Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jul. 02, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BJRI | ||
Entity Registrant Name | BJ’S RESTAURANTS, INC. | ||
Entity Central Index Key | 0001013488 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 19,220,503 | ||
Entity Public Float | $ 763,660,228 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 33-0485615 | ||
Entity Address, Address Line One | 7755 Center Avenue | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Huntington Beach | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92647 | ||
City Area Code | (714) | ||
Local Phone Number | 500-2400 | ||
Title of 12(b) Security | Common Stock, No Par Value | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 0-21423 | ||
Documents Incorporated by Reference | Certain portions of the following documents are incorporated by reference into Part III of this Form 10-K: The Registrant’s Proxy Statement for the Annual Meeting of Shareholders. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | Jan. 03, 2017 | |
Current assets: | |||||
Cash and cash equivalents | $ 22,394 | $ 29,224 | |||
Accounts and other receivables, net | 22,197 | 31,190 | |||
Inventories, net | 11,102 | 10,133 | |||
Prepaid expenses and other current assets | 8,912 | 7,940 | |||
Total current assets | 64,605 | 78,487 | |||
Property and equipment, net | 583,639 | 582,754 | |||
Operating lease assets | 383,355 | ||||
Goodwill | 4,673 | 4,673 | |||
Other assets, net | 35,812 | 29,193 | |||
Total assets | 1,072,084 | 695,107 | |||
Current liabilities: | |||||
Accounts payable | [1] | 23,422 | 36,505 | ||
Accrued expenses | 102,815 | 113,920 | |||
Current operating lease obligations | 32,194 | ||||
Total current liabilities | 158,431 | 150,425 | |||
Long-term operating lease obligations | 448,333 | ||||
Deferred income taxes, net | 20,164 | 15,977 | |||
Deferred rent | 35,088 | ||||
Deferred lease incentives | 54,264 | ||||
Long-term debt | 143,000 | 95,000 | |||
Other liabilities | 11,869 | 35,132 | |||
Total liabilities | 781,797 | 385,886 | |||
Commitments and contingencies (Note 7) | |||||
Shareholders’ equity: | |||||
Preferred stock, 5,000 shares authorized, none issued or outstanding | |||||
Common stock, no par value, 125,000 shares authorized and 19,149 and 21,058 shares issued and outstanding as of December 31, 2019 and January 1, 2019, respectively | 0 | 0 | |||
Capital surplus | 67,062 | 64,342 | |||
Retained earnings | 223,225 | 244,879 | |||
Total shareholders’ equity | 290,287 | 309,221 | $ 258,729 | $ 274,897 | |
Total liabilities and shareholders’ equity | $ 1,072,084 | $ 695,107 | |||
[1] | Included in accounts payable for fiscal years 2019 and 2018 is $2,543 and $6,110, respectively, of related party trade payables. See Note 13 for further information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 19,149,000 | 21,058,000 |
Common stock, shares outstanding | 19,149,000 | 21,058,000 |
Accounts payable, related party trade payables | $ 2,543 | $ 6,110 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | ||
Income Statement [Abstract] | ||||
Revenues | $ 1,161,450 | $ 1,116,948 | $ 1,031,782 | |
Restaurant operating costs (excluding depreciation and amortization): | ||||
Cost of sales | [1] | 295,009 | 281,953 | 268,707 |
Labor and benefits | 424,370 | 400,745 | 371,220 | |
Occupancy and operating | [1] | 256,383 | 239,446 | 219,863 |
General and administrative | 62,540 | 60,449 | 55,447 | |
Depreciation and amortization | 72,006 | 70,439 | 68,665 | |
Restaurant opening | 2,892 | 2,298 | 3,873 | |
Loss on disposal and impairment of assets | 3,862 | 4,048 | 4,775 | |
Gain on lease transactions | (4,731) | |||
Natural disaster and related | 905 | |||
Severance and legal settlements | 423 | |||
Total costs and expenses | 1,112,331 | 1,059,378 | 993,878 | |
Income from operations | 49,119 | 57,570 | 37,904 | |
Other expense, net: | ||||
Interest expense, net | (4,613) | (4,838) | (4,501) | |
Other income (expense), net | 1,788 | (735) | 1,987 | |
Total other expense, net | (2,825) | (5,573) | (2,514) | |
Income before income taxes | 46,294 | 51,997 | 35,390 | |
Income tax expense (benefit) | 1,056 | 1,187 | (9,390) | |
Net income | $ 45,238 | $ 50,810 | $ 44,780 | |
Net income per share: | ||||
Basic | $ 2.23 | $ 2.42 | $ 2.10 | |
Diluted | $ 2.20 | $ 2.35 | $ 2.06 | |
Weighted average number of shares outstanding: | ||||
Basic | 20,285 | 20,958 | 21,374 | |
Diluted | 20,592 | 21,584 | 21,772 | |
[1] | Related party costs included in cost of sales are $85,794, $85,788 and $83,554 for fiscal years 2019, 2018, and 2017, respectively. Related party costs included in occupancy and operating are $9,307, $9,697 and $9,247 for fiscal years 2019, 2018, and 2017, respectively. See Note 13 for further information. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Income Statement [Abstract] | |||
Related party costs included in cost of sales | $ 85,794 | $ 85,788 | $ 83,554 |
Related party costs included in occupancy and operating | $ 9,307 | $ 9,697 | $ 9,247 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] |
Beginning Balance at Jan. 03, 2017 | $ 274,897 | $ 66,200 | $ 208,697 | |
Beginning Balance (in shares) at Jan. 03, 2017 | 22,332 | |||
Exercise of stock options | $ 1,382 | $ 1,886 | (504) | |
Exercise of stock options (in shares) | 57 | 57 | ||
Issuance of restricted stock units | $ (322) | $ 3,714 | (4,036) | |
Issuance of restricted stock units (in shares) | 79 | |||
Repurchase and retirement of common stock | (66,922) | $ (5,600) | (61,322) | |
Repurchase and retirement of common stock (in shares) | (1,983) | |||
Stock-based compensation | 7,244 | 7,244 | ||
Dividends paid or payable | (2,330) | (2,330) | ||
Net income | 44,780 | 44,780 | ||
Ending Balance at Jan. 02, 2018 | 258,729 | 68,904 | 189,825 | |
Ending Balance (in shares) at Jan. 02, 2018 | 20,485 | |||
Exercise of stock options | $ 26,140 | $ 36,520 | (10,380) | |
Exercise of stock options (in shares) | 876 | 876 | ||
Issuance of restricted stock units | $ (383) | $ 2,383 | (2,766) | |
Issuance of restricted stock units (in shares) | 102 | |||
Repurchase and retirement of common stock | (20,331) | $ (38,903) | 18,572 | |
Repurchase and retirement of common stock (in shares) | (405) | |||
Stock-based compensation | 8,584 | 8,584 | ||
Cumulative effect of adopting revenue recognition standard | (4,598) | (4,598) | ||
Dividends paid or payable | (9,730) | (9,730) | ||
Net income | 50,810 | 50,810 | ||
Ending Balance at Jan. 01, 2019 | 309,221 | 64,342 | 244,879 | |
Ending Balance (in shares) at Jan. 01, 2019 | 21,058 | |||
Exercise of stock options | $ 1,066 | $ 1,422 | (356) | |
Exercise of stock options (in shares) | 37 | 37 | ||
Issuance of restricted stock units | $ (1,014) | $ 5,122 | (6,136) | |
Issuance of restricted stock units (in shares) | 127 | |||
Repurchase and retirement of common stock | $ (82,760) | $ (6,544) | (76,216) | |
Repurchase and retirement of common stock (in shares) | (2,100) | (2,073) | ||
Stock-based compensation | $ 9,212 | 9,212 | ||
Cumulative effect of adopting revenue recognition standard | 19,502 | 19,502 | ||
Dividends paid or payable | (10,178) | (10,178) | ||
Net income | 45,238 | 45,238 | ||
Ending Balance at Dec. 31, 2019 | $ 290,287 | $ 67,062 | $ 223,225 | |
Ending Balance (in shares) at Dec. 31, 2019 | 19,149 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Oct. 01, 2019 | Jul. 02, 2019 | Apr. 02, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Statement Of Stockholders Equity [Abstract] | |||||||
Dividends paid or payable | $ 0.13 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.49 | $ 0.45 | $ 0.11 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | ||
Cash flows from operating activities: | ||||
Net income | $ 45,238 | $ 50,810 | $ 44,780 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 72,006 | 70,439 | 68,665 | |
Non-cash lease expense | 27,726 | |||
Deferred income taxes | (2,773) | (2,812) | (16,486) | |
Stock-based compensation expense | 8,918 | 8,256 | 6,946 | |
Loss on disposal and impairment of assets | 3,862 | 4,048 | 4,775 | |
Natural disaster and related | 194 | |||
Changes in assets and liabilities: | ||||
Accounts and other receivables, net | 12,146 | (15,815) | (210) | |
Landlord contribution for tenant improvements | (752) | 1,565 | ||
Inventories, net | (969) | 381 | (607) | |
Prepaid expenses and other current assets | (1,393) | 3,060 | (718) | |
Other assets, net | (7,823) | (1,688) | (4,022) | |
Accounts payable | (9,799) | 4,746 | (1,261) | |
Accrued expenses | (4,410) | 10,320 | 2,652 | |
Operating lease obligations | (30,518) | |||
Deferred rent | 2,601 | 2,063 | ||
Deferred lease incentives | 1,421 | (1,276) | ||
Other liabilities | 3,788 | (2,098) | (24) | |
Net cash provided by operating activities | 115,999 | 132,917 | 107,036 | |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (82,157) | (60,964) | (70,736) | |
Proceeds from sale of assets | 4,039 | 5,501 | 17,905 | |
Net cash used in investing activities | (78,118) | (55,463) | (52,831) | |
Cash flows from financing activities: | ||||
Borrowings on line of credit | 1,043,500 | 1,175,000 | 2,145,100 | |
Payments on line of credit | (995,500) | (1,243,500) | (2,129,600) | |
Taxes paid on vested stock units under employee plans | (1,014) | (383) | (322) | |
Proceeds from exercise of stock options | 1,066 | 26,140 | 1,382 | |
Cash dividends paid | (10,003) | (9,491) | (2,269) | |
Repurchases of common stock | (82,760) | (20,331) | (66,922) | |
Net cash used in financing activities | (44,711) | (72,565) | (52,631) | |
Net (decrease) increase in cash and cash equivalents | (6,830) | 4,889 | 1,574 | |
Cash and cash equivalents, beginning of year | 29,224 | 24,335 | 22,761 | |
Cash and cash equivalents, end of year | 22,394 | 29,224 | 24,335 | |
Supplemental disclosure of cash flow information: | ||||
Cash paid for income taxes | 5,152 | 9,597 | 5,163 | |
Cash paid for interest, net of capitalized interest | 3,992 | 4,158 | 4,245 | |
Cash paid for operating lease obligations | 51,175 | |||
Supplemental disclosure of non-cash investing and financing activities: | ||||
Operating lease assets obtained in exchange for operating lease (1) | [1] | 34,046 | ||
Property and equipment acquired and included in accounts payable | 7,076 | 10,360 | 3,876 | |
Stock-based compensation capitalized | [2] | $ 294 | $ 328 | $ 298 |
[1] | (1) Amount represents leases entered into during fiscal 2019 and does not include the adoption of Topic 842. | |||
[2] | Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on our Consolidated Balance Sheets. |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | 1. The Company and Summary of Significant Accounting Policies Description of Business BJ’s Restaurants, Inc. (referred to herein as the “Company,” “BJ’s,” “we,” “us” and “our”) was incorporated in California on October 1, 1991, to assume the management of five “BJ’s Chicago Pizzeria” restaurants and to develop additional BJ’s restaurants. As of December 31, 2019, w e owned and operated 208 restaurants located in 28 states. During fiscal 2019, we opened seven new restaurants and closed one smaller format restaurant in Balboa, California when its lease expired Several of our locations, in addition to our two brewpub locations in Texas, brew our signature, proprietary craft BJ’s beer All of our other restaurants receive their BJ’s beer either from one of our restaurant brewing operations, our Texas brewpubs and/or independent third party brewers using our proprietary recipes. Basis of Presentation The accompanying consolidated financial statements include the accounts of BJ’s Restaurants, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The financial statements presented herein include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the financial condition, results of operations and cash flows for the period. The consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Company had no components of other comprehensive income (loss) during any of the years presented, as such; a consolidated statement of comprehensive income (loss) is not presented. The preparation of financial statements in conformity U.S. GAAP requires management to make estimates and assumptions for the reporting period and as of the financial statement date. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Our fiscal year consists of 52 or 53 weeks and ends on the Tuesday closest to December 31 for financial reporting purposes. Fiscal year 2019, 2018 and 2017 ended on December 31, 2019, January 1, 2019, and January 2, 2018, respectively, and consisted of 52 weeks of operations. Segment Disclosure The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting, establishes standards for disclosures about products and services, geographic areas and major customers. We currently operate in one operating segment: casual dining company-owned restaurants. Additionally, we operate in one geographic area: the United States of America. Recently Issued Accounting Standards In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We will adopt this standard during the first quarter of fiscal 2020. The adoption of ASU 2016-13 will not have a material impact on our consolidated financial statements. In August 2018, the FASB, issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This update clarifies the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 will be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We will adopt this standard during the first quarter of fiscal 2020. The adoption of ASU 2018-15 will not have a material impact on our consolidated financial statements. Recently Adopted Accounting Standards On January 2, 2019, the first day of fiscal 2019, we adopted ASU 2016-02, Leases (Topic 842), along with related clarifications and improvements. This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding operating lease asset on the balance sheet. The guidance requires disclosure of key information about leasing arrangements that is intended to give financial statement users the ability to assess the amount, timing, and potential uncertainty of cash flows related to leases. We elected the optional transition method to apply the standard as of the effective date and therefore, we have not applied the standard to the comparative periods presented on our consolidated financial statements. The practical expedient utilized as of January 2, 2019 were as follows: Practical expedient package We have not reassessed whether any expired or existing contracts are, or contain, leases. We have not reassessed the lease classification for any expired or existing leases. We have not reassessed initial direct costs for any expired or existing leases. Hindsight practical expedient We have not elected the hindsight practical expedient, which permits the use of hindsight when determining lease term, including option periods, and impairment of operating lease assets. Related to the adoption of Topic 842, our policy elections were as follows: Separation of lease and non-lease components We elected to account for lease and non-lease components as a single component for office and beverage gas equipment. Short-term policy We have elected the short-term lease recognition exemption for all classes of underlying assets. Leases with an initial term of 12 months or less and that do not include an option to purchase the underlying asset that we are reasonably certain to exercise are not recorded on the balance sheet. Expense for short-term leases is recognized on a straight-line basis over the lease term. The impact on our consolidated opening balance sheet was as follows: January 1, 2019 Topic 842 Adjustments January 2, 2019 (1) (unaudited) Assets Current assets: Cash and cash equivalents $ 29,224 $ — $ 29,224 Accounts and other receivables, net 31,190 — 31,190 Inventories, net 10,133 — 10,133 Prepaid expenses and other current assets 7,940 — 7,940 Total current assets 78,487 — 78,487 Property and equipment, net 582,754 — 582,754 Operating lease assets — 377,035 377,035 Goodwill 4,673 — 4,673 Other assets, net 29,193 — 29,193 Total assets $ 695,107 $ 377,035 $ 1,072,142 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 36,505 $ — $ 36,505 Accrued expenses 113,920 (6,869 ) 107,051 Current operating lease obligation — 30,529 30,529 Total current liabilities 150,425 23,660 174,085 Long-term operating lease obligation — 443,316 443,316 Deferred income taxes, net 15,977 6,960 22,937 Deferred rent 35,088 (35,088 ) — Deferred lease incentives 54,264 (54,264 ) — Long-term debt 95,000 — 95,000 Other liabilities 35,132 (27,051 ) 8,081 Total liabilities 385,886 357,533 743,419 Commitments and contingencies Shareholders’ equity: Preferred stock, 5,000 shares authorized, none issued or outstanding — — — Common stock, no — — — Capital surplus 64,342 — 64,342 Retained earnings 244,879 19,502 (2) 264,381 Total shareholders’ equity 309,221 19,502 328,723 Total liabilities and shareholders’ equity $ 695,107 $ 377,035 $ 1,072,142 (1) Adjustments represent non-cash activities for Consolidated Statements of Cash Flow purposes. (2) Primarily composed of an increase of $28.8 million for deferred sale-leaseback gains no longer amortizable, a decrease of $2.3 million to impair the operating lease asset related to previously impaired properties and a $7.0 million decrease for the deferred tax impact of the cumulative effect adjustments. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments and money market funds with an original maturity of three months or less when purchased. Cash and cash equivalents are stated at cost, which approximates fair market value. Concentration of Credit Risk Financial instruments which subject us to a concentration of credit risk principally consist of cash and cash equivalents and receivables. We currently maintain our day-to-day operating cash balances with a major financial institution. At times, our operating cash balances may be in excess of the FDIC insurance limit. Inventories Inventories are comprised primarily of food and beverage products and are stated at the lower of cost (first-in, first-out) or net realizable value. Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives. Leasehold improvements are amortized over the estimated useful life of the asset or the lease term, including reasonably assured renewal periods or exercised options, of the respective lease, whichever is shorter. Renewals and betterments that materially extend the life of an asset are capitalized while maintenance and repair costs are expensed as incurred. When property and equipment are sold or otherwise disposed of, the asset accounts and related accumulated depreciation or amortization accounts are relieved, and any gain or loss is included in earnings. Depreciation and amortization are recorded using the straight-line method over the following estimated useful lives: Furniture and fixtures 10 years Equipment 5‑10 years Brewing equipment 10-20 years Building improvements the shorter of 20 years or the remaining lease term Leasehold improvements the shorter of the useful life or the lease term, including reasonably assured renewal periods Goodwill We perform impairment testing annually, during the fourth quarter, and more frequently if factors and circumstances indicate impairment may have occurred. When evaluating goodwill for impairment, we first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying value. We currently have one reporting unit, which is casual dining company-owned restaurants in the United States of America. If it is concluded that the fair value of our reporting unit is less than the goodwill carrying value, we estimate the fair value of the reporting unit and compare it to the carrying value of the reporting unit, including goodwill. If the carrying value of the reporting unit is greater than the estimated fair value, an impairment charge is recorded for the difference between the implied fair value of goodwill and its carrying amount. To calculate the implied fair value of the reporting unit’s goodwill, the fair value of the reporting unit is first allocated to all of the other assets and liabilities of that unit based on their relative fair values. The excess of the reporting unit’s fair value over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. An impairment loss would be recognized when the carrying amount of goodwill exceeds its implied fair value. This adjusted carrying value becomes the new goodwill accounting basis value. We did not record any impairment to goodwill during fiscal 2019, 2018 or 2017. Long-Lived Assets We assess the potential impairment of our long-lived assets whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. These assets are generally reviewed for impairment at the lowest cash generating level, which is on a restaurant by restaurant basis. Factors considered include, but are not limited to, significant underperformance by the restaurant relative to expected historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for the overall business, and significant negative industry or economic trends. The recoverability is assessed by comparing the carrying value of the asset to the undiscounted cash flows expected to be generated by the asset. If the carrying amount is greater than the anticipated Self-Insurance Liability We retain large deductibles or self-insured retentions for a portion of our general liability insurance and our employee workers’ compensation programs. We maintain coverage with a third party insurer to limit our total exposure for these programs. The accrued liability associated with these programs is based on our estimate of the ultimate costs within our retention amount to settle known claims as well as claims incurred but not yet reported to us (“IBNR claims”) as of the balance sheet date. Our estimated liability is based on information provided by a third party actuary, combined with our judgments regarding a number of assumptions and factors, including the frequency and severity of claims, our claims development history, case jurisdiction, related legislation, and our claims settlement practice. Revenue Recognition Revenues from food and beverage sales at restaurants are recognized when payment is tendered at the point of sale. Amounts paid with a credit card are recorded in accounts and other receivables until payment is collected from the credit card processor. We sell gift cards which do not have an expiration date and we do not deduct non-usage fees from outstanding gift card balances. Gift card sales are recorded as a liability and recognized as revenues upon redemption in our restaurants. Deferred gift card revenue, included in “Accrued expenses” on the accompanying Consolidated Balance Sheets, was $19.1 million and $17.2 million as of December 31, 2019 and January 1, 2019, respectively. Estimated gift card breakage is recorded as “Revenues” on our Consolidated Statements of Income and recognized in proportion to our historical redemption pattern. The estimated gift card breakage is based on when the likelihood of redemption becomes remote, which has typically been 24 months after the original gift card issuance date. Our “BJ’s Premier Rewards” customer loyalty program enables participants to earn points for qualifying purchases that can be redeemed for food and beverages in the future. We allocate the transaction price between the goods delivered and the future goods that will be delivered, on a relative standalone selling price basis, and defer the revenues allocated to the points, less expected expirations, until such points are redeemed. Cost of Sales Cost of sales is comprised of food and beverage costs, including the cost to produce and distribute our proprietary craft beer, soda and ciders. The components of cost of sales are variable and typically fluctuate directly with sales volumes, but may be impacted by changes in commodity prices or promotional activities. Sales Taxes Revenues are presented net of sales tax collected. The obligations to the appropriate tax authorities are included in other accrued expenses until the taxes are remitted to the appropriate taxing authorities. Advertising Costs Advertising costs are expensed as incurred. Advertising expense for fiscal 2019, 2018, and 2017 was approximately $25.2 million, $24.5 million and $21.0 million, respectively. Advertising costs are primarily included in “Occupancy and operating” expenses on our Consolidated Statements of Income. Income Taxes We utilize the liability method of accounting for income taxes. Deferred income taxes are recognized based on the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted We provide for income taxes based on our expected federal and state tax liabilities. Our estimates include, but are not limited to, effective federal, state and local income tax rates, allowable tax credits for items such as FICA taxes paid on reported tip income and estimates related to depreciation expense allowable for tax purposes. We usually file our income tax returns several months after our fiscal year-end. All tax returns are subject to audit by federal and state governments for years after the returns are filed, and could be subject to differing interpretations of the tax laws. We recognize the impact of a tax position in our financial statements if that position is more likely than not of being sustained through an audit, based on the technical merits of the position. Interest and penalties related to uncertain tax positions are included in “I ncome tax expense (benefit)” on our Consolidated Statements of Income . Restaurant Opening Expense Restaurant payroll, supplies, training, other start-up costs and rent expense incurred prior to the opening of a new restaurant are expensed as incurred. Leases We determine if a contract contains a lease at inception. Our material operating leases consist of restaurant locations and office space. U.S. GAAP requires that our leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date, and the lease term used in the evaluation includes the non-cancellable period for which we have the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option would result in an economic penalty. All of our restaurant leases and office space are classified as operating leases. We do not have any finance leases. We disburse cash for leasehold improvements, furniture and fixtures and equipment to build out and equip our leased premises. Tenant improvement allowance incentives may be available to partially offset the cost of developing and opening the related restaurants, pursuant to agreed-upon terms in our leases. Tenant improvement allowances can take the form of cash payments upon the opening of the related restaurants, full or partial credits against minimum or percentage rents otherwise payable by us, or a combination thereof. All tenant improvement allowances received by us are recorded as a contra operating lease asset and amortized over the term of the lease. The lease term used for straight-line rent expense is calculated from the commencement date (the date we take possession of the premises) through the lease termination date (including any options where exercise is reasonably certain and failure to exercise such option would result in an economic penalty). We expense rent from commencement date through restaurant open date as preopening expense. Once a restaurant opens for business, we record straight-line rent expense plus any additional variable contingent rent expense to the extent it is due under the lease agreement. There is potential for variability in the rent holiday period, which begins on the commencement date and ends on the restaurant open date, during which no cash rent payments are typically due under the terms of the lease. Factors that may affect the length of the rent holiday period generally pertain to construction related delays. Extension of the rent holiday period due to delays in restaurant opening will result in greater preopening rent expense recognized during the rent holiday period and lesser occupancy expense during the rest of the lease term (post-opening). We record a lease liability equal to the present value of future payments discounted at the estimated fully collateralized incremental borrowing rate (discount rate) corresponding with the lease term. Our lease liability calculation is the total rent payable during the lease term, including rent escalations in which the amount of future rent is certain or fixed on the straight-line basis over the term of the lease (including the rent holiday period beginning upon our possession of the premises, and any fixed payments stated in the lease). A corresponding operating lease asset is also recorded equaling the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any lease incentives received. The difference between the minimum rents paid and the straight-line rent is reflected within the associated operating lease asset. Certain leases contain provisions that require additional rent payments based upon restaurant sales volume (“variable lease cost”). Contingent rent is accrued each period as the liabilities are incurred, in addition to the straight-line rent expense noted above. This results in some variability in occupancy expense as a percentage of revenues over the term of the lease in restaurants where we pay contingent rent. Management makes judgments regarding the reasonably certain lease term for each restaurant property lease, which can impact the classification and accounting for a lease as finance or operating, the rent holiday and/or escalations in payments that are taken into consideration when calculating straight-line rent, and the term over which leasehold improvements for each restaurant are amortized. These judgments may produce materially different amounts of depreciation, amortization and rent expense than would be reported if different assumed lease terms were used. Net Income Per Share Basic net income per share is computed by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if in-the-money stock options issued by us to sell common stock at set prices were exercised and if restrictions on restricted stock units issued by us were to lapse (collectively, equity awards) using the treasury stock method. The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards that were included in the dilutive net income per share computation (in thousands): Fiscal Year 2019 2018 2017 Numerator: Net income for basic and diluted net income per share $ 45,238 $ 50,810 $ 44,780 Denominator: Weighted-average shares outstanding - basic 20,285 20,958 21,374 Dilutive effect of equity awards 307 626 398 Weighted-average shares outstanding - diluted 20,592 21,584 21,772 At December 31, 2019, January 1, 2019, and January 2, 2018, there were approximately 0.5 million, 0.03 million, and 0.6 million shares of common stock equivalents, respectively, that have been excluded from the calculation of diluted net income per share because they are anti-dilutive. Stock‑Based Compensation Under our shareholder approved stock-based compensation plans, we have granted incentive stock options, non-qualified stock options, and restricted stock units (“RSUs”), including performance and time-based restricted stock units, that generally vest over three to five years. Incentive and non-qualified stock options expire ten years from the date of grant. Stock-based compensation is recorded in accordance with U.S. GAAP based on the underlying estimated fair value of the awards granted. In valuing stock options, we are required to make certain assumptions and judgments regarding the inputs to the Black-Scholes option-pricing model. These inputs include expected volatility, risk free interest rate, expected option life, dividend yield and expected vesting percentage. These estimations and judgments involve many different variables that, in many cases, are outside of our control. Changes in these variables may significantly impact the compensation cost recognized for these grants resulting in a significant impact to our financial results. The tax benefits resulting from tax deductions in excess of the compensation cost recognized (excess tax benefits) are classified as “Cash flows from financing activities” within our Consolidated Statements of Cash Flows and “Income tax expense (benefit)” within the Consolidated Statements of Income for the period realized. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition The liability related to our gift card and loyalty program, included in “Accrued expenses,” on our Consolidated Balance Sheets is as follows (in thousands): December 31, 2019 January 1, 2019 Gift card liability $ 19,106 $ 17,201 Deferred loyalty revenue (post-adoption of ASU 2016-10) $ 8,320 $ 10,066 Revenue recognized on our Consolidated Statements of Income for the redemption of gift cards and loyalty rewards deferred at the beginning of each respective fiscal year is as follows (in thousands): Fiscal Year 2019 2018 2017 Revenue recognized from gift card liability $ 12,064 $ 9,868 $ 7,346 (1) Revenue recognized from customer loyalty program $ 9,363 $ 7,326 $ — (2) (1) Prior to the adoption of ASU 2016-10, gift card breakage was recorded as other income and included within “Other (expense) income, net” on our Consolidated Statements of Income and therefore not recognized as revenue. (2) Prior to the adoption of ASU 2016-10, loyalty rewards were recorded as marketing expense and included in “Occupancy and operating” on our Consolidated Statements of Income. |
