Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 18, 2020 | Jun. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-37425 | ||
Entity Registrant Name | WINGSTOP INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-3494862 | ||
Entity Address, Address Line One | 5501 LBJ Freeway | ||
Entity Address, Address Line Two | 5th Floor | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75240 | ||
City Area Code | 972 | ||
Local Phone Number | 686-6500 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | WING | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,800 | ||
Entity Common Stock, Shares Outstanding | 29,457,228 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the 2020 annual meeting of shareholders, which will be filed no later than 120 days after the close of the registrant’s fiscal year ended December 28, 2019, are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0001636222 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-28 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets | ||
Cash and cash equivalents | $ 12,849 | $ 12,493 |
Restricted Cash | 4,790 | 4,462 |
Accounts receivable, net | 5,175 | 5,764 |
Prepaid expenses and other current assets | 2,449 | 2,056 |
Advertising fund assets, restricted | 4,927 | 5,131 |
Total current assets | 30,190 | 29,906 |
Property and equipment, net | 27,842 | 8,338 |
Goodwill | 50,188 | 49,655 |
Trademarks | 32,700 | 32,700 |
Customer relationships, net | 16,448 | 18,240 |
Other non-current assets | 12,283 | 4,917 |
Total assets | 166,113 | 139,749 |
Current liabilities | ||
Accounts payable | 3,348 | 2,750 |
Other current liabilities | 21,454 | 16,201 |
Current portion of debt | 3,200 | 2,400 |
Advertising fund liabilities | 4,927 | 5,131 |
Liabilities, Current, Total | 32,929 | 26,482 |
Long-term debt, net | 307,669 | 309,374 |
Deferred revenues, net of current | 22,343 | 21,885 |
Deferred income tax liabilities, net | 4,485 | 4,866 |
Other non-current liabilities | 8,115 | 1,972 |
Total liabilities | 375,541 | 364,579 |
Commitments and contingencies (see Note 12) | ||
Stockholders' deficit | ||
Common stock, $0.01 par value; 100,000,000 shares authorized; 29,457,228 and 29,296,939 shares issued and outstanding as of December 28, 2019 and December 29, 2018, respectively | 295 | 293 |
Additional paid-in-capital | 552 | 1,036 |
Accumulated deficit | (210,275) | (226,159) |
Total stockholders' deficit | (209,428) | (224,830) |
Total liabilities and stockholders' deficit | 166,113 | 139,749 |
Customer relationships | ||
Current assets | ||
Customer relationships, net | $ 12,910 | $ 14,233 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 29,457,228 | 29,296,939 |
Common Stock, Shares, Outstanding | 29,457,228 | 29,296,939 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Revenue: | ||||
Advertising fees and related income | $ 55,932 | $ 34,484 | $ 30,174 | |
Total revenues | 199,676 | 153,181 | 133,319 | |
Costs and expenses: | ||||
Cost of sales (1) | [1] | 41,105 | 32,063 | 28,745 |
Advertising expenses | 52,891 | 33,699 | 32,427 | |
Selling, general and administrative | 57,295 | 44,579 | 34,898 | |
Depreciation and amortization | 5,484 | 4,313 | 3,376 | |
Total costs and expenses | 156,775 | 114,654 | 99,446 | |
Operating income | 42,901 | 38,527 | 33,873 | |
Interest expense, net | 17,136 | 10,123 | 5,131 | |
Other expense, net | 0 | 1,477 | 0 | |
Income before income tax expense | 25,765 | 26,927 | 28,742 | |
Income tax expense | 5,289 | 5,208 | 4,802 | |
Net income | $ 20,476 | $ 21,719 | $ 23,940 | |
Earnings per share | ||||
Basic (in usd per share) | $ 0.70 | $ 0.74 | $ 0.82 | |
Diluted (in usd per share) | $ 0.69 | $ 0.73 | $ 0.82 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Basic (in shares) | 29,415 | 29,231 | 29,025 | |
Diluted (in shares) | 29,670 | 29,587 | 29,424 | |
Dividends per share (in usd per share) | $ 0.40 | $ 6.54 | $ 0.14 | |
Franchise | ||||
Revenue: | ||||
Royalty revenue, franchise fees and other | $ 88,291 | $ 71,858 | $ 66,076 | |
Franchisor Owned Outlet | ||||
Revenue: | ||||
Total revenues | $ 55,453 | $ 46,839 | $ 37,069 | |
[1] | Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, and excludes depreciation and amortization, which are presented separately. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance (in shares) at Dec. 31, 2016 | 28,747,392 | |||
Balance at Dec. 31, 2016 | $ (81,430) | $ 287 | $ 1,194 | $ (82,911) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 23,940 | 23,940 | ||
Shares issued under stock plans, shares | 345,277 | |||
Shares issued under stock plans, value | 1,318 | $ 4 | 1,314 | |
Payments Related to Tax Withholding for Share-based Compensation | 0 | |||
Stock-based compensation expense | 1,851 | 1,851 | ||
Dividends paid | (4,097) | (4,097) | 0 | |
Balance (in shares) at Dec. 30, 2017 | 29,092,669 | |||
Balance at Dec. 30, 2017 | (58,418) | $ 291 | 262 | (58,971) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 21,719 | 21,719 | ||
Shares issued under stock plans, shares | 208,261 | |||
Shares issued under stock plans, value | 517 | $ 2 | 515 | |
Shares Paid for Tax Withholding for Share Based Compensation | (3,991) | |||
Payments Related to Tax Withholding for Share-based Compensation | (183) | (183) | ||
Stock-based compensation expense | 3,725 | 3,725 | ||
Dividends paid | $ (192,190) | (3,466) | (188,724) | |
Balance (in shares) at Dec. 29, 2018 | 29,296,939 | 29,296,939 | ||
Balance at Dec. 29, 2018 | $ (224,830) | $ 293 | 1,036 | (226,159) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 20,476 | 20,476 | ||
Shares issued under stock plans, shares | 176,201 | |||
Shares issued under stock plans, value | 689 | $ 2 | 687 | |
Shares Paid for Tax Withholding for Share Based Compensation | (15,912) | |||
Payments Related to Tax Withholding for Share-based Compensation | (1,149) | (1,149) | ||
Stock-based compensation expense | 6,974 | 6,974 | ||
Dividends paid | $ (11,742) | (8,145) | (3,597) | |
Balance (in shares) at Dec. 28, 2019 | 29,457,228 | 29,457,228 | ||
Balance at Dec. 28, 2019 | $ (209,428) | $ 295 | $ 552 | $ (210,275) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Operating activities | |||
Net income | $ 20,476 | $ 21,719 | $ 23,940 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 5,484 | 4,313 | 3,376 |
Deferred income taxes | (426) | (1,054) | (2,548) |
Stock-based compensation expense | 6,974 | 3,725 | 1,851 |
Amortization of debt issuance costs | 1,586 | 1,983 | 292 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 496 | (1,197) | (1,368) |
Prepaid expenses and other assets | 323 | (178) | (503) |
Advertising fund assets and liabilities, net | (449) | 1,657 | 386 |
Accounts payable and other current liabilities | 3,086 | 6,996 | (876) |
Deferred revenue | 881 | 977 | 3,052 |
Other non-current liabilities | 152 | (171) | (167) |
Cash provided by operating activities | 38,583 | 38,770 | 27,435 |
Investing activities | |||
Purchases of property and equipment | (22,486) | (3,982) | (2,535) |
Acquisition of restaurant from franchisee | (1,245) | (6,516) | (3,949) |
Cash used in investing activities | (23,731) | (10,498) | (6,484) |
Financing activities | |||
Proceeds from exercise of stock options | 689 | 517 | 1,318 |
Borrowings of long-term debt | 5,000 | 551,108 | 3,500 |
Repayments of long-term debt | (7,400) | (364,858) | (21,000) |
Payment of deferred financing costs | (15) | (9,571) | 0 |
Tax payments for restricted stock upon vesting | (1,149) | (183) | 0 |
Dividends paid | (11,742) | (190,737) | (4,070) |
Cash used in financing activities | (14,617) | (13,724) | (20,252) |
Net change in cash, cash equivalents, and restricted cash | 235 | 14,548 | 699 |
Cash, cash equivalents, and restricted cash at beginning of period | 20,940 | 6,392 | 5,693 |
Cash, cash equivalents, and restricted cash at end of period | 21,175 | 20,940 | 6,392 |
Supplemental information: | |||
Cash paid for interest | 16,929 | 7,601 | 4,842 |
Cash paid for taxes | $ 5,407 | $ 2,951 | $ 10,096 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | (1) Basis of Presentation and Summary of Significant Accounting Policies Overview Wingstop Inc., together with its consolidated subsidiaries (collectively, “Wingstop” or the “Company”), is in the business of franchising and operating Wingstop restaurants. As of December 28, 2019, 1,200 franchised restaurants were in operation domestically and 154 international franchised restaurants were in operation across nine countries. As of December 28, 2019, the Company owned and operated 31 restaurants. Summary of Significant Accounting Policies (a) Principles of Consolidation The accompanying consolidated financial statements include the accounts of Wingstop Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. (b) Fiscal Year End The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2019, 2018, and 2017 each consisted of 52 weeks. (c) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions, primarily related to long-lived asset (valuation), indefinite and finite lived intangible asset valuation, income taxes, leases, stock-based compensation, contingencies, and common stock equity valuations. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the period. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates. (d) Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income is the same as net income for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying consolidated financial statements. (e) Cash, Cash Equivalents, and Restricted Cash The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 28, 2019 and December 29, 2018, we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents. Restricted cash includes cash and cash equivalents held for future principal and interest payments as required by the Company's debt agreements. The Company also has Advertising fund restricted cash, which can only be used for activities that promote the Wingstop brand. Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of December 28, 2019 and December 29, 2018 were as follows (in thousands): December 28, 2019 December 29, 2018 Cash and cash equivalents $ 12,849 $ 12,493 Restricted cash 4,790 4,462 Restricted cash, included in Advertising fund assets, restricted 3,536 3,985 Total cash, cash equivalents, and restricted cash $ 21,175 $ 20,940 (f) Accounts Receivable Accounts receivable, net of allowance for doubtful accounts, consists primarily of accrued royalty fee receivables, collected weekly in arrears, and vendor rebates. Management determines the allowance for doubtful accounts based on historical losses and current economic conditions. On a continuing basis, management analyzes delinquent receivables, which are charged off against the existing allowance account when determined to be uncollectible. (g) Inventories Inventories, which consist of food and beverage products, paper goods and supplies, are valued at the lower of cost (first-in, first-out) or market. (h) Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Property and equipment is depreciated based on the straight-line method over the following estimated useful lives: Property and Equipment Estimated Useful Lives Building 40 years Leasehold and other improvements Lesser of the expected lease term or useful life Equipment, furniture and fixtures 3 to 7 years Computer software 3 years At the time property and equipment are retired, the asset and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in earnings. The Company expenses repair and maintenance costs that maintain the appearance and functionality of the restaurant but do not extend the useful life of any restaurant asset. Improvements to leased properties are depreciated over the shorter of their useful life or the lease term, which includes a fixed, non-cancelable lease term plus any reasonably assured renewal periods. (i) Impairment or Disposal of Long-Lived Assets Property and equipment and finite-life intangible assets are reviewed for impairment periodically and whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company’s assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual restaurant and requires judgment and an estimate of future restaurant generated cash flows. The Company’s estimates of fair values are based on the best information available and require the use of estimates, judgments, and projections. The Company did not record any impairment losses on long-lived assets in fiscal years 2019, 2018, or 2017. (j) Goodwill and Indefinite-Lived Intangible Assets The Company’s indefinite-lived intangible assets consist of goodwill and trademarks, which are not subject to amortization. On an annual basis (October 1 st of the fiscal year) and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, the Company reviews the recoverability of goodwill and indefinite-lived intangible assets. No indications of impairment were identified during fiscal years 2019, 2018, or 2017. It is possible that changes in circumstances or changes in management’s judgments, assumptions and estimates could result in an impairment charge of a portion or all of its goodwill or other intangible assets. (k) Revenue Recognition Revenues consist primarily of royalties, national advertising fund contributions, initial and renewal franchise fees, and upfront fees from development agreements and international territory agreements. These performance obligations under franchise agreements consist of (a) a franchise license, (b) pre-opening services, such as training, and (c) ongoing services, such as management of the national advertising fund contributions, development of training materials and menu items, and restaurant monitoring. These performance obligations are highly interrelated, so they are not considered to be individually distinct and therefore are accounted for as a single performance obligation, which is satisfied by providing a right to use our intellectual property over the term of each franchise agreement. Franchise fee, development fee and international territory fee payments received by the Company before the restaurant opens are recorded as deferred revenue in the Consolidated Balance Sheets. Continuing royalties, which are a percentage of net sales of the franchisee, are recognized as revenue when earned. The Company records food and beverage revenues from company-owned stores upon sale to the customer. The Company collects and remits sales, food and beverage, alcoholic