Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 27, 2020 | Oct. 29, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 27, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35373 | |
Entity Registrant Name | FIESTA RESTAURANT GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0712224 | |
Entity Address, Address Line One | 14800 Landmark Boulevard, Suite 500 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75254 | |
City Area Code | 972 | |
Local Phone Number | 702-9300 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Entity Trading Symbol | FRGI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001534992 | |
Current Fiscal Year End Date | --01-03 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 25,920,828 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Current assets: | ||
Cash | $ 17,997 | $ 13,413 |
Accounts receivable | 8,457 | 7,933 |
Inventories | 3,281 | 3,394 |
Prepaid rent | 115 | 117 |
Income tax receivable | 11,121 | 3,821 |
Prepaid expenses and other current assets | 13,287 | 10,605 |
Total current assets | 54,258 | 39,283 |
Property and equipment, net | 174,551 | 211,944 |
Operating lease right-of-use assets | 258,913 | 251,272 |
Goodwill | 56,307 | 56,307 |
Other assets | 7,739 | 9,835 |
Total assets | 551,768 | 568,641 |
Current liabilities: | ||
Current portion of long-term debt | 262 | 212 |
Accounts payable | 28,950 | 14,776 |
Accrued payroll, related taxes and benefits | 9,599 | 9,866 |
Accrued real estate taxes | 7,959 | 6,497 |
Other current liabilities | 34,174 | 32,269 |
Total current liabilities | 80,944 | 63,620 |
Long-term debt, net of current portion | 41,586 | 76,823 |
Operating lease liabilities | 265,356 | 256,798 |
Deferred tax liabilities | 5,311 | 4,759 |
Other non-current liabilities | 12,646 | 8,405 |
Total liabilities | 405,843 | 410,405 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 20,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $0.01 par value; 100,000,000 shares authorized, 27,914,555 and 27,461,697 shares issued, respectively, and 25,291,941 and 25,612,597 shares outstanding, respectively | 273 | 271 |
Additional paid-in capital | 175,614 | 173,132 |
Retained earnings (accumulated deficit) | (9,183) | 1,884 |
Treasury stock, at cost; 1,993,495 and 1,493,495 shares, respectively | (20,779) | (17,051) |
Total stockholders' equity | 145,925 | 158,236 |
Total liabilities and stockholders' equity | $ 551,768 | $ 568,641 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 27, 2020 | Dec. 29, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 27,914,555 | 27,461,697 |
Common stock, shares outstanding | 25,291,941 | 25,612,597 |
Treasury stock, shares | 1,993,495 | 1,493,495 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Revenues: | ||||
Revenues | $ 137,332 | $ 164,248 | $ 405,899 | $ 501,481 |
Costs and expenses: | ||||
Cost of sales | 41,752 | 52,056 | 125,835 | 156,324 |
Restaurant wages and related expenses (including stock-based compensation expense of $47, $102, $152 and $145, respectively) | 35,545 | 44,459 | 109,787 | 135,261 |
Restaurant rent expense | 11,174 | 11,970 | 33,792 | 35,613 |
Other restaurant operating expenses | 21,138 | 24,153 | 61,638 | 68,429 |
Advertising expense | 2,033 | 6,385 | 9,959 | 17,789 |
General and administrative (including stock-based compensation expense of $597, $509, $2,332 and $1,993, respectively) | 11,855 | 13,820 | 38,527 | 42,387 |
Depreciation and amortization | 9,432 | 10,165 | 28,427 | 29,520 |
Pre-opening costs | 0 | 77 | 69 | 863 |
Impairment and other lease charges | 2,404 | 3,254 | 8,922 | 4,667 |
Goodwill impairment | 0 | 21,424 | 0 | 67,909 |
Closed restaurant rent expense, net of sublease income | 1,481 | 726 | 4,943 | 3,485 |
Other expense (income), net | (1,304) | 64 | 388 | 920 |
Total operating expenses | 135,510 | 188,553 | 422,287 | 563,167 |
Income (loss) from operations | 1,822 | (24,305) | (16,388) | (61,686) |
Interest expense | 1,172 | 823 | 3,370 | 3,024 |
Loss on extinguishment of debt | 212 | 0 | 212 | 0 |
Income (loss) before income taxes | 438 | (25,128) | (19,970) | (64,710) |
Benefit from income taxes | (4,155) | (2,946) | (8,903) | (1,377) |
Net income (loss) | $ 4,593 | $ (22,182) | $ (11,067) | $ (63,333) |
Earnings (loss) per common share: | ||||
Basic (usd per share) | $ 0.18 | $ (0.84) | $ (0.44) | $ (2.37) |
Diluted (usd per share) | $ 0.18 | $ (0.84) | $ (0.44) | $ (2.37) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 25,290,357 | 26,548,116 | 25,359,004 | 26,734,822 |
Diluted (in shares) | 25,291,719 | 26,548,116 | 25,359,004 | 26,734,822 |
Restaurant sales | ||||
Revenues: | ||||
Revenues | $ 136,819 | $ 163,589 | $ 404,452 | $ 499,483 |
Franchise royalty revenues and fees | ||||
Revenues: | ||||
Revenues | $ 513 | $ 659 | $ 1,447 | $ 1,998 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Stock-based compensation | $ 600 | $ 600 | $ 2,500 | $ 2,100 |
Restaurant Wages And Related Expenses | ||||
Stock-based compensation | 47 | 102 | 152 | 145 |
General and Administrative Expense | ||||
Stock-based compensation | $ 597 | $ 509 | $ 2,332 | $ 1,993 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock |
Increase (Decrease) in Stockholders' Equity | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||
Beginning shares at Dec. 30, 2018 | 26,858,988 | ||||||
Beginning balance at Dec. 30, 2018 | $ 240,059 | $ 14,002 | $ 270 | $ 170,290 | $ 72,268 | $ 14,002 | $ (2,769) |
Increase (Decrease) in Stockholders' Equity | |||||||
Stock-based compensation | 792 | 792 | |||||
Vesting of restricted shares (in shares) | 68,286 | ||||||
Vesting of restricted shares | (1) | $ 0 | (1) | ||||
Purchase of treasury stock (in shares) | (158,269) | ||||||
Purchase of treasury stock | (2,199) | (2,199) | |||||
Net income (loss) | 2,289 | 2,289 | |||||
Ending shares at Mar. 31, 2019 | 26,769,005 | ||||||
Ending balance at Mar. 31, 2019 | 254,942 | $ 270 | 171,081 | 88,559 | (4,968) | ||
Beginning shares at Dec. 30, 2018 | 26,858,988 | ||||||
Beginning balance at Dec. 30, 2018 | $ 240,059 | $ 14,002 | $ 270 | 170,290 | 72,268 | $ 14,002 | (2,769) |
Increase (Decrease) in Stockholders' Equity | |||||||
Purchase of treasury stock (in shares) | (1,064,537) | ||||||
Purchase of treasury stock | $ (11,300) | ||||||
Net income (loss) | (63,333) | ||||||
Ending shares at Sep. 29, 2019 | 25,926,561 | ||||||
Ending balance at Sep. 29, 2019 | 181,508 | $ 271 | 172,426 | 22,937 | (14,126) | ||
Beginning shares at Mar. 31, 2019 | 26,769,005 | ||||||
Beginning balance at Mar. 31, 2019 | 254,942 | $ 270 | 171,081 | 88,559 | (4,968) | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Stock-based compensation | 735 | 735 | |||||
Vesting of restricted shares (in shares) | 57,547 | ||||||
Vesting of restricted shares | 0 | $ 1 | (1) | ||||
Net income (loss) | (43,440) | (43,440) | |||||
Ending shares at Jun. 30, 2019 | 26,826,552 | ||||||
Ending balance at Jun. 30, 2019 | 212,237 | $ 271 | 171,815 | 45,119 | (4,968) | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Stock-based compensation | 611 | 611 | |||||
Vesting of restricted shares (in shares) | 6,277 | ||||||
Vesting of restricted shares | 0 | $ 0 | 0 | ||||
Purchase of treasury stock (in shares) | (906,268) | ||||||
Purchase of treasury stock | (9,158) | (9,158) | |||||
Net income (loss) | (22,182) | (22,182) | |||||
Ending shares at Sep. 29, 2019 | 25,926,561 | ||||||
Ending balance at Sep. 29, 2019 | $ 181,508 | $ 271 | 172,426 | 22,937 | (14,126) | ||
Beginning shares at Dec. 29, 2019 | 25,612,597 | 25,612,597 | |||||
Beginning balance at Dec. 29, 2019 | $ 158,236 | $ 271 | 173,132 | 1,884 | (17,051) | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Stock-based compensation | 812 | 812 | |||||
Vesting of restricted shares (in shares) | 73,998 | ||||||
Vesting of restricted shares | 0 | $ 0 | 0 | ||||
Purchase of treasury stock (in shares) | (500,000) | ||||||
Purchase of treasury stock | (3,728) | (3,728) | |||||
Net income (loss) | (7,317) | (7,317) | |||||
Ending shares at Mar. 29, 2020 | 25,186,595 | ||||||
Ending balance at Mar. 29, 2020 | $ 148,003 | $ 271 | 173,944 | (5,433) | (20,779) | ||
Beginning shares at Dec. 29, 2019 | 25,612,597 | 25,612,597 | |||||
Beginning balance at Dec. 29, 2019 | $ 158,236 | $ 271 | 173,132 | 1,884 | (17,051) | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Purchase of treasury stock (in shares) | (500,000) | ||||||
Purchase of treasury stock | $ (3,700) | ||||||
Net income (loss) | $ (11,067) | ||||||
Ending shares at Sep. 27, 2020 | 25,291,941 | 25,291,941 | |||||
Ending balance at Sep. 27, 2020 | $ 145,925 | $ 273 | 175,614 | (9,183) | (20,779) | ||
Beginning shares at Mar. 29, 2020 | 25,186,595 | ||||||
Beginning balance at Mar. 29, 2020 | 148,003 | $ 271 | 173,944 | (5,433) | (20,779) | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Stock-based compensation | 1,028 | 1,028 | |||||
Vesting of restricted shares (in shares) | 101,661 | ||||||
Vesting of restricted shares | 0 | $ 2 | (2) | ||||
Net income (loss) | (8,343) | (8,343) | |||||
Ending shares at Jun. 28, 2020 | 25,288,256 | ||||||
Ending balance at Jun. 28, 2020 | 140,688 | $ 273 | 174,970 | (13,776) | (20,779) | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Stock-based compensation | 644 | 644 | |||||
Vesting of restricted shares (in shares) | 3,685 | ||||||
Vesting of restricted shares | 0 | $ 0 | 0 | ||||
Net income (loss) | $ 4,593 | 4,593 | |||||
Ending shares at Sep. 27, 2020 | 25,291,941 | 25,291,941 | |||||
Ending balance at Sep. 27, 2020 | $ 145,925 | $ 273 | $ 175,614 | $ (9,183) | $ (20,779) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | |
Operating activities: | ||
Net loss | $ (11,067) | $ (63,333) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Gain on disposals of property and equipment | (1,047) | (6) |
Stock-based compensation | 2,484 | 2,138 |
Impairment and other lease charges | 8,922 | 4,667 |
Goodwill impairment | 0 | 67,909 |
Loss on extinguishment of debt | 212 | 0 |
Depreciation and amortization | 28,427 | 29,520 |
Amortization of deferred financing costs | 261 | 203 |
Deferred income taxes | 552 | (2,112) |
Changes in other operating assets and liabilities | 18,230 | 11,988 |
Net cash provided by operating activities | 46,974 | 50,974 |
Capital expenditures: | ||
New restaurant development | (1,846) | (10,681) |
Restaurant remodeling | (1,087) | (368) |
Other restaurant capital expenditures | (5,847) | (15,845) |
Corporate and restaurant information systems | (3,136) | (7,179) |
Total capital expenditures | (11,916) | (34,073) |
Proceeds from disposals of properties | 2,864 | 1,774 |
Proceeds from insurance recoveries | 0 | 42 |
Proceeds from sale-leaseback transactions | 6,284 | 0 |
Net cash used in investing activities | (2,768) | (32,257) |
Financing activities: | ||
Borrowings on revolving credit facility | 154,143 | 21,000 |
Repayments on revolving credit facility | (189,225) | (30,000) |
Borrowings of unsecured debt | 15,000 | 0 |
Repayments of unsecured debt | (15,000) | 0 |
Principal payments on finance leases | (166) | (109) |
Financing costs associated with debt amendment | (646) | 0 |
Payments to purchase treasury stock | (3,728) | (11,357) |
Net cash used in financing activities | (39,622) | (20,466) |
Net change in cash | 4,584 | (1,749) |
Cash, beginning of period | 13,413 | 5,258 |
Cash, end of period | $ 17,997 | $ 3,509 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Business Description. Fiesta Restaurant Group, Inc. ("Fiesta Restaurant Group" or "Fiesta") owns, operates and franchises two restaurant brands through its wholly-owned subsidiaries Pollo Operations, Inc. and its subsidiaries, Pollo Franchise, Inc. (collectively "Pollo Tropical"), and Taco Cabana, Inc. and its subsidiaries (collectively "Taco Cabana"). Unless the context otherwise requires, Fiesta and its subsidiaries, Pollo Tropical and Taco Cabana, are collectively referred to as the "Company." At September 27, 2020 , the Company owned and operated 138 Pollo Tropical ® restaurants and 145 Taco Cabana ® restaurants. All of the Pollo Tropical restaurants are located in Florida and all of the Taco Cabana restaurants are located in Texas. At September 27, 2020 , the Company franchised a total of 33 Pollo Tropical restaurants and seven Taco Cabana restaurants. The franchised Pollo Tropical restaurants include 17 in Puerto Rico, four in Panama, two in Guyana, one in Ecuador, one in the Bahamas, seven on college campuses and one at a hospital in Florida. The franchised Taco Cabana restaurants include six in New Mexico and one on a college campus in Texas. The COVID-19 pandemic has affected and is continuing to affect the restaurant industry and the economy. In response to COVID-19 and in compliance with governmental restrictions, the Company closed the dining room seating areas in all Pollo Tropical and Taco Cabana restaurants, limiting service to take-out, drive-thru, and delivery operations beginning in mid-March 2020. During the second quarter of 2020, certain restrictions were lifted and the Company opened certain dining rooms on a limited basis; however, it temporarily closed all dining rooms on July 12, 2020, in response to increased COVID-19 infection rates in both Texas and Florida. The Company began re-opening certain dining rooms and patios with limited capacity and hours at both brands and the state of Florida removed restaurant capacity restrictions in late September 2020. The Company expects the COVID-19 restrictions and economic impact to result in reduced earnings. As the COVID-19 situation is dynamic, the Company does not currently know when it will resume full operations or when its results of operations will return to pre-COVID-19 levels. Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. Fiscal Year . The Company uses a 52 – 53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended December 29, 2019 contained 52 weeks. The three and nine months ended September 27, 2020 and September 29, 2019 each contained thirteen and thirty-nine weeks, respectively. The fiscal year ending January 3, 2021 will contain 53 weeks. Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and nine months ended September 27, 2020 and September 29, 2019 have been prepared without an audit pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three and nine months ended September 27, 2020 and September 29, 2019 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 29, 2019 included in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2019 . The December 29, 2019 balance sheet data is derived from those audited financial statements. Guidance Adopted in 2020. In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , which aligns 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 (and hosting arrangements that include an internal-use software license). The Company adopted this new accounting standard on December 30, 2019 and will apply it prospectively to all implementation costs incurred after the date of adoption. The adoption of this standard did not have a material effect on the Company's financial statements. The Company deferred and amortized application development stage costs for cloud-based computing arrangements over the life of the related service (subscription) agreement in the same line item that the fees associated with the subscription arrangement were presented prior to adoption of the new standard. Revenue Recognition. Revenue is recognized upon transfer of promised products or services to customers in an amount that reflects the consideration the Company received in exchange for those products or services. Revenues from the Company's owned and operated restaurants are recognized when payment is tendered at the time of sale. Franchise royalty revenues are based on a percentage of gross sales and are recorded as income when earned. Initial franchise fees and area development fees associated with new franchise agreements are not distinct from the continuing rights and services offered by the Company during the term of the related franchise agreements and are recognized as income over the term of the related franchise agreements. A portion of the initial franchise fee is allocated to training services and is recognized as revenue when the Company completes the training services. Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In determining fair value, the accounting standards establish a three-level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect management's own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value: • Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. • Revolving Credit Borrowings. The Company's senior credit facility was amended on July 10, 2020. The fair value of outstanding revolving credit borrowings under the Company's senior secured revolving credit facility (the "senior credit facility") and the amended senior secured revolving credit facility (the "amended senior credit facility"), which is considered Level 2, is based on current LIBOR rates. The fair value of the amended senior credit facility and senior credit facility was approximately $39.9 million at September 27, 2020 and $75.0 million at December 29, 2019 , respectively. The carrying value of the amended senior credit facility and senior credit facility was $39.9 million at September 27, 2020 and $ 75.0 million at December 29, 2019 , respectively. Long-Lived Assets . The Company assesses the recoverability of property and equipment and definite-lived intangible assets, including right-of-use ("ROU") lease assets, by determining whether the carrying value of these assets can be recovered over their respective remaining lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. See Note 3—Impairment of Long-Lived Assets and Other Lease Charges. Leases. The Company assesses whether an agreement contains a lease at inception. All leases are reviewed for finance or operating classification once control is obtained. The majority of the Company's leases are operating leases. Operating leases are included within operating lease right-of-use assets, other current liabilities, and operating lease liabilities in the condensed consolidated balance sheets. Finance leases are included within property and equipment, net, current portion of long-term debt, and long-term debt, net of current portion in the condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance and is reduced by lease incentives received. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate at commencement date in determining the present value of lease payments. Lease terms include options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company assumes options are reasonably certain to be exercised when such options are required to achieve a minimum 20 -year lease term for new restaurant properties and when it incurs significant leasehold improvement costs near the end of a lease term. The Company uses judgment and available data to allocate consideration in a contract when it leases land and a building. The Company also uses judgment in determining its incremental borrowing rate, which includes selecting a yield curve based on a synthetic credit rating determined using a valuation model. Lease expense for lease payments is recognized on a straight-line basis over the lease term unless the related ROU asset has been adjusted for an impairment charge. The Company has real estate lease agreements with lease and non-lease components, which are accounted for as a single lease component. As a result of the COVID-19 pandemic the Company entered into rent deferral agreements with approximately 185 landlords as of September 27, 2020 . Under these agreements, certain rent payments are deferred without penalty for various periods, generally for up to three months. The Company also entered into two limited abatement agreements. The Company has elected to account for lease concessions and deferrals resulting directly from COVID-19 as though the enforceable rights and obligations to the concessions and deferrals existed in the respective contracts at lease inception and did not account for the concessions and deferrals as lease modifications. During the third quarter of 2020, the Company sold two restaurant properties for total proceeds of $6.3 million in sale-leaseback transactions that resulted in a total gain of $1.5 million , which is recognized in other expense (income), net in the condensed consolidated statements of operations, and a financial liability of $0.5 million , which is recognized in other current and non-current liabilities in the condensed consolidated balance sheet. Use of Estimates . The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: insurance liabilities, evaluation for impairment of goodwill and long-lived assets, lease accounting matters, and deferred income tax assets. Actual results could differ from those estimates. Due to the uncertainty associated with the unprecedented nature of the COVID-19 pandemic and the impact it will have on the Company's operations and future cash flows, it is reasonably possible that the estimates of future cash flows used in impairment assessments will change in the near term and the effect of the change could be material. The Company's current estimates assume that operating restrictions, regulations and directives for restaurants and other changes related to COVID-19 will continue to have a significant impact through at least the first half of 2021 with the greatest impact in the near term. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 27, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: September 27, 2020 December 29, 2019 Prepaid contract expenses $ 3,591 $ 4,410 Assets held for sale (1) 7,098 4,110 Other 2,598 2,085 $ 13,287 $ 10,605 (1) As of September 27, 2020 , two closed Pollo Tropical restaurant properties and one operating and two closed Taco Cabana restaurant properties owned by the Company were classified as held for sale. As of December 29, 2019 , one closed Pollo Tropical restaurant property and two closed Taco Cabana restaurant properties owned by the Company were classified as held for sale. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets and Other Lease Charges | 9 Months Ended |
Sep. 27, 2020 | |
Property, Plant and Equipment [Abstract] | |
Impairment of Long-Lived Assets and Other Lease Charges | Impairment of Long-Lived Assets and Other Lease Charges The Company reviews its long-lived assets, principally property and equipment and lease ROU assets, for impairment at the restaurant level. The Company has elected to exclude operating lease payments and liabilities from future cash flows and carrying values, respectively, in its impairment review. In addition to considering management's plans, known regulatory or governmental actions and damage due to acts of God (hurricanes, tornadoes, etc.), the Company considers a triggering event to have occurred related to a specific restaurant if the restaurant's cash flows, exclusive of operating lease payments, for the last twelve months are less than a minimum threshold or if consistent levels of cash flows for the remaining lease period are less than the carrying value of the restaurant's assets. If an indicator of impairment exists for any of its assets, an estimate of undiscounted future cash flows, exclusive of operating lease payments, over the life of the primary asset for each restaurant is compared to that long-lived asset group's carrying value, excluding operating lease liabilities. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis. If actual performance does not achieve the projections, the Company may recognize impairment charges in future periods, and such charges could be material. A summary of impairment of long-lived assets and other lease charges (recoveries) recorded by segment is as follows: Three Months Ended Nine Months Ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Pollo Tropical $ 2,395 $ 165 $ 8,023 $ (162 ) Taco Cabana 9 3,089 899 4,829 $ 2,404 $ 3,254 $ 8,922 $ 4,667 Impairment and other lease charges for the three and nine months ended September 27, 2020 for Pollo Tropical include impairment charges of $2.6 million and $7.3 million , respectively, and other lease charges (gains) of $(0.2) million and $0.7 million , respectively. Pollo Tropical impairment charges for the three months ended September 27, 2020 related primarily to the write-down of saucing islands and self-service soda machines that are being removed from dining rooms as a result of COVID-19. For the nine months ended September 27, 2020 , impairment charges also include the impairment of assets from three underperforming Pollo Tropical restaurants, two of which were closed in the third quarter of 2020, for which continued sales declines coupled with the impact of expected sales declines resulted in a decrease in the estimated future cash flows and the write-down of assets held for sale to their fair value less costs to sell. For the three months ended September 27, 2020 , other lease charges for Pollo Tropical related primarily to a gain from lease terminations of $(0.2) million . For the nine months ended September 27, 2020 , other lease charges also included lease termination charges of $0.9 million for restaurant locations the Company decided not to develop. Impairment and other lease charges for the nine months ended September 27, 2020 for Taco Cabana include impairment charges of $1.1 million , and a gain from a lease termination of $(0.2) million . Taco Cabana impairment charges for the nine months ended September 27, 2020 , related primarily to the write-down of assets held for sale to their fair value less costs to sell and the impairment of assets for two underperforming Taco Cabana restaurants for which continued sales declines coupled with the impact of expected sales declines resulted in a decrease in the estimated future cash flows. Impairment and other lease charges for the three and nine months ended September 29, 2019 for Pollo Tropical include impairment charges of $0.2 million and $0.6 million , respectively, related primarily to additional impairment of equipment from previously impaired restaurants and a lease charge recoveries benefit related to previously closed restaurant lease terminations of $(0.8) million for the nine months ended September 29, 2019 . Impairment and other lease charges for the three and nine months ended September 29, 2019 for Taco Cabana include impairment charges of $3.1 million and $4.9 million , respectively, related primarily to impairment of assets for eight underperforming Taco Cabana restaurants for which continued sales declines resulted in a decrease in the estimated future cash flows and equipment from previously impaired restaurants as well as a lease charge recoveries benefit related to previously closed restaurant lease terminations of $(0.1) million for the nine months ended September 29, 2019 . The Company determined the fair value of restaurant equipment, for those restaurants reviewed for impairment, based on current economic conditions, the Company's history of using these assets in the operation of its business and the Company's expectation of how a market participant would value the assets. In addition, for those restaurants reviewed for impairment where the Company owns the land and building, the Company utilized third-party information such as a broker quoted value to determine the fair value of the property. The Company also utilized discounted future cash flows to determine the fair value of assets for certain leased restaurants with positive discounted projected future cash flows. The Company utilized current market lease rent and discount rates to determine the fair value of right-of-use lease assets. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. The Level 3 assets measured at fair value associated with impairment charges recorded during the nine months ended September 27, 2020 totaled $4.9 million . |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 27, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other current liabilities consist of the following: September 27, 2020 December 29, 2019 Operating lease liabilities $ 23,932 $ 22,338 Accrued workers' compensation and general liability claims 4,457 4,354 Sales and property taxes 1,807 1,889 Accrued occupancy costs (1) 365 891 Other 3,613 2,797 $ 34,174 $ 32,269 (1) Accrued occupancy costs primarily consisted of obligations pertaining to closed restaurant locations. Other non-current liabilities consist of the following: September 27, 2020 December 29, 2019 Accrued workers' compensation and general liability claims $ 7,348 $ 7,348 Accrued payroll taxes (1) 3,719 — Deferred compensation 457 424 Accrued occupancy costs (2) 78 78 Other 1,044 555 $ 12,646 $ 8,405 (1) Includes employer Social Security payroll tax deferred as a result of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") (2) Accrued occupancy costs primarily consisted of obligations pertaining to closed restaurant locations. The following table presents the activity in the closed restaurant reserve, of which $0.1 million is included in non-current liabilities at both September 27, 2020 and December 29, 2019 , with the remainder in other current liabilities. Nine Months Ended September 27, 2020 Year Ended December 29, 2019 Balance, beginning of period $ 752 $ 8,819 Payments, net (248 ) (1,405 ) Other adjustments (1) (178 ) (6,662 ) Balance, end of period $ 326 $ 752 (1) As a result of adopting ASC 842 on December 31, 2018, the portion of the closed restaurant reserve related to operating lease rental payments totaling $6.0 million was reclassified and included as a component of the related ROU assets during the twelve months ended December 29, 2019. The portion of the closed restaurant reserve related to variable ancillary lease costs was not reclassified and was not included as a reduction to ROU assets. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 27, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following: September 27, 2020 December 29, 2019 Revolving credit facility $ 39,918 $ 75,000 Finance/capital leases 1,930 2,035 41,848 77,035 Less: current portion of long-term debt (262 ) (212 ) $ 41,586 $ 76,823 Amended Senior Credit Facility. On July 10, 2020 , the Company entered into the Second Amendment to Credit Agreement (the credit agreement as amended, the "amended senior credit facility") among the Company and a syndicate of lenders. The amended senior credit facility includes adjustments to the Adjusted Leverage Ratio and Fixed Charge Coverage Ratio (each as amended and defined in the amended senior credit facility) that are more reflective of current sales and profit trends. For the remainder of 2020, the only applicable financial covenants under the Company's amended senior credit facility that require compliance will be a minimum liquidity covenant and a maximum capital expenditure covenant discussed below. The amended senior credit facility reduced the aggregate maximum commitments available for revolving credit borrowings (including standby letters of credit) under the amended senior credit facility (the "revolving commitment") by $30.0 million to $120.0 million on July 10, 2020 . The amended senior credit facility further reduces the revolving commitment by (i) $15.0 million to $105.0 million on January 3, 2021 and (ii) $10.0 million to $95.0 million on April 4, 2021 . On September 27, 2020 , there were $39.9 million in outstanding borrowings under the amended senior credit facility. The amended senior credit facility provides that the Company is not required to be in compliance with the Adjusted Leverage Ratio and Fixed Charge Coverage Ratio under the amended senior credit facility from July 10, 2020 through April 3, 2021 . The Company is required to be in compliance with the Adjusted Leverage Ratio and Fixed Charge Coverage Ratio beginning with the fiscal quarter ending April 4, 2021 (the first quarter of 2021). After April 3, 2021, the Company will be permitted to exercise equity cures with respect to compliance with the Adjusted Leverage Ratio and Fixed Charge Coverage Ratio subject to certain restrictions as set forth in the amended senior credit facility. The amended senior credit facility also provides that the Company must maintain minimum liquidity (as defined in the amended senior credit facility, generally unrestricted cash plus available borrowings under the amended senior credit facility) of (i) $40.0 million through September 27, 2020 , (ii) $30.0 million from September 28, 2020 through January 3, 2021 , and (iii) $25.0 million on January 4, 2021 and thereafter. Borrowings under the amended senior credit facility bear interest at a rate per annum, at the Company's option, equal to either (all terms as defined in the amended senior credit facility): 1) the Alternate Base Rate plus the Applicable Rate of 4.00% with a minimum Alternate Base Rate of 2.00% , or 2) the Adjusted LIBOR Rate plus the Applicable Rate of 5.00% with a minimum Adjusted LIBOR Rate of 1.00% . In addition, the amended senior credit facility requires the Company to pay (i) a commitment fee of 0.50% per annum on the daily amount of the unused portion of the facility and (ii) a letter of credit participation fee based on the applicable LIBOR margin and the dollar amount of outstanding letters of credit. The amended senior credit facility also provides for a benchmark replacement (as defined in the amended senior credit facility) for LIBOR, which may be a SOFR-based rate, when LIBOR becomes unavailable or an earlier date under certain circumstances. The outstanding borrowings under the amended senior credit facility are prepayable without penalty (other than customary breakage costs). The amended senior credit facility requires that proceeds received when a prepayment event (as defined in the amended senior credit facility) occurs must be used to reduce the outstanding revolving credit borrowings under the amended senior credit facility which will result in a corresponding reduction of the revolving commitment. As of September 27, 2020 , the outstanding revolving credit borrowings and revolving commitment were reduced by $9.1 million from proceeds received. The amended senior credit facility further provides that Company must prepay outstanding revolving credit borrowings if the outstanding revolving credit borrowings exceed $75.0 million and excess cash (as defined in the amended senior credit facility) of the Company exceeds $20.0 million . The amended senior credit facility contains certain covenants, including, without limitation, those limiting Company's and its subsidiaries' ability to, among other things, incur indebtedness, incur liens, sell or acquire assets or businesses, change the character of its business in any material respects, engage in certain transactions with related parties, make certain investments, make certain restricted payments or pay dividends, including, without limitation, (i) that capital expenditures by the Company cannot exceed an aggregate of $22.0 million for each of the fiscal years ending 2020 and 2021 and cannot exceed an aggregate of $25.0 million for the fiscal year ending 2022 (the "Capital Expenditures Covenant") and (ii) limiting the construction or development of new restaurants. The amended senior credit facility also provides that the Company will be required to engage a financial advisor or chief restructuring officer if the Company is not in compliance with certain milestones. The Company's obligations under the amended senior credit facility are secured by all of the assets of the Company and its subsidiaries (including a pledge of all of the capital stock and equity interests of its subsidiaries) pursuant to an amended and restated security agreement. Under the amended senior credit facility, the lenders may terminate their obligation to advance and may declare the unpaid balance of borrowings, or any part thereof, immediately due and payable upon the occurrence and during the continuance of customary defaults which include, without limitation, payment default, covenant defaults, bankruptcy type defaults, defaults on other indebtedness, certain judgments or upon the occurrence of a change of control (as specified in the amended senior credit facility). The amended senior credit facility contains customary default provisions, including without limitation, a cross default provision pursuant to which it is an event of default under this facility if there is a default under any of the Company's indebtedness having an outstanding principal amount of $5.0 million or more which results in the acceleration of such indebtedness prior to its stated maturity or is caused by a failure to pay principal when due. The amended senior credit facility matures on November 30, 2022 . As of September 27, 2020 , the Company was in compliance with the financial covenants under its amended senior credit facility. After reserving $3.5 million for letters of credit, $67.5 million was available for borrowing under the amended senior credit facility at September 27, 2020 . Senior Credit Facility. In November 2017, the Company entered into a senior secured revolving credit facility with a syndicate of lenders. Prior to July 10, 2020, the senior credit facility provided for aggregate revolving credit borrowings of up to $150.0 million (including up to $15.0 million available for letters of credit) and was scheduled to mature on November 30, 2022 . The senior credit facility also provided for potential incremental increases of up to $50.0 million to the revolving credit borrowings available under the senior credit facility. The senior credit facility was amended on July 10, 2020. Borrowings under the senior credit facility bore interest at a per annum rate, at the Company's option, equal to either (all terms as defined in the senior credit facility agreement): 1) the Alternate Base Rate plus the applicable margin of 0.75% to 1.50% based on the Company's Adjusted Leverage Ratio, or 2) the LIBOR Rate plus the applicable margin of 1.75% to 2.50% based on the Company's Adjusted Leverage Ratio. In addition, the senior credit facility required the Company to pay (i) a commitment fee based on the applicable Commitment Fee rate of 0.25% to 0.35% , based on the Company's Adjusted Leverage Ratio, (with a rate of 0.35% at September 27, 2020 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 27, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Purchase of Treasury Stock In 2018, the Company's board of directors approved a share repurchase program for up to 1,500,000 shares of the Company's common stock. In 2019, the Company's board of directors approved increases to the share repurchase program of an additional 1,500,000 shares of the Company's common stock for an aggregate approval of 3,000,000 shares of the Company's common stock. Under the share repurchase program, shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The share repurchase program has no time limit and may be modified, suspended, superseded or terminated at any time by the Company's board of directors. The Company repurchased 500,000 shares of common stock valued at approximately $3.7 million and 1,064,537 shares of common stock valued at approximately $11.3 million during the nine months ended September 27, 2020 and September 29, 2019 , respectively. The shares repurchased in 2020 were purchased on or before March 12, 2020. The repurchased shares are held as treasury stock at cost. The Company's senior credit facility as amended on July 10, 2020 prohibits share repurchases, and the Company currently does not intend to repurchase additional shares of its common stock for the foreseeable future. Stock-Based Compensation During the nine months ended September 27, 2020 , the Company granted certain employees and non-employee directors a total of 501,706 non-vested restricted shares under the Fiesta Restaurant Group, Inc. 2012 Stock Incentive Plan (the "Fiesta Plan"). The shares granted to employees vest and become non-forfeitable over a four -year vesting period. The shares granted to non-employee directors vest and become non-forfeitable over a one -year vesting period, or for an initial grant to a new director, over a five -year vesting period. The weighted average fair value at grant date for non-vested shares issued during the nine months ended September 27, 2020 and September 29, 2019 was $8.27 and $13.00 per share, respectively. The weighted average fair value at grant date for the restricted stock units subject to market conditions granted in the nine months ended September 29, 2019 was $1.76 per share. Stock-based compensation expense for the three and nine months ended September 27, 2020 was $0.6 million and $2.5 million , respectively, and for the three and nine months ended September 29, 2019 was $0.6 million and $2.1 million , respectively. At September 27, 2020 , the total unrecognized stock-based compensation expense related to non-vested restricted shares and restricted stock units was approximately $5.0 million . At September 27, 2020 , the remaining weighted average vesting period for non-vested restricted shares was 2.8 years and restricted stock units was 0.4 years. A summary of all non-vested restricted shares and restricted stock units activity for the nine months ended September 27, 2020 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at December 29, 2019 355,605 $ 15.47 176,362 $ 9.42 Granted 501,706 8.27 — — Vested and released (178,597 ) 15.20 (747 ) 32.44 Forfeited (49,595 ) 11.83 (25,030 ) 8.33 Outstanding at September 27, 2020 629,119 $ 10.13 150,585 $ 9.49 The fair value of the non-vested restricted shares and all other restricted stock units is based on the closing price on the date of grant. The fair value of the restricted stock units subject to market conditions was estimated using the Monte Carlo simulation method. The assumptions used to value grant restricted stock units subject to market conditions are detailed below: 2019 Grant date stock price $ 14.66 Fair value at grant date $ 1.76 Risk free interest rate 2.53 % Expected term (in years) 2 Dividend yield — % Expected volatility 43.18 % |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 27, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company owns, operates and franchises two restaurant brands, Pollo Tropical ® and Taco Cabana ® , each of which is an operating segment. Pollo Tropical restaurants feature fire-grilled and crispy citrus marinated chicken and other freshly prepared menu items, while Taco Cabana restaurants specialize in Mexican-inspired food made fresh by hand. Each segment's accounting policies are described in the summary of significant accounting policies in Note 1 to the Company's audited financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2019 . The primary measure of segment profit or loss used by the chief operating decision maker to assess performance and allocate resources is Adjusted EBITDA, which is defined as earnings attributable to the applicable operating segments before interest expense, income taxes, depreciation and amortization, impairment and other lease charges, goodwill impairment, closed restaurant rent expense, net of sublease income, stock-based compensation expense, other expense (income), net, and certain significant items for each segment that management believes are related to strategic changes and/or are not related to the ongoing operation of the Company's restaurants as set forth in the reconciliation table below. The "Other" column includes corporate-related items not allocated to reportable segments and consists primarily of corporate-owned property and equipment, lease assets, miscellaneous