
Senior Secured Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 0.915% |
Other Income (Details)
Other Income (Details) $ in Thousands | 12 Months Ended | ||||||||
Jan. 03, 2021USD ($)restauranttransaction | Dec. 29, 2019USD ($)restaurant | Dec. 30, 2018USD ($) | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |||||||||
Other Operating Income (Expense), Net | $ 1,271 | $ 1,911 | $ 424 | ||||||
Proceeds from Legal Settlements | 1,900 | ||||||||
Sale and Leaseback Transaction, Gain (Loss), Net | (189) | $ (636) | |||||||
Properties damaged in fire | restaurant | 2 | ||||||||
Property, Plant and Equipment, Disposals | $ 1,000 | $ 800 | |||||||
Number of Restaurants | 1,074 | 1,101 | 1,088 | 1,092 | 1,093 | 1,088 | 1,081 | 845 | |
Gain on insurance recoveries | $ 2,100 | $ 200 | $ 400 | ||||||
Number Of Restaurants Subject To Insurance Recovery | restaurant | 4 | 2 | |||||||
Number Of Sale-leaseback Transactions In Gain Position | transaction | 12 |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 0 | $ (260) | $ 0 |
State | 268 | 119 | 326 |
Current Income Tax Expense (Benefit) | 268 | (141) | 326 |
Federal | (6,039) | (9,768) | (598) |
State | (1,073) | (2,214) | 115 |
Deferred | (7,112) | (11,982) | (483) |
Increase in valuation allowance | 13,138 | 0 | 0 |
Provision (benefit) for income taxes | $ 6,294 | $ (12,123) | $ (157) |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Interest Expense | $ 0 | $ 2,558 |
Deferred Tax Assets, Operating Lease Liabilities | 219,096 | 218,503 |
Postretirement benefit expenses | 853 | 944 |
Stock-based compensation expense | 1,323 | 1,274 |
Federal net operating loss carryforwards | 28,880 | 30,588 |
State net operating loss carryforwards | 6,032 | 5,388 |
Tax credit carryforwards | 35,650 | 32,378 |
Accrued vacation benefits | 2,684 | 2,440 |
Accrued workers compensation | 1,841 | 0 |
Accumulated other comprehensive income-postretirement benefits | (474) | (280) |
Deferred Tax Liabilities, Other | (1,172) | (252) |
Other | 4,345 | 4,690 |
Deferred Tax Assets, Gross, Total | 300,704 | 298,763 |
Less: Valuation allowance | (13,138) | 0 |
Net deferred income tax assets | 287,566 | 298,763 |
Deferred Tax Liabilities, Operating Right-of-use Assets | (205,897) | (208,804) |
Property and equipment depreciation | (26,056) | (29,685) |
Franchise rights | (65,329) | (66,725) |
Deferred Tax Liabilities, Gross | (298,928) | (305,746) |
Carrying value of net deferred income tax assets | $ (11,362) | $ (6,983) |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Tax Contingency [Line Items] | |||
Federal operating loss carryforwards | $ 136,700,000 | ||
Miscellaneous | 281,000 | $ 37,000 | $ 126,000 |
Unrecognized Tax Benefits | 0 | 0 | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0 | $ 0 | |
State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Federal operating loss carryforwards | $ 7,600,000 |
Income Taxes Effective Rate Rec
Income Taxes Effective Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 03, 2021 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Statutory federal income tax provision (benefit) | $ (4,865) | $ (9,249) | $ 2,089 | |
State income taxes (benefit), net of federal provision (benefit) | (726) | (1,655) | 325 | |
Employment tax credits | (2,585) | (2,938) | (3,059) | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 12,900 | 13,138 | 0 | 0 |
Non-deductible expenses | 214 | 1,374 | 415 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | 525 | 308 | (53) | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 312 | 0 | 0 | |
Miscellaneous | 281 | 37 | 126 | |
Provision (benefit) for income taxes | $ 6,294 | $ (12,123) | $ (157) |
Stock-based Compensation Stoc_2
Stock-based Compensation Stock-Based Compensation Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 16, 2019 | Jan. 15, 2019 | Jan. 15, 2018 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Award Vesting Period | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 10,000 | |||||
Stock-based compensation | $ 5,223 | $ 5,753 | $ 5,812 | |||
Nonvested stock-based compensation expense | $ 7,700 | |||||
Remaining weighted average vesting period | 4 years | |||||
Grants in Period | 863,128 | |||||
Granted (in dollars per share) | $ 7.12 | |||||
Granted (in shares) | 1,075,000 | |||||
Share price (in dollars per share) | $ 6.28 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 416,253 | |||||
