QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | ☑ | Emerging growth company | ||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company |
September 24, 2023 | December 25, 2022 | ||||||||||
Assets | (Unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable | |||||||||||
Lease incentives receivable | |||||||||||
Inventories | |||||||||||
Income tax receivable | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease assets | |||||||||||
Deferred tax asset, net | |||||||||||
Other assets and intangible assets, net | |||||||||||
Tradename | |||||||||||
Goodwill | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Income tax payable | |||||||||||
Total current liabilities | |||||||||||
Operating lease liabilities, less current portion | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Preferred stock, $ | |||||||||||
Paid-in capital | |||||||||||
Retained earnings | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||||||||
September 24, 2023 | September 25, 2022 | September 24, 2023 | September 25, 2022 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Labor | |||||||||||||||||||||||
Operating | |||||||||||||||||||||||
Occupancy | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Marketing | |||||||||||||||||||||||
Restaurant pre-opening | |||||||||||||||||||||||
Impairment, closed restaurant and other costs | |||||||||||||||||||||||
Depreciation | |||||||||||||||||||||||
Total costs and expenses | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest income, net | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Thirteen Weeks Ended | |||||||||||||||||||||||||||||
Common Stock | Retained | ||||||||||||||||||||||||||||
Shares | Amount | Paid-in Capital | Earnings | Total | |||||||||||||||||||||||||
Balance, June 25, 2023 | $ | $ | $ | $ | |||||||||||||||||||||||||
Stock-based compensation | — | ||||||||||||||||||||||||||||
Proceeds from exercise of stock options | |||||||||||||||||||||||||||||
Settlement of restricted stock units | |||||||||||||||||||||||||||||
Repurchase of shares of common stock | ( | ( | ( | ( | |||||||||||||||||||||||||
Indirect repurchase of shares for minimum tax withholdings | ( | ( | ( | ||||||||||||||||||||||||||
Net income | — | ||||||||||||||||||||||||||||
Balance, September 24, 2023 | $ | $ | $ | $ | |||||||||||||||||||||||||
Balance, June 26, 2022 | $ | $ | $ | $ | |||||||||||||||||||||||||
Stock-based compensation | — | ||||||||||||||||||||||||||||
Settlement of restricted stock units | |||||||||||||||||||||||||||||
Repurchase of shares of common stock | ( | ( | ( | ( | |||||||||||||||||||||||||
Indirect repurchase of shares for minimum tax withholdings | ( | ( | ( | ||||||||||||||||||||||||||
Net income | — | ||||||||||||||||||||||||||||
Balance, September 25, 2022 | $ | $ | $ | $ | |||||||||||||||||||||||||
Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||||
Common Stock | Retained | ||||||||||||||||||||||||||||
Shares | Amount | Paid-in Capital | Earnings | Total | |||||||||||||||||||||||||
Balance, December 25, 2022 | $ | $ | $ | $ | |||||||||||||||||||||||||
Stock-based compensation | — | ||||||||||||||||||||||||||||
Proceeds from exercise of stock options | |||||||||||||||||||||||||||||
Settlement of restricted stock units | ( | ||||||||||||||||||||||||||||
Repurchase of shares of common stock | ( | ( | ( | ( | |||||||||||||||||||||||||
Indirect repurchase of shares for minimum tax withholdings | ( | ( | ( | ( | |||||||||||||||||||||||||
Net income | — | ||||||||||||||||||||||||||||
Balance, September 24, 2023 | $ | $ | $ | $ | |||||||||||||||||||||||||
Balance, December 26, 2021 | $ | $ | $ | $ | |||||||||||||||||||||||||
Stock-based compensation | — | ||||||||||||||||||||||||||||
Settlement of restricted stock units | ( | ||||||||||||||||||||||||||||
Repurchase of shares of common stock | ( | ( | ( | ( | |||||||||||||||||||||||||
Indirect repurchase of shares for minimum tax withholdings | ( | ( | ( | ( | |||||||||||||||||||||||||
Net income | — | ||||||||||||||||||||||||||||
Balance, September 25, 2022 | $ | $ | $ | $ |
Thirty-Nine Weeks Ended | |||||||||||
September 24, 2023 | September 25, 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of operating lease assets | |||||||||||
Amortization of loan origination costs | |||||||||||
Impairment, closed restaurant and other costs | |||||||||||
Stock-based compensation | |||||||||||
Loss on disposal of property and equipment | |||||||||||
Deferred income taxes | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Income tax receivable and payable | ( | ||||||||||
Inventories | |||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Accrued and other liabilities | ( | ||||||||||
Operating lease liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment, net | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Loan origination costs | ( | ||||||||||
Repurchase of shares of common stock | ( | ( | |||||||||
Proceeds from the exercise of stock options | |||||||||||
Indirect repurchase of shares for minimum tax withholdings | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Property and equipment and other assets acquired by accounts payable | $ | $ | |||||||||
Supplemental cash flow disclosures: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||||||||
September 24, 2023 | September 25, 2022 | September 24, 2023 | September 25, 2022 | ||||||||||||||||||||
BASIC | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||||||||
Basic net income per common share | $ | $ | $ | $ | |||||||||||||||||||
DILUTED | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||||||||