beverage, and hospitality taxes on transactions with customers and reports such amounts under the net method in its Consolidated Statements of Operations. Accordingly, these taxes are not included in gross revenue. The Company records a liability in the period in which a gift card is sold. As gift cards are redeemed, the liability is reduced. When gift cards are redeemed at a franchisee-operated restaurant, the revenue and related administrative costs are recognized by the franchisee. The Company recognizes revenue and related administrative costs when gift cards are redeemed at Company-operated restaurants. (l) Consideration from Vendors The Company has entered into food and beverage supply agreements with certain major vendors. Pursuant to the terms of these arrangements, rebates are provided to the Company from the vendors based upon the dollar volume of purchases for Company-operated restaurants and franchised restaurants. Additionally, the Company receives certain incentives from vendors to sponsor its annual franchisee convention. These incentives are recognized as earned throughout the year and are classified as a reduction in Cost of sales with any consideration received in excess of the total expense of the vendor’s products included within Royalty revenue, franchise fees and other within the Consolidated Statements of Operations. The incentives recognized were approximately $10.6 million, $8.2 million, and $11.2 million, during fiscal years 2019, 2018, and 2017, respectively, of which $1.6 million, $1.2 million, and $0.9 million was classified as a reduction in Cost of sales during fiscal years 2019, 2018, and 2017, respectively. (m) Advertising Expenses The Company administers the Ad Fund, for which a percentage of gross sales is collected from Wingstop restaurant franchisees and company-owned restaurants to be used for various forms of advertising for the Wingstop brand. Under this program, franchisees contributed 4% of gross sales for fiscal years 2019, and 3% for fiscal years 2018 and 2017. The Company administers and directs the development of all advertising and promotion programs in the Ad Fund for which it collects advertising contributions in accordance with the provisions of its franchise agreements. The Company has a contractual obligation with regard to these advertising contributions. The Company consolidates and reports all assets and liabilities of the Ad Fund as restricted assets of the Ad Fund and liabilities of the Ad Fund within current assets and current liabilities, respectively, in the Consolidated Balance Sheets. The assets and liabilities of the Ad Fund consist primarily of cash, receivables, accrued expenses, other liabilities. Pursuant to the Company’s franchise agreements, use of Ad Fund contributions is restricted to advertising, public relations, merchandising, similar activities, and administrative expenses to increase sales and further enhance the public reputation of the Wingstop brand. The aforementioned administrative expenses may also include personnel expenses and allocated costs incurred by the Company that are directly associated with administering the Ad Fund, as outlined in the provisions of the applicable franchise agreements. The Company expenses the production costs of advertising in the period in which the advertising first occurs. All other advertising and promotional costs are expensed in the period incurred. When contributions to the Ad Fund exceed the related advertising expenses, advertising costs are accrued up to the amount of the related contributions. Ad Fund contributions and expenditures are reported on a gross basis in the Consolidated Statements of Operations, which are largely offsetting and therefore do not impact our reported net income in years when contributions to the Ad Fund exceed advertising expenses incurred. Administrative support services and compensation expenses of employees that provide services directly to the Ad Fund, are included in Selling, general and administrative expenses (“SG&A”) in the Consolidated Statements of Operations. Advertising expenses incurred by company-owned restaurants are included within Cost of sales in the Consolidated Statements of Operations. Company operated restaurants incurred advertising expenses of $2.9 million, $1.9 million, and $1.5 million in fiscal years 2019, 2018, and 2017, respectively. (n) Leases The Company determines whether an arrangement is a lease at inception and leases restaurants and office space under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, rent escalation clauses, and/or contingent rent provisions. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably certain at the inception of the lease. For purposes of measurement and amortization of the right-of-use asset and associated lease liability over the terms of the leases, the Company uses the date it takes possession of the leased space for construction purposes at the beginning of the lease term, which is generally two three (o) Stock-Based Compensation The Company measures stock-based compensation cost at fair value on the date of grant for all share-based awards and recognizes compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award. For performance awards, the Company recognizes expense in the period in which vesting becomes probable. The Company accounts for forfeitures as they occur. (p) Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities as well as tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. The Company files a consolidated federal income tax return including all of its subsidiaries. Significant judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s income tax expense. The Company assesses the income tax position and records the liabilities for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. (q) Business Segments The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. These reporting segments are as follows: franchise operations and company restaurant operations. Franchise segment The Franchise segment consists of our domestic and international franchise restaurants, which represent the majority of our system-wide restaurants. As of December 28, 2019, the franchise operations segment consisted of 1,354 restaurants operated by Wingstop franchisees in the United States and nine countries outside of the United States as compared to 1,223 franchised restaurants in operation as of December 29, 2018. Franchise operations revenue consists primarily of franchise royalty revenue, Ad Fund contributions, fees for the sale of franchise and development agreements, and international territory agreements. Additionally, vendor rebates received for system-wide volume purchases in excess of the total expense of the vendor’s products are recognized as revenue of franchise operations. Company Segment As of December 28, 2019, the Company segment consisted of 31 company-owned restaurants, located in the United States, as compared to 29 company-owned restaurants as of December 29, 2018. Company-owned restaurant sales consist primarily of food and beverage sales at company-operated restaurants. Company-owned restaurant expenses consist primarily of operating expenses at company-operated restaurants and include food, beverage, labor, benefits, utilities, rent, and other operating costs. Certain corporate related items are not allocated to the reportable segments and have historically consisted of transaction costs associated with debt refinancings and special dividends. The Company allocates selling, general and administrative expenses based on the relative support provided to each reportable segment. (r) Recent Accounting Pronouncements Recently adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) , as amended (“ASU 2016-02”). ASU 2016-02 amended the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new guidance also required additional disclosures about leases. The Company adopted the requirements of the new standard as of the first day of fiscal year 2019 using the modified retrospective approach without restating comparative periods. As part of our adoption, we elected the package of practical expedients, as well as the hindsight practical expedient, permitted under the new guidance, which, among other things, allowed the Company to continue utilizing historical classification of leases. In addition, we elected not to separate non-lease components for our real estate leases. The adoption of the new standard resulted in the recording of a right-of-use asset of approximately $8.5 million and lease liabilities of approximately $10.3 million, and had an immaterial impact on retained earnings as of the beginning of fiscal year 2019. The standard did not materially impact our Consolidated Statements of Operations and had no impact on cash flows. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | (2) Earnings Per Share Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities convertible into, or other contracts to issue, common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of the exercise and vesting of stock options and restricted stock units, respectively, determined using the treasury stock method. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Fiscal Year December 28, December 29, December 30, Basic weighted average shares outstanding 29,415 29,231 29,025 Dilutive shares 255 356 399 Diluted weighted average shares outstanding 29,670 29,587 29,424 We had approximately 3,000, 3,000, and 6,000 equity awards outstanding at December 28, 2019, December 29, 2018, and December 30, 2017, respectively, that were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive. |
Dividends (Notes)
Dividends (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Dividends [Abstract] | |
Dividends Disclosure [Text Block] | (3) Dividends The Company declared and paid dividends of $11.7 million, or $0.40 per common share, in fiscal year 2019, $192.2 million, or $6.54 per common share in fiscal year 2018, and $4.1 million, or $0.14 per common share in fiscal year 2017. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (4) Fair Value Measurements Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. Assets and liabilities are classified using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows: Level 1 - Unadjusted quoted prices for identical instruments traded in active markets. Level 2 - Observable market-based inputs or unobservable inputs corroborated by market data. Level 3 - Unobservable inputs reflecting management’s estimates and assumptions. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term nature. Fair value of debt is determined on a non-recurring basis, which results are summarized as follows (in thousands): Fair Value Hierarchy December 28, 2019 December 29, 2018 Carrying Value Fair Value Carrying Value Fair Value Securitized Financing Facility: 2018-1 Class A-2 Senior Secured Notes (1) Level 2 $ 317,600 $ 331,247 $ 320,000 $ 320,000 (1) The fair value of long-term debt was estimated using available market information. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 28, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, net | (5) Accounts Receivable, net Accounts receivables, net, consist of the following (in thousands): December 28, December 29, Vendor rebates receivable $ 2,530 $ 2,224 Royalties receivable, net 1,870 1,521 Gift card receivable 477 1,484 Other receivables 298 535 Accounts receivable, net $ 5,175 $ 5,764 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | (6) Property and Equipment Property and equipment, net consisted of the following (in thousands): December 28, December 29, Construction in progress $ 16,188 $ 1,962 Equipment, furniture and fixtures 15,568 11,192 Leasehold and other improvements 9,021 7,929 Land 2,828 — Property and equipment, gross 43,605 21,083 Less: accumulated depreciation (15,763) (12,745) Property and equipment, net $ 27,842 $ 8,338 Depreciation expense was $3.1 million, $2.1 million and $1.9 million for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. On June 19, 2019, the Company entered into an agreement to purchase an office building for a purchase price of $18.3 million, which closed in the third quarter of 2019 and was funded with cash on hand. The building will be used for the Company’s headquarters and is in Addison, Texas. The building is included in construction in process within Property and equipment, net on the Consolidated Balance Sheet and will begin depreciating when the build out of the headquarters is complete and the assets are ready for their intended use, which is estimated to be at the beginning of fiscal year 2021. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | (7) Intangible Assets and Goodwill The Company’s goodwill and other intangible assets arose from Wingstop’s acquisition of the equity interests of Wingstop Holdings, Inc. in April 2010, as well as the acquisition of restaurants from franchisees in 2018 and 2019. Goodwill has been allocated to two reporting units, company-owned restaurants and franchised restaurants and represents the excess of purchase consideration transferred for the respective reporting unit over the fair value of the business at the time of the acquisition. See Note 17 for the allocation of goodwill among the two reporting units. The following is a summary of goodwill balances and activity (in thousands): December 28, December 29, Balance, beginning of period $ 49,655 $ 46,557 Acquisition of restaurants 533 3,098 Balance, end of period $ 50,188 $ 49,655 Intangible assets, excluding goodwill, consisted of the following (in thousands): December 28, December 29, Weighted Average Amortization Period (in years) Intangible assets: Trademarks $ 32,700 $ 32,700 Indefinite-lived assets 32,700 32,700 Customer relationships 26,300 26,300 20.0 Franchise rights (1) 5,638 5,028 6.4 Proprietary software (1) 115 115 5.0 Noncompete agreements (1) 250 250 2.8 Less: accumulated amortization (15,855) (13,453) Definite-lived assets 16,448 18,240 17.4 Intangible assets, net $ 49,148 $ 50,940 (1) Included within Other non-current assets net of associated accumulated amortization within the Consolidated Balance Sheets. Amortization expense for definite-lived intangibles was $2.4 million, $2.2 million, and $1.5 million for fiscal years 2019, 2018, and 2017, respectively. Estimated amortization expense, principally related to customer relationships, for the five succeeding years and the aggregate thereafter is (in thousands): Fiscal year 2020 $ 2,186 Fiscal year 2021 2,026 Fiscal year 2022 1,870 Fiscal year 2023 1,760 Fiscal year 2024 1,594 Thereafter 7,012 Total $ 16,448 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets and Other Current Liabilities | 12 Months Ended |
