Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jan. 01, 2017 | Mar. 03, 2017 | Jul. 03, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CARROLS RESTAURANT GROUP, INC. | ||
Entity Central Index Key | 809,248 | ||
Current Fiscal Year End Date | --01-01 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 1, 2017 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 36,202,380 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 421,171,436 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
ASSETS | ||
Cash | $ 2,002 | $ 22,274 |
Receivables, Net, Current | 7,623 | 6,161 |
Inventory, Net | 7,761 | 7,126 |
Prepaid rent | 4,665 | 4,168 |
Prepaid expenses and other current assets | 7,465 | 5,266 |
Refundable income taxes | 153 | 0 |
Total current assets | 29,669 | 44,995 |
Property and equipment, net | 247,847 | 220,114 |
Franchise rights, net | 134,153 | 118,881 |
Goodwill | 22,869 | 20,438 |
Franchise agreements, net | 19,591 | 15,467 |
Favorable leases, net (Note 5) | 5,441 | 5,652 |
Deferred income taxes (Note 10) | 28,841 | 0 |
Other assets | 1,744 | 1,709 |
Total assets | 490,155 | 427,256 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current portion of long-term debt | 1,616 | 1,435 |
Accounts payable | 22,445 | 20,436 |
Accrued interest | 2,676 | 2,672 |
Accrued payroll, related taxes and benefits | 26,029 | 27,582 |
Accrued real estate taxes | 5,202 | 5,117 |
Other liabilities | 10,932 | 14,012 |
Total current liabilities | 68,900 | 71,254 |
Long-term debt, net of current portion and deferred financing costs | 215,108 | 202,042 |
Lease financing obligations | 2,938 | 1,193 |
Deferred income-sale-leaseback of real estate | 12,271 | 12,589 |
Accrued postretirement benefits | 4,566 | 3,060 |
Unfavorable leases, net | 11,686 | 12,004 |
Other liabilities | 20,030 | 17,115 |
Total liabilities | 335,499 | 319,257 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, par value $.01 | 0 | 0 |
Voting common stock, par value $.01 | 353 | 350 |
Additional paid-in capital | 141,133 | 139,083 |
Retained Earnings | 14,514 | (30,958) |
Accumulated other comprehensive income | (1,203) | (335) |
Treasury stock, at cost | (141) | (141) |
Total stockholders' equity | 154,656 | 107,999 |
Total liabilities and stockholders' equity | $ 490,155 | $ 427,256 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Franchise agreements, accumulated amortization | $ 9,734 | $ 8,471 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock, shares issued | 100 | 100 |
Preferred stock, shares outstanding | 100 | 100 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 35,835,800 | 35,508,660 |
Common stock, shares outstanding | 35,258,579 | 35,039,890 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Restaurant sales | $ 943,583 | $ 859,004 | $ 692,755 |
Costs and expenses: | |||
Cost of sales | 250,112 | 240,322 | 209,664 |
Restaurant wages and related expenses | 297,766 | 267,950 | 219,718 |
Restaurant rent expense | 64,814 | 58,096 | 48,865 |
Other restaurant operating expenses | 148,946 | 135,874 | 113,586 |
Advertising expense | 41,299 | 32,242 | 27,961 |
General and administrative | 54,956 | 50,515 | 40,001 |
Depreciation and amortization | 47,295 | 39,845 | 36,923 |
Impairment and other lease charges | 2,355 | 3,078 | 3,541 |
Other expense (income) | 338 | (126) | 47 |
Total operating expenses | 907,881 | 827,796 | 700,306 |
Income (loss) from operations | 35,702 | 31,208 | (7,551) |
Interest Expense | 18,315 | 18,569 | 18,801 |
Loss on extinguishment of debt | 0 | 12,635 | 0 |
Income (loss) before income taxes | 17,387 | 4 | (26,352) |
Provision (benefit) for income taxes | (28,085) | 0 | 11,765 |
Net income (loss) | $ 45,472 | $ 4 | $ (38,117) |
Basic and diluted net income (loss) per share | $ 1.01 | $ 0 | $ (1.23) |
Basic weighted average common shares outstanding | 35,178,329 | 34,958,847 | 30,885,275 |
Diluted weighted average common shares outstanding | 44,851,345 | 44,623,251 | 30,885,275 |
Other comprehensive income (loss), net of tax: | |||
Net income (loss) | $ 45,472 | $ 4 | $ (38,117) |
Change in postretirement benefit obligations, net of tax | (868) | 22 | (1,059) |
Comprehensive income (loss) | $ 44,604 | $ 26 | $ (39,176) |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Stock-based compensation | $ 2,053 | $ 1,438 | $ 1,180 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Balance at Dec. 29, 2013 | $ 77,204,000 | $ 230,000 | $ 0 | $ 69,258,000 | $ 7,155,000 | $ 702,000 | $ (141,000) |
Common stock, shares outstanding at Dec. 29, 2013 | 23,048,334 | ||||||
Stock-based compensation | 1,180,000 | $ 0 | 0 | 1,180,000 | 0 | 0 | 0 |
Vesting of non-vested shares and excess tax benefits | 0 | $ 3,000 | 0 | (3,000) | 0 | 0 | 0 |
Vesting of non-vested shares, shares | 278,906 | ||||||
Issuance of common stock | $ 67,327,000 | $ 115,000 | 0 | 67,212,000 | 0 | 0 | 0 |
Issuance of common stock, shares | 11,500,000 | 11,500,000 | |||||
Net income (loss) | $ (38,117,000) | $ 0 | 0 | 0 | (38,117,000) | 0 | 0 |
Change in postretirement benefit obligations | (1,059,000) | 0 | 0 | 0 | 0 | (1,059,000) | 0 |
Balance at Dec. 28, 2014 | 106,535,000 | $ 348,000 | 0 | 137,647,000 | (30,962,000) | (357,000) | (141,000) |
Common stock, shares outstanding at Dec. 28, 2014 | 34,827,240 | ||||||
Stock-based compensation | 1,438,000 | $ 0 | 0 | 1,438,000 | 0 | 0 | 0 |
Vesting of non-vested shares and excess tax benefits | 0 | $ 2,000 | 0 | (2,000) | 0 | 0 | 0 |
Vesting of non-vested shares, shares | 212,650 | ||||||
Net income (loss) | 4,000 | $ 0 | 0 | 0 | 4,000 | 0 | 0 |
Change in postretirement benefit obligations | 22,000 | 0 | 0 | 0 | 0 | 22,000 | 0 |
Balance at Jan. 03, 2016 | $ 107,999,000 | $ 350,000 | 0 | 139,083,000 | (30,958,000) | (335,000) | (141,000) |
Common stock, shares outstanding at Jan. 03, 2016 | 35,039,890 | 35,039,890 | |||||
Stock-based compensation | $ 2,053,000 | $ 0 | 0 | 2,053,000 | 0 | 0 | 0 |
Vesting of non-vested shares and excess tax benefits | 0 | $ 3,000 | 0 | (3,000) | 0 | 0 | 0 |
Vesting of non-vested shares, shares | 218,689 | ||||||
Net income (loss) | 45,472,000 | $ 0 | 0 | 0 | 45,472,000 | 0 | 0 |
Change in postretirement benefit obligations | (868,000) | 0 | 0 | 0 | 0 | (868,000) | 0 |
Balance at Jan. 01, 2017 | $ 154,656,000 | $ 353,000 | $ 0 | $ 141,133,000 | $ 14,514,000 | $ (1,203,000) | $ (141,000) |
Common stock, shares outstanding at Jan. 01, 2017 | 35,258,579 | 35,258,579 |
Consolidated Statement of Stoc7
Consolidated Statement of Stockholders' Equity Parentheticals - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Other Comprehensive Income (Loss), Tax | $ 541 | $ 0 | $ 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | |
Cash flows provided from (used for) operating activities: | |||
Net income (loss) | $ 45,472 | $ 4 | $ (38,117) |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Loss on disposals of property and equipment | (549) | 364 | 537 |
Stock-based compensation | 2,053 | 1,438 | 1,180 |
Impairment and other lease charges | 2,355 | 3,078 | 3,541 |
Depreciation and amortization | 47,295 | 39,845 | 36,923 |
Amortization of deferred financing costs | 791 | 874 | 1,007 |
Amortization of deferred gains from sale-leaseback transactions | (1,788) | (2,535) | (1,793) |
Deferred income taxes | (28,085) | 0 | 11,548 |
Loss on extinguishment of debt | 0 | 12,635 | 0 |
Refundable income taxes | (153) | 2,416 | 177 |
Accounts receivable | (1,462) | (2,127) | (1,094) |
Accounts payable | 1,686 | 2,054 | 2,194 |
Accrued interest | 4 | 502 | 30 |
Accrued payroll, related taxes and benefits | (1,553) | 10,261 | (700) |
Other | (3,778) | 1,893 | (726) |
Net cash provided from operating activities | 62,288 | 70,702 | 14,707 |
Cash flows used for investing activities: | |||
New restaurant development | (8,228) | (574) | (1,696) |
Restaurant remodeling | (65,767) | (41,582) | (38,197) |
Other restaurant capital expenditures | (15,168) | (10,772) | (6,720) |
Corporate and restaurant information systems | (4,936) | (3,920) | (5,397) |
Total capital expenditures | (94,099) | (56,848) | (52,010) |
Acquisition of restaurants, net of cash acquired | (48,088) | (52,750) | (52,200) |
Proceeds from insurance recoveries | 1,413 | 0 | 0 |
Proceeds from sale of other assets | 0 | 534 | 54 |
Increase in restricted cash balance | 0 | 0 | 20,000 |
Properties purchased for sale-leaseback | (9,046) | (3,513) | (3,412) |
Proceeds from sale-leaseback transactions | 53,599 | 9,148 | 19,565 |
Net cash used for investing activities | (96,221) | (103,429) | (68,003) |
Cash flows provided from (used for) financing activities: | |||
Proceeds from issuance of senior secured second lien notes | 0 | 200,000 | 0 |
Senior Notes | 200,000 | 200,000 | |
Redemption of 11.25% senior secured second lien notes | 0 | (159,771) | 0 |
Financing costs associated with issuance of debt | (175) | (5,169) | (62) |
Proceeds from public stock offering, net of expenses | 0 | 0 | 67,327 |
Borrowings under senior credit facility | 129,000 | 0 | 59,000 |
Repayments under senior credit facility | (115,500) | 0 | (59,000) |
Principal payments on capital leases | (1,480) | (1,280) | (1,050) |
Proceeds from lease financing obligations | 1,816 | 0 | 0 |
Net cash provided from (used for) financing activities | 13,661 | 33,780 | 66,215 |
Net increase (decrease) in cash | (20,272) | 1,053 | 12,919 |
Cash, beginning of period | 22,274 | 21,221 | 8,302 |
Cash, end of period | 2,002 | 22,274 | 21,221 |
Supplemental disclosures: | |||
Interest paid on long-term debt | 17,415 | 17,088 | 17,659 |
Interest paid on lease financing obligations | 105 | 104 | 103 |
Accruals for capital expenditures | 4,032 | 3,779 | 4,683 |
Income taxes paid (refunded), net | 153 | (2,416) | (41) |
Capital lease obligations incurred | 583 | 615 | 1,459 |
Non-cash reduction of capital lease assets and obligation | $ 0 | $ 0 | $ 1,055 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 12 Months Ended |
Jan. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation Business Description. At January 1, 2017 Carrols Restaurant Group, Inc. ("Carrols Restaurant Group") operated, as franchisee, 753 restaurants under the trade name “Burger King®” in 16 Northeastern, Midwestern and Southeastern states. Basis of Consolidation. Carrols Restaurant Group is a holding company and conducts all of its operations through its wholly-owned subsidiary, Carrols Corporation (“Carrols”) and Carrols' wholly-owned subsidiary, Carrols LLC, a Delaware limited liability company . The consolidated financial statements presented herein include the accounts of Carrols Restaurant Group and its wholly-owned subsidiary Carrols. Unless the context otherwise requires, Carrols Restaurant Group, Carrols and Carrols LLC are collectively referred to as the “Company.” All intercompany transactions have been eliminated in consolidation. Fiscal Year. The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to December 31. The fiscal years ended January 1, 2017 and December 28, 2014 each contained 52 weeks and the fiscal year ended January 3, 2016 contained 53 weeks. Use of Estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include: accrued occupancy costs, insurance liabilities, the evaluation for impairment of goodwill, long-lived assets and franchise rights, lease accounting matters, the valuation of assets and liabilities acquired and the valuation of deferred income tax assets. Actual results could differ from those estimates. Cash and Cash Equivalents. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Inventories. Inventories, primarily consisting of food and paper, are stated at the lower of cost or market. Property and Equipment. The Company capitalizes all direct costs incurred to construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Property and equipment is recorded at cost. Repair and maintenance activities are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Owned buildings 9 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to capital leases Shorter of useful life or lease term Leasehold improvements are depreciated over the shorter of their estimated useful lives or the underlying lease term. In circumstances where an economic penalty would be presumed by the non-exercise of one or more renewal options under the lease, the Company includes those renewal option periods when determining the lease term. For significant leasehold improvements made during the latter part of the lease term, the Company amortizes those improvements over the shorter of their useful life or the expected lease term. The expected lease term would consider the exercise of renewal options if the value of the improvements would imply that an economic penalty would be incurred without the renewal of the option. Building costs incurred for new restaurants on leased land are depreciated over the lease term, which is generally a period of twenty years . Business Combinations. In accordance with ASC 805, the Company allocates the purchase price of an acquired business to its net identifiable assets and liabilities based on the estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. The Company uses all available information to estimate fair values of identifiable intangible assets and property acquired. In making these determinations, the Company may engage an independent third party valuation specialist to assist with the valuation of certain leasehold improvements, franchise rights and favorable and unfavorable leases. The Company estimates that the seller's carrying value of acquired restaurant equipment, subject to certain adjustments, and restaurant equipment subject to capital leases is equivalent to fair value of this equipment at the date of the acquisitions. The fair values of assumed franchise agreements are valued as if the remaining term of the agreement is at the market rate. The fair values of acquired land, buildings and certain leasehold improvements are determined using both the cost approach and market approach. The fair value of the favorable and unfavorable leases acquired, as well as the fair value of land, buildings and leasehold improvements acquired, is measured using significant inputs observable in the open market. The Company categorizes all such inputs as Level 2 inputs under ASC 820. The fair value of acquired franchise rights is determined using the income approach. On May 30, 2012, the Company acquired 278 Burger King restaurants from Burger King Corporation ("BKC"), including BKC's assignment of its right of first refusal on franchise restaurant transfers in 20 states as follows: Connecticut (except Hartford county), Delaware, Indiana, Kentucky, Maine, Maryland, Massachusetts (except for Middlesex, Norfolk and Suffolk counties), Michigan, New Hampshire, New Jersey, New York (except for Bronx, Kings, Nassau, New York, Queens, Richmond, Suffolk and Westchester counties), North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, Washington DC and West Virginia, (the "ROFR") pursuant to an operating agreement with BKC dated May 30, 2012, and as amended on January 26, 2015 and December 17, 2015. Franchise Rights. For its restaurant acquisitions prior to 2002, the Company generally allocated to franchise rights, an intangible asset, the excess of purchase price and related costs over the value assigned to the net tangible and intangible assets acquired. For acquisitions subsequent to 2002, the Company determined the fair value of franchise rights based upon the acquired restaurants' future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment and assembled workforce to determine the fair value attributable to these franchise rights. Amounts allocated to franchise rights for each acquisition are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. Franchise Agreements. Fees for initial franchises and renewals are amortized using the straight-line method over the term of the agreement, which is generally twenty years . Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. Favorable and Unfavorable Leases. Favorable and unfavorable leases are due to the terms of acquired operating lease contracts being favorable or unfavorable relative to market terms of comparable leases on the acquisition date. Favorable and unfavorable leases are amortized as a component of rent expense on a straight-line basis over the remaining lease terms at the time of the acquisition. Impairment of Long-Lived Assets. The Company assesses the recoverability of property and equipment, franchise rights and other intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining useful lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Deferred Financing Costs. Financing costs incurred in obtaining long-term debt and lease financing obligations are capitalized and amortized over the life of the related obligation as interest expense using the effective interest method. Long-term debt on the consolidated balance sheet is presented net of the unamortized amount of the financing costs related to long-term borrowings. Leases. All leases are reviewed for capital or operating classification at their inception. The majority of the Company’s leases are operating leases. Many of the lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including any option periods included in the determination of the lease term. Contingent rentals are generally based upon a percentage of sales or a percentage of sales in excess of stipulated amounts and are generally not considered minimum rent payments but are recognized as rent expense when incurred. Lease Financing Obligations. Lease financing obligations pertain to real estate sale-leaseback transactions accounted for under the financing method. The assets (land and building) subject to these obligations remain on the Company’s consolidated balance sheet at their historical costs and such assets (excluding land) continue to be depreciated over their remaining useful lives. The proceeds received by the Company from these transactions are recorded as lease financing obligations and the lease payments are applied as payments of principal and interest. The selection of the interest rate on lease financing obligations is evaluated at inception of the lease based on the Company’s incremental borrowing rate adjusted to the rate required to prevent recognition of a non-cash loss or negative amortization of the obligation through the end of the primary lease term. Revenue Recognition . Revenues from Company restaurants are recognized when payment is tendered at the time of sale, net of sales discounts and excluding sales tax collected. Income Taxes. Deferred income tax assets and liabilities are based on the difference between the financial statement and tax bases of assets and liabilities as measured by the tax rates that are anticipated to be in effect when those differences reverse. The deferred tax provision generally represents the net change in deferred tax assets and liabilities during the period including any changes in valuation allowances. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established when it is necessary to reduce deferred tax assets to an amount for which realization is likely. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company and its subsidiary file a consolidated federal income tax return. Advertising Costs. All advertising costs are expensed as incurred. Cost of Sales. The Company includes the cost of food, beverage and paper, net of any vendor discounts and rebates, in cost of sales. Pre-opening Costs. The Company’s pre-opening costs are expensed as incurred and generally include payroll costs associated with the opening of a new restaurant, rent and promotional costs. Insurance. The Company is self-insured for workers’ compensation, general liability and medical insurance claims under policies where it pays all claims, subject to stop-loss limitations both for individual claims and in certain cases claims in the aggregate. Losses are accrued based upon the Company’s estimates of the aggregate liability for claims based on Company experience and other methods used to measure such estimates. The Company does not discount any of its self-insurance obligations. Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. Financial instruments include cash, trade and other receivables, accounts payable and long-term debt. The carrying amounts of cash, trade and other receivables and accounts payable approximate fair value because of the short-term nature of these financial instruments. The fair value of the Carrols Restaurant Group 8.0% Senior Secured Second Lien Notes due 2022 is based on a recent trading value, which is considered Level 2, and at January 1, 2017 and January 3, 2016 was approximately $216.5 million and $212.0 million , respectively. Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of long-lived assets, goodwill and intangible assets. Long-lived assets and definite-lived intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. As described in Note 5, the Company recorded long-lived asset impairment charges of $1.0 million , $1.5 million and $2.6 million during the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 , respectively. Stock-Based Compensation. The Company has an incentive stock plan under which incentive stock options, non-qualified stock options and non-vested shares may be granted to employees and non-employee directors. On an annual basis, the Company has granted non-vested shares under this plan. Non-vested shares granted to corporate employees generally vest on a straight-line basis over three or four years and non-vested shares granted to non-employee directors generally vest on a straight-line basis over three to five years . For non-vested stock awards, the fair market value of the award, determined based upon the closing value of the Company’s stock price on the grant date, is recorded to compensation expense on a straight-line basis over the requisite service period. See Note 11 to the consolidated financial statements. Gift cards. The Company sells gift cards in its restaurants that are issued under BKC's gift card program. Proceeds from the sale of Burger King gift cards at the Company’s restaurants are received by BKC. The Company recognizes revenue from gift cards upon redemption by the customer. Concentrations of Credit Risk. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains its day-to-day operating cash balances in interest-bearing transaction accounts at financial institutions, which are insured by the Federal Deposit Insurance Corporation up to $250,000 . Although the Company maintains balances that exceed the federally insured limit, it has not experienced any losses related to these balances and believes its credit risk to be minimal. Segment Information. Operating segments are components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker in order to allocate resources and assess performance. The Company's chief operating decision maker currently evaluates the Company's operations from a number of different operational perspectives, however resource allocation decisions are made on a total-company basis. The Company derives all significant revenues from a single operating segment. Accordingly, the Company views the operating results of its Burger King restaurants as one reportable segment. Recently Issued Accounting Pronouncements Not Yet Adopted. In February 2016, the FASB issued ASU No. 2016-02, Leases. This ASU is intended to improve the reporting of leasing transactions to provide users of financial statements with more decision-useful information. This ASU will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, using a modified retrospective approach. Early adoption is permitted. The Company is evaluating the potential impact that adoption will have on its consolidated financial statements, but expects it will have a material impact on its consolidated balance sheet as it will record assets and obligations for current operating leases. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718). The pronouncement was issued to simplify the accounting for share-based payment transactions, including income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. This pronouncement is effective for reporting periods beginning after December 15, 2016. The guidance will be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Upon adoption, any future excess tax benefits or deficiencies will be recorded to the provision for income taxes in the consolidated statement of income, instead of additional paid-in capital in the consolidated balance sheet. Additionally, excess tax benefits will be classified as operating activities in the consolidated statement of cash flow instead of in financing activities as required under the current guidance. The Company has not selected a transition method but does not expect the provisions of ASU 2016-09 to have a material impact on the Company’s consolidated financial statements. Subsequent Events. The Company reviewed and evaluated subsequent events through the issuance date of the Company’s consolidated financial statements. On February 28, 2017 , the Company acquired 43 Burger King restaurants located in and around the Cincinnati, Ohio market for a cash purchase price of $20.4 million , which included inventory, restaurant equipment and intangible assets. |
Acquisition
Acquisition | 12 Months Ended |
Jan. 01, 2017 | |
Business Combinations [Abstract] | |
Acquisition [Text Block] | Acquisitions 2016 Acquisitions During the year ended January 1, 2017, the Company acquired a total of 56 restaurants from other franchisees, which are referred to as the "2016 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Number of Fee-Owned Restaurants (1) Market Location February 23, 2016 (2) 12 $ 7,127 Scranton/Wilkes-Barre, Pennsylvania May 25, 2016 6 12,080 5 Detroit, Michigan July 14, 2016 (2) 4 5,445 3 Detroit, Michigan August 23, 2016 7 8,755 6 Portland, Maine October 4, 2016 3 1,623 Raleigh, North Carolina November 15, 2016 17 7,251 Pittsburgh and Johnstown, Pennsylvania December 1, 2016 7 5,807 1 Columbus, Ohio 56 $ 48,088 15 (1) The 2016 acquisitions included the purchase of 15 fee-owned properties. Fourteen of these fee-owned properties were sold in sale-leaseback transactions during 2016 for net proceeds of $19.1 million . (2) Acquisitions resulting from the exercise of the ROFR. The Company allocated the aggregate purchase price to the net tangible and intangible assets acquired in the acquisitions at their estimated fair values. The following table summarizes the final allocation of the aggregate purchase price for the seven 2016 acquisitions: Inventory $ 558 Land and buildings 19,387 Restaurant equipment 1,599 Restaurant equipment - subject to capital lease 435 Leasehold improvements 2,464 Franchise fees 1,121 Franchise rights 21,202 Favorable leases 390 Deferred taxes 216 Goodwill 2,431 Capital lease obligations for restaurant equipment (492 ) Unfavorable leases (1,152 ) Other liabilities (71 ) Net assets acquired $ 48,088 The results of operations for the restaurants acquired are included from the closing date of the respective acquisition. The 2016 acquired restaurants contributed restaurant sales of $28.6 million during the year ended January 1, 2017 . It is impracticable to disclose net earnings for the post-acquisition periods as net earnings of these restaurants were not tracked on a collective basis due to the integration of administrative functions, including field supervision. During the year ended January 1, 2017 , acquisition costs of approximately $1.6 million related to the 2016 acquisitions were recorded in general and administrative expense. The pro forma impact on the results of operations for restaurants acquired in 2016 and 2015 is included below. The pro forma results of operations are not necessarily indicative of the results that would have occurred had the restaurants acquired in 2016 and 2015 been consummated at the beginning of the periods presented, nor are they necessarily indicative of any future consolidated operating results. The following table summarizes the Company's unaudited proforma operating results: Year Ended (52 weeks) (53 weeks) January 1, 2017 January 3, 2016 Restaurant sales $ 984,164 $ 986,935 Net income $ 48,264 (1) $ 12,078 Basic and diluted net income per share $ 1.07 $ 0.27 (1) Includes a tax benefit of $30.4 million for the reversal of the Company's valuation allowance on its net deferred income tax assets (see Note 10). This pro forma financial information does not give effect to any anticipated synergies, operating efficiencies or cost savings or any transaction costs related to the 2016 acquired restaurants. 2015 Acquisitions During the year ended January 3, 2016, the Company acquired an aggregate of 55 restaurants from other franchisees, which are referred to as the "2015 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Number of Fee-Owned Restaurants (1) Market Location March 31, 2015 4 $ 794 Northern Vermont August 4, 2015 5 663 Charlotte, North Carolina October 1, 2015 (2) 5 5,044 1 Wheeling, West Virginia October 20, 2015 1 709 Kalamazoo, Michigan November 17, 2015 2 618 Evansville, Indiana November 17, 2015 (2) 6 10,945 5 Evansville, Indiana December 1, 2015 (2) 23 26,175 10 Detroit, Michigan December 8, 2015 9 7,802 Northern New Jersey 55 $ 52,750 16 (1) The 2015 acquisitions included the purchase of 16 fee-owned properties. Three of these fee-owned properties were sold in sale-leaseback transactions during the fourth quarter of 2015 for net proceeds of $4.3 million and 12 fee-owned properties were sold in sale-leaseback transactions during 2016 for net proceeds of $17.7 million . (2) Acquisitions resulting from the exercise of the ROFR. The Company allocated the aggregate purchase price to the net tangible and intangible assets acquired in the acquisitions at their estimated fair values. The following table summarizes the final allocation of the aggregate purchase price for the eight 2015 acquisitions: Inventory $ 544 Land and buildings 22,614 Restaurant equipment 2,844 Restaurant equipment - subject to capital lease 443 Leasehold improvements 1,770 Franchise fees 1,000 Franchise rights 20,666 Favorable leases 1,475 Goodwill 2,645 Capital lease obligations for restaurant equipment (494 ) Unfavorable leases (324 ) Other liabilities (433 ) Net assets acquired $ 52,750 The results of operations for the restaurants acquired are included from the closing date of the respective acquisition. The 2015 acquired restaurants contributed restaurant sales of $70.4 million and $12.9 million during the years ended January 1, 2017 and January 3, 2016 , respectively. It is impracticable to disclose net earnings for the post-acquisition periods as net earnings of these restaurants were not tracked on a collective basis due to the integration of administrative functions, including field supervision. During the years ended January 1, 2017 and January 3, 2016 , acquisition costs of approximately $0.2 million and $1.0 million , respectively, related to the 2015 acquisitions were recorded in general and administrative expense. The pro forma impact on the results of operations for restaurants acquired in 2015 and 2014 is included below. The pro forma results of operations are not necessarily indicative of the results that would have occurred had the acquisitions in 2015 and 2014 been consummated at the beginning of the periods presented, nor are they necessarily indicative of any future consolidated operating results. The following table summarizes the Company's unaudited proforma operating results: Year Ended (53 weeks) (52 weeks) January 3, 2016 December 28, 2014 Restaurant sales $ 918,456 $ 862,357 Net income (loss) $ 6,447 $ (27,252 ) Basic and diluted net income (loss) per share $ 0.14 $ (0.88 ) This pro forma financial information does not give effect to any anticipated synergies, operating efficiencies or cost savings or any transaction costs related to the 2015 acquired restaurants. 2014 Acquisitions During the year ended December 28, 2014, the Company acquired an aggregate of 123 restaurants from other franchisees, which are referred to as the "2014 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Number of Fee-Owned Restaurants (1) Market Location April 30, 2014 (2) 4 $ 681 Fort Wayne, Indiana June 30, 2014 (2) 4 3,819 1 Pittsburgh, Pennsylvania July 22, 2014 21 8,609 Rochester, New York and Southern Tier of Western New York October 8, 2014 (2) 30 20,330 12 Wilmington and Greenville, North Carolina November 4, 2014 (3) 64 18,761 Nashville, Tennessee; Indiana and Illinois 123 $ 52,200 13 (1) The 2014 acquisitions included the purchase of 13 fee-owned properties. Ten of these fee-owned properties were sold in sale-leaseback transactions during the fourth quarter of 2014 for net proceeds of $13.0 million and one property was sold in a sale-leaseback transaction in 2015 for net proceeds of $1.1 million . (2) Acquisitions resulting from the exercise of the ROFR. (3) In connection with the acquisition on November 4, 2014 , the Company entered into an agreement with BKC to remodel 46 of the restaurants acquired over a five-year period beginning in 2014. The Company allocated the aggregate purchase price to the net tangible and intangible assets acquired in the acquisitions at their estimated fair values. The following table summarizes the final allocation of the aggregate purchase price for the five 2014 acquisitions: Inventory $ 1,267 Land and buildings 15,955 Restaurant equipment 5,818 Restaurant equipment - subject to capital lease 1,381 Leasehold improvements 1,804 Franchise fees 3,064 Franchise rights 17,098 Favorable leases 2,096 Deferred income taxes 1,526 Other assets 65 Goodwill 9,631 Capital lease obligation for restaurant equipment (1,458 ) Unfavorable leases (5,912 ) Other liabilities (135 ) Net assets acquired $ 52,200 The results of operations for the restaurants acquired are included from the closing date of the respective acquisition. The 2014 acquired restaurants and contributed restaurant sales of $144.6 million and $34.0 million in the years ended January 3, 2016 and December 28, 2014, respectively. It is impracticable to disclose net earnings for the post-acquisition periods as net earnings of these restaurants were not tracked on a collective basis due to the integration of administrative functions, including field supervision. During the years ended January 3, 2016 and December 28, 2014, transaction and integration costs of approximately $0.2 million and $1.9 million , respectively, related to the 2014 acquisitions were recorded in general and administrative expense. The pro forma impact on the results of operations for the 2014 acquisitions is included below. The pro forma results of operations are not necessarily indicative of the results that would have occurred had the 2014 acquisitions been consummated at the beginning of the periods presented, nor are they necessarily indicative of any future consolidated operating results. The following table summarizes the Company's unaudited proforma operating results: Year ended December 28, 2014 Restaurant sales $ 793,521 Net loss $ (31,364 ) Basic and diluted net loss per share $ (1.02 ) This pro forma financial information does not give effect to any anticipated synergies, operating efficiencies or cost savings or any transaction costs related to the 2014 acquired restaurants. Acquired Intangible Assets Goodwill recorded in connection with these acquisitions represents costs in excess of fair values assigned to the underlying net assets of acquired restaurants. Acquired goodwill that is expected to be deductible for income tax purposes was $1,803 in 2016, $3,311 in 2015 and $7,221 in 2014. Deferred income tax assets are primarily due to the book and tax bases difference of net favorable and unfavorable leases. The weighted average amortization period of the intangible assets acquired is as follows: 2016 Acquisitions 2015 Acquisitions 2014 Acquisitions Favorable leases 15.4 15.5 13.4 Unfavorable leases 12.0 6.5 15.0 Franchise rights 28.0 26.6 30.4 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 01, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and Equipment Property and equipment at January 1, 2017 and January 3, 2016 consisted of the following: January 1, 2017 January 3, 2016 Land $ 8,112 $ 19,126 Owned buildings 9,174 13,625 Leasehold improvements 265,008 215,673 Equipment 203,412 181,283 Assets subject to capital leases 16,948 16,547 502,654 446,254 Less accumulated depreciation and amortization (254,807 ) (226,140 ) $ 247,847 $ 220,114 Assets subject to capital leases primarily pertain to buildings leased for certain restaurant locations and certain leases of restaurant equipment and had accumulated amortization at January 1, 2017 and January 3, 2016 of $11,008 and $9,553 , respectively. Depreciation expense for all property and equipment for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 was $39,918 , $33,878 and $31,372 , respectively. |
Intangible Assets (Notes)
Intangible Assets (Notes) | 12 Months Ended |
Jan. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Franchise Rights, Favorable and Unfavorable Leases | Intangible Assets Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year. In performing its goodwill impairment test, the Company compared the net book value of its reporting unit to its estimated fair value, the latter determined by employing a combination of a discounted cash flow analysis and a market-based approach. There have been no recorded goodwill impairment losses during the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 . Goodwill at December 28, 2014 $ 17,793 Acquisitions of restaurants (Note 2) 2,645 Goodwill at January 3, 2016 20,438 Acquisitions of restaurants (Note 2) 2,431 Goodwill at January 1, 2017 $ 22,869 Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. The following is a summary of the Company’s franchise rights as of the respective balance sheet dates: January 1, 2017 January 3, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Franchise rights $ 227,952 $ 93,799 $ 206,750 $ 87,869 Amortization expense related to franchise rights for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 was $5,930 , $4,685 and $4,366 , respectively, and the Company expects annual amortization to be $6,241 in each of the next five fiscal years. No impairment charges were recorded related to the Company’s franchise rights during the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 . Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. The following is a summary of the Company’s favorable and unfavorable leases as of the respective balance sheet dates, which are included as assets and liabilities, respectively, on the accompanying consolidated balance sheets: January 1, 2017 January 3, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Favorable leases $ 7,201 $ 1,760 $ 6,991 $ 1,339 Unfavorable leases $ 16,329 $ 4,643 $ 15,448 $ 3,444 The net reduction of rent expense related to the amortization of favorable and unfavorable leases for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 was $869 , $799 and $715 , respectively, and the Company expects the net reduction of rent expense to be $702 in 2017 , $701 in 2018 , $628 in 2019 , $550 in 2020 and $481 in 2021 . |
Impairment Of Long-Lived Assets
Impairment Of Long-Lived Assets And Other Lease Charges | 12 Months Ended |
Jan. 01, 2017 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Asset Impairment Charges [Text Block] | Impairment of Long-Lived Assets and Other Lease Charges The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. The Company determined the fair value of restaurant equipment, for those restaurants reviewed for impairment, based on current economic conditions and the Company’s history of using these assets in the operation of its business. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. During the year ended January 1, 2017 the Company recorded impairment and other lease charges of $2.4 million including $0.9 million of capital expenditures at previously impaired restaurants, $0.2 million related to initial impairment charges for four underperforming restaurants and non-cash losses of $1.2 million associated with the sale-leaseback of seven restaurant properties. During the year ended January 3, 2016 , the Company recorded impairment and other lease charges of $3.1 million including other lease charges of $1.6 million associated with the closure of ten of the Company's restaurants, asset impairment charges of $1.3 million for capital expenditures at previously impaired restaurants and $0.2 million related to initial impairment charges for two underperforming restaurants. During the year ended December 28, 2014 , the Company recorded impairment and other lease charges of $3.5 million including other lease charges of $1.0 million associated with the closure of three of the Company's restaurants, impairment charges of $1.1 million for capital expenditures at previously impaired restaurants and $1.4 million related to initial impairment charges for nine underperforming restaurants. The following table presents the activity in the accrual for closed restaurant locations: January 1, 2017 January 3, 2016 Balance, beginning of year $ 2,088 $ 1,721 Provisions for restaurant closures 59 1,472 Changes in estimates of accrued costs (89 ) (95 ) Payments, net (691 ) (1,228 ) Other adjustments, including the effect of discounting future obligations 146 218 Balance, end of year $ 1,513 $ 2,088 Changes in estimates of accrued costs primarily relate to revisions to certain sublease income assumptions and costs. |
Other Liabilities, Long-Term (N
Other Liabilities, Long-Term (Notes) | 12 Months Ended |
Jan. 01, 2017 | |
