Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 04, 2021 | May 07, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 4, 2021 | |
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 $0.01 per share | |
Entity Trading Symbol | FRGI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001534992 | |
Current Fiscal Year End Date | --01-02 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,465,303 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Current assets: | ||
Cash | $ 59,016 | $ 50,035 |
Restricted cash | 3,837 | 3,584 |
Accounts receivable | 8,883 | 8,884 |
Inventories | 4,164 | 4,205 |
Prepaid rent | 119 | 115 |
Income tax receivable | 81 | 9,399 |
Prepaid expenses and other current assets | 9,739 | 7,804 |
Total current assets | 85,839 | 84,026 |
Property and equipment, net | 153,066 | 161,081 |
Operating lease right-of-use assets | 257,964 | 261,304 |
Goodwill | 56,307 | 56,307 |
Other assets | 7,787 | 6,025 |
Total assets | 560,963 | 568,743 |
Current liabilities: | ||
Current portion of long-term debt | 1,021 | 1,015 |
Accounts payable | 13,256 | 13,339 |
Accrued payroll, related taxes and benefits | 13,488 | 14,236 |
Accrued real estate taxes | 2,977 | 6,600 |
Other current liabilities | 31,456 | 29,719 |
Total current liabilities | 62,198 | 64,909 |
Long-term debt, net of current portion | 72,238 | 72,328 |
Operating lease liabilities | 264,487 | 268,086 |
Deferred tax liabilities | 3,744 | 4,109 |
Other non-current liabilities | 11,441 | 11,530 |
Total liabilities | 414,108 | 420,962 |
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, 28,427,348 and 28,278,320 shares issued, respectively, and 25,402,677 and 25,293,149 shares outstanding, respectively | 274 | 273 |
Additional paid-in capital | 177,776 | 176,614 |
Retained earnings (accumulated deficit) | (10,416) | (8,327) |
Treasury stock, at cost; 1,993,495 shares | (20,779) | (20,779) |
Total stockholders' equity | 146,855 | 147,781 |
Total liabilities and stockholders' equity | $ 560,963 | $ 568,743 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 04, 2021 | Jan. 03, 2021 |
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 |
Preferred stock, shares issued | 0 | 0 |
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 | 28,427,348 | 28,278,320 |
Common stock, shares outstanding | 25,402,677 | 25,293,149 |
Treasury Stock, Shares | 1,993,495 | 1,993,495 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Revenues: | ||
Revenues | $ 144,739 | $ 146,699 |
Costs and expenses: | ||
Cost of sales | 43,086 | 46,276 |
Restaurant wages and related expenses (including stock-based compensation expense of $42 and $36, respectively) | 38,044 | 40,495 |
Restaurant rent expense | 11,633 | 11,339 |
Other restaurant operating expenses | 22,296 | 21,511 |
Advertising expense | 3,988 | 5,783 |
General and administrative (including stock-based compensation expense of $1,121 and $776, respectively) | 14,568 | 14,384 |
Depreciation and amortization | 8,926 | 9,430 |
Pre-opening costs | 0 | 69 |
Impairment and other lease charges | (122) | 4,233 |
Closed restaurant rent expense, net of sublease income | 1,091 | 1,632 |
Other expense (income), net | (38) | 908 |
Total operating expenses | 143,472 | 156,060 |
Income (loss) from operations | 1,267 | (9,361) |
Interest expense | 2,023 | 961 |
Loss before income taxes | (756) | (10,322) |
Provision for (benefit from) income taxes | 1,333 | (3,005) |
Net loss | $ (2,089) | $ (7,317) |
Earnings (loss) per common share: | ||
Basic (usd per share) | $ (0.08) | $ (0.29) |
Diluted (usd per share) | $ (0.08) | $ (0.29) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 25,324,213 | 25,519,247 |
Diluted (in shares) | 25,324,213 | 25,519,247 |
Restaurant sales | ||
Revenues: | ||
Revenues | $ 144,164 | $ 146,086 |
Franchise royalty revenues and fees | ||
Revenues: | ||
Revenues | $ 575 | $ 613 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Stock-based compensation | $ 1,200 | $ 800 |
Restaurant Wages And Related Expenses | ||
Stock-based compensation | 42 | 36 |
General and Administrative Expense | ||
Stock-based compensation | $ 1,121 | $ 776 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Treasury Stock |
Beginning shares at Dec. 29, 2019 | 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) | (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 Jan. 03, 2021 | 25,293,149 | 25,293,149 | |||
Beginning balance at Jan. 03, 2021 | $ 147,781 | $ 273 | 176,614 | (8,327) | (20,779) |
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation | 1,163 | 1,163 | |||
Vesting of restricted shares (in shares) | 109,528 | ||||
Vesting of restricted shares | 0 | $ 1 | (1) | ||
Net income (loss) | $ (2,089) | (2,089) | |||
Ending shares at Apr. 04, 2021 | 25,402,677 | 25,402,677 | |||
Ending balance at Apr. 04, 2021 | $ 146,855 | $ 274 | $ 177,776 | $ (10,416) | $ (20,779) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Operating activities: | ||
Net loss | $ (2,089) | $ (7,317) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Gain on disposals of property and equipment, net | (245) | 0 |
Stock-based compensation | 1,163 | 812 |
Impairment and other lease charges | (122) | 4,233 |
Depreciation and amortization | 8,926 | 9,430 |
Amortization of deferred financing costs | 200 | 68 |
Deferred income taxes | (365) | 4,212 |
Changes in other operating assets and liabilities | 2,056 | (6,974) |
Net cash provided by operating activities | 9,524 | 4,464 |
Capital expenditures: | ||
New restaurant development | 0 | (1,590) |
Restaurant remodeling | (662) | (1,025) |
Other restaurant capital expenditures | (1,972) | (2,536) |
Corporate and restaurant information systems | (462) | (932) |
Total capital expenditures | (3,096) | (6,083) |
Proceeds from sale-leaseback transactions | 3,083 | 0 |
Net cash used in investing activities | (13) | (6,083) |
Financing activities: | ||
Borrowings on revolving credit facility | 0 | 71,420 |
Repayments on revolving credit facility | 0 | (75,420) |
Repayment of secured debt | (188) | 0 |
Principal payments on finance leases | (82) | (57) |
Financing costs associated with debt | (7) | 0 |
Payments to purchase treasury stock | 0 | (3,728) |
Net cash used in financing activities | (277) | (7,785) |
Net change in cash and restricted cash | 9,234 | (9,404) |
Cash and restricted cash, beginning of period | 53,619 | 13,413 |
