Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 29, 2021 | Oct. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 29, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-18051 | |
Entity Registrant Name | DENNY’S CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3487402 | |
Entity Address, Address Line One | 203 East Main Street | |
Entity Address, City or Town | Spartanburg, | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29319-0001 | |
City Area Code | 864 | |
Local Phone Number | 597-8000 | |
Title of 12(b) Security | $.01 Par Value, Common Stock | |
Trading Symbol | DENN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,386,061 | |
Entity Central Index Key | 0000852772 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 29, 2021 | Dec. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 10,203 | $ 3,892 |
Investments | 2,082 | 2,272 |
Receivables, net | 16,903 | 21,349 |
Inventories | 1,230 | 1,181 |
Assets held for sale | 1,627 | 1,125 |
Prepaid and other current assets | 14,550 | 18,847 |
Total current assets | 46,595 | 48,666 |
Property, net of accumulated depreciation of $151,887 and $146,583, respectively | 81,897 | 86,154 |
Financing lease right-of-use assets, net of accumulated amortization of $11,217 and $9,907, respectively | 9,403 | 9,830 |
Operating lease right-of-use assets, net | 131,616 | 139,534 |
Goodwill | 36,884 | 36,884 |
Intangible assets, net | 50,559 | 51,559 |
Deferred financing costs, net | 3,123 | 2,414 |
Deferred income taxes, net | 18,069 | 23,210 |
Other noncurrent assets | 32,878 | 32,698 |
Total assets | 411,024 | 430,949 |
Current liabilities: | ||
Current finance lease liabilities | 2,016 | 1,839 |
Current operating lease liabilities | 15,907 | 16,856 |
Accounts payable | 15,152 | 12,021 |
Other current liabilities | 56,985 | 46,462 |
Total current liabilities | 90,060 | 77,178 |
Long-term liabilities: | ||
Long-term debt | 170,000 | 210,000 |
Noncurrent finance lease liabilities | 12,825 | 13,530 |
Noncurrent operating lease liabilities | 129,409 | 137,534 |
Liability for insurance claims, less current portion | 9,037 | 10,309 |
Other noncurrent liabilities | 89,330 | 112,844 |
Total long-term liabilities | 410,601 | 484,217 |
Total liabilities | 500,661 | 561,395 |
Shareholders' deficit | ||
Common stock $0.01 par value; 135,000 shares authorized; September 29, 2021: 64,200 shares issued and 63,795 outstanding; December 30, 2020: 63,962 shares issued and outstanding | 642 | 640 |
Paid-in capital | 132,436 | 123,833 |
Deficit | (159,896) | (194,514) |
Accumulated other comprehensive loss, net | (56,256) | (60,405) |
Treasury stock, at cost, 405 and 0 shares, respectively | (6,563) | 0 |
Total shareholders' deficit | (89,637) | (130,446) |
Total liabilities and shareholders' deficit | $ 411,024 | $ 430,949 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 29, 2021 | Dec. 30, 2020 |
Assets | ||
Accumulated depreciation | $ 151,887 | $ 146,583 |
Accumulated amortization | $ 11,217 | $ 9,907 |
Shareholders' deficit | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 135,000,000 | 135,000,000 |
Common stock, shares issued (in shares) | 64,200,000 | 63,962,000 |
Common stock, shares outstanding (in shares) | 63,795,000 | 63,962,000 |
Treasury stock, at cost, shares (in shares) | 405,000 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2021 | Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | |
Revenue: | ||||
Total operating revenue | $ 103,794 | $ 71,644 | $ 290,535 | $ 208,500 |
Costs of company restaurant sales, excluding depreciation and amortization: | ||||
Product costs | 11,430 | 7,106 | 31,149 | 21,541 |
Payroll and benefits | 17,404 | 11,925 | 47,339 | 37,070 |
Occupancy | 3,013 | 2,638 | 8,707 | 8,529 |
Other operating expenses | 6,722 | 5,701 | 19,351 | 15,954 |
Total costs of company restaurant sales | 38,569 | 27,370 | 106,546 | 83,094 |
Costs of franchise and license revenue, excluding depreciation and amortization | 27,469 | 24,073 | 79,962 | 68,487 |
General and administrative expenses | 16,497 | 13,694 | 50,992 | 34,589 |
Depreciation and amortization | 3,822 | 4,048 | 11,380 | 12,252 |
Operating (gains), losses and other charges, net | (215) | (781) | 204 | 2,319 |
Total operating costs and expenses, net | 86,142 | 68,404 | 249,084 | 200,741 |
Operating income | 17,652 | 3,240 | 41,451 | 7,759 |
Interest expense, net | 3,671 | 4,422 | 12,014 | 13,320 |
Other nonoperating expense (income), net | (2,368) | (8,477) | (16,165) | 3,851 |
Income (loss) before income taxes | 16,349 | 7,295 | 45,602 | (9,412) |
Provision for (benefit from) income taxes | 4,084 | 818 | 10,984 | (1,937) |
Net income (loss) | $ 12,265 | $ 6,477 | $ 34,618 | $ (7,475) |
Basic net income (loss) per share (in dollars per share) | $ 0.19 | $ 0.10 | $ 0.53 | $ (0.13) |
Diluted net income (loss) per share (in dollars per share) | $ 0.19 | $ 0.10 | $ 0.53 | $ (0.13) |
Basic weighted average shares outstanding (in shares) | 65,447 | 63,793 | 65,413 | 59,350 |
Diluted weighted average shares outstanding (in shares) | 65,829 | 64,027 | 65,814 | 59,350 |
Company restaurant sales | ||||
Revenue: | ||||
Total operating revenue | $ 46,470 | $ 27,849 | $ 127,611 | $ 85,268 |
Franchise and license revenue | ||||
Revenue: | ||||
Total operating revenue | $ 57,324 | $ 43,795 | $ 162,924 | $ 123,232 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2021 | Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 12,265 | $ 6,477 | $ 34,618 | $ (7,475) |
Other comprehensive income (loss), net of tax: | ||||
Minimum pension liability adjustment, net of tax of $10, $5, $31 and $17, respectively | 30 | 17 | 89 | 50 |
Changes in the fair value of cash flow derivatives, net of tax of $14, $151, $585 and $(12,416), respectively | 43 | 435 | 1,697 | (34,723) |
Reclassification of cash flow derivatives to interest expense, net of tax of $259, $121, $771 and $541, respectively | 751 | 350 | 2,239 | 1,556 |
Reclassification of loss related to dedesignation of derivatives to other nonoperating expense (income), net of tax of $0, $0, $0 and $1,892, respectively | 0 | 0 | 0 | 5,462 |
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net of tax of $0, $73, $42 and $142, respectively | 0 | 210 | 124 | 410 |
Other comprehensive income (loss) | 824 | 1,012 | 4,149 | (27,245) |
Total comprehensive income (loss) | $ 13,089 | $ 7,489 | $ 38,767 | $ (34,720) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2021 | Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect of minimum pension liability adjustment | $ 10 | $ 5 | $ 31 | $ 17 |
Changes in fair value of cash flow derivatives, tax | 14 | 151 | 585 | (12,416) |
Reclassification of cash flow derivatives to interest expense, tax | 259 | 121 | 771 | 541 |
Reclassification of loss related to dedesignation of derivatives to other nonoperating expense (income), tax | 0 | 0 | 0 | 1,892 |
Reclassification of unrealized losses related to derivatives to interest expense, tax | $ 0 | $ 73 | $ 42 | $ 142 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Paid-in Capital | Deficit | Accumulated Other Comprehensive Loss, Net |
Balance as of beginning of period (in shares) at Dec. 25, 2019 | 109,415 | |||||
Balance as of beginning of period at Dec. 25, 2019 | $ (138,064) | $ 1,094 | $ (519,780) | $ 603,980 | $ (189,398) | $ (33,960) |
Balance as of beginning of period, treasury stock (in shares) at Dec. 25, 2019 | (52,320) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (7,475) | (7,475) | ||||
Other comprehensive income | (27,245) | (27,245) | ||||
Issuance of common stock (in shares) | 8,000 | |||||
Issuance of common stock | 69,571 | $ 80 | 69,491 | |||
Share-based compensation on equity classified awards, net of withholding tax | (1,177) | (1,177) | ||||
Purchase of treasury stock (in shares) | (1,690) | |||||
Purchase of treasury stock | (34,193) | $ (34,193) | ||||
Issuance of common stock for share-based compensation (in shares) | 309 | |||||
Issuance of common stock for share-based compensation | 0 | $ 3 | (3) | |||
Exercise of common stock options (in shares) | 54 | |||||
Exercise of common stock options | 212 | $ 1 | 211 | |||