prepaid costs, capitalized costs associated with the issuance of indebtedness, corporate cash accounts, and a current income tax receivable. Three Months Ended Pollo Tropical Taco Cabana Other Consolidated September 27, 2020: Restaurant sales $ 77,604 $ 59,215 $ — $ 136,819 Franchise revenue 336 177 — 513 Cost of sales 24,614 17,138 — 41,752 Restaurant wages and related expenses (1) 18,051 17,494 — 35,545 Restaurant rent expense 5,585 5,589 — 11,174 Other restaurant operating expenses 12,125 9,013 — 21,138 Advertising expense 815 1,218 — 2,033 General and administrative expense (2) 6,604 5,251 — 11,855 Adjusted EBITDA 10,621 4,172 — 14,793 Depreciation and amortization 5,171 4,261 — 9,432 Capital expenditures 1,457 1,112 644 3,213 September 29, 2019: Restaurant sales $ 88,309 $ 75,280 $ 163,589 Franchise revenue 432 227 — 659 Cost of sales 28,239 23,817 — 52,056 Restaurant wages and related expenses (1) 20,944 23,515 — 44,459 Restaurant rent expense 5,477 6,493 — 11,970 Other restaurant operating expenses 12,807 11,346 — 24,153 Advertising expense 3,130 3,255 — 6,385 General and administrative expense (2) 7,521 6,299 — 13,820 Adjusted EBITDA 10,980 1,174 — 12,154 Depreciation and amortization 5,529 4,636 — 10,165 Capital expenditures 6,402 5,015 985 12,402 Nine Months Ended Pollo Tropical Taco Cabana Other Consolidated September 27, 2020: Restaurant sales $ 226,617 $ 177,835 $ — $ 404,452 Franchise revenue 886 561 — 1,447 Cost of sales 72,666 53,169 — 125,835 Restaurant wages and related expenses (1) 54,196 55,591 — 109,787 Restaurant rent expense 16,885 16,907 — 33,792 Other restaurant operating expenses 35,225 26,413 — 61,638 Advertising expense 5,497 4,462 — 9,959 General and administrative expense (2) 20,630 17,897 — 38,527 Adjusted EBITDA 24,394 5,937 — 30,331 Depreciation and amortization 15,682 12,745 — 28,427 Capital expenditures 5,501 4,772 1,643 11,916 September 29, 2019: Restaurant sales $ 271,955 $ 227,528 $ — $ 499,483 Franchise revenue 1,325 673 — 1,998 Cost of sales 85,855 70,469 — 156,324 Restaurant wages and related expenses (1) 63,387 71,874 — 135,261 Restaurant rent expense 16,393 19,220 — 35,613 Other restaurant operating expenses 36,665 31,764 — 68,429 Advertising expense 9,351 8,438 — 17,789 General and administrative expense (2) 23,568 18,819 — 42,387 Adjusted EBITDA 39,943 8,189 — 48,132 Depreciation and amortization 16,118 13,402 — 29,520 Capital expenditures 18,195 14,982 896 34,073 Identifiable Assets: September 27, 2020 $ 319,714 $ 189,266 $ 42,788 $ 551,768 December 29, 2019 340,012 195,883 32,746 568,641 (1) Includes stock-based compensation expense of $47 and $152 for the three and nine months ended September 27, 2020 , respectively, and $102 and $145 for the three and nine months ended September 29, 2019 , respectively. (2) Includes stock-based compensation expense of $597 and $2,332 for the three and nine months ended September 27, 2020 , respectively, and $509 and $1,993 for the three and nine months ended September 29, 2019 , respectively. A reconciliation of consolidated net income (loss) to Adjusted EBITDA follows: Three Months Ended Pollo Tropical Taco Cabana Other Consolidated September 27, 2020: Net income $ 4,593 Benefit from income taxes (4,155 ) Income (loss) before taxes $ 3,035 $ (2,385 ) $ (212 ) $ 438 Add: Non-general and administrative expense adjustments: Depreciation and amortization 5,171 4,261 — 9,432 Impairment and other lease charges 2,395 9 — 2,404 Interest expense 593 579 — 1,172 Closed restaurant rent expense, net of sublease income 356 1,125 — 1,481 Loss on extinguishment of debt — — 212 212 Other expense (income), net (1,404 ) 100 — (1,304 ) Stock-based compensation expense in restaurant wages 15 32 — 47 Total non-general and administrative expense adjustments 7,126 6,106 212 13,444 General and administrative expense adjustments: Stock-based compensation expense 307 290 — 597 Restructuring costs and retention bonuses 99 117 — 216 Digital and brand repositioning costs 54 44 — 98 Total general and administrative expense adjustments 460 451 — 911 Adjusted EBITDA $ 10,621 $ 4,172 $ — $ 14,793 September 29, 2019: Net loss $ (22,182 ) Benefit from income taxes (2,946 ) Income (loss) before taxes $ 3,857 $ (28,985 ) $ — $ (25,128 ) Add: Non-general and administrative expense adjustments: Depreciation and amortization 5,529 4,636 — 10,165 Impairment and other lease charges 165 3,089 — 3,254 Goodwill impairment — 21,424 — 21,424 Interest expense 398 425 — 823 Closed restaurant rent expense, net of sublease income 601 125 — 726 Other expense (income), net 5 59 — 64 Stock-based compensation expense in restaurant wages 39 63 — 102 Total non-general and administrative expense adjustments 6,737 29,821 — 36,558 General and administrative expense adjustments: Stock-based compensation expense 268 241 — 509 Digital and brand repositioning costs 118 97 — 215 Total general and administrative expense adjustments 386 338 — 724 Adjusted EBITDA $ 10,980 $ 1,174 $ — $ 12,154 Nine Months Ended Pollo Tropical Taco Cabana Other Consolidated September 27, 2020: Net loss $ (11,067 ) Benefit from income taxes (8,903 ) Loss before taxes $ (3,978 ) $ (15,780 ) $ (212 ) $ (19,970 ) Add: Non-general and administrative expense adjustments: Depreciation and amortization 15,682 12,745 — 28,427 Impairment and other lease charges 8,023 899 — 8,922 Interest expense 1,701 1,669 — 3,370 Closed restaurant rent expense, net of sublease income 1,629 3,314 — 4,943 Loss on extinguishment of debt — — 212 212 Other expense (income), net (653 ) 1,041 — 388 Stock-based compensation expense in restaurant wages 53 99 — 152 Total non-general and administrative expense adjustments 26,435 19,767 212 46,414 General and administrative expense adjustments: Stock-based compensation expense 1,140 1,192 — 2,332 Restructuring costs and retention bonuses 551 556 — 1,107 Digital and brand repositioning costs 246 202 — 448 Total general and administrative expense adjustments 1,937 1,950 — 3,887 Adjusted EBITDA $ 24,394 $ 5,937 $ — $ 30,331 September 29, 2019: Net loss $ (63,333 ) Benefit from income taxes (1,377 ) Income (loss) before taxes $ 16,731 $ (81,441 ) $ — $ (64,710 ) Add: Non-general and administrative expense adjustments: Depreciation and amortization 16,118 13,402 — 29,520 Impairment and other lease charges (162 ) 4,829 — 4,667 Goodwill impairment — 67,909 — 67,909 Interest expense 1,534 1,490 — 3,024 Closed restaurant rent expense, net of sublease income 2,784 701 — 3,485 Other expense (income), net 749 171 — 920 Stock-based compensation expense in restaurant wages 48 97 — 145 Total non-general and administrative expense adjustments 21,071 88,599 — 109,670 General and administrative expense adjustments: Stock-based compensation expense 1,196 797 — 1,993 Restructuring costs and retention bonuses 827 137 — 964 Digital and brand repositioning costs 118 97 — 215 Total general and administrative expense adjustments 2,141 1,031 — 3,172 Adjusted EBITDA $ 39,943 $ 8,189 $ — $ 48,132 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share ("EPS") is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during each period. Non-vested restricted shares contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares and are thus considered participating securities. The impact of the participating securities is included in the computation of basic EPS pursuant to the two-class method. The two-class method of computing EPS is an earnings allocation formula that determines earnings attributable to common shares and participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. EPS is computed by dividing undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and non-vested restricted shares based on the weighted average shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if the restricted stock units were to be converted into common shares. Restricted stock units with performance conditions are only included in the diluted EPS calculation to the extent that performance conditions have been met at the measurement date. Diluted EPS is computed by adjusting the basic weighted average number of common shares by the dilutive effect of the restricted stock units, determined using the treasury stock method. For the three months ended September 27, 2020 , no shares of outstanding restricted stock units were excluded from the computation of diluted EPS because none were antidilutive. For the nine months ended September 27, 2020 and the three and nine months ended September 29, 2019 , all shares of outstanding restricted stock units were excluded from the computation of diluted EPS because including such restricted stock units would have been antidilutive as a result of the net loss in the nine months ended September 27, 2020 and the three and nine months ended September 29, 2019 . The computation of basic and diluted EPS is as follows: Three Months Ended Nine Months Ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Basic and diluted EPS: Net income (loss) $ 4,593 $ (22,182 ) $ (11,067 ) $ (63,333 ) Less: income allocated to participating securities 112 — — — Net income (loss) available to common shareholders $ 4,481 $ (22,182 ) $ (11,067 ) $ (63,333 ) Weighted average common shares—basic 25,290,357 26,548,116 25,359,004 26,734,822 Restricted stock units 1,362 — — — Weighted average common shares—diluted 25,291,719 26,548,116 25,359,004 26,734,822 Loss per common share—basic $ 0.18 $ (0.84 ) $ (0.44 ) $ (2.37 ) Loss per common share—diluted 0.18 (0.84 ) (0.44 ) (2.37 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Assignments . Taco Cabana assigned one lease to a third party on a property where it no longer operates with a lease term expiring in 2029. Although the assignee is responsible for making the payments required by the lease, the Company remains secondarily liable as a surety with respect to the lease. Pollo Tropical assigned one lease to a third party on a property where it no longer operates with a lease term expiring in 2033. Although the assignee is responsible for making the payments required by the lease, the Company is a guarantor under the lease. The maximum potential liability for future rental payments that the Company could be required to make under these leases at September 27, 2020 was $3.0 million . The Company could also be obligated to pay property taxes and other lease-related costs. The obligations under these leases will generally continue to decrease over time as the operating leases expire. The Company does not believe it is probable that it will be ultimately responsible for the obligations under these leases. Legal Matters |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annualized effective tax rate for the full fiscal year to "ordinary" income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Due to the uncertainty created by the events surrounding the COVID-19 pandemic, the actual effective tax rate for the year to date period was used to calculate the income tax benefit for the three and nine months ended September 27, 2020 as permitted by Accounting Standards Codification ("ASC") 740-270-30-18. Tax Law Changes. On March 27, 2020, the CARES Act was signed into law. The CARES Act includes provisions that allow net operating losses in 2018, 2019, and 2020 to be carried back for up to five years and eliminates the 80% taxable income limitation on net operating loss deductions for 2018 through 2020. These changes allowed the Company to record an incremental benefit of $1.8 million during the first quarter of 2020 and $0.1 million during the third quarter of 2020, which represents the impact of carrying net operating losses from 2018 and 2019 back to years with a higher federal corporate income tax rate. The CARES Act also includes technical amendments that are retroactive to 2018 which permit certain assets to be classified as qualified improvement property and expensed immediately. Reclassifying certain assets as qualified improvement property and other changes to depreciation methods for certain assets made in conjunction with a cost segregation study conducted prior to filing the Company's 2019 federal income tax return resulted in an incremental benefit of $1.9 million |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 27, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company is exploring the potential refinancing of its amended senior credit facility, although it cannot make any assurance of the timing or certainty of completing any refinancing transactions. The Company has engaged Jefferies LLC ("Jefferies"), an affiliate of two of the members of Fiesta's board of directors and a subsidiary of Jefferies Financial Group, Inc, a holder of more than 20 percent of the total outstanding shares of Fiesta, in the third quarter of 2020 in connection with advisory services and a refinancing of the Company's amended senior credit facility. The engagement of Jefferies and the corresponding engagement letter was approved by the Audit Committee in accordance with the Company's Related Party Transaction Policy as disclosed in its most recent proxy statement for the 2020 Annual Meeting of Stockholders. Whether or not a transaction occurs, the Company will reimburse Jefferies for reasonable out of pocket and ancillary expenses in addition to any fees that may be paid to Jefferies. For the three and nine months ended September 27, 2020 , the condensed consolidated financial statements do not include any fees or expenses or amounts due to the related party. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 27, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table details supplemental cash flow disclosures of non-cash investing and financing activities: Nine Months Ended September 27, 2020 September 29, 2019 Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 1,826 $ 3,198 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 28,798 8,618 Finance lease ROU assets 33 495 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 2,387 4,058 Operating lease liabilities 2,843 4,787 Operating lease right-of-use assets obtained and lease liabilities incurred as a result of adoption of ASC 842: Operating lease ROU assets — 267,743 Operating lease liabilities — 291,373 Accruals for financing costs associated with debt amendment 154 — Supplemental cash flow disclosures: Interest paid on long-term debt $ 3,095 $ 3,558 Income tax payments (refunds), net (2,155 ) (15,620 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 27, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) , which is a part of the Simplification Initiative being undertaken by the FASB to reduce complexity of accounting standards. The amendments in this update simplify the accounting for income taxes by removing certain exceptions, the most notable for the Company being the exception to the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss for the full year. The guidance will be effective for interim and annual periods beginning after December 15, 2020. Early adoption is permitted and any adjustments should be reflected as of the beginning of the annual period of adoption. Amendments relevant to the Company should be applied on a prospective basis. The Company is still evaluating the impact the standard will have on its financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) ("ASU No. 2020-04"), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective as of March 12, 2020 through December 31, 2022. As of September 27, 2020 , the Company's only exposure to LIBOR rates was its amended senior credit facility. Upon cessation of the LIBOR, the amended senior credit facility will be amended to reflect an alternative reference rate. According to ASU No. 2020-04, modifications of contracts within the scope of Topic 470 Debt should be accounted for by prospectively adjusting the effective interest rate. The Company does not expect ASU No. 2020-04 to have a significant impact on its financial statements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 27, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to September 27, 2020 , the Company sold three restaurant properties in sale-leaseback transactions for total net proceeds of $6.6 million and an additional two restaurant properties that were classified as held for sale as of September 27, 2020 for total net proceeds of $2.8 million . Net proceeds from the sales were used to repay outstanding revolving credit borrowings and reduced the revolving commitment under the amended senior credit facility. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year . The Company uses a 52 – 53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended December 29, 2019 contained 52 weeks. The three and nine months ended September 27, 2020 and September 29, 2019 each contained thirteen and thirty-nine weeks, respectively. The fiscal year ending January 3, 2021 will contain 53 weeks. |
Basis of Presentation | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and nine months ended September 27, 2020 and September 29, 2019 have been prepared without an audit pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three and nine months ended September 27, 2020 and September 29, 2019 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 29, 2019 included in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2019 . The December 29, 2019 balance sheet data is derived from those audited financial statements. |
Guidance Adopted in 2020 and Recent Accounting Pronouncements | Guidance Adopted in 2020. In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , which aligns 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 (and hosting arrangements that include an internal-use software license). The Company adopted this new accounting standard on December 30, 2019 and will apply it prospectively to all implementation costs incurred after the date of adoption. The adoption of this standard did not have a material effect on the Company's financial statements. The Company deferred and amortized application development stage costs for cloud-based computing arrangements over the life of the related service (subscription) agreement in the same line item that the fees associated with the subscription arrangement were presented prior to adoption of the new standard. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) , which is a part of the Simplification Initiative being undertaken by the FASB to reduce complexity of accounting standards. The amendments in this update simplify the accounting for income taxes by removing certain exceptions, the most notable for the Company being the exception to the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss for the full year. The guidance will be effective for interim and annual periods beginning after December 15, 2020. Early adoption is permitted and any adjustments should be reflected as of the beginning of the annual period of adoption. Amendments relevant to the Company should be applied on a prospective basis. The Company is still evaluating the impact the standard will have on its financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) ("ASU No. 2020-04"), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective as of March 12, 2020 through December 31, 2022. As of September 27, 2020 , the Company's only exposure to LIBOR rates was its amended senior credit facility. Upon cessation of the LIBOR, the amended senior credit facility will be amended to reflect an alternative reference rate. According to ASU No. 2020-04, modifications of contracts within the scope of Topic 470 Debt should be accounted for by prospectively adjusting the effective interest rate. The Company does not expect ASU No. 2020-04 to have a significant impact on its financial statements. |
Revenue Recognition | Revenue Recognition. Revenue is recognized upon transfer of promised products or services to customers in an amount that reflects the consideration the Company received in exchange for those products or services. Revenues from the Company's owned and operated restaurants are recognized when payment is tendered at the time of sale. Franchise royalty revenues are based on a percentage of gross sales and are recorded as income when earned. Initial franchise fees and area development fees associated with new franchise agreements are not distinct from the continuing rights and services offered by the Company during the term of the related franchise agreements and are recognized as income over the term of the related franchise agreements. A portion of the initial franchise fee is allocated to training services and is recognized as revenue when the Company completes the training services. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In determining fair value, the accounting standards establish a three-level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect management's own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value: • Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. • Revolving Credit Borrowings. |
Long-Lived Assets | Long-Lived Assets |
Leases | Leases. The Company assesses whether an agreement contains a lease at inception. All leases are reviewed for finance or operating classification once control is obtained. The majority of the Company's leases are operating leases. Operating leases are included within operating lease right-of-use assets, other current liabilities, and operating lease liabilities in the condensed consolidated balance sheets. Finance leases are included within property and equipment, net, current portion of long-term debt, and long-term debt, net of current portion in the condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance and is reduced by lease incentives received. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate at commencement date in determining the present value of lease payments. Lease terms include options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company assumes options are reasonably certain to be exercised when such options are required to achieve a minimum 20 -year lease term for new restaurant properties and when it incurs significant leasehold improvement costs near the end of a lease term. The Company uses judgment and available data to allocate consideration in a contract when it leases land and a building. The Company also uses judgment in determining its incremental borrowing rate, which includes selecting a yield curve based on a synthetic credit rating determined using a valuation model. Lease expense for lease payments is recognized on a straight-line basis over the lease term unless the related ROU asset has been adjusted for an impairment charge. The Company has real estate lease agreements with lease and non-lease components, which are accounted for as a single lease component. As a result of the COVID-19 pandemic the Company entered into rent deferral agreements with approximately 185 landlords as of September 27, 2020 . Under these agreements, certain rent payments are deferred without penalty for various periods, generally for up to three months. The Company also entered into two limited abatement agreements. The Company has elected to account for lease concessions and deferrals resulting directly from COVID-19 as though the enforceable rights and obligations to the concessions and deferrals existed in the respective contracts at lease inception and did not account for the concessions and deferrals as lease modifications. |
Use of Estimates | Use of Estimates . The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: insurance liabilities, evaluation for impairment of goodwill and long-lived assets, lease accounting matters, and deferred income tax assets. Actual results could differ from those estimates. Due to the uncertainty associated with the unprecedented nature of the COVID-19 pandemic and the impact it will have on the Company's operations and future cash flows, it is reasonably possible that the estimates of future cash flows used in impairment assessments will change in the near term and the effect of the change could be material. The Company's current estimates assume that operating restrictions, regulations and directives for restaurants and other changes related to COVID-19 will continue to have a significant impact through at least the first half of 2021 with the greatest impact in the near term. |
Impairment of Long-Lived Assets | The Company reviews its long-lived assets, principally property and equipment and lease ROU assets, for impairment at the restaurant level. The Company has elected to exclude operating lease payments and liabilities from future cash flows and carrying values, respectively, in its impairment review. In addition to considering management's plans, known regulatory or governmental actions and damage due to acts of God (hurricanes, tornadoes, etc.), the Company considers a triggering event to have occurred related to a specific restaurant if the restaurant's cash flows, exclusive of operating lease payments, for the last twelve months are less than a minimum threshold or if consistent levels of cash flows for the remaining lease period are less than the carrying value of the restaurant's assets. If an indicator of impairment exists for any of its assets, an estimate of undiscounted future cash flows, exclusive of operating lease payments, over the life of the primary asset for each restaurant is compared to that long-lived asset group's carrying value, excluding operating lease liabilities. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis. If actual performance does not achieve the projections, the Company may recognize impairment charges in future periods, and such charges could be material. |
Purchase of Treasury Stock | Purchase of Treasury Stock In 2018, the Company's board of directors approved a share repurchase program for up to 1,500,000 shares of the Company's common stock. In 2019, the Company's board of directors approved increases to the share repurchase program of an additional 1,500,000 shares of the Company's common stock for an aggregate approval of 3,000,000 shares of the Company's common stock. Under the share repurchase program, shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The share repurchase program has no time limit and may be modified, suspended, superseded or terminated at any time by the Company's board of directors. The Company repurchased 500,000 shares of common stock valued at approximately $3.7 million and 1,064,537 shares of common stock valued at approximately $11.3 million during the nine months ended September 27, 2020 and September 29, 2019 , respectively. The shares repurchased in 2020 were purchased on or before March 12, 2020. The repurchased shares are held as treasury stock at cost. The Company's senior credit facility as amended on July 10, 2020 prohibits share repurchases, and the Company currently does not intend to repurchase additional shares of its common stock for the foreseeable future. |
Segment Reporting | The primary measure of segment profit or loss used by the chief operating decision maker to assess performance and allocate resources is Adjusted EBITDA, which is defined as earnings attributable to the applicable operating segments before interest expense, income taxes, depreciation and amortization, impairment and other lease charges, goodwill impairment, closed restaurant rent expense, net of sublease income, stock-based compensation expense, other expense (income), net, and certain significant items for each segment that management believes are related to strategic changes and/or are not related to the ongoing operation of the Company's restaurants |
Earnings per Share | Basic earnings (loss) per share ("EPS") is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during each period. Non-vested restricted shares contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares and are thus considered participating securities. The impact of the participating securities is included in the computation of basic EPS pursuant to the two-class method. The two-class method of computing EPS is an earnings allocation formula that determines earnings attributable to common shares and participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. EPS is computed by dividing undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and non-vested restricted shares based on the weighted average shares outstanding during the period. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: September 27, 2020 December 29, 2019 Prepaid contract expenses $ 3,591 $ 4,410 Assets held for sale (1) 7,098 4,110 Other 2,598 2,085 $ 13,287 $ 10,605 (1) As of September 27, 2020 , two closed Pollo Tropical restaurant properties and one operating and two closed Taco Cabana restaurant properties owned by the Company were classified as held for sale. As of December 29, 2019 , one closed Pollo Tropical restaurant property and two closed Taco Cabana restaurant properties owned by the Company were classified as held for sale. |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets and Other Lease Charges (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Impairment on Long-Lived Assets by Segment | A summary of impairment of long-lived assets and other lease charges (recoveries) recorded by segment is as follows: Three Months Ended Nine Months Ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Pollo Tropical $ 2,395 $ 165 $ 8,023 $ (162 ) Taco Cabana 9 3,089 899 4,829 $ 2,404 $ 3,254 $ 8,922 $ 4,667 |