Liabilities, Noncurrent [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Liabilities, Long-Term Other liabilities, long-term, at January 1, 2017 and January 3, 2016 consisted of the following: January 1, 2017 January 3, 2016 Deferred rent $ 11,498 $ 9,620 Other accrued occupancy costs 3,254 2,581 Accrued workers’ compensation and general liability claims 3,364 3,606 Deferred compensation 1,756 997 Other 158 311 $ 20,030 $ 17,115 Other accrued occupancy costs above include long-term obligations pertaining to closed restaurant locations, contingent rent and unamortized lease incentives. |
Leases
Leases | 12 Months Ended |
Jan. 01, 2017 | |
Leases [Abstract] | |
Leases Disclosure [Text Block] | Leases The Company utilizes land and buildings in its operations under various lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for twenty years and, in many cases, provide for renewal options and in most cases rent escalations. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. During the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 , the Company sold 38 , 7 and 15 restaurant properties, respectively, in sale-leaseback transactions for net proceeds of $53,599 , $9,148 and $19,565 , respectively. These leases have been classified as operating leases and generally contain a twenty -year initial term plus renewal options. Deferred gains from sale-leaseback transactions of restaurant properties of $1,480 , $16 and $373 were recognized during the years ended January 1, 2017 , January 3, 2016 , and December 28, 2014 , respectively, and are being amortized over the term of the related leases. The amortization of deferred gains from sale-leaseback transactions was $1,788 , $2,535 and $1,793 for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 , respectively. Minimum rent commitments under capital and non-cancelable operating leases at January 1, 2017 were as follows : Fiscal year ending: Capital Operating December 31, 2017 $ 2,067 $ 62,739 December 30, 2018 2,073 61,595 December 29, 2019 2,068 60,546 January 3, 2021 1,367 59,207 January 2, 2022 292 58,067 Thereafter 338 615,545 Total minimum lease payments 8,205 $ 917,699 Less amount representing interest (1,166 ) Total obligations under capital leases 7,039 Less current portion (1,616 ) Long-term obligations under capital leases $ 5,423 Total rent expense on operating leases, including contingent rent on both operating and capital leases, was as follows: Year ended January 1, 2017 January 3, 2016 December 28, 2014 Minimum rent on real property $ 59,076 $ 53,085 $ 45,371 Contingent rent on real property 5,738 5,011 3,494 Restaurant rent expense 64,814 58,096 48,865 Administrative and equipment rent 267 276 264 $ 65,081 $ 58,372 $ 49,129 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 01, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-term Debt Long-term debt at January 1, 2017 and January 3, 2016 consisted of the following: January 1, 2017 January 3, 2016 Collateralized: Carrols Restaurant Group 8% Senior Secured Second Lien Notes $ 200,000 $ 200,000 Senior Credit Facility - Revolving credit borrowings 13,500 — Capital leases 7,039 8,006 220,539 208,006 Less: current portion (1,616 ) (1,435 ) Less: deferred financing costs (3,815 ) (4,529 ) $ 215,108 $ 202,042 8% Notes. On April 29, 2015, the Company issued 200,000 of 8.0% Senior Secured Second Lien Notes due 2022 (the "8% Notes") pursuant to an indenture dated as of April 29, 2015 governing such notes. The 8% Notes mature and are payable on May 1, 2022. Interest is payable semi-annually on May 1 and November 1 commencing November 1, 2015. The 8% Notes are guaranteed by the Company's subsidiaries and are secured by second-priority liens on substantially all of the Company's and its subsidiaries' assets (including a pledge of all of the capital stock and equity interests of its subsidiaries). The Company recorded a loss on debt extinguishment of $12.6 million in the year ended January 3, 2016 due to the repurchase and redemption of its prior 11.25% Senior Secured Second Lien Notes. The 8% Notes are redeemable at the option of the Company in whole or in part at any time after May 1, 2018 at a price of 104% of the principal amount plus accrued and unpaid interest, if any, if redeemed before May 1, 2019, 102% of the principal amount plus accrued and unpaid interest, if any, if redeemed after May 1, 2019 but before May 1, 2020 and 100% of the principal amount plus accrued and unpaid interest, if any, if redeemed after May 1, 2020. Prior to May 1, 2018, the Company may redeem some or all of the 8% Notes at a redemption price of 100% of the principal amount of each note plus accrued and unpaid interest, if any, and a make-whole premium. In addition, the indenture governing the 8% Notes also provides that the Company may redeem up to 35% of the 8% Notes using the proceeds of certain equity offerings completed before May 15, 2018. The 8% Notes are jointly and severally guaranteed, unconditionally and in full by the Company's subsidiaries which are directly or indirectly 100% owned by the Company. Separate condensed consolidating information is not included because Carrols Restaurant Group is a holding company that has no independent assets or operations. There are no significant restrictions on its ability or any of the guarantor subsidiaries' ability to obtain funds from its respective subsidiaries. All consolidated amounts in our financial statements are representative of the combined guarantors. The indenture governing the 8% Notes includes certain covenants, including limitations and restrictions on the Company and its subsidiaries who are guarantors under such indenture to, among other things: incur indebtedness or issue preferred stock; incur liens; pay dividends or make distributions in respect of capital stock or make certain other restricted payments or investments; sell assets; agree to payment restrictions affecting certain subsidiaries; enter into transaction with affiliates; or merge, consolidate or sell substantially all of the Company's assets. The indenture governing the 8% Notes and the security agreement provide that any capital stock and equity interests of any of the Company's subsidiaries will be excluded from the collateral to the extent that the par value, book value or market value of such capital stock or equity interests exceeds 20% of the aggregate principal amount of the 8% Notes then outstanding. The indenture governing the 8% Notes contains customary default provisions, including without limitation, a cross default provision pursuant to which it is an event of default under the 8% Notes and the indenture governing the 8% Notes if there is a default under any of the Company's indebtedness having an outstanding principal amount of $20.0 million or more which results in the acceleration of such indebtedness prior to its stated maturity or is caused by a failure to pay principal when due. Senior Credit Facility. On May 30, 2012, the Company entered into a senior credit facility, which was most recently amended on January 13, 2017 to provide for aggregate revolving credit borrowings of up to $73.0 million (including $20.0 million available for letters of credit). As amended, the senior credit facility will mature on February 12, 2021. The amended senior credit facility also provides for potential incremental borrowing increases of up to $25.0 million , in the aggregate. At January 1, 2017 , there was $13.5 million of revolving credit borrowings outstanding and $12.8 million of letters of credit issued under the amended senior credit facility. After reserving for issued letters of credit and outstanding revolving credit borrowings at January 13, 2017, $42.4 million was available for revolving credit borrowings under the amended senior credit facility. Borrowings under the amended senior credit facility bear interest at a rate per annum, at the Company’s option, based on (all terms as defined in the Company's amended senior credit facility): (i) the Alternate Base Rate plus the applicable margin of 1.75% to 2.75% based on the Company’s Adjusted Leverage Ratio, or (ii) the LIBOR Rate plus the applicable margin of 2.75% to 3.75% based on the Company’s Adjusted Leverage Ratio. At January 1, 2017 , the Company's Alternate Base Rate margin was 1.75% and the LIBOR Rate margin was 2.75% based on the Company's Adjusted Leverage Ratio at the end of the third quarter of 2016. The interest rate in effect for outstanding borrowings at January 1, 2017 under the Alternate Base Rate option was 5.50% . On February 12, 2016, the Company entered into the third amendment to the senior credit facility which increased aggregate revolving credit borrowings to $55.0 million , extended the maturity date to February 12, 2021 and amended the definition of applicable margins. On December 19, 2014, the Company entered into the first amendment to the senior credit facility which provided for the release of $20.0 million of cash collateral, originally deposited on May 30, 2012 in an account with the Administrative Agent. The Company’s obligations under the amended senior credit facility are guaranteed by its subsidiaries and are secured by first priority liens on substantially all of the assets of the Company and its subsidiaries, including a pledge of all of the capital stock and equity interests of its subsidiaries. Under the amended senior credit facility, the Company is required to make mandatory prepayments of borrowings in the event of dispositions of assets, debt issuances and insurance and condemnation proceeds (all subject to certain exceptions). The amended senior credit facility contains certain covenants, including without limitation, those limiting the Company’s and its subsidiaries' ability to, among other things, incur indebtedness, incur liens, sell or acquire assets or businesses, change the character of its business in all material respects, engage in transactions with related parties, make certain investments, make certain restricted payments or pay dividends. In addition, the amended senior credit facility requires the Company to meet certain financial ratios, including a Fixed Charge Coverage Ratio, Adjusted Leverage Ratio and First Lien Leverage Ratio (all as defined under the amended senior credit facility). The Company was in compliance with the covenants under its senior credit facility at January 1, 2017 . The amended senior credit facility contains customary default provisions, including that the lenders may terminate their obligation to advance and may declare the unpaid balance of borrowings, or any part thereof, immediately due and payable upon the occurrence and during the continuance of customary defaults which include, without limitation, payment default, covenant defaults, bankruptcy type defaults, cross-defaults on other indebtedness, judgments or upon the occurrence of a change of control. Prior Senior Secured Second Lien Notes. On May 30, 2012, the Company issued $150 million of 11.25% Senior Secured Second Lien Notes due 2018 pursuant to an indenture governing such 11.25% Notes. Interest was payable semi-annually on May 15 and November 15. The 11.25% Notes were repurchased or redeemed in connection with the issuance of the 8.0% Notes on April 29, 2015. At January 1, 2017 , principal payments required on long-term debt, including capital leases, were as follows: 2017 $ 1,616 2018 1,738 2019 1,859 2020 1,283 2021 13,754 Thereafter 200,289 $ 220,539 The weighted average interest rate on all debt, excluding lease financing obligations, for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 was 7.9% , 8.9% and 11.2% , respectively. Interest expense on the Company’s long-term debt, excluding lease financing obligations, was $18,208 , $18,462 and $18,694 for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes was comprised of the following: Year ended January 1, 2017 January 3, 2016 December 28, 2014 Current: Federal $ — $ — $ — State — — 217 — — 217 Deferred: Federal 1,297 (2,901 ) (11,330 ) State 992 (58 ) (1,448 ) 2,289 (2,959 ) (12,778 ) Change in valuation allowance (30,374 ) 2,959 24,326 Provision (benefit) for income taxes $ (28,085 ) $ — $ 11,765 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. The components of deferred income tax assets and liabilities at January 1, 2017 and January 3, 2016 were as follows: January 1, 2017 January 3, 2016 Deferred income tax assets: Deferred income on sale-leaseback of certain real estate $ 4,714 $ 4,881 Lease financing obligations 254 242 Postretirement benefit obligations 1,255 1,229 Stock-based compensation expense 599 378 Federal net operating loss carryforwards 21,351 17,696 State net operating loss carryforwards 3,845 3,795 Goodwill and other intangibles, net 2,814 2,639 Occupancy costs 7,460 7,120 Tax credit carryforwards 21,987 13,667 Accrued vacation benefits 2,560 2,314 Accrued workers compensation 1,490 2,087 Accumulated other comprehensive income-postretirement benefits 499 — Other 2,131 1,869 Gross deferred income tax assets 70,959 57,917 Less: Valuation allowance — (30,374 ) Net deferred income tax assets $ 70,959 $ 27,543 Deferred income tax liabilities: Accumulated other comprehensive income-postretirement benefits $ — $ (42 ) Inventory and other reserves (97 ) (103 ) Property and equipment depreciation (17,599 ) (3,803 ) Franchise rights (24,422 ) (23,595 ) Total deferred income tax liabilities $ (42,118 ) $ (27,543 ) Carrying value of net deferred income tax assets $ 28,841 $ — The Company performs an assessment of positive and negative evidence regarding the realization of its net deferred income tax assets as required by ASC 740. For the years ended January 3, 2016 and December 28, 2014, the Company determined that a valuation allowance was needed for all of its net deferred income tax assets, based on the required weight of positive and negative evidence under ASC 740, including consideration of the Company’s three-year cumulative losses. During the year ended December 28, 2014, the Company recorded income tax expense of $24.3 million due to the establishment of a valuation allowance on its net deferred tax assets and during the year ended January 3, 2016 , the Company established an additional valuation allowance of $3.0 million as a result of changes in its net deferred income tax assets. During the year ended January 1, 2017, the Company evaluated evidence to consider the reversal of the valuation allowance on its net deferred income tax assets and determined in the fourth quarter of fiscal 2016 that there was sufficient positive evidence to conclude that it is more likely than not its deferred income tax assets are realizable. In determining the likelihood of future realization of the deferred income tax assets as of January 1, 2017, the Company considered both positive and negative evidence and weighted the effect of such evidence based upon its objectivity. As a result, the Company believes that the weight of the positive evidence, including the cumulative income position in the three most recent years (as adjusted for non-recurring items and permanent differences between book and tax) and forecasts for a sustained level of future taxable income, is sufficient to overcome the weight of the negative evidence, and recorded a $30.4 million tax benefit to release the full valuation allowance against the Company's deferred income tax assets in the fourth quarter of 2016. The Company's federal net operating loss carryforwards expire beginning in 2033. As of January 1, 2017 , the Company had federal net operating loss carryforwards of approximately $61.0 million . The Company’s state net operating loss carryforwards expire beginning in 2017 through 2036. A reconciliation of the statutory federal income tax benefit to the income tax provision (benefit) for the years ended January 1, 2017 , January 3, 2016 , and December 28, 2014 was as follows: Year ended January 1, 2017 January 3, 2016 December 28, 2014 Statutory federal income tax provision (benefit) $ 6,085 $ 1 $ (9,223 ) State income taxes, net of federal benefit 403 6 (749 ) Change in valuation allowance (30,374 ) 2,959 24,326 Employment tax credits (5,408 ) (2,710 ) (2,291 ) Non-deductible expenses 965 — 25 Miscellaneous 244 (256 ) (323 ) Provision (benefit) for income taxes $ (28,085 ) $ — $ 11,765 The Company's policy is to recognize interest and/or penalties related to uncertain tax positions in income tax expense. At January 1, 2017 and January 3, 2016 , the Company had no unrecognized tax benefits and no accrued interest related to uncertain tax positions. The tax years 2013 - 2016 remain open to examination by the major taxing jurisdictions to which the Company is subject. In 2014, the Company concluded an examination of its consolidated federal income tax return for the tax years 2009 through 2012. Although it is not reasonably possible to estimate the amount by which unrecognized tax benefits may increase within the next twelve months due to uncertainties regarding the timing of examinations, the Company does not expect unrecognized tax benefits to significantly change in the next twelve months. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 01, 2017 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2016 Stock Incentive Plan. In 2016, the Company adopted a stock plan entitled the 2016 Stock Incentive Plan (the “2016 Plan”) and reserved and authorized a total of 4,000,000 shares of common stock for grant thereunder. As of January 1, 2017 , 4,000,000 shares were available for future grant or issuance. 2006 Stock Incentive Plan. In 2006, the Company adopted a stock plan entitled the 2006 Stock Incentive Plan, as amended, (the “2006 Plan”) and reserved and authorized a total of 3,300,000 shares of common stock for grant thereunder. On June 9, 2011, the stockholders approved an amendment to the 2006 Plan increasing the number of shares of common stock available for issuance by an additional 1,000,000 shares. The 2006 Plan expired in 2016 and as of January 1, 2017 , no shares were available for future grant or issuance under this plan. On January 15, 2016, the Company granted 319,000 non-vested shares of stock to officers of the Company. These shares vest and become non-forfeitable 25% per year and are being expensed over their four -year vesting period. In addition, during 2016 the Company issued an aggregate of 8,140 non-vested shares of common stock to non-employee directors. The non-vested stock awards vest over five years at the rate of 20% on each anniversary date of the award, provided that the participant has continuously remained a director of the Company. Stock-based compensation expense for the years ended January 1, 2017 , January 3, 2016 , and December 28, 2014 was $2.1 million , $1.4 million and $1.2 million , respectively. A summary of all non-vested share activity for the year ended January 1, 2017 was as follows: Shares Weighted Average Grant Date Price Nonvested at January 3, 2016 468,770 $ 7.40 Granted 327,140 12.28 Vested $ (218,689 ) 6.71 Nonvested at January 1, 2017 $ 577,221 10.42 The fair value of the non-vested shares is based on the closing price of the Company's common stock on the date of grant. As of January 1, 2017 , total non-vested stock-based compensation expense was approximately $4.5 million and the remaining weighted average vesting period for non-vested shares was 2.6 years . |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Jan. 01, 2017 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred Stock [Text Block] | Preferred Stock . In 2012, Carrols Restaurant Group issued to BKC 100 shares of Series A Convertible Preferred Stock pursuant to a certificate of designation. These shares are convertible into 9,414,580 shares of Carrols Restaurant Group Common Stock ("Carrols Common Stock"). The Preferred Stock ranks senior to Carrols Common Stock with respect to rights on liquidation, winding-up and dissolution of Carrols Restaurant Group. The Preferred Stock is perpetual, will receive any dividends and amounts upon a liquidation event on an as converted basis, does not pay interest and has no mandatory prepayment features. BKC also has certain approval and voting rights as set forth in the certificate of designation for the Preferred Stock so long as it owns greater than 10.0% of the outstanding shares of Carrols Common Stock (on an as-converted basis). The Preferred Stock will vote with the Company's common stock on an as converted basis and provides for the right of BKC to elect (a) two members to the Company's board of directors until the date on which the number of shares of common stock into which the outstanding shares of the Preferred Stock held by BKC are then convertible constitutes less than 14.5% of the total number of outstanding shares of common stock and (b) one member to the Company's board of directors until BKC owns Preferred Stock (on an as converted basis to common stock) which equals less than 10.0% of the total number of outstanding shares of common stock. Common Stock Public Offering. On April 30, 2014 , the Company completed an underwritten public offering of 10.0 million shares of common stock at a price of $6.20 per share (the "Public Offering"). The Company also issued and sold an additional 1.5 million shares of common stock pursuant to the underwriters exercise of the option to purchase additional shares at the same terms and conditions as offered in the Public Offering, for a total share issuance of 11.5 million shares. All shares were issued and sold by the Company and the net proceeds received were approximately $67.3 million in the aggregate after deducting underwriting discounts and commissions and offering expenses. The Company used the net proceeds of the Public Offering to accelerate the remodeling of the Company's restaurants to BKC's 20/20 restaurant image and to acquire franchised Burger King restaurants. A shelf registration statement (including a prospectus) relating to these securities was filed by the Company with the Securities and Exchange Commission (“SEC”) and was declared effective by the SEC on February 1, 2016. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Jan. 01, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) per Share The Company applies the two-class method to calculate and present net income (loss) per share. The Company's non-vested share awards and Series A Convertible Preferred Stock issued to BKC contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income (loss) per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. As the Company incurred a net loss for the year ended December 28, 2014 and losses are not allocated to the participating securities under the two-class method, such method is not applicable for the aforementioned reporting period. Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income (loss) per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method. The following table sets forth the calculation of basic and diluted net income (loss) per share: Year ended January 1, 2017 January 3, 2016 December 28, 2014 Basic net income (loss) per share: Net income (loss) $ 45,472 $ 4 $ (38,117 ) Less: Income attributable to non-vested shares (616 ) — — Less: Income attributable to preferred stock (9,461 ) (1 ) — Net income available to common stockholders $ 35,395 $ 3 $ (38,117 ) Weighted average common shares outstanding 35,178,329 34,958,847 30,885,275 Basic net income (loss) per share $ 1.01 $ 0.00 $ (1.23 ) Diluted net income (loss) per share: Net income (loss) $ 45,472 $ 4 $ (38,117 ) Shares used in computed basic net income (loss) per share 35,178,329 34,958,847 30,885,275 Dilutive effect of preferred stock and non-vested shares 9,673,016 9,664,404 — Shares used in computed diluted net income (loss) per share 44,851,345 44,623,251 30,885,275 Diluted net income (loss) per share (1) $ 1.01 $ 0.00 $ (1.23 ) Shares excluded from diluted net income (loss) per share computation (2) — — 9,810,007 (1) Diluted net income (loss) per share is equal to basic net income (loss) per share for the periods presented due to the allocation of earnings to participating securities under the two-class method of calculating basic net income (loss) per share causing basic net income (loss) per share to be lower than diluted net income (loss) per share calculated under the treasury-stock method. (2) Shares issuable upon conversion of preferred stock and non-vested shares were excluded from the computation of diluted net loss in periods of net loss because their effect would have been anti-dilutive. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Jan. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Lease Guarantees. Fiesta Restaurant Group, Inc ("Fiesta"), a former wholly-owned subsidiary of the Company, was spun-off in 2012 to the Company's stockholders. As of January 1, 2017 , the Company is a guarantor under 27 Fiesta restaurant property leases, with lease terms expiring on various dates through 2030, and is the primary lessee on five Fiesta restaurant property leases, which it subleases to Fiesta. The Company is fully liable for all obligations under the terms of the leases in the event that Fiesta fails to pay any sums due under the lease, subject to indemnification provisions of the Separation and Distribution Agreement entered into in connection with the spin-off of Fiesta. The maximum potential amount of future undiscounted rental payments the Company could be required to make under these leases at January 1, 2017 was $25.2 million . The obligations under these leases will generally continue to decrease over time as these operating leases expire. No payments related to these guarantees have been made by the Company to date and none are expected to be required to be made in the future. The Company has not recorded a liability for these guarantees in accordance with ASC 460 - Guarantees as Fiesta has indemnified the Company for all such obligations and the Company did not believe it was probable it would be required to perform under any of the guarantees or direct obligations. Litigation. On August 21, 2012 Alan Vituli, the Company's former chairman and chief executive officer, filed an action in the Superior Court of the State of Delaware ( the “Court”) against the Company and Carrols. On July 29, 2016 the Company, Carrols, and Mr. Vituli agreed to fully resolve all of Mr. Vituli’s claims in the lawsuit for a total payment by the Company of $2.0 million. Upon the execution of releases and payment of the settlement amount, the litigation was dismissed. Net of a contribution from the Company's insurance carrier, $1.85 million is included in other income (expense) in the accompanying consolidated statements of comprehensive income (loss) for the year ended January 1, 2017. The Company is a party to various other litigation matters that arise in the ordinary course of business. The Company does not believe that the outcome of any of these other matters will have a material adverse effect on its consolidated financial statements. |
Related Parties
Related Parties | 12 Months Ended |
Jan. 01, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Transactions with Related Parties In connection with an acquisition of restaurants from BKC in 2012, the Company issued to BKC 100 shares of Series A Convertible Preferred Stock, which as of January 1, 2017 constitutes approximately 20.8% of the outstanding shares of the Company's common stock on a fully diluted basis. See Note 12—Stockholder's Equity for further information. Pursuant to the terms of the Series A Convertible Preferred Stock, BKC also has two representatives on the Company's board of directors. Each of the Company's restaurants operates under a separate franchise agreement with BKC. These franchise agreements generally provide for an initial term of twenty years and currently have an initial franchise fee of $50 . Any franchise agreement, including renewals, can be extended at the Company's discretion for an additional 20 year term, with BKC's approval, provided that, among other things, the restaurant meets the current Burger King image standard and the Company is not in default under terms of the franchise agreement. In addition to the initial franchise fee, the Company generally pays BKC a monthly royalty at a rate of 4.5% of sales. Royalty expense was $40.0 million , $36.2 million , and $29.1 million for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 , respectively. The Company is also generally required to contribute 4% of restaurant sales from the Company's restaurants to an advertising fund utilized by BKC for its advertising, promotional programs and public relations activities, and amounts for additional local advertising in markets that approve such advertising. Advertising expense associated with these expenditures was $ 40.2 million , $ 32.0 million and $27.5 million for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 , respectively. As of January 1, 2017 , January 3, 2016 , and December 28, 2014 , the Company leased 275 , 293 and 311 of its restaurant locations from BKC, respectively. As of January 1, 2017 , for 145 of the restaurants, the terms and conditions of the lease with BKC are identical to those between BKC and their third-party lessor. Aggregate rent under these BKC leases for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 was $27.8 million , $28.4 million , and $26.6 million , respectively. The Company believes the related party lease terms have not been significantly affected by the fact that the Company and BKC are deemed to be related parties. As of January 1, 2017 , the Company owed BKC $ 0.2 million associated with its purchase of the right of first refusal related to the 2012 acquisition and $ 6.3 million related to the payment of advertising, royalties and rent, which is remitted on a monthly basis. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jan. 01, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Retirement Plans The Company offers its salaried employees the option to participate in the Carrols Corporation Retirement Savings Plan (the “Retirement Plan”). The Retirement Plan includes a savings option pursuant to section 401(k) of the Internal Revenue Code in addition to a post-tax savings option. Participating employees may contribute up to 50% of their salary annually to either of the savings options, subject to other limitations. The employees may allocate their contributions to various investment options available under a trust established by the Retirement Plan. The Company may elect to contribute to the Retirement Plan on an annual basis. The Company's contribution is equal to 50% of the employee's contribution subject to a maximum annual amount and begins to vest after one year of service and fully vests after five years of service. A year of service is defined as a plan year during which an employee completes at least 1,000 hours of service. Expense recognized for the Company's contributions to the Retirement Plan was $496 , $463 and $370 for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 , respectively. The Company also has an Amended and Restated Deferred Compensation Plan which permits employees not eligible to participate in the Retirement Plan because they have been excluded as “highly compensated” employees (as so defined in the Retirement Plan) to voluntarily defer portions of their base salary and annual bonus. All amounts deferred by the participants earn interest at 8% per annum. There is no Company matching on any portion of the funds. At January 1, 2017 and January 3, 2016 , a total of $1,756 and $997 , respectively, was deferred under this plan, including accrued interest. |
Postretirement Benefits (Notes)
Postretirement Benefits (Notes) | 12 Months Ended |
Jan. 01, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Postretirement Benefits The Company sponsors a postretirement medical and life insurance plan covering substantially all administrative and restaurant management personnel who retire or terminate after qualifying for such benefits. The following was the plan status and accumulated postretirement benefit obligation (APBO) at January 1, 2017 and January 3, 2016 : January 1, 2017 January 3, 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 3,060 $ 3,121 Service cost 150 127 Interest cost 165 114 Plan participants' contributions 98 101 Actuarial loss (gain) 1,251 (214 ) Benefits paid (164 ) (220 ) Medicare part D prescription drug subsidy 6 31 Benefit obligation at end of year $ 4,566 $ 3,060 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 60 88 Plan participants' contributions 98 101 Benefits paid (164 ) (220 ) Medicare part D prescription drug subsidy 6 31 Fair value of plan assets at end of year — — Funded status $ (4,566 ) $ (3,060 ) Weighted average assumptions: Discount rate used to determine benefit obligations 4.11 % 4.25 % Discount rate used to determine net periodic benefit cost 4.25 % 3.83 % The discount rate is determined based on high-quality fixed income investments that match the duration of expected retiree medical and life insurance benefits. The Company has typically used the corporate AA/Aa bond rate for this assumption. The actuarial loss in 2016 was due primarily to the Company utilizing updated actuarial data affecting the Medicare Part D prescription drug subsidy. Components of net periodic postretirement benefit income recognized in the consolidated statements of operations were: Year ended January 1, 2017 January 3, 2016 December 28, 2014 Service cost $ 150 $ 127 $ 85 Interest cost 165 114 92 Amortization of net gains and losses 197 163 104 Amortization of prior service credit (355 ) (355 ) (355 ) Net periodic postretirement benefit expense (income) $ 157 $ 49 $ (74 ) Amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit income, consisted of: Year ended January 1, 2017 January 3, 2016 Prior service credit $ 1,972 $ 2,327 Net loss (3,272 ) (2,218 ) Deferred income taxes 97 (444 ) Accumulated other comprehensive loss $ (1,203 ) $ (335 ) The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit income over the next fiscal year is $211 . The amount of prior service credit for the postretirement benefit plan that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit income over the next fiscal year is $355 . The following table reflects the changes in accumulated other comprehensive income for the years ended January 1, 2017 and January 3, 2016 : Year ended January 1, 2017 January 3, 2016 Net actuarial loss (gain) $ 1,251 $ (214 ) Amortization of net loss (197 ) (163 ) Amortization of prior service credit 355 355 Deferred income taxes (541 ) — Total recognized in accumulated other comprehensive loss $ 868 $ (22 ) Assumed health care cost trend rates at year end were as follows: January 1, 2017 January 3, 2016 December 28, 2014 Medical benefits cost trend rate assumed for the following year pre-65 7.50 % 7.75 % 8.00 % Medical benefits cost trend rate assumed for the following year post-65 6.50 % 6.75 % 7.00 % Prescription drug benefit cost trend rate assumed for the following year 10.50 % 11.00 % 9.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 3.89 % 3.89 % 3.89 % Year that the rate reaches the ultimate trend rate 2075 2075 2075 The assumed healthcare cost trend rate represents the Company's estimate of the annual rates of change in the costs of the healthcare benefits currently provided by the Company's postretirement plan. The healthcare cost trend rate implicitly considers estimates of healthcare inflation, changes in healthcare utilization and delivery patterns, technological advances and changes in the health status of the plan participants. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in the health care cost trend rates would have the following effects: 1% Point Increase 1% Point Decrease Effect on total of service and interest cost components $ 89 $ 64 Effect on postretirement benefit obligation 966 731 During 2017 , the Company expects to contribute approximately $145 to its postretirement benefit plan. The benefits, net of Medicare Part D subsidy receipts, expected to be paid in each year from 2017 through 2021 are $145 , $165 , $167 , $166 and $173 respectively, and for the years 2022-2026 the aggregate amount is $1,092 . |
Selected Quarterly Financial an
Selected Quarterly Financial and Earnings Data (Unaudited) (Notes) | 12 Months Ended |
Jan. 01, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Selected Quarterly Financial Data (Unaudited) Year Ended January 1, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Restaurant sales $ 222,519 (1) $ 241,368 (1) $ 238,870 (1) $ 240,826 (1) Income from operations 6,680 (1)(2) 13,896 (1)(2) 9,049 (1)(2) 6,077 (1)(2) Net income 2,145 9,376 4,489 29,462 (3) Basic and diluted net income per share 0.05 0.21 0.10 0.65 Restaurants at end of period 717 723 734 753 (4) Year Ended January 3, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (7) Restaurant sales $ 193,170 $ 219,102 (5) $ 217,676 (5) $ 229,056 (5) Income (loss) from operations (4,462) (5)(6) 12,358 (5)(6) 11,751 (5)(6) 11,561 (5)(6) Net loss (9,276) (4,977) 7,239 7,018 Basic and diluted net income (loss) per share (0.27 ) (0.14 ) 0.16 0.16 Restaurants at end of period 659 657 660 705 (1) In fiscal 2016 the Company acquired 12 restaurants in the first quarter, six restaurants in the second quarter, 11 restaurants in the third quarter and 27 restaurants in the fourth quarter (See Note 2). In fiscal 2016 the Company recorded acquisition costs related to the 2016 and 2015 acquisitions of $0.4 million in the first quarter, $0.2 million in the second quarter, $0.5 million in the third quarter and $0.8 million in the fourth quarter (See Note 2). (2) In fiscal 2016 the Company recorded impairment and other lease charges of $0.2 million in the first quarter, $0.3 million in the second quarter, $0.7 million in the third quarter and $1.2 million in the fourth quarter (See Note 5). Also in fiscal 2016, the Company recorded a gain of $0.5 million related to a settlement for a partial condemnation on one of its operating restaurant properties in the first quarter, expense of $1.85 million related to the settlement of litigation with its former Chairman and CEO in the second quarter (see Note 14), a gain of $0.5 million related to property insurance recoveries from a fire at one of its restaurants in the second quarter and a gain of $0.7 million related to property insurance recoveries from a fire at one of its restaurants in the fourth quarter (see Note 9). (3) In the fourth quarter of 2016, the Company recorded an income tax benefit of $30.4 million related to the reversal of the valuation allowance previously recorded on all of the Company's net deferred tax assets (See Note 10). (4) The Company closed nine restaurants at the end of the fourth quarter of 2016. (5) In fiscal 2015 the Company acquired four restaurants in the second quarter, five restaurants in the third quarter and 46 restaurants in the fourth quarter (See Note 2). In fiscal 2015 the Company recorded acquisition costs related to the 2015 and 2014 acquisitions of $0.2 million in the first quarter, $0.1 million in the third quarter and $0.8 million in the fourth quarter (See Note 2). (6) In fiscal 2015 the Company recorded impairment and other lease charges of $1.6 million in the first quarter, $0.7 million in the second quarter, $0.4 million in the third quarter and $0.3 million in the fourth quarter (See Note 5). (7) The fourth quarter of fiscal 2015 contained 14 weeks. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Jan. 01, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Column B Column C Column D Column E Description Balance at Beginning of Period Charged to Costs and Expenses Charged to other accounts Deductions Balance at End of Period Year Ended January 1, 2017 Deferred income tax valuation allowance $ 30,374 $ — $ — $ (30,374 ) $ — Year Ended January 3, 2016 Deferred income tax valuation allowance 27,423 $ 2,959 $ (8 ) — 30,374 Year Ended December 28, 2014 Deferred income tax valuation allowance 2,687 24,326 410 — 27,423 |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 12 Months Ended |
Jan. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation [Policy Text Block] | Basis of Consolidation. Carrols Restaurant Group is a holding company and conducts all of its operations through its wholly-owned subsidiary, Carrols Corporation (“Carrols”) and Carrols' wholly-owned subsidiary, Carrols LLC, a Delaware limited liability company . The consolidated financial statements presented herein include the accounts of Carrols Restaurant Group and its wholly-owned subsidiary Carrols. Unless the context otherwise requires, Carrols Restaurant Group, Carrols and Carrols LLC are collectively referred to as the “Company.” All intercompany transactions have been eliminated in consolidation. |
Fiscal Period [Policy Text Block] | Fiscal Year. The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to December 31. The fiscal years ended January 1, 2017 and December 28, 2014 each contained 52 weeks and the fiscal year ended January 3, 2016 contained 53 weeks. |
Use of Estimates [Policy Text Block] | Use of Estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include: accrued occupancy costs, insurance liabilities, the evaluation for impairment of goodwill, long-lived assets and franchise rights, lease accounting matters, the valuation of assets and liabilities acquired and the valuation of deferred income tax assets. Actual results could differ from those estimates. |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Inventory [Policy Text Block] | Inventories. Inventories, primarily consisting of food and paper, are stated at the lower of cost or market. |