Dilutive effect of stock options and restricted stock units | |||||||||||||||||||||||
Weighted-average of diluted shares | |||||||||||||||||||||||
Diluted net income per common share | $ | $ | $ | $ |
Shares | Weighted Average Fair Value | Weighted Average Remaining Contractual Term (Year) | |||||||||||||||
Outstanding at December 25, 2022 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Vested | ( | ||||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding at September 24, 2023 | $ |
September 24, 2023 | December 25, 2022 | ||||||||||
Accrued compensation and related benefits | $ | $ | |||||||||
Other accruals | |||||||||||
Property tax | |||||||||||
Sales and use tax | |||||||||||
Deferred gift card revenue | |||||||||||
Total accrued liabilities | $ | $ |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||||||||
Lease cost | September 24, 2023 | September 25, 2022 | September 24, 2023 | September 25, 2022 | |||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Variable lease cost | |||||||||||||||||||||||
$ | $ | $ | $ |
Thirty-Nine Weeks Ended | |||||||||||
September 24, 2023 | September 25, 2022 | ||||||||||
Cash paid for operating lease liabilities | $ | $ | |||||||||
Operating lease assets obtained in exchange for operating lease liabilities(a) |
Operating leases | Classification | September 24, 2023 | December 25, 2022 | |||||||||||
Right-of-use assets | Operating lease assets | $ | $ | |||||||||||
Deferred rent payments | Operating lease liability | |||||||||||||
Current lease liabilities | Operating lease liability | |||||||||||||
Deferred rent payments | Operating lease liability, less current portion | |||||||||||||
Non-current lease liabilities | Operating lease liability, less current portion | |||||||||||||
Total lease liabilities | $ | $ | ||||||||||||
Weighted average remaining lease term (in years) | ||||||||||||||
Weighted average discount rate | % |
Fiscal year ending: | |||||
Remainder of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total minimum lease payments | |||||
Less: imputed interest | |||||
Present value of lease liabilities | $ |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||||||||
September 24, 2023 | September 25, 2022 | September 24, 2023 | September 25, 2022 | ||||||||||||||||||||
Expected income tax expense | $ | $ | $ | $ | |||||||||||||||||||
State tax expense, net of federal benefit | |||||||||||||||||||||||
FICA tip credit | ( | ( | ( | ( | |||||||||||||||||||
Officers' compensation | |||||||||||||||||||||||
Stock compensation | ( | ( | ( | ||||||||||||||||||||
Other | |||||||||||||||||||||||
Income tax expense | $ | $ | $ | $ |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||||||||
September 24, 2023 | September 25, 2022 | September 24, 2023 | September 25, 2022 | ||||||||||||||||||||
Property and equipment impairment | |||||||||||||||||||||||
Total impairment charge | |||||||||||||||||||||||
Closed restaurant costs | |||||||||||||||||||||||
Loss (gain) on lease termination | ( | ( | |||||||||||||||||||||
Impairment, closed restaurant and other costs | $ | $ | $ | $ |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||||||||
September 24, 2023 | September 25, 2022 | September 24, 2023 | September 25, 2022 | ||||||||||||||||||||
Total open restaurants (at end of period) | 100 | 97 | 100 | 97 | |||||||||||||||||||
Total comparable restaurants (at end of period) | 94 | 92 | 94 | 92 | |||||||||||||||||||
Average unit volumes (in thousands) | $ | 1,124 | $ | 1,101 | $ | 3,470 | $ | 3,317 | |||||||||||||||
Change in comparable restaurant sales(1) | 2.0 | % | 2.6 | % | 4.3 | % | 4.9 | % | |||||||||||||||
Average check | $ | 19.07 | $ | 18.37 | $ | 19.04 | $ | 18.08 |
Thirteen Weeks Ended | |||||||||||||||||||||||||||||||||||
September 24, 2023 | % of Revenue | September 25, 2022 | % of Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
Revenue | $ | 113,464 | 100.0 | % | $ | 106,682 | 100.0 | % | $ | 6,782 | 6.4 | % | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
Cost of sales | 28,517 | 25.1 | 29,149 | 27.3 | (632) | (2.2) | |||||||||||||||||||||||||||||
Labor | 34,548 | 30.4 | 32,378 | 30.4 | 2,170 | 6.7 | |||||||||||||||||||||||||||||
Operating | 19,047 | 16.8 | 17,441 | 16.3 | 1,606 | 9.2 | |||||||||||||||||||||||||||||
Occupancy | 7,772 | 6.8 | 7,490 | 7.0 | 282 | 3.8 | |||||||||||||||||||||||||||||
General and administrative | 7,885 | 6.9 | 6,700 | 6.3 | 1,185 | 17.7 | |||||||||||||||||||||||||||||
Marketing | 1,609 | 1.5 | 1,541 | 1.5 | 68 | 4.4 | |||||||||||||||||||||||||||||
Restaurant pre-opening | 343 | 0.3 | 266 | 0.2 | 77 | 28.9 | |||||||||||||||||||||||||||||
Impairment, closed restaurant and other costs | 1,017 | 0.9 | 1,190 | 1.1 | (173) | (14.5) | |||||||||||||||||||||||||||||
Depreciation | 5,378 | 4.8 | 5,102 | 4.8 | 276 | 5.4 | |||||||||||||||||||||||||||||
Total costs and expenses | 106,116 | 93.5 | 101,257 | 94.9 | 4,859 | 4.8 | |||||||||||||||||||||||||||||
Income from operations | 7,348 | 6.5 | 5,425 | 5.1 | 1,923 | 35.4 | |||||||||||||||||||||||||||||
Interest income, net | (945) | (0.8) | (331) | (0.3) | (614) | 185.5 | |||||||||||||||||||||||||||||
Income before income taxes | 8,293 | 7.3 | 5,756 | 5.4 | 2,537 | 44.1 | |||||||||||||||||||||||||||||
Income tax expense | 1,219 | 1.1 | 767 | 0.7 | 452 | 58.9 | |||||||||||||||||||||||||||||
Net income | $ | 7,074 | 6.2 | % | $ | 4,989 | 4.7 | % | $ | 2,085 | 41.8 | % | |||||||||||||||||||||||
Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||||||||||
September 24, 2023 | % of Revenue | September 25, 2022 | % of Revenue | $ Change | % Change | ||||||||||||||||||||||||||||||