Other Lease Charges (Recoveries) by Segment | A summary of impairment of long-lived assets and other lease charges (recoveries) recorded by segment is as follows: Three Months Ended Nine Months Ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Pollo Tropical $ 2,395 $ 165 $ 8,023 $ (162 ) Taco Cabana 9 3,089 899 4,829 $ 2,404 $ 3,254 $ 8,922 $ 4,667 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities, Current | Other current liabilities consist of the following: September 27, 2020 December 29, 2019 Operating lease liabilities $ 23,932 $ 22,338 Accrued workers' compensation and general liability claims 4,457 4,354 Sales and property taxes 1,807 1,889 Accrued occupancy costs (1) 365 891 Other 3,613 2,797 $ 34,174 $ 32,269 (1) Accrued occupancy costs primarily consisted of obligations pertaining to closed restaurant locations. |
Other Liabilities, Non-current | Other non-current liabilities consist of the following: September 27, 2020 December 29, 2019 Accrued workers' compensation and general liability claims $ 7,348 $ 7,348 Accrued payroll taxes (1) 3,719 — Deferred compensation 457 424 Accrued occupancy costs (2) 78 78 Other 1,044 555 $ 12,646 $ 8,405 (1) Includes employer Social Security payroll tax deferred as a result of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") (2) Accrued occupancy costs primarily consisted of obligations pertaining to closed restaurant locations. |
Activity in the Closed-Restaurant Reserve | The following table presents the activity in the closed restaurant reserve, of which $0.1 million is included in non-current liabilities at both September 27, 2020 and December 29, 2019 , with the remainder in other current liabilities. Nine Months Ended September 27, 2020 Year Ended December 29, 2019 Balance, beginning of period $ 752 $ 8,819 Payments, net (248 ) (1,405 ) Other adjustments (1) (178 ) (6,662 ) Balance, end of period $ 326 $ 752 (1) As a result of adopting ASC 842 on December 31, 2018, the portion of the closed restaurant reserve related to operating lease rental payments totaling $6.0 million was reclassified and included as a component of the related ROU assets during the twelve months ended December 29, 2019. The portion of the closed restaurant reserve related to variable ancillary lease costs was not reclassified and was not included as a reduction to ROU assets. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: September 27, 2020 December 29, 2019 Revolving credit facility $ 39,918 $ 75,000 Finance/capital leases 1,930 2,035 41,848 77,035 Less: current portion of long-term debt (262 ) (212 ) $ 41,586 $ 76,823 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Equity [Abstract] | |
Schedule of Non-vested Restricted Shares and Restricted Stock Units Activity | A summary of all non-vested restricted shares and restricted stock units activity for the nine months ended September 27, 2020 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at December 29, 2019 355,605 $ 15.47 176,362 $ 9.42 Granted 501,706 8.27 — — Vested and released (178,597 ) 15.20 (747 ) 32.44 Forfeited (49,595 ) 11.83 (25,030 ) 8.33 Outstanding at September 27, 2020 629,119 $ 10.13 150,585 $ 9.49 |
Restricted Stock Units Subject to Market Conditions Assumptions | The assumptions used to value grant restricted stock units subject to market conditions are detailed below: 2019 Grant date stock price $ 14.66 Fair value at grant date $ 1.76 Risk free interest rate 2.53 % Expected term (in years) 2 Dividend yield — % Expected volatility 43.18 % |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended Pollo Tropical Taco Cabana Other Consolidated September 27, 2020: Restaurant sales $ 77,604 $ 59,215 $ — $ 136,819 Franchise revenue 336 177 — 513 Cost of sales 24,614 17,138 — 41,752 Restaurant wages and related expenses (1) 18,051 17,494 — 35,545 Restaurant rent expense 5,585 5,589 — 11,174 Other restaurant operating expenses 12,125 9,013 — 21,138 Advertising expense 815 1,218 — 2,033 General and administrative expense (2) 6,604 5,251 — 11,855 Adjusted EBITDA 10,621 4,172 — 14,793 Depreciation and amortization 5,171 4,261 — 9,432 Capital expenditures 1,457 1,112 644 3,213 September 29, 2019: Restaurant sales $ 88,309 $ 75,280 $ 163,589 Franchise revenue 432 227 — 659 Cost of sales 28,239 23,817 — 52,056 Restaurant wages and related expenses (1) 20,944 23,515 — 44,459 Restaurant rent expense 5,477 6,493 — 11,970 Other restaurant operating expenses 12,807 11,346 — 24,153 Advertising expense 3,130 3,255 — 6,385 General and administrative expense (2) 7,521 6,299 — 13,820 Adjusted EBITDA 10,980 1,174 — 12,154 Depreciation and amortization 5,529 4,636 — 10,165 Capital expenditures 6,402 5,015 985 12,402 Nine Months Ended Pollo Tropical Taco Cabana Other Consolidated September 27, 2020: Restaurant sales $ 226,617 $ 177,835 $ — $ 404,452 Franchise revenue 886 561 — 1,447 Cost of sales 72,666 53,169 — 125,835 Restaurant wages and related expenses (1) 54,196 55,591 — 109,787 Restaurant rent expense 16,885 16,907 — 33,792 Other restaurant operating expenses 35,225 26,413 — 61,638 Advertising expense 5,497 4,462 — 9,959 General and administrative expense (2) 20,630 17,897 — 38,527 Adjusted EBITDA 24,394 5,937 — 30,331 Depreciation and amortization 15,682 12,745 — 28,427 Capital expenditures 5,501 4,772 1,643 11,916 September 29, 2019: Restaurant sales $ 271,955 $ 227,528 $ — $ 499,483 Franchise revenue 1,325 673 — 1,998 Cost of sales 85,855 70,469 — 156,324 Restaurant wages and related expenses (1) 63,387 71,874 — 135,261 Restaurant rent expense 16,393 19,220 — 35,613 Other restaurant operating expenses 36,665 31,764 — 68,429 Advertising expense 9,351 8,438 — 17,789 General and administrative expense (2) 23,568 18,819 — 42,387 Adjusted EBITDA 39,943 8,189 — 48,132 Depreciation and amortization 16,118 13,402 — 29,520 Capital expenditures 18,195 14,982 896 34,073 Identifiable Assets: September 27, 2020 $ 319,714 $ 189,266 $ 42,788 $ 551,768 December 29, 2019 340,012 195,883 32,746 568,641 (1) Includes stock-based compensation expense of $47 and $152 for the three and nine months ended September 27, 2020 , respectively, and $102 and $145 for the three and nine months ended September 29, 2019 , respectively. (2) Includes stock-based compensation expense of $597 and $2,332 for the three and nine months ended September 27, 2020 , respectively, and $509 and $1,993 for the three and nine months ended September 29, 2019 , respectively. |
Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA | A reconciliation of consolidated net income (loss) to Adjusted EBITDA follows: Three Months Ended Pollo Tropical Taco Cabana Other Consolidated September 27, 2020: Net income $ 4,593 Benefit from income taxes (4,155 ) Income (loss) before taxes $ 3,035 $ (2,385 ) $ (212 ) $ 438 Add: Non-general and administrative expense adjustments: Depreciation and amortization 5,171 4,261 — 9,432 Impairment and other lease charges 2,395 9 — 2,404 Interest expense 593 579 — 1,172 Closed restaurant rent expense, net of sublease income 356 1,125 — 1,481 Loss on extinguishment of debt — — 212 212 Other expense (income), net (1,404 ) 100 — (1,304 ) Stock-based compensation expense in restaurant wages 15 32 — 47 Total non-general and administrative expense adjustments 7,126 6,106 212 13,444 General and administrative expense adjustments: Stock-based compensation expense 307 290 — 597 Restructuring costs and retention bonuses 99 117 — 216 Digital and brand repositioning costs 54 44 — 98 Total general and administrative expense adjustments 460 451 — 911 Adjusted EBITDA $ 10,621 $ 4,172 $ — $ 14,793 September 29, 2019: Net loss $ (22,182 ) Benefit from income taxes (2,946 ) Income (loss) before taxes $ 3,857 $ (28,985 ) $ — $ (25,128 ) Add: Non-general and administrative expense adjustments: Depreciation and amortization 5,529 4,636 — 10,165 Impairment and other lease charges 165 3,089 — 3,254 Goodwill impairment — 21,424 — 21,424 Interest expense 398 425 — 823 Closed restaurant rent expense, net of sublease income 601 125 — 726 Other expense (income), net 5 59 — 64 Stock-based compensation expense in restaurant wages 39 63 — 102 Total non-general and administrative expense adjustments 6,737 29,821 — 36,558 General and administrative expense adjustments: Stock-based compensation expense 268 241 — 509 Digital and brand repositioning costs 118 97 — 215 Total general and administrative expense adjustments 386 338 — 724 Adjusted EBITDA $ 10,980 $ 1,174 $ — $ 12,154 Nine Months Ended Pollo Tropical Taco Cabana Other Consolidated September 27, 2020: Net loss $ (11,067 ) Benefit from income taxes (8,903 ) Loss before taxes $ (3,978 ) $ (15,780 ) $ (212 ) $ (19,970 ) Add: Non-general and administrative expense adjustments: Depreciation and amortization 15,682 12,745 — 28,427 Impairment and other lease charges 8,023 899 — 8,922 Interest expense 1,701 1,669 — 3,370 Closed restaurant rent expense, net of sublease income 1,629 3,314 — 4,943 Loss on extinguishment of debt — — 212 212 Other expense (income), net (653 ) 1,041 — 388 Stock-based compensation expense in restaurant wages 53 99 — 152 Total non-general and administrative expense adjustments 26,435 19,767 212 46,414 General and administrative expense adjustments: Stock-based compensation expense 1,140 1,192 — 2,332 Restructuring costs and retention bonuses 551 556 — 1,107 Digital and brand repositioning costs 246 202 — 448 Total general and administrative expense adjustments 1,937 1,950 — 3,887 Adjusted EBITDA $ 24,394 $ 5,937 $ — $ 30,331 September 29, 2019: Net loss $ (63,333 ) Benefit from income taxes (1,377 ) Income (loss) before taxes $ 16,731 $ (81,441 ) $ — $ (64,710 ) Add: Non-general and administrative expense adjustments: Depreciation and amortization 16,118 13,402 — 29,520 Impairment and other lease charges (162 ) 4,829 — 4,667 Goodwill impairment — 67,909 — 67,909 Interest expense 1,534 1,490 — 3,024 Closed restaurant rent expense, net of sublease income 2,784 701 — 3,485 Other expense (income), net 749 171 — 920 Stock-based compensation expense in restaurant wages 48 97 — 145 Total non-general and administrative expense adjustments 21,071 88,599 — 109,670 General and administrative expense adjustments: Stock-based compensation expense 1,196 797 — 1,993 Restructuring costs and retention bonuses 827 137 — 964 Digital and brand repositioning costs 118 97 — 215 Total general and administrative expense adjustments 2,141 1,031 — 3,172 Adjusted EBITDA $ 39,943 $ 8,189 $ — $ 48,132 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted EPS | The computation of basic and diluted EPS is as follows: Three Months Ended Nine Months Ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Basic and diluted EPS: Net income (loss) $ 4,593 $ (22,182 ) $ (11,067 ) $ (63,333 ) Less: income allocated to participating securities 112 — — — Net income (loss) available to common shareholders $ 4,481 $ (22,182 ) $ (11,067 ) $ (63,333 ) Weighted average common shares—basic 25,290,357 26,548,116 25,359,004 26,734,822 Restricted stock units 1,362 — — — Weighted average common shares—diluted 25,291,719 26,548,116 25,359,004 26,734,822 Loss per common share—basic $ 0.18 $ (0.84 ) $ (0.44 ) $ (2.37 ) Loss per common share—diluted 0.18 (0.84 ) (0.44 ) (2.37 ) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Disclosures of Non-Cash Investing and Financing Activities | The following table details supplemental cash flow disclosures of non-cash investing and financing activities: Nine Months Ended September 27, 2020 September 29, 2019 Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 1,826 $ 3,198 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 28,798 8,618 Finance lease ROU assets 33 495 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 2,387 4,058 Operating lease liabilities 2,843 4,787 Operating lease right-of-use assets obtained and lease liabilities incurred as a result of adoption of ASC 842: Operating lease ROU assets — 267,743 Operating lease liabilities — 291,373 Accruals for financing costs associated with debt amendment 154 — Supplemental cash flow disclosures: Interest paid on long-term debt $ 3,095 $ 3,558 Income tax payments (refunds), net (2,155 ) (15,620 ) |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 27, 2020USD ($)leaserestaurant | Sep. 27, 2020USD ($)leasesegmentrestaurant | Sep. 29, 2019USD ($) | |
Entity Information [Line Items] | |||
Number of operating segments | segment | 2 | ||
Number of leases with rent deferral agreements | lease | 185 | 185 | |
Number of leases with limited abatement agreements | lease | 2 | 2 | |
Number of restaurants sold in sale-leaseback transactions | 2 | ||
Proceeds from sale-leaseback transactions | $ | $ 6,300 | $ 6,284 | $ 0 |
Gain from sale-leaseback transactions | $ | 1,500 | ||
Sale-leaseback financial liability | $ | $ 500 | $ 500 | |
Minimum | |||
Entity Information [Line Items] | |||
Lease term | 20 years | 20 years | |
Entity Operated Units | Pollo Tropical | |||
Entity Information [Line Items] | |||
Number of restaurants | 138 | 138 | |
Entity Operated Units | Taco Cabana | |||
Entity Information [Line Items] | |||
Number of restaurants | 145 | 145 | |
Franchised Units | Pollo Tropical | |||
Entity Information [Line Items] | |||
Number of restaurants | 33 | 33 | |
Franchised Units | Pollo Tropical | Puerto Rico | |||
Entity Information [Line Items] | |||
Number of restaurants | 17 | 17 | |
Franchised Units | Pollo Tropical | Panama | |||
Entity Information [Line Items] | |||
Number of restaurants | 4 | 4 | |
Franchised Units | Pollo Tropical | Guyana | |||
Entity Information [Line Items] | |||
Number of restaurants | 2 | 2 | |
Franchised Units | Pollo Tropical | Ecuador | |||
Entity Information [Line Items] | |||
Number of restaurants | 1 | 1 | |
Franchised Units | Pollo Tropical | Bahamas | |||
Entity Information [Line Items] | |||
Number of restaurants | 1 | 1 | |
Franchised Units | Pollo Tropical | Florida | College Campus | |||
Entity Information [Line Items] | |||
Number of restaurants | 7 | 7 | |
Franchised Units | Pollo Tropical | Florida | Hospital | |||
Entity Information [Line Items] | |||
Number of restaurants | 1 | 1 | |
Franchised Units | Taco Cabana | |||
Entity Information [Line Items] | |||
Number of restaurants | 7 | 7 | |