Management [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock Awards Issued During Period | 417,500 | 350,000 | ||||
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 | 47,470 | 30,192 | ||||
Stock Award Vesting Period | 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 | 887,171 | |||||
Restricted Stock [Member] | Certain Employees and Officers | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 790,000 | |||||
Restricted Stock [Member] | Outside Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 73,128 | |||||
Non-Qualified Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 739,340 | |||||
Incentive Stock Options (ISOs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 335,660 | |||||
Share-based Payment Arrangement, Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price (in dollars per share) | $ 2.92 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 20,486 |
Stock-based Compensation Summar
Stock-based Compensation Summary of Stock Activity (Details) | 12 Months Ended |
Jan. 03, 2021$ / 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 | 790,823 |
Nonvested shares, Weighted Average Grant Date Price at beginning of period | $ / shares | $ 11.35 |
Grants in Period | shares | 863,128 |
Grants in Period, Weighted Average Grant Date Price | $ / shares | $ 5.42 |
Vested | shares | (416,253) |
Vested, Weighted Average Grant Date Price | $ / shares | $ 12.07 |
Forfeited | shares | (69,850) |
Forfeited, Weighed Average Grant Date Price | $ / shares | $ 6.24 |
Nonvested shares at end of period | shares | 1,167,848 |
Nonvested shares, Weighted Average Grant Date Price at end of period | $ / shares | $ 7.02 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value Assumptions (Details) - Share-based Payment Arrangement, Option | 12 Months Ended |
Jan. 03, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 0.21% |
Expected term (in years) | 4 years 6 months |
Expected volatility | 65.10% |
Expected dividend yield | 0.00% |
Fair Value | $ 3.65 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jan. 03, 2021USD ($)$ / sharesshares | |
Options | |
Beginning balance (in shares) | 0 |
Granted (in shares) | 1,075,000 |
Forfeited (in shares) | (25,000) |
Ending balance (in shares) | 1,050,000 |
Options, Vested or expected to vest (in shares) | 1,050,000 |
Options, Options exercisable (in shares) | 0 |
Weighted Average Exercise Price | |
Granted (in dollars per share) | $ / shares | $ 7.12 |
Forfeited (in dollars per share) | $ / shares | 7.12 |
Options Outstanding (in dollars per share) | $ / shares | 7.12 |
Vested or expected to vest (in dollars per share) | $ / shares | $ 7.12 |
Average Remaining Contractual Life | |
Options Outstanding at January 3, 2021 | 6 years 7 months 6 days |
Vested or expected to vest at January 3, 2021 | 6 years 7 months 6 days |
Aggregate Intrinsic Value | |
Options Outstanding at January 3, 2021 | $ | $ 0 |
Vested or expected to vest at January 3, 2021 | $ | $ 0 |
Share price (in dollars per share) | $ / shares | $ 6.28 |
Stock-Based Compensation Summ_2
Stock-Based Compensation Summary of RSU Activity (Details) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Jan. 03, 2021shares | |
Options | |
Non-vested at December 29, 2019 | 57,942 |
Vested | (20,486) |
Non-vested at September 27, 2020 | 37,456 |
Stockholder's Equity - Preferre
Stockholder's Equity - Preferred Stock (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Jan. 03, 2021USD ($)$ / sharesshares | Dec. 29, 2019USD ($)$ / sharesshares | Dec. 29, 2013 | Sep. 27, 2020shares | Aug. 02, 2019shares | |
Class of Stock [Line Items] | |||||
Preferred Stock, Shares Issued | 100 | 100 | |||
Board of directors, number of members | 2 | ||||
Minimum [Member] | |||||
Class of Stock [Line Items] | |||||
Board of directors, number of members | 1 | ||||
Maximum [Member] | |||||
Class of Stock [Line Items] | |||||
Board of directors, number of members | 2 | ||||
Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Repurchased During Period, Shares | 1,534,304 | 553,112 | |||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 6.52 | $ 7.26 | |||
Stock Repurchased During Period, Value | $ | $ 10 | $ 4 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 11 | ||||
Series B Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Outstanding Shares | 7.50% | ||||