Cash and restricted cash, end of period | $ 62,853 | $ 4,009 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 04, 2021 | |
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 April 4, 2021, the Company owned and operated 138 Pollo Tropical ® restaurants and 143 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 April 4, 2021, the Company franchised a total of 29 Pollo Tropical restaurants and six Taco Cabana restaurants. The franchised Pollo Tropical restaurants include 17 in Puerto Rico, two in Panama, one in Guyana, two in Ecuador, one in the Bahamas, five on college campuses and one at a hospital in Florida. The franchised Taco Cabana restaurants include six in New Mexico. 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 January 3, 2021 contained 53 weeks. The three months ended April 4, 2021 and March 29, 2020 each contained thirteen weeks. The fiscal year ending January 2, 2022 will contain 52 weeks. Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three months ended April 4, 2021 and March 29, 2020 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 months ended April 4, 2021 and March 29, 2020 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 January 3, 2021 included in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2021. The January 3, 2021 balance sheet data is derived from those audited financial statements. During the three months ended April 4, 2021, the Company determined that tax depreciation on certain assets placed into service prior to the formation of Fiesta in 2011 was inadvertently calculated incorrectly in prior years as a result of the tax depreciation classification assigned to these assets, which resulted in an overstatement of the related deferred tax liability. The Company recorded a related out-of-period adjustment in the three months ended April 4, 2021, after performing a review to identify affected assets. This adjustment resulted in an increase to income tax expense and net loss of $1.5 million, an increase in other current liabilities of $1.5 million and a decrease in deferred tax liabilities of $1.0 million which was offset by a corresponding increase of $0.9 million in the deferred tax valuation allowance. The adjustment to income tax expense primarily relates to fiscal 2017 when the Company recorded an adjustment to deferred income taxes related to a change in the federal income tax rate and fiscal 2019 when the Company established a valuation allowance on its deferred income tax assets. Prior to these years, the impact primarily affected deferred income tax liabilities and other current liabilities. In fiscal 2020 and 2019, the impact would have increased net loss by $0.1 million and $0.9 million, respectively. The adjustment did not affect pre-tax consolidated financial results or Adjusted EBITDA for either of the Company's segments. The Company evaluated the effects of this out-of-period adjustment, both qualitatively and quantitatively, and concluded that this adjustment was not material to the Company's financial position or results of operations for the current or any prior periods. Guidance Adopted in 2021. In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740) ("ASU No. 2019-12"), 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 Company adopted this new accounting standard on January 4, 2021, and will apply it prospectively in each period after the date of adoption. The impact of the standard is largely dependent on interim and anticipated profit or loss in a given period, however the Company does not expect ASU No. 2019-12 to have a significant impact on its financial statements. 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 on 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 consolidated balance sheets of cash and restricted cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. • Term Loan Borrowings. The fair value of outstanding term loan borrowings under the Company's new senior credit facility, which is considered Level 2, is based on current LIBOR rates. The fair value of the Company's senior credit facility was approximately $75.0 million at April 4, 2021 and $74.4 million at January 3, 2021, respectively. The carrying value of the Company's senior credit facility was $71.5 million at April 4, 2021 and $71.5 million at January 3, 2021, 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. During the first quarter of 2021, the Company sold two restaurant properties for total proceeds of $3.1 million in sale-leaseback transactions that resulted in a total gain of $0.3 million, which is recognized in other expense (income), net in the condensed consolidated statements of operations. 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 changes related to COVID-19 will continue to have an impact through the first half of 2021. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Apr. 04, 2021 | |
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: April 4, 2021 January 3, 2021 Prepaid contract expenses $ 4,762 $ 4,279 Assets held for sale (1) 1,257 1,257 Other 3,720 2,268 $ 9,739 $ 7,804 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets and Other Lease Charges | 3 Months Ended |
Apr. 04, 2021 | |
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 April 4, 2021 March 29, 2020 Pollo Tropical $ 110 $ 3,696 Taco Cabana (232) 537 $ (122) $ 4,233 Impairment and other lease charges for the three months ended April 4, 2021 for Pollo Tropical include impairment charges of $0.1 million related primarily to impairment of equipment from previously impaired and closed restaurants. Impairment and other lease charges for the three months ended April 4, 2021 for Taco Cabana include gains from lease terminations of $(0.2) million. |
Other Liabilities
Other Liabilities | 3 Months Ended |