Balance as of end of period (in shares) at Sep. 23, 2020 | 117,778 | |||||
Balance as of end of period at Sep. 23, 2020 | (138,371) | $ 1,178 | $ (553,973) | 672,502 | (196,873) | (61,205) |
Balance as of end of period, treasury stock (in shares) at Sep. 23, 2020 | (54,010) | |||||
Balance as of beginning of period (in shares) at Jun. 24, 2020 | 109,719 | |||||
Balance as of beginning of period at Jun. 24, 2020 | (217,507) | $ 1,097 | $ (553,973) | 600,936 | (203,350) | (62,217) |
Balance as of beginning of period, treasury stock (in shares) at Jun. 24, 2020 | (54,010) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 6,477 | 6,477 | ||||
Other comprehensive income | 1,012 | 1,012 | ||||
Issuance of common stock (in shares) | 8,000 | |||||
Issuance of common stock | 69,571 | $ 80 | 69,491 | |||
Share-based compensation on equity classified awards, net of withholding tax | 1,930 | 1,930 | ||||
Issuance of common stock for share-based compensation (in shares) | 22 | |||||
Issuance of common stock for share-based compensation | 0 | |||||
Exercise of common stock options (in shares) | 37 | |||||
Exercise of common stock options | 146 | $ 1 | 145 | |||
Balance as of end of period (in shares) at Sep. 23, 2020 | 117,778 | |||||
Balance as of end of period at Sep. 23, 2020 | $ (138,371) | $ 1,178 | $ (553,973) | 672,502 | (196,873) | (61,205) |
Balance as of end of period, treasury stock (in shares) at Sep. 23, 2020 | (54,010) | |||||
Balance as of beginning of period (in shares) at Dec. 30, 2020 | 63,962 | 63,962 | ||||
Balance as of beginning of period at Dec. 30, 2020 | $ (130,446) | $ 640 | $ 0 | 123,833 | (194,514) | (60,405) |
Balance as of beginning of period, treasury stock (in shares) at Dec. 30, 2020 | 0 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 34,618 | 34,618 | ||||
Other comprehensive income | 4,149 | 4,149 | ||||
Share-based compensation on equity classified awards, net of withholding tax | 8,489 | 8,489 | ||||
Purchase of treasury stock (in shares) | (405) | |||||
Purchase of treasury stock | (6,563) | $ (6,563) | ||||
Issuance of common stock for share-based compensation (in shares) | 208 | |||||
Issuance of common stock for share-based compensation | 0 | $ 2 | (2) | |||
Exercise of common stock options (in shares) | 30 | |||||
Exercise of common stock options | $ 116 | 116 | ||||
Balance as of end of period (in shares) at Sep. 29, 2021 | 64,200 | 64,200 | ||||
Balance as of end of period at Sep. 29, 2021 | $ (89,637) | $ 642 | $ (6,563) | 132,436 | (159,896) | (56,256) |
Balance as of end of period, treasury stock (in shares) at Sep. 29, 2021 | (405) | (405) | ||||
Balance as of beginning of period (in shares) at Jun. 30, 2021 | 64,200 | |||||
Balance as of beginning of period at Jun. 30, 2021 | $ (99,423) | $ 642 | $ 0 | 129,176 | (172,161) | (57,080) |
Balance as of beginning of period, treasury stock (in shares) at Jun. 30, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 12,265 | 12,265 | ||||
Other comprehensive income | 824 | 824 | ||||
Share-based compensation on equity classified awards, net of withholding tax | $ 3,260 | 3,260 | ||||
Purchase of treasury stock (in shares) | (400) | (405) | ||||
Purchase of treasury stock | $ (6,563) | $ (6,563) | ||||
Balance as of end of period (in shares) at Sep. 29, 2021 | 64,200 | 64,200 | ||||
Balance as of end of period at Sep. 29, 2021 | $ (89,637) | $ 642 | $ (6,563) | $ 132,436 | $ (159,896) | $ (56,256) |
Balance as of end of period, treasury stock (in shares) at Sep. 29, 2021 | (405) | (405) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2021 | Sep. 23, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 34,618 | $ (7,475) |
Adjustments to reconcile net income (loss) to cash flows provided by (used in) operating activities: | ||
Depreciation and amortization | 11,380 | 12,252 |
Operating (gains), losses and other charges, net | 204 | 2,319 |
(Gains) losses and amortization on interest rate swap derivatives, net | (14,771) | 4,185 |
Amortization of deferred financing costs | 946 | 591 |
Gains on investments | (11) | (117) |
(Gains) losses on early termination of debt and leases | (52) | 43 |
Deferred income tax expense (benefit) | 3,713 | (2,505) |
Share-based compensation expense | 10,212 | 1,972 |
Changes in assets and liabilities: | ||
Receivables | 4,182 | 7,465 |
Inventories | (49) | 265 |
Prepaids and other current assets | 4,296 | (3,865) |
Other noncurrent assets | (1,021) | 474 |
Operating lease assets and liabilities | (1,150) | 1,231 |
Accounts payable | 6,360 | (8,540) |
Accrued payroll | 1,462 | (8,739) |
Accrued taxes | 1,253 | 971 |
Other accrued liabilities | 5,890 | (6,512) |
Other noncurrent liabilities | (4,233) | (5,625) |
Net cash flows provided by (used in) operating activities | 63,229 | (11,610) |
Cash flows from investing activities: | ||
Capital expenditures | (5,321) | (5,476) |
Proceeds from sales of real estate and other assets | 1,785 | 4,536 |
Investment purchases | 0 | (1,400) |
Proceeds from sale of investments | 200 | 2,900 |
Collections on notes receivable | 539 | 1,385 |
Issuance of notes receivable | (115) | (670) |
Net cash flows provided by (used in) investing activities | (2,912) | 1,275 |
Cash flows from financing activities: | ||
Revolver borrowings | 181,000 | 140,500 |
Revolver payments | (221,000) | (150,500) |
Long-term debt payments | (1,583) | (1,115) |
Proceeds from exercise of stock options | 116 | 212 |
Tax withholding on share-based payments | (1,377) | (3,049) |
Deferred financing costs | (1,809) | (982) |
Purchase of treasury stock | (6,228) | (36,008) |
Proceeds from issuance of common stock | 0 | 69,571 |
Net bank overdrafts | (3,125) | (449) |
Net cash flows provided by (used in) financing activities | (54,006) | 18,180 |
Increase in cash and cash equivalents | 6,311 | 7,845 |
Cash and cash equivalents at beginning of period | 3,892 | 3,372 |
Cash and cash equivalents at end of period | $ 10,203 | $ 11,217 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 9 Months Ended |
Sep. 29, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction and Basis of Presentation | Introduction and Basis of Presentation Denny’s Corporation, or Denny’s or the Company, is one of America’s largest full-service restaurant chains based on number of restaurants. At September 29, 2021, the Denny's brand consisted of 1,647 restaurants, 1,582 of which were franchised/licensed restaurants and 65 of which were company operated. The global crisis resulting from the spread of coronavirus ("COVID-19") has had a substantial impact on our restaurant operations starting in the quarter ended March 25, 2020 with continuing impacts into the current quarter ended September 29, 2021. While we have seen improvements compared to earlier periods during the COVID-19 pandemic, we cannot currently estimate the duration or future financial impact of the COVID-19 pandemic on our business. Our unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. In our opinion, all adjustments considered necessary for a fair presentation of the interim periods presented have been included. Such adjustments are of a normal and recurring nature. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates are reasonable. These interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the fiscal year ended December 30, 2020 which are contained in our audited Annual Report on Form 10-K for the fiscal year ended December 30, 2020. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 29, 2021. Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective rate. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 29, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Newly Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which modifies Topic 740 to simplify the accounting for income taxes. ASU 2019-12 is effective for financial statements issued for annual periods beginning after December 15, 2020, and for the interim periods therein. The adoption of ASU 2019-12 did not have a significant impact on the Company’s consolidated financial position or results of operations. Accounting Standards to be Adopted In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” which clarified the guidance issued in March 2020, ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The guidance is effective through December 31, 2022. The Company is currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial position or results of operations. We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption. |