Revenue | $ | 344,963 | 100.0 | % | $ | 318,114 | 100.0 | % | $ | 26,849 | 8.4 | % | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
Cost of sales | 86,667 | 25.1 | 86,266 | 27.1 | 401 | 0.5 | |||||||||||||||||||||||||||||
Labor | 30.1 | 94,470 | 29.7 | 9,339 | 9.9 | ||||||||||||||||||||||||||||||
Operating | 16.2 | 51,164 | 16.1 | 4,857 | 9.5 | ||||||||||||||||||||||||||||||
Occupancy | 23,770 | 6.9 | 22,698 | 7.1 | 1,072 | 4.7 | |||||||||||||||||||||||||||||
General and administrative | 23,389 | 6.8 | 19,848 | 6.2 | 3,541 | 17.8 | |||||||||||||||||||||||||||||
Marketing | 4,852 | 1.5 | 4,568 | 1.5 | 284 | 6.2 | |||||||||||||||||||||||||||||
Restaurant pre-opening | 1,437 | 0.4 | 733 | 0.2 | 704 | 96.0 | |||||||||||||||||||||||||||||
Impairment, closed restaurant and other costs | 1,870 | 0.5 | 3,203 | 1.0 | (1,333) | (41.6) | |||||||||||||||||||||||||||||
Depreciation | 15,740 | 4.6 | 15,065 | 4.8 | 675 | 4.5 | |||||||||||||||||||||||||||||
Total costs and expenses | 317,555 | 92.1 | 298,015 | 93.7 | 19,540 | 6.6 | |||||||||||||||||||||||||||||
Income from operations | 27,408 | 7.9 | 20,099 | 6.3 | 7,309 | 36.4 | |||||||||||||||||||||||||||||
Interest income, net | (2,576) | (0.8) | (378) | (0.3) | (2,198) | 581.5 | |||||||||||||||||||||||||||||
Income before income taxes | 29,984 | 8.7 | 20,477 | 6.4 | 9,507 | 46.4 | |||||||||||||||||||||||||||||
Income tax expense | 3,954 | 1.2 | 2,099 | 0.6 | % | 1,855 | 88.4 | ||||||||||||||||||||||||||||
Net income | $ | 26,030 | 7.5 | % | $ | 18,378 | 5.8 | % | $ | 7,652 | 41.6 | % | |||||||||||||||||||||||
Thirty-Nine Weeks Ended | |||||||||||
September 24, 2023 | September 25, 2022 | ||||||||||
Net cash provided by operating activities | $ | 45,175 | $ | 32,873 | |||||||
Net cash used in investing activities | (28,654) | (20,113) | |||||||||
Net cash used in financing activities | (24,686) | (35,255) | |||||||||
Net decrease in cash and cash equivalents | (8,165) | (22,495) | |||||||||
Cash and cash equivalents at beginning of year | 78,028 | 106,621 | |||||||||
Cash and cash equivalents at end of period | $ | 69,863 | $ | 84,126 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (1) | |||||||||||||||||||
June 26, 2023 through July 23, 2023 | — | $ | — | — | $ | 47.0 | |||||||||||||||||
July 24, 2023 through August 20, 2023 | 213,085 | 38.26 | 213,085 | 38.9 | |||||||||||||||||||
August 21, 2023 through September 24, 2023 | 325,822 | 36.55 | 325,822 | 27.0 | |||||||||||||||||||
Total | 538,907 | $ | 37.23 | 538,907 |
Exhibit No. | Description of Exhibit | ||||
Certificate of Amendment to the Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed on July 28, 2023) | |||||
Amended and Restated Bylaws (incorporated by reference to Exhibit 3.3 to the Company's Current Report on Form 8-K, filed on July 28, 2023) | |||||
Chuy’s Holdings, Inc. 2023 Employee Stock Purchase Plan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on July 28, 2023) | |||||
Amended and Restated Credit Agreement dated as of September 27, 2023, by and among Chuy’s Holdings, Inc., as borrower, the subsidiaries of Chuy’s Holdings, Inc., as guarantors, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A., as administrative agent, swingline lender and issuing lender (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on September 28, 2023) | |||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002 | |||||
101.INS | Inline XBRL Instance Document (The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document) | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
CHUY’S HOLDINGS, INC. | ||||||||
By: | /s/ Steven J. Hislop | |||||||
Name: | Steven J. Hislop | |||||||
Title: | President and Chief Executive Officer | |||||||
(Principal Executive Officer) |
By: | /s/ Jon W. Howie | |||||||
Name: | Jon W. Howie | |||||||
Title: | Vice President and Chief Financial Officer | |||||||
(Principal Financial and Accounting Officer) |
/s/ Steven J. Hislop | ||
Steven J. Hislop | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
/s/ Jon W. Howie | ||
Jon W. Howie | ||
Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
/s/ Steven J. Hislop | ||
Steven J. Hislop | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
/s/ Jon W. Howie | ||
Jon W. Howie | ||
Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 24, 2023 |
Dec. 25, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock - shares authorized | 60,000,000 | 60,000,000 |
Common stock - shares issued | 17,501,620 | 17,998,170 |
Common stock - shares outstanding | 17,501,620 | 17,998,170 |
Preferred stock - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock - authorized | 15,000,000 | 15,000,000 |
Preferred stock - issued | 0 | 0 |
Preferred stock - outstanding | 0 | 0 |
Unaudited Condensed Consolidated Income Statements - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 24, 2023 |
Sep. 25, 2022 |
Sep. 24, 2023 |
Sep. 25, 2022 |
|
Income Statement [Abstract] | ||||
Revenue | $ 113,464 | $ 106,682 | $ 344,963 | $ 318,114 |
Costs and expenses: | ||||
Cost of sales | 28,517 | 29,149 | 86,667 | 86,266 |
Labor | 34,548 | 32,378 | 103,809 | 94,470 |
Operating | 19,047 | 17,441 | 56,021 | 51,164 |
Occupancy | 7,772 | 7,490 | 23,770 | 22,698 |
General and administrative | 7,885 | 6,700 | 23,389 | 19,848 |
Marketing | 1,609 | 1,541 | 4,852 | 4,568 |
Restaurant pre-opening | 343 | 266 | 1,437 | 733 |
Impairment, closed restaurant and other costs | 1,017 | 1,190 | 1,870 | 3,203 |
Depreciation | 5,378 | 5,102 | 15,740 | 15,065 |
Total costs and expenses | 106,116 | 101,257 | 317,555 | 298,015 |
Income from operations | 7,348 | 5,425 | 27,408 | 20,099 |