Property and Equipment [Policy Text Block] | Property and Equipment. The Company capitalizes all direct costs incurred to construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Property and equipment is recorded at cost. Repair and maintenance activities are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Owned buildings 9 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to capital leases Shorter of useful life or lease term Leasehold improvements are depreciated over the shorter of their estimated useful lives or the underlying lease term. In circumstances where an economic penalty would be presumed by the non-exercise of one or more renewal options under the lease, the Company includes those renewal option periods when determining the lease term. For significant leasehold improvements made during the latter part of the lease term, the Company amortizes those improvements over the shorter of their useful life or the expected lease term. The expected lease term would consider the exercise of renewal options if the value of the improvements would imply that an economic penalty would be incurred without the renewal of the option. Building costs incurred for new restaurants on leased land are depreciated over the lease term, which is generally a period of twenty years . |
Business Combinations Policy [Policy Text Block] | Business Combinations. In accordance with ASC 805, the Company allocates the purchase price of an acquired business to its net identifiable assets and liabilities based on the estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. The Company uses all available information to estimate fair values of identifiable intangible assets and property acquired. In making these determinations, the Company may engage an independent third party valuation specialist to assist with the valuation of certain leasehold improvements, franchise rights and favorable and unfavorable leases. |
Intangible Assets [Policy Text Block] | Franchise Rights. For its restaurant acquisitions prior to 2002, the Company generally allocated to franchise rights, an intangible asset, the excess of purchase price and related costs over the value assigned to the net tangible and intangible assets acquired. For acquisitions subsequent to 2002, the Company determined the fair value of franchise rights based upon the acquired restaurants' future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment and assembled workforce to determine the fair value attributable to these franchise rights. Amounts allocated to franchise rights for each acquisition are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. Franchise Agreements. Fees for initial franchises and renewals are amortized using the straight-line method over the term of the agreement, which is generally twenty years . Favorable and Unfavorable Leases. Favorable and unfavorable leases are due to the terms of acquired operating lease contracts being favorable or unfavorable relative to market terms of comparable leases on the acquisition date. Favorable and unfavorable leases are amortized as a component of rent expense on a straight-line basis over the remaining lease terms at the time of the acquisition. Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. |
Goodwill [Policy Text Block] | Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year. In performing its goodwill impairment test, the Company compared the net book value of its reporting unit to its estimated fair value, the latter determined by employing a combination of a discounted cash flow analysis and a market-based approach. |
Impairment or Disposal of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets. The Company assesses the recoverability of property and equipment, franchise rights and other intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining useful lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. |
Deferred Financing Costs [Policy Text Block] | Deferred Financing Costs. Financing costs incurred in obtaining long-term debt and lease financing obligations are capitalized and amortized over the life of the related obligation as interest expense using the effective interest method. |
Leases [Policy Text Block] | Leases. All leases are reviewed for capital or operating classification at their inception. The majority of the Company’s leases are operating leases. Many of the lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including any option periods included in the determination of the lease term. Contingent rentals are generally based upon a percentage of sales or a percentage of sales in excess of stipulated amounts and are generally not considered minimum rent payments but are recognized as rent expense when incurred. The Company utilizes land and buildings in its operations under various lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for twenty years and, in many cases, provide for renewal options and in most cases rent escalations. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. |
Lease Financing Obligations [Policy Text Block] | Lease Financing Obligations. Lease financing obligations pertain to real estate sale-leaseback transactions accounted for under the financing method. The assets (land and building) subject to these obligations remain on the Company’s consolidated balance sheet at their historical costs and such assets (excluding land) continue to be depreciated over their remaining useful lives. The proceeds received by the Company from these transactions are recorded as lease financing obligations and the lease payments are applied as payments of principal and interest. The selection of the interest rate on lease financing obligations is evaluated at inception of the lease based on the Company’s incremental borrowing rate adjusted to the rate required to prevent recognition of a non-cash loss or negative amortization of the obligation through the end of the primary lease term. |
Revenue Recognition [Policy Text Block] | Revenue Recognition . Revenues from Company restaurants are recognized when payment is tendered at the time of sale, net of sales discounts and excluding sales tax collected. |
Income Tax [Policy Text Block] | Income Taxes. Deferred income tax assets and liabilities are based on the difference between the financial statement and tax bases of assets and liabilities as measured by the tax rates that are anticipated to be in effect when those differences reverse. The deferred tax provision generally represents the net change in deferred tax assets and liabilities during the period including any changes in valuation allowances. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established when it is necessary to reduce deferred tax assets to an amount for which realization is likely. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company and its subsidiary file a consolidated federal income tax return. |
Advertising Costs [Policy Text Block] | Advertising Costs. All advertising costs are expensed as incurred. |
Cost of Sales [Policy Text Block] | Cost of Sales. The Company includes the cost of food, beverage and paper, net of any vendor discounts and rebates, in cost of sales. |
Pre-opening Costs [Policy Text Block] | Pre-opening Costs. The Company’s pre-opening costs are expensed as incurred and generally include payroll costs associated with the opening of a new restaurant, rent and promotional costs. |
Insurance [Policy Text Block] | Insurance. The Company is self-insured for workers’ compensation, general liability and medical insurance claims under policies where it pays all claims, subject to stop-loss limitations both for individual claims and in certain cases claims in the aggregate. Losses are accrued based upon the Company’s estimates of the aggregate liability for claims based on Company experience and other methods used to measure such estimates. The Company does not discount any of its self-insurance obligations. |
Fair Value of Financial Instruments [Policy Text Block] | Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. Financial instruments include cash, trade and other receivables, accounts payable and long-term debt. The carrying amounts of cash, trade and other receivables and accounts payable approximate fair value because of the short-term nature of these financial instruments. The fair value of the Carrols Restaurant Group 8.0% Senior Secured Second Lien Notes due 2022 is based on a recent trading value, which is considered Level 2, and at January 1, 2017 and January 3, 2016 was approximately $216.5 million and $212.0 million , respectively. Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of long-lived assets, goodwill and intangible assets. Long-lived assets and definite-lived intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. |
Stock-based Compensation [Policy Text Block] | Stock-Based Compensation. The Company has an incentive stock plan under which incentive stock options, non-qualified stock options and non-vested shares may be granted to employees and non-employee directors. On an annual basis, the Company has granted non-vested shares under this plan. Non-vested shares granted to corporate employees generally vest on a straight-line basis over three or four years and non-vested shares granted to non-employee directors generally vest on a straight-line basis over three to five years . For non-vested stock awards, the fair market value of the award, determined based upon the closing value of the Company’s stock price on the grant date, is recorded to compensation expense on a straight-line basis over the requisite service period. See Note 11 to the consolidated financial statements. |
Gift Cards [Policy Text Block] | Gift cards. The Company sells gift cards in its restaurants that are issued under BKC's gift card program. Proceeds from the sale of Burger King gift cards at the Company’s restaurants are received by BKC. The Company recognizes revenue from gift cards upon redemption by the customer. |
Concentrations of Credit Risk [Policy Text Block] | Concentrations of Credit Risk. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains its day-to-day operating cash balances in interest-bearing transaction accounts at financial institutions, which are insured by the Federal Deposit Insurance Corporation up to $250,000 . Although the Company maintains balances that exceed the federally insured limit, it has not experienced any losses related to these balances and believes its credit risk to be minimal. |
Segment Information [Policy Text Block] | Segment Information. Operating segments are components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker in order to allocate resources and assess performance. The Company's chief operating decision maker currently evaluates the Company's operations from a number of different operational perspectives, however resource allocation decisions are made on a total-company basis. The Company derives all significant revenues from a single operating segment. Accordingly, the Company views the operating results of its Burger King restaurants as one reportable segment. |
Subsequent Events [Policy Text Block] | Subsequent Events. The Company reviewed and evaluated subsequent events through the issuance date of the Company’s consolidated financial statements. On February 28, 2017 , the Company acquired 43 Burger King restaurants located in and around the Cincinnati, Ohio market for a cash purchase price of $20.4 million , which included inventory, restaurant equipment and intangible assets. |
Intangible Assets (Policies)
Intangible Assets (Policies) | 12 Months Ended |
Jan. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill [Policy Text Block] | Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year. In performing its goodwill impairment test, the Company compared the net book value of its reporting unit to its estimated fair value, the latter determined by employing a combination of a discounted cash flow analysis and a market-based approach. |
Intangible Assets [Policy Text Block] | Franchise Rights. For its restaurant acquisitions prior to 2002, the Company generally allocated to franchise rights, an intangible asset, the excess of purchase price and related costs over the value assigned to the net tangible and intangible assets acquired. For acquisitions subsequent to 2002, the Company determined the fair value of franchise rights based upon the acquired restaurants' future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment and assembled workforce to determine the fair value attributable to these franchise rights. Amounts allocated to franchise rights for each acquisition are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. Franchise Agreements. Fees for initial franchises and renewals are amortized using the straight-line method over the term of the agreement, which is generally twenty years . Favorable and Unfavorable Leases. Favorable and unfavorable leases are due to the terms of acquired operating lease contracts being favorable or unfavorable relative to market terms of comparable leases on the acquisition date. Favorable and unfavorable leases are amortized as a component of rent expense on a straight-line basis over the remaining lease terms at the time of the acquisition. Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. |
Impairment Of Long-Lived Asse29
Impairment Of Long-Lived Assets And Other Lease Charges (Policies) | 12 Months Ended |
Jan. 01, 2017 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Impairment or Disposal of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets. The Company assesses the recoverability of property and equipment, franchise rights and other intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining useful lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. |
Leases (Policies)
Leases (Policies) | 12 Months Ended |
Jan. 01, 2017 | |
Leases [Abstract] | |
Leases [Policy Text Block] | Leases. All leases are reviewed for capital or operating classification at their inception. The majority of the Company’s leases are operating leases. Many of the lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including any option periods included in the determination of the lease term. Contingent rentals are generally based upon a percentage of sales or a percentage of sales in excess of stipulated amounts and are generally not considered minimum rent payments but are recognized as rent expense when incurred. The Company utilizes land and buildings in its operations under various lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for twenty years and, in many cases, provide for renewal options and in most cases rent escalations. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. |
Net Income (Loss) Per Share Ear
Net Income (Loss) Per Share Earnings per share narrative (Policies) | 12 Months Ended |
Jan. 01, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | The Company applies the two-class method to calculate and present net income (loss) per share. The Company's non-vested share awards and Series A Convertible Preferred Stock issued to BKC contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income (loss) per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. As the Company incurred a net loss for the year ended December 28, 2014 and losses are not allocated to the participating securities under the two-class method, such method is not applicable for the aforementioned reporting period. Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income (loss) per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method. |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property and equipment [Table Text Block] | The Company capitalizes all direct costs incurred to construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Property and equipment is recorded at cost. Repair and maintenance activities are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Owned buildings 9 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to capital leases Shorter of useful life or lease term Property and equipment at January 1, 2017 and January 3, 2016 consisted of the following: January 1, 2017 January 3, 2016 Land $ 8,112 $ 19,126 Owned buildings 9,174 13,625 Leasehold improvements 265,008 215,673 Equipment 203,412 181,283 Assets subject to capital leases 16,948 16,547 502,654 446,254 Less accumulated depreciation and amortization (254,807 ) (226,140 ) $ 247,847 $ 220,114 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | During the year ended January 1, 2017, the Company acquired a total of 56 restaurants from other franchisees, which are referred to as the "2016 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Number of Fee-Owned Restaurants (1) Market Location February 23, 2016 (2) 12 $ 7,127 Scranton/Wilkes-Barre, Pennsylvania May 25, 2016 6 12,080 5 Detroit, Michigan July 14, 2016 (2) 4 5,445 3 Detroit, Michigan August 23, 2016 7 8,755 6 Portland, Maine October 4, 2016 3 1,623 Raleigh, North Carolina November 15, 2016 17 7,251 Pittsburgh and Johnstown, Pennsylvania December 1, 2016 7 5,807 1 Columbus, Ohio 56 $ 48,088 15 During the year ended January 3, 2016, the Company acquired an aggregate of 55 restaurants from other franchisees, which are referred to as the "2015 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Number of Fee-Owned Restaurants (1) Market Location March 31, 2015 4 $ 794 Northern Vermont August 4, 2015 5 663 Charlotte, North Carolina October 1, 2015 (2) 5 5,044 1 Wheeling, West Virginia October 20, 2015 1 709 Kalamazoo, Michigan November 17, 2015 2 618 Evansville, Indiana November 17, 2015 (2) 6 10,945 5 Evansville, Indiana December 1, 2015 (2) 23 26,175 10 Detroit, Michigan December 8, 2015 9 7,802 Northern New Jersey 55 $ 52,750 16 (1) The 2015 acquisitions included the purchase of 16 fee-owned properties. Three of these fee-owned properties were sold in sale-leaseback transactions during the fourth quarter of 2015 for net proceeds of $4.3 million and 12 fee-owned properties were sold in sale-leaseback transactions during 2016 for net proceeds of $17.7 million . (2) Acquisitions resulting from the exercise of the ROFR. During the year ended December 28, 2014, the Company acquired an aggregate of 123 restaurants from other franchisees, which are referred to as the "2014 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Number of Fee-Owned Restaurants (1) Market Location April 30, 2014 (2) 4 $ 681 Fort Wayne, Indiana June 30, 2014 (2) 4 3,819 1 Pittsburgh, Pennsylvania July 22, 2014 21 8,609 Rochester, New York and Southern Tier of Western New York October 8, 2014 (2) 30 20,330 12 Wilmington and Greenville, North Carolina November 4, 2014 (3) 64 18,761 Nashville, Tennessee; Indiana and Illinois 123 $ 52,200 13 (1) The 2014 acquisitions included the purchase of 13 fee-owned properties. Ten of these fee-owned properties were sold in sale-leaseback transactions during the fourth quarter of 2014 for net proceeds of $13.0 million and one property was sold in a sale-leaseback transaction in 2015 for net proceeds of $1.1 million . (2) Acquisitions resulting from the exercise of the ROFR. (3) In connection with the acquisition on November 4, 2014 , the Company entered into an agreement with BKC to remodel 46 of the restaurants acquired over a five-year period beginning in 2014. |