Preferred Stock, Shares Issued | 100 | ||||
Series C Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred Units, Issued | 10,000 | ||||
Common Stock [Member] | Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 25,000,000 | ||||
BKC [Member] | Series B Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Outstanding Shares | 11.50% | ||||
Cambridge Holdings, LLC [Member] | |||||
Class of Stock [Line Items] | |||||
Convertible Preferred Stock, Shares Issued upon Conversion | 7,500,000 | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 23.90% | ||||
2016 Stock Incentive Plan [Member] | |||||
Class of Stock [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 887,171 |
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 | |||||||||
Jan. 03, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income (loss) | $ (18,627) | $ 3,531 | $ 7,842 | $ (22,209) | $ (9,906) | $ (6,812) | $ (3,732) | $ (11,469) | $ (29,463) | $ (31,919) | $ 10,104 |
Net income available to common stockholders | $ (29,463) | $ (31,919) | $ 7,855 | ||||||||
Basic weighted average common shares outstanding | 50,751,185 | 43,421,715 | 35,715,372 | ||||||||
Basic and diluted net income (loss) per share | $ (0.37) | $ 0.06 | $ 0.13 | $ (0.44) | $ (0.20) | $ (0.15) | $ (0.09) | $ (0.32) | $ (0.58) | $ (0.74) | $ 0.22 |
Net income (loss) | $ (18,627) | $ 3,531 | $ 7,842 | $ (22,209) | $ (9,906) | $ (6,812) | $ (3,732) | $ (11,469) | $ (29,463) | $ (31,919) | $ 10,104 |
Basic weighted average common shares outstanding | 50,751,185 | 43,421,715 | 35,715,372 | ||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 9,604,599 | ||||||||
Diluted weighted average common shares outstanding | 50,751,185 | 43,421,715 | 45,319,971 | ||||||||
Basic and diluted net income (loss) per share | $ (0.37) | $ 0.06 | $ 0.13 | $ (0.44) | $ (0.20) | $ (0.15) | $ (0.09) | $ (0.32) | $ (0.58) | $ (0.74) | $ 0.22 |
Earnings Per Share, Diluted | $ (0.58) | $ (0.74) | $ 0.22 | ||||||||
Shares excluded from diluted net income (loss) per share computations (2) | 9,615,435 | 11,484,159 | 0 | ||||||||
Restricted Stock [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Less: income attributable to participating securities | $ 0 | $ 0 | $ (178) | ||||||||
Convertible Preferred Stock | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Less: income attributable to participating securities | $ 0 | $ 0 | $ (2,071) |
Commitments And Contingencies L
Commitments And Contingencies Lease Guarantees (Details) $ in Millions | 12 Months Ended |
Jan. 03, 2021USD ($) | |
Guarantor Obligations [Line Items] | |
Maximum potential undiscounted rental payments | $ 13.6 |
Loss Contingency Accrual, Payments | $ 0 |
Property Lease Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Property Leases | 18 |
Closed Restaurants [Member] | |
Guarantor Obligations [Line Items] | |
Property Leases | 2 |
Related Parties (Details)
Related Parties (Details) $ in Thousands | Apr. 30, 2019USD ($)staterestaurant | Mar. 29, 2020USD ($) | Jan. 03, 2021USD ($)yrsharesRate | Dec. 29, 2019USD ($)shares | Dec. 30, 2018USD ($) | Jan. 01, 2017 |
Related Party Transaction [Line Items] | ||||||
Preferred Stock, Shares Issued | shares | 100 | 100 | ||||
Franchise Term | yr | 20 | |||||
Board of directors, number of members | 2 | |||||
Franchise Agreement, Term | 20 years | |||||
Restaurant rent expense | $ 118,444 | $ 107,147 | $ 81,409 | |||
Related Party Transaction, Accounts Payable | $ 27,596 | 45,780 | ||||
Franchise Agreement, Number Of States | state | 16 | |||||
Franchise Agreement, Number Of Additional States | state | 4 | |||||
Franchise Agreement, Remodeling Expense | $ 3,000 | |||||
Settlement, Approval of Restaurant Development | $ 1,900 | |||||
Related Party, Burger King Corporate [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Sale of Stock, Percentage of Ownership after Transaction | Rate | 15.20% | |||||
Related Party Transaction, Royalty Fee Rate | Rate | 4.50% | |||||
Royalty Expense | $ 67,200 | 62,000 | 50,500 | |||
Related Party Transaction, Advertising Fee Rate | Rate | 4.00% | |||||
Advertising Expense | $ 59,300 | $ 56,700 | 47,000 | |||
Leases, Number of Leased Restaurants | 232 | 248 | 244 | |||
Restaurant rent expense | $ 25,900 | $ 27,400 | $ 27,200 | |||
Related Party Transaction, Accounts Payable | 14,700 | $ 11,500 | ||||