Apr. 04, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other current liabilities consist of the following: April 4, 2021 January 3, 2021 Operating lease liabilities $ 19,922 $ 19,803 Accrued workers' compensation and general liability claims 3,845 3,619 Sales and property taxes 1,664 2,347 Accrued occupancy costs (1) 300 330 Other 5,725 3,620 $ 31,456 $ 29,719 (1) Accrued occupancy costs primarily consisted of obligations pertaining to closed restaurant locations. Other non-current liabilities consist of the following: April 4, 2021 January 3, 2021 Accrued workers' compensation and general liability claims $ 6,791 $ 6,791 Accrued payroll taxes (1) 2,936 3,003 Deferred compensation 480 491 Other 1,234 1,245 $ 11,441 $ 11,530 (1) Includes employer Social Security payroll tax deferred as a result of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") The following table presents the activity in the closed restaurant reserve, which is included within other current liabilities on the condensed consolidated balance sheets at April 4, 2021 and January 3, 2021. Three Months Ended April 4, 2021 Year Ended January 3, 2021 Balance, beginning of period $ 218 $ 752 Payments, net (12) (259) Other adjustments (7) (275) Balance, end of period $ 199 $ 218 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 04, 2021 | |
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 during the three months ended March 29, 2020. 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 new senior credit facility 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 three months ended April 4, 2021, the Company granted certain employees a total of 153,998 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 weighted average fair value at grant date for non-vested shares issued during the three months ended April 4, 2021 was $17.43 per share. During the three months ended April 4, 2021, the Company also granted certain employees a total of 64,089 restricted stock units under the Fiesta Plan subject to performance conditions. The restricted stock units vest and become non-forfeitable at the end of a three Stock-based compensation expense for the three months ended April 4, 2021 and March 29, 2020 was $1.2 million and $0.8 million, respectively. At April 4, 2021, the total unrecognized stock-based compensation expense related to non-vested restricted shares and restricted stock units was approximately $10.4 million. At April 4, 2021, the remaining weighted average vesting period for non-vested restricted shares was 2.4 years and restricted stock units was 2.9 years. A summary of all non-vested restricted shares and restricted stock units activity for the three months ended April 4, 2021 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at January 3, 2021 991,676 $ 10.26 150,585 $ 9.49 Granted 153,998 17.43 64,089 17.43 Vested and released (107,498) 14.24 (2,030) 20.75 Forfeited (7,000) 12.73 (148,469) 9.32 Outstanding at April 4, 2021 1,031,176 $ 10.90 64,175 $ 17.45 |
Business Segment Information
Business Segment Information | 3 Months Ended |
Apr. 04, 2021 | |
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 with most items made fresh. 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 January 3, 2021. 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 April 4, 2021: Restaurant sales $ 87,840 $ 56,324 $ — $ 144,164 Franchise revenue 375 200 — 575 Cost of sales 27,301 15,785 — 43,086 Restaurant wages and related expenses (1) 20,339 17,705 — 38,044 Restaurant rent expense 5,877 5,756 — 11,633 Other restaurant operating expenses 13,184 9,112 — 22,296 Advertising expense 2,375 1,613 — 3,988 General and administrative expense (2) 7,880 6,688 — 14,568 Adjusted EBITDA 12,192 670 — 12,862 Depreciation and amortization 4,938 3,988 — 8,926 Capital expenditures 709 2,031 356 3,096 March 29, 2020: Restaurant sales $ 85,721 $ 60,365 $ — $ 146,086 Franchise revenue 404 209 — 613 Cost of sales 27,731 18,545 — 46,276 Restaurant wages and related expenses (1) 21,037 19,458 — 40,495 Restaurant rent expense 5,640 5,699 — 11,339 Other restaurant operating expenses 12,386 9,125 — 21,511 Advertising expense 3,504 2,279 — 5,783 General and administrative expense (2) 7,488 6,896 — 14,384 Adjusted EBITDA 8,780 (907) — 7,873 Depreciation and amortization 5,278 4,152 — 9,430 Capital expenditures 3,281 2,600 202 6,083 Identifiable Assets: April 4, 2021 $ 307,079 $ 178,302 $ 75,582 $ 560,963 January 3, 2021 311,905 182,009 74,829 568,743 (1) Includes stock-based compensation expense of $42 and $36 for the three months ended April 4, 2021 and March 29, 2020, respectively. (2) Includes stock-based compensation expense of $1,121 and $776 for the three months ended April 4, 2021 and March 29, 2020, respectively. A reconciliation of consolidated net loss to Adjusted EBITDA follows: Three Months Ended Pollo Tropical Taco Cabana Consolidated April 4, 2021: Net loss $ (2,089) Provision for income taxes 1,333 Income (loss) before taxes $ 4,935 $ (5,691) $ (756) Add: Non-general and administrative expense adjustments: Depreciation and amortization 4,938 3,988 8,926 Impairment and other lease charges 110 (232) (122) Interest expense 970 1,053 2,023 Closed restaurant rent expense, net of sublease income 240 851 1,091 Other expense (income), net 66 (104) (38) Stock-based compensation expense in restaurant wages 16 26 42 Total non-general and administrative expense adjustments 6,340 5,582 11,922 General and administrative expense adjustments: Stock-based compensation expense 601 520 1,121 Digital and brand repositioning costs 316 259 575 Total general and administrative expense adjustments 917 779 1,696 Adjusted EBITDA $ 12,192 $ 670 $ 12,862 March 29, 2020: Net loss $ (7,317) Benefit from income taxes (3,005) Loss before taxes $ (1,827) $ (8,495) $ (10,322) Add: Non-general and administrative expense adjustments: Depreciation and amortization 5,278 4,152 9,430 Impairment and other lease charges 3,696 537 4,233 Interest expense 483 478 961 Closed restaurant rent expense, net of sublease income 602 1,030 1,632 Other expense (income), net 107 801 908 Stock-based compensation expense in restaurant wages 11 25 36 Total non-general and administrative expense adjustments 10,177 7,023 17,200 General and administrative expense adjustments: Stock-based compensation expense 310 466 776 Digital and brand repositioning costs 120 99 219 Total general and administrative expense adjustments 430 565 995 Adjusted EBITDA $ 8,780 $ (907) $ 7,873 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Apr. 04, 2021 | |