Interest income, net | (945) | (331) | (2,576) | (378) |
Income before income taxes | 8,293 | 5,756 | 29,984 | 20,477 |
Income tax expense | 1,219 | 767 | 3,954 | 2,099 |
Net income | $ 7,074 | $ 4,989 | $ 26,030 | $ 18,378 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.40 | $ 0.27 | $ 1.45 | $ 0.97 |
Diluted (in dollars per share) | $ 0.39 | $ 0.27 | $ 1.44 | $ 0.97 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 17,877,063 | 18,685,401 | 17,992,608 | 18,901,542 |
Diluted (in shares) | 17,987,525 | 18,761,263 | 18,103,825 | 19,010,238 |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 24, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Chuy’s Holdings, Inc. (the “Company” or “Chuy’s”) develops and operates Chuy’s restaurants throughout the United States. Chuy’s is a growing, full-service restaurant concept offering a distinct menu of authentic, freshly-prepared Mexican and Tex-Mex inspired food. As of September 24, 2023, the Company operated 100 restaurants across 16 states. In the opinion of management, the accompanying unaudited condensed consolidated financial statements and the related notes reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), except that certain information and notes have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (the “SEC”). Results for interim periods are not necessarily indicative of the results that may be expected for the full fiscal year. The unaudited condensed consolidated financial statements should be read in conjunction with consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2022. The accompanying condensed consolidated balance sheet as of December 25, 2022, has been derived from our audited consolidated financial statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from those estimates. The Company operates on a 52- or 53- week fiscal year that ends on the last Sunday of the calendar year. Each quarterly period has 13 weeks, except for a 53-week year when the fourth quarter has 14 weeks. Our 2023 fiscal year consists of 53 weeks and our 2022 fiscal year consisted of 52 weeks.
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Recent Accounting Pronouncements |
9 Months Ended |
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Sep. 24, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on the Company's consolidated financial statements. |
Net Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income Per Share The number of shares and net income per share data for all periods presented are based on the historical weighted-average shares of common stock outstanding. Basic net income per share of the Company's common stock is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share of common stock is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive common stock equivalents outstanding during the period using the treasury stock method for dilutive options and restricted stock units (the options and restricted stock units were granted under the Chuy's Holdings, Inc. 2012 Omnibus Equity Incentive Plan (the "2012 Plan") and the Chuy's Holdings, Inc. 2020 Omnibus Incentive Plan (the "2020 Plan")). For the thirteen weeks ended September 24, 2023 and September 25, 2022, there were approximately 44 and 91,952 shares, respectively, of common stock equivalents that were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive. For the thirty-nine weeks ended September 24, 2023 and September 25, 2022, there were approximately 171 and 65,638 shares, respectively, of common stock equivalents that were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive. The computation of basic and diluted net income per share is as follows:
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company has outstanding awards under the 2012 Plan and the 2020 Plan. On July 30, 2020, the Company’s stockholders approved the 2020 Plan, which replaced the 2012 Plan and no further awards may be granted under the 2012 plan. The termination of the 2012 Plan did not affect outstanding awards granted under the 2012 Plan. Options granted under these plans vest over five years from the date of grant and have a maximum term of ten years. As of September 24, 2023, the Company had 1,819 of stock options outstanding and exercisable with a remaining weighted average contractual term of less than one year. Restricted stock units granted under the 2012 Plan and 2020 Plan vest over four years to five years from the date of grant. As of September 24, 2023, a total of 743,117 shares of common stock were reserved and remained available for issuance under the 2020 Plan. Stock-based compensation expense recognized in the accompanying condensed consolidated income statements was approximately $1.0 million and $0.9 million for the thirteen weeks ended September 24, 2023 and September 25, 2022, respectively. Stock-based compensation expense recognized in the accompanying condensed consolidated income statements was approximately $3.0 million and $2.9 million for the thirty-nine weeks ended September 24, 2023 and September 25, 2022. On July 27, 2023, the Company’s stockholders approved the 2023 Employee Stock Purchase Plan ("the 2023 ESPP"). As of September 24, 2023, the Company had 500,000 shares of common stock reserved and available for issuance under the 2023 ESPP. As of September 24, 2023, there has not been any offering period or purchase period under the 2023 ESPP, and no such period will begin unless and until determined by the administrator. A summary of stock-based compensation activity related to restricted stock units for the thirty-nine weeks ended September 24, 2023 is as follows:
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Long-Term Debt |
9 Months Ended |
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Sep. 24, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Revolving Credit Facility On July 30, 2021, the Company entered into a secured $35.0 million revolving credit facility with JPMorgan Chase Bank, N.A. (the “Credit Facility”). The Credit Facility may be increased up to an additional $25.0 million subject to certain conditions and at the Company’s option if the lenders agree to increase their commitments. The Credit Facility will mature on July 30, 2024, unless the Company exercises its option to voluntarily and permanently reduce all of the commitments before the maturity date. On June 30, 2023, the Company entered into Amendment No. 1 (the “Amendment”) to the Credit Facility with JPMorgan Chase Bank, N.A. The Amendment replaced the London Interbank Offered Rate (“LIBOR”) interest rate with an Adjusted Term Secured Overnight Financing Rate (“Adjusted Term SOFR”) interest rate. The Credit Facility contains representations and warranties, affirmative and negative covenants and events of default that the Company considers customary for an agreement of this type. The agreement requires the Company to be in compliance with a minimum fixed charge coverage ratio of no less than 1.25 to 1.00, and a maximum consolidated total lease adjusted leverage ratio of no more than 4.00 to 1.00. The Credit Facility also has certain restrictions on the payment of dividends and distributions. Under the Credit Facility, the Company may declare and make dividend payments so long as (i) no default or event of default has occurred and is continuing or would result therefrom and (ii) immediately after giving effect to any such dividend payment, on a pro forma basis, the consolidated total lease adjusted leverage ratio does not exceed 3.50 to 1.00. Borrowings under the Credit Facility accrue interest at a per annum rate equal to, at the Company’s election, either Adjusted Term SOFR plus a margin of 1.5% to 2.0%, depending on the Company’s consolidated total lease adjusted leverage ratio, or a base rate determined according to the highest of (a) the prime rate, (b) the federal funds rate plus 0.5% or (c) Adjusted Term SOFR plus 1.0%, plus a margin of 0.5% to 1.0%, depending on the Company’s consolidated total lease adjusted leverage ratio. An unused commitment fee at a rate of 0.125% applies to unutilized borrowing capacity under the Credit Facility. The obligations under the Company’s Credit Facility are guaranteed by certain subsidiaries of the Company and, subject to certain exceptions, secured by a continuing security interest in substantially all of the Company’s assets. As of September 24, 2023, the Company had no borrowings under the Credit Facility, and was in compliance with all covenants under the Credit Facility. Subsequent to the quarter end, on September 27, 2023, the Company entered into an Amended and Restated Credit Agreement (the “A&R Credit Facility”) with JPMorgan Chase Bank, N.A. to, among other things, (1) extend the maturity date of the credit facility to September 27, 2026 from July 30, 2024, (2) revise the adjustment applicable to the Adjusted Term SOFR rate as well as the commitment fee and (3) reduce the aggregate principal commitment to $25.0 million which could be increased up to an additional $35.0 million at the Company’s option if the lenders agree to increase their commitments.
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Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued Liabilities The major classes of accrued liabilities at September 24, 2023 and December 25, 2022 are summarized as follows:
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Stockholders' Equity |
9 Months Ended |
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Sep. 24, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchase Program On October 28, 2021, the Company’s Board of Directors replaced the Company's previous $30.0 million share repurchase program and approved a new share repurchase program under which the Company may repurchase up to $50.0 million of its common shares outstanding. This repurchase program became effective on October 28, 2021. The Company repurchased 557,576 shares for approximately $12.8 million during the third quarter of 2022 and 1,334,388 shares for approximately $33.8 million during the thirty-nine weeks ended September 25, 2022. As of December 25, 2022, the Company completed its previous $50.0 million repurchase program. On October 27, 2022, the Company’s Board of Directors approved a new share repurchase program under which the Company may repurchase up to $50.0 million of its common shares outstanding through December 31, 2024. The Company repurchased 538,907 shares for approximately $20.0 million during the third quarter of 2023 and 622,428 shares of its common stock for a total of approximately $23.0 million during the thirty-nine weeks ended September 24, 2023. As of September 24, 2023, the Company had $27.0 million remaining under its $50.0 million repurchase program. Repurchases of the Company's outstanding common stock will be made in accordance with applicable laws and may be made at management's discretion from time to time in the open market, through privately negotiated transactions or otherwise, including pursuant to Rule 10b5-1 trading plans. There is no guarantee as to the exact number of shares to be repurchased by the Company. The timing and extent of repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, and repurchases may be discontinued at any time.