Dec. 28, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Prepaid Expenses and Other Current Assets and Other Current Liabilities | (8) Prepaid Expenses and Other Current Assets and Other Current Liabilities Prepaid expenses and other current assets consisted of the following (in thousands): December 28, December 29, Prepaid expenses $ 1,347 $ 1,468 Federal income tax receivable 667 — Prepaid gift card expenses 120 289 Inventories 315 299 Total $ 2,449 $ 2,056 Other current liabilities consisted of the following (in thousands): December 28, December 29, Accrued payroll and bonuses $ 7,512 $ 5,183 Current portion of deferred revenues 2,622 2,343 Short term lease liability 1,806 — Gift card liability 1,758 2,782 Taxes payable 522 398 Other accrued liabilities 7,234 5,495 Total $ 21,454 $ 16,201 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes Income tax expense for the fiscal years 2019, 2018 and 2017 consists of the following (in thousands): Fiscal Year December 28, December 29, December 30, Current expense Federal $ 4,286 $ 4,932 $ 6,204 State 1,170 1,089 800 Foreign 259 241 346 Deferred expense (benefit) Federal (579) (946) (2,660) State 153 (108) 112 Income tax expense $ 5,289 $ 5,208 $ 4,802 A reconciliation of income tax at the U.S. federal statutory tax rate (using a statutory tax rate of 21%) to income tax expense for fiscal years 2019, 2018 and 2017 in dollars is as follows (in thousands): Fiscal Year December 28, December 29, December 30, Expected income tax expense at statutory rate $ 5,411 $ 5,655 $ 10,060 Tax Act impact on deferred taxes — — (3,647) Permanent differences (835) (1,462) (2,300) State tax expense, net of federal benefit 985 520 589 Foreign tax expense 259 241 347 Foreign tax credits (259) (241) (347) (Decrease) increase in unrecognized tax benefit (128) 322 114 Other (144) 173 (14) Income tax expense $ 5,289 $ 5,208 $ 4,802 The components of deferred tax assets (liabilities) are as follows (in thousands): December 28, 2019 December 29, 2018 Deferred tax assets: Deferred revenue $ 4,510 $ 4,470 Accrued bonus 262 276 Stock based compensation 776 735 Deferred rent 394 257 Intangible assets 99 118 Other 1,467 405 Net operating loss carryforwards and credits 869 571 Valuation allowance (577) (482) 7,800 6,350 Deferred tax liabilities: Intangible assets (10,820) (10,933) Property and equipment (1,465) (283) (12,285) (11,216) Net deferred tax liability $ (4,485) $ (4,866) The Company had a state net operating loss carry-forward of $23.3 million at December 28, 2019 and December 29, 2018. The state net operating loss carry forwards begin to expire in 2030. The Company had a valuation allowance of $577,000 and $482,000 against its deferred tax assets as of December 28, 2019 and December 29, 2018, respectively. In assessing whether a deferred tax asset will be realized, the Company considers whether it is more likely than not that some portion, or all of the deferred tax assets will not be realized. The Company considers the reversal of existing taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not we will realize a portion of the benefits of the federal and state deductible differences with the exception of $39,000 and $538,000, respectively. The Company files income tax returns, which are periodically audited by various federal and state jurisdictions. In fiscal year 2019 the Internal Revenue Service commenced an examination of the Company’s U.S. income tax return for fiscal years 2016 and 2017. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance as of December 31, 2016 $ 602 Additions for tax positions of prior years — Subtractions for tax positions of prior years — Additions for tax positions of current year 78 Subtractions for tax positions of current year — Balance as of December 30, 2017 680 Additions for tax positions of prior years 78 Subtractions for tax positions of prior years — Additions for tax positions of current year 155 Subtractions for tax positions of current year — Balance as of December 29, 2018 913 Additions for tax positions of prior years 187 Subtractions for tax positions of prior years (330) Additions for tax positions of current year 929 Subtractions for tax positions of current year — Balance as of December 28, 2019 $ 1,699 As of December 28, 2019 and December 29, 2018, the accrued interest and penalties on the unrecognized tax benefits were $316,000 and $258,000, respectively, excluding any related income tax benefits. The Company recorded accrued interest related to the unrecognized tax benefits and penalties as a component of the provision for income taxes recognized in the Consolidated Statement of Operations. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | (10) Debt Obligations Long-term debt consists of the following components (in thousands): December 28, 2019 December 29, 2018 2018-1 Class A-2 Senior Secured Notes $ 317,600 $ 320,000 Debt issuance costs, net of amortization (6,731) (8,226) Less: current portion of debt (3,200) (2,400) Long-term debt, net $ 307,669 $ 309,374 As of December 28, 2019, the scheduled principle payments on debt were as follows (in thousands): Fiscal year 2020 $ 3,200 Fiscal year 2021 3,200 Fiscal year 2022 3,200 Fiscal year 2023 308,000 Total $ 317,600 Securitized Financing Facility On November 14, 2018, the Company completed a recapitalization in which certain of the Company’s subsidiaries issued notes pursuant to an asset-backed securitization. The notes consisted of $320 million of Series 2018-1 4.970% Fixed Rate Senior Secured Notes, Class A-2 with an anticipated term of five years (the “Class A-2 Notes”). In connection with the issuance of the Class A-2 Notes, the Company also entered into a revolving financing facility of Series 2018-1 Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”), which permits borrowings of up to a maximum principal amount of $20 million, which may be used to issue letters of credit. A portion of the proceeds of the Class A-2 Notes was used to repay the $215 million of principal outstanding on the outstanding term loan and revolving credit facility and to pay related transaction fees. The additional net proceeds were used for general corporate purposes, which included a return of capital to the Company’s stockholders in 2018. No borrowings were outstanding under the Variable Funding Notes as of December 28, 2019 or December 29, 2018. The Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “Notes” and were issued in a securitization transaction pursuant to which certain of the Company’s domestic and foreign revenue-generating assets, consisting principally of franchise-related agreements and intellectual property, were contributed or otherwise transferred to the Issuer and certain other limited-purpose, bankruptcy-remote, wholly owned indirect subsidiaries of the Company that act as guarantors of the Notes and that have pledged substantially all of their assets. Interest and principal payments on the Class A-2 Notes are payable on a quarterly basis. The requirement to make such quarterly principal payments on the Class A-2 Notes is subject to certain financial conditions set forth in the indenture. The legal final maturity date of the Notes is in December of 2048, but, unless earlier prepaid to the extent permitted under the indenture, the anticipated repayment date of the Class A-2 Notes is December 2023. If the Issuer has not repaid or refinanced the Class A-2 Notes prior to the anticipated repayment date, additional interest will accrue on the Notes. The Variable Funding Notes accrue interest at a variable rate based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the London interbank offered rate for U.S. Dollars or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, in each case plus any applicable margin, as more fully set forth in the Variable Funding Note Purchase Agreement. There is a commitment fee on the unused portion of the Variable Funding Notes facility, which is 50 basis points based on the utilization under the Variable Funding Notes facility. As of December 28, 2019 and December 29, 2018, $4.0 million and $5.0 million, respectively, of letters of credit were outstanding against the Variable Funding Notes, which relate primarily to interest reserves required under the indenture. There were no amounts drawn down on the letters of credit as of December 28, 2019 or December 29, 2018. Total debt issuance costs incurred and capitalized in connection with the issuance of the Notes were $8.8 million. Previously capitalized financing costs of $1.5 million were expensed as a result of the refinancing in fiscal year 2018. The Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Issuer maintains specified reserve accounts to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Class A-2 Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, that the assets pledged as collateral for the Notes are in stated ways defective or ineffective, and (iv) covenants relating to recordkeeping, access to information, and similar matters. The Notes are also subject to customary rapid amortization events provided for in the indenture, including events tied to failure to maintain stated debt service coverage ratios, the sum of global gross sales for specified restaurants being below certain levels on certain measurement dates, certain change of control and manager termination events, an event of default, and the failure to repay or refinance the Class A-2 Notes on the applicable scheduled maturity date. The Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments. As of December 28, 2019, the Company was in compliance with all financial covenants. Senior credit facility In January 2018, the Company entered into an amended senior secured credit facility (the “2018 Facility”), which replaced its senior secured credit facility dated June 30, 2016 (the “2016 Facility”). The 2018 Facility included a term loan facility in an aggregate principal amount of $100 million and a revolving credit facility up to an aggregate principal amount of $150 million. The Company used the proceeds from the 2018 Facility to refinance $133.8 million of indebtedness under the 2016 Facility and to pay a special dividend of $93.1 million to its stockholders. Borrowings under the 2018 Facility bore interest, payable quarterly, at the Company’s option, at the base rate plus a margin (0.75% to 1.75%, dependent on the Company’s reported leverage ratio) or LIBOR plus a margin (1.75% to 2.75%, dependent on the Company’s reported leverage ratio). The 2018 Facility had a maturity date of January 2023. |
Leases, Codification Topic 842
Leases, Codification Topic 842 | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | (11) Leases The Company determines whether an arrangement is a lease at inception. The Company has operating leases for office and retail space, as well as equipment. Our leases have remaining terms of 0.8 years to 10.0 years, some of which include options to extend the lease term for up to ten years. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date in determining the present value of lease payments. We have lease agreements that contain both lease and non-lease components. For real estate leases, we account for lease components together with non-lease components (e.g., common-area maintenance). Components of lease expense are as follows (in thousands): Year Ended December 28, Operating lease cost (a) $ 2,113 Variable lease cost (b) 507 Total lease cost $ 2,620 (a) Includes short-term leases, which are immaterial. (b) Primarily related to adjustments for inflation, common area maintenance, and property tax. Supplemental cash flow information related to leases is as follows (dollar amounts in thousands): Year Ended December 28, Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 2,263 Non-cash activity: Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,352 Supplemental balance sheet information related to our operating leases is as follows: Balance Sheet Classification December 28, 2019 Right-of-use assets Other non-current assets $ 8,242 Current lease liabilities Other current liabilities 1,806 Non-current lease liabilities Other non-current liabilities 7,975 Weighted average lease term and discount rate information related to leases is as follows: Year Ended December 28, Weighted average remaining lease term of operating leases 5.4 years Weighted average discount rate of operating leases 4.77 % Maturities of lease liabilities by fiscal year are as follows (in thousands): Fiscal year 2020 $ 2,219 Fiscal year 2021 2,218 Fiscal year 2022 2,012 Fiscal year 2023 1,736 Fiscal year 2024 1,404 Thereafter 1,492 Total future minimum lease payments 11,081 Less: imputed interest (1,300) Total lease liabilities $ 9,781 As of December 29, 2018, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands): Fiscal year 2019 $ 2,181 Fiscal year 2020 2,214 Fiscal year 2021 2,005 Fiscal year 2022 1,800 Fiscal year 2023 1,523 Thereafter 2,145 Total $ 11,868 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (12) Commitments and Contingencies The Company is subject to legal proceedings, claims and liabilities, such as employment-related claims and other cases, which arise in the ordinary course of business and are generally covered by insurance. In the opinion of management, the amount of ultimate liability with respect to those actions should not have a material adverse impact on financial position, results of operations or cash flows. Many of the food products the Company purchases are subject to changes in the price and availability of food commodities, including chicken. The Company works with its suppliers and uses a mix of forward pricing protocols for certain items under which we agree with our supplier on fixed prices for deliveries at some time in the future, fixed pricing protocols under which we agree on a fixed price with our supplier for the duration of that protocol, and formula pricing protocols under which the prices we pay are based on a specified formula related to the prices of the goods, such as spot prices. The Company’s use of any