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 April 4, 2021 and March 29, 2020, all shares of outstanding restricted stock units were excluded from the computation of diluted EPS because including these restricted stock units would have been antidilutive as a result of the net loss in the three months ended April 4, 2021 and March 29, 2020. The computation of basic and diluted EPS is as follows: Three Months Ended April 4, 2021 March 29, 2020 Basic and diluted EPS: Net loss $ (2,089) $ (7,317) Less: income allocated to participating securities — — Net loss available to common shareholders $ (2,089) $ (7,317) Weighted average common shares—basic 25,324,213 25,519,247 Restricted stock units — — Weighted average common shares—diluted 25,324,213 25,519,247 Loss per common share—basic $ (0.08) $ (0.29) Loss per common share—diluted (0.08) (0.29) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 04, 2021 | |
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 April 4, 2021 was $2.9 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 . The Company is a party to various litigation matters incidental to the conduct of business. The Company does not believe that the outcome of any of these matters will have a material effect on its condensed consolidated financial statements. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 04, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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, which represents the impact of carrying net operating losses from 2018 and 2019 back to years with a higher federal corporate income tax rate. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 04, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Company engaged Jefferies LLC ("Jefferies"), an affiliate of two of the members of Fiesta's board of directors, one of whom was not renominated in 2021, 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 a refinancing of the Company's former amended senior credit facility and other advisory services, as previously disclosed. 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 Annual Meeting of Stockholders. The Company paid fees of $1.7 million to Jefferies and reimbursed Jefferies for reasonable out of pocket and ancillary expenses of less than $0.1 million when the refinancing was completed in the fourth quarter of 2020. As of April 4, 2021 and January 3, 2021, there were no amounts due to the related party recognized on the condensed consolidated balance sheets. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Apr. 04, 2021 | |
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: Three Months Ended April 4, 2021 March 29, 2020 Supplemental cash flow disclosures: Interest paid on long-term debt $ 1,723 $ 941 Income tax payments (refunds), net (9,157) (1,073) Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 2,116 $ 2,161 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 4,493 11,193 Finance lease ROU assets — 33 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 1,864 — Operating lease liabilities 2,268 — Cash and restricted cash reconciliation: Beginning of period Cash $ 50,035 $ 13,413 Restricted cash 3,584 — Cash and restricted cash, beginning of period $ 53,619 $ 13,413 End of period Cash $ 59,016 $ 4,009 Restricted cash 3,837 — Cash and restricted cash, end of period $ 62,853 $ 4,009 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Apr. 04, 2021 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 April 4, 2021, the Company's only exposure to LIBOR rates was its new senior credit facility. Upon cessation of the LIBOR, the new senior credit facility will use a benchmark replacement 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 04, 2021 | |
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 January 3, 2021 contained 53 weeks. The three months ended April 4, 2021 and March 29, 2020 each contained thirteen weeks. The fiscal year ending January 2, 2022 will contain 52 weeks. |
Basis of Presentation | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three months ended April 4, 2021 and March 29, 2020 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 months ended April 4, 2021 and March 29, 2020 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 January 3, 2021 included in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2021. The January 3, 2021 balance sheet data is derived from those audited financial statements. |
Guidance Adopted in 2021 and Recent Accounting Pronouncements | Guidance Adopted in 2021. In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740) ("ASU No. 2019-12"), 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 Company adopted this new accounting standard on January 4, 2021, and will apply it prospectively in each period after the date of adoption. The impact of the standard is largely dependent on interim and anticipated profit or loss in a given period, however the Company does not expect ASU No. 2019-12 to have a significant impact 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 April 4, 2021, the Company's only exposure to LIBOR rates was its new senior credit facility. Upon cessation of the LIBOR, the new senior credit facility will use a benchmark replacement 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 on 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 consolidated balance sheets of cash and restricted cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. • Term Loan Borrowings. |
Long-Lived Assets | 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. |
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. |
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 changes related to COVID-19 will continue to have an impact through the first half of 2021. |
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 during the three months ended March 29, 2020. 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 new senior credit facility 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.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. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
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: April 4, 2021 January 3, 2021 Prepaid contract expenses $ 4,762 $ 4,279 Assets held for sale (1) 1,257 1,257 Other 3,720 2,268 $ 9,739 $ 7,804 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets and Other Lease Charges (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
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 April 4, 2021 March 29, 2020 Pollo Tropical $ 110 $ 3,696 Taco Cabana (232) 537 $ (122) $ 4,233 |