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Contingencies |
9 Months Ended |
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Sep. 24, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesThe Company is involved in various legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on our condensed consolidated financial position, results of operations, or cash flows. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company determines if a contract contains a lease at inception. The Company's material long-term operating lease agreements are for the land and buildings for our restaurants as well as our corporate offices. The lease term begins on the date that the Company takes possession under the lease, including the pre-opening period during construction, when in many cases the Company is not making rent payments. The initial lease terms range from 10 to 15 years, most of which include renewal options totaling 10 to 15 years. The lease term is generally the minimum of the noncancelable period or the lease term including renewal options which are reasonably certain of being exercised up to a term of approximately 20 years. Operating lease assets and liabilities are recognized at the lease commencement date for material leases with a term of greater than 12 months. Operating lease liabilities represent the present value of future minimum lease payments. Since our leases do not provide an implicit rate, our operating lease liabilities are calculated using the Company's secured incremental borrowing rate at lease commencement. We estimate this rate based on prevailing financial market conditions, comparable companies, credit analysis and management judgment. Minimum lease payments include only fixed lease components of the agreement, as well as variable rate payments that depend on an index, initially measured using the index at the lease commencement date. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepaid or accrued lease payments, initial direct costs and lease incentives. Lease incentives are recognized when construction milestones are met and reduce our operating lease asset. They are amortized through the operating lease assets as reductions of rent expense over the lease term. Operating lease expense is recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on a rate or index, escalation in the index subsequent to the initial measurement, payments associated with non-lease components such as common area maintenance, real estate taxes and insurance, and short-term lease payments (leases with a term with 12 months or less) are expensed as incurred. Certain of the Company’s operating leases contain clauses that provide for contingent rent based on a percentage of sales greater than certain specified target amounts. These variable payments are expensed when the achievement of the specified target that triggers the contingent rent is considered probable. As of September 24, 2023, all of the Company's leases were operating. Components of operating lease costs are included in occupancy, closed restaurant costs, restaurant pre-opening, general and administrative expense and property and equipment, net:
Supplemental cash flow disclosures and other lease information:
(a) The thirty-nine weeks ended September 24, 2023 includes a $2.7 million increase due to extending remaining lives of certain leases, partially offset by a $1.9 million decrease as a result of a purchase of an existing operating lease and a $0.6 million decrease as a result of the termination of a closed restaurant lease. The thirty-nine weeks ended September 25, 2022 includes a $7.4 million increase to operating lease assets and liabilities related to new lease commencements, a $2.8 million increase due to extending remaining lives of certain leases, partially offset by a $2.5 million decrease as a result of the termination of closed restaurant leases. The Company recorded no deferred lease incentives during the thirty-nine weeks ended September 24, 2023 and $1.0 million of deferred lease incentives during the thirty-nine weeks ended September 25, 2022. Supplemental balance sheet disclosures:
Future minimum rent payments for our operating leases for the next five years as of September 24, 2023 are as follows:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The following is a reconciliation of the expected federal income taxes at the statutory rates of 21%:
Deferred tax assets are reduced by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred taxes will not be realized. Both positive and negative evidence is considered in forming management’s judgment as to whether a valuation allowance is appropriate, and more weight is given to evidence that can be objectively verified. The tax benefits relating to any reversal of the valuation allowance on the deferred tax assets would be recognized as a reduction of future income tax expense. As of September 24, 2023, the Company believes that it will realize all of its deferred tax assets. Therefore, no valuation allowance has been recorded. The Internal Revenue Service ("IRS") audited our tax return for the fiscal year 2016. In August 2020, the IRS issued a Notice of Proposed Adjustment to the Company asserting that the tenant allowances paid to us under our operating leases should be recorded as taxable income for years 2016 and prior. The Company disagrees with this position based on the underlying facts and circumstances as well as standard industry practice. The Company estimates if the IRS's position was upheld, the Company's tax liability associated with this position could range between $0.5 million and $2.5 million. In accordance with the provisions of FASB Accounting Standards Codification Subtopic 740-10, Accounting for Uncertainty in Income Taxes, the Company believes that it is more likely than not that the Company's position will ultimately be sustained upon further examination, including the resolution of the IRS's appeal or litigation processes, if any. As of September 24, 2023 and September 25, 2022, the Company recognized no liability for uncertain tax positions. It is the Company’s policy to include any penalties and interest related to income taxes in its income tax provision. However, the Company currently has no penalties or interest related to income taxes. The tax years 2021, 2020 and 2019 remain open for IRS audit. The Company has received no notice of audit or any notifications from the IRS for any of the open tax years.
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Impairment, Closed Restaurant and Other Costs |
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Impairment, Closed Restaurant and Other Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment, Closed Restaurant and Other Costs | Impairment, Closed Restaurant and Other Costs The Company reviews long-lived assets, such as property and equipment, operating lease assets and intangibles, subject to amortization, for impairment when events or circumstances indicate the carrying value of the assets may not be recoverable. In determining the recoverability of the asset value, an analysis is performed at the individual restaurant level and primarily includes an assessment of historical undiscounted cash flows and other relevant factors and circumstances. The Company evaluates future cash flow projections in conjunction with qualitative factors and future operating plans and regularly reviews any restaurants with a deficient level of cash flows for the previous 24 months to determine if impairment testing is necessary. Recoverability of assets to be held and used is measured by a comparison of the carrying value of the restaurant to its estimated future undiscounted cash flows. If the estimated undiscounted future cash flows are less than the carrying value, we determine if there is an impairment loss by comparing the carrying value of the restaurant to its estimated fair value. Based on this analysis, if the carrying value of the restaurant exceeds its estimated fair value, an impairment charge is recognized by the amount by which the carrying value exceeds the fair value. We make assumptions to estimate future cash flows and asset fair values. The estimated fair value is generally determined using the depreciated replacement cost method, the income approach, or discounted cash flow projections. Estimated future cash flows are highly subjective assumptions based on the Company’s projections and understanding of our business, historical operating results, and trends in sales and restaurant level operating costs. The Company’s impairment assessment process requires the use of estimates and assumptions regarding future cash flows and operating outcomes, which are based upon a significant degree of management judgment. The estimates used in the impairment analysis represent a Level 3 fair value measurement. The Company continues to assess the performance of restaurants and monitors the need for future impairment. Changes in the economic environment, real estate markets, capital spending, overall operating performance and underlying assumptions could impact these estimates and result in future impairment charges. The Company recorded impairment, closed restaurant and other costs as follows:
Closed restaurant costs represent on-going expenses to maintain the closed restaurants, such as rent expense, utility and insurance among other costs required to maintain the remaining closed locations The Company terminated one and three of its closed restaurant lease agreements during the thirteen weeks ended September 24, 2023 and September 25, 2022, respectively. The Company terminated and/or subleased one and seven of its closed restaurant lease agreements during the thirty-nine weeks ended September 24, 2023 and September 25, 2022, respectively.