forward pricing arrangements varies substantially from time to time and these arrangements tend to cover relatively short periods (i.e., typically twelve months or less). Such contracts are used in the normal purchases of our food |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | (13) Employee Benefit Plan The Company sponsors a 401(k) profit sharing plan for all employees who are eligible based upon age and length of service. The Company made matching contributions of approximately $594,000, $556,000 and $450,000 for fiscal years 2019, 2018 and 2017, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | (14) Stock-Based Compensation The Wingstop Inc. 2015 Omnibus Equity Incentive Plan (the "2015 Plan"), was adopted in June 2015 and is currently the only plan under which the Company currently grants awards. The 2015 Plan provides for the grant or award of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance unit awards, performance share awards, cash-based awards and other stock-based awards to employees, directors, and other eligible persons. As of December 28, 2019, there were approximately 1.7 million shares available for future grants under the 2015 Plan. Prior to the 2015 Plan, the Company granted awards under the 2010 Stock Option Plan. The options and restricted stock awards granted under the 2015 Plan are subject to either service-based or performance-based vesting. Service-based awards contain a service-based, or time-based, vesting provision. Performance-based options contain performance-based vesting provisions based on the Company meeting certain Adjusted EBITDA profitability targets or sales targets for the vesting period. In the event of a change in control of the Company (as defined in the 2015 Plan), unless otherwise determined by the board of directors or the Compensation Committee of the board of directors, each outstanding award will become fully vested immediately prior to the change in control and shall be exchanged for cash. Stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period of the grant). The Company recognized approximately $7.0 million, $3.7 million, and $1.9 million in stock compensation expense for fiscal years 2019, 2018, and 2017, respectively, with a corresponding increase to additional paid-in-capital. Stock compensation expense is included in Selling, general and administrative expenses in the Consolidated Statements of Operations. Stock Options The following table summarizes stock option activity (in thousands, except per share data): Stock Options Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding - December 29, 2018 236 $ 6.04 $ 13,848 4.8 Options granted — — Options exercised (98) 5.06 Options canceled (4) 26.21 Outstanding - December 28, 2019 134 $ 5.72 $ 10,801 3.8 The total grant-date fair value of stock options vested during each of the fiscal years 2019, 2018, and 2017 was $0.5 million, $0.5 million, and $1.0 million, respectively. The total intrinsic value of stock options exercised was $6.7 million, $7.6 million, and $8.1 million for fiscal years 2019, 2018, and 2017, respectively. During fiscal year 2019, there was a modification to certain awards resulting in additional compensation of $0.2 million. A summary of the status of non-vested options as of December 28, 2019 and the changes during the period then ended is presented below (in thousands, except per share data): Stock Options Weighted average grant-date fair value Non-vested options - December 29, 2018 59 $ 12.82 Granted — — Vested (38) 13.98 Forfeited (4) 29.33 Non-vested options - December 28, 2019 17 $ 10.20 As of December 28, 2019, there was $35.9 thousand of total unrecognized stock compensation expense related to non-vested stock options, which will be recognized over a weighted average period of less than one year. Restricted Stock Units and Performance Stock Units The following table summarizes activity related to restricted stock units and performance stock units (“PSUs”) (in thousands, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Performance Stock Units Weighted Average Grant Date Fair Value Outstanding - December 29, 2018 103 $ 36.18 130 $ 40.46 Units granted 47 68.40 86 71.22 Units vested (46) 39.79 (26) 44.15 Units canceled (22) 47.70 (21) 50.48 Outstanding - December 28, 2019 82 $ 52.73 169 $ 55.92 The fair value of restricted stock units and PSUs is based on the closing price on the date of grant. The restricted stock units granted during fiscal year 2019 vest over a three The Company granted 86,333 PSUs during fiscal year 2019 that are based on the outcome of certain performance criteria. Of the total PSUs granted, 46,333 are subject to a service condition and a performance vesting condition based on the achievement of certain Adjusted EBITDA targets, as defined by the 2015 Plan, over a performance period of one three ’ s stockholders during the performance period measured against the companies in the S&P 600 Restaurant Index (“TSR PSUs”). The TSR PSUs were valued based on a Monte Carlo simulation model to reflect the impact of the total stockholder return market condition, resulting in a grant-date fair value range of $0.00 to $179.27 per unit based on the outcome of the performance condition. The probability of satisfying a market condition is considered in the estimation of the grant-date fair value for TSR PSUs and the compensation cost is not reversed if the market condition is not achieved, provided the requisite service has been provided. As of December 28, 2019, total unrecognized compensation expense related to unvested PSUs was $5.6 million. Restricted Stock Awards The following table summarizes activity related to restricted stock awards (in thousands, except per share data): Restricted Stock Awards Weighted Average Grant Date Fair Value Outstanding - December 29, 2018 16 $ 36.02 Awards granted 4 88.12 Awards vested (8) 33.17 Awards canceled — — Outstanding - December 28, 2019 12 $ 54.81 The fair value of the non-vested restricted stock awards is based on the closing price on the date of grant. As of December 28, 2019, total unrecognized compensation expense related to unvested restricted stock awards was $0.5 million, which will be recognized over a weighted average period of approximately 1.4 years. |
Restaurant Acquisition (Notes)
Restaurant Acquisition (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | (15) Restaurant Acquisition On August 22, 2019, the Company acquired one existing restaurant from a franchisee. The total purchase price was $1.2 million, which was funded by cash flows from operations. The following table summarizes the final allocation of the purchase price to the estimated fair value of assets acquired and liabilities assumed at the date of the acquisition (in thousands): Purchase Price Allocation August 22, 2019 Acquisition Property and equipment $ 90 Reacquired franchise rights 610 Goodwill 533 Total purchase price $ 1,233 On February 19, 2018, April 16, 2018, and May 1, 2018, the Company acquired one existing Wingstop restaurant each from three separate franchisees. The total purchase prices were $1.9 million, $1.9 million, and $2.2 million, respectively, which were funded by cash flows from operations. The following table summarizes the final allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed at the date of the acquisition, inclusive of adjustments made during the measurement period (in thousands): Purchase Price Allocation February 19, 2018 April 16, 2018 May 1, 2018 Acquisition Acquisition Acquisition Working capital $ 4 $ 20 $ 7 Property and equipment 26 160 28 Reacquired franchise rights 541 1,277 887 Goodwill 1,331 458 1,309 Gift card liability (2) — — Total purchase price $ 1,900 $ 1,915 $ 2,231 During the fourth quarter of 2018, the Company acquired three existing Wingstop restaurants from a franchisee for a total purchase price of $0.5 million. The purchase price was allocated to property and equipment. The results of operations of these locations are included in our Consolidated Statements of Operations since the date of acquisition. The acquisitions were accounted for as business combinations. The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill and is attributable to the benefits expected as a result of the acquisition, including sales and growth opportunities. All of the goodwill from the acquisitions is expected to be deductible for federal income tax purposes. Pro-forma financial information of the combined entities is not presented due to the immaterial impact of the financial results of the acquired restaurants on our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | (16) Revenue from Contracts with Customers Revenue from contracts with customers consist primarily of royalties, Ad Fund contributions, initial and renewal franchise fees and upfront fees from development agreements and international territory agreements. Our performance obligations under franchise agreements consist of (a) a franchise license, (b) pre-opening services, such as training, and (c) ongoing services, such as management of the Ad Fund, development of training materials and menu items and restaurant monitoring. These performance obligations are highly interrelated so are not considered to be individually distinct and therefore are accounted for as a single performance obligation, which is satisfied by providing a right to use intellectual property over the term of each franchise agreement. Royalties, including franchisee contributions to the Ad Fund, are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Initial and renewal franchise fees are payable by the franchisee prior to the restaurant opening or at the time of a renewal of an existing franchise agreement. Our franchise agreement royalties, inclusive of Ad Fund contributions, represent sales-based royalties that are related entirely to our performance obligation under the franchise agreement and are recognized as franchised restaurant sales occur. Additionally, under ASC 606, initial and renewal franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement. Our performance obligation under development agreements and international territory agreements generally consists of an obligation to grant exclusive development rights over a stated term. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for development rights are apportioned to each franchised restaurant opened and accounted for as an initial franchise fee. The following table represents a disaggregation of revenue from contracts with customers for the fiscal years 2019, 2018, and 2017 (in thousands): Fiscal Year December 28, December 29, December 30, Royalty revenue $ 75,106 $ 61,882 $ 53,204 Advertising fees and related income 55,932 34,484 30,174 Franchise fees 4,087 2,924 2,535 Franchise fee, development fee, and international territory fee payments received by the Company are recorded as deferred revenue on the Consolidated Balance Sheet, which represents a contract liability. Deferred revenue is reduced as fees are recognized in revenue over the term of the franchise license for the respective restaurant. As the term of the franchise license is typically ten years, substantially all of the franchise fee revenue recognized in the current fiscal year was included in the deferred revenue balance as of December 29, 2018. Approximately $8.3 million and $9.2 million of deferred revenue as of December 28, 2019 and December 29, 2018, respectively, relates to restaurants that have not yet opened, so the fees are not yet being amortized. The weighted average remaining amortization period for deferred franchise and renewal fees related to open restaurants is 7.3 years. The Company did not have any material contract assets as of December 28, 2019. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | (17) Business Segments Information on segments and a reconciliation to income before taxes are as follows (in thousands): Fiscal Year December 28, December 29, December 30, Revenue: Franchise segment $ 144,223 $ 106,342 $ 96,250 Company segment 55,453 46,839 37,069 Total segment revenue $ 199,676 $ 153,181 $ 133,319 Segment Profit: Franchise segment $ 33,683 $ 30,645 $ 29,230 Company segment 9,218 10,303 4,643 Total segment profit 42,901 40,948 33,873 Corporate and other (1) — 2,421 — Interest expense, net 17,136 10,123 5,131 Other expense, net — 1,477 — Income before taxes $ 25,765 $ 26,927 $ 28,742 Depreciation and amortization: Franchise segment $ 3,870 $ 3,036 $ 2,220 Company segment 1,614 1,277 1,156 Total depreciation and amortization $ 5,484 $ 4,313 $ 3,376 Capital expenditures: Franchise segment $ 21,119 $ 2,930 $ 864 Company segment (2) 1,367 1,052 1,671 Total capital expenditures $ 22,486 $ 3,982 $ 2,535 (1) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of transaction costs associated with the refinancings of our credit agreement and payment of a special dividend. (2) Company segment excludes capital expenditures related to the acquisition of restaurants from franchisees (discussed in Note 15). Information on segment assets and a reconciliation to consolidated assets are as follows (in thousands): As of December 28, 2019 December 29, 2018 Segment assets: Franchise segment $ 117,690 $ 97,455 Company segment 25,564 19,841 Total segment assets 143,254 117,296 Corporate and other (3) 22,859 22,453 Total assets $ 166,113 $ 139,749 (3) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of cash and cash equivalents, Ad Fund restricted assets, right-of-use assets associated with our operating leases, and capitalized costs associated with the issuance of indebtedness. As of December 28, 2019 December 29, 2018 Segment goodwill: Franchise segment $ 39,930 $ 39,930 Company segment 10,258 9,725 Total goodwill $ 50,188 $ 49,655 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | (18) Quarterly Financial Data (unaudited) The following tables set forth certain unaudited consolidated financial information for each of the four quarters in 2019 and 2018 (in thousands, except per share data): Quarter Ended December 28, 2019 September 28, 2019 June 29, 2019 March 30, 2019 December 29, 2018 September 29, 2018 June 30, 2018 March 31, 2018 Total revenue $ 53,186 $ 49,875 $ 48,562 $ 48,053 $ 40,509 $ 38,246 $ 37,037 $ 37,389 Operating income 8,894 11,949 10,287 11,771 8,679 10,356 9,926 9,566 Net income 3,047 5,905 4,918 6,606 2,419 6,293 6,839 6,168 Earnings per share Basic $ 0.10 $ 0.20 $ 0.17 $ 0.23 $ 0.08 $ 0.21 $ 0.23 $ 0.21 Diluted $ 0.10 $ 0.20 $ 0.17 $ 0.22 $ 0.08 $ 0.21 $ 0.23 $ 0.21 Weighted average shares outstanding Basic 29,454 29,449 29,418 29,337 29,296 29,284 29,230 29,116 Diluted 29,709 29,696 29,667 29,637 29,620 29,584 29,528 29,503 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | (a) Principles of Consolidation The accompanying consolidated financial statements include the accounts of Wingstop Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Year End | (b) Fiscal Year End |