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 April 4, 2021 March 29, 2020 Pollo Tropical $ 110 $ 3,696 Taco Cabana (232) 537 $ (122) $ 4,233 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities, Current | Other current liabilities consist of the following: April 4, 2021 January 3, 2021 Operating lease liabilities $ 19,922 $ 19,803 Accrued workers' compensation and general liability claims 3,845 3,619 Sales and property taxes 1,664 2,347 Accrued occupancy costs (1) 300 330 Other 5,725 3,620 $ 31,456 $ 29,719 (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: April 4, 2021 January 3, 2021 Accrued workers' compensation and general liability claims $ 6,791 $ 6,791 Accrued payroll taxes (1) 2,936 3,003 Deferred compensation 480 491 Other 1,234 1,245 $ 11,441 $ 11,530 (1) Includes employer Social Security payroll tax deferred as a result of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") |
Activity in the Closed-Restaurant Reserve | The following table presents the activity in the closed restaurant reserve, which is included within other current liabilities on the condensed consolidated balance sheets at April 4, 2021 and January 3, 2021. Three Months Ended April 4, 2021 Year Ended January 3, 2021 Balance, beginning of period $ 218 $ 752 Payments, net (12) (259) Other adjustments (7) (275) Balance, end of period $ 199 $ 218 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
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 three months ended April 4, 2021 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at January 3, 2021 991,676 $ 10.26 150,585 $ 9.49 Granted 153,998 17.43 64,089 17.43 Vested and released (107,498) 14.24 (2,030) 20.75 Forfeited (7,000) 12.73 (148,469) 9.32 Outstanding at April 4, 2021 1,031,176 $ 10.90 64,175 $ 17.45 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended Pollo Tropical Taco Cabana Other Consolidated April 4, 2021: Restaurant sales $ 87,840 $ 56,324 $ — $ 144,164 Franchise revenue 375 200 — 575 Cost of sales 27,301 15,785 — 43,086 Restaurant wages and related expenses (1) 20,339 17,705 — 38,044 Restaurant rent expense 5,877 5,756 — 11,633 Other restaurant operating expenses 13,184 9,112 — 22,296 Advertising expense 2,375 1,613 — 3,988 General and administrative expense (2) 7,880 6,688 — 14,568 Adjusted EBITDA 12,192 670 — 12,862 Depreciation and amortization 4,938 3,988 — 8,926 Capital expenditures 709 2,031 356 3,096 March 29, 2020: Restaurant sales $ 85,721 $ 60,365 $ — $ 146,086 Franchise revenue 404 209 — 613 Cost of sales 27,731 18,545 — 46,276 Restaurant wages and related expenses (1) 21,037 19,458 — 40,495 Restaurant rent expense 5,640 5,699 — 11,339 Other restaurant operating expenses 12,386 9,125 — 21,511 Advertising expense 3,504 2,279 — 5,783 General and administrative expense (2) 7,488 6,896 — 14,384 Adjusted EBITDA 8,780 (907) — 7,873 Depreciation and amortization 5,278 4,152 — 9,430 Capital expenditures 3,281 2,600 202 6,083 Identifiable Assets: April 4, 2021 $ 307,079 $ 178,302 $ 75,582 $ 560,963 January 3, 2021 311,905 182,009 74,829 568,743 (1) Includes stock-based compensation expense of $42 and $36 for the three months ended April 4, 2021 and March 29, 2020, respectively. |
Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA | A reconciliation of consolidated net loss to Adjusted EBITDA follows: Three Months Ended Pollo Tropical Taco Cabana Consolidated April 4, 2021: Net loss $ (2,089) Provision for income taxes 1,333 Income (loss) before taxes $ 4,935 $ (5,691) $ (756) Add: Non-general and administrative expense adjustments: Depreciation and amortization 4,938 3,988 8,926 Impairment and other lease charges 110 (232) (122) Interest expense 970 1,053 2,023 Closed restaurant rent expense, net of sublease income 240 851 1,091 Other expense (income), net 66 (104) (38) Stock-based compensation expense in restaurant wages 16 26 42 Total non-general and administrative expense adjustments 6,340 5,582 11,922 General and administrative expense adjustments: Stock-based compensation expense 601 520 1,121 Digital and brand repositioning costs 316 259 575 Total general and administrative expense adjustments 917 779 1,696 Adjusted EBITDA $ 12,192 $ 670 $ 12,862 March 29, 2020: Net loss $ (7,317) Benefit from income taxes (3,005) Loss before taxes $ (1,827) $ (8,495) $ (10,322) Add: Non-general and administrative expense adjustments: Depreciation and amortization 5,278 4,152 9,430 Impairment and other lease charges 3,696 537 4,233 Interest expense 483 478 961 Closed restaurant rent expense, net of sublease income 602 1,030 1,632 Other expense (income), net 107 801 908 Stock-based compensation expense in restaurant wages 11 25 36 Total non-general and administrative expense adjustments 10,177 7,023 17,200 General and administrative expense adjustments: Stock-based compensation expense 310 466 776 Digital and brand repositioning costs 120 99 219 Total general and administrative expense adjustments 430 565 995 Adjusted EBITDA $ 8,780 $ (907) $ 7,873 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted EPS | The computation of basic and diluted EPS is as follows: Three Months Ended April 4, 2021 March 29, 2020 Basic and diluted EPS: Net loss $ (2,089) $ (7,317) Less: income allocated to participating securities — — Net loss available to common shareholders $ (2,089) $ (7,317) Weighted average common shares—basic 25,324,213 25,519,247 Restricted stock units — — Weighted average common shares—diluted 25,324,213 25,519,247 Loss per common share—basic $ (0.08) $ (0.29) Loss per common share—diluted (0.08) (0.29) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Apr. 04, 2021 | |
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: Three Months Ended April 4, 2021 March 29, 2020 Supplemental cash flow disclosures: Interest paid on long-term debt $ 1,723 $ 941 Income tax payments (refunds), net (9,157) (1,073) Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 2,116 $ 2,161 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 4,493 11,193 Finance lease ROU assets — 33 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 1,864 — Operating lease liabilities 2,268 — Cash and restricted cash reconciliation: Beginning of period Cash $ 50,035 $ 13,413 Restricted cash 3,584 — Cash and restricted cash, beginning of period $ 53,619 $ 13,413 End of period Cash $ 59,016 $ 4,009 Restricted cash 3,837 — Cash and restricted cash, end of period $ 62,853 $ 4,009 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 04, 2021USD ($)segmentrestaurant | Mar. 29, 2020USD ($) | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | |
Entity Information [Line Items] | ||||
Number of operating segments | segment | 2 | |||
Number of restaurants sold in sale-leaseback transactions | 2 | |||
Proceeds from sale-leaseback transactions | $ | $ 3,083 | $ 0 | ||
Gain from sale-leaseback transactions | $ | 300 | |||
Other Current Liabilities | ||||
Entity Information [Line Items] | ||||
Out of period adjustment | $ | (1,500) | |||
Deferred Tax Liabilities | ||||
Entity Information [Line Items] | ||||
Out of period adjustment | $ | 1,000 | |||
Valuation Allowance | ||||
Entity Information [Line Items] | ||||
Out of period adjustment | $ | (900) | |||
Income Tax Expense | ||||
Entity Information [Line Items] | ||||
Out of period adjustment | $ | $ 1,500 | $ 100 | $ 900 | |
Minimum | ||||
Entity Information [Line Items] | ||||
Lease term | 20 years | |||
Entity Operated Units | Pollo Tropical | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 138 | |||
Entity Operated Units | Taco Cabana | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 143 | |||
Franchised Units | Pollo Tropical | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 29 | |||
Franchised Units | Pollo Tropical | Puerto Rico | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 17 | |||
Franchised Units | Pollo Tropical | Panama | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 2 | |||
Franchised Units | Pollo Tropical | Guyana | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 1 | |||
Franchised Units | Pollo Tropical | Ecuador | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 2 | |||
Franchised Units | Pollo Tropical | Bahamas | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 1 | |||
Franchised Units | Pollo Tropical | Florida | College Campus | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 5 | |||
Franchised Units | Pollo Tropical | Florida | Hospital | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 1 | |||
Franchised Units | Taco Cabana | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 6 | |||
Franchised Units | Taco Cabana | New Mexico | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 6 |
Basis of Presentation - Fair Va
Basis of Presentation - Fair Value Disclosures (Details) - USD ($) $ in Millions | Apr. 04, 2021 | Jan. 03, 2021 |
Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior credit facility | $ 71.5 | $ 71.5 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior credit facility | $ 75 | $ 74.4 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) $ in Thousands | Apr. 04, 2021USD ($)restaurant | Jan. 03, 2021USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid contract expenses | $ 4,762 | $ 4,279 |
Assets held for sale | 1,257 | 1,257 |
Other | 3,720 | 2,268 |
Prepaid expenses and other current assets | $ 9,739 | $ 7,804 |
Taco Cabana | ||
Property, Plant and Equipment [Line Items] | ||
Closed restaurant properties classified as held for sale | restaurant | 1 |
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 | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Impairment and Other Lease Charges [Line Items] | ||
Impairment and other lease charges | $ (122) | $ 4,233 |
Pollo Tropical | ||
Impairment and Other Lease Charges [Line Items] | ||
Impairment and other lease charges | 110 | 3,696 |
Taco Cabana | ||
Impairment and Other Lease Charges [Line Items] | ||
Impairment and other lease charges | $ (232) | $ 537 |
Impairment of Long-Lived Asse_4
Impairment of Long-Lived Assets and Other Lease Charges - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Apr. 04, 2021USD ($) | Mar. 29, 2020USD ($)restaurant | Sep. 27, 2020restaurant | |
Pollo Tropical | |||
Impairment and Other Lease Charges [Line Items] | |||
Impairment charges | $ | $ 100 | $ 3,700 | |
Number of underperforming restaurants | restaurant | 3 | ||
Number of closed restaurants | restaurant | 2 | ||
Taco Cabana | |||
Impairment and Other Lease Charges [Line Items] | |||
Impairment charges | $ | $ 500 | ||
Number of underperforming restaurants | restaurant | 2 | ||
Lease termination charges (gains) | $ | $ (200) |
Other Liabilities - Current (De
Other Liabilities - Current (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Operating lease liabilities | $ 19,922 | $ 19,803 |
Accrued workers' compensation and general liability claims | 3,845 | 3,619 |
Sales and property taxes | 1,664 | 2,347 |
Accrued occupancy costs | 300 | 330 |
Other | 5,725 | 3,620 |
Other current liabilities | $ 31,456 | $ 29,719 |
Other Liabilities - Non-current
Other Liabilities - Non-current (Details) - USD ($) $ in Thousands | Apr. 04, 2021 | Jan. 03, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Accrued workers' compensation and general liability claims | $ 6,791 | $ 6,791 |
Accrued payroll taxes | 2,936 | 3,003 |
Deferred compensation | 480 | 491 |
Other | 1,234 | 1,245 |
Other non-current liabilities | $ 11,441 | $ 11,530 |
Other Liabilities - Closed-Rest
Other Liabilities - Closed-Restaurant Reserve (Details) - Closed Stores - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Activity in the Closed-Restaurant Reserve | ||
Balance, beginning of period | $ 218 | $ 752 |
Payments, net | (12) | (259) |
Other adjustments | (7) | $ (275) |
Balance, end of period | $ 199 |
Stockholders' Equity - Purchase
Stockholders' Equity - Purchase of Treasury Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 29, 2020 | Apr. 04, 2021 | 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 | |||
Treasury stock purchases | $ 3,728 | |||
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 | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 1.2 | $ 0.8 |
Unrecognized stock-based compensation expense | $ 10.4 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares to be Issued at End of Performance Period | 128,178 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares to be Issued at End of Performance Period | 0 | |
Nonvested Restricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted in period | 153,998 | |
Weighted average grant date fair value, grants in period (usd per share) | $ 17.43 | |
Share-based compensation cost not yet recognized, period for recognition | 2 years 4 months 24 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 | 64,089 | |
Vesting period | 3 years | |
Weighted average grant date fair value, grants in period (usd per share) | $ 17.43 | |