Accounts and Other Receivables
Accounts and Other Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts and Other Receivables | 3 . Accounts and Other Receivables Accounts and other receivables consisted of the following (in thousands): December 31, 2019 January 1, 2019 Credit cards $ 7,922 $ 18,171 Third party gift card sales 4,335 3,969 Tenant improvement allowances 3,238 3,704 Income taxes 5,659 4,487 Other 1,043 859 $ 22,197 $ 31,190 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consisted of the following (in thousands): December 31, 2019 January 1, 2019 Land $ 6,833 $ 8,412 Building improvements 381,721 367,020 Leasehold improvements 289,272 271,021 Furniture and fixtures 149,300 141,887 Equipment 318,495 298,025 1,145,621 1,086,365 Less accumulated depreciation and amortization (584,572 ) (523,635 ) 561,049 562,730 Construction in progress 22,590 20,024 Property and equipment, net $ 583,639 $ 582,754 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 5. Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, 2019 January 1, 2019 Payroll related $ 27,879 $ 32,249 Workers’ compensation and general liability 21,667 20,929 Deferred revenue from gift cards 19,106 17,201 Deferred loyalty revenue (post-adoption of ASU 2016-10) 8,320 10,066 Sales taxes 6,892 6,858 Other taxes 3,960 4,872 Deferred lease incentives - current (1) — 5,181 Other current rent related 2,469 2,470 Utilities 2,115 2,089 Merchant cards 1,777 1,724 Other 8,630 10,281 $ 102,815 $ 113,920 (1) Subsequent to the adoption of Topic 842, deferred lease incentives are netted and recorded against the operating lease asset. See Note 1 for further information. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 6. Leases Related to the adoption of Topic 842, our policy elections were as follows: Separation of lease and non-lease components We elected to account for lease and non-lease components as a single component for office and beverage gas equipment Short-term policy We have elected the short-term lease recognition exemption for all classes of underlying assets. L eases with an initial term of 12 months or less and that do not include an option to purchase the underlying asset that we are reasonably certain to exercise are not recorded on the balance sheet. E for short-term leases To determine the incremental borrowing rates used to discount the lease payments, the Company estimated its synthetic credit rating and utilized market data for similarly situated companies. Upon the implementation date of January 2, 2019, the Company’s estimated rates were applied based on the remaining lease term of each respective lease. Rates are updated quarterly and applied to new leases entered into during the quarter. Weighted-average lease terms and discount rates as of December 31, 2019 were as follows: Weighted-average remaining lease term 12.8 Years Weighted-average discount rate 5.6% Lease cost included in “Occupancy & Operating” costs on the Consolidated Statements of Income consisted of the following (in thousands): Fiscal Year 2019 Lease cost $ 54,329 Variable lease cost 3,017 Total lease costs $ 57,346 Operating lease obligation maturities as of December 31, 2019 were as follows (in thousands): 2020 $ 58,209 2021 58,028 2022 57,888 2023 55,933 2024 52,704 Thereafter 362,148 Total lease payments 644,910 Less: imputed interest (164,383 ) Present value of operating lease obligations $ 480,527 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7 . Commitments and Contingencies Legal Proceedings We are subject to lawsuits, administrative proceedings and demands that arise in the ordinary course of our business and which typically involve claims from customers, employees and others related to operational, employment, real estate and intellectual property issues common to the foodservice industry. A number of these claims may exist at any given time. We retain a substantial portion of our workers’ compensation and general liability costs through self-insured retentions and large deductibles. We estimate the liability for these programs through the use of third party actuarial analysis and we maintain coverage with a third party insurer to limit our total exposure. We believe that most of our customer claims will be covered by our general liability insurance, subject to coverage limits and the portion of such claims that are self-insured. Punitive damages awards and employee unfair practice claims, however, are not covered by our general liability insurance. To date, we have not been ordered to pay punitive damages with respect to any claims, but there can be no assurance that punitive damages will not be awarded with respect to any future claims. We could be affected by adverse publicity resulting from allegations in lawsuits, claims and proceedings, regardless of whether these allegations are valid or whether we are ultimately determined to be liable. We currently believe that the final disposition of these types of lawsuits, proceedings and claims will not have a material adverse effect on our financial position, results of operations or liquidity. It is possible, however, that our future results of operations for a particular quarter or fiscal year could be impacted by changes in circumstances relating to lawsuits, proceedings or claims. Letters of Credit We have irrevocable standby letters of credit outstanding, as required under our workers’ compensation insurance arrangements, of $18.1 million as of December 31, 2019. Our standby letters of credit automatically renew each October 31 for one year unless 30 days’ notice, prior to such renewal date, is given by the financial institution that provides the letters. The standby letters of credit issued under our Credit Facility reduce the amount available for borrowing. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 8. Long-Term Debt Line of Credit Our Credit Facility, which matures on November 18, 2021, provides us with revolving loan commitments totaling $250 million, of which $50 million may be used for the issuance of letters of credit. Availability under the Credit Facility is reduced by outstanding letters of credit, which are used to support our self-insurance programs. Our obligations under the Credit Facility are unsecured. As of December 31, 2019, there were borrowings of $143.0 million and letters of credit totaling approximately $18.1 million outstanding under the Credit Facility. Available borrowings under the Credit Facility were $88.9 million as of December 31, 2019. The Credit Facility bears interest at our choice of LIBOR plus a percentage not to exceed 1.75%, or at a rate ranging from Bank of America’s prime rate to 0.75% above Bank of America’s prime rate, based on our level of lease and debt obligations as compared to EBITDA plus lease expenses. The weighted average interest rate during fiscal 2019 was approximately 3.5%. The Credit Facility contains provisions requiring us to maintain compliance with certain covenants, including a Fixed Charge Coverage Ratio and a Lease Adjusted Leverage Ratio. At December 31, 2019, we were in compliance with these covenants. Interest expense and commitment fees under the Credit Facility were approximately $4.6 million, $4.8 million and $4.5 million, for fiscal 2019, 2018 and 2017, respectively. We also capitalized approximately $0.3 and $0.1 million of interest expense related to new restaurant construction during fiscal 2019 and 2018, respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 9. Shareholders’ Equity Preferred Stock We are authorized to issue 5.0 million shares of one or more series of preferred stock and we are authorized to determine the rights, preferences, privileges and restrictions to be granted to, or imposed upon, any such series, including the voting rights, redemption provisions (including sinking fund provisions), dividend rights, dividend rates, liquidation rates, liquidation preferences, conversion rights and the description and number of shares constituting any wholly unissued series of preferred stock. No shares of preferred stock were issued or outstanding at December 31, 2019 or January 1, 2019. We currently have no plans to issue shares of preferred stock. Common Stock Shareholders are entitled to one vote for each share of common stock held of record. Pursuant to the requirements of California law, shareholders are entitled to accumulate votes in connection with the election of directors. Shareholders of our outstanding common stock are entitled to receive dividends if and when declared by the Board of Directors. Cash Dividends During each of the first three quarters of fiscal 2019, our Board of Directors authorized and declared a quarterly cash dividend of $0.12 per share of common stock. In the fourth quarter of fiscal 2019, our Board of Directors authorized and declared a quarterly cash dividend of $0.13 per share of common stock. While we intend to pay quarterly cash dividends, any future decisions to pay, increase or decrease cash dividends will be reviewed quarterly and declared by the Board of Directors at its discretion. Debt instruments that we enter into in the future may contain, covenants that place limitations on the amount of dividends we may pay. Stock Repurchases During fiscal 2019, we repurchased and retired approximately 2.1 million shares of our common stock at an average price of $39.93 per share for a total of $82.8 million, which is recorded as a reduction in common stock, with any excess charged to retained earnings. In March 2019, our Board of Directors approved an expansion of our share repurchase program by $100 million. As of December 31, 2019, we have approximately $39.5 million remaining under the current $500 million share repurchase plan approved by our Board of Directors. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes Income tax expense (benefit) for the last three fiscal years consists of the following (in thousands): Fiscal Year 2019 2018 2017 Current: Federal $ 1,907 $ 2,031 $ 4,631 State 1,922 1,968 2,465 3,829 3,999 7,096 Deferred: Federal (2,652 ) (3,142 ) (15,727 ) State (121 ) 330 (759 ) (2,773 ) (2,812 ) (16,486 ) Income tax expense (benefit) $ 1,056 $ 1,187 $ (9,390 ) Income tax expense (benefit) for the last three fiscal years differs from the amount that would result from applying the federal statutory rate as follows: Fiscal Year 2019 2018 2017 Income tax at statutory rates 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 3.0 3.3 3.5 Permanent differences (0.6 ) (5.1 ) (0.4 ) Income tax credits (20.1 ) (16.0 ) (18.7 ) Prior year tax credit true-up (0.7 ) (0.8 ) (1.1 ) Change in statutory rate — — (44.4 ) Other, net (0.3 ) (0.1 ) (0.4 ) 2.3 % 2.3 % (26.5 )% The components of the deferred income tax asset (liability) consist of the following (in thousands): December 31, 2019 January 1, 2019 Deferred income tax asset: Gift cards $ 1,730 $ 1,542 Accrued expenses 9,912 11,434 Other 4,516 3,414 Deferred revenues 20 7,736 Stock-based compensation 3,976 3,740 Deferred rent 126,882 8,616 Income tax credits 12,949 7,990 Net operating losses 1,744 1,334 State tax 473 434 Subtotal current deferred income tax asset 162,202 46,240 Valuation allowance (282 ) (248 ) Total current deferred income tax asset 161,920 45,992 Deferred income tax liability: Property and equipment (59,872 ) (56,551 ) Intangible assets (1,529 ) (1,458 ) Operating lease assets (116,298 ) — Smallwares (4,385 ) (3,960 ) Total non-current deferred income tax liability (182,084 ) (61,969 ) Net deferred income tax liability $ (20,164 ) $ (15,977 ) At December 31, 2019, we had federal and California income tax credit carryforwards of approximately $13.2 million and $0.7 million, respectively, consisting primarily of the credit for FICA taxes paid on reported employee tip income and California enterprise zone credits. The FICA tax credits will begin to expire in 2038 and the California enterprise zone credits will begin to expire in 2023. As of December 31, 2019, and January 1, 2019, we have recorded a valuation allowance against certain state net operating loss and tax credit carryforwards of $0.3 million and $0.2 million, respectively, net of the federal benefit which are not more likely than not to be realized prior to expiration. We recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2019 and January 1, 2019, we had accrued $0.04 million and $0.05 million, respectively, for interest and penalties with respect to uncertain tax positions. As of December 31 2019, our accrual for unrecognized tax benefits was approximately $1.3 million, of which approximately $0.9 million, if reversed would impact our A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Fiscal Year 2019 2018 2017 Gross unrecognized tax benefits at beginning of year $ 1,532 $ 1,516 $ 1,245 Increases for tax positions taken in prior years 10 69 110 Decreases for tax positions taken in prior years (5 ) (49 ) (4 ) Increases for tax positions taken in the current year 130 87 200 Lapse in statute of limitations (322 ) (91 ) (35 ) Gross unrecognized tax benefits at end of year $ 1,345 $ 1,532 $ 1,516 Our uncertain tax positions are related to tax years that remain subject to examination by tax agencies. As of December 31, 2019, the earliest tax year still subject to examination by the Internal Revenue Service is 2016. The earliest year still subject to examination by a significant state or local taxing jurisdiction is 2015. On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law substantially amending the Internal Revenue Code of 1986. The TCJA made significant changes to the taxation of corporations such as the reduction of the highest corporate marginal tax rate from 35 % to 21 %, additional limitations on certain deductions for executive compensation, introducing an additional capital investment deduction, modifying rules for the deduction of interest expense, and modifying the rules regarding the utilization of net operating loss carryforwards . As a result of the change in tax law, we recognized a $ 15.7 million tax benefit in fiscal 2017 related to the re-measurement of our net deferred tax obligations to the new federal tax rate. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Plans | 11. Stock-Based Compensation Plans Our current shareholder approved stock-based compensation plan is the Equity Incentive Plan (as amended from time to time, “the Plan”). Under the Plan, we may issue shares of our common stock to employees, officers, directors and consultants. We have granted incentive stock options, non-qualified stock options, and performance and time-based restricted stock units. Stock options and stock appreciation rights, if any, are charged against the Plan share reserve on the basis of one share for each share granted. Other types of grants, including RSUs, are currently charged against the Plan share reserve on the basis of 1.5 shares for each share granted. The Plan also contains other limits on the terms of incentive grants such as limits on the number that can be granted to an employee during any fiscal year. All options granted under the Plan expire within 10 years of their date of grant. Under the Plan, we issue non-qualified stock options as well as time-based and performance-based RSUs to vice presidents and above. We issue time-based RSUs and/or non-qualified stock options to other support employees. We also issue RSUs, and previously issued non-qualified stock options, in connection with the BJ’s Gold Standard Stock Ownership Program (the “GSSOP”). The GSSOP is a long-term equity incentive program for our restaurant general managers, executive kitchen managers, directors of operations and directors of kitchen operations. GSSOP grants are dependent on the length of each participant’s service with us and position. All GSSOP participants are required to remain in good standing during their vesting period. The Plan permits our Board of Directors to set the vesting terms and exercise period for awards at their discretion. Stock options and time-based RSUs vest ratably over three or five years for non-GSSOP participants and either cliff vest at five years or cliff vest at 33% on the third anniversary and 67% on the fifth anniversary for GSSOP participants. Performance-based RSUs generally cliff vest on the third anniversary of the grant date in an amount from 0% to 150% of the grant quantity, dependent on the level of performance target achievement. The following table presents the stock-based compensation recognized within our consolidated financial statements (in thousands): Fiscal Year 2019 2018 2017 Labor and benefits $ 2,372 $ 2,253 $ 1,877 General and administrative $ 6,546 $ 6,003 $ 5,069 Capitalized (1) $ 294 $ 328 $ 298 (1) Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on our Consolidated Balance Sheets. Stock Options The fair value of each stock option grant was estimated on the grant date using the Black‑Scholes option-pricing model with the following weighted average assumptions: Fiscal Year 2019 2018 2017 Expected volatility 34.5 % 33.6 % 34.7 % Risk free interest rate 2.53 % 2.32 % 1.87 % Expected option life 5 years 5 years 5 years Dividend yield 1.50 % 1.50 % 1.60 % Fair value of options granted $ 15.67 $ 10.77 $ 12.02 The exercise price of our stock options under our stock-based compensation plan is required to equal or exceed the fair value of our common stock at market close on the option grant date or the most recent trading day when grants take place on market holidays. The following table presents stock option activity: Options Outstanding Options Exercisable Shares (in thousands) Weighted Average Exercise Price Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life Outstanding at January 3, 2017 1,227 $ 31.95 802 $ 27.73 4.5 Granted 173 $ 36.08 Exercised (57 ) $ 24.07 Forfeited (32 ) $ 38.83 Outstanding at January 2, 2018 1,311 $ 32.68 926 $ 30.02 4.0 Granted 177 $ 37.77 Exercised (876 ) $ 29.85 Forfeited (24 ) $ 39.43 Outstanding at January 1, 2019 588 $ 38.14 189 $ 37.41 5.0 Granted 107 $ 53.09 Exercised (37 ) $ 28.89 Forfeited (13 ) $ 40.88 Outstanding at December 31, 2019 645 $ 41.09 340 $ 38.96 5.5 Information relating to significant option groups outstanding as of December 31, 2019, is as follows (shares in thousands): Options Outstanding Options Exercisable Range of Exercise Prices Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Exercisable Weighted Average Exercise Price $29.88 – $34.14 72 3.95 $ 31.27 68 $ 31.33 $34.24 – $35.78 20 3.45 $ 35.18 17 $ 35.15 $35.95 – $35.95 110 7.04 $ 35.95 62 $ 35.95 $37.03 – $37.58 8 4.58 $ 37.33 6 $ 37.33 $37.70 – $37.70 160 8.04 $ 37.70 50 $ 37.70 $38.24 – $42.41 66 6.15 $ 42.13 56 $ 42.25 $42.94 – $45.92 22 4.40 $ 44.74 16 $ 44.80 $47.04 – $47.04 70 5.04 $ 47.04 52 $ 47.04 $48.64 – $52.98 16 4.70 $ 51.28 13 $ 51.12 $53.22 – $53.22 101 9.04 $ 53.22 — $ — $29.88 – $53.22 645 6.66 $ 41.09 340 $ 38.96 As of December 31, 2019, total unrecognized stock-based compensation expense related to non-vested stock options was $1.8 million, which is generally expected to be recognized over the next five years. Time-Based Restricted Stock Units The following table presents time-based restricted stock unit activity: Shares (in Weighted Average Fair Value Outstanding at January 3, 2017 460 $ 39.75 Granted 200 $ 35.72 Vested or released (89 ) $ 42.34 Forfeited (71 ) $ 39.51 Outstanding at January 2, 2018 500 $ 37.72 Granted 154 $ 47.85 Vested or released (102 ) $ 35.66 Forfeited (58 ) $ 40.70 Outstanding at January 1, 2019 494 $ 40.99 Granted 179 $ 45.88 Vested or released (118 ) $ 35.57 Forfeited (46 ) $ 44.49 Outstanding at December 31, 2019 509 $ 43.65 The fair value of our time-based RSUs is equal to the fair value of our common stock at market close on the date of grant or the most recent trading day when grants take place on market holidays. The fair value of each time-based RSU is expensed over the vesting period (e.g., three or five years). As of December 31, 2019 Performance-Based Restricted Stock Units The following table presents performance-based restricted stock unit activity: Shares (in Weighted Average Fair Value Outstanding at January 3, 2017 54 $ 37.87 Granted 40 $ 35.95 Vested or released — $ — Forfeited (26 ) $ 39.12 Outstanding at January 2, 2018 68 $ 38.68 Granted 38 $ 37.70 Vested or released — $ — Forfeited (1 ) $ 38.66 Outstanding at January 1, 2019 105 $ 38.32 Granted 31 $ 53.22 Vested or released (28 ) $ 42.41 Forfeited (3 ) $ 43.13 Outstanding at December 31, 2019 105 $ 41.42 The fair value of our performance-based RSUs is equal to the fair value of our common stock at market close on the date of grant or the most recent trading day when grants take place on market holidays. The fair value of each performance-based RSU is expensed based on management’s current estimate of the level that the performance goal will be achieved. As of December 31, 2019 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans We maintain a voluntary, contributory 401(k) plan for eligible employees. Employees may elect to contribute up to the IRS maximum for the plan year. Additionally, eligible participants may also elect catch-up contributions as provided for by the IRS. Our executive officers and other highly compensated employees are not eligible to participate in the 401(k) plan. Employee contributions are matched by us at a rate of 33% for the first 6% of deferred earnings. We contributed approximately $ million in fiscal 201 9 , 201 8, and 2017 . We also maintain a non-qualified deferred compensation plan (the “DCP”) for our executive officers and other highly compensated employees, as defined in the DCP, who are otherwise ineligible for participation in our 401(k) plan. The DCP allows participating employees to defer the receipt of a portion of their base compensation and up to 100% of their eligible bonuses. Additionally, the DCP allows for a voluntary company match as determined by our compensation committee. During fiscal 2019, there were no Company contributions made or accrued. We pay for related administrative costs, which were not material during fiscal 2019. Employee deferrals are deposited into a rabbi trust and the funds are generally invested in individual variable life insurance contracts owned by us that are specifically designed to informally fund savings plans of this nature. Our investment in variable life insurance contracts, reflected in “Other assets, net” on our Consolidated Balance Sheets, was $11.4 million and $7.2 million as of December 31, 2019 and January 1, 2019, respectively. Our obligation to participating employees, included in “Other liabilities” on the accompanying Consolidated Balance Sheets, was $11.2 million and $7.3 million as of December 31, 2019 and January 1, 2019, respectively. All income and expenses related to the rabbi trust are reflected in our Consolidated Statements of Income. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions James Dal Pozzo, the Chairman of the Board of the Jacmar Companies (“Jacmar”), is a member of our Board of Directors. Jacmar, through its affiliation with Distribution Market Advantage (“DMA”), a consortium of large, regional food distributors located throughout the United States, is currently our largest distributor of food, beverage, paper products and supplies. In 2006, we began using DMA to deliver the majority of our food products to our restaurants. In July 2017, after conducting a market evaluation, we entered into a new five-year Jacmar services our restaurants in California and Nevada, while other DMA distributors service our restaurants in all other states. Under the terms of our agreement with DMA, Jacmar is required to sell products to us at the same prices as the other DMA distributors. Jacmar does not provide us with any produce, liquor, wine or beer products, all of which are provided by other third party vendors and are included in “Cost of sales” on the Consolidated Statements of Income. The cost of food, beverage, paper products and supplies provided by Jacmar included within “Cost of sales” and “Occupancy and operating” expenses consisted of the following (in thousands): Fiscal Year 2019 2018 2017 Cost of sales: Third party suppliers $ 209,215 70.9 % $ 196,165 69.6 % $ 185,153 68.9 % Jacmar 85,794 29.1 85,788 30.4 83,554 31.1 Cost of sales $ 295,009 100.0 % $ 281,953 100.0 % $ 268,707 100.0 % Occupancy and operating: Third party suppliers $ 247,076 96.4 % $ 229,749 96.0 % $ 210,616 95.8 % Jacmar 9,307 3.6 9,697 4.0 9,247 4.2 Occupancy and operating $ 256,383 100.0 % $ 239,446 100.0 % $ 219,863 100.0 % The amounts included in accounts payables related to Jacmar consisted of the following (in thousands): December 31, 2019 January 1, 2019 Third party suppliers $ 20,879 $ 30,395 Jacmar 2,543 6,110 Total accounts payable $ 23,422 $ 36,505 |
Selected Consolidated Quarterly
Selected Consolidated Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Consolidated Quarterly Financial Data (Unaudited) | 14. Selected Consolidated Quarterly Financial Data (Unaudited) Our summarized unaudited consolidated quarterly financial data is the following (in thousands, except per share data): April 2, 2019 July 2, 2019 October 1, 2019 December 31, 2019 Total revenues $ 290,554 $ 301,090 $ 278,739 $ 291,067 Income from operations $ 13,785 $ 15,755 $ 3,270 $ 16,309 Net income $ 12,864 $ 14,192 $ 3,671 $ 14,511 Basic net income per share (1) $ 0.61 $ 0.69 $ 0.18 $ 0.76 Diluted net income per share (1) $ 0.60 $ 0.68 $ 0.18 $ 0.75 Cash dividends declared per common share $ 0.12 $ 0.12 $ 0.12 $ 0.13 April 3, 2018 July 3, 2018 October 2, 2018 January 1, 2019 Total revenues $ 278,523 $ 287,634 $ 270,268 $ 280,523 Income from operations $ 16,373 $ 19,120 $ 7,890 $ 14,187 Net income $ 14,664 $ 16,945 $ 8,516 $ 10,685 Basic net income per share (1) $ 0.71 $ 0.81 $ 0.40 $ 0.50 Diluted net income per share (1) $ 0.70 $ 0.79 $ 0.39 $ 0.49 Cash dividends declared per common share $ 0.11 $ 0.11 $ 0.11 $ 0.12 (1) Basic and diluted net income per share calculations for each quarter are based on the weighted average diluted shares outstanding for that quarter and may not sum to the full year total amount as presented on our Consolidated Statements of Income. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 15. Subsequent Event On February 18, 2020, our Board of Directors authorized and declared a cash dividend of $0.13 per share of common stock payable on March 24, 2020, to shareholders of record at the close of business on March 10, 2020. While we intend to pay regular quarterly cash dividends in future periods, any decisions to pay or to increase or decrease cash dividends will be reviewed quarterly and declared by the Board of Directors at its discretion. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business BJ’s Restaurants, Inc. (referred to herein as the “Company,” “BJ’s,” “we,” “us” and “our”) was incorporated in California on October 1, 1991, to assume the management of five “BJ’s Chicago Pizzeria” restaurants and to develop additional BJ’s restaurants. As of December 31, 2019, w e owned and operated 208 restaurants located in 28 states. During fiscal 2019, we opened seven new restaurants and closed one smaller format restaurant in Balboa, California when its lease expired Several of our locations, in addition to our two brewpub locations in Texas, brew our signature, proprietary craft BJ’s beer All of our other restaurants receive their BJ’s beer either from one of our restaurant brewing operations, our Texas brewpubs and/or independent third party brewers using our proprietary recipes. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of BJ’s Restaurants, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The financial statements presented herein include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the financial condition, results of operations and cash flows for the period. The consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Company had no components of other comprehensive income (loss) during any of the years presented, as such; a consolidated statement of comprehensive income (loss) is not presented. The preparation of financial statements in conformity U.S. GAAP requires management to make estimates and assumptions for the reporting period and as of the financial statement date. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Our fiscal year consists of 52 or 53 weeks and ends on the Tuesday closest to December 31 for financial reporting purposes. Fiscal year 2019, 2018 and 2017 ended on December 31, 2019, January 1, 2019, and January 2, 2018, respectively, and consisted of 52 weeks of operations. |
Segment Disclosure | Segment Disclosure The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting, establishes standards for disclosures about products and services, geographic areas and major customers. We currently operate in one operating segment: casual dining company-owned restaurants. Additionally, we operate in one geographic area: the United States of America. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We will adopt this standard during the first quarter of fiscal 2020. The adoption of ASU 2016-13 will not have a material impact on our consolidated financial statements. In August 2018, the FASB, issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This update clarifies the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 will be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We will adopt this standard during the first quarter of fiscal 2020. The adoption of ASU 2018-15 will not have a material impact on our consolidated financial statements. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards On January 2, 2019, the first day of fiscal 2019, we adopted ASU 2016-02, Leases (Topic 842), along with related clarifications and improvements. This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding operating lease asset on the balance sheet. The guidance requires disclosure of key information about leasing arrangements that is intended to give financial statement users the ability to assess the amount, timing, and potential uncertainty of cash flows related to leases. We elected the optional transition method to apply the standard as of the effective date and therefore, we have not applied the standard to the comparative periods presented on our consolidated financial statements. The practical expedient utilized as of January 2, 2019 were as follows: Practical expedient package We have not reassessed whether any expired or existing contracts are, or contain, leases. We have not reassessed the lease classification for any expired or existing leases. We have not reassessed initial direct costs for any expired or existing leases. Hindsight practical expedient We have not elected the hindsight practical expedient, which permits the use of hindsight when determining lease term, including option periods, and impairment of operating lease assets. Related to the adoption of Topic 842, our policy elections were as follows: Separation of lease and non-lease components We elected to account for lease and non-lease components as a single component for office and beverage gas equipment. Short-term policy We have elected the short-term lease recognition exemption for all classes of underlying assets. Leases with an initial term of 12 months or less and that do not include an option to purchase the underlying asset that we are reasonably certain to exercise are not recorded on the balance sheet. Expense for short-term leases is recognized on a straight-line basis over the lease term. The impact on our consolidated opening balance sheet was as follows: January 1, 2019 Topic 842 Adjustments January 2, 2019 (1) (unaudited) Assets Current assets: Cash and cash equivalents $ 29,224 $ — $ 29,224 Accounts and other receivables, net 31,190 — 31,190 Inventories, net 10,133 — 10,133 Prepaid expenses and other current assets 7,940 — 7,940 Total current assets 78,487 — 78,487 Property and equipment, net 582,754 — 582,754 Operating lease assets — 377,035 377,035 Goodwill 4,673 — 4,673 Other assets, net 29,193 — 29,193 Total assets $ 695,107 $ 377,035 $ 1,072,142 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 36,505 $ — $ 36,505 Accrued expenses 113,920 (6,869 ) 107,051 Current operating lease obligation — 30,529 30,529 Total current liabilities 150,425 23,660 174,085 Long-term operating lease obligation — 443,316 443,316 Deferred income taxes, net 15,977 6,960 22,937 Deferred rent 35,088 (35,088 ) — Deferred lease incentives 54,264 (54,264 ) — Long-term debt 95,000 — 95,000 Other liabilities 35,132 (27,051 ) 8,081 Total liabilities 385,886 357,533 743,419 Commitments and contingencies Shareholders’ equity: Preferred stock, 5,000 shares authorized, none issued or outstanding — — — Common stock, no — — — Capital surplus 64,342 — 64,342 Retained earnings 244,879 19,502 (2) 264,381 Total shareholders’ equity 309,221 19,502 328,723 Total liabilities and shareholders’ equity $ 695,107 $ 377,035 $ 1,072,142 (1) Adjustments represent non-cash activities for Consolidated Statements of Cash Flow purposes. (2) Primarily composed of an increase of $28.8 million for deferred sale-leaseback gains no longer amortizable, a decrease of $2.3 million to impair the operating lease asset related to previously impaired properties and a $7.0 million decrease for the deferred tax impact of the cumulative effect adjustments. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments and money market funds with an original maturity of three months or less when purchased. Cash and cash equivalents are stated at cost, which approximates fair market value. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which subject us to a concentration of credit risk principally consist of cash and cash equivalents and receivables. We currently maintain our day-to-day operating cash balances with a major financial institution. At times, our operating cash balances may be in excess of the FDIC insurance limit. |