Schedule of Purchase Price Allocation [Table Text Block] | The following table summarizes the final allocation of the aggregate purchase price for the seven 2016 acquisitions: Inventory $ 558 Land and buildings 19,387 Restaurant equipment 1,599 Restaurant equipment - subject to capital lease 435 Leasehold improvements 2,464 Franchise fees 1,121 Franchise rights 21,202 Favorable leases 390 Deferred taxes 216 Goodwill 2,431 Capital lease obligations for restaurant equipment (492 ) Unfavorable leases (1,152 ) Other liabilities (71 ) Net assets acquired $ 48,088 The following table summarizes the final allocation of the aggregate purchase price for the eight 2015 acquisitions: Inventory $ 544 Land and buildings 22,614 Restaurant equipment 2,844 Restaurant equipment - subject to capital lease 443 Leasehold improvements 1,770 Franchise fees 1,000 Franchise rights 20,666 Favorable leases 1,475 Goodwill 2,645 Capital lease obligations for restaurant equipment (494 ) Unfavorable leases (324 ) Other liabilities (433 ) Net assets acquired $ 52,750 The following table summarizes the final allocation of the aggregate purchase price for the five 2014 acquisitions: Inventory $ 1,267 Land and buildings 15,955 Restaurant equipment 5,818 Restaurant equipment - subject to capital lease 1,381 Leasehold improvements 1,804 Franchise fees 3,064 Franchise rights 17,098 Favorable leases 2,096 Deferred income taxes 1,526 Other assets 65 Goodwill 9,631 Capital lease obligation for restaurant equipment (1,458 ) Unfavorable leases (5,912 ) Other liabilities (135 ) Net assets acquired $ 52,200 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table summarizes the Company's unaudited proforma operating results: Year Ended (53 weeks) (52 weeks) January 3, 2016 December 28, 2014 Restaurant sales $ 918,456 $ 862,357 Net income (loss) $ 6,447 $ (27,252 ) Basic and diluted net income (loss) per share $ 0.14 $ (0.88 ) The following table summarizes the Company's unaudited proforma operating results: Year Ended (52 weeks) (53 weeks) January 1, 2017 January 3, 2016 Restaurant sales $ 984,164 $ 986,935 Net income $ 48,264 (1) $ 12,078 Basic and diluted net income per share $ 1.07 $ 0.27 The following table summarizes the Company's unaudited proforma operating results: Year ended December 28, 2014 Restaurant sales $ 793,521 Net loss $ (31,364 ) Basic and diluted net loss per share $ (1.02 ) |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The weighted average amortization period of the intangible assets acquired is as follows: 2016 Acquisitions 2015 Acquisitions 2014 Acquisitions Favorable leases 15.4 15.5 13.4 Unfavorable leases 12.0 6.5 15.0 Franchise rights 28.0 26.6 30.4 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment [Table Text Block] | The Company capitalizes all direct costs incurred to construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Property and equipment is recorded at cost. Repair and maintenance activities are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Owned buildings 9 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to capital leases Shorter of useful life or lease term Property and equipment at January 1, 2017 and January 3, 2016 consisted of the following: January 1, 2017 January 3, 2016 Land $ 8,112 $ 19,126 Owned buildings 9,174 13,625 Leasehold improvements 265,008 215,673 Equipment 203,412 181,283 Assets subject to capital leases 16,948 16,547 502,654 446,254 Less accumulated depreciation and amortization (254,807 ) (226,140 ) $ 247,847 $ 220,114 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Goodwill [Line Items] | |
Schedule of Goodwill [Table Text Block] | Goodwill at December 28, 2014 $ 17,793 Acquisitions of restaurants (Note 2) 2,645 Goodwill at January 3, 2016 20,438 Acquisitions of restaurants (Note 2) 2,431 Goodwill at January 1, 2017 $ 22,869 |
Intangible Assets [Table Text Block] | The following is a summary of the Company’s franchise rights as of the respective balance sheet dates: January 1, 2017 January 3, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Franchise rights $ 227,952 $ 93,799 $ 206,750 $ 87,869 The following is a summary of the Company’s favorable and unfavorable leases as of the respective balance sheet dates, which are included as assets and liabilities, respectively, on the accompanying consolidated balance sheets: January 1, 2017 January 3, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Favorable leases $ 7,201 $ 1,760 $ 6,991 $ 1,339 Unfavorable leases $ 16,329 $ 4,643 $ 15,448 $ 3,444 |
Impairment Of Long-Lived Asse36
Impairment Of Long-Lived Assets And Other Lease Charges (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Closed Restaurant Reserve [Table Text Block] | The following table presents the activity in the accrual for closed restaurant locations: January 1, 2017 January 3, 2016 Balance, beginning of year $ 2,088 $ 1,721 Provisions for restaurant closures 59 1,472 Changes in estimates of accrued costs (89 ) (95 ) Payments, net (691 ) (1,228 ) Other adjustments, including the effect of discounting future obligations 146 218 Balance, end of year $ 1,513 $ 2,088 |
Other Liabilities, Long-Term (T
Other Liabilities, Long-Term (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Liabilities, Noncurrent [Abstract] | |
Schedule of Other Liabilities [Table Text Block] | Other liabilities, long-term, at January 1, 2017 and January 3, 2016 consisted of the following: January 1, 2017 January 3, 2016 Deferred rent $ 11,498 $ 9,620 Other accrued occupancy costs 3,254 2,581 Accrued workers’ compensation and general liability claims 3,364 3,606 Deferred compensation 1,756 997 Other 158 311 $ 20,030 $ 17,115 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Leases [Abstract] | |
Schedule of minimum rent commitments [Table Text Block] | Minimum rent commitments under capital and non-cancelable operating leases at January 1, 2017 were as follows : Fiscal year ending: Capital Operating December 31, 2017 $ 2,067 $ 62,739 December 30, 2018 2,073 61,595 December 29, 2019 2,068 60,546 January 3, 2021 1,367 59,207 January 2, 2022 292 58,067 Thereafter 338 615,545 Total minimum lease payments 8,205 $ 917,699 Less amount representing interest (1,166 ) Total obligations under capital leases 7,039 Less current portion (1,616 ) Long-term obligations under capital leases $ 5,423 |
Schedule of rent expense [Table Text Block] | otal rent expense on operating leases, including contingent rent on both operating and capital leases, was as follows: Year ended January 1, 2017 January 3, 2016 December 28, 2014 Minimum rent on real property $ 59,076 $ 53,085 $ 45,371 Contingent rent on real property 5,738 5,011 3,494 Restaurant rent expense 64,814 58,096 48,865 Administrative and equipment rent 267 276 264 $ 65,081 $ 58,372 $ 49,129 |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt at January 1, 2017 and January 3, 2016 consisted of the following: January 1, 2017 January 3, 2016 Collateralized: Carrols Restaurant Group 8% Senior Secured Second Lien Notes $ 200,000 $ 200,000 Senior Credit Facility - Revolving credit borrowings 13,500 — Capital leases 7,039 8,006 220,539 208,006 Less: current portion (1,616 ) (1,435 ) Less: deferred financing costs (3,815 ) (4,529 ) $ 215,108 $ 202,042 |
Schedule of Maturities of Long-term Debt [Table Text Block] | At January 1, 2017 , principal payments required on long-term debt, including capital leases, were as follows: 2017 $ 1,616 2018 1,738 2019 1,859 2020 1,283 2021 13,754 Thereafter 200,289 $ 220,539 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes was comprised of the following: Year ended January 1, 2017 January 3, 2016 December 28, 2014 Current: Federal $ — $ — $ — State — — 217 — — 217 Deferred: Federal 1,297 (2,901 ) (11,330 ) State 992 (58 ) (1,448 ) 2,289 (2,959 ) (12,778 ) Change in valuation allowance (30,374 ) 2,959 24,326 Provision (benefit) for income taxes $ (28,085 ) $ — $ 11,765 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred income tax assets and liabilities at January 1, 2017 and January 3, 2016 were as follows: January 1, 2017 January 3, 2016 Deferred income tax assets: Deferred income on sale-leaseback of certain real estate $ 4,714 $ 4,881 Lease financing obligations 254 242 Postretirement benefit obligations 1,255 1,229 Stock-based compensation expense 599 378 Federal net operating loss carryforwards 21,351 17,696 State net operating loss carryforwards 3,845 3,795 Goodwill and other intangibles, net 2,814 2,639 Occupancy costs 7,460 7,120 Tax credit carryforwards 21,987 13,667 Accrued vacation benefits 2,560 2,314 Accrued workers compensation 1,490 2,087 Accumulated other comprehensive income-postretirement benefits 499 — Other 2,131 1,869 Gross deferred income tax assets 70,959 57,917 Less: Valuation allowance — (30,374 ) Net deferred income tax assets $ 70,959 $ 27,543 Deferred income tax liabilities: Accumulated other comprehensive income-postretirement benefits $ — $ (42 ) Inventory and other reserves (97 ) (103 ) Property and equipment depreciation (17,599 ) (3,803 ) Franchise rights (24,422 ) (23,595 ) Total deferred income tax liabilities $ (42,118 ) $ (27,543 ) Carrying value of net deferred income tax assets $ 28,841 $ — |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the statutory federal income tax benefit to the income tax provision (benefit) for the years ended January 1, 2017 , January 3, 2016 , and December 28, 2014 was as follows: Year ended January 1, 2017 January 3, 2016 December 28, 2014 Statutory federal income tax provision (benefit) $ 6,085 $ 1 $ (9,223 ) State income taxes, net of federal benefit 403 6 (749 ) Change in valuation allowance (30,374 ) 2,959 24,326 Employment tax credits (5,408 ) (2,710 ) (2,291 ) Non-deductible expenses 965 — 25 Miscellaneous 244 (256 ) (323 ) Provision (benefit) for income taxes $ (28,085 ) $ — $ 11,765 |
Stock-based Compensation Stock-
Stock-based Compensation Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of all non-vested share activity for the year ended January 1, 2017 was as follows: Shares Weighted Average Grant Date Price Nonvested at January 3, 2016 468,770 $ 7.40 Granted 327,140 12.28 Vested $ (218,689 ) 6.71 Nonvested at January 1, 2017 $ 577,221 10.42 |
Net Income (Loss) Per Share E42
Net Income (Loss) Per Share Earnings per Share Table (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the calculation of basic and diluted net income (loss) per share: Year ended January 1, 2017 January 3, 2016 December 28, 2014 Basic net income (loss) per share: Net income (loss) $ 45,472 $ 4 $ (38,117 ) Less: Income attributable to non-vested shares (616 ) — — Less: Income attributable to preferred stock (9,461 ) (1 ) — Net income available to common stockholders $ 35,395 $ 3 $ (38,117 ) Weighted average common shares outstanding 35,178,329 34,958,847 30,885,275 Basic net income (loss) per share $ 1.01 $ 0.00 $ (1.23 ) Diluted net income (loss) per share: Net income (loss) $ 45,472 $ 4 $ (38,117 ) Shares used in computed basic net income (loss) per share 35,178,329 34,958,847 30,885,275 Dilutive effect of preferred stock and non-vested shares 9,673,016 9,664,404 — Shares used in computed diluted net income (loss) per share 44,851,345 44,623,251 30,885,275 Diluted net income (loss) per share (1) $ 1.01 $ 0.00 $ (1.23 ) Shares excluded from diluted net income (loss) per share computation (2) — — 9,810,007 (1) Diluted net income (loss) per share is equal to basic net income (loss) per share for the periods presented due to the allocation of earnings to participating securities under the two-class method of calculating basic net income (loss) per share causing basic net income (loss) per share to be lower than diluted net income (loss) per share calculated under the treasury-stock method. (2) Shares issuable upon conversion of preferred stock and non-vested shares were excluded from the computation of diluted net loss in periods of net loss because their effect would have been anti-dilutive. |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Funded Status [Table Text Block] | The following was the plan status and accumulated postretirement benefit obligation (APBO) at January 1, 2017 and January 3, 2016 : January 1, 2017 January 3, 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 3,060 $ 3,121 Service cost 150 127 Interest cost 165 114 Plan participants' contributions 98 101 Actuarial loss (gain) 1,251 (214 ) Benefits paid (164 ) (220 ) Medicare part D prescription drug subsidy 6 31 Benefit obligation at end of year $ 4,566 $ 3,060 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 60 88 Plan participants' contributions 98 101 Benefits paid (164 ) (220 ) Medicare part D prescription drug subsidy 6 31 Fair value of plan assets at end of year — — Funded status $ (4,566 ) $ (3,060 ) Weighted average assumptions: Discount rate used to determine benefit obligations 4.11 % 4.25 % Discount rate used to determine net periodic benefit cost 4.25 % 3.83 % |
Schedule of Net Benefit Costs [Table Text Block] | Components of net periodic postretirement benefit income recognized in the consolidated statements of operations were: Year ended January 1, 2017 January 3, 2016 December 28, 2014 Service cost $ 150 $ 127 $ 85 Interest cost 165 114 92 Amortization of net gains and losses 197 163 104 Amortization of prior service credit (355 ) (355 ) (355 ) Net periodic postretirement benefit expense (income) $ 157 $ 49 $ (74 ) |
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block] | Amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit income, consisted of: Year ended January 1, 2017 January 3, 2016 Prior service credit $ 1,972 $ 2,327 Net loss (3,272 ) (2,218 ) Deferred income taxes 97 (444 ) Accumulated other comprehensive loss $ (1,203 ) $ (335 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The following table reflects the changes in accumulated other comprehensive income for the years ended January 1, 2017 and January 3, 2016 : Year ended January 1, 2017 January 3, 2016 Net actuarial loss (gain) $ 1,251 $ (214 ) Amortization of net loss (197 ) (163 ) Amortization of prior service credit 355 355 Deferred income taxes (541 ) — Total recognized in accumulated other comprehensive loss $ 868 $ (22 ) |
Schedule of Health Care Cost Trend Rates [Table Text Block] | Assumed health care cost trend rates at year end were as follows: January 1, 2017 January 3, 2016 December 28, 2014 Medical benefits cost trend rate assumed for the following year pre-65 7.50 % 7.75 % 8.00 % Medical benefits cost trend rate assumed for the following year post-65 6.50 % 6.75 % 7.00 % Prescription drug benefit cost trend rate assumed for the following year 10.50 % 11.00 % 9.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 3.89 % 3.89 % 3.89 % Year that the rate reaches the ultimate trend rate 2075 2075 2075 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one-percentage-point change in the health care cost trend rates would have the following effects: 1% Point Increase 1% Point Decrease Effect on total of service and interest cost components $ 89 $ 64 Effect on postretirement benefit obligation 966 731 |
Selected Quarterly Financial 44
Selected Quarterly Financial and Earnings Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Selected Quarterly Financial Data (Unaudited) Year Ended January 1, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Restaurant sales $ 222,519 (1) $ 241,368 (1) $ 238,870 (1) $ 240,826 (1) Income from operations 6,680 (1)(2) 13,896 (1)(2) 9,049 (1)(2) 6,077 (1)(2) Net income 2,145 9,376 4,489 29,462 (3) Basic and diluted net income per share 0.05 0.21 0.10 0.65 Restaurants at end of period 717 723 734 753 (4) Year Ended January 3, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (7) Restaurant sales $ 193,170 $ 219,102 (5) $ 217,676 (5) $ 229,056 (5) Income (loss) from operations (4,462) (5)(6) 12,358 (5)(6) 11,751 (5)(6) 11,561 (5)(6) Net loss (9,276) (4,977) 7,239 7,018 Basic and diluted net income (loss) per share (0.27 ) (0.14 ) 0.16 0.16 Restaurants at end of period 659 657 660 705 (1) In fiscal 2016 the Company acquired 12 restaurants in the first quarter, six restaurants in the second quarter, 11 restaurants in the third quarter and 27 restaurants in the fourth quarter (See Note 2). In fiscal 2016 the Company recorded acquisition costs related to the 2016 and 2015 acquisitions of $0.4 million in the first quarter, $0.2 million in the second quarter, $0.5 million in the third quarter and $0.8 million in the fourth quarter (See Note 2). (2) In fiscal 2016 the Company recorded impairment and other lease charges of $0.2 million in the first quarter, $0.3 million in the second quarter, $0.7 million in the third quarter and $1.2 million in the fourth quarter (See Note 5). Also in fiscal 2016, the Company recorded a gain of $0.5 million related to a settlement for a partial condemnation on one of its operating restaurant properties in the first quarter, expense of $1.85 million related to the settlement of litigation with its former Chairman and CEO in the second quarter (see Note 14), a gain of $0.5 million related to property insurance recoveries from a fire at one of its restaurants in the second quarter and a gain of $0.7 million related to property insurance recoveries from a fire at one of its restaurants in the fourth quarter (see Note 9). (3) In the fourth quarter of 2016, the Company recorded an income tax benefit of $30.4 million related to the reversal of the valuation allowance previously recorded on all of the Company's net deferred tax assets (See Note 10). (4) The Company closed nine restaurants at the end of the fourth quarter of 2016. (5) In fiscal 2015 the Company acquired four restaurants in the second quarter, five restaurants in the third quarter and 46 restaurants in the fourth quarter (See Note 2). In fiscal 2015 the Company recorded acquisition costs related to the 2015 and 2014 acquisitions of $0.2 million in the first quarter, $0.1 million in the third quarter and $0.8 million in the fourth quarter (See Note 2). (6) In fiscal 2015 the Company recorded impairment and other lease charges of $1.6 million in the first quarter, $0.7 million in the second quarter, $0.4 million in the third quarter and $0.3 million in the fourth quarter (See Note 5). (7) The fourth quarter of fiscal 2015 contained 14 weeks. |
Basis Of Presentation Narrative
Basis Of Presentation Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 01, 2017USD ($) | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016USD ($) | Sep. 27, 2015 | Jun. 28, 2015 | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Dec. 30, 2012 | Mar. 29, 2015 | |
Entity Information [Line Items] | ||||||||||||
Restaurants Acquired | 27 | 11 | 6 | 12 | 46 | 5 | 4 | 56 | 55 | 123 | 278 | |
Number of Restaurants | 753 | 734 | 723 | 717 | 705 | 660 | 657 | 753 | 705 | 659 | ||
Number of states | 16 | 16 | ||||||||||
Weeks In fiscal period | 14 | 52 | 53 | 52 | ||||||||
Franchise Term Renewal Period | 20 years | |||||||||||
Franchise Agreement, Term | 20 years | |||||||||||
Long-term Debt, Fair Value | $ 216,500,000 | $ 212,000,000 | $ 216,500,000 | $ 212,000,000 | ||||||||
Asset Impairment Charges | 1,000,000 | $ 1,500,000 | $ 2,600,000 | |||||||||
Cash, FDIC Insured Amount | $ 250,000 | $ 250,000 | ||||||||||
Number of Reportable Segments | 1 | |||||||||||
Right of First Refusal, Number of States | 20 | 20 | ||||||||||
Minimum [Member] | ||||||||||||
Entity Information [Line Items] | ||||||||||||
Weeks In fiscal period | 52 | |||||||||||
Maximum [Member] | ||||||||||||
Entity Information [Line Items] | ||||||||||||
Weeks In fiscal period | 53 |
Basis Of Presentation Property
Basis Of Presentation Property and Equipment (Details) | 12 Months Ended |
Jan. 01, 2017 | |
Property and equipment [Line Items] | |
Operating leases, term | 20 years |
Building [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Useful life | 30 years |
Building [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Useful life | 9 years |
Equipment [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Useful life | 7 years |
Equipment [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Useful life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Useful life | 7 years |
Computer Equipment [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Useful life | 3 years |
Basis Of Presentation Stock-Bas
Basis Of Presentation Stock-Based Compensation (Details) | 12 Months Ended |
Jan. 01, 2017 | |
Management [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Award Vesting Period | 4 years |
Management [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Award Vesting Period | 3 years |
Management [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Award Vesting Period | 4 years |
Director [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Award Vesting Period | 5 years |
Director [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Award Vesting Period | 3 years |
Director [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Award Vesting Period | 5 years |
Basis Of Presentation Subsequen
Basis Of Presentation Subsequent Events (Details) $ in Thousands | Feb. 28, 2017USD ($) | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Dec. 30, 2012 |
Subsequent Event [Line Items] | ||||||||||||
Restaurants Acquired | 27 | 11 | 6 | 12 | 46 | 5 | 4 | 56 | 55 | 123 | 278 | |
Payments to Acquire Businesses, Net of Cash Acquired | $ (48,088) | $ (52,750) | $ (52,200) | |||||||||
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Restaurants Acquired | 43 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ (20,400) |
Acquisition Table of 2016 Acqui
Acquisition Table of 2016 Acquisitions (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Dec. 30, 2012 | |
Business Acquisition [Line Items] | |||||||||||
Properties purchased for sale-leaseback, number | 15 | ||||||||||
Restaurants Acquired | 27 | 11 | 6 | 12 | 46 | 5 | 4 | 56 | 55 | 123 | 278 |
Payments to Acquire Businesses, Net of Cash Acquired | $ 48,088 | $ 52,750 | $ 52,200 | ||||||||
Proceeds from sale-leaseback transactions | $ 53,599 | $ 9,148 | $ 19,565 | ||||||||
2016 Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Properties sold in sale-leaseback transactions | 14 | ||||||||||
Proceeds from sale-leaseback transactions | $ 19,100 | ||||||||||
February 23, 2016 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | 12 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 7,127 | ||||||||||
May 25, 2016 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Properties purchased for sale-leaseback, number | 5 | ||||||||||
Restaurants Acquired | 6 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 12,080 | ||||||||||