Share-based compensation cost not yet recognized, period for recognition | 2 years 10 months 24 days |
Stockholders' Equity - Non-vest
Stockholders' Equity - Non-vested Restricted Shares and Restricted Stock Units Activity (Details) | 3 Months Ended |
Apr. 04, 2021$ / sharesshares | |
Non-Vested Shares | |
Non-vested Restricted Shares and Restricted Stock Units | |
Outstanding at beginning of period (in shares) | shares | 991,676 |
Granted (in shares) | shares | 153,998 |
Vested and released (in shares) | shares | (107,498) |
Forfeited (in shares) | shares | (7,000) |
Outstanding at end of period (in shares) | shares | 1,031,176 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of period (usd per share) | $ / shares | $ 10.26 |
Granted (usd per share) | $ / shares | 17.43 |
Vested and released (usd per share) | $ / shares | 14.24 |
Forfeited (usd per share) | $ / shares | 12.73 |
Outstanding at end of period (usd per share) | $ / shares | $ 10.90 |
Restricted Stock Units | |
Non-vested Restricted Shares and Restricted Stock Units | |
Outstanding at beginning of period (in shares) | shares | 150,585 |
Granted (in shares) | shares | 64,089 |
Vested and released (in shares) | shares | (2,030) |
Forfeited (in shares) | shares | (148,469) |
Outstanding at end of period (in shares) | shares | 64,175 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of period (usd per share) | $ / shares | $ 9.49 |
Granted (usd per share) | $ / shares | 17.43 |
Vested and released (usd per share) | $ / shares | 20.75 |
Forfeited (usd per share) | $ / shares | 9.32 |
Outstanding at end of period (usd per share) | $ / shares | $ 17.45 |
Business Segment Information -
Business Segment Information - Segment Reporting Information, by Segment (Details) $ in Thousands | 3 Months Ended | ||
Apr. 04, 2021USD ($)segment | Mar. 29, 2020USD ($) | Jan. 03, 2021USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 144,739 | $ 146,699 | |
Cost of sales | 43,086 | 46,276 | |
Restaurant wages and related expenses | 38,044 | 40,495 | |
Restaurant rent expense | 11,633 | 11,339 | |
Other restaurant operating expenses | 22,296 | 21,511 | |
Advertising expense | 3,988 | 5,783 | |
General and administrative expense | 14,568 | 14,384 | |
Adjusted EBITDA | 12,862 | 7,873 | |
Depreciation and amortization | 8,926 | 9,430 | |
Capital expenditures | 3,096 | 6,083 | |
Identifiable assets | 560,963 | $ 568,743 | |
Stock-based compensation expense | 1,200 | 800 | |
Restaurant Wages And Related Expenses | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 42 | 36 | |
General and Administrative Expense | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 1,121 | 776 | |
Restaurant sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 144,164 | 146,086 | |
Franchise revenue | |||
Segment Reporting Information [Line Items] | |||
Revenues | 575 | 613 | |
Operating Segments | Pollo Tropical | |||
Segment Reporting Information [Line Items] | |||
Cost of sales | 27,301 | 27,731 | |
Restaurant wages and related expenses | 20,339 | 21,037 | |
Restaurant rent expense | 5,877 | 5,640 | |
Other restaurant operating expenses | 13,184 | 12,386 | |
Advertising expense | 2,375 | 3,504 | |
General and administrative expense | 7,880 | 7,488 | |
Adjusted EBITDA | 12,192 | 8,780 | |
Depreciation and amortization | 4,938 | 5,278 | |
Capital expenditures | 709 | 3,281 | |
Identifiable assets | 307,079 | 311,905 | |
Operating Segments | Pollo Tropical | Restaurant Wages And Related Expenses | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 16 | 11 | |
Operating Segments | Pollo Tropical | General and Administrative Expense | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 601 | 310 | |
Operating Segments | Pollo Tropical | Restaurant sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 87,840 | 85,721 | |
Operating Segments | Pollo Tropical | Franchise revenue | |||
Segment Reporting Information [Line Items] | |||
Revenues | 375 | 404 | |
Operating Segments | Taco Cabana | |||
Segment Reporting Information [Line Items] | |||
Cost of sales | 15,785 | 18,545 | |
Restaurant wages and related expenses | 17,705 | 19,458 | |
Restaurant rent expense | 5,756 | 5,699 | |
Other restaurant operating expenses | 9,112 | 9,125 | |
Advertising expense | 1,613 | 2,279 | |
General and administrative expense | 6,688 | 6,896 | |
Adjusted EBITDA | 670 | (907) | |
Depreciation and amortization | 3,988 | 4,152 | |
Capital expenditures | 2,031 | 2,600 | |
Identifiable assets | 178,302 | 182,009 | |
Operating Segments | Taco Cabana | Restaurant Wages And Related Expenses | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 26 | 25 | |
Operating Segments | Taco Cabana | General and Administrative Expense | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 520 | 466 | |
Operating Segments | Taco Cabana | Restaurant sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 56,324 | 60,365 | |
Operating Segments | Taco Cabana | Franchise revenue | |||
Segment Reporting Information [Line Items] | |||
Revenues | 200 | 209 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Cost of sales | 0 | 0 | |
Restaurant wages and related expenses | 0 | 0 | |
Restaurant rent expense | 0 | 0 | |
Other restaurant operating expenses | 0 | 0 | |
Advertising expense | 0 | 0 | |
General and administrative expense | 0 | 0 | |
Adjusted EBITDA | 0 | 0 | |
Depreciation and amortization | 0 | 0 | |
Capital expenditures | 356 | 202 | |
Identifiable assets | 75,582 | $ 74,829 | |
Other | Restaurant sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | |
Other | Franchise revenue | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 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 | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Segment Reporting Information [Line Items] | ||
Net income (loss) | $ (2,089) | $ (7,317) |
Provision for (benefit from) income taxes | 1,333 | (3,005) |
Loss before income taxes | (756) | (10,322) |
Non-general and administrative expense adjustments: | ||
Depreciation and amortization | 8,926 | 9,430 |
Impairment and other lease charges | (122) | 4,233 |
Interest expense | 2,023 | 961 |
Closed restaurant rent expense, net of sublease income | 1,091 | 1,632 |
Other expense (income), net | (38) | 908 |
Stock-based compensation expense in restaurant wages | 1,200 | 800 |
Total non-general and administrative expense adjustments | 11,922 | 17,200 |