Inventories | Inventories Inventories are comprised primarily of food and beverage products and are stated at the lower of cost (first-in, first-out) or net realizable value. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives. Leasehold improvements are amortized over the estimated useful life of the asset or the lease term, including reasonably assured renewal periods or exercised options, of the respective lease, whichever is shorter. Renewals and betterments that materially extend the life of an asset are capitalized while maintenance and repair costs are expensed as incurred. When property and equipment are sold or otherwise disposed of, the asset accounts and related accumulated depreciation or amortization accounts are relieved, and any gain or loss is included in earnings. Depreciation and amortization are recorded using the straight-line method over the following estimated useful lives: Furniture and fixtures 10 years Equipment 5‑10 years Brewing equipment 10-20 years Building improvements the shorter of 20 years or the remaining lease term Leasehold improvements the shorter of the useful life or the lease term, including reasonably assured renewal periods |
Goodwill | Goodwill We perform impairment testing annually, during the fourth quarter, and more frequently if factors and circumstances indicate impairment may have occurred. When evaluating goodwill for impairment, we first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying value. We currently have one reporting unit, which is casual dining company-owned restaurants in the United States of America. If it is concluded that the fair value of our reporting unit is less than the goodwill carrying value, we estimate the fair value of the reporting unit and compare it to the carrying value of the reporting unit, including goodwill. If the carrying value of the reporting unit is greater than the estimated fair value, an impairment charge is recorded for the difference between the implied fair value of goodwill and its carrying amount. To calculate the implied fair value of the reporting unit’s goodwill, the fair value of the reporting unit is first allocated to all of the other assets and liabilities of that unit based on their relative fair values. The excess of the reporting unit’s fair value over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. An impairment loss would be recognized when the carrying amount of goodwill exceeds its implied fair value. This adjusted carrying value becomes the new goodwill accounting basis value. We did not record any impairment to goodwill during fiscal 2019, 2018 or 2017. |
Long-Lived Assets | Long-Lived Assets We assess the potential impairment of our long-lived assets whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. These assets are generally reviewed for impairment at the lowest cash generating level, which is on a restaurant by restaurant basis. Factors considered include, but are not limited to, significant underperformance by the restaurant relative to expected historical or projected future operating results, significant changes in the manner of use of the acquired assets or the strategy for the overall business, and significant negative industry or economic trends. The recoverability is assessed by comparing the carrying value of the asset to the undiscounted cash flows expected to be generated by the asset. If the carrying amount is greater than the anticipated |
Self-Insurance Liability | Self-Insurance Liability We retain large deductibles or self-insured retentions for a portion of our general liability insurance and our employee workers’ compensation programs. We maintain coverage with a third party insurer to limit our total exposure for these programs. The accrued liability associated with these programs is based on our estimate of the ultimate costs within our retention amount to settle known claims as well as claims incurred but not yet reported to us (“IBNR claims”) as of the balance sheet date. Our estimated liability is based on information provided by a third party actuary, combined with our judgments regarding a number of assumptions and factors, including the frequency and severity of claims, our claims development history, case jurisdiction, related legislation, and our claims settlement practice. |
Revenue Recognition | Revenue Recognition Revenues from food and beverage sales at restaurants are recognized when payment is tendered at the point of sale. Amounts paid with a credit card are recorded in accounts and other receivables until payment is collected from the credit card processor. We sell gift cards which do not have an expiration date and we do not deduct non-usage fees from outstanding gift card balances. Gift card sales are recorded as a liability and recognized as revenues upon redemption in our restaurants. Deferred gift card revenue, included in “Accrued expenses” on the accompanying Consolidated Balance Sheets, was $19.1 million and $17.2 million as of December 31, 2019 and January 1, 2019, respectively. Estimated gift card breakage is recorded as “Revenues” on our Consolidated Statements of Income and recognized in proportion to our historical redemption pattern. The estimated gift card breakage is based on when the likelihood of redemption becomes remote, which has typically been 24 months after the original gift card issuance date. Our “BJ’s Premier Rewards” customer loyalty program enables participants to earn points for qualifying purchases that can be redeemed for food and beverages in the future. We allocate the transaction price between the goods delivered and the future goods that will be delivered, on a relative standalone selling price basis, and defer the revenues allocated to the points, less expected expirations, until such points are redeemed. |
Cost of Sales | Cost of Sales Cost of sales is comprised of food and beverage costs, including the cost to produce and distribute our proprietary craft beer, soda and ciders. The components of cost of sales are variable and typically fluctuate directly with sales volumes, but may be impacted by changes in commodity prices or promotional activities. |
Sales Taxes | Sales Taxes Revenues are presented net of sales tax collected. The obligations to the appropriate tax authorities are included in other accrued expenses until the taxes are remitted to the appropriate taxing authorities. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising expense for fiscal 2019, 2018, and 2017 was approximately $25.2 million, $24.5 million and $21.0 million, respectively. Advertising costs are primarily included in “Occupancy and operating” expenses on our Consolidated Statements of Income. |
Income Taxes | Income Taxes We utilize the liability method of accounting for income taxes. Deferred income taxes are recognized based on the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted We provide for income taxes based on our expected federal and state tax liabilities. Our estimates include, but are not limited to, effective federal, state and local income tax rates, allowable tax credits for items such as FICA taxes paid on reported tip income and estimates related to depreciation expense allowable for tax purposes. We usually file our income tax returns several months after our fiscal year-end. All tax returns are subject to audit by federal and state governments for years after the returns are filed, and could be subject to differing interpretations of the tax laws. We recognize the impact of a tax position in our financial statements if that position is more likely than not of being sustained through an audit, based on the technical merits of the position. Interest and penalties related to uncertain tax positions are included in “I ncome tax expense (benefit)” on our Consolidated Statements of Income . |
Restaurant Opening Expense | Restaurant Opening Expense Restaurant payroll, supplies, training, other start-up costs and rent expense incurred prior to the opening of a new restaurant are expensed as incurred. |
Leases | Leases We determine if a contract contains a lease at inception. Our material operating leases consist of restaurant locations and office space. U.S. GAAP requires that our leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date, and the lease term used in the evaluation includes the non-cancellable period for which we have the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option would result in an economic penalty. All of our restaurant leases and office space are classified as operating leases. We do not have any finance leases. We disburse cash for leasehold improvements, furniture and fixtures and equipment to build out and equip our leased premises. Tenant improvement allowance incentives may be available to partially offset the cost of developing and opening the related restaurants, pursuant to agreed-upon terms in our leases. Tenant improvement allowances can take the form of cash payments upon the opening of the related restaurants, full or partial credits against minimum or percentage rents otherwise payable by us, or a combination thereof. All tenant improvement allowances received by us are recorded as a contra operating lease asset and amortized over the term of the lease. The lease term used for straight-line rent expense is calculated from the commencement date (the date we take possession of the premises) through the lease termination date (including any options where exercise is reasonably certain and failure to exercise such option would result in an economic penalty). We expense rent from commencement date through restaurant open date as preopening expense. Once a restaurant opens for business, we record straight-line rent expense plus any additional variable contingent rent expense to the extent it is due under the lease agreement. There is potential for variability in the rent holiday period, which begins on the commencement date and ends on the restaurant open date, during which no cash rent payments are typically due under the terms of the lease. Factors that may affect the length of the rent holiday period generally pertain to construction related delays. Extension of the rent holiday period due to delays in restaurant opening will result in greater preopening rent expense recognized during the rent holiday period and lesser occupancy expense during the rest of the lease term (post-opening). We record a lease liability equal to the present value of future payments discounted at the estimated fully collateralized incremental borrowing rate (discount rate) corresponding with the lease term. Our lease liability calculation is the total rent payable during the lease term, including rent escalations in which the amount of future rent is certain or fixed on the straight-line basis over the term of the lease (including the rent holiday period beginning upon our possession of the premises, and any fixed payments stated in the lease). A corresponding operating lease asset is also recorded equaling the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any lease incentives received. The difference between the minimum rents paid and the straight-line rent is reflected within the associated operating lease asset. Certain leases contain provisions that require additional rent payments based upon restaurant sales volume (“variable lease cost”). Contingent rent is accrued each period as the liabilities are incurred, in addition to the straight-line rent expense noted above. This results in some variability in occupancy expense as a percentage of revenues over the term of the lease in restaurants where we pay contingent rent. Management makes judgments regarding the reasonably certain lease term for each restaurant property lease, which can impact the classification and accounting for a lease as finance or operating, the rent holiday and/or escalations in payments that are taken into consideration when calculating straight-line rent, and the term over which leasehold improvements for each restaurant are amortized. These judgments may produce materially different amounts of depreciation, amortization and rent expense than would be reported if different assumed lease terms were used. |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if in-the-money stock options issued by us to sell common stock at set prices were exercised and if restrictions on restricted stock units issued by us were to lapse (collectively, equity awards) using the treasury stock method. The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards that were included in the dilutive net income per share computation (in thousands): Fiscal Year 2019 2018 2017 Numerator: Net income for basic and diluted net income per share $ 45,238 $ 50,810 $ 44,780 Denominator: Weighted-average shares outstanding - basic 20,285 20,958 21,374 Dilutive effect of equity awards 307 626 398 Weighted-average shares outstanding - diluted 20,592 21,584 21,772 At December 31, 2019, January 1, 2019, and January 2, 2018, there were approximately 0.5 million, 0.03 million, and 0.6 million shares of common stock equivalents, respectively, that have been excluded from the calculation of diluted net income per share because they are anti-dilutive. |
Stock-Based Compensation | Stock‑Based Compensation Under our shareholder approved stock-based compensation plans, we have granted incentive stock options, non-qualified stock options, and restricted stock units (“RSUs”), including performance and time-based restricted stock units, that generally vest over three to five years. Incentive and non-qualified stock options expire ten years from the date of grant. Stock-based compensation is recorded in accordance with U.S. GAAP based on the underlying estimated fair value of the awards granted. In valuing stock options, we are required to make certain assumptions and judgments regarding the inputs to the Black-Scholes option-pricing model. These inputs include expected volatility, risk free interest rate, expected option life, dividend yield and expected vesting percentage. These estimations and judgments involve many different variables that, in many cases, are outside of our control. Changes in these variables may significantly impact the compensation cost recognized for these grants resulting in a significant impact to our financial results. The tax benefits resulting from tax deductions in excess of the compensation cost recognized (excess tax benefits) are classified as “Cash flows from financing activities” within our Consolidated Statements of Cash Flows and “Income tax expense (benefit)” within the Consolidated Statements of Income for the period realized. |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Impact on Consolidated Opening Balance Sheet | The impact on our consolidated opening balance sheet was as follows: January 1, 2019 Topic 842 Adjustments January 2, 2019 (1) (unaudited) Assets Current assets: Cash and cash equivalents $ 29,224 $ — $ 29,224 Accounts and other receivables, net 31,190 — 31,190 Inventories, net 10,133 — 10,133 Prepaid expenses and other current assets 7,940 — 7,940 Total current assets 78,487 — 78,487 Property and equipment, net 582,754 — 582,754 Operating lease assets — 377,035 377,035 Goodwill 4,673 — 4,673 Other assets, net 29,193 — 29,193 Total assets $ 695,107 $ 377,035 $ 1,072,142 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 36,505 $ — $ 36,505 Accrued expenses 113,920 (6,869 ) 107,051 Current operating lease obligation — 30,529 30,529 Total current liabilities 150,425 23,660 174,085 Long-term operating lease obligation — 443,316 443,316 Deferred income taxes, net 15,977 6,960 22,937 Deferred rent 35,088 (35,088 ) — Deferred lease incentives 54,264 (54,264 ) — Long-term debt 95,000 — 95,000 Other liabilities 35,132 (27,051 ) 8,081 Total liabilities 385,886 357,533 743,419 Commitments and contingencies Shareholders’ equity: Preferred stock, 5,000 shares authorized, none issued or outstanding — — — Common stock, no — — — Capital surplus 64,342 — 64,342 Retained earnings 244,879 19,502 (2) 264,381 Total shareholders’ equity 309,221 19,502 328,723 Total liabilities and shareholders’ equity $ 695,107 $ 377,035 $ 1,072,142 (1) Adjustments represent non-cash activities for Consolidated Statements of Cash Flow purposes. (2) Primarily composed of an increase of $28.8 million for deferred sale-leaseback gains no longer amortizable, a decrease of $2.3 million to impair the operating lease asset related to previously impaired properties and a $7.0 million decrease for the deferred tax impact of the cumulative effect adjustments. |