Receivables
Receivables | 9 Months Ended |
Sep. 29, 2021 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following: September 29, 2021 December 30, 2020 (In thousands) Receivables, net: Trade accounts receivable from franchisees $ 13,194 $ 15,535 Financing receivables from franchisees 1,022 2,104 Vendor receivables 2,396 2,199 Credit card receivables 473 542 Other 742 2,668 Allowance for doubtful accounts (924) (1,699) Total receivables, net $ 16,903 $ 21,349 Other noncurrent assets: Financing receivables from franchisees $ 342 $ 502 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 29, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following: September 29, 2021 December 30, 2020 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,087 $ — $ 44,087 $ — Liquor licenses 120 — 120 — Intangible assets with definite lives: Reacquired franchise rights 12,218 5,866 12,218 4,866 Intangible assets, net $ 56,425 $ 5,866 $ 56,425 $ 4,866 |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 29, 2021 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consisted of the following: September 29, 2021 December 30, 2020 (In thousands) Accrued payroll $ 18,973 $ 17,076 Current portion of liability for insurance claims 4,371 4,667 Accrued taxes 6,103 4,850 Accrued advertising 12,350 4,318 Gift cards 5,204 6,127 Other 9,984 9,424 Other current liabilities $ 56,985 $ 46,462 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 29, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Total Quoted Prices in Active Markets for Identical Assets/Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (In thousands ) Fair value measurements as of September 29, 2021: Deferred compensation plan investments (1) $ 13,626 $ 13,626 $ — $ — Interest rate swaps (2) (53,874) — (53,874) — Investments (3) 2,082 — 2,082 — Total $ (38,166) $ 13,626 $ (51,792) $ — Fair value measurements as of December 30, 2020: Deferred compensation plan investments (1) $ 13,627 $ 13,627 $ — $ — Interest rate swaps (2) (76,445) — (76,445) — Investments (3) 2,272 — 2,272 — Total $ (60,546) $ 13,627 $ (74,173) $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 7 for details on the interest rate swaps. (3) The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments. The carrying amounts of cash and cash equivalents, receivables, accounts payable and accrued expenses are deemed to approximate fair value due to the immediate or short-term maturity of these instruments. The fair value of notes receivable approximates the carrying value after consideration of recorded allowances and related risk-based interest rates. The outstanding senior secured revolver is carried at historical cost, which approximates fair value. The fair value of our senior secured revolver approximates its carrying value since it is a variable rate facility (Level 2). |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 29, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Refinancing of Credit Facility On August 26, 2021, the Company and certain of its subsidiaries refinanced the existing credit facility (the "Old Credit Facility") and entered into a new five-year $400 million senior secured revolver (with a $25 million letter of credit sublimit) (the "New Credit Facility"). The New Credit Facility includes an accordion feature that would allow us to increase the size of the facility to $450 million. Borrowings bear a tiered interest rate, which is based on the Company's consolidated leverage ratio and is initially set at LIBOR plus 2.25%. The maturity date for the New Credit Facility is August 26, 2026. The New Credit Facility was used to refinance the Old Credit Facility and is available for working capital, capital expenditures and other general corporate purposes. The New Credit Facility is guaranteed by Denny's and its material subsidiaries and is secured by assets of Denny's and its subsidiaries, including the stock of its subsidiaries (other than its insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The New Credit Facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. We were in compliance with all financial covenants as of September 29, 2021. As of September 29, 2021, we had outstanding revolver loans of $170.0 million and outstanding letters of credit under the New Credit Facility of $15.7 million. These balances resulted in availability of $214.3 million as of September 29, 2021 under the New Credit Facility. As of September 29, 2021, borrowings under the New Credit Facility bore interest at a rate of LIBOR plus 2.25% and the commitment fee, paid on the unused portion of the New Credit Facility, was set to 0.35%. Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 2.33% and 3.15% as of September 29, 2021 and December 30, 2020, respectively. Taking into consideration our interest rate swaps that are designated as cash flow hedges, the weighted-average interest rate of outstanding revolver loans was 4.69% and 5.01% as of September 29, 2021 and December 30, 2020, respectively. Interest Rate Hedges We have receive-variable, pay-fixed interest rate swaps to hedge the forecasted cash flows of our floating rate debt. We initially designated the interest rate swaps as cash flow hedges of our exposure to variability in future cash flows attributable to variable interest payments due on forecasted notional amounts. A summary of our interest rate swaps as of September 29, 2021 is as follows: Trade Date Effective Date Maturity Date Notional Amount Fair Value Fixed Rate (In thousands) Swaps designated as cash flow hedges March 20, 2015 March 29, 2018 March 31, 2025 $ 120,000 $ 7,208 2.44 % October 1, 2015 March 29, 2018 March 31, 2026 $ 50,000 $ 3,429 2.46 % Dedesignated swaps February 15, 2018 March 31, 2020 December 31, 2033 $ 100,000 (1) $ 43,237 3.19 % Total $ 270,000 $ 53,874 (1) The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $425.0 million on September 28, 2029. Swaps Designated as Cash Flow Hedges To the extent the swaps are highly effective in offsetting the variability of the hedged cash flows, changes in the fair value of the swaps are not included in the Consolidated Statements of Operations but are reported as a component of other comprehensive income (loss). The interest rate swaps entered into in 2015 are designated as cash flow hedges with unrealized gain and losses recorded as a component of accumulated other comprehensive loss, net. As of September 29, 2021, the fair value of swaps designated as cash flow hedges was a liability of $10.6 million and was recorded as a component of other noncurrent liabilities with an offsetting amount (before taxes) recorded as a component of accumulated other comprehensive loss, net in our Condensed Consolidated Balance Sheets. See Note 13 for amounts recorded in accumulated other comprehensive loss related to interest rate swaps. We expect to reclassify approximately $4.0 million from accumulated other comprehensive loss, net to interest expense, net in our Consolidated Statements of Operations related to swaps designated as cash flow hedges during the next 12 months. Dedesignated Interest Rate Hedges During the year ended December 30, 2020, we determined that a portion of the underlying cash flows related to our hedging relationship entered into in 2018 (“2018 Swaps”) were no longer probable of occurring over the term of the interest rate swaps. Accordingly, we dedesignated the cash flow relationship and discontinued hedge accounting treatment for the 2018 Swaps. As a result, we reclassified a portion of losses from accumulated other comprehensive loss, net to other nonoperating expense (income), net in our Consolidated Statements of Operations and began amortizing the remaining amounts of unrealized losses related to the 2018 Swaps from accumulated other comprehensive loss, net into our Consolidated Statements of Operations as a component of interest expense, net over the remaining term of the 2018 Swaps. For the quarter and three quarters ended September 29, 2021, no unrealized losses and approximately $0.2 million of unrealized losses, respectively, were reclassified to interest expense, net related to the 2018 Swaps. For the quarter and three quarters ended September 23, 2020, we reclassified unrealized losses of approximately $0.3 million and $0.6 million, respectively, to interest expense, net related to the 2018 Swaps. At September 29, 2021, approximately $64.2 million (before taxes) of unrealized losses remained in accumulated other comprehensive loss, net. We expect to amortize less than $0.1 million from accumulated other comprehensive loss, net to interest expense, net in our Consolidated Statements of Operations related to dedesignated interest rate swaps during the next 12 months. |