General and administrative expense adjustments: | ||
Stock-based compensation expense | 1,200 | 800 |
Digital and brand repositioning costs | 575 | 219 |
Total general and administrative expense adjustments | 1,696 | 995 |
Adjusted EBITDA | 12,862 | 7,873 |
Restaurant Wages And Related Expenses | ||
Non-general and administrative expense adjustments: | ||
Stock-based compensation expense in restaurant wages | 42 | 36 |
General and administrative expense adjustments: | ||
Stock-based compensation expense | 42 | 36 |
General and Administrative Expense | ||
Non-general and administrative expense adjustments: | ||
Stock-based compensation expense in restaurant wages | 1,121 | 776 |
General and administrative expense adjustments: | ||
Stock-based compensation expense | 1,121 | 776 |
Pollo Tropical | ||
Non-general and administrative expense adjustments: | ||
Impairment and other lease charges | 110 | 3,696 |
Taco Cabana | ||
Non-general and administrative expense adjustments: | ||
Impairment and other lease charges | (232) | 537 |
Operating Segments | Pollo Tropical | ||
Segment Reporting Information [Line Items] | ||
Loss before income taxes | 4,935 | (1,827) |
Non-general and administrative expense adjustments: | ||
Depreciation and amortization | 4,938 | 5,278 |
Impairment and other lease charges | 110 | 3,696 |
Interest expense | 970 | 483 |
Closed restaurant rent expense, net of sublease income | 240 | 602 |
Other expense (income), net | 66 | 107 |
Total non-general and administrative expense adjustments | 6,340 | 10,177 |
General and administrative expense adjustments: | ||
Digital and brand repositioning costs | 316 | 120 |
Total general and administrative expense adjustments | 917 | 430 |
Adjusted EBITDA | 12,192 | 8,780 |
Operating Segments | Pollo Tropical | Restaurant Wages And Related Expenses | ||
Non-general and administrative expense adjustments: | ||
Stock-based compensation expense in restaurant wages | 16 | 11 |
General and administrative expense adjustments: | ||
Stock-based compensation expense | 16 | 11 |
Operating Segments | Pollo Tropical | General and Administrative Expense | ||
Non-general and administrative expense adjustments: | ||
Stock-based compensation expense in restaurant wages | 601 | 310 |
General and administrative expense adjustments: | ||
Stock-based compensation expense | 601 | 310 |
Operating Segments | Taco Cabana | ||
Segment Reporting Information [Line Items] | ||
Loss before income taxes | (5,691) | (8,495) |
Non-general and administrative expense adjustments: | ||
Depreciation and amortization | 3,988 | 4,152 |
Impairment and other lease charges | (232) | 537 |
Interest expense | 1,053 | 478 |
Closed restaurant rent expense, net of sublease income | 851 | 1,030 |
Other expense (income), net | (104) | 801 |
Total non-general and administrative expense adjustments | 5,582 | 7,023 |
General and administrative expense adjustments: | ||
Digital and brand repositioning costs | 259 | 99 |
Total general and administrative expense adjustments | 779 | 565 |
Adjusted EBITDA | 670 | (907) |
Operating Segments | Taco Cabana | Restaurant Wages And Related Expenses | ||
Non-general and administrative expense adjustments: | ||
Stock-based compensation expense in restaurant wages | 26 | 25 |
General and administrative expense adjustments: | ||
Stock-based compensation expense | 26 | 25 |
Operating Segments | Taco Cabana | General and Administrative Expense | ||
Non-general and administrative expense adjustments: | ||
Stock-based compensation expense in restaurant wages | 520 | 466 |
General and administrative expense adjustments: | ||
Stock-based compensation expense | 520 | 466 |
Other | ||
Non-general and administrative expense adjustments: | ||
Depreciation and amortization | 0 | 0 |
General and administrative expense adjustments: | ||
Adjusted EBITDA | $ 0 | $ 0 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) | Apr. 04, 2021 |
Earnings Per Share [Abstract] | |
Nonvested restricted shares right to receive dividends, per share ratio to common shares | 1 |
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 | |
Apr. 04, 2021 | Mar. 29, 2020 | |
Basic and diluted EPS: | ||
Net income (loss) | $ (2,089) | $ (7,317) |
Less: income allocated to participating securities | 0 | 0 |
Net loss available to common shareholders | $ (2,089) | $ (7,317) |
Weighted average common shares—basic | 25,324,213 | 25,519,247 |
Restricted stock units (in shares) | 0 | 0 |
Weighted average common shares—diluted | 25,324,213 | 25,519,247 |
Loss per common share—basic (usd per share) | $ (0.08) | $ (0.29) |
Loss per common share—diluted (usd per share) | $ (0.08) | $ (0.29) |
Commitments and Contingencies -
Commitments and Contingencies - Lease Assignments (Details) $ in Millions | Apr. 04, 2021USD ($)lease |
Loss Contingencies [Line Items] | |
Maximum potential liability for future rental payments | $ | $ 2.9 |
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) $ in Millions | 3 Months Ended |
Mar. 29, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Incremental tax benefit, net operating losses | $ 1.8 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 03, 2021 | Apr. 04, 2021 | |
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1,700 | |
Related Party Transaction, Due from (to) Related Party | 0 | $ 0 |
Maximum | ||
Related Party Transaction [Line Items] | ||
Recovery of Direct Costs | $ 100 | |
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 | 3 Months Ended | |||
Apr. 04, 2021 | Mar. 29, 2020 | Jan. 03, 2021 | Dec. 29, 2019 | |
Supplemental cash flow disclosures: | ||||
Interest paid on long-term debt | $ 1,723 | $ 941 | ||
Income tax payments (refunds), net | (9,157) | (1,073) | ||
Supplemental cash flow disclosures of non-cash investing and financing activities: | ||||
Accruals for capital expenditures | 2,116 | 2,161 | ||
Right-of-use assets obtained in exchange for lease liabilities: | ||||
Operating lease ROU assets | 4,493 | 11,193 | ||
Finance lease ROU assets | 0 | 33 | ||
Right-of-use assets and lease liabilities reduced for terminated leases: | ||||
Operating lease ROU assets | 1,864 | 0 | ||
Operating lease liabilities | 2,268 | 0 | ||
Cash and restricted cash reconciliation: | ||||
Cash | 59,016 | 4,009 | $ 50,035 | $ 13,413 |
Restricted cash | 3,837 | 0 | 3,584 | 0 |
Cash and restricted cash | $ 62,853 | $ 4,009 | $ 53,619 | $ 13,413 |