Estimated Useful Lives | Depreciation and amortization are recorded using the straight-line method over the following estimated useful lives: Furniture and fixtures 10 years Equipment 5‑10 years Brewing equipment 10-20 years Building improvements the shorter of 20 years or the remaining lease term Leasehold improvements the shorter of the useful life or the lease term, including reasonably assured renewal periods |
Reconciliation of Basic and Diluted Net Income Per Share Computations and Number of Dilutive Equity Awards Included in Dilutive Net Income Per Share Computation | The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards that were included in the dilutive net income per share computation (in thousands): Fiscal Year 2019 2018 2017 Numerator: Net income for basic and diluted net income per share $ 45,238 $ 50,810 $ 44,780 Denominator: Weighted-average shares outstanding - basic 20,285 20,958 21,374 Dilutive effect of equity awards 307 626 398 Weighted-average shares outstanding - diluted 20,592 21,584 21,772 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Gift Card Liability and Loyalty Program Included in Accrued Expenses on Consolidated Balance Sheets | The liability related to our gift card and loyalty program, included in “Accrued expenses,” on our Consolidated Balance Sheets is as follows (in thousands): December 31, 2019 January 1, 2019 Gift card liability $ 19,106 $ 17,201 Deferred loyalty revenue (post-adoption of ASU 2016-10) $ 8,320 $ 10,066 |
Revenue Recognized on Consolidated Statements of Income for Redemption of Gift Cards and Loyalty Rewards Deferred | Revenue recognized on our Consolidated Statements of Income for the redemption of gift cards and loyalty rewards deferred at the beginning of each respective fiscal year is as follows (in thousands): Fiscal Year 2019 2018 2017 Revenue recognized from gift card liability $ 12,064 $ 9,868 $ 7,346 (1) Revenue recognized from customer loyalty program $ 9,363 $ 7,326 $ — (2) (1) Prior to the adoption of ASU 2016-10, gift card breakage was recorded as other income and included within “Other (expense) income, net” on our Consolidated Statements of Income and therefore not recognized as revenue. (2) Prior to the adoption of ASU 2016-10, loyalty rewards were recorded as marketing expense and included in “Occupancy and operating” on our Consolidated Statements of Income. |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | Accounts and other receivables consisted of the following (in thousands): December 31, 2019 January 1, 2019 Credit cards $ 7,922 $ 18,171 Third party gift card sales 4,335 3,969 Tenant improvement allowances 3,238 3,704 Income taxes 5,659 4,487 Other 1,043 859 $ 22,197 $ 31,190 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following (in thousands): December 31, 2019 January 1, 2019 Land $ 6,833 $ 8,412 Building improvements 381,721 367,020 Leasehold improvements 289,272 271,021 Furniture and fixtures 149,300 141,887 Equipment 318,495 298,025 1,145,621 1,086,365 Less accumulated depreciation and amortization (584,572 ) (523,635 ) 561,049 562,730 Construction in progress 22,590 20,024 Property and equipment, net $ 583,639 $ 582,754 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following (in thousands): December 31, 2019 January 1, 2019 Payroll related $ 27,879 $ 32,249 Workers’ compensation and general liability 21,667 20,929 Deferred revenue from gift cards 19,106 17,201 Deferred loyalty revenue (post-adoption of ASU 2016-10) 8,320 10,066 Sales taxes 6,892 6,858 Other taxes 3,960 4,872 Deferred lease incentives - current (1) — 5,181 Other current rent related 2,469 2,470 Utilities 2,115 2,089 Merchant cards 1,777 1,724 Other 8,630 10,281 $ 102,815 $ 113,920 (1) Subsequent to the adoption of Topic 842, deferred lease incentives are netted and recorded against the operating lease asset. See Note 1 for further information. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Weighted-Average Lease Terms and Discount Rates | Weighted-average lease terms and discount rates as of December 31, 2019 were as follows: Weighted-average remaining lease term 12.8 Years Weighted-average discount rate 5.6% |
Summary of Lease Costs | Lease cost included in “Occupancy & Operating” costs on the Consolidated Statements of Income consisted of the following (in thousands): Fiscal Year 2019 Lease cost $ 54,329 Variable lease cost 3,017 Total lease costs $ 57,346 |
Summary of Operating Lease Obligation Maturities | Operating lease obligation maturities as of December 31, 2019 were as follows (in thousands): 2020 $ 58,209 2021 58,028 2022 57,888 2023 55,933 2024 52,704 Thereafter 362,148 Total lease payments 644,910 Less: imputed interest (164,383 ) Present value of operating lease obligations $ 480,527 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | Income tax expense (benefit) for the last three fiscal years consists of the following (in thousands): Fiscal Year 2019 2018 2017 Current: Federal $ 1,907 $ 2,031 $ 4,631 State 1,922 1,968 2,465 3,829 3,999 7,096 Deferred: Federal (2,652 ) (3,142 ) (15,727 ) State (121 ) 330 (759 ) (2,773 ) (2,812 ) (16,486 ) Income tax expense (benefit) $ 1,056 $ 1,187 $ (9,390 ) |
Income Tax Expense (Benefit) Differs from Amount that would Result from Applying Federal Statutory Rate | Income tax expense (benefit) for the last three fiscal years differs from the amount that would result from applying the federal statutory rate as follows: Fiscal Year 2019 2018 2017 Income tax at statutory rates 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 3.0 3.3 3.5 Permanent differences (0.6 ) (5.1 ) (0.4 ) Income tax credits (20.1 ) (16.0 ) (18.7 ) Prior year tax credit true-up (0.7 ) (0.8 ) (1.1 ) Change in statutory rate — — (44.4 ) Other, net (0.3 ) (0.1 ) (0.4 ) 2.3 % 2.3 % (26.5 )% |
Components of Deferred Income Tax Asset (Liability) | The components of the deferred income tax asset (liability) consist of the following (in thousands): December 31, 2019 January 1, 2019 Deferred income tax asset: Gift cards $ 1,730 $ 1,542 Accrued expenses 9,912 11,434 Other 4,516 3,414 Deferred revenues 20 7,736 Stock-based compensation 3,976 3,740 Deferred rent 126,882 8,616 Income tax credits 12,949 7,990 Net operating losses 1,744 1,334 State tax 473 434 Subtotal current deferred income tax asset 162,202 46,240 Valuation allowance (282 ) (248 ) Total current deferred income tax asset 161,920 45,992 Deferred income tax liability: Property and equipment (59,872 ) (56,551 ) Intangible assets (1,529 ) (1,458 ) Operating lease assets (116,298 ) — Smallwares (4,385 ) (3,960 ) Total non-current deferred income tax liability (182,084 ) (61,969 ) Net deferred income tax liability $ (20,164 ) $ (15,977 ) |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Fiscal Year 2019 2018 2017 Gross unrecognized tax benefits at beginning of year $ 1,532 $ 1,516 $ 1,245 Increases for tax positions taken in prior years 10 69 110 Decreases for tax positions taken in prior years (5 ) (49 ) (4 ) Increases for tax positions taken in the current year 130 87 200 Lapse in statute of limitations (322 ) (91 ) (35 ) Gross unrecognized tax benefits at end of year $ 1,345 $ 1,532 $ 1,516 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation Recognized within Our Consolidated Financial Statements | The following table presents the stock-based compensation recognized within our consolidated financial statements (in thousands): Fiscal Year 2019 2018 2017 Labor and benefits $ 2,372 $ 2,253 $ 1,877 General and administrative $ 6,546 $ 6,003 $ 5,069 Capitalized (1) $ 294 $ 328 $ 298 (1) Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on our Consolidated Balance Sheets. |
Black-Scholes Option-Pricing Model, Weighted Average Assumptions Used to Estimate the Fair Value of Each Stock Option | The fair value of each stock option grant was estimated on the grant date using the Black‑Scholes option-pricing model with the following weighted average assumptions: Fiscal Year 2019 2018 2017 Expected volatility 34.5 % 33.6 % 34.7 % Risk free interest rate 2.53 % 2.32 % 1.87 % Expected option life 5 years 5 years 5 years Dividend yield 1.50 % 1.50 % 1.60 % Fair value of options granted $ 15.67 $ 10.77 $ 12.02 |
Stock Option Activity | The following table presents stock option activity: Options Outstanding Options Exercisable Shares (in thousands) Weighted Average Exercise Price Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life Outstanding at January 3, 2017 1,227 $ 31.95 802 $ 27.73 4.5 Granted 173 $ 36.08 Exercised (57 ) $ 24.07 Forfeited (32 ) $ 38.83 Outstanding at January 2, 2018 1,311 $ 32.68 926 $ 30.02 4.0 Granted 177 $ 37.77 Exercised (876 ) $ 29.85 Forfeited (24 ) $ 39.43 Outstanding at January 1, 2019 588 $ 38.14 189 $ 37.41 5.0 Granted 107 $ 53.09 Exercised (37 ) $ 28.89 Forfeited (13 ) $ 40.88 Outstanding at December 31, 2019 645 $ 41.09 340 $ 38.96 5.5 |
Information Relating to Significant Option Groups Outstanding | Information relating to significant option groups outstanding as of December 31, 2019, is as follows (shares in thousands): Options Outstanding Options Exercisable Range of Exercise Prices Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Exercisable Weighted Average Exercise Price $29.88 – $34.14 72 3.95 $ 31.27 68 $ 31.33 $34.24 – $35.78 20 3.45 $ 35.18 17 $ 35.15 $35.95 – $35.95 110 7.04 $ 35.95 62 $ 35.95 $37.03 – $37.58 8 4.58 $ 37.33 6 $ 37.33 $37.70 – $37.70 160 8.04 $ 37.70 50 $ 37.70 $38.24 – $42.41 66 6.15 $ 42.13 56 $ 42.25 $42.94 – $45.92 22 4.40 $ 44.74 16 $ 44.80 $47.04 – $47.04 70 5.04 $ 47.04 52 $ 47.04 $48.64 – $52.98 16 4.70 $ 51.28 13 $ 51.12 $53.22 – $53.22 101 9.04 $ 53.22 — $ — $29.88 – $53.22 645 6.66 $ 41.09 340 $ 38.96 |
Time-Vested Restricted Stock Units | |
Restricted Stock Unit Activity | The following table presents time-based restricted stock unit activity: Shares (in Weighted Average Fair Value Outstanding at January 3, 2017 460 $ 39.75 Granted 200 $ 35.72 Vested or released (89 ) $ 42.34 Forfeited (71 ) $ 39.51 Outstanding at January 2, 2018 500 $ 37.72 Granted 154 $ 47.85 Vested or released (102 ) $ 35.66 Forfeited (58 ) $ 40.70 Outstanding at January 1, 2019 494 $ 40.99 Granted 179 $ 45.88 Vested or released (118 ) $ 35.57 Forfeited (46 ) $ 44.49 Outstanding at December 31, 2019 509 $ 43.65 |
Performance Based Restricted Stock Units | |
Restricted Stock Unit Activity | The following table presents performance-based restricted stock unit activity: Shares (in Weighted Average Fair Value Outstanding at January 3, 2017 54 $ 37.87 Granted 40 $ 35.95 Vested or released — $ — Forfeited (26 ) $ 39.12 Outstanding at January 2, 2018 68 $ 38.68 Granted 38 $ 37.70 Vested or released — $ — Forfeited (1 ) $ 38.66 Outstanding at January 1, 2019 105 $ 38.32 Granted 31 $ 53.22 Vested or released (28 ) $ 42.41 Forfeited (3 ) $ 43.13 Outstanding at December 31, 2019 105 $ 41.42 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade Payables | |
Summary of Amounts Included in Cost of Sales and Occupancy and Operating Expenses and in Accounts Payables Related to Jacmar | The amounts included in accounts payables related to Jacmar consisted of the following (in thousands): December 31, 2019 January 1, 2019 Third party suppliers $ 20,879 $ 30,395 Jacmar 2,543 6,110 Total accounts payable $ 23,422 $ 36,505 |
Cost of Sales, Occupancy and Operating Expenses | |
Summary of Amounts Included in Cost of Sales and Occupancy and Operating Expenses and in Accounts Payables Related to Jacmar | The cost of food, beverage, paper products and supplies provided by Jacmar included within “Cost of sales” and “Occupancy and operating” expenses consisted of the following (in thousands): Fiscal Year 2019 2018 2017 Cost of sales: Third party suppliers $ 209,215 70.9 % $ 196,165 69.6 % $ 185,153 68.9 % Jacmar 85,794 29.1 85,788 30.4 83,554 31.1 Cost of sales $ 295,009 100.0 % $ 281,953 100.0 % $ 268,707 100.0 % Occupancy and operating: Third party suppliers $ 247,076 96.4 % $ 229,749 96.0 % $ 210,616 95.8 % Jacmar 9,307 3.6 9,697 4.0 9,247 4.2 Occupancy and operating $ 256,383 100.0 % $ 239,446 100.0 % $ 219,863 100.0 % |
Selected Consolidated Quarter_2
Selected Consolidated Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Unaudited Consolidated Quarterly Financial Data | Our summarized unaudited consolidated quarterly financial data is the following (in thousands, except per share data): April 2, 2019 July 2, 2019 October 1, 2019 December 31, 2019 Total revenues $ 290,554 $ 301,090 $ 278,739 $ 291,067 Income from operations $ 13,785 $ 15,755 $ 3,270 $ 16,309 Net income $ 12,864 $ 14,192 $ 3,671 $ 14,511 Basic net income per share (1) $ 0.61 $ 0.69 $ 0.18 $ 0.76 Diluted net income per share (1) $ 0.60 $ 0.68 $ 0.18 $ 0.75 Cash dividends declared per common share $ 0.12 $ 0.12 $ 0.12 $ 0.13 April 3, 2018 July 3, 2018 October 2, 2018 January 1, 2019 Total revenues $ 278,523 $ 287,634 $ 270,268 $ 280,523 Income from operations $ 16,373 $ 19,120 $ 7,890 $ 14,187 Net income $ 14,664 $ 16,945 $ 8,516 $ 10,685 Basic net income per share (1) $ 0.71 $ 0.81 $ 0.40 $ 0.50 Diluted net income per share (1) $ 0.70 $ 0.79 $ 0.39 $ 0.49 Cash dividends declared per common share $ 0.11 $ 0.11 $ 0.11 $ 0.12 (1) Basic and diluted net income per share calculations for each quarter are based on the weighted average diluted shares outstanding for that quarter and may not sum to the full year total amount as presented on our Consolidated Statements of Income. |
Company and Summary of Signific
Company and Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)RestaurantStateSegmentshares | Jan. 01, 2019USD ($)shares | Jan. 02, 2018USD ($)shares | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of restaurants owned | Restaurant | 208 | ||
Number of states in which entity operates | State | 28 | ||
Number of new restaurants opened | Restaurant | 7 | ||
Number of operating segments | Segment | 1 | ||
Lease, practical expedients, package | true | ||
Lease, practical expedient, use of hindsight | false | ||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Impairment expenses of long-lived assets | 0 | 0 | 0 |
Deferred revenue from gift cards | 19,106,000 | 17,201,000 | |
Advertising expense | $ 25,200,000 | $ 24,500,000 | $ 21,000,000 |
Common stock equivalents excluded from calculation of diluted net income per share | shares | 500 | 30 | 600 |
Expiration term | 10 years | ||
Incentive Stock Options, Non-qualified Stock Options And Restricted Stock Units | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Expiration term | 10 years | ||
Incentive Stock Options, Non-qualified Stock Options And Restricted Stock Units | Minimum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Vesting period (in years) | 3 years | ||
Incentive Stock Options, Non-qualified Stock Options And Restricted Stock Units | Maximum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Vesting period (in years) | 5 years | ||
United States | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating segments | State | 1 |
Schedule of Impact on Consolida
Schedule of Impact on Consolidated Opening Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 02, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | Jan. 03, 2017 | |
Current assets: | ||||||
Cash and cash equivalents | $ 22,394 | $ 29,224 | ||||
Accounts and other receivables, net | 22,197 | 31,190 | ||||
Inventories, net | 11,102 | 10,133 | ||||