Revenues
Revenues | 9 Months Ended |
Sep. 29, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Our revenues are derived primarily from two sales channels, which we operate as one segment: company restaurants and franchised and licensed restaurants. The following table disaggregates our revenue by sales channel and type of good or service: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands) Company restaurant sales $ 46,470 $ 27,849 $ 127,611 $ 85,268 Franchise and license revenue: Royalties 27,336 17,896 75,297 48,462 Advertising revenue 18,215 13,927 50,926 38,685 Initial and other fees 1,442 1,890 5,346 4,933 Occupancy revenue 10,331 10,082 31,355 31,152 Franchise and license revenue 57,324 43,795 162,924 123,232 Total operating revenue $ 103,794 $ 71,644 $ 290,535 $ 208,500 Franchise occupancy revenue consisted of the following: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands) Operating lease revenue $ 7,594 $ 8,277 $ 23,175 $ 24,959 Variable lease revenue 2,737 1,805 8,180 6,193 Total occupancy revenue $ 10,331 $ 10,082 $ 31,355 $ 31,152 Balances related to contracts with customers consist of receivables, deferred franchise revenue and deferred gift card revenue. See Note 3 for details on our receivables. Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that we will begin amortizing into revenue when the related restaurants are opened. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising. The components of the change in deferred franchise revenue are as follows: (In thousands) Balance, December 30, 2020 $ 20,806 Fees received from franchisees 381 Revenue recognized (1) (1,721) Balance, September 29, 2021 19,466 Less current portion included in other current liabilities 1,924 Deferred franchise revenue included in other noncurrent liabilities $ 17,542 (1) Of this amount $1.7 million was included in the deferred franchise revenue balance as of December 30, 2020. |
Operating (Gains), Losses and O
Operating (Gains), Losses and Other Charges, Net | 9 Months Ended |
Sep. 29, 2021 | |
Other Income and Expenses [Abstract] | |
Operating (Gains), Losses and Other Charges, Net | Operating (Gains), Losses and Other Charges, Net Operating (gains), losses and other charges, net consisted of the following: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands) Gains on sales of assets and other, net $ (93) $ (1,202) $ (1,100) $ (2,260) Restructuring charges and exit costs (122) 83 1,304 2,060 Impairment charges — 338 — 2,519 Operating (gains), losses and other charges, net $ (215) $ (781) $ 204 $ 2,319 During the three quarters ended September 29, 2021, gains on sales of assets and other, net were primarily related to the sale of one parcel of real estate. During the quarter and three quarters ended September 23, 2020, gains on sales of assets and other, net were primarily related to the sale of three and five real estate parcels, respectively. As of September 29, 2021, we had recorded assets held for sale consisting of property at their carrying amount of $1.6 million related to two parcels of real estate. As of December 30, 2020, we had recorded assets held for sale at their carrying amount of $1.1 million (consisting of property of $1.0 million and other assets of $0.1 million) related to two parcels of real estate. Restructuring charges and exit costs consisted of the following: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands) Exit costs $ 101 $ 75 $ 324 $ 169 Severance and other restructuring charges (223) 8 980 1,891 Total restructuring charges and exit costs $ (122) $ 83 $ 1,304 $ 2,060 Exit costs primarily consist of costs related to closed restaurants. Exit cost liabilities were $0.1 million as of both September 29, 2021 and December 30, 2020. Exit cost liabilities related to lease costs are included as a component of operating lease liabilities in our Condensed Consolidated Balance Sheets. As of September 29, 2021 and December 30, 2020, we had accrued severance and other restructuring charges of $0.3 million and $0.6 million, respectively. The balance as of September 29, 2021 is expected to be paid during the next 12 months. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 29, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Total share-based compensation included as a component of general and administrative expenses was as follows: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands) Employee share awards $ 3,127 $ 1,784 $ 9,544 $ 1,364 Restricted stock units for board members 225 214 668 608 Total share-based compensation $ 3,352 $ 1,998 $ 10,212 $ 1,972 Employee Share Awards During the three quarters ended September 29, 2021, we granted certain employees approximately 0.5 million performance share units ("PSUs") with a grant date fair value of $24.74 per share that vest based on the total shareholder return (“TSR”) of our common stock compared to the TSRs of a group of peer companies (from 0% to 200% of the target award). As the TSR based performance shares contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value. The performance period for these PSUs is the three year fiscal period beginning December 31, 2020 and ending December 27, 2023. The PSUs will completely vest and be earned at the end of the performance period at which point the TSR will be determined. We also granted certain employees approximately 0.2 million restricted stock units ("RSUs") with a grant date fair value of $15.91 per share. The RSUs vest evenly over the three year period ending December 27, 2023. During the three quarters ended September 29, 2021, we issued 0.2 million shares of common stock related to vested performance share units. In addition, 0.1 million shares of common stock were withheld in lieu of taxes related to vested performance share units. We recognize compensation cost associated with our PSU and RSU awards on a straight-line basis over the entire performance period of the awards. As of September 29, 2021, we had approximately $15.9 million of unrecognized compensation cost related to unvested performance share awards and restricted share awards outstanding, which have a weighted average remaining contractual term of 1.9 years. Restricted Stock Units for Board Members During the three quarters ended September 29, 2021, we granted approximately 0.1 million restricted stock units (which are equity classified) with a weighted average grant date fair value of $17.33 per unit to non-employee members of our Board of Directors. The restricted stock units vest after a one year service period. A director may elect to convert these awards into shares of common stock either on a specific date in the future (while still serving as a member of our Board of Directors), upon termination as a member of our Board of Directors, or in three equal annual installments commencing after termination of service as a member of our Board. During the three quarters ended September 29, 2021, less than 0.1 million restricted stock units were converted into shares of common stock. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe effective income tax rate was 25.0% for the quarter and 24.1% for the three quarters ended September 29, 2021, compared to 11.2% and 20.6% for the prior year periods, respectively. The 2020 year-to-date rate included a net benefit of 22.2% from the reclassification of cash flow derivatives from accumulated other comprehensive loss. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 29, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The amounts used for the basic and diluted net income (loss) per share calculations are summarized below: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands, except per share amounts) Net income (loss) $ 12,265 $ 6,477 $ 34,618 $ (7,475) Weighted average shares outstanding - basic 65,447 63,793 65,413 59,350 Effect of dilutive share-based compensation awards (1) 382 234 401 — Weighted average shares outstanding - diluted 65,829 64,027 65,814 59,350 Basic net income (loss) per share $ 0.19 $ 0.10 $ 0.53 $ (0.13) Diluted net income (loss) per share $ 0.19 $ 0.10 $ 0.53 $ (0.13) Anti-dilutive share-based compensation awards 365 568 445 1,975 (1) For the three quarters ended September 23, 2020, share-based compensation awards have been omitted from the calculations because they have an anti-dilutive effect. |