July 14, 2016 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Properties purchased for sale-leaseback, number | 3 | ||||||||||
Restaurants Acquired | 4 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 5,445 | ||||||||||
August 23, 2016 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Properties purchased for sale-leaseback, number | 6 | ||||||||||
Restaurants Acquired | 7 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 8,755 | ||||||||||
October 4, 2016 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | 3 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,623 | ||||||||||
November 15, 2016 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restaurants Acquired | 17 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 7,251 | ||||||||||
December 1, 2016 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Properties purchased for sale-leaseback, number | 1 | ||||||||||
Restaurants Acquired | 7 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 5,807 |
Acquisition Purchase Price Allo
Acquisition Purchase Price Allocation, 2016 Acquisitions (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 |
Business Acquisition [Line Items] | |||
Inventory | $ 558 | $ 544 | $ 1,267 |
Land and building | 19,387 | 22,614 | 15,955 |
Restaurant equipment | 1,599 | 2,844 | 5,818 |
Restaurant equipment - subject to capital lease | 435 | 443 | 1,381 |
Leasehold improvements | 2,464 | 1,770 | 1,804 |
Franchise fees | 1,121 | 1,000 | 3,064 |
Franchise rights | 21,202 | 20,666 | 17,098 |
Favorable leases | 390 | 1,475 | 2,096 |
Deferred taxes | 216 | ||
Goodwill | 22,869 | 20,438 | 17,793 |
Capital lease obligation for restaurant equipment | (492) | (494) | (1,458) |
Unfavorable leases | (1,152) | (324) | (5,912) |
Other liabilities | (71) | (433) | (135) |
Purchase price | 48,088 | $ 52,750 | $ 52,200 |
2016 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 2,431 |
Acquisition Pro forma informati
Acquisition Pro forma information, 2016 acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
2015 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Restaurant sales | $ 918,456 | $ 862,357 | |
Net income (loss) | $ 6,447 | $ (27,252) | |
Basic and diluted net income (loss) per share | $ 0.14 | $ (0.88) | |
2016 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Restaurant sales | $ 984,164 | $ 986,935 | |
Net income (loss) | $ 48,264 | $ 12,078 | |
Basic and diluted net income (loss) per share | $ 1.07 | $ 0.27 |
Acquisition Table of 2015 Acqui
Acquisition Table of 2015 Acquisitions (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 01, 2017USD ($) | Oct. 02, 2016USD ($) | Jul. 03, 2016USD ($) | Apr. 03, 2016USD ($) | Jan. 03, 2016USD ($) | Sep. 27, 2015USD ($) | Jun. 28, 2015 | Mar. 29, 2015USD ($) | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Dec. 30, 2012 | |
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 27 | 11 | 6 | 12 | 46 | 5 | 4 | 56 | 55 | 123 | 278 | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 48,088 | $ 52,750 | $ 52,200 | |||||||||
Properties purchased for sale-leaseback, number | 15 | |||||||||||
Proceeds from sale-leaseback transactions | $ 53,599 | 9,148 | 19,565 | |||||||||
Land and building | $ 19,387 | $ 22,614 | $ 19,387 | $ 22,614 | $ 15,955 | |||||||
Acquisition-related costs | $ 800 | $ 500 | $ 200 | $ 400 | $ 800 | $ 100 | $ 200 | |||||
2016 Acquisitions [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Properties sold in sale-leaseback transactions | 14 | |||||||||||
Proceeds from sale-leaseback transactions | $ 19,100 | |||||||||||
Revenue of acquired restaurants since acquisition | 28,600 | |||||||||||
Acquisition-related costs | $ 1,600 | |||||||||||
2015 Acquisitions [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Properties purchased for sale-leaseback, number | 16 | |||||||||||
Properties sold in sale-leaseback transactions | 3 | 12 | ||||||||||
Proceeds from sale-leaseback transactions | $ 4,300 | $ 17,700 | ||||||||||
Revenue of acquired restaurants since acquisition | 70,400 | $ 12,900 | ||||||||||
Acquisition-related costs | $ 200 | $ 1,000 | ||||||||||
March 31, 2015 Acquisition [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 4 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 794 | |||||||||||
August 4, 2015 Acquisition [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 5 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 663 | |||||||||||
October 1, 2015 Acquisition [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 5 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 5,044 | |||||||||||
Properties purchased for sale-leaseback, number | 1 | |||||||||||
October 20, 2015 Acquisition [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 1 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 709 | |||||||||||
November 17, 2015 Acquisition 1 [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 2 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 618 | |||||||||||
November 17, 2015 Acquisition 2 [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 6 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 10,945 | |||||||||||
Properties purchased for sale-leaseback, number | 5 | |||||||||||
December 1, 2015 Acquisition [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 23 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 26,175 | |||||||||||
Properties purchased for sale-leaseback, number | 10 | |||||||||||
December 8, 2015 Acquisition [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Restaurants Acquired | 9 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 7,802 |
Acquisition Purchase Price Al53
Acquisition Purchase Price Allocation, 2015 Acquisitions (Details) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Jan. 01, 2017USD ($) | |
Business Acquisition [Line Items] | |||
Number of acquisitions | 8 | 5 | |
Inventory | $ 544 | $ 1,267 | $ 558 |
Land and building | 22,614 | 15,955 | 19,387 |
Restaurant equipment | 2,844 | 5,818 | 1,599 |
Restaurant equipment - subject to capital lease | 443 | 1,381 | 435 |
Leasehold improvements | 1,770 | 1,804 | 2,464 |
Franchise fees | 1,000 | 3,064 | 1,121 |
Franchise rights | 20,666 | 17,098 | 21,202 |
Favorable leases | 1,475 | 2,096 | 390 |
Goodwill | 20,438 | 17,793 | 22,869 |
Capital lease obligation for restaurant equipment | (494) | (1,458) | (492) |
Unfavorable leases | (324) | (5,912) | (1,152) |
Other liabilities | (433) | (135) | (71) |
Purchase price | 52,750 | $ 52,200 | 48,088 |
2015 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 2,645 | $ 20,438 |
Acquisition Pro Forma Informa54
Acquisition Pro Forma Information, 2015 Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 03, 2016 | Dec. 28, 2014 | |
2015 Acquisitions [Member] | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Restaurant sales | $ 918,456 | $ 862,357 |
Net income (loss) | $ 6,447 | $ (27,252) |
Basic and diluted net income (loss) per share | $ 0.14 | $ (0.88) |
2014 Acquisitions [Member] | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Restaurant sales | $ 793,521 | |
Net income (loss) | $ (31,364) | |
Basic and diluted net income (loss) per share | $ (1.02) |
Acquisition Table of 2014 Acqui
Acquisition Table of 2014 Acquisitions (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 01, 2017USD ($) | Oct. 02, 2016USD ($) | Jul. 03, 2016USD ($) | Apr. 03, 2016USD ($) | Jan. 03, 2016USD ($) | Sep. 27, 2015USD ($) | Jun. 28, 2015 | Mar. 29, 2015USD ($) | Dec. 28, 2014USD ($) | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Dec. 30, 2012 | |
Business Acquisition [Line Items] | |||||||||||||
Restaurants Acquired | 27 | 11 | 6 | 12 | 46 | 5 | 4 | 56 | 55 | 123 | 278 | ||
Properties purchased for sale-leaseback, number | 15 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 48,088,000 | $ 52,750,000 | $ 52,200,000 | ||||||||||
Proceeds from sale-leaseback transactions | $ 53,599,000 | $ 9,148,000 | $ 19,565,000 | ||||||||||
Acquisition-related costs | $ 800,000 | $ 500,000 | $ 200,000 | $ 400,000 | $ 800,000 | $ 100,000 | $ 200,000 | ||||||
April 30, 2014 Acquisition [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Restaurants Acquired | 4 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 681,000 | ||||||||||||
June 30, 2014 Acquisition [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Restaurants Acquired | 4 | ||||||||||||
Properties purchased for sale-leaseback, number | 1 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 3,819,000 | ||||||||||||
July 22, 2014 Acquisition [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Restaurants Acquired | 21 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 8,609,000 | ||||||||||||
October 8, 2014 Acquisition [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Restaurants Acquired | 30 | ||||||||||||
Properties purchased for sale-leaseback, number | 12 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 20,330,000 | ||||||||||||
November 4, 2014 Acquisition [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Restaurants Acquired | 64 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 18,761,000 | ||||||||||||
Restaurants to be remodeled | 46 | ||||||||||||
2014 Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Properties purchased for sale-leaseback, number | 13 | ||||||||||||
Properties sold in sale-leaseback transactions | 10 | 1 | |||||||||||
Proceeds from sale-leaseback transactions | $ 13,000,000 | $ 1,100,000 | |||||||||||
Revenue of acquired restaurants since acquisition | 144,600,000 | $ 34,000,000 | |||||||||||
Acquisition-related costs | $ 200,000 | $ 1,900,000 |
Acquisition Purchase Price Al56
Acquisition Purchase Price Allocation, 2014 Acquisitions (Details) | 12 Months Ended | ||
Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Jan. 01, 2017USD ($) | |
Business Acquisition [Line Items] | |||
Number of acquisitions | 8 | 5 | |
Inventory | $ 544,000 | $ 1,267,000 | $ 558,000 |
Land and building | 22,614,000 | 15,955,000 | 19,387,000 |
Restaurant equipment | 2,844,000 | 5,818,000 | 1,599,000 |
Restaurant equipment - subject to capital lease | 443,000 | 1,381,000 | 435,000 |
Leasehold improvements | 1,770,000 | 1,804,000 | 2,464,000 |
Franchise fees | 1,000,000 | 3,064,000 | 1,121,000 |
Franchise rights | 20,666,000 | 17,098,000 | 21,202,000 |
Favorable leases | 1,475,000 | 2,096,000 | 390,000 |
Deferred income taxes | 1,526,000 | ||
Other assets | 65,000 | ||
Goodwill | 20,438,000 | 17,793,000 | 22,869,000 |
Capital lease obligation for restaurant equipment | (494,000) | (1,458,000) | (492,000) |
Unfavorable leases | (324,000) | (5,912,000) | (1,152,000) |
Other liabilities | (433,000) | (135,000) | (71,000) |
Purchase price | 52,750,000 | 52,200,000 | $ 48,088,000 |
2014 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Deferred income taxes | $ 7,221 | ||
Goodwill | $ 9,631,000 |
Acquisition Pro Forma Informa57
Acquisition Pro Forma Information, 2014 Acquisitions (Details) - 2014 Acquisitions [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 28, 2014USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Restaurant sales | $ 793,521 |
Net income (loss) | $ (31,364) |
Basic and diluted net income (loss) per share | $ / shares | $ (1.02) |
Acquisition Details (Details)
Acquisition Details (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Mar. 29, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Business Acquisition [Line Items] | ||||||||||
Deferred income taxes | $ 1,526,000 | |||||||||
Acquisition-related costs | $ 800,000 | $ 500,000 | $ 200,000 | $ 400,000 | $ 800,000 | $ 100,000 | $ 200,000 | |||
Income tax expense, valuation allowance | 30,400,000 | $ 30,374,000 | $ (2,959,000) | (24,326,000) | ||||||
2016 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Revenue of acquired restaurants since acquisition | 28,600,000 | |||||||||
Deferred income taxes | 1,803 | 1,803 | ||||||||
Acquisition-related costs | 1,600,000 | |||||||||
2015 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Revenue of acquired restaurants since acquisition | 70,400,000 | 12,900,000 | ||||||||
Deferred income taxes | $ 3,311 | 3,311 | ||||||||
Acquisition-related costs | $ 200,000 | 1,000,000 | ||||||||
2014 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Revenue of acquired restaurants since acquisition | 144,600,000 | 34,000,000 | ||||||||
Deferred income taxes | $ 7,221 | 7,221 | ||||||||
Acquisition-related costs | $ 200,000 | $ 1,900,000 | ||||||||
Off-Market Favorable Lease [Member] | 2016 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years 5 months | |||||||||
Off-Market Favorable Lease [Member] | 2015 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years 6 months | |||||||||
Off-Market Favorable Lease [Member] | 2014 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years 5 months | |||||||||
Above Market Leases [Member] | 2016 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | |||||||||
Above Market Leases [Member] | 2015 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 6 months | |||||||||
Above Market Leases [Member] | 2014 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |||||||||
Franchise Rights [Member] | 2016 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 28 years | |||||||||
Franchise Rights [Member] | 2015 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 26 years 7 months | |||||||||
Franchise Rights [Member] | 2014 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 30 years 5 months |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Property and equipment [Line Items] | |||
Land | $ 8,112 | $ 19,126 | |
Owned buildings | 9,174 | 13,625 | |
Leasehold improvements | 265,008 | 215,673 | |
Equipment | 203,412 | 181,283 | |
Assets subject to capital leases | 16,948 | 16,547 | |
Propert and equipment, gross | 502,654 | 446,254 | |
Less accumulated depreciation and amortization | (254,807) | (226,140) | |
Property and equipment, net | 247,847 | 220,114 | |
Capital leases, accumulated depreciation | 11,008 | 9,553 | |
Depreciation expense | 47,295 | 39,845 | $ 36,923 |
Property and Equipment [Member] | |||
Property and equipment [Line Items] | |||
Depreciation expense | $ 39,918 | $ 33,878 | $ 31,372 |
Intangible Assets Goodwill Disc
Intangible Assets Goodwill Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Goodwill [Line Items] | |||
Goodwill | $ 20,438 | $ 17,793 | |
Goodwill, Period Increase (Decrease) | 2,431 | ||
Goodwill | 22,869 | 20,438 | $ 17,793 |
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Intangible Assets Franchise Rig
Intangible Assets Franchise Rights Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Franchise Term Renewal Period | 20 years | ||
Franchise Rights, Gross | $ 227,952 | $ 206,750 | |
Franchise Rights, Accumulated Amortization | 93,799 | 87,869 | |
Franchise rights impairment | 0 | 0 | $ 0 |
Franchise Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 5,930 | $ 4,685 | $ 4,366 |
Expected Amortization, next fiscal year | 6,241 | ||
Expected Amortization, year three | 6,241 | ||
Expected Amortization, year four | 6,241 | ||
Expected Amortization, year five | $ 6,241 |
Intangible Assets Favorable and
Intangible Assets Favorable and Unfavorable Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Favorable lease, gross | $ 7,201 | $ 6,991 | |
Favorable leases, accumulated amortization | 1,760 | 1,339 | |
Unfavorable leases, gross | 16,329 | 15,448 | |
Unfavorable leases, accumulated amortization | 4,643 | 3,444 | |
Favorable and Unfavorable Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 869 | $ 799 | $ 715 |
Expected Amortization, next fiscal year | 702 | ||
Expected Amortization, year two | 701 | ||
Expected Amortization, year three | 628 | ||
Expected Amortization, year four | 550 | ||
Expected Amortization, year five | $ 481 |
Impairment Of Long-Lived Asse63
Impairment Of Long-Lived Assets And Other Lease Charges (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2017USD ($) | Oct. 02, 2016USD ($) | Jul. 03, 2016USD ($) | Apr. 03, 2016USD ($) | Jan. 03, 2016USD ($) | Sep. 27, 2015USD ($) | Jun. 28, 2015USD ($) | Mar. 29, 2015USD ($) | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Impairment and other lease charges | $ 1,200 | $ 700 | $ 300 | $ 200 | $ 300 | $ 400 | $ 700 | $ 1,600 | $ 2,355 | $ 3,078 | $ 3,541 |
Impairment charges | 1,000 | 1,500 | 2,600 | ||||||||
Sale Leaseback Transaction, Current Period Loss Recognized | $ 1,200 | ||||||||||
Sale Leaseback Losses, number of restaurants | 7 | ||||||||||
Other lease charges | $ 1,600 | $ 1,000 | |||||||||
Asset impairment charges, number of restaurants | 4 | 2 | 9 | ||||||||
Other lease charges, number of restaurants | 10 | 3 | |||||||||
Previously Impaired [Member] | |||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Impairment charges | $ 900 | $ 1,300 | $ 1,100 | ||||||||
Initial Impairments [Member] | |||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||||||
Impairment charges | $ 200 | $ 200 | $ 1,400 |
Impairment Of Long-Lived Asse64
Impairment Of Long-Lived Assets And Other Lease Charges Closed Restaurant Reserve Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning of year | $ 2,088 | $ 1,721 |
Payments, net | (691) | (1,228) |
Other adjustments | 146 | 218 |
Balance, end of year | 1,513 | 2,088 |
Provisions for closures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Provisions for restaurant closures | 59 | 1,472 |
Changes in estimates of accrued costs | 59 | 1,472 |
Changes in estimates [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Provisions for restaurant closures | (89) | (95) |
Changes in estimates of accrued costs | $ (89) | $ (95) |
Other Liabilities, Long-Term (D
Other Liabilities, Long-Term (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Liabilities, Noncurrent [Abstract] | ||
Deferred rent | $ 11,498 | $ 9,620 |
Accrued Occupancy Costs | 3,254 | 2,581 |
Accrued workers' compensation and general liability claims | 3,364 | 3,606 |
Deferred compensation | 1,756 | 997 |
Other Accrued Liabilities, Noncurrent | 158 | 311 |
Other Liabilities, Noncurrent | $ 20,030 | $ 17,115 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Leases [Abstract] | |||
Sale leaseback transactions, number | 38 | 7 | 15 |
Proceeds from sale-leaseback transactions | $ 53,599 | $ 9,148 | $ 19,565 |
Operating leases, term | 20 years | ||
Sale leaseback transaction, deferred gains | $ 1,480 | 16 | 373 |
Amortization of deferred gains from sale leaseback transactions | $ 1,788 | $ 2,535 | $ 1,793 |
Leases Minimum Rent Disclosures
Leases Minimum Rent Disclosures (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Leases [Abstract] | ||
Capital lease payments due in twelve months | $ 2,067 | |
Capital lease payments due in two years | 2,073 | |
Capital lease payments due in three years | 2,068 | |
Capital lease payments due in four years | 1,367 | |
Capital lease payments due in five years | 292 | |
Capital lease payments due thereafter | 338 | |
Capital leases, future minimum payments due | 8,205 | |
Less amount representing interest | (1,166) | |
Total obligations under capital leases | 7,039 | $ 8,006 |
Less current portion | (1,616) | |
Long-term obligations under capital leases | 5,423 | |
Operating lease payments due in next twelve months | 62,739 | |
Operating lease payments due in two years | 61,595 | |
Operating lease payments due in three years | 60,546 | |
Operating lease payments due in four years | 59,207 | |
Operating lease payments due in five years | 58,067 | |
Operating lease payments due thereafter | 615,545 | |
Operating leases, future minimum payments due | $ 917,699 |
Leases Rent Expense Disclosures
Leases Rent Expense Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Operating Leased Assets [Line Items] | |||
Minimum rent on real property | $ 59,076 | $ 53,085 | $ 45,371 |
Contingent rent on real property | 5,738 | 5,011 | 3,494 |
Restaurant rent expense | 64,814 | 58,096 | 48,865 |
Administrative and equipment rent | 65,081 | 58,372 | 49,129 |
Rent expense on operating leases | 65,081 | 58,372 | 49,129 |
General and Administrative Expense [Member] | |||
Operating Leased Assets [Line Items] | |||
Administrative and equipment rent | 267 | 276 | 264 |
Rent expense on operating leases | $ 267 | $ 276 | $ 264 |
Long-Term Debt Long Term Debt (
Long-Term Debt Long Term Debt (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 | May 30, 2012 |
Long-term Debt, Unclassified [Abstract] | |||
Carrols Restaurant Group Senior Secured Second Lien Notes | $ 200,000 | $ 200,000 | $ 150,000 |
Senior Credit Facility - Revolving credit borrowings | 13,500 | 0 | |
Capital leases | 7,039 | 8,006 | |
Long-term Debt | 220,539 | 208,006 | |
Less: current portion | (1,616) | (1,435) | |
Less: deferred financing costs | 3,815 | 4,529 | |
Long-term debt, net of current portion and deferred financing costs | $ 215,108 | $ 202,042 |
Long-Term Debt Senior Secured S
Long-Term Debt Senior Secured Second Lien Notes (Details) - USD ($) | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Debt Instrument [Line Items] | |||