Prepaid expenses and other current assets | 8,912 | 7,940 | ||||
Total current assets | 64,605 | 78,487 | ||||
Property and equipment, net | 583,639 | 582,754 | ||||
Operating lease assets | 383,355 | |||||
Goodwill | 4,673 | 4,673 | ||||
Other assets, net | 35,812 | 29,193 | ||||
Total assets | 1,072,084 | 695,107 | ||||
Current liabilities: | ||||||
Accounts payable | [1] | 23,422 | 36,505 | |||
Accrued expenses | 102,815 | 113,920 | ||||
Current operating lease obligations | 32,194 | |||||
Total current liabilities | 158,431 | 150,425 | ||||
Long-term operating lease obligations | 448,333 | |||||
Deferred income taxes, net | 20,164 | 15,977 | ||||
Deferred rent | 35,088 | |||||
Deferred lease incentives | 54,264 | |||||
Long-term debt | 143,000 | 95,000 | ||||
Other liabilities | 11,869 | 35,132 | ||||
Total liabilities | 781,797 | 385,886 | ||||
Commitments and contingencies | ||||||
Shareholders’ equity: | ||||||
Preferred stock, 5,000 shares authorized, none issued or outstanding | ||||||
Common stock, no par value, 125,000 shares authorized and 21,058 shares issued and outstanding as of January 1, 2019 and January 2, 2019 | 0 | 0 | ||||
Capital surplus | 67,062 | 64,342 | ||||
Retained earnings | 223,225 | 244,879 | ||||
Total shareholders’ equity | 290,287 | 309,221 | $ 258,729 | $ 274,897 | ||
Total liabilities and shareholders’ equity | $ 1,072,084 | $ 695,107 | ||||
ASU 2016-02 | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 29,224 | |||||
Accounts and other receivables, net | 31,190 | |||||
Inventories, net | 10,133 | |||||
Prepaid expenses and other current assets | 7,940 | |||||
Total current assets | 78,487 | |||||
Property and equipment, net | 582,754 | |||||
Operating lease assets | 377,035 | |||||
Goodwill | 4,673 | |||||
Other assets, net | 29,193 | |||||
Total assets | 1,072,142 | |||||
Current liabilities: | ||||||
Accounts payable | 36,505 | |||||
Accrued expenses | 107,051 | |||||
Current operating lease obligations | 30,529 | |||||
Total current liabilities | 174,085 | |||||
Long-term operating lease obligations | 443,316 | |||||
Deferred income taxes, net | 22,937 | |||||
Long-term debt | 95,000 | |||||
Other liabilities | 8,081 | |||||
Total liabilities | 743,419 | |||||
Commitments and contingencies | ||||||
Shareholders’ equity: | ||||||
Preferred stock, 5,000 shares authorized, none issued or outstanding | ||||||
Common stock, no par value, 125,000 shares authorized and 21,058 shares issued and outstanding as of January 1, 2019 and January 2, 2019 | 0 | |||||
Capital surplus | 64,342 | |||||
Retained earnings | 264,381 | |||||
Total shareholders’ equity | 328,723 | |||||
Total liabilities and shareholders’ equity | 1,072,142 | |||||
Topic 842 Adjustments | ASU 2016-02 | ||||||
Current assets: | ||||||
Operating lease assets | [2] | 377,035 | ||||
Total assets | [2] | 377,035 | ||||
Current liabilities: | ||||||
Accrued expenses | [2] | (6,869) | ||||
Current operating lease obligations | [2] | 30,529 | ||||
Total current liabilities | [2] | 23,660 | ||||
Long-term operating lease obligations | [2] | 443,316 | ||||
Deferred income taxes, net | [2] | 6,960 | ||||
Deferred rent | [2] | (35,088) | ||||
Deferred lease incentives | [2] | (54,264) | ||||
Other liabilities | [2] | (27,051) | ||||
Total liabilities | [2] | 357,533 | ||||
Commitments and contingencies | [2] | |||||
Shareholders’ equity: | ||||||
Preferred stock, 5,000 shares authorized, none issued or outstanding | [2] | |||||
Common stock, no par value, 125,000 shares authorized and 21,058 shares issued and outstanding as of January 1, 2019 and January 2, 2019 | [2] | 0 | ||||
Retained earnings | [2],[3] | 19,502 | ||||
Total shareholders’ equity | [2] | 19,502 | ||||
Total liabilities and shareholders’ equity | [2] | $ 377,035 | ||||
[1] | Included in accounts payable for fiscal years 2019 and 2018 is $2,543 and $6,110, respectively, of related party trade payables. See Note 13 for further information. | |||||
[2] | (1) Adjustments represent non-cash activities for Consolidated Statements of Cash Flow purposes. | |||||
[3] | Primarily composed of an increase of $28.8 million for deferred sale-leaseback gains no longer amortizable, a decrease of $2.3 million to impair the operating lease asset related to previously impaired properties and a $7.0 million decrease for the deferred tax impact of the cumulative effect adjustments. |
Schedule of Impact on Consoli_2
Schedule of Impact on Consolidated Opening Balance Sheet (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 19,149,000 | 21,058,000 |
Common stock, shares outstanding | 19,149,000 | 21,058,000 |
ASU 2016-02 | Topic 842 Adjustments | Increase of Deferred Sale-Leaseback Gains | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Retained earnings cumulative effect adjustments | $ 28.8 | |
ASU 2016-02 | Topic 842 Adjustments | Decrease to Impair Operating Lease Asset | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Retained earnings cumulative effect adjustments | (2.3) | |
ASU 2016-02 | Topic 842 Adjustments | Decrease for Deferred Tax Impact | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Retained earnings cumulative effect adjustments | $ (7) |
Estimated Useful Lives (Detail)
Estimated Useful Lives (Detail) | 12 Months Ended |
Jan. 01, 2019 | |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life | 10 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life | 5 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life | 10 years |
Brewpub Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life | 10 years |
Brewpub Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life | 20 years |
Building Improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life, description | the shorter of 20 years or the remaining lease term |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life, description | The shorter of the useful life or the lease term, including reasonably assured renewal periods |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Net Income Per Share Computations and Number of Dilutive Equity Awards Included in Dilutive Net Income Per Share Computation (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Oct. 01, 2019 | Jul. 02, 2019 | Apr. 02, 2019 | Jan. 01, 2019 | Oct. 02, 2018 | Jul. 03, 2018 | Apr. 03, 2018 | Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net income for basic and diluted net income per share | $ 14,511 | $ 3,671 | $ 14,192 | $ 12,864 | $ 10,685 | $ 8,516 | $ 16,945 | $ 14,664 | $ 45,238 | $ 50,810 | $ 44,780 |
Weighted-average shares outstanding - basic | 20,285 | 20,958 | 21,374 | ||||||||
Dilutive effect of equity awards | 307 | 626 | 398 | ||||||||
Weighted-average shares outstanding - diluted | 20,592 | 21,584 | 21,772 |
Gift Card Liability and Loyalty
Gift Card Liability and Loyalty Program Included in Accrued Expenses on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Contract With Customer Asset And Liability [Line Items] | ||
Gift card liability | $ 19,106 | $ 17,201 |
Post-adoption of ASU 2016-10 | ||
Contract With Customer Asset And Liability [Line Items] | ||
Deferred loyalty revenue | $ 8,320 | $ 10,066 |
Revenue Recognized on Consolida
Revenue Recognized on Consolidated Statements of Income for Redemption of Gift Cards and Loyalty Rewards Deferred (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | ||
Revenues Recognized From Gift Card And Loyalty Redemptions [Line Items] | ||||
Revenue recognized from gift card liability | $ 12,064 | $ 9,868 | ||
Revenue recognized from customer loyalty program | $ 9,363 | $ 7,326 | ||
Pre-adoption of ASU 2016-10 | ||||
Revenues Recognized From Gift Card And Loyalty Redemptions [Line Items] | ||||
Revenue recognized from gift card liability | [1] | $ 7,346 | ||
[1] | Prior to the adoption of ASU 2016-10, gift card breakage was recorded as other income and included within “Other (expense) income, net” on our Consolidated Statements of Income and therefore not recognized as revenue. |
Schedule of Accounts and Other
Schedule of Accounts and Other Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Receivables [Abstract] | ||
Credit cards | $ 7,922 | $ 18,171 |
Third party gift card sales | 4,335 | 3,969 |
Tenant improvement allowances | 3,238 | 3,704 |
Income taxes | 5,659 | 4,487 |
Other | 1,043 | 859 |
Total accounts and other receivables | $ 22,197 | $ 31,190 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,145,621 | $ 1,086,365 |
Less accumulated depreciation and amortization | (584,572) | (523,635) |
Property and equipment, excluding construction in progress | 561,049 | 562,730 |
Construction in progress | 22,590 | 20,024 |
Property and equipment, net | 583,639 | 582,754 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,833 | 8,412 |
Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 381,721 | 367,020 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 289,272 | 271,021 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 149,300 | 141,887 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 318,495 | $ 298,025 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | |
Accrued Expenses [Line Items] | |||
Payroll related | $ 27,879 | $ 32,249 | |
Workers’ compensation and general liability | 21,667 | 20,929 | |
Deferred revenue from gift cards | 19,106 | 17,201 | |
Sales taxes | 6,892 | 6,858 | |
Other taxes | 3,960 | 4,872 | |
Deferred lease incentives - current (1) | [1] | 5,181 | |
Other current rent related | 2,469 | 2,470 | |
Utilities | 2,115 | 2,089 | |
Merchant cards | 1,777 | 1,724 | |
Other | 8,630 | 10,281 | |
Accrued Liabilities | 102,815 | 113,920 | |
Post-adoption of ASU 2016-10 | |||
Accrued Expenses [Line Items] | |||
Deferred loyalty revenue | $ 8,320 | $ 10,066 | |
[1] | Subsequent to the adoption of Topic 842, deferred lease incentives are netted and recorded against the operating lease asset. See Note 1 for further information. |
Leases - Summary of Weighted-Av
Leases - Summary of Weighted-Average Lease Terms and Discount Rates (Detail) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term | 12 years 9 months 18 days |
Weighted-average discount rate | 5.60% |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Lease cost | $ 54,329 |
Variable lease cost | 3,017 |
Total lease costs | $ 57,346 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Obligation Maturities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 58,209 |
2021 | 58,028 |
2022 | 57,888 |
2023 | 55,933 |
2024 | 52,704 |
Thereafter | 362,148 |
Total lease payments | 644,910 |
Less: imputed interest | (164,383) |
Present value of operating lease obligations | $ 480,527 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Letters of credit outstanding amount | $ 18.1 |
Letters of credit renewal period, years | 1 year |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Line of Credit Facility [Line Items] | |||
Letters of credit outstanding amount | $ 18,100,000 | ||
Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Revolving loan commitments under loan agreement | $ 250,000,000 | ||
Loan agreement, expiration date | Nov. 18, 2021 | ||
Letters of credit outstanding amount | $ 18,100,000 | ||
Line of credit outstanding amount | 143,000,000 | ||
Available borrowings under credit facility | $ 88,900,000 | ||
Weighted average interest rate | 3.50% | ||
Interest expense and commitment fees | $ 4,600,000 | $ 4,800,000 | $ 4,500,000 |
Interest expense on line of credit | 300,000 | $ 100,000 | |
Credit Facility | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Revolving loan commitments under loan agreement | $ 50,000,000 | ||
Maximum | Credit Facility | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Line of credit, adjustment to interest rate | 1.75% | ||
Minimum | Credit Facility | Prime Rate | |||
Line of Credit Facility [Line Items] | |||
Line of credit, adjustment to interest rate | 0.75% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019USD ($)$ / sharesshares | Oct. 01, 2019$ / shares | Jul. 02, 2019$ / shares | Apr. 02, 2019$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Jan. 01, 2019USD ($)Serie$ / sharesshares | Jan. 02, 2018USD ($)$ / shares | |
Equity [Abstract] | |||||||
Preferred stock, shares authorized | shares | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Series of preferred stock, minimum | Serie | 1 | ||||||
Preferred stock, issued | shares | 0 | 0 | 0 | ||||
Preferred stock, outstanding | shares | 0 | 0 | 0 | ||||
Voting rights, per share | one | ||||||
Dividends paid or payable | $ / shares | $ 0.13 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.49 | $ 0.45 | $ 0.11 |
Number of shares repurchased during the period | shares | 2,100,000 | ||||||
Repurchased average price per share | $ / shares | $ 39.93 | ||||||
Shares repurchased, value | $ | $ 82,760,000 | $ 20,331,000 | $ 66,922,000 | ||||
Common stock remaining under the share repurchase plan | $ | $ 39,500,000 | 39,500,000 | |||||
Expansion of share repurchased program | $ | 100,000,000 | ||||||
Current amount authorized under the share repurchase plan | $ | $ 500,000,000 | $ 500,000,000 |
Income Tax Expense (Benefit) (D
Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Current: | |||
Federal | $ 1,907 | $ 2,031 | $ 4,631 |
State | 1,922 | 1,968 | 2,465 |
Current Income Tax Expense (Benefit), Total | 3,829 | 3,999 | 7,096 |
Deferred: | |||
Federal | (2,652) | (3,142) | (15,727) |
State | (121) | 330 | (759) |
Deferred income taxes | (2,773) | (2,812) | (16,486) |
Income tax expense (benefit) | $ 1,056 | $ 1,187 | $ (9,390) |
Income Tax Expense (Benefit) Di
Income Tax Expense (Benefit) Differs from Amount that would Result from Applying Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax at statutory rates | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | 3.00% | 3.30% | 3.50% |
Permanent differences | (0.60%) | (5.10%) | (0.40%) |
Income tax credits | (20.10%) | (16.00%) | (18.70%) |
Prior year tax credit true-up | (0.70%) | (0.80%) | (1.10%) |
Change in statutory rate | (44.40%) | ||
Other, net | (0.30%) | (0.10%) | (0.40%) |
Effective Income Tax Rate, Continuing Operations, Total | 2.30% | 2.30% | (26.50%) |
Components of Deferred Income T
Components of Deferred Income Tax Asset (Liability) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Deferred income tax asset: | ||
Gift cards | $ 1,730 | $ 1,542 |
Accrued expenses | 9,912 | 11,434 |
Other | 4,516 | 3,414 |
Deferred revenues | 20 | 7,736 |
Stock-based compensation | 3,976 | 3,740 |
Deferred rent | 126,882 | 8,616 |
Income tax credits | 12,949 | 7,990 |
Net operating losses | 1,744 | 1,334 |
State tax | 473 | 434 |
Subtotal current deferred income tax asset | 162,202 | 46,240 |
Valuation allowance | (282) | (248) |
Total current deferred income tax asset | 161,920 | 45,992 |
Deferred income tax liability: | ||
Property and equipment | (59,872) | (56,551) |
Intangible assets | (1,529) | (1,458) |
Operating lease assets | (116,298) | |
Smallwares | (4,385) | (3,960) |
Total non-current deferred income tax liability | (182,084) | (61,969) |
Net deferred income tax liability | $ (20,164) | $ (15,977) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | Jan. 03, 2017 | |
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | ||||
Income tax credit carryforwards | $ 12,949,000 | $ 7,990,000 | ||
Valuation allowances against net operating loss and tax credit carryforwards | 300,000 | 200,000 | ||
Accrued penalties and interest to uncertain tax positions | 40,000 | 50,000 | ||
Unrecognized tax benefits | 1,345,000 | $ 1,532,000 | $ 1,516,000 | $ 1,245,000 |
Unrecognized tax benefits that would impact effective tax rate, if reversed | 900,000 | |||
Anticipated decrease in liability for unrecognized tax benefits within next twelve-month period | $ 0 | |||
Corporate marginal tax rate | 21.00% | 21.00% | 35.00% | |
Tax benefit related to new federal income tax rate provided by TCJA | $ 15,700,000 | |||
Federal | ||||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | ||||
Income tax credit carryforwards | $ 13,200,000 | |||
Tax credits expiration year | 2038 | |||
Federal | Earliest Tax Year | ||||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | ||||
Income tax examination, years open | 2016 | |||
State or Local Taxing Jurisdiction | ||||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | ||||
Income tax credit carryforwards | $ 700,000 | |||
Tax credits expiration year | 2023 | |||
State or Local Taxing Jurisdiction | Earliest Tax Year | ||||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | ||||
Income tax examination, years open | 2015 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits at beginning of year | $ 1,532 | $ 1,516 | $ 1,245 |