Shareholders' Deficit
Shareholders' Deficit | 9 Months Ended |
Sep. 29, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Shareholders' Deficit | Shareholders' Deficit Share Repurchases Our New Credit Facility permits the repurchase of Denny’s stock and the payment of cash dividends subject to certain limitations. Our Board of Directors approves share repurchases of our common stock. Under these authorizations, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. Currently, we are operating under a $250 million share repurchase authorization approved by the Board of Directors in December 2019. During the quarter ended March 25, 2020, we suspended share repurchases as of February 27, 2020 and terminated our previously approved Rule 10b5-1 Repurchase Plan effective March 16, 2020 in light of uncertain market conditions arising from the COVID-19 pandemic. Prior to the refinancing of our New Credit Facility in the third quarter of 2021, share repurchase restrictions were in place under our Old Credit Facility. As a result of refinancing of our credit facility in the third quarter of 2021, we resumed our share repurchase program. During the quarter ended September 29, 2021, we repurchased a total of 0.4 million shares of our common stock for approximately $6.6 million. This brings the total amount repurchased under the current authorization to approximately $8.6 million, leaving approximately $241.4 million that can be used to repurchase our common stock under this authorization as of September 29, 2021. Repurchased shares are included as treasury stock in our Condensed Consolidated Balance Sheets and our Condensed Consolidated Statement of Shareholders' Deficit. In the fourth quarter of fiscal 2020, the Board approved the retirement of 54.0 million shares of treasury stock at a weighted average share price of $10.26. As of September 29, 2021, 0.4 million shares were held in treasury stock. Issuance and Sale of Common Stock During the quarter ended September 23, 2020, the Company entered into an underwriting agreement with Wells Fargo Securities, LLC, as representative of the several underwriters named therein, for the issuance and sale by the Company of 8,000,000 shares of its common stock, par value $0.01 per share, in an underwritten public offering at a price to the public of $9.15 per share. On July 6, 2020, the Company received net proceeds of $69.6 million from the sale of shares, after deducting the underwriters' discounts and commissions and offering expenses. Accumulated Other Comprehensive Loss, Net The components of the change in accumulated other comprehensive loss, net were as follows: Defined Benefit Plans Derivatives Accumulated Other Comprehensive Loss, Net (In thousands) Balance as of December 30, 2020 $ (978) $ (59,427) $ (60,405) Amortization of net loss (1) 120 — 120 Changes in the fair value of cash flow derivatives — 2,282 2,282 Reclassification of cash flow derivatives to interest expense, net (2) — 3,010 3,010 Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3) — 166 166 Income tax expense related to items of other comprehensive income (31) (1,398) (1,429) Balance as of September 29, 2021 $ (889) $ (55,367) $ (56,256) (1) Amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Operations during the three quarters ended September 29, 2021. (2) Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Condensed Consolidated Statements of Operations represent payments either received from or made to the counterparty for the interest rate swaps. See Note 7 for additional details. (3) The losses related to the 2018 Swaps will continue to be included in accumulated other comprehensive loss, net and will be amortized as a component of interest expense, net in our Consolidated Statements of Operations over the remaining term of the 2018 Swaps. For the three quarters ended September 29, 2021, we amortized approximately $0.2 million of losses to interest expense, net related to the 2018 Swaps. We expect to amortize less than $0.1 million from accumulated other comprehensive loss related to our interest rate swaps during the next 12 months. See Note 7 for additional details. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 29, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations During the quarter ended September 29, 2021, the Company entered into equipment purchase contracts of approximately $18.1 million related to the rollout of kitchen equipment for franchise restaurants, which will be paid by the franchisees as the equipment is installed, less approximately $5.7 million in commitments from the Company. Legal Proceedings |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 29, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Quarters Ended September 29, 2021 September 23, 2020 (In thousands) Income taxes paid, net $ 5,638 $ 545 Interest paid $ 11,189 $ 11,851 Noncash investing and financing activities: Issuance of common stock, pursuant to share-based compensation plans $ 3,087 $ 6,042 Execution of finance leases $ 992 $ 95 Treasury stock payable $ 335 $ — Accrued deferred financing costs $ 36 $ — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 29, 2021 | |
Accounting Policies [Abstract] | |
Newly Adopted Accounting Standards and Accounting Standards to be Adopted | Newly Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which modifies Topic 740 to simplify the accounting for income taxes. ASU 2019-12 is effective for financial statements issued for annual periods beginning after December 15, 2020, and for the interim periods therein. The adoption of ASU 2019-12 did not have a significant impact on the Company’s consolidated financial position or results of operations. Accounting Standards to be Adopted In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” which clarified the guidance issued in March 2020, ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The guidance is effective through December 31, 2022. The Company is currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial position or results of operations. We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption. |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Receivables [Abstract] | |