Franchise Agreement, Number Of Restaurant To be Removed Additional | restaurant | 500 | |||||
Affiliated Entity [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Franchise Fees, Initial, Net | $ 50 | |||||
Popeyes Franchises [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Right Of First Refusal, Number Of Franchises | restaurant | 80 | |||||
Right of First Refusal, Term | 6 years | |||||
Property Leases Identical to BKC's Lease with Third Party [Member] | Affiliated Entity [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Leases, Number of Leased Restaurants | 101 | |||||
Series B Preferred Stock [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Preferred Stock, Shares Issued | shares | 100 | |||||
Popeyes Franchises [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Royalty Fee Rate | Rate | 5.00% | |||||
Right of First Refusal, Number of States | shares | 2 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 50.00% | ||
Defined Contribution Plan, Requisite Service Period, Hours of Service | 1,000 | ||
Defined Contribution Plan, Cost | $ 1,900 | $ 1,400 | $ 700 |
Deferred Compensation Arrangements, Interest Rate | 8.00% | ||
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 0 | ||
Deferred compensation | $ 4,419 | $ 3,902 | |
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 |
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 | |||||||||
Jan. 03, 2021USD ($)$ / shares | Sep. 27, 2020USD ($)$ / shares | Jun. 28, 2020USD ($)$ / shares | Mar. 29, 2020USD ($)$ / shares | Dec. 29, 2019USD ($)$ / shares | Sep. 29, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Mar. 31, 2019USD ($)$ / shares | Jan. 03, 2021USD ($)$ / shares | Dec. 29, 2019USD ($)$ / shares | Dec. 30, 2018USD ($)$ / shares | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Restaurant sales | $ 420,530 | $ 407,036 | $ 368,418 | $ 351,518 | $ 397,639 | $ 398,414 | $ 365,674 | $ 290,789 | |||
Operating income (loss) | 1,631 | 10,228 | 14,302 | (22,047) | (4,563) | (1,115) | 2,103 | (5,168) | $ 4,114 | $ (8,743) | $ 33,355 |
Net income (loss) | $ (18,627) | $ 3,531 | $ 7,842 | $ (22,209) | $ (9,906) | $ (6,812) | $ (3,732) | $ (11,469) | $ (29,463) | $ (31,919) | $ 10,104 |
Basic and diluted net income (loss) per share | $ / shares | $ (0.37) | $ 0.06 | $ 0.13 | $ (0.44) | $ (0.20) | $ (0.15) | $ (0.09) | $ (0.32) | $ (0.58) | $ (0.74) | $ 0.22 |
Restaurants at end of period | 1,074 | 1,088 | 1,092 | 1,093 | 1,101 | 1,088 | 1,081 | 845 | 1,074 | 1,101 |
Selected Quarterly Financial _4
Selected Quarterly Financial and Earnings Data (Unaudited) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2021USD ($) | Sep. 27, 2020USD ($) | Jun. 28, 2020USD ($)restaurant | Mar. 29, 2020USD ($) | Dec. 29, 2019USD ($) | Sep. 29, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jan. 03, 2021USD ($)restaurant | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Restaurants Acquired | restaurant | 233 | 44 | |||||||||
Acquisition-related costs | $ 2,800 | $ 2,800 | $ 2,600 | $ 2,600 | |||||||
Impairment and other lease charges | $ 5,000 | $ 2,000 | $ 2,900 | $ 2,900 | $ 1,800 | $ 500 | $ 400 | $ 900 | $ 12,778 | $ 3,564 | $ 3,685 |
Number of Restaurants | 1,074 | 1,088 | 1,092 | 1,093 | 1,101 | 1,088 | 1,081 | 845 | 1,074 | 1,101 | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 12,900 | $ 13,138 | $ 0 | 0 | |||||||
Impairment charges | $ 8,200 | $ 1,700 | $ 2,700 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Jan. 04, 2021USD ($)staterestaurant | Sep. 30, 2025restaurant | Sep. 30, 2024restaurant | Sep. 30, 2023restaurant | Sep. 30, 2022restaurant | Sep. 30, 2021restaurant |
Subsequent Event [Line Items] | ||||||
Area Development Agreement Cost | $ | $ 3 | |||||
Area Development Agreement, Number Of States | state | 16 | |||||
Area Development Agreement, Number Of States With Limited Counties | state | 4 | |||||
Area Development Agreement, Number Of Restaurants To Be Acquired | 500 | |||||
Area Development Agreement, Prepaid Franchise Fees | $ | $ 0.6 | |||||
Area Development Agreement, Restaurants To Be Opened, Built, And Operated | 50 | |||||
Area Development Agreement, Percentage Of New Restaurants To Be In Kentucky, Tennessee And Indiana | 80.00% | |||||
Scenario, Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Area Development Agreement, Restaurants To Be Opened, Built, And Operated | 12 | 12 | 12 | 10 | 4 |