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Net Income Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Net Income Per Share | The computation of basic and diluted net income per share is as follows:
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Stock-Based Compensation (Tables) |
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Sep. 24, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock-Based Compensation Activity Related to Restricted Stock Units | A summary of stock-based compensation activity related to restricted stock units for the thirty-nine weeks ended September 24, 2023 is as follows:
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Accrued Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 24, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | The major classes of accrued liabilities at September 24, 2023 and December 25, 2022 are summarized as follows:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 24, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Operating Lease Costs | Components of operating lease costs are included in occupancy, closed restaurant costs, restaurant pre-opening, general and administrative expense and property and equipment, net:
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Supplemental Cash Flow Information | Supplemental cash flow disclosures and other lease information:
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Supplemental Balance Sheet Information | Supplemental balance sheet disclosures:
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Future Minimum Rent Payments | Future minimum rent payments for our operating leases for the next five years as of September 24, 2023 are as follows:
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Income Taxes (Tables) |
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Sep. 24, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the Expected Income Taxes | The following is a reconciliation of the expected federal income taxes at the statutory rates of 21%:
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Impairment, Closed Restaurant and Other Costs (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 24, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment, Closed Restaurant and Other Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment and Closed Restaurant Costs | The Company recorded impairment, closed restaurant and other costs as follows:
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Basis of Presentation (Details) |
Sep. 24, 2023
numberOfOpenRestaurants
State
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Open Restaurants | numberOfOpenRestaurants | 100 |
Number of States in which Entity Operates | State | 16 |
Net Income Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 24, 2023 |
Sep. 25, 2022 |
Sep. 24, 2023 |
Sep. 25, 2022 |
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BASIC | ||||
Net income | $ 7,074 | $ 4,989 | $ 26,030 | $ 18,378 |
Weighted-average common shares outstanding | 17,877,063 | 18,685,401 | 17,992,608 | 18,901,542 |
Basic net income per common share (in dollars per share) | $ 0.40 | $ 0.27 | $ 1.45 | $ 0.97 |
DILUTED | ||||
Net income | $ 7,074 | $ 4,989 | $ 26,030 | $ 18,378 |
Weighted-average common shares outstanding | 17,877,063 | 18,685,401 | 17,992,608 | 18,901,542 |
Dilutive effect of stock options and restricted stock units | 110,462 | 75,862 | 111,217 | 108,696 |
Weighted-average of diluted shares | 17,987,525 | 18,761,263 | 18,103,825 | 19,010,238 |
Diluted net income per common share (in dollars per share) | $ 0.39 | $ 0.27 | $ 1.44 | $ 0.97 |
Net Income Per Share - Narrative (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 24, 2023 |
Sep. 25, 2022 |
Sep. 24, 2023 |
Sep. 25, 2022 |
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Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 44 | 91,952 | 171 | 65,638 |
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 24, 2023 |
Sep. 25, 2022 |
Sep. 24, 2023 |
Sep. 25, 2022 |
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Stock-based compensation | $ 1,000 | $ 900 | $ 2,962 | $ 2,885 |
Share-based Payment Arrangement, Option | ||||
Award vesting period | 5 years | |||
Maximum term | 10 years | |||
Stock options outstanding (in shares) | 1,819 | 1,819 | ||
Weighted average remaining contractual term | 1 year | |||
Restricted Stock Units (RSUs) | ||||
Unrecognized stock-based compensation expense related to non-vested restricted stock units | $ 9,100 | $ 9,100 | ||
2020 Plan | ||||
Common stock reserved and available for issuance (in shares) | 743,117 | 743,117 | ||
2023 ESPP | ||||
Common stock reserved and available for issuance (in shares) | 500,000 | 500,000 | ||
Minimum | Restricted Stock Units (RSUs) | ||||
Award vesting period | 4 years | |||
Maximum | Restricted Stock Units (RSUs) | ||||
Award vesting period | 5 years |
Stock-Based Compensation - Restricted Stock Units (Details) |
9 Months Ended |
---|---|
Sep. 24, 2023
$ / shares
shares
| |
Shares | |
Outstanding, beginning balance (in shares) | shares | 383,098 |
Granted (in shares) | shares | 136,145 |
Vested (in shares) | shares | (159,706) |
Forfeited (in shares) | shares | (4,126) |
Outstanding, ending balance (in shares) | shares | 355,411 |
Weighted Average Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 27.06 |
Granted (in dollars per share) | $ / shares | 36.76 |
Vested (in dollars per share) | $ / shares | 24.38 |
Forfeited (in dollars per share) | $ / shares | 27.99 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 31.97 |