Schedule of Receivables, Net | Receivables consisted of the following: September 29, 2021 December 30, 2020 (In thousands) Receivables, net: Trade accounts receivable from franchisees $ 13,194 $ 15,535 Financing receivables from franchisees 1,022 2,104 Vendor receivables 2,396 2,199 Credit card receivables 473 542 Other 742 2,668 Allowance for doubtful accounts (924) (1,699) Total receivables, net $ 16,903 $ 21,349 Other noncurrent assets: Financing receivables from franchisees $ 342 $ 502 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consisted of the following: September 29, 2021 December 30, 2020 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,087 $ — $ 44,087 $ — Liquor licenses 120 — 120 — Intangible assets with definite lives: Reacquired franchise rights 12,218 5,866 12,218 4,866 Intangible assets, net $ 56,425 $ 5,866 $ 56,425 $ 4,866 |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following: September 29, 2021 December 30, 2020 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,087 $ — $ 44,087 $ — Liquor licenses 120 — 120 — Intangible assets with definite lives: Reacquired franchise rights 12,218 5,866 12,218 4,866 Intangible assets, net $ 56,425 $ 5,866 $ 56,425 $ 4,866 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Other Liabilities, Current [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following: September 29, 2021 December 30, 2020 (In thousands) Accrued payroll $ 18,973 $ 17,076 Current portion of liability for insurance claims 4,371 4,667 Accrued taxes 6,103 4,850 Accrued advertising 12,350 4,318 Gift cards 5,204 6,127 Other 9,984 9,424 Other current liabilities $ 56,985 $ 46,462 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Total Quoted Prices in Active Markets for Identical Assets/Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (In thousands ) Fair value measurements as of September 29, 2021: Deferred compensation plan investments (1) $ 13,626 $ 13,626 $ — $ — Interest rate swaps (2) (53,874) — (53,874) — Investments (3) 2,082 — 2,082 — Total $ (38,166) $ 13,626 $ (51,792) $ — Fair value measurements as of December 30, 2020: Deferred compensation plan investments (1) $ 13,627 $ 13,627 $ — $ — Interest rate swaps (2) (76,445) — (76,445) — Investments (3) 2,272 — 2,272 — Total $ (60,546) $ 13,627 $ (74,173) $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 7 for details on the interest rate swaps. (3) The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Rate Swaps | A summary of our interest rate swaps as of September 29, 2021 is as follows: Trade Date Effective Date Maturity Date Notional Amount Fair Value Fixed Rate (In thousands) Swaps designated as cash flow hedges March 20, 2015 March 29, 2018 March 31, 2025 $ 120,000 $ 7,208 2.44 % October 1, 2015 March 29, 2018 March 31, 2026 $ 50,000 $ 3,429 2.46 % Dedesignated swaps February 15, 2018 March 31, 2020 December 31, 2033 $ 100,000 (1) $ 43,237 3.19 % Total $ 270,000 $ 53,874 (1) The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $425.0 million on September 28, 2029. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates our revenue by sales channel and type of good or service: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands) Company restaurant sales $ 46,470 $ 27,849 $ 127,611 $ 85,268 Franchise and license revenue: Royalties 27,336 17,896 75,297 48,462 Advertising revenue 18,215 13,927 50,926 38,685 Initial and other fees 1,442 1,890 5,346 4,933 Occupancy revenue 10,331 10,082 31,355 31,152 Franchise and license revenue 57,324 43,795 162,924 123,232 Total operating revenue $ 103,794 $ 71,644 $ 290,535 $ 208,500 |
Schedule of Components of Lease Income | Franchise occupancy revenue consisted of the following: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands) Operating lease revenue $ 7,594 $ 8,277 $ 23,175 $ 24,959 Variable lease revenue 2,737 1,805 8,180 6,193 Total occupancy revenue $ 10,331 $ 10,082 $ 31,355 $ 31,152 |
Schedule of Components of the Change in Deferred Franchise Revenue | The components of the change in deferred franchise revenue are as follows: (In thousands) Balance, December 30, 2020 $ 20,806 Fees received from franchisees 381 Revenue recognized (1) (1,721) Balance, September 29, 2021 19,466 Less current portion included in other current liabilities 1,924 Deferred franchise revenue included in other noncurrent liabilities $ 17,542 (1) Of this amount $1.7 million was included in the deferred franchise revenue balance as of December 30, 2020. |
Operating (Gains), Losses and_2
Operating (Gains), Losses and Other Charges, Net (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Operating Gains Losses and Other Charges, Net | Operating (gains), losses and other charges, net consisted of the following: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands) Gains on sales of assets and other, net $ (93) $ (1,202) $ (1,100) $ (2,260) Restructuring charges and exit costs (122) 83 1,304 2,060 Impairment charges — 338 — 2,519 Operating (gains), losses and other charges, net $ (215) $ (781) $ 204 $ 2,319 |
Schedule of Restructuring Charges and Exit Costs | Restructuring charges and exit costs consisted of the following: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands) Exit costs $ 101 $ 75 $ 324 $ 169 Severance and other restructuring charges (223) 8 980 1,891 Total restructuring charges and exit costs $ (122) $ 83 $ 1,304 $ 2,060 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Total Share-based Compensation | Total share-based compensation included as a component of general and administrative expenses was as follows: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands) Employee share awards $ 3,127 $ 1,784 $ 9,544 $ 1,364 Restricted stock units for board members 225 214 668 608 Total share-based compensation $ 3,352 $ 1,998 $ 10,212 $ 1,972 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Share | The amounts used for the basic and diluted net income (loss) per share calculations are summarized below: Quarter Ended Three Quarters Ended September 29, 2021 September 23, 2020 September 29, 2021 September 23, 2020 (In thousands, except per share amounts) Net income (loss) $ 12,265 $ 6,477 $ 34,618 $ (7,475) Weighted average shares outstanding - basic 65,447 63,793 65,413 59,350 Effect of dilutive share-based compensation awards (1) 382 234 401 — Weighted average shares outstanding - diluted 65,829 64,027 65,814 59,350 Basic net income (loss) per share $ 0.19 $ 0.10 $ 0.53 $ (0.13) Diluted net income (loss) per share $ 0.19 $ 0.10 $ 0.53 $ (0.13) Anti-dilutive share-based compensation awards 365 568 445 1,975 (1) For the three quarters ended September 23, 2020, share-based compensation awards have been omitted from the calculations because they have an anti-dilutive effect. |
Shareholders' Deficit (Tables)
Shareholders' Deficit (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The components of the change in accumulated other comprehensive loss, net were as follows: Defined Benefit Plans Derivatives Accumulated Other Comprehensive Loss, Net (In thousands) Balance as of December 30, 2020 $ (978) $ (59,427) $ (60,405) Amortization of net loss (1) 120 — 120 Changes in the fair value of cash flow derivatives — 2,282 2,282 Reclassification of cash flow derivatives to interest expense, net (2) — 3,010 3,010 Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3) — 166 166 Income tax expense related to items of other comprehensive income (31) (1,398) (1,429) Balance as of September 29, 2021 $ (889) $ (55,367) $ (56,256) (1) Amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Operations during the three quarters ended September 29, 2021. (2) Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Condensed Consolidated Statements of Operations represent payments either received from or made to the counterparty for the interest rate swaps. See Note 7 for additional details. (3) The losses related to the 2018 Swaps will continue to be included in accumulated other comprehensive loss, net and will be amortized as a component of interest expense, net in our Consolidated Statements of Operations over the remaining term of the 2018 Swaps. For the three quarters ended September 29, 2021, we amortized approximately $0.2 million of losses to interest expense, net related to the 2018 Swaps. We expect to amortize less than $0.1 million from accumulated other comprehensive loss related to our interest rate swaps during the next 12 months. See Note 7 for additional details. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 29, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Information | Three Quarters Ended September 29, 2021 September 23, 2020 (In thousands) Income taxes paid, net $ 5,638 $ 545 Interest paid $ 11,189 $ 11,851 Noncash investing and financing activities: Issuance of common stock, pursuant to share-based compensation plans $ 3,087 $ 6,042 Execution of finance leases $ 992 $ 95 Treasury stock payable $ 335 $ — Accrued deferred financing costs $ 36 $ — |
Introduction and Basis of Pre_2