Use of Estimates | (c) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions, primarily related to long-lived asset (valuation), indefinite and finite lived intangible asset valuation, income taxes, leases, stock-based compensation, contingencies, and common stock equity valuations. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the period. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates. |
Comprehensive Income (Loss) | (d) Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income is the same as net income for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying consolidated financial statements. |
Cash, Cash Equivalents, and Restricted Cash | (e) Cash, Cash Equivalents, and Restricted Cash The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 28, 2019 and December 29, 2018, we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents. Restricted cash includes cash and cash equivalents held for future principal and interest payments as required by the Company's debt agreements. The Company also has Advertising fund restricted cash, which can only be used for activities that promote the Wingstop brand. Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of December 28, 2019 and December 29, 2018 were as follows (in thousands): December 28, 2019 December 29, 2018 Cash and cash equivalents $ 12,849 $ 12,493 Restricted cash 4,790 4,462 Restricted cash, included in Advertising fund assets, restricted 3,536 3,985 Total cash, cash equivalents, and restricted cash $ 21,175 $ 20,940 |
Accounts Receivable | (f) Accounts Receivable Accounts receivable, net of allowance for doubtful accounts, consists primarily of accrued royalty fee receivables, collected weekly in arrears, and vendor rebates. Management determines the allowance for doubtful accounts based on historical losses and current economic conditions. On a continuing basis, management analyzes delinquent receivables, which are charged off against the existing allowance account when determined to be uncollectible. |
Inventories | (g) Inventories Inventories, which consist of food and beverage products, paper goods and supplies, are valued at the lower of cost (first-in, first-out) or market. |
Property and Equipment | (h) Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Property and equipment is depreciated based on the straight-line method over the following estimated useful lives: Property and Equipment Estimated Useful Lives Building 40 years Leasehold and other improvements Lesser of the expected lease term or useful life Equipment, furniture and fixtures 3 to 7 years Computer software 3 years At the time property and equipment are retired, the asset and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in earnings. The Company expenses repair and maintenance costs that maintain the appearance and functionality of the restaurant but do not extend the useful life of any restaurant asset. Improvements to leased properties are depreciated over the shorter of their useful life or the lease term, which includes a fixed, non-cancelable lease term plus any reasonably assured renewal periods. |
Impairment or Disposal of Long-Lived Assets | (i) Impairment or Disposal of Long-Lived Assets Property and equipment and finite-life intangible assets are reviewed for impairment periodically and whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company’s assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual restaurant and requires judgment and an estimate of future restaurant generated cash flows. The Company’s estimates of fair values are based on the best information available and require the use of estimates, judgments, and projections. The Company did not record any impairment losses on long-lived assets in fiscal years 2019, 2018, or 2017. |
Goodwill and Indefinite-Lived Intangible Assets | (j) Goodwill and Indefinite-Lived Intangible Assets The Company’s indefinite-lived intangible assets consist of goodwill and trademarks, which are not subject to amortization. On an annual basis (October 1 st of the fiscal year) and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, the Company reviews the recoverability of goodwill and indefinite-lived intangible assets. No indications of impairment were identified during fiscal years 2019, 2018, or 2017. |
Revenue Recognition | (k) Revenue Recognition Revenues consist primarily of royalties, national advertising fund contributions, initial and renewal franchise fees, and upfront fees from development agreements and international territory agreements. These performance obligations under franchise agreements consist of (a) a franchise license, (b) pre-opening services, such as training, and (c) ongoing services, such as management of the national advertising fund contributions, development of training materials and menu items, and restaurant monitoring. These performance obligations are highly interrelated, so they are not considered to be individually distinct and therefore are accounted for as a single performance obligation, which is satisfied by providing a right to use our intellectual property over the term of each franchise agreement. Franchise fee, development fee and international territory fee payments received by the Company before the restaurant opens are recorded as deferred revenue in the Consolidated Balance Sheets. Continuing royalties, which are a percentage of net sales of the franchisee, are recognized as revenue when earned. The Company records food and beverage revenues from company-owned stores upon sale to the customer. The Company collects and remits sales, food and beverage, alcoholic beverage, and hospitality taxes on transactions with customers and reports such amounts under the net method in its Consolidated Statements of Operations. Accordingly, these taxes are not included in gross revenue. |
Consideration from Vendors | (l) Consideration from Vendors The Company has entered into food and beverage supply agreements with certain major vendors. Pursuant to the terms of these arrangements, rebates are provided to the Company from the vendors based upon the dollar volume of purchases for Company-operated restaurants and franchised restaurants. Additionally, the Company receives certain incentives from vendors to sponsor its annual franchisee convention. These incentives are recognized as earned throughout the year and are classified as a reduction in Cost of sales with any consideration received in excess of the total expense of the vendor’s products included within Royalty revenue, franchise fees and other within the Consolidated Statements of Operations. The incentives recognized were approximately $10.6 million, $8.2 million, and $11.2 million, during fiscal years 2019, 2018, and 2017, respectively, of which $1.6 million, $1.2 million, and $0.9 million was classified as a reduction in Cost of sales during fiscal years 2019, 2018, and 2017, respectively. |
Advertising Expenses | (m) Advertising Expenses The Company administers the Ad Fund, for which a percentage of gross sales is collected from Wingstop restaurant franchisees and company-owned restaurants to be used for various forms of advertising for the Wingstop brand. Under this program, franchisees contributed 4% of gross sales for fiscal years 2019, and 3% for fiscal years 2018 and 2017. The Company administers and directs the development of all advertising and promotion programs in the Ad Fund for which it collects advertising contributions in accordance with the provisions of its franchise agreements. The Company has a contractual obligation with regard to these advertising contributions. The Company consolidates and reports all assets and liabilities of the Ad Fund as restricted assets of the Ad Fund and liabilities of the Ad Fund within current assets and current liabilities, respectively, in the Consolidated Balance Sheets. The assets and liabilities of the Ad Fund consist primarily of cash, receivables, accrued expenses, other liabilities. Pursuant to the Company’s franchise agreements, use of Ad Fund contributions is restricted to advertising, public relations, merchandising, similar activities, and administrative expenses to increase sales and further enhance the public reputation of the Wingstop brand. The aforementioned administrative expenses may also include personnel expenses and allocated costs incurred by the Company that are directly associated with administering the Ad Fund, as outlined in the provisions of the applicable franchise agreements. The Company expenses the production costs of advertising in the period in which the advertising first occurs. All other advertising and promotional costs are expensed in the period incurred. When contributions to the Ad Fund exceed the related advertising expenses, advertising costs are accrued up to the amount of the related contributions. Ad Fund contributions and expenditures are reported on a gross basis in the Consolidated Statements of Operations, which are largely offsetting and |
Leases | (n) Leases two three |
Stock-Based Compensation | (o) Stock-Based Compensation |
Income Taxes | (p) Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities as well as tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. The Company files a consolidated federal income tax return including all of its subsidiaries. Significant judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s income tax expense. The Company assesses the income tax position and records the liabilities for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. |
Business Segments | (q) Business Segments The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. These reporting segments are as follows: franchise operations and company restaurant operations. Franchise segment The Franchise segment consists of our domestic and international franchise restaurants, which represent the majority of our system-wide restaurants. As of December 28, 2019, the franchise operations segment consisted of 1,354 restaurants operated by Wingstop franchisees in the United States and nine countries outside of the United States as compared to 1,223 franchised restaurants in operation as of December 29, 2018. Franchise operations revenue consists primarily of franchise royalty revenue, Ad Fund contributions, fees for the sale of franchise and development agreements, and international territory agreements. Additionally, vendor rebates received for system-wide volume purchases in excess of the total expense of the vendor’s products are recognized as revenue of franchise operations. Company Segment As of December 28, 2019, the Company segment consisted of 31 company-owned restaurants, located in the United States, as compared to 29 company-owned restaurants as of December 29, 2018. Company-owned restaurant sales consist primarily of food and beverage sales at company-operated restaurants. Company-owned restaurant expenses consist primarily of operating expenses at company-operated restaurants and include food, beverage, labor, benefits, utilities, rent, and other operating costs. |
Recent Accounting Pronouncements | (r) Recent Accounting Pronouncements Recently adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) , as amended (“ASU 2016-02”). ASU 2016-02 amended the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new guidance also required additional disclosures about leases. The Company adopted the requirements of the new standard as of the first day of fiscal year 2019 using the modified retrospective approach without restating comparative periods. As part of our adoption, we elected the package of practical expedients, as well as the hindsight practical expedient, permitted under the new guidance, which, among other things, allowed the Company to continue utilizing historical classification of leases. In addition, we elected not to separate non-lease components for our real estate leases. The adoption of the new standard resulted in the recording of a right-of-use asset of approximately $8.5 million and lease liabilities of approximately $10.3 million, and had an immaterial impact on retained earnings as of the beginning of fiscal year 2019. The standard did not materially impact our Consolidated Statements of Operations and had no impact on cash flows. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of December 28, 2019 and December 29, 2018 were as follows (in thousands): December 28, 2019 December 29, 2018 Cash and cash equivalents $ 12,849 $ 12,493 Restricted cash 4,790 4,462 Restricted cash, included in Advertising fund assets, restricted 3,536 3,985 Total cash, cash equivalents, and restricted cash $ 21,175 $ 20,940 |
