Income Taxes (Tables)

12 Months Ended

Dec. 29, 2020

Income Tax Disclosure [Abstract]

Schedule of the Components of the Provision (Benefit) for Income Taxes

The components of the provision (benefit) for income taxes are as follows for 2020, 2019 and 2018 (in thousands):

	2020		2019		2018
Current tax provision:
Federal	$	—	$	—	$	—
State	44		36		35
	44		36		35
Deferred tax provision (benefit):
Federal	30		52		(202)
State	10		16		(81)
	40		68		(283)
Total provision (benefit) for income taxes	$	84	$	104	$	(248)

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of income tax provision (benefit) that would result from applying the federal statutory rate to pre-tax income as shown in the accompanying Consolidated Statements of Operations is as follows for 2020, 2019 and 2018 (in thousands):

	2020			2019			2018
Federal income tax (benefit) provision at federal rate	$	(4,867)		$	368		$	(1,825)
State income tax (benefit) provision, net of federal tax	(1,191)			168			(623)
Other permanent differences	288			327			70
Tax credits	(390)			(408)			(602)
Change in valuation allowance	6,104			(913)			2,600
Tax rate change	(25)			23			(248)
Deferred tax asset write-off	157			566			212
Other items, net	8			(27)			168
Provision (benefit) for income taxes	$	84		$	104		$	(248)
Effective income tax rate	(0.4)		%	5.9		%	2.9		%

Schedule of Deferred Tax Assets and Liabilities

The Company’s total deferred tax assets and liabilities are as follows (in thousands):

	2020		2019
Deferred tax assets	$	111,831	$	104,931
Deferred tax liabilities	(66,551)		(65,715)
Total deferred tax assets	45,280		39,216
Valuation allowance	(45,520)		(39,416)
Net deferred tax liabilities	$	(240)	$	(200)

Deferred income taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Deferred income tax liabilities and assets consist of the following (in thousands):

	2020		2019
Deferred tax assets (liabilities):
Loss carry forwards	$	37,852	$	30,255
Deferred franchise revenue	1,506		909
Property, equipment and intangible assets	(11,063)		(8,242)
Stock-based compensation	1,384		1,376
Tax credit carry forwards	4,326		3,936
Inventory smallwares	(1,740)		(1,748)
Other accrued expenses	1,861		533
Operating lease assets	(53,748)		(55,725)
Operating lease liabilities	63,799		67,166
Other	1,103		756
Total net deferred tax assets	45,280		39,216
Valuation allowance	(45,520)		(39,416)
Net deferred tax liabilities	$	(240)	$	(200)