Increases for tax positions taken in prior years | 10 | 69 | 110 |
Decreases for tax positions taken in prior years | (5) | (49) | (4) |
Increases for tax positions taken in the current year | 130 | 87 | 200 |
Lapse in statute of limitations | (322) | (91) | (35) |
Gross unrecognized tax benefits at end of year | $ 1,345 | $ 1,532 | $ 1,516 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares charged to reserve per granted share | shares | 1 |
Share basis for number shares charged to reserve | shares | 1 |
Expiration term of stock options | 10 years |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares charged to reserve per granted share | shares | 1.5 |
Stock Options and Time-based RSUs [Member] | Cliff Vesting Third Anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.00% |
Stock Options and Time-based RSUs [Member] | Cliff Vesting Fifth Anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 67.00% |
Stock Options and Time-based RSUs [Member] | Cliff Vesting | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 5 years |
Stock Options and Time-based RSUs [Member] | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
Stock Options and Time-based RSUs [Member] | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 5 years |
Performance Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ | $ 1.5 |
Unrecognized stock-based compensation expenses recognition period (in years) | 3 years |
Performance Based Restricted Stock Units | Minimum | Cliff Vesting Third Anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 0.00% |
Performance Based Restricted Stock Units | Maximum | Cliff Vesting Third Anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 150.00% |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ | $ 1.8 |
Unrecognized stock-based compensation expenses recognition period (in years) | 5 years |
Time-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ | $ 9.8 |
Unrecognized stock-based compensation expenses recognition period (in years) | 5 years |
Stock-Based Compensation Recogn
Stock-Based Compensation Recognized within Our Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Capitalized | [1] | $ 294 | $ 328 | $ 298 |
Labor and benefits | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 2,372 | 2,253 | 1,877 | |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 6,546 | $ 6,003 | $ 5,069 | |
[1] | Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on our Consolidated Balance Sheets. |
Black-Scholes Option-Pricing Mo
Black-Scholes Option-Pricing Model, Weighted Average Assumptions Used to Estimate the Fair Value of Each Stock Option (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected volatility | 34.50% | 33.60% | 34.70% |
Risk free interest rate | 2.53% | 2.32% | 1.87% |
Expected option life | 5 years | 5 years | 5 years |
Dividend yield | 1.50% | 1.50% | 1.60% |
Fair value of options granted | $ 15.67 | $ 10.77 | $ 12.02 |
Stock Option Activity (Detail)
Stock Option Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | Jan. 03, 2017 | |
Options Outstanding, Shares | ||||
Outstanding, Beginning Balance | 588 | 1,311 | 1,227 | |
Granted | 107 | 177 | 173 | |
Exercised | (37) | (876) | (57) | |
Forfeited | (13) | (24) | (32) | |
Outstanding, Ending Balance | 645 | 588 | 1,311 | 1,227 |
Options Outstanding, Weighted Average Exercise Price | ||||
Outstanding, Beginning Balance | $ 38.14 | $ 32.68 | $ 31.95 | |
Granted | 53.09 | 37.77 | 36.08 | |
Exercised | 28.89 | 29.85 | 24.07 | |
Forfeited | 40.88 | 39.43 | 38.83 | |
Outstanding, Ending Balance | $ 41.09 | $ 38.14 | $ 32.68 | $ 31.95 |
Options Exercisable, Shares | ||||
Options Exercisable Outstanding, Beginning Balance | 189 | 926 | 802 | |
Options Exercisable Outstanding, Ending Balance | 340 | 189 | 926 | 802 |
Options Exercisable, Weighted Average Exercise Price | ||||
Options Exercisable, Beginning Balance | $ 37.41 | $ 30.02 | $ 27.73 | |
Options Exercisable, Ending Balance | $ 38.96 | $ 37.41 | $ 30.02 | $ 27.73 |
Options Exercisable, Weighted Average Remaining Contractual Life | ||||
Weighted Average Remaining Contractual Life | 5 years 6 months | 5 years | 4 years | 4 years 6 months |
Information Relating to Signifi
Information Relating to Significant Option Groups Outstanding (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | Jan. 03, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Options Outstanding | 645 | 588 | 1,311 | 1,227 |
Weighted Average Exercise Price, Options Outstanding | $ 41.09 | $ 38.14 | $ 32.68 | $ 31.95 |
Options Exercisable | 340 | 189 | 926 | 802 |
Weighted Average Exercise Price, Options Exercisable | $ 38.96 | $ 37.41 | $ 30.02 | $ 27.73 |
$29.88 – $34.14 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 29.88 | |||
Range of Exercise Prices, high | $ 34.14 | |||
Options Outstanding | 72 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 3 years 11 months 12 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 31.27 | |||
Options Exercisable | 68 | |||
Weighted Average Exercise Price, Options Exercisable | $ 31.33 | |||
$34.24 – $35.78 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 34.24 | |||
Range of Exercise Prices, high | $ 35.78 | |||
Options Outstanding | 20 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 3 years 5 months 12 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 35.18 | |||
Options Exercisable | 17 | |||
Weighted Average Exercise Price, Options Exercisable | $ 35.15 | |||
$35.95 – $35.95 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 35.95 | |||
Range of Exercise Prices, high | $ 35.95 | |||
Options Outstanding | 110 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 7 years 14 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 35.95 | |||
Options Exercisable | 62 | |||
Weighted Average Exercise Price, Options Exercisable | $ 35.95 | |||
$37.03 – $37.58 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 37.03 | |||
Range of Exercise Prices, high | $ 37.58 | |||
Options Outstanding | 8 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 4 years 6 months 29 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 37.33 | |||
Options Exercisable | 6 | |||
Weighted Average Exercise Price, Options Exercisable | $ 37.33 | |||
$37.70 – $37.70 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 37.70 | |||
Range of Exercise Prices, high | $ 37.70 | |||
Options Outstanding | 160 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 8 years 14 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 37.70 | |||
Options Exercisable | 50 | |||
Weighted Average Exercise Price, Options Exercisable | $ 37.70 | |||
$38.24 – $42.41 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 38.24 | |||
Range of Exercise Prices, high | $ 42.41 | |||
Options Outstanding | 66 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 6 years 1 month 24 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 42.13 | |||
Options Exercisable | 56 | |||
Weighted Average Exercise Price, Options Exercisable | $ 42.25 | |||
$42.94 – $45.92 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 42.94 | |||
Range of Exercise Prices, high | $ 45.92 | |||
Options Outstanding | 22 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 4 years 4 months 24 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 44.74 | |||
Options Exercisable | 16 | |||
Weighted Average Exercise Price, Options Exercisable | $ 44.80 | |||
$47.04 – $47.04 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 47.04 | |||
Range of Exercise Prices, high | $ 47.04 | |||
Options Outstanding | 70 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 5 years 14 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 47.04 | |||
Options Exercisable | 52 | |||
Weighted Average Exercise Price, Options Exercisable | $ 47.04 | |||
$48.64 – $52.98 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 48.64 | |||
Range of Exercise Prices, high | $ 52.98 | |||
Options Outstanding | 16 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 4 years 8 months 12 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 51.28 | |||
Options Exercisable | 13 | |||
Weighted Average Exercise Price, Options Exercisable | $ 51.12 | |||
$53.22 – $53.22 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 53.22 | |||
Range of Exercise Prices, high | $ 53.22 | |||
Options Outstanding | 101 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 9 years 14 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 53.22 | |||
$29.88 – $53.22 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Range of Exercise Prices, low | 29.88 | |||
Range of Exercise Prices, high | $ 53.22 | |||
Options Outstanding | 645 | |||
Weighted Average Remaining Contractual Life, Options Outstanding | 6 years 7 months 28 days | |||
Weighted Average Exercise Price, Options Outstanding | $ 41.09 | |||
Options Exercisable | 340 | |||
Weighted Average Exercise Price, Options Exercisable | $ 38.96 |
Time-Based Restricted Stock Uni
Time-Based Restricted Stock Unit Activity (Detail) - Time-Based Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Shares Outstanding | |||
Outstanding Beginning Balance, Shares | 494 | 500 | 460 |
Granted, Shares | 179 | 154 | 200 |
Vested or released, Shares | (118) | (102) | (89) |
Forfeited, Shares | (46) | (58) | (71) |
Outstanding Ending Balance, Shares | 509 | 494 | 500 |
Weighted Average Fair Value | |||
Outstanding Beginning Balance, Weighted Average Fair Value | $ 40.99 | $ 37.72 | $ 39.75 |
Granted, Weighted Average Fair Value | 45.88 | 47.85 | 35.72 |
Vested or released, Weighted Average Fair Value | 35.57 | 35.66 | 42.34 |
Forfeited, Weighted Average Fair Value | 44.49 | 40.70 | 39.51 |
Outstanding Ending Balance, Weighted Average Fair Value | $ 43.65 | $ 40.99 | $ 37.72 |
Performance-Based Restricted St
Performance-Based Restricted Stock Unit Activity (Detail) - Performance Based Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Shares Outstanding | |||
Outstanding Beginning Balance, Shares | 105 | 68 | 54 |
Granted, Shares | 31 | 38 | 40 |
Vested or released, Shares | (28) | 0 | 0 |
Forfeited, Shares | (3) | (1) | (26) |
Outstanding Ending Balance, Shares | 105 | 105 | 68 |
Weighted Average Fair Value | |||
Outstanding Beginning Balance, Weighted Average Fair Value | $ 38.32 | $ 38.68 | $ 37.87 |
Granted, Weighted Average Fair Value | 53.22 | 37.70 | 35.95 |
Vested or released, Weighted Average Fair Value | 42.41 | 0 | 0 |
Forfeited, Weighted Average Fair Value | 43.13 | 38.66 | 39.12 |
Outstanding Ending Balance, Weighted Average Fair Value | $ 41.42 | $ 38.32 | $ 38.68 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution rate towards employee contribution | 33.00% | ||
Percentage of deferred earnings in employer matching contribution rate | 6.00% | ||
Employer contribution | $ 600,000 | $ 600,000 | $ 600,000 |
Base compensation percentage for participating employees based on eligible bonus maximum | 100.00% | ||
Other assets, net | $ 35,812,000 | 29,193,000 | |
Other liabilities | 11,869,000 | 35,132,000 | |
Deferred compensation plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other assets, net | 11,400,000 | 7,200,000 | |
Other liabilities | 11,200,000 | $ 7,300,000 | |
Contributions made or accrued | $ 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Jacmar | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |
New agreement terms | 5 years |
Agreement maturing date | 2020-06 |
Related party transaction agreement maturing description | The agreement expires in June 2020 and automatically renews for two successive one-year periods (effectively expiring June 2022), unless either party provides a non-renewal notice 90 days prior to the end of each contract year. |
Related Party Transactions - Su
Related Party Transactions - Summary of Amounts Included in Cost of Sales and Occupancy and Operating Expenses Related to Jacmar (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | ||
Related Party Transaction [Line Items] | ||||
Total cost of sales | [1] | $ 295,009 | $ 281,953 | $ 268,707 |
Total occupancy and operating | [1] | $ 256,383 | $ 239,446 | $ 219,863 |
Cost of sales | Supplier Concentration Risk | ||||
Related Party Transaction [Line Items] | ||||
Concentration percentage | 100.00% | 100.00% | 100.00% | |
Occupancy and operating | Supplier Concentration Risk | ||||
Related Party Transaction [Line Items] | ||||
Concentration percentage | 100.00% | 100.00% | 100.00% | |
Jacmar | ||||
Related Party Transaction [Line Items] | ||||
Total cost of sales | $ 85,794 | $ 85,788 | $ 83,554 | |
Total occupancy and operating | $ 9,307 | $ 9,697 | $ 9,247 | |
Jacmar | Cost of sales | Supplier Concentration Risk | ||||
Related Party Transaction [Line Items] | ||||
Concentration percentage | 29.10% | 30.40% | 31.10% | |
Jacmar | Occupancy and operating | Supplier Concentration Risk | ||||
Related Party Transaction [Line Items] | ||||
Concentration percentage | 3.60% | 4.00% | 4.20% | |
Third Party Suppliers | ||||
Related Party Transaction [Line Items] | ||||
Total cost of sales | $ 209,215 | $ 196,165 | $ 185,153 | |
Total occupancy and operating | $ 247,076 | $ 229,749 | $ 210,616 | |
Third Party Suppliers | Cost of sales | Supplier Concentration Risk | ||||
Related Party Transaction [Line Items] | ||||
Concentration percentage | 70.90% | 69.60% | 68.90% | |
Third Party Suppliers | Occupancy and operating | Supplier Concentration Risk | ||||
Related Party Transaction [Line Items] | ||||
Concentration percentage | 96.40% | 96.00% | 95.80% | |
[1] | Related party costs included in cost of sales are $85,794, $85,788 and $83,554 for fiscal years 2019, 2018, and 2017, respectively. Related party costs included in occupancy and operating are $9,307, $9,697 and $9,247 for fiscal years 2019, 2018, and 2017, respectively. See Note 13 for further information. |
Related Party Transactions - _2
Related Party Transactions - Summary of Amounts Included in Accounts Payables Related to Jacmar (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | |
Related Party Transaction [Line Items] | |||
Total accounts payable | [1] | $ 23,422 | $ 36,505 |
Third Party Suppliers | |||
Related Party Transaction [Line Items] | |||
Total accounts payable | 20,879 | 30,395 | |
Jacmar | |||
Related Party Transaction [Line Items] | |||
Total accounts payable | $ 2,543 | $ 6,110 | |
[1] | Included in accounts payable for fiscal years 2019 and 2018 is $2,543 and $6,110, respectively, of related party trade payables. See Note 13 for further information. |
Summarized Unaudited Consolidat
Summarized Unaudited Consolidated Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Oct. 01, 2019 | Jul. 02, 2019 | Apr. 02, 2019 | Jan. 01, 2019 | Oct. 02, 2018 | Jul. 03, 2018 | Apr. 03, 2018 | Dec. 31, 2019 | Jan. 01, 2019 | Jan. 02, 2018 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Total revenues | $ 291,067 | $ 278,739 | $ 301,090 | $ 290,554 | $ 280,523 | $ 270,268 | $ 287,634 | $ 278,523 | $ 1,161,450 | $ 1,116,948 | $ 1,031,782 | ||||||||
Income from operations | 16,309 | 3,270 | 15,755 | 13,785 | 14,187 | 7,890 | 19,120 | 16,373 | 49,119 | 57,570 | 37,904 | ||||||||
Net income | $ 14,511 | $ 3,671 | $ 14,192 | $ 12,864 | $ 10,685 | $ 8,516 | $ 16,945 | $ 14,664 | $ 45,238 | $ 50,810 | $ 44,780 | ||||||||
Basic net income per share | $ 0.76 | [1] | $ 0.18 | [1] | $ 0.69 | [1] | $ 0.61 | [1] | $ 0.50 | [1] | $ 0.40 | [1] | $ 0.81 | [1] | $ 0.71 | [1] | $ 2.23 | $ 2.42 | $ 2.10 |
Diluted net income per share | 0.75 | [1] | 0.18 | [1] | 0.68 | [1] | 0.60 | [1] | 0.49 | [1] | 0.39 | [1] | 0.79 | [1] | 0.70 | [1] | $ 2.20 | $ 2.35 | $ 2.06 |
Cash dividends declared per common share | $ 0.13 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | |||||||||||
[1] | Basic and diluted net income per share calculations for each quarter are based on the weighted average diluted shares outstanding for that quarter and may not sum to the full year total amount as presented on our Consolidated Statements of Income. |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - $ / shares | Feb. 18, 2020 | Dec. 31, 2019 | Oct. 01, 2019 | Jul. 02, 2019 | Apr. 02, 2019 | Jan. 01, 2019 | Oct. 02, 2018 | Jul. 03, 2018 | Apr. 03, 2018 |
Subsequent Event [Line Items] | |||||||||
Cash dividends declared per common share | $ 0.13 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | |
Board of Directors [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Cash dividends declared per common share | $ 0.13 | ||||||||
Common stock payable date | Mar. 24, 2020 | ||||||||
Common stock payable record date | Mar. 10, 2020 |