Schedule of Property and Equipment | Property and equipment is depreciated based on the straight-line method over the following estimated useful lives: Property and Equipment Estimated Useful Lives Building 40 years Leasehold and other improvements Lesser of the expected lease term or useful life Equipment, furniture and fixtures 3 to 7 years Computer software 3 years Property and equipment, net consisted of the following (in thousands): December 28, December 29, Construction in progress $ 16,188 $ 1,962 Equipment, furniture and fixtures 15,568 11,192 Leasehold and other improvements 9,021 7,929 Land 2,828 — Property and equipment, gross 43,605 21,083 Less: accumulated depreciation (15,763) (12,745) Property and equipment, net $ 27,842 $ 8,338 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic Shares Outstanding to Diluted Shares Outstanding | Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Fiscal Year December 28, December 29, December 30, Basic weighted average shares outstanding 29,415 29,231 29,025 Dilutive shares 255 356 399 Diluted weighted average shares outstanding 29,670 29,587 29,424 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements, Nonrecurring | Fair value of debt is determined on a non-recurring basis, which results are summarized as follows (in thousands): Fair Value Hierarchy December 28, 2019 December 29, 2018 Carrying Value Fair Value Carrying Value Fair Value Securitized Financing Facility: 2018-1 Class A-2 Senior Secured Notes (1) Level 2 $ 317,600 $ 331,247 $ 320,000 $ 320,000 (1) The fair value of long-term debt was estimated using available market information. |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, net | Accounts receivables, net, consist of the following (in thousands): December 28, December 29, Vendor rebates receivable $ 2,530 $ 2,224 Royalties receivable, net 1,870 1,521 Gift card receivable 477 1,484 Other receivables 298 535 Accounts receivable, net $ 5,175 $ 5,764 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment is depreciated based on the straight-line method over the following estimated useful lives: Property and Equipment Estimated Useful Lives Building 40 years Leasehold and other improvements Lesser of the expected lease term or useful life Equipment, furniture and fixtures 3 to 7 years Computer software 3 years Property and equipment, net consisted of the following (in thousands): December 28, December 29, Construction in progress $ 16,188 $ 1,962 Equipment, furniture and fixtures 15,568 11,192 Leasehold and other improvements 9,021 7,929 Land 2,828 — Property and equipment, gross 43,605 21,083 Less: accumulated depreciation (15,763) (12,745) Property and equipment, net $ 27,842 $ 8,338 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a summary of goodwill balances and activity (in thousands): December 28, December 29, Balance, beginning of period $ 49,655 $ 46,557 Acquisition of restaurants 533 3,098 Balance, end of period $ 50,188 $ 49,655 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, excluding goodwill, consisted of the following (in thousands): December 28, December 29, Weighted Average Amortization Period (in years) Intangible assets: Trademarks $ 32,700 $ 32,700 Indefinite-lived assets 32,700 32,700 Customer relationships 26,300 26,300 20.0 Franchise rights (1) 5,638 5,028 6.4 Proprietary software (1) 115 115 5.0 Noncompete agreements (1) 250 250 2.8 Less: accumulated amortization (15,855) (13,453) Definite-lived assets 16,448 18,240 17.4 Intangible assets, net $ 49,148 $ 50,940 (1) Included within Other non-current assets net of associated accumulated amortization within |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense, principally related to customer relationships, for the five succeeding years and the aggregate thereafter is (in thousands): Fiscal year 2020 $ 2,186 Fiscal year 2021 2,026 Fiscal year 2022 1,870 Fiscal year 2023 1,760 Fiscal year 2024 1,594 Thereafter 7,012 Total $ 16,448 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): December 28, December 29, Prepaid expenses $ 1,347 $ 1,468 Federal income tax receivable 667 — Prepaid gift card expenses 120 289 Inventories 315 299 Total $ 2,449 $ 2,056 |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following (in thousands): December 28, December 29, Accrued payroll and bonuses $ 7,512 $ 5,183 Current portion of deferred revenues 2,622 2,343 Short term lease liability 1,806 — Gift card liability 1,758 2,782 Taxes payable 522 398 Other accrued liabilities 7,234 5,495 Total $ 21,454 $ 16,201 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense for the fiscal years 2019, 2018 and 2017 consists of the following (in thousands): Fiscal Year December 28, December 29, December 30, Current expense Federal $ 4,286 $ 4,932 $ 6,204 State 1,170 1,089 800 Foreign 259 241 346 Deferred expense (benefit) Federal (579) (946) (2,660) State 153 (108) 112 Income tax expense $ 5,289 $ 5,208 $ 4,802 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax at the U.S. federal statutory tax rate (using a statutory tax rate of 21%) to income tax expense for fiscal years 2019, 2018 and 2017 in dollars is as follows (in thousands): Fiscal Year December 28, December 29, December 30, Expected income tax expense at statutory rate $ 5,411 $ 5,655 $ 10,060 Tax Act impact on deferred taxes — — (3,647) Permanent differences (835) (1,462) (2,300) State tax expense, net of federal benefit 985 520 589 Foreign tax expense 259 241 347 Foreign tax credits (259) (241) (347) (Decrease) increase in unrecognized tax benefit (128) 322 114 Other (144) 173 (14) Income tax expense $ 5,289 $ 5,208 $ 4,802 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets (liabilities) are as follows (in thousands): December 28, 2019 December 29, 2018 Deferred tax assets: Deferred revenue $ 4,510 $ 4,470 Accrued bonus 262 276 Stock based compensation 776 735 Deferred rent 394 257 Intangible assets 99 118 Other 1,467 405 Net operating loss carryforwards and credits 869 571 Valuation allowance (577) (482) 7,800 6,350 Deferred tax liabilities: Intangible assets (10,820) (10,933) Property and equipment (1,465) (283) (12,285) (11,216) Net deferred tax liability $ (4,485) $ (4,866) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance as of December 31, 2016 $ 602 Additions for tax positions of prior years — Subtractions for tax positions of prior years — Additions for tax positions of current year 78 Subtractions for tax positions of current year — Balance as of December 30, 2017 680 Additions for tax positions of prior years 78 Subtractions for tax positions of prior years — Additions for tax positions of current year 155 Subtractions for tax positions of current year — Balance as of December 29, 2018 913 Additions for tax positions of prior years 187 Subtractions for tax positions of prior years (330) Additions for tax positions of current year 929 Subtractions for tax positions of current year — Balance as of December 28, 2019 $ 1,699 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following components (in thousands): December 28, 2019 December 29, 2018 2018-1 Class A-2 Senior Secured Notes $ 317,600 $ 320,000 Debt issuance costs, net of amortization (6,731) (8,226) Less: current portion of debt (3,200) (2,400) Long-term debt, net $ 307,669 $ 309,374 |
Schedule of Maturities of Long-term Debt | As of December 28, 2019, the scheduled principle payments on debt were as follows (in thousands): Fiscal year 2020 $ 3,200 Fiscal year 2021 3,200 Fiscal year 2022 3,200 Fiscal year 2023 308,000 Total $ 317,600 |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Lease Cost | Components of lease expense are as follows (in thousands): Year Ended December 28, Operating lease cost (a) $ 2,113 Variable lease cost (b) 507 Total lease cost $ 2,620 (a) Includes short-term leases, which are immaterial. (b) Primarily related to adjustments for inflation, common area maintenance, and property tax. Supplemental cash flow information related to leases is as follows (dollar amounts in thousands): Year Ended December 28, Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 2,263 Non-cash activity: Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,352 |
Schedule of supplemental balance sheet information related to leases | Supplemental balance sheet information related to our operating leases is as follows: Balance Sheet Classification December 28, 2019 Right-of-use assets Other non-current assets $ 8,242 Current lease liabilities Other current liabilities 1,806 Non-current lease liabilities Other non-current liabilities 7,975 |
Operating lease weighted average information | Weighted average lease term and discount rate information related to leases is as follows: Year Ended December 28, Weighted average remaining lease term of operating leases 5.4 years Weighted average discount rate of operating leases 4.77 % |
Maturities of lease liabilities | Maturities of lease liabilities by fiscal year are as follows (in thousands): Fiscal year 2020 $ 2,219 Fiscal year 2021 2,218 Fiscal year 2022 2,012 Fiscal year 2023 1,736 Fiscal year 2024 1,404 Thereafter 1,492 Total future minimum lease payments 11,081 Less: imputed interest (1,300) Total lease liabilities $ 9,781 |
Future minimum rental payments (ASC 840) | As of December 29, 2018, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands): Fiscal year 2019 $ 2,181 Fiscal year 2020 2,214 Fiscal year 2021 2,005 Fiscal year 2022 1,800 Fiscal year 2023 1,523 Thereafter 2,145 Total $ 11,868 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity (in thousands, except per share data): Stock Options Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding - December 29, 2018 236 $ 6.04 $ 13,848 4.8 Options granted — — Options exercised (98) 5.06 Options canceled (4) 26.21 Outstanding - December 28, 2019 134 $ 5.72 $ 10,801 3.8 |
Schedule of Nonvested Share Activity | A summary of the status of non-vested options as of December 28, 2019 and the changes during the period then ended is presented below (in thousands, except per share data): Stock Options Weighted average grant-date fair value Non-vested options - December 29, 2018 59 $ 12.82 Granted — — Vested (38) 13.98 Forfeited (4) 29.33 Non-vested options - December 28, 2019 17 $ 10.20 |
Schedule of Unvested Restricted Stock Units Roll Forward | The following table summarizes activity related to restricted stock units and performance stock units (“PSUs”) (in thousands, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Performance Stock Units Weighted Average Grant Date Fair Value Outstanding - December 29, 2018 103 $ 36.18 130 $ 40.46 Units granted 47 68.40 86 71.22 Units vested (46) 39.79 (26) 44.15 Units canceled (22) 47.70 (21) 50.48 Outstanding - December 28, 2019 82 $ 52.73 169 $ 55.92 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes activity related to restricted stock awards (in thousands, except per share data): Restricted Stock Awards Weighted Average Grant Date Fair Value Outstanding - December 29, 2018 16 $ 36.02 Awards granted 4 88.12 Awards vested (8) 33.17 Awards canceled — — Outstanding - December 28, 2019 12 $ 54.81 |
Restaurant Acquisition (Tables)
Restaurant Acquisition (Tables) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Business Combinations [Abstract] | ||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the final allocation of the purchase price to the estimated fair value of assets acquired and liabilities assumed at the date of the acquisition (in thousands): Purchase Price Allocation August 22, 2019 Acquisition Property and equipment $ 90 Reacquired franchise rights 610 Goodwill 533 Total purchase price $ 1,233 | The following table summarizes the final allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed at the date of the acquisition, inclusive of adjustments made during the measurement period (in thousands): Purchase Price Allocation February 19, 2018 April 16, 2018 May 1, 2018 Acquisition Acquisition Acquisition Working capital $ 4 $ 20 $ 7 Property and equipment 26 160 28 Reacquired franchise rights 541 1,277 887 Goodwill 1,331 458 1,309 Gift card liability (2) — — Total purchase price $ 1,900 $ 1,915 $ 2,231 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table represents a disaggregation of revenue from contracts with customers for the fiscal years 2019, 2018, and 2017 (in thousands): Fiscal Year December 28, December 29, December 30, Royalty revenue $ 75,106 $ 61,882 $ 53,204 Advertising fees and related income 55,932 34,484 30,174 Franchise fees 4,087 2,924 2,535 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information on segments and a reconciliation to income before taxes are as follows (in thousands): Fiscal Year December 28, December 29, December 30, Revenue: Franchise segment $ 144,223 $ 106,342 $ 96,250 Company segment 55,453 46,839 37,069 Total segment revenue $ 199,676 $ 153,181 $ 133,319 Segment Profit: Franchise segment $ 33,683 $ 30,645 $ 29,230 Company segment 9,218 10,303 4,643 Total segment profit 42,901 40,948 33,873 Corporate and other (1) — 2,421 — Interest expense, net 17,136 10,123 5,131 Other expense, net — 1,477 — Income before taxes $ 25,765 $ 26,927 $ 28,742 Depreciation and amortization: Franchise segment $ 3,870 $ 3,036 $ 2,220 Company segment 1,614 1,277 1,156 Total depreciation and amortization $ 5,484 $ 4,313 $ 3,376 Capital expenditures: Franchise segment $ 21,119 $ 2,930 $ 864 Company segment (2) 1,367 1,052 1,671 Total capital expenditures $ 22,486 $ 3,982 $ 2,535 (1) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of transaction costs associated with the refinancings of our credit agreement and payment of a special dividend. (2) Company segment excludes capital expenditures related to the acquisition of restaurants from franchisees (discussed in Note 15). Information on segment assets and a reconciliation to consolidated assets are as follows (in thousands): As of December 28, 2019 December 29, 2018 Segment assets: Franchise segment $ 117,690 $ 97,455 Company segment 25,564 19,841 Total segment assets 143,254 117,296 Corporate and other (3) 22,859 22,453 Total assets $ 166,113 $ 139,749 (3) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of cash and cash equivalents, Ad Fund restricted assets, right-of-use assets associated with our operating leases, and capitalized costs associated with the issuance of indebtedness. As of December 28, 2019 December 29, 2018 Segment goodwill: Franchise segment $ 39,930 $ 39,930 Company segment 10,258 9,725 Total goodwill $ 50,188 $ 49,655 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables set forth certain unaudited consolidated financial information for each of the four quarters in 2019 and 2018 (in thousands, except per share data): Quarter Ended December 28, 2019 September 28, 2019 June 29, 2019 March 30, 2019 December 29, 2018 September 29, 2018 June 30, 2018 March 31, 2018 Total revenue $ 53,186 $ 49,875 $ 48,562 $ 48,053 $ 40,509 $ 38,246 $ 37,037 $ 37,389 Operating income 8,894 11,949 10,287 11,771 8,679 10,356 9,926 9,566 Net income 3,047 5,905 4,918 6,606 2,419 6,293 6,839 6,168 Earnings per share Basic $ 0.10 $ 0.20 $ 0.17 $ 0.23 $ 0.08 $ 0.21 $ 0.23 $ 0.21 Diluted $ 0.10 $ 0.20 $ 0.17 $ 0.22 $ 0.08 $ 0.21 $ 0.23 $ 0.21 Weighted average shares outstanding Basic 29,454 29,449 29,418 29,337 29,296 29,284 29,230 29,116 Diluted 29,709 29,696 29,667 29,637 29,620 29,584 29,528 29,503 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Overview (Details) | 12 Months Ended | ||
Dec. 28, 2019countryrestaurant | Dec. 29, 2018restaurant | Dec. 30, 2017 | |
Franchisor Disclosure [Line Items] | |||
Fiscal period duration | 364 days | 364 days | 364 days |