Proceeds from issuance of senior secured second lien notes | $ 0 | $ 200,000,000 | $ 0 |
Gains (Losses) on Extinguishment of Debt | $ 0 | $ (12,635,000) | $ 0 |
Senior Notes, Amount Redeemable with Proceeds from Equity Offerings | 35.00% | ||
Collateral exclusion for material subsidiaries, percentage of Senior Notes | 20.00% | ||
Senior Notes, Cross Default Provision, Minimum Debt Principal Amount | $ 20,000,000 | ||
Debt Instrument, Redemption, Period Two [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes, Redemption Price | 1.04 | ||
Debt Instrument, Redemption, Period Three [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes, Redemption Price | 1.02 | ||
Debt Instrument, Redemption, Period Four [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes, Redemption Price | 1 | ||
Debt Instrument, Redemption, Period One [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes, Redemption Price | $ 1 |
Long-Term Debt Senior Credit Fa
Long-Term Debt Senior Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | Jan. 13, 2017 | May 30, 2012 | |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 55,000 | ||||
Long-term Line of Credit | 13,500 | ||||
Letters of Credit Outstanding, Amount | $ 12,800 | ||||
Interest Rate | 8.00% | 11.25% | |||
Increase (Decrease) in Restricted Cash | $ 0 | $ 0 | $ (20,000) | ||
Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 20,000 | ||||
Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 73,000 | ||||
Line of Credit Facility, Potential Incremental Increases | 25,000 | ||||
Line of Credit Facility, Unused Borrowing Capacity | $ 42,400 | ||||
Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 1.75% | ||||
Line of Credit Facility, Interest Rate at Period End | 5.50% | ||||
Base Rate [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 1.75% | ||||
Base Rate [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 2.75% | ||||
London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Interest Rate at Period End | 2.75% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 2.75% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 3.75% |
Long-Term Debt Long-Term Debt D
Long-Term Debt Long-Term Debt Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | May 30, 2012 | |
Debt Disclosure [Abstract] | ||||
Senior Notes | $ 200,000 | $ 200,000 | $ 150,000 | |
Interest Rate | 8.00% | 11.25% | ||
Debt, Weighted Average Interest Rate | 7.90% | 8.90% | 11.20% | |
Interest Expense, Debt | $ 18,208 | $ 18,462 | $ 18,694 |
Long-Term Debt Future Maturitie
Long-Term Debt Future Maturities (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Debt Disclosure [Abstract] | ||
Next Twelve Months | $ 1,616 | |
Year Two | 1,738 | |
Year Three | 1,859 | |
Year Four | 1,283 | |
Year Five | 13,754 | |
Thereafter | 200,289 | |
Long-term Debt | $ 220,539 | $ 208,006 |
Other Income (Expense) (Details
Other Income (Expense) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Jan. 01, 2017USD ($) | Jul. 03, 2016USD ($) | Apr. 03, 2016USD ($) | Jan. 01, 2017USD ($) | Oct. 02, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | |
Loss Contingencies [Line Items] | |||||||||
Insured Event, Gain (Loss) | $ 700 | $ 500 | $ (1,200) | ||||||
Gain (Loss) on Condemnation | $ (500) | ||||||||
Number of Restaurants | 753 | 723 | 717 | 753 | 734 | 705 | 660 | 657 | 659 |
Litigation Settlement, Expense | $ 1,850 | ||||||||
Damage from Fire, Explosion or Other Hazard [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Properties damaged in fire | 1 | 1 | 2 | ||||||
Unfavorable Regulatory Action [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of Restaurants | 1 | 1 | 1 |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Federal | $ 0 | $ 0 | $ 0 | |
State | 0 | 0 | 217 | |
Current Income Tax Expense (Benefit) | 0 | 0 | 217 | |
Federal | 1,297 | (2,901) | (11,330) | |
State | 992 | (58) | (1,448) | |
Deferred | 2,289 | (2,959) | (12,778) | |
Income tax expense, valuation allowance | $ (30,400) | (30,374) | 2,959 | 24,326 |
Provision (benefit) for income taxes | $ (28,085) | $ 0 | $ 11,765 |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 |
Income Tax Disclosure [Abstract] | ||||
Deferred income on sale-leaseback of certain real estate | $ 4,714 | $ 4,881 | ||
Lease financing obligations | 254 | 242 | ||
Postretirement benefit expenses | 1,255 | 1,229 | ||
Stock-based compensation expense | 599 | 378 | ||
Federal net operating loss carryforwards | 21,351 | 17,696 | ||
State net operating loss carryforwards | 3,845 | 3,795 | ||
Goodwill and other intangibles, net | 2,814 | 2,639 | ||
Occupancy costs | 7,460 | 7,120 | ||
Tax credit carryforwards | 21,987 | 13,667 | ||
Accrued vacation benefits | 2,560 | 2,314 | ||
Accrued workers compensation | 1,490 | 2,087 | ||
Accumulated other comprehensive income-postretirement benefits | 499 | 0 | ||
Other | 2,131 | 1,869 | ||
Gross deferred income tax assets | 70,959 | 57,917 | ||
Less: Valuation allowance | 0 | (30,374) | $ (27,423) | $ (2,687) |
Net deferred income tax assets | 70,959 | 27,543 | ||
Accumulated other comprehensive income-postretirement benefits | 0 | (42) | ||
Inventory and other reserves | (97) | (103) | ||
Property and equipment depreciation | (17,599) | (3,803) | ||
Franchise rights | (24,422) | (23,595) | ||
Deferred Tax Liabilities, Gross | (42,118) | (27,543) | ||
Carrying value of net deferred income tax assets | $ 28,841 | $ 0 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Income tax expense, valuation allowance | $ 30,400 | $ 30,374 | $ (2,959) | $ (24,326) |
Unrecognized Tax Benefits | 0 | 0 | 0 | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0 | 0 | $ 0 | |
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal operating loss carryforwards | $ 61,000 | $ 61,000 |
Income Taxes Effective Rate Rec
Income Taxes Effective Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Statutory federal income tax provision (benefit) | $ 6,085 | $ 1 | $ (9,223) | |
State income taxes (benefit), net of federal provision (benefit) | 403 | 6 | (749) | |
Change in valuation allowance | $ (30,400) | (30,374) | 2,959 | 24,326 |
Employment tax credits | (5,408) | (2,710) | (2,291) | |
Non-deductible expenses | 965 | 0 | 25 | |
Miscellaneous | 244 | (256) | (323) | |
Provision (benefit) for income taxes | $ (28,085) | $ 0 | $ 11,765 |
Stock-based Compensation Stoc79
Stock-based Compensation Stock-Based Compensation Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | Jan. 01, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 2,053 | $ 1,438 | $ 1,180 | |
Nonvested stock-based compensation expense | $ 4,500 | |||
Remaining weighted average vesting period | 2 years 7 months | |||
Management [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted Stock Awards Issued During Period | 319,000 | |||
Stock Award Vesting Period | 4 years | |||
Stock Award Vesting Rate | 25.00% | |||
Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted Stock Awards Issued During Period | 8,140 | |||
Stock Award Vesting Period | 5 years | |||
Stock Award Vesting Rate | 20.00% | |||
2016 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Authorized Under Stock Incentive Plan | 4,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,000,000 | |||
2006 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Authorized Under Stock Incentive Plan | 3,300,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | |||
Additional Shares Authorized | 1,000,000 |
Stock-based Compensation Summar
Stock-based Compensation Summary of Non-Vested Stock Activity (Details) | 12 Months Ended |
Jan. 01, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested shares at beginning of period | shares | 468,770 |
Nonvested shares, Weighted Average Grant Date Price at beginning of period | $ / shares | $ 7.40 |
Grants in Period | shares | 327,140 |
Grants in Period, Weighted Average Grant Date Price | $ / shares | $ 12.28 |
Vested | shares | (218,689) |
Vested, Weighted Average Grant Date Price | $ / shares | $ 6.71 |
Nonvested shares at end of period | shares | 577,221 |
Nonvested shares, Weighted Average Grant Date Price at end of period | $ / shares | $ 10.42 |
Stockholder's Equity Preferred
Stockholder's Equity Preferred Stock (Details) | 12 Months Ended | |
Jan. 01, 2017Rateshares | Jan. 03, 2016shares | |
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | shares | 100 | 100 |
Convertible Preferred Stock, Common Shares Issuable upon Conversion | shares | 9,414,580 | |
Board of directors, number of members | 2 | |
Minimum [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Ownership | Rate | 10.00% | |
Board of directors, number of members | 1 | |
Maximum [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Ownership | Rate | 14.50% | |
Board of directors, number of members | 2 |
Stockholder's Equity Public Off
Stockholder's Equity Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | |||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | Apr. 30, 2014 | |
Class of Stock [Line Items] | ||||
Issuance of common stock, shares | 11.5 | |||
Shares Issued, Price Per Share | $ 6.20 | |||
Proceeds from public stock offering, net of expenses | $ 0 | $ 0 | $ 67,327 | |
Public Offering [Member] | ||||
Class of Stock [Line Items] | ||||
Issuance of common stock, shares | 10 | |||
Over-Allotment Option [Member] | ||||
Class of Stock [Line Items] | ||||
Issuance of common stock, shares | 1.5 |
Net Income (Loss) Per Share E83
Net Income (Loss) Per Share Earnings Per Share Table (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income (loss) | $ 29,462 | $ 4,489 | $ 9,376 | $ 2,145 | $ 7,018 | $ 7,239 | $ (4,977) | $ (9,276) | $ 45,472 | $ 4 | $ (38,117) |
Net income available to common stockholders | $ 35,395 | $ 3 | $ (38,117) | ||||||||
Basic weighted average common shares outstanding | 35,178,329 | 34,958,847 | 30,885,275 | ||||||||
Basic and diluted net income (loss) per share | $ 0.65 | $ 0.10 | $ 0.21 | $ 0.05 | $ 0.16 | $ 0.16 | $ (0.14) | $ (0.27) | $ 1.01 | $ 0 | $ (1.23) |
Net income (loss) | $ 29,462 | $ 4,489 | $ 9,376 | $ 2,145 | $ 7,018 | $ 7,239 | $ (4,977) | $ (9,276) | $ 45,472 | $ 4 | $ (38,117) |
Basic weighted average common shares outstanding | 35,178,329 | 34,958,847 | 30,885,275 | ||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 9,673,016 | 9,664,404 | 0 | ||||||||
Diluted weighted average common shares outstanding | 44,851,345 | 44,623,251 | 30,885,275 | ||||||||
Basic and diluted net income (loss) per share | $ 0.65 | $ 0.10 | $ 0.21 | $ 0.05 | $ 0.16 | $ 0.16 | $ (0.14) | $ (0.27) | $ 1.01 | $ 0 | $ (1.23) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 9,810,007 | ||||||||
Restricted Stock [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Less: income attributable to participating securities | $ (616) | $ 0 | $ 0 | ||||||||
Convertible Preferred Stock [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Less: income attributable to participating securities | $ (9,461) | $ (1) | $ 0 |
Commitments And Contingencies L
Commitments And Contingencies Lease Guarantees (Details) $ in Millions | 12 Months Ended |
Jan. 01, 2017USD ($) | |
Guarantor Obligations [Line Items] | |
Maximum potential undiscounted rental payments | $ 25.2 |
Loss Contingency Accrual, Payments | $ 0 |
Property Lease Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Property Leases | 27 |
Performance Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Property Leases | 5 |
Commitments And Contingencies85
Commitments And Contingencies Litigation (Details) $ in Thousands | 12 Months Ended |
Jan. 01, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation Settlement, Expense | $ 1,850 |
Related Parties (Details)
Related Parties (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017USD ($)yrRateshares | Jan. 03, 2016USD ($)shares | Dec. 28, 2014USD ($) | |
Related Party Transaction [Line Items] | |||
Preferred Stock, Shares Issued | shares | 100 | 100 | |
Convertible Preferred Stock, Common Shares Issuable upon Conversion | shares | 9,414,580 | ||
Franchise Term | yr | 20 | ||
Board of directors, number of members | 2 | ||
Restaurant rent expense | $ 64,814 | $ 58,096 | $ 48,865 |
Related Party Transaction, Accounts Payable | 22,445 | 20,436 | |
Related Party, Burger King Corporate [Member] | |||
Related Party Transaction [Line Items] | |||
Initial Franchise Fees | $ 50 | ||
Sale of Stock, Percentage of Ownership after Transaction | Rate | 20.80% | ||
Related Party Transaction, Royalty Fee Rate | Rate | 4.50% | ||
Royalty Expense | $ 40,000 | 36,200 | 29,100 |
Related Party Transaction, Advertising Fee Rate | Rate | 4.00% | ||
Advertising Expense | $ 40,200 | $ 32,000 | $ 27,500 |
Leases, Number of Leased Restaurants | 275 | 293 | 311 |
Restaurant rent expense | $ 27,800 | $ 28,400 | $ 26,600 |
Related Party Transaction, Other Liabilities | 200 | ||
Related Party Transaction, Accounts Payable | $ 6,300 | ||
Property Leases Identical to BKC's Lease with Third Party [Member] | Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Leases, Number of Leased Restaurants | 145 |
Retirement Plans (Details)
Retirement Plans (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017USD ($)Rate | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | Rate | 50.00% | ||
Defined Contribution Plan, Requisite Service Period, Hours of Service | 1,000 | ||
Defined Contribution Plan, Cost Recognized | $ 496 | $ 463 | $ 370 |
Deferred Compensation Arrangements, Interest Rate | Rate | 8.00% | ||
Deferred Compensation Arrangement with Individual, Employer Contribution | $ 0 | ||
Deferred compensation | $ 1,756 | $ 997 | |
Minimum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Vesting Period of Company Contributions | 1 year | ||
Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Vesting Period of Company Contributions | 5 years |
Postretirement Benefits Schedul
Postretirement Benefits Schedule of Net Funded Status and APBO (Details) - USD ($) | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||
Benefit obligation at beginning of year | $ 3,060,000 | $ 3,121,000 | |
Service cost | 150,000 | 127,000 | $ 85,000 |
Interest cost | 165,000 | 114,000 | 92,000 |
Plan participants' contributions | 98,000 | 101,000 | |
Actuarial loss (gain) | 1,251,000 | (214,000) | |
Benefits paid | (164,000) | (220,000) | |
Medicare part D prescription drug subsidy | 6,000 | 31,000 | |
Benefit obligation at end of year | 4,566,000 | 3,060,000 | 3,121,000 |
Employer contributions | 60,000 | 88,000 | |
Fair value of plan assets at beginning of year | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status | $ (4,566,000) | $ (3,060,000) | |
Discount rate used to determine benefit obligations | 4.11% | 4.25% | |
Discount rate used to determine net periodic benefit cost | 4.25% | 3.83% |
Postretirement Benefits Compone
Postretirement Benefits Components of Net Periodic Postretirement Benefit Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $ 150 | $ 127 | $ 85 |
Interest cost | 165 | 114 | 92 |
Amortization of net gains and losses | 197 | 163 | 104 |
Amortization of prior service credit | (355) | (355) | (355) |
Net periodic postretirement benefit income | $ 157 | $ 49 | $ (74) |
Postretirement Benefits Amounts
Postretirement Benefits Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | $ 1,972 | $ 2,327 |
Net gain | (3,272) | (2,218) |
Deferred Tax Liabilities, Other Comprehensive Income | 0 | (42) |
Deferred Tax Assets, Other Comprehensive Loss | 499 | 0 |
Accumulated other comprehensive income | (1,203) | (335) |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | 211 | |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | (355) | |
Other Comprehensive Income (Loss) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Deferred Tax Liabilities, Other Comprehensive Income | $ (444) | |
Deferred Tax Assets, Other Comprehensive Loss | $ 97 |
Postretirement Benefits Change
Postretirement Benefits Change in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Net actuarial (gain) loss | $ 1,251 | $ (214) | |
Amortization of net loss | (197) | (163) | |
Amortization of prior service credit | 355 | 355 | |
Deferred income taxes | 541 | 0 | |
Total recognized in accumulated other comprehensive income | $ 868 | $ (22) | $ 1,059 |
Postretirement Benefits Assumed
Postretirement Benefits Assumed Health Care Trend Rates (Details) | 12 Months Ended | ||
Jan. 01, 2017Rate | Jan. 03, 2016Rate | Dec. 28, 2014Rate | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year, pre-65 | 7.50% | 7.75% | 8.00% |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year, post-65 | 6.50% | 6.75% | 7.00% |
Prescription drug benefit cost trend rate assumed for the following year | 10.50% | 11.00% | 9.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 3.89% | 3.89% | 3.89% |
Year that the rate reaches the ultimate trend rate | 2,075 | 2,075 | 2,075 |
Postretirement Benefits Expecte
Postretirement Benefits Expected Future Benefit Payments (Details) $ in Thousands | 12 Months Ended |
Jan. 01, 2017USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 145 |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 145 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 165 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 167 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 166 |
Defined Benefit Plan, Expected Future Benefit Payments, Rolling Year Five | 173 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 1,092 |
Postretirement Benefits Postret
Postretirement Benefits Postretirement Benefits (Details) $ in Thousands | 12 Months Ended |
Jan. 01, 2017USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 89 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | 64 |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 966 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ 731 |
Selected Quarterly Financial 95
Selected Quarterly Financial and Earnings Data (Unaudited) Quarterly Table (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2017USD ($)$ / shares | Oct. 02, 2016USD ($)$ / shares | Jul. 03, 2016USD ($)$ / shares | Apr. 03, 2016USD ($)$ / shares | Jan. 03, 2016USD ($)$ / shares | Sep. 27, 2015USD ($)$ / shares | Jun. 28, 2015USD ($)$ / shares | Mar. 29, 2015USD ($)$ / shares | Jan. 01, 2017USD ($)$ / shares | Jan. 03, 2016USD ($)$ / shares | Dec. 28, 2014USD ($)$ / shares | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Restaurant sales | $ 240,826 | $ 238,870 | $ 241,368 | $ 222,519 | $ 229,056 | $ 217,676 | $ 219,102 | $ 193,170 | $ 943,583 | $ 859,004 | $ 692,755 |
Operating income (loss) | 6,077 | 9,049 | 13,896 | 6,680 | 11,561 | 11,751 | 12,358 | (4,462) | 35,702 | 31,208 | (7,551) |
Net income (loss) | $ 29,462 | $ 4,489 | $ 9,376 | $ 2,145 | $ 7,018 | $ 7,239 | $ (4,977) | $ (9,276) | $ 45,472 | $ 4 | $ (38,117) |
Basic and diluted net income (loss) per share | $ / shares | $ 0.65 | $ 0.10 | $ 0.21 | $ 0.05 | $ 0.16 | $ 0.16 | $ (0.14) | $ (0.27) | $ 1.01 | $ 0 | $ (1.23) |
Restaurants at end of period | 753 | 734 | 723 | 717 | 705 | 660 | 657 | 659 | 753 | 705 |
Selected Quarterly Financial 96
Selected Quarterly Financial and Earnings Data (Unaudited) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 01, 2017USD ($) | Oct. 02, 2016USD ($) | Jul. 03, 2016USD ($) | Apr. 03, 2016USD ($) | Jan. 03, 2016USD ($) | Sep. 27, 2015USD ($) | Jun. 28, 2015USD ($) | Mar. 29, 2015USD ($) | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Dec. 30, 2012 | |
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Restaurants Acquired | 27 | 11 | 6 | 12 | 46 | 5 | 4 | 56 | 55 | 123 | 278 | |
Acquisition-related costs | $ 800 | $ 500 | $ 200 | $ 400 | $ 800 | $ 100 | $ 200 | |||||
Impairment and other lease charges | 1,200 | $ 700 | 300 | $ 200 | $ 300 | $ 400 | $ 700 | $ 1,600 | $ 2,355 | $ 3,078 | $ 3,541 | |
Insured Event, Gain (Loss) | $ 700 | $ 500 | $ (1,200) | |||||||||
Number of Restaurants | 753 | 734 | 723 | 717 | 705 | 660 | 657 | 659 | 753 | 705 | ||
Gain (Loss) on Condemnation | $ 500 | |||||||||||
Income tax expense, valuation allowance | $ (30,400) | $ (30,374) | $ 2,959 | $ 24,326 | ||||||||
Closed restaurants | 9 | |||||||||||
Weeks In fiscal period | 14 | 52 | 53 | 52 | ||||||||
Damage from Fire, Explosion or Other Hazard [Member] | ||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Properties damaged in fire | 1 | 1 | 2 | |||||||||
Unfavorable Regulatory Action [Member] | ||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Number of Restaurants | 1 | 1 | 1 |
Valuation and Qualifying Acco97
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Deferred Tax Assets, Valuation Allowance Beginning of Year | $ 30,374 | $ 27,423 | $ 2,687 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0 | 2,959 | 24,326 |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | (8) | 410 |
Valuation Allowances and Reserves, Deductions | (30,374) | 0 | 0 |
Deferred Tax Assets, Valuation Allowance, End of Year | $ 0 | $ 30,374 | $ 27,423 |