Franchised Units | Taco Cabana | New Mexico | |||
Entity Information [Line Items] | |||
Number of restaurants | 6 | 6 | |
Franchised Units | Taco Cabana | Texas | |||
Entity Information [Line Items] | |||
Number of restaurants | 1 | 1 |
Basis of Presentation - Fair Va
Basis of Presentation - Fair Value Disclosures (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Revolving credit facility | $ 39,918 | $ 75,000 |
Revolver | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Revolving credit facility | 39,900 | 75,000 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior credit facility | $ 39,900 | $ 75,000 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) $ in Thousands | Sep. 27, 2020USD ($)restaurant | Dec. 29, 2019USD ($)restaurant |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid contract expenses | $ | $ 3,591 | $ 4,410 |
Assets held for sale | $ | 7,098 | 4,110 |
Other | $ | 2,598 | 2,085 |
Prepaid expenses and other current assets | $ | $ 13,287 | $ 10,605 |
Property, Plant and Equipment [Line Items] | ||
Closed restaurant properties classified as held for sale | restaurant | 2 | |
Pollo Tropical | ||
Property, Plant and Equipment [Line Items] | ||
Closed restaurant properties classified as held for sale | restaurant | 2 | 1 |
Taco Cabana | ||
Property, Plant and Equipment [Line Items] | ||
Operating restaurant properties classified as held for sale | restaurant | 1 | |
Closed restaurant properties classified as held for sale | restaurant | 2 | 2 |
Impairment of Long-Lived Asse_3
Impairment of Long-Lived Assets and Other Lease Charges - Summary by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Impairment and Other Lease Charges [Line Items] | ||||
Impairment and other lease charges | $ 2,404 | $ 3,254 | $ 8,922 | $ 4,667 |
Pollo Tropical | ||||
Impairment and Other Lease Charges [Line Items] | ||||
Impairment and other lease charges | 2,395 | 165 | 8,023 | (162) |
Taco Cabana | ||||
Impairment and Other Lease Charges [Line Items] | ||||
Impairment and other lease charges | $ 9 | $ 3,089 | $ 899 | $ 4,829 |
Impairment of Long-Lived Asse_4
Impairment of Long-Lived Assets and Other Lease Charges - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020USD ($)restaurant | Sep. 29, 2019USD ($)restaurant | Sep. 27, 2020USD ($)restaurant | Sep. 29, 2019USD ($)restaurant | |
Level 3 | ||||
Impairment and Other Lease Charges [Line Items] | ||||
Assets measured at fair value associated with impairment charges | $ 4.9 | $ 4.9 | ||
Pollo Tropical | ||||
Impairment and Other Lease Charges [Line Items] | ||||
Impairment charges | 2.6 | $ 0.2 | 7.3 | $ 0.6 |
Lease charge (recoveries) | $ (0.2) | $ 0.7 | (0.8) | |
Number of underperforming restaurants | restaurant | 3 | 3 | ||
Number of closed restaurants | restaurant | 2 | 2 | ||
Lease termination charges | $ 0.9 | |||
Taco Cabana | ||||
Impairment and Other Lease Charges [Line Items] | ||||
Impairment charges | $ 3.1 | 1.1 | 4.9 | |
Lease charge (recoveries) | $ (0.2) | $ (0.1) | ||
Number of underperforming restaurants | restaurant | 2 | 8 | 2 | 8 |
Other Liabilities - Current (De
Other Liabilities - Current (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Operating lease liabilities | $ 23,932 | $ 22,338 |
Accrued workers' compensation and general liability claims | 4,457 | 4,354 |
Sales and property taxes | 1,807 | 1,889 |
Accrued occupancy costs | 365 | 891 |
Other | 3,613 | 2,797 |
Other current liabilities | $ 34,174 | $ 32,269 |
Other Liabilities - Non-current
Other Liabilities - Non-current (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Accrued workers' compensation and general liability claims | $ 7,348 | $ 7,348 |
Accrued payroll taxes | 3,719 | 0 |
Deferred compensation | 457 | 424 |
Accrued occupancy costs | 78 | 78 |
Other | 1,044 | 555 |
Other non-current liabilities | $ 12,646 | $ 8,405 |
Other Liabilities - Narrative (
Other Liabilities - Narrative (Details) - Closed Stores - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Dec. 30, 2018 |
Restructuring Cost and Reserve [Line Items] | |||
Closed-restaurant reserve | $ 326 | $ 752 | $ 8,819 |
Other Liabilities, Non-current | |||
Restructuring Cost and Reserve [Line Items] | |||
Closed-restaurant reserve | $ 100 | $ 100 |
Other Liabilities - Closed-Rest
Other Liabilities - Closed-Restaurant Reserve (Details) - Closed Stores - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 27, 2020 | Dec. 29, 2019 | |
Activity in the Closed-Restaurant Reserve | ||
Balance, beginning of period | $ 752 | $ 8,819 |
Payments, net | (248) | (1,405) |
Other adjustments | (178) | (6,662) |
Balance, end of period | $ 326 | 752 |
Operating lease rental payments | $ 6,000 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Debt Disclosure [Abstract] | ||
Revolving credit facility | $ 39,918 | $ 75,000 |
Finance/capital leases | 1,930 | 2,035 |
Long-term debt and finance/capital lease obligations | 41,848 | 77,035 |
Less: current portion of long-term debt | (262) | (212) |
Long-term debt and finance/capital lease obligations, net of current portion | $ 41,586 | $ 76,823 |
Long-Term Debt - Amended Senior
Long-Term Debt - Amended Senior Credit Facility (Details) - USD ($) | Jul. 10, 2020 | Sep. 27, 2020 | Jan. 03, 2021 | Sep. 27, 2020 | Sep. 27, 2020 | Sep. 29, 2019 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | Nov. 30, 2022 | Apr. 04, 2021 | Dec. 29, 2019 |
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility | $ 39,918,000 | $ 39,918,000 | $ 39,918,000 | $ 75,000,000 | ||||||||
Reduction of outstanding revolving credit borrowings | 9,100,000 | 189,225,000 | $ 30,000,000 | |||||||||
Letters of credit | 3,500,000 | 3,500,000 | 3,500,000 | |||||||||
Revolver | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility | 39,900,000 | 39,900,000 | 39,900,000 | $ 75,000,000 | ||||||||
Available for borrowing under the amended senior credit facility | $ 67,500,000 | 67,500,000 | $ 67,500,000 | |||||||||
July 2020 Senior Credit Facility | Revolver | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Reduction in the aggregate maximum commitments available for revolving credit borrowings | $ 30,000,000 | |||||||||||
Maximum borrowing capacity | $ 120,000,000 | |||||||||||
Minimum liquidity | $ 40,000,000 | |||||||||||
Commitment fee percentage | 0.50% | |||||||||||
Outstanding credit borrowing threshold for prepayment | $ 75,000,000 | |||||||||||
Excess cash threshold for prepayment | 20,000,000 | |||||||||||
Default provision, acceleration of indebtedness, failure to pay minimum debt principal amount | $ 5,000,000 | |||||||||||
Maturity date | Nov. 30, 2022 | |||||||||||
July 2020 Senior Credit Facility | Revolver | Alternate Base Rate | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable rate | 4.00% | |||||||||||
July 2020 Senior Credit Facility | Revolver | Alternate Base Rate | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Variable rate | 2.00% | |||||||||||
July 2020 Senior Credit Facility | Revolver | Adjusted LIBOR Rate | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable rate | 5.00% | |||||||||||
July 2020 Senior Credit Facility | Revolver | Adjusted LIBOR Rate | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Variable rate | 1.00% | |||||||||||
July 2020 Senior Credit Facility | Revolver | Forecast | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Reduction in the aggregate maximum commitments available for revolving credit borrowings | $ 15,000,000 | $ 15,000,000 | $ 10,000,000 | |||||||||
Maximum borrowing capacity | 105,000,000 | 105,000,000 | $ 95,000,000 | |||||||||
Minimum liquidity | $ 30,000,000 | $ 25,000,000 | ||||||||||
Covenant, maximum aggregate capital expenditures | $ 25,000,000 | $ 22,000,000 | $ 22,000,000 |
Long-Term Debt - Senior Credit
Long-Term Debt - Senior Credit Facility (Details) - November 2017 Senior Credit Facility - USD ($) $ in Millions | Nov. 30, 2017 | Sep. 27, 2020 |
Revolver | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 150 | |
Commitment fee percentage | 0.35% | |
Revolver | Minimum | ||
Line of Credit Facility [Line Items] | ||
Commitment fee percentage | 0.25% | |
Revolver | Minimum | Alternate Base Rate | ||
Line of Credit Facility [Line Items] | ||
Applicable margin | 0.75% | |
Revolver | Minimum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Applicable margin | 1.75% | |
Revolver | Maximum | ||
Line of Credit Facility [Line Items] | ||
Potential incremental increase | $ 50 | |
Commitment fee percentage | 0.35% | |
Revolver | Maximum | Alternate Base Rate | ||
Line of Credit Facility [Line Items] | ||
Applicable margin | 1.50% | |
Revolver | Maximum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Applicable margin | 2.50% | |
Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 15 |
Stockholders' Equity - Purchase
Stockholders' Equity - Purchase of Treasury Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Mar. 29, 2020 | Sep. 29, 2019 | Mar. 31, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | Feb. 26, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized to be repurchased | 3,000,000 | ||||||
Treasury stock purchases (in shares) | 500,000 | 1,064,537 | |||||
Treasury stock purchases | $ 3,728 | $ 9,158 | $ 2,199 | $ 3,700 | $ 11,300 | ||
Share Repurchase Program 2018 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized to be repurchased | 1,500,000 | ||||||
Share Repurchase Program 2019 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized to be repurchased | 1,500,000 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 0.6 | $ 0.6 | $ 2.5 | $ 2.1 | |
Unrecognized stock-based compensation expense | $ 5 | $ 5 | |||
Nonvested Restricted Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted in period | 501,706 | ||||
Weighted average grant date fair value, grants in period (usd per share) | $ 8.27 | $ 13 | |||
Share-based compensation cost not yet recognized, period for recognition | 2 years 9 months 18 days | ||||
Nonvested Restricted Shares | Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Nonvested Restricted Shares | Director | Vesting 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Nonvested Restricted Shares | Director | Vesting 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted in period | 0 | ||||
Weighted average grant date fair value, grants in period (usd per share) | $ 0 | ||||
Share-based compensation cost not yet recognized, period for recognition | 4 months 24 days | ||||
Market Performance-Based Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value, grants in period (usd per share) | $ 1.76 | $ 1.76 |
Stockholders' Equity - Non-vest
Stockholders' Equity - Non-vested Restricted Shares and Restricted Stock Units Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | |
Non-Vested Shares | ||
Non-vested Restricted Shares and Restricted Stock Units | ||
Outstanding at beginning of period (in shares) | 355,605 | |
Granted (in shares) | 501,706 | |
Vested and released (in shares) | (178,597) | |
Forfeited (in shares) | (49,595) | |
Outstanding at end of period (in shares) | 629,119 | |
Weighted Average Grant Date Fair Value | ||
Outstanding at beginning of period (usd per share) | $ 15.47 | |
Granted (usd per share) | 8.27 | $ 13 |
Vested and released (usd per share) | 15.20 | |
Forfeited (usd per share) | 11.83 | |
Outstanding at end of period (usd per share) | $ 10.13 | |
Restricted Stock Units | ||
Non-vested Restricted Shares and Restricted Stock Units | ||
Outstanding at beginning of period (in shares) | 176,362 | |
Granted (in shares) | 0 | |
Vested and released (in shares) | (747) | |
Forfeited (in shares) | (25,030) | |
Outstanding at end of period (in shares) | 150,585 | |
Weighted Average Grant Date Fair Value | ||
Outstanding at beginning of period (usd per share) | $ 9.42 | |
Granted (usd per share) | 0 | |
Vested and released (usd per share) | 32.44 | |
Forfeited (usd per share) | 8.33 | |
Outstanding at end of period (usd per share) | $ 9.49 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units Subject to Market Conditions (Details) - Market Performance-Based Restricted Stock Units (RSUs) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 29, 2019 | Dec. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date stock price (usd per share) | $ 14.66 | |
Fair value at grant date (usd per share) | $ 1.76 | $ 1.76 |
Risk free interest rate | 2.53% | |
Expected term (in years) | 2 years | |
Dividend yield | 0.00% | |
Expected volatility | 43.18% |
Business Segment Information -
Business Segment Information - Segment Reporting Information, by Segment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020USD ($) | Sep. 29, 2019USD ($) | Sep. 27, 2020USD ($)segment | Sep. 29, 2019USD ($) | Dec. 29, 2019USD ($) | |
Segment Reporting [Abstract] | |||||
Number of operating segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 137,332 | $ 164,248 | $ 405,899 | $ 501,481 | |
Cost of sales | 41,752 | 52,056 | 125,835 | 156,324 | |
Restaurant wages and related expenses | 35,545 | 44,459 | 109,787 | 135,261 | |
Restaurant rent expense | 11,174 | 11,970 | 33,792 | 35,613 | |
Other restaurant operating expenses | 21,138 | 24,153 | 61,638 | 68,429 | |
Advertising expense | 2,033 | 6,385 | 9,959 | 17,789 | |
General and administrative expense | 11,855 | 13,820 | 38,527 | 42,387 | |
Adjusted EBITDA | 14,793 | 12,154 | 30,331 | 48,132 | |
Depreciation and amortization | 9,432 | 10,165 | 28,427 | 29,520 | |
Capital expenditures | 3,213 | 12,402 | 11,916 | 34,073 | |
Identifiable assets | 551,768 | 551,768 | $ 568,641 | ||
Stock-based compensation expense | 600 | 600 | 2,500 | 2,100 | |
Restaurant Wages And Related Expenses | |||||
Segment Reporting Information [Line Items] | |||||
Stock-based compensation expense | 47 | 102 | 152 | 145 | |
General and Administrative Expense | |||||
Segment Reporting Information [Line Items] | |||||
Stock-based compensation expense | 597 | 509 | 2,332 | 1,993 | |
Restaurant sales | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 136,819 | 163,589 | 404,452 | 499,483 | |
Franchise revenue | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 513 | 659 | 1,447 | 1,998 | |
Operating Segments | Pollo Tropical | |||||
Segment Reporting Information [Line Items] | |||||
Cost of sales | 24,614 | 28,239 | 72,666 | 85,855 | |
Restaurant wages and related expenses | 18,051 | 20,944 | 54,196 | 63,387 | |
Restaurant rent expense | 5,585 | 5,477 | 16,885 | 16,393 | |
Other restaurant operating expenses | 12,125 | 12,807 | 35,225 | 36,665 | |
Advertising expense | 815 | 3,130 | 5,497 | 9,351 | |
General and administrative expense | 6,604 | 7,521 | 20,630 | 23,568 | |