Introduction and Basis of Presentation (Details) | Sep. 29, 2021restaurant |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,647 |
Franchised/licensed Restaurants | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,582 |
Company Restaurants | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 65 |
Receivables - Receivables, Net
Receivables - Receivables, Net (Details) - USD ($) $ in Thousands | Sep. 29, 2021 | Dec. 30, 2020 |
Receivables, net: | ||
Trade accounts receivable from franchisees | $ 13,194 | $ 15,535 |
Financing receivables from franchisees | 1,022 | 2,104 |
Allowance for doubtful accounts | (924) | (1,699) |
Receivables, net | 16,903 | 21,349 |
Other noncurrent assets: | ||
Financing receivables from franchisees | 342 | 502 |
Vendor receivables | ||
Receivables, net: | ||
Other receivables, gross, current | 2,396 | 2,199 |
Credit card receivables | ||
Receivables, net: | ||
Other receivables, gross, current | 473 | 542 |
Other | ||
Receivables, net: | ||
Other receivables, gross, current | $ 742 | $ 2,668 |
Intangible Assets - Finite-Live
Intangible Assets - Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2021 | Dec. 30, 2020 |
Intangible Assets | ||
Trade names | $ 44,087 | $ 44,087 |
Liquor licenses | 120 | 120 |
Gross Carrying Amount | 12,218 | 12,218 |
Accumulated Amortization | 5,866 | 4,866 |
Intangible assets, net | $ 56,425 | $ 56,425 |
Other Current Liabilities - Oth
Other Current Liabilities - Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2021 | Dec. 30, 2020 |
Other Liabilities, Current [Abstract] | ||
Accrued payroll | $ 18,973 | $ 17,076 |
Current portion of liability for insurance claims | 4,371 | 4,667 |
Accrued taxes | 6,103 | 4,850 |
Accrued advertising | 12,350 | 4,318 |
Gift cards | 5,204 | 6,127 |
Other | 9,984 | 9,424 |
Other current liabilities | $ 56,985 | $ 46,462 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets and Liabilities on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Sep. 29, 2021 | Dec. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | $ 13,626 | $ 13,627 |
Interest rate swaps | (53,874) | (76,445) |
Investments | 2,082 | 2,272 |
Total | (38,166) | (60,546) |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 13,626 | 13,627 |
Interest rate swaps | 0 | 0 |
Investments | 0 | 0 |
Total | 13,626 | 13,627 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 0 | 0 |
Interest rate swaps | (53,874) | (76,445) |
Investments | 2,082 | 2,272 |
Total | (51,792) | (74,173) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 0 | 0 |
Interest rate swaps | 0 | 0 |
Investments | 0 | 0 |
Total | $ 0 | $ 0 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Aug. 26, 2021 | Sep. 29, 2021 | Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | Jun. 30, 2021 | Dec. 30, 2020 | Jun. 24, 2020 | Dec. 25, 2019 |
Line of Credit Facility [Line Items] | |||||||||
Unrealized losses remained in accumulated other comprehensive loss, net | $ 89,637,000 | $ 138,371,000 | $ 89,637,000 | $ 138,371,000 | $ 99,423,000 | $ 130,446,000 | $ 217,507,000 | $ 138,064,000 | |
Derivatives | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Reclassification | 166,000 | ||||||||
Derivatives | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Reclassification | 3,010,000 | ||||||||
Unrealized losses remained in accumulated other comprehensive loss, net | 55,367,000 | 55,367,000 | $ 59,427,000 | ||||||
Effective Interest Rate Swaps | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest rate swaps | 10,600,000 | 10,600,000 | |||||||
Expected reclassification within next twelve months | 4,000,000 | ||||||||
Dedesignated Interest Rate Swaps | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest rate swaps | 43,200,000 | 43,200,000 | |||||||
Dedesignated Interest Rate Swaps | Other Nonoperating Income (Expense) | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Unrealized gain (loss) on derivatives | 2,300,000 | 7,800,000 | 14,900,000 | 3,700,000 | |||||
Dedesignated Interest Rate Swaps | Derivatives | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Reclassification | $ 300,000 | 200,000 | $ 600,000 | ||||||
Dedesignated Interest Rate Swaps | Derivatives | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Unrealized losses remained in accumulated other comprehensive loss, net | 64,200,000 | 64,200,000 | |||||||
Dedesignated Interest Rate Swaps | Derivatives | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Expected reclassification within next twelve months | 100,000 | ||||||||
Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, term | 5 years | ||||||||
Line of credit facility, current borrowing capacity | $ 400,000,000 | ||||||||
Line of credit facility, borrowing capacity, accordion feature | $ 450,000,000 | ||||||||
Outstanding amount under credit facility | 170,000,000 | 170,000,000 | |||||||
Availability under the credit facility | $ 214,300,000 | $ 214,300,000 | |||||||
Commitment fee, percent | 0.35% | ||||||||
Weighted-average interest rate | 2.33% | 2.33% | 3.15% | ||||||
Revolving Credit Facility | Interest Rate Swap | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Weighted-average interest rate | 4.69% | 4.69% | 5.01% | ||||||
Revolving Credit Facility | Libor | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate debt (as a percent) | 2.25% | 2.25% | |||||||
Letter of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, current borrowing capacity | $ 25,000,000 | ||||||||
Outstanding amount of letters of credit | $ 15,700,000 | $ 15,700,000 |
Long-Term Debt - Interest Rate
Long-Term Debt - Interest Rate Swaps (Details) | Sep. 29, 2021USD ($) |
Derivative [Line Items] | |
Notional Amount | $ 270,000,000 |
Fair Value | 53,874,000 |
Interest Rate Swap 2018-2025 | |
Derivative [Line Items] | |
Notional Amount | 120,000,000 |
Fair Value | $ 7,208,000 |
Fixed Rate | 2.44% |
Interest Rate Swap 2018-2026 | |
Derivative [Line Items] | |
Notional Amount | $ 50,000,000 |
Fair Value | $ 3,429,000 |
Fixed Rate | 2.46% |
Interest Rate Swap 2020-2033 | |
Derivative [Line Items] | |
Notional Amount | $ 100,000,000 |
Fair Value | $ 43,237,000 |
Fixed Rate | 3.19% |
Interest Rate Swap 2020-2029 | Maximum | |
Derivative [Line Items] | |
Notional Amount | $ 425,000,000 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2021USD ($) | Sep. 23, 2020USD ($) | Sep. 29, 2021USD ($)segmentsale_channel | Sep. 23, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | ||||
Number of sales channels | sale_channel | 2 | |||
Number of segments | segment | 1 | |||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 103,794 | $ 71,644 | $ 290,535 | $ 208,500 |
Company restaurant sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 46,470 | 27,849 | 127,611 | 85,268 |
Royalties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 27,336 | 17,896 | 75,297 | 48,462 |
Advertising revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 18,215 | 13,927 | 50,926 | 38,685 |
Initial and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 1,442 | 1,890 | 5,346 | 4,933 |
Occupancy revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 10,331 | 10,082 | 31,355 | 31,152 |
Franchise and license revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 57,324 | $ 43,795 | $ 162,924 | $ 123,232 |
Revenues - Components of Lease
Revenues - Components of Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2021 | Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Operating lease revenue | $ 7,594 | $ 8,277 | $ 23,175 | $ 24,959 |
Variable lease revenue | 2,737 | 1,805 | 8,180 | 6,193 |
Total occupancy revenue | $ 10,331 | $ 10,082 | $ 31,355 | $ 31,152 |
Revenues - Components of the Ch
Revenues - Components of the Change in Deferred Franchise Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 29, 2021 |
Movement In Deferred Revenue Roll Forward | ||
Balance, December 30, 2020 | $ 20,806 | $ 20,806 |
Fees received from franchisees | 381 | |
Revenue recognized | (1,721) | |
Balance, September 29, 2021 | 19,466 | |
Balance | 19,466 | |
Less current portion included in other current liabilities | 1,924 | |
Deferred franchise revenue included in other noncurrent liabilities | $ 17,542 | |