Non-US | |||
Franchisor Disclosure [Line Items] | |||
Number of countries in which the entity operates | country | 9 | ||
Franchised Units | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 1,354 | 1,223 | |
Franchised Units | United States | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 1,200 | ||
Franchised Units | Non-US | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 154 | ||
Entity Operated Units | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | 31 | 29 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 12,849 | $ 12,493 | ||
Restricted Cash | 4,790 | 4,462 | ||
Restricted cash, included in Advertising fund assets, restricted | 3,536 | 3,985 | ||
Total cash, cash equivalents, and restricted cash | $ 21,175 | $ 20,940 | $ 6,392 | $ 5,693 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property and Equipment [Line Items] | |||
Impairment of Long-Lived Assets | $ 0 | $ 0 | $ 0 |
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Equipment, furniture and fixtures | Minimum | |||
Property and Equipment [Line Items] | |||
Equipment, furniture and fixtures useful life | 3 years | ||
Equipment, furniture and fixtures | Maximum | |||
Property and Equipment [Line Items] | |||
Equipment, furniture and fixtures useful life | 7 years | ||
Computer software | |||
Property and Equipment [Line Items] | |||
Computer software useful life | 3 years | ||
Building | |||
Property and Equipment [Line Items] | |||
Equipment, furniture and fixtures useful life | 40 years |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Consideration from Vendors (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Franchisor Disclosure [Line Items] | |||
Incentives From Vendors Recognized | $ 10.6 | $ 8.2 | $ 11.2 |
Cost of Sales | |||
Franchisor Disclosure [Line Items] | |||
Incentives From Vendors Recognized | $ 1.6 | $ 1.2 | $ 0.9 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Franchisor Disclosure [Line Items] | |||
Percentage of revenue collected for advertising fund | 4.00% | 3.00% | 3.00% |
Advertising expenses | $ 52,891 | $ 33,699 | $ 32,427 |
Cost of Sales | |||
Franchisor Disclosure [Line Items] | |||
Advertising expenses | $ 2,900 | $ 1,900 | $ 1,500 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 30, 2018 | |
Operating Leased Assets [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 8,242 | |
Total lease liabilities | $ 9,781 | |
Accounting Standards Update 2016-02 | ||
Operating Leased Assets [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 8,500 | |
Total lease liabilities | $ 10,300 | |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Possession period before restaurant's opening date | 2 months | |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Possession period before restaurant's opening date | 3 months |
Basis of Presentation and Sig_9
Basis of Presentation and Significant Accounting Policies - Business Segments (Details) | Dec. 28, 2019countryrestaurant | Dec. 29, 2018restaurant |
Franchised Units | ||
Segment Reporting Information [Line Items] | ||
Number of restaurants | 1,354 | 1,223 |
Entity Operated Units | ||
Segment Reporting Information [Line Items] | ||
Number of restaurants | 31 | 29 |
Non-US | ||
Segment Reporting Information [Line Items] | ||
Number of countries in which the entity operates | country | 9 | |
Non-US | Franchised Units | ||
Segment Reporting Information [Line Items] | ||
Number of restaurants | 154 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Basic weighted average shares outstanding | 29,454 | 29,449 | 29,418 | 29,337 | 29,296 | 29,284 | 29,230 | 29,116 | 29,415 | 29,231 | 29,025 |
Dilutive shares | 255 | 356 | 399 | ||||||||
Diluted weighted average number of common shares (in shares) | 29,709 | 29,696 | 29,667 | 29,637 | 29,620 | 29,584 | 29,528 | 29,503 | 29,670 | 29,587 | 29,424 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | 3 | 6 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 18, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | Jun. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Dividends Payable [Line Items] | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.09 | $ 0.07 | $ 0.07 | $ 0.40 | $ 6.54 | $ 0.14 | |
Dividends, Cash | $ 11,700 | $ 192,200 | $ 4,100 | ||||
Subsequent Event | |||||||
Dividends Payable [Line Items] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.11 | ||||||
Dividends Payable, Current | $ 3,200 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Nov. 14, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
2018-1 Class A-2 Senior Secured Notes | $ 317,600 | $ 320,000 | $ 320,000 | |
Nonrecurring | Level 2 | Reported Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
2018-1 Class A-2 Senior Secured Notes | 317,600 | 320,000 | ||
Nonrecurring | Level 2 | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans Payable, Fair Value Disclosure | [1] | $ 331,247 | $ 320,000 | |
[1] | The fair value of long-term debt was estimated using available market information. |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 5,175 | $ 5,764 |
Vendor rebates receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 2,530 | 2,224 |
Royalties receivable, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 1,870 | 1,521 |
Gift card receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 477 | 1,484 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 298 | $ 535 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Jun. 19, 2019 | |
Property and Equipment [Line Items] | ||||
Property and equipment, gross | $ 43,605 | $ 21,083 | ||
Less: accumulated depreciation | (15,763) | (12,745) | ||
Property and equipment, net | 27,842 | 8,338 | ||
Depreciation | 3,100 | 2,100 | $ 1,900 | |
Construction in progress | ||||
Property and Equipment [Line Items] | ||||
Property and equipment, gross | 16,188 | 1,962 | ||
Equipment, furniture and fixtures | ||||
Property and Equipment [Line Items] | ||||
Property and equipment, gross | 15,568 | 11,192 | ||
Leasehold and other improvements | ||||
Property and Equipment [Line Items] | ||||
Property and equipment, gross | 9,021 | 7,929 | ||
Land | ||||
Property and Equipment [Line Items] | ||||
Property and equipment, gross | $ 2,828 | $ 0 | ||
Land and Building [Member] | ||||
Property and Equipment [Line Items] | ||||
Purchase Price | $ 18,300 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Goodwill (Details) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019USD ($)reporting_unit | Dec. 29, 2018USD ($) | |
Goodwill [Line Items] | ||
Number of reporting units | reporting_unit | 2 | |
Goodwill balance, beginning of period | $ 49,655 | $ 46,557 |
Goodwill balance, end of period | 50,188 | 49,655 |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Goodwill [Line Items] | ||
Acquisition of restaurants | $ 533 | $ 3,098 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Intangible Assets Excluding Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | ||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived assets | $ 32,700 | $ 32,700 | |
Finite-Lived Intangible Assets [Line Items] | |||
Less: accumulated amortization | (15,855) | (13,453) | |
Definite-lived assets | $ 16,448 | 18,240 | |
Weighted Average Amortization Period (in years) | 17 years 4 months 24 days | ||
Intangible assets, net | $ 49,148 | 50,940 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived assets, gross | 26,300 | 26,300 | |
Definite-lived assets | $ 12,910 | 14,233 | |
Weighted Average Amortization Period (in years) | 20 years | ||
Franchise rights (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 6 years 4 months 24 days | ||
Proprietary software (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 5 years | ||
Noncompete agreements (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (in years) | 2 years 9 months 18 days | ||
Trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived assets | $ 32,700 | 32,700 | |
Other non-current assets | Franchise rights (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived assets, gross | [1] | 5,638 | 5,028 |
Other non-current assets | Proprietary software (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived assets, gross | [1] | 115 | 115 |
Other non-current assets | Noncompete agreements (1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived assets, gross | [1] | $ 250 | $ 250 |
[1] | Included within Other non-current assets net of associated accumulated amortization within the Consolidated Balance Sheets. |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 2,400 | $ 2,200 | $ 1,500 |
Fiscal year 2020 | 2,186 | ||
Fiscal year 2021 | 2,026 | ||
Fiscal year 2022 | 1,870 | ||
Fiscal year 2023 | 1,760 | ||
Fiscal year 2024 | 1,594 | ||
Thereafter | 7,012 | ||
Total | $ 16,448 | $ 18,240 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets and Other Current Liabilities - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 1,347 | $ 1,468 |
Federal income tax receivable | 667 | 0 |
Prepaid gift card expenses | 120 | 289 |
Inventories | 315 | 299 |
Total | $ 2,449 | $ 2,056 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets and Other Current Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued payroll and bonuses | $ 7,512 | $ 5,183 |
Current portion of deferred revenues | 2,622 | 2,343 |
Short term lease liability | 1,806 | 0 |
Gift card liability | 1,758 | 2,782 |
Taxes payable | 522 | 398 |
Other accrued liabilities | 7,234 | 5,495 |
Total | $ 21,454 | $ 16,201 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current expense | |||
Federal | $ 4,286 | $ 4,932 | $ 6,204 |
State | 1,170 | 1,089 | 800 |
Foreign | 259 | 241 | 346 |
Deferred expense (benefit) | |||
Federal | (579) | (946) | (2,660) |
State | 153 | (108) | 112 |
Income tax expense | $ 5,289 | $ 5,208 | $ 4,802 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% |
Expected income tax expense at statutory rate | $ 5,411 | $ 5,655 | $ 10,060 |
Tax Act impact on deferred taxes | 0 | 0 | (3,647) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | (835) | (1,462) | (2,300) |
State tax expense, net of federal benefit | 985 | 520 | 589 |
Foreign tax expense | 259 | 241 | 347 |
Foreign tax credits | (259) | (241) | (347) |
(Decrease) increase in unrecognized tax benefit | (128) | 322 | 114 |
Other | (144) | 173 | (14) |
Income tax expense | $ 5,289 | $ 5,208 | $ 4,802 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred tax assets: | ||
Deferred revenue | $ 4,510 | $ 4,470 |
Accrued bonus | 262 | 276 |
Stock based compensation | 776 | 735 |
Deferred rent | 394 | 257 |
Intangible assets | 99 | 118 |
Other | 1,467 | 405 |
Net operating loss carryforwards and credits | 869 | 571 |
Valuation allowance | (577) | (482) |
Deferred tax assets, net of valuation allowance | 7,800 | 6,350 |
Deferred tax liabilities: | ||
Intangible assets | (10,820) | (10,933) |
Property and equipment | (1,465) | (283) |
Deferred tax liabilities | (12,285) | (11,216) |
Deferred tax liabilities, net | $ (4,485) | $ (4,866) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | $ (577) | $ (482) |
State and Local Jurisdiction | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforward | 23,300 | $ 23,300 |
Valuation allowance | (538) | |
Domestic Tax Authority | ||
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | $ (39) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | $ 913 | $ 680 | $ 602 |
Additions for tax positions of prior years | 187 | 78 | 0 |
Subtractions for tax positions of prior years | (330) | 0 | 0 |
Additions for tax positions of current year | 929 | 155 | 78 |
Subtractions for tax positions of current year | 0 | 0 | 0 |
Unrecognized tax benefits, end of period | 1,699 | 913 | $ 680 |
Accrued interest and penalties on unrecognized tax benefits | $ 316 | $ 258 |
Debt Obligations - Components o
Debt Obligations - Components of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Nov. 14, 2018 |
Debt Disclosure [Abstract] | |||
2018-1 Class A-2 Senior Secured Notes | $ 317,600 | $ 320,000 | $ 320,000 |
Debt issuance costs, net of amortization | (6,731) | (8,226) | |
Current portion of debt | (3,200) | (2,400) | |
Long-term debt, net | $ 307,669 | $ 309,374 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Maturities (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Debt Disclosure [Abstract] | |
Fiscal year 2020 | $ 3,200 |
Fiscal year 2021 | 3,200 |
Fiscal year 2022 | 3,200 |
Fiscal year 2023 | 308,000 |
Long-term Debt, Total | $ 317,600 |
Debt Obligations - Securitized
Debt Obligations - Securitized Financing Facility (Details) - USD ($) $ in Thousands | Nov. 14, 2018 | Jan. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Disclosure [Abstract] | ||||
2018-1 Class A-2 Senior Secured Notes | $ 320,000 | $ 317,600 | $ 320,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.97% | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000 | |||
Repayments of Lines of Credit | 215,000 | |||
Letters of Credit Outstanding, Amount | 4,000 | $ 5,000 | ||
Debt issuance cost | 8,800 | $ 1,000 | ||
Previously capitalized financing costs, expensed | 1,500 | 200 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 16,000 | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||
Debt issuance costs, capitalized | $ 8,800 | $ 800 |
Debt Obligations - Senior Secur
Debt Obligations - Senior Secured Credit Facility (Details) - USD ($) | Nov. 14, 2018 | Feb. 14, 2018 | Jan. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||||||
Dividends paid | $ (93,100,000) | $ (11,742,000) | $ (190,737,000) | $ (4,070,000) | ||
Debt Issuance, Accounted for as a Modification | $ 202,500,000 | |||||
Debt Issuance, Accounted for as New Debt | 47,500,000 | |||||
Debt issuance cost | $ 8,800,000 | 1,000,000 | ||||
Previously capitalized financing costs, expensed | 1,500,000 | 200,000 | ||||
Debt issuance costs, capitalized | $ 8,800,000 | 800,000 | ||||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | 100,000,000 | |||||
Repayments of Secured Debt | $ 133,800,000 | |||||
Secured Debt | Minimum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||
Secured Debt | Minimum | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||
Secured Debt | Maximum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||
Secured Debt | Maximum | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 150,000,000 |
Lease Cost (Details)
Lease Cost (Details) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019USD ($) | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost (a) | $ 2,113 | [1] |