Weighted Average Remaining Contractual Term [Abstract] | |
Weighted Average Remaining Contractual Term (Year) | 2 years 8 months 4 days |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Sep. 24, 2023 |
Dec. 25, 2022 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued compensation and related benefits | $ 12,861 | $ 9,117 |
Other accruals | 7,039 | 5,202 |
Property tax | 3,857 | 2,820 |
Sales and use tax | 3,043 | 3,007 |
Deferred gift card revenue | 2,480 | 3,175 |
Total accrued liabilities | $ 29,280 | $ 23,321 |
Stockholders' Equity (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 24, 2023 |
Sep. 25, 2022 |
Sep. 24, 2023 |
Sep. 25, 2022 |
Oct. 27, 2022 |
Oct. 28, 2021 |
Oct. 31, 2019 |
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Stockholders' Equity Note [Abstract] | |||||||
Stock repurchase program, authorized amount | $ 50,000 | $ 50,000 | $ 30,000 | ||||
Repurchase of shares of common stock (in shares) | 538,907 | 557,576 | 622,428 | 1,334,388 | |||
Repurchase of shares of common stock | $ 20,291 | $ 12,755 | $ 23,252 | $ 33,807 | |||
Repurchase of shares of common stock, net | 20,000 | 23,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 27,000 | $ 27,000 |
Leases - Narrative (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 24, 2023 |
Sep. 25, 2022 |
|
Lessee, Lease, Description [Line Items] | ||
Initial lease term | 20 years | |
Deferred lease incentives | $ 1,000 | |
Operating lease payments, minimum lease payments excluded, not yet taken possession of leases | $ 12,100 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Initial lease term | 10 years | |
Lease terms renewal | 10 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Initial lease term | 15 years | |
Lease terms renewal | 15 years |
Leases - Components of Operating Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 24, 2023 |
Sep. 25, 2022 |
Sep. 24, 2023 |
Sep. 25, 2022 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 6,019 | $ 6,072 | $ 18,060 | $ 18,426 |
Variable lease cost | 443 | 358 | 1,374 | 1,094 |
Lease cost | $ 6,462 | $ 6,430 | $ 19,434 | $ 19,520 |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 24, 2023 |
Sep. 25, 2022 |
|
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 20,520 | $ 23,377 |
Operating lease assets obtained in exchange for operating lease liabilities | 197 | 7,724 |
Change in operating lease assets and liabilities due to lease remeasurement | 2,700 | 2,800 |
Change in operating lease assets and liabilities due to lease purchases | (1,900) | |
Change in operating lease assets and liabilities due to lease terminations | $ (600) | (2,500) |
Change in operating lease assets and liabilities due to lease commencements | $ 7,400 |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Sep. 24, 2023 |
Dec. 25, 2022 |
---|---|---|
Leases [Abstract] | ||
Right-of-use assets | $ 139,491 | $ 146,920 |
Deferred rent payments | 5 | 84 |
Current lease liabilities | 12,548 | 12,415 |
Operating lease liability | 12,553 | 12,499 |
Deferred rent payments | 64 | 68 |
Non-current lease liabilities | 173,907 | 183,602 |
Operating lease liability, less current portion | 173,971 | 183,670 |
Total lease liabilities | $ 186,524 | $ 196,169 |
Weighted average remaining lease term (in years) | 12 years 1 month 6 days | 12 years 8 months 12 days |
Weighted average discount rate | 7.60% | 7.60% |
Leases - Future Minimum Rent Payments (Details) $ in Thousands |
Sep. 24, 2023
USD ($)
|
---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remainder of 2023 | $ 6,502 |
2024 | 26,262 |
2025 | 26,378 |
2026 | 25,468 |
2027 | 23,419 |
Thereafter | 176,402 |
Total minimum lease payments | 284,431 |
Less: imputed interest | 97,907 |
Present value of lease liabilities | $ 186,524 |
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 24, 2023 |
Sep. 25, 2022 |
Sep. 24, 2023 |
Sep. 25, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Expected income tax expense | $ 1,742 | $ 1,209 | $ 6,297 | $ 4,300 |
State tax expense, net of federal benefit | 267 | 199 | 977 | 767 |
FICA tip credit | (860) | (727) | (3,191) | (3,099) |
Officers' compensation | 66 | 49 | 247 | 206 |
Stock compensation | (7) | 33 | (394) | (94) |
Other | 11 | 4 | 18 | 19 |
Income tax expense | $ 1,219 | $ 767 | $ 3,954 | $ 2,099 |
Income Taxes - Narrative (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 24, 2023
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Minimum | |
Income Tax Contingency [Line Items] | |
Loss contingency, estimate of possible loss | $ 0.5 |
Maximum | |
Income Tax Contingency [Line Items] | |
Loss contingency, estimate of possible loss | $ 2.5 |
Impairment, Closed Restaurant and Other Costs (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 24, 2023
USD ($)
numberOfClosedRestaurants
|
Sep. 25, 2022
USD ($)
numberOfClosedRestaurants
|
Sep. 24, 2023
USD ($)
numberOfClosedRestaurants
|
Sep. 25, 2022
USD ($)
numberOfClosedRestaurants
|
|
Impairment, Closed Restaurant and Other Costs [Abstract] | ||||
Property and equipment impairment | $ 51 | $ 673 | $ 98 | $ 673 |
Total impairment charge | 51 | 673 | 98 | 673 |
Closed restaurant costs | 596 | 796 | 1,402 | 2,832 |
Loss (gain) on lease termination | 370 | (279) | 370 | (302) |
Impairment, closed restaurant and other costs | $ 1,017 | $ 1,190 | $ 1,870 | $ 3,203 |
Number of terminated leases due to close restaurants | numberOfClosedRestaurants | 1 | 3 | 1 | 7 |
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