Deferred revenue recognized | $ 1,700 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 29, 2021 | Dec. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Liability balance | $ 1,924 | ||
Deferred revenue recognized | $ 1,700 | ||
Gift Card Redemption | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Liability balance | 5,200 | $ 6,100 | |
Deferred revenue recognized | $ 300 |
Operating (Gains), Losses and_3
Operating (Gains), Losses and Other Charges, Net - Operating Gains Losses and Other Charges, Net and Restructuring Charges and Exit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2021 | Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | |
Other Income and Expenses [Abstract] | ||||
Gains on sales of assets and other, net | $ (93) | $ (1,202) | $ (1,100) | $ (2,260) |
Restructuring charges and exit costs | (122) | 83 | 1,304 | 2,060 |
Impairment charges | 0 | 338 | 0 | 2,519 |
Operating (gains), losses and other charges, net | (215) | (781) | 204 | 2,319 |
Restructuring Charges [Abstract] | ||||
Exit costs | 101 | 75 | 324 | 169 |
Severance and other restructuring charges | (223) | 8 | 980 | 1,891 |
Total restructuring charges and exit costs | $ (122) | $ 83 | $ 1,304 | $ 2,060 |
Operating (Gains), Losses and_4
Operating (Gains), Losses and Other Charges, Net - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 23, 2020parcel | Sep. 29, 2021USD ($)real_estateparcel | Sep. 23, 2020parcel | Dec. 30, 2020USD ($)real_estate | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Exit cost liabilities | $ 0.1 | $ 0.1 | ||
Severance and other restructuring charges | $ 0.3 | 0.6 | ||
Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Carrying amount | $ 1.1 | |||
Number of real estate properties | real_estate | 2 | 2 | ||
Property | $ 1.6 | $ 1 | ||
Other assets | $ 0.1 | |||
Real Estate | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of real estate properties sold | parcel | 3 | 1 | 5 |
Share-Based Compensation - Tota
Share-Based Compensation - Total Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2021 | Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | $ 3,352 | $ 1,998 | $ 10,212 | $ 1,972 |
Employee share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | 3,127 | 1,784 | 9,544 | 1,364 |
Restricted stock units for board members | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | $ 225 | $ 214 | $ 668 | $ 608 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 29, 2021USD ($)installment$ / sharesshares | |
Certain Employee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ | $ 15.9 |
Unrecognized contractual term | 1 year 10 months 24 days |
Performance shares | Certain Employee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants in periods (in shares) | 0.5 |
Fair value of units granted (in dollars per share) | $ / shares | $ 24.74 |
Period of performance | 3 years |
Common stock, shares issued (in shares) | 0.2 |
Shares paid for tax withholding (in shares) | 0.1 |
Performance shares | Certain Employee | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target achievement (in shares) | 0.00% |
Performance shares | Certain Employee | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target achievement (in shares) | 200.00% |
Restricted Stock Units | Certain Employee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants in periods (in shares) | 0.2 |
Fair value of units granted (in dollars per share) | $ / shares | $ 15.91 |
Period of performance | 3 years |
Restricted Stock Units | Board Members | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants in periods (in shares) | 0.1 |
Fair value of units granted (in dollars per share) | $ / shares | $ 17.33 |
Common stock, shares issued (in shares) | 0.1 |
Unrecognized compensation cost | $ | $ 0.6 |
Unrecognized contractual term | 7 months 6 days |
Service period | 1 year |
Number of annual installments | installment | 3 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2021 | Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate expense (benefit), percent | 25.00% | 11.20% | 24.10% | 20.60% |
Income tax benefit on reclassification of interest rate hedges from other comprehensive income | 22.20% |
Net Income (Loss) Per Share - B
Net Income (Loss) Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2021 | Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 12,265 | $ 6,477 | $ 34,618 | $ (7,475) |
Weighted average shares outstanding - basic (in shares) | 65,447 | 63,793 | 65,413 | 59,350 |
Effect of dilutive share-based compensation awards (in shares) | 382 | 234 | 401 | 0 |
Weighted average shares outstanding - diluted (in shares) | 65,829 | 64,027 | 65,814 | 59,350 |
Basic net income (loss) per share (in dollars per share) | $ 0.19 | $ 0.10 | $ 0.53 | $ (0.13) |
Diluted net income (loss) per share (in dollars per share) | $ 0.19 | $ 0.10 | $ 0.53 | $ (0.13) |
Anti-dilutive share-based compensation awards (in shares) | 365 | 568 | 445 | 1,975 |
Shareholders' Deficit - Narrati
Shareholders' Deficit - Narrative (Details) - USD ($) | Sep. 29, 2021 | Jul. 06, 2020 | Sep. 29, 2021 | Dec. 30, 2020 | Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | Dec. 25, 2019 |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Purchase of treasury stock (in shares) | 400,000 | |||||||
Purchase of treasury stock | $ 6,563,000 | $ 6,563,000 | $ 34,193,000 | |||||
Retirement of shares (in shares) | 54,000,000 | |||||||
Volume-weighted average price (in dollars per share) | $ 10.26 | |||||||
Treasury stock, at cost, shares (in shares) | 405,000 | 405,000 | 0 | 405,000 | ||||
Number of shares sold | 8,000,000 | |||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Price per share (in dollars per share) | $ 9.15 | $ 9.15 | ||||||
Proceeds from sale of stock | $ 69,600,000 | |||||||
Share Repurchase Program 2019 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Share repurchase, authorized amount | $ 250,000,000 | |||||||
Purchase of treasury stock | $ 8,600,000 | |||||||
Remaining shares to be repurchased | $ 241,400,000 | $ 241,400,000 | $ 241,400,000 |
Shareholders' Deficit - Compone
Shareholders' Deficit - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 23, 2020 | Sep. 29, 2021 | Sep. 23, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance as of beginning of period | $ (217,507) | $ (130,446) | $ (138,064) |
Income tax expense related to items of other comprehensive income | (1,429) | ||
Balance as of end of period | (138,371) | (89,637) | (138,371) |
Defined Benefit Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance as of beginning of period | (978) | ||
Reclassification | 120 | ||
Income tax expense related to items of other comprehensive income | (31) | ||
Balance as of end of period | (889) | ||
Derivatives | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance as of beginning of period | (59,427) | ||
Reclassification | 3,010 | ||
Changes in the fair value of cash flow derivatives | 2,282 | ||
Income tax expense related to items of other comprehensive income | (1,398) | ||
Balance as of end of period | (55,367) | ||
Derivatives | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification | 166 | ||
Estimated reclassification from other comprehensive loss to interest expense related to the interest rate swaps over the next 12 months | 100 | ||
Accumulated Other Comprehensive Loss, Net | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance as of beginning of period | (62,217) | (60,405) | (33,960) |
Balance as of end of period | $ (61,205) | $ (56,256) | $ (61,205) |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Millions | Sep. 29, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligations | $ 18.1 |
Amount committed by the company | $ 5.7 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2021 | Sep. 23, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid, net | $ 5,638 | $ 545 |
Interest paid | 11,189 | 11,851 |
Noncash investing and financing activities: | ||
Issuance of common stock, pursuant to share-based compensation plans | 3,087 | 6,042 |
Execution of finance leases | 992 | 95 |
Treasury stock payable | 335 | 0 |
Accrued deferred financing costs | $ 36 | $ 0 |