Variable lease cost (b) | 507 | [2] |
Total lease cost | 2,620 | |
Cash paid for amounts included in the measurement of lease liabilities | 2,263 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,352 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 9 months 18 days | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 10 years | |
Lessee, Operating Lease, Renewal Term | 10 years | |
[1] | Includes short-term leases, which are immaterial. | |
[2] | Primarily related to adjustments for inflation, common area maintenance, and property tax. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Leases [Abstract] | ||
Right-of-use assets | $ 8,242 | |
Current lease liabilities | 1,806 | $ 0 |
Non-current lease liabilities | $ 7,975 |
Weighted Average Information (D
Weighted Average Information (Details) | Dec. 28, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term of operating leases | 5 years 4 months 24 days |
Weighted average discount rate of operating leases | 4.77% |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Leases [Abstract] | |
Fiscal year 2020 | $ 2,219 |
Fiscal year 2021 | 2,218 |
Fiscal year 2022 | 2,012 |
Fiscal year 2023 | 1,736 |
Fiscal year 2024 | 1,404 |
Thereafter | 1,492 |
Total future minimum lease payments | 11,081 |
Less: imputed interest | 1,300 |
Total lease liabilities | $ 9,781 |
Future Minimum Lease Payments (
Future Minimum Lease Payments (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
Fiscal year 2019 | $ 2,181 |
Fiscal year 2020 | 2,214 |
Fiscal year 2021 | 2,005 |
Fiscal year 2022 | 1,800 |
Fiscal year 2023 | 1,523 |
Thereafter | 2,145 |
Total | $ 11,868 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Retirement Benefits [Abstract] | |||
Matching contributions | $ 594 | $ 556 | $ 450 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Plan (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of stock options, vested | $ 500,000 | $ 500,000 | $ 1,000,000 |
Intrinsic value of stock options | 6,700,000 | 7,600,000 | 8,100,000 |
Stock-based compensation expense, unrecognized | 35,900 | ||
Additional Paid-In Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 7,000,000 | $ 3,700,000 | $ 1,900,000 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Modification, Incremental Compensation Cost | $ 200,000 | ||
Stock-based compensation expense, recognition period | 2 months 12 days | ||
2015 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants (in shares) | 1.7 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Stock options outstanding (in shares) | 236 | |
Stock options granted (in shares) | 0 | |
Stock options exercised (in shares) | (98) | |
Stock options canceled (in shares) | (4) | |
Stock options outstanding (in shares) | 134 | 236 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Stock options outstanding, weighted average exercise price (in usd per share) | $ 6.04 | |
Stock options granted, weighted average exercise price (in usd per share) | 0 | |
Stock options exercised, weighted average exercise price (in usd per share) | 5.06 | |
Stock options canceled, weighted average exercise price (in usd per share) | 26.21 | |
Stock options outstanding, weighted average exercise price (in usd per share) | $ 5.72 | $ 6.04 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Stock options outstanding, aggregate intrinsic value, beginning of year | $ 13,848 | |
Stock options outstanding, aggregate intrinsic value, end of year | $ 10,801 | $ 13,848 |
Stock options outstanding, weighted average remaining term | 3 years 9 months 18 days | 4 years 9 months 18 days |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-vested Shares (Details) shares in Thousands | 12 Months Ended |
Dec. 28, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested shares at beginning of year (in shares) | shares | 59 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (38) |
Forfeited (in shares) | shares | (4) |
Non-vested shares at beginning of year (in shares) | shares | 17 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested shares at beginning of year (in usd per share) | $ / shares | $ 12.82 |
Granted (in usd per share) | $ / shares | 0 |
Vested (in usd per share) | $ / shares | 13.98 |
Forfeited (in usd per share) | $ / shares | 29.33 |
Non-vested shares at beginning of year (in usd per share) | $ / shares | $ 10.20 |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Units and Performance Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Units outstanding | 82,000 | 103,000 |
Units granted | 47,000 | |
Units vested | (46,000) | |
Units canceled | (22,000) | |
Performance Units, weighted average grant date fair value | $ 52.73 | $ 36.18 |
Units granted, weighted average grant date fair value | 68.40 | |
Units vested, weighted average grant date fair value | 39.79 | |
Units canceled, weighted average grant date fair value | $ 47.70 | |
Performance units, service period | 3 years | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 2,800 | |
Stock-based compensation expense, recognition period | 1 year 6 months | |
Award Modification, Incremental Compensation Cost | $ 700 | |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Units outstanding | 169,000 | 130,000 |
Units granted | 86,333 | |
Units vested | (26,000) | |
Units canceled | (21,000) | |
Performance Units, weighted average grant date fair value | $ 55.92 | $ 40.46 |
Units granted, weighted average grant date fair value | 71.22 | |
Units vested, weighted average grant date fair value | 44.15 | |
Units canceled, weighted average grant date fair value | $ 50.48 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 5,600 | |
PSUs based on EBITDA targets | Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted | 46,333 | |
PSUs based on EBITDA targets | Performance Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance units, service period | 1 year | |
Performance Units, vesting percentage | 0.00% | |
PSUs based on EBITDA targets | Performance Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance units, service period | 3 years | |
Performance Units, vesting percentage | 100.00% | |
PSUs based on new sales growth | Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted | 15,290 | |
PSUs based on new sales growth | Performance Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted, weighted average grant date fair value | $ 0 | |
PSUs based on new sales growth | Performance Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted, weighted average grant date fair value | $ 179.27 | |
Performance Units, vesting percentage | 500.00% | |
PSUs based on operational targets | Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted | 40,000 | |
PSUs based on operational targets | Performance Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Units, vesting percentage | 0.00% | |
PSUs based on operational targets | Performance Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Units, vesting percentage | 100.00% |
Stock-Based Compensation Rest_2
Stock-Based Compensation Restricted Stock Awards (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Awards, beginning of period | shares | 16 |
Awards granted | shares | 4 |
Awards vested | shares | (8) |
Awards canceled | shares | 0 |
Restricted Stock Awards, end of period | shares | 12 |
Restricted Stock Awards, weighted average grant date fair value, beginning of period | $ / shares | $ 36.02 |
Restricted Stock Awards, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 88.12 |
Restricted Stock Awards, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | 33.17 |
Restricted Stock Awards, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | 0 |
Restricted Stock Awards, weighted average grant date fair value, end of period | $ / shares | $ 54.81 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ | $ 0.5 |
Stock-based compensation expense, recognition period | 1 year 4 months 24 days |
Restaurant Acquisition (Details
Restaurant Acquisition (Details) $ in Thousands | Aug. 22, 2019USD ($) | May 01, 2018USD ($)restaurant | Apr. 16, 2018USD ($)restaurant | Feb. 19, 2018USD ($)restaurant | Dec. 29, 2018USD ($)restaurant | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($)restaurant | Dec. 30, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||
Business Combination, Consideration Transferred | $ 1,245 | $ 6,516 | $ 3,949 | |||||
Working capital | $ 7 | $ 20 | $ 4 | |||||
Property and equipment | $ 90 | 28 | 160 | 26 | ||||
Reacquired franchise rights | 610 | 887 | 1,277 | 541 | ||||
Goodwill | 533 | 1,309 | 458 | 1,331 | $ 49,655 | $ 50,188 | $ 49,655 | $ 46,557 |
Gift card liability | 0 | 0 | (2) | |||||
Total purchase price | 1,233 | $ 2,231 | $ 1,915 | $ 1,900 | ||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of Restaurants Acquired from a Franchisee | restaurant | 1 | 1 | 1 | 3 | 3 | |||
Business Combination, Consideration Transferred | $ 1,200 | $ 2,200 | $ 1,900 | $ 1,900 | $ 500 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 53,186 | $ 49,875 | $ 48,562 | $ 48,053 | $ 40,509 | $ 38,246 | $ 37,037 | $ 37,389 | $ 199,676 | $ 153,181 | $ 133,319 |
Advertising fees and related income | 55,932 | 34,484 | 30,174 | ||||||||
Contract with Customer, Portion of Liability not yet being Amortized | $ 8,300 | $ 9,200 | $ 8,300 | 9,200 | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-28 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 7 years 3 months 18 days | 7 years 3 months 18 days | |||||||||
Franchise | Transferred over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 4,087 | 2,924 | 2,535 | ||||||||
Franchise | Transferred at Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Advertising fees and related income | 55,932 | 34,484 | 30,174 | ||||||||
Royalty | Transferred at Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 75,106 | $ 61,882 | $ 53,204 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Aug. 22, 2019 | May 01, 2018 | Apr. 16, 2018 | Feb. 19, 2018 | ||
Revenue: | ||||||||||||||||
Total revenues | $ 53,186 | $ 49,875 | $ 48,562 | $ 48,053 | $ 40,509 | $ 38,246 | $ 37,037 | $ 37,389 | $ 199,676 | $ 153,181 | $ 133,319 | |||||
Segment Profit: | ||||||||||||||||
Operating income | 8,894 | $ 11,949 | $ 10,287 | $ 11,771 | 8,679 | $ 10,356 | $ 9,926 | $ 9,566 | 42,901 | 38,527 | 33,873 | |||||
Interest expense, net | 17,136 | 10,123 | 5,131 | |||||||||||||
Other expense, net | 0 | 1,477 | 0 | |||||||||||||
Income before taxes | 25,765 | 26,927 | 28,742 | |||||||||||||
Depreciation and amortization | 5,484 | 4,313 | 3,376 | |||||||||||||
Capital expenditures | 22,486 | 3,982 | 2,535 | |||||||||||||
Total assets | 166,113 | 139,749 | 166,113 | 139,749 | ||||||||||||
Goodwill | 50,188 | 49,655 | 50,188 | 49,655 | 46,557 | $ 533 | $ 1,309 | $ 458 | $ 1,331 | |||||||
Operating Segments | ||||||||||||||||
Revenue: | ||||||||||||||||
Total revenues | 199,676 | 153,181 | 133,319 | |||||||||||||
Segment Profit: | ||||||||||||||||
Operating income | 42,901 | 40,948 | 33,873 | |||||||||||||
Depreciation and amortization | 5,484 | 4,313 | 3,376 | |||||||||||||
Capital expenditures | 22,486 | 3,982 | 2,535 | |||||||||||||
Total assets | 143,254 | 117,296 | 143,254 | 117,296 | ||||||||||||
Goodwill | 50,188 | 49,655 | 50,188 | 49,655 | ||||||||||||
Corporate | ||||||||||||||||
Segment Profit: | ||||||||||||||||
Other Nonoperating Expense | [1] | 0 | (2,421) | 0 | ||||||||||||
Total assets | [2] | 22,859 | 22,453 | 22,859 | 22,453 | |||||||||||
Segment Reconciling Items | ||||||||||||||||
Segment Profit: | ||||||||||||||||
Interest expense, net | (17,136) | (10,123) | (5,131) | |||||||||||||
Other expense, net | 0 | (1,477) | 0 | |||||||||||||
Franchise segment | Operating Segments | ||||||||||||||||
Revenue: | ||||||||||||||||
Total revenues | 144,223 | 106,342 | 96,250 | |||||||||||||
Segment Profit: | ||||||||||||||||
Operating income | 33,683 | 30,645 | 29,230 | |||||||||||||
Depreciation and amortization | 3,870 | 3,036 | 2,220 | |||||||||||||
Capital expenditures | 21,119 | 2,930 | 864 | |||||||||||||
Total assets | 117,690 | 97,455 | 117,690 | 97,455 | ||||||||||||
Goodwill | 39,930 | 39,930 | 39,930 | 39,930 | ||||||||||||
Company segment | Operating Segments | ||||||||||||||||
Segment Profit: | ||||||||||||||||
Operating income | 9,218 | 10,303 | 4,643 | |||||||||||||
Depreciation and amortization | 1,614 | 1,277 | 1,156 | |||||||||||||
Capital expenditures | [3] | 1,367 | 1,052 | $ 1,671 | ||||||||||||
Total assets | 25,564 | 19,841 | 25,564 | 19,841 | ||||||||||||
Goodwill | $ 10,258 | $ 9,725 | $ 10,258 | $ 9,725 | ||||||||||||
[1] | Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of transaction costs associated with the refinancings of our credit agreement and payment of a special dividend. | |||||||||||||||
[2] | Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of cash and cash equivalents, Ad Fund restricted assets, right-of-use assets associated with our operating leases, and capitalized costs associated with the issuance of indebtedness. | |||||||||||||||
[3] | Company segment excludes capital expenditures related to the acquisition of restaurants from franchisees (discussed in Note 15). |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 53,186 | $ 49,875 | $ 48,562 | $ 48,053 | $ 40,509 | $ 38,246 | $ 37,037 | $ 37,389 | $ 199,676 | $ 153,181 | $ 133,319 |
Operating income | 8,894 | 11,949 | 10,287 | 11,771 | 8,679 | 10,356 | 9,926 | 9,566 | 42,901 | 38,527 | 33,873 |
Net income | $ 3,047 | $ 5,905 | $ 4,918 | $ 6,606 | $ 2,419 | $ 6,293 | $ 6,839 | $ 6,168 | $ 20,476 | $ 21,719 | $ 23,940 |
Earnings per share | |||||||||||
Basic (in usd per share) | $ 0.10 | $ 0.20 | $ 0.17 | $ 0.23 | $ 0.08 | $ 0.21 | $ 0.23 | $ 0.21 | $ 0.70 | $ 0.74 | $ 0.82 |
Diluted (in usd per share) | $ 0.10 | $ 0.20 | $ 0.17 | $ 0.22 | $ 0.08 | $ 0.21 | $ 0.23 | $ 0.21 | $ 0.69 | $ 0.73 | $ 0.82 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||
Basic (in shares) | 29,454 | 29,449 | 29,418 | 29,337 | 29,296 | 29,284 | 29,230 | 29,116 | 29,415 | 29,231 | 29,025 |
Diluted weighted average number of common shares (in shares) | 29,709 | 29,696 | 29,667 | 29,637 | 29,620 | 29,584 | 29,528 | 29,503 | 29,670 | 29,587 | 29,424 |
Uncategorized Items - wing-2019
Label | Element | Value |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 154,000 |
Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 154,000 |