Adjusted EBITDA | 10,621 | 10,980 | 24,394 | 39,943 | |
Depreciation and amortization | 5,171 | 5,529 | 15,682 | 16,118 | |
Capital expenditures | 1,457 | 6,402 | 5,501 | 18,195 | |
Identifiable assets | 319,714 | 319,714 | 340,012 | ||
Operating Segments | Pollo Tropical | Restaurant Wages And Related Expenses | |||||
Segment Reporting Information [Line Items] | |||||
Stock-based compensation expense | 15 | 39 | 53 | 48 | |
Operating Segments | Pollo Tropical | General and Administrative Expense | |||||
Segment Reporting Information [Line Items] | |||||
Stock-based compensation expense | 307 | 268 | 1,140 | 1,196 | |
Operating Segments | Pollo Tropical | Restaurant sales | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 77,604 | 88,309 | 226,617 | 271,955 | |
Operating Segments | Pollo Tropical | Franchise revenue | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 336 | 432 | 886 | 1,325 | |
Operating Segments | Taco Cabana | |||||
Segment Reporting Information [Line Items] | |||||
Cost of sales | 17,138 | 23,817 | 53,169 | 70,469 | |
Restaurant wages and related expenses | 17,494 | 23,515 | 55,591 | 71,874 | |
Restaurant rent expense | 5,589 | 6,493 | 16,907 | 19,220 | |
Other restaurant operating expenses | 9,013 | 11,346 | 26,413 | 31,764 | |
Advertising expense | 1,218 | 3,255 | 4,462 | 8,438 | |
General and administrative expense | 5,251 | 6,299 | 17,897 | 18,819 | |
Adjusted EBITDA | 4,172 | 1,174 | 5,937 | 8,189 | |
Depreciation and amortization | 4,261 | 4,636 | 12,745 | 13,402 | |
Capital expenditures | 1,112 | 5,015 | 4,772 | 14,982 | |
Identifiable assets | 189,266 | 189,266 | 195,883 | ||
Operating Segments | Taco Cabana | Restaurant Wages And Related Expenses | |||||
Segment Reporting Information [Line Items] | |||||
Stock-based compensation expense | 32 | 63 | 99 | 97 | |
Operating Segments | Taco Cabana | General and Administrative Expense | |||||
Segment Reporting Information [Line Items] | |||||
Stock-based compensation expense | 290 | 241 | 1,192 | 797 | |
Operating Segments | Taco Cabana | Restaurant sales | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 59,215 | 75,280 | 177,835 | 227,528 | |
Operating Segments | Taco Cabana | Franchise revenue | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 177 | 227 | 561 | 673 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Cost of sales | 0 | 0 | 0 | 0 | |
Restaurant wages and related expenses | 0 | 0 | 0 | 0 | |
Restaurant rent expense | 0 | 0 | 0 | 0 | |
Other restaurant operating expenses | 0 | 0 | 0 | 0 | |
Advertising expense | 0 | 0 | 0 | 0 | |
General and administrative expense | 0 | 0 | 0 | 0 | |
Adjusted EBITDA | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Capital expenditures | 644 | 985 | 1,643 | 896 | |
Identifiable assets | 42,788 | 42,788 | $ 32,746 | ||
Other | Restaurant Wages And Related Expenses | |||||
Segment Reporting Information [Line Items] | |||||
Stock-based compensation expense | 0 | 0 | 0 | 0 | |
Other | General and Administrative Expense | |||||
Segment Reporting Information [Line Items] | |||||
Stock-based compensation expense | 0 | 0 | 0 | 0 | |
Other | Restaurant sales | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | ||
Other | Franchise revenue | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segment Information _2
Business Segment Information - Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Segment Reporting Information [Line Items] | ||||||||
Net income (loss) | $ 4,593 | $ (8,343) | $ (7,317) | $ (22,182) | $ (43,440) | $ 2,289 | $ (11,067) | $ (63,333) |
Benefit from income taxes | (4,155) | (2,946) | (8,903) | (1,377) | ||||
Income (loss) before income taxes | 438 | (25,128) | (19,970) | (64,710) | ||||
Non-general and administrative expense adjustments: | ||||||||
Depreciation and amortization | 9,432 | 10,165 | 28,427 | 29,520 | ||||
Impairment and other lease charges | 2,404 | 3,254 | 8,922 | 4,667 | ||||
Goodwill impairment | 0 | 21,424 | 0 | 67,909 | ||||
Interest expense | 1,172 | 823 | 3,370 | 3,024 | ||||
Closed restaurant rent expense, net of sublease income | 1,481 | 726 | 4,943 | 3,485 | ||||
Loss on extinguishment of debt | 212 | 0 | 212 | 0 | ||||
Other expense (income), net | (1,304) | 64 | 388 | 920 | ||||
Stock-based compensation expense in restaurant wages | 600 | 600 | 2,500 | 2,100 | ||||
Total non-general and administrative expense adjustments | 13,444 | 36,558 | 46,414 | 109,670 | ||||
General and administrative expense adjustments: | ||||||||
Stock-based compensation expense | 600 | 600 | 2,500 | 2,100 | ||||
Restructuring costs and retention bonuses | 216 | 1,107 | 964 | |||||
Digital and brand repositioning costs | 98 | 215 | 448 | 215 | ||||
Total general and administrative expense adjustments | 911 | 724 | 3,887 | 3,172 | ||||
Adjusted EBITDA | 14,793 | 12,154 | 30,331 | 48,132 | ||||
Restaurant Wages And Related Expenses | ||||||||
Non-general and administrative expense adjustments: | ||||||||
Stock-based compensation expense in restaurant wages | 47 | 102 | 152 | 145 | ||||
General and administrative expense adjustments: | ||||||||
Stock-based compensation expense | 47 | 102 | 152 | 145 | ||||
General and Administrative Expense | ||||||||
Non-general and administrative expense adjustments: | ||||||||
Stock-based compensation expense in restaurant wages | 597 | 509 | 2,332 | 1,993 | ||||
General and administrative expense adjustments: | ||||||||
Stock-based compensation expense | 597 | 509 | 2,332 | 1,993 | ||||
Pollo Tropical | ||||||||
Non-general and administrative expense adjustments: | ||||||||
Impairment and other lease charges | 2,395 | 165 | 8,023 | (162) | ||||
Taco Cabana | ||||||||
Non-general and administrative expense adjustments: | ||||||||
Impairment and other lease charges | 9 | 3,089 | 899 | 4,829 | ||||
Operating Segments | Pollo Tropical | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income (loss) before income taxes | 3,035 | 3,857 | (3,978) | 16,731 | ||||
Non-general and administrative expense adjustments: | ||||||||
Depreciation and amortization | 5,171 | 5,529 | 15,682 | 16,118 | ||||
Impairment and other lease charges | 2,395 | 165 | 8,023 | (162) | ||||
Goodwill impairment | 0 | 0 | ||||||
Interest expense | 593 | 398 | 1,701 | 1,534 | ||||
Closed restaurant rent expense, net of sublease income | 356 | 601 | 1,629 | 2,784 | ||||
Loss on extinguishment of debt | 0 | 0 | ||||||
Other expense (income), net | (1,404) | 5 | (653) | 749 | ||||
Total non-general and administrative expense adjustments | 7,126 | 6,737 | 26,435 | 21,071 | ||||
General and administrative expense adjustments: | ||||||||
Restructuring costs and retention bonuses | 99 | 551 | 827 | |||||
Digital and brand repositioning costs | 54 | 118 | 246 | 118 | ||||
Total general and administrative expense adjustments | 460 | 386 | 1,937 | 2,141 | ||||
Adjusted EBITDA | 10,621 | 10,980 | 24,394 | 39,943 | ||||
Operating Segments | Pollo Tropical | Restaurant Wages And Related Expenses | ||||||||
Non-general and administrative expense adjustments: | ||||||||
Stock-based compensation expense in restaurant wages | 15 | 39 | 53 | 48 | ||||
General and administrative expense adjustments: | ||||||||
Stock-based compensation expense | 15 | 39 | 53 | 48 | ||||
Operating Segments | Pollo Tropical | General and Administrative Expense | ||||||||
Non-general and administrative expense adjustments: | ||||||||
Stock-based compensation expense in restaurant wages | 307 | 268 | 1,140 | 1,196 | ||||
General and administrative expense adjustments: | ||||||||
Stock-based compensation expense | 307 | 268 | 1,140 | 1,196 | ||||
Operating Segments | Taco Cabana | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income (loss) before income taxes | (2,385) | (28,985) | (15,780) | (81,441) | ||||
Non-general and administrative expense adjustments: | ||||||||
Depreciation and amortization | 4,261 | 4,636 | 12,745 | 13,402 | ||||
Impairment and other lease charges | 9 | 3,089 | 899 | 4,829 | ||||
Goodwill impairment | 21,424 | 67,909 | ||||||
Interest expense | 579 | 425 | 1,669 | 1,490 | ||||
Closed restaurant rent expense, net of sublease income | 1,125 | 125 | 3,314 | 701 | ||||
Loss on extinguishment of debt | 0 | 0 | ||||||
Other expense (income), net | 100 | 59 | 1,041 | 171 | ||||
Total non-general and administrative expense adjustments | 6,106 | 29,821 | 19,767 | 88,599 | ||||
General and administrative expense adjustments: | ||||||||
Restructuring costs and retention bonuses | 117 | 556 | 137 | |||||
Digital and brand repositioning costs | 44 | 97 | 202 | 97 | ||||
Total general and administrative expense adjustments | 451 | 338 | 1,950 | 1,031 | ||||
Adjusted EBITDA | 4,172 | 1,174 | 5,937 | 8,189 | ||||
Operating Segments | Taco Cabana | Restaurant Wages And Related Expenses | ||||||||
Non-general and administrative expense adjustments: | ||||||||
Stock-based compensation expense in restaurant wages | 32 | 63 | 99 | 97 | ||||
General and administrative expense adjustments: | ||||||||
Stock-based compensation expense | 32 | 63 | 99 | 97 | ||||
Operating Segments | Taco Cabana | General and Administrative Expense | ||||||||
Non-general and administrative expense adjustments: | ||||||||
Stock-based compensation expense in restaurant wages | 290 | 241 | 1,192 | 797 | ||||
General and administrative expense adjustments: | ||||||||
Stock-based compensation expense | 290 | 241 | 1,192 | 797 | ||||
Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income (loss) before income taxes | (212) | 0 | (212) | 0 | ||||
Non-general and administrative expense adjustments: | ||||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Impairment and other lease charges | 0 | 0 | 0 | 0 | ||||
Goodwill impairment | 0 | 0 | ||||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Closed restaurant rent expense, net of sublease income | 0 | 0 | 0 | 0 | ||||
Loss on extinguishment of debt | 212 | 212 | ||||||
Other expense (income), net | 0 | 0 | 0 | 0 | ||||
Total non-general and administrative expense adjustments | 212 | 0 | 212 | 0 | ||||
General and administrative expense adjustments: | ||||||||
Restructuring costs and retention bonuses | 0 | 0 | 0 | |||||
Digital and brand repositioning costs | 0 | 0 | 0 | 0 | ||||
Total general and administrative expense adjustments | 0 | 0 | 0 | 0 | ||||
Adjusted EBITDA | 0 | 0 | 0 | 0 | ||||
Other | Restaurant Wages And Related Expenses | ||||||||
Non-general and administrative expense adjustments: | ||||||||
Stock-based compensation expense in restaurant wages | 0 | 0 | 0 | 0 | ||||
General and administrative expense adjustments: | ||||||||
Stock-based compensation expense | 0 | 0 | 0 | 0 | ||||
Other | General and Administrative Expense | ||||||||
Non-general and administrative expense adjustments: | ||||||||
Stock-based compensation expense in restaurant wages | 0 | 0 | 0 | 0 | ||||
General and administrative expense adjustments: | ||||||||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) | 3 Months Ended |
Sep. 27, 2020shares | |
Earnings Per Share [Abstract] | |
Nonvested restricted shares right to receive dividends, per share ratio to common shares | 1 |
Restricted Stock Units | |
Class of Stock [Line Items] | |
Number of outstanding restricted stock units excluded from computation of diluted EPS | 0 |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Basic and diluted EPS: | ||||||||
Net income (loss) | $ 4,593 | $ (8,343) | $ (7,317) | $ (22,182) | $ (43,440) | $ 2,289 | $ (11,067) | $ (63,333) |
Less: income allocated to participating securities | 112 | 0 | 0 | 0 | ||||
Net income (loss) available to common shareholders | $ 4,481 | $ (22,182) | $ (11,067) | $ (63,333) | ||||
Weighted average common shares—basic | 25,290,357 | 26,548,116 | 25,359,004 | 26,734,822 | ||||
Restricted stock units (in shares) | 1,362 | 0 | 0 | 0 | ||||
Weighted average common shares—diluted | 25,291,719 | 26,548,116 | 25,359,004 | 26,734,822 | ||||
Loss per common share—basic (usd per share) | $ 0.18 | $ (0.84) | $ (0.44) | $ (2.37) | ||||
Loss per common share—diluted (usd per share) | $ 0.18 | $ (0.84) | $ (0.44) | $ (2.37) |
Commitments and Contingencies -
Commitments and Contingencies - Lease Assignments (Details) $ in Millions | Sep. 27, 2020USD ($)lease |
Loss Contingencies [Line Items] | |
Maximum potential liability for future rental payments | $ | $ 3 |
Taco Cabana | |
Loss Contingencies [Line Items] | |
Number of leases assigned | 1 |
Pollo Tropical | |
Loss Contingencies [Line Items] | |
Number of leases assigned | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 27, 2020 | Mar. 29, 2020 | |
Income Tax Disclosure [Abstract] | ||
Incremental tax benefit, net operating losses | $ 0.1 | $ 1.8 |
Incremental tax benefit, reclassification of certain assets as qualified improvement property | $ 1.9 |
Related Party Transactions (Det
Related Party Transactions (Details) | Sep. 27, 2020 |
Jefferies Financial Group, Inc | |
Related Party Transaction [Line Items] | |
Ownership percentage | 20.00% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | |
Supplemental cash flow disclosures of non-cash investing and financing activities: | ||
Accruals for capital expenditures | $ 1,826 | $ 3,198 |
Right-of-use assets obtained in exchange for lease liabilities: | ||
Operating lease ROU assets | 28,798 | 8,618 |
Finance lease ROU assets | 33 | 495 |
Right-of-use assets and lease liabilities reduced for terminated leases: | ||
Operating lease ROU assets | 2,387 | 4,058 |
Operating lease liabilities | 2,843 | 4,787 |
Operating lease right-of-use assets obtained and lease liabilities incurred as a result of adoption of ASC 842: | ||
Operating lease ROU assets | 0 | 267,743 |
Operating lease liabilities | 0 | 291,373 |
Accruals for financing costs associated with debt amendment | 154 | 0 |
Supplemental cash flow disclosures: | ||
Interest paid on long-term debt | 3,095 | 3,558 |
Income tax payments (refunds), net | $ (2,155) | $ (15,620) |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Nov. 04, 2020USD ($)restaurant | Sep. 27, 2020USD ($)restaurant | Sep. 27, 2020USD ($)restaurant | Sep. 29, 2019USD ($) | |
Subsequent Event [Line Items] | ||||
Number of restaurants sold in sale-leaseback transactions | restaurant | 2 | |||
Proceeds from sale-leaseback transactions | $ | $ 6,300 | $ 6,284 | $ 0 | |
Restaurant properties classified as held for sale | restaurant | 2 | 2 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of restaurants sold in sale-leaseback transactions | restaurant | 3 | |||
Proceeds from sale-leaseback transactions | $ | $ 6,600 | |||
Net proceeds from sale of restaurant properties | $ | $ 2,800 |