ý | 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 |
Delaware | 90-0712224 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
14800 Landmark Boulevard, Suite 500 Dallas, Texas | 75254 |
(Address of principal executive office) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
(Do not check if smaller reporting company) |
Page | ||
PART I FINANCIAL INFORMATION | ||
Item 1 | ||
Item 2 | ||
Item 3 | ||
Item 4 | ||
Item 1 | ||
Item 1A | ||
Item 2 | ||
Item 3 | ||
Item 4 | ||
Item 5 | ||
Item 6 |
October 2, 2016 | January 3, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash | $ | $ | |||||
Trade receivables | |||||||
Inventories | |||||||
Prepaid rent | |||||||
Income tax receivable | |||||||
Prepaid expenses and other current assets | |||||||
Total current assets | |||||||
Property and equipment, net | |||||||
Goodwill | |||||||
Deferred income taxes | |||||||
Deferred financing costs, net | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | $ | |||||
Accounts payable | |||||||
Accrued payroll, related taxes and benefits | |||||||
Accrued real estate taxes | |||||||
Other liabilities | |||||||
Total current liabilities | |||||||
Long-term debt, net of current portion | |||||||
Lease financing obligations | |||||||
Deferred income—sale-leaseback of real estate | |||||||
Other liabilities | |||||||
Total liabilities | |||||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Common stock, par value $.01; authorized 100,000,000 shares, issued 26,896,611 and 26,829,220 shares, respectively, and outstanding 26,746,012 and 26,571,602 shares, respectively. | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Total stockholders' equity | |||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||
Revenues: | October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | |||||||||||
Restaurant sales | $ | $ | $ | $ | |||||||||||
Franchise royalty revenues and fees | |||||||||||||||
Total revenues | |||||||||||||||
Costs and expenses: | |||||||||||||||
Cost of sales | |||||||||||||||
Restaurant wages and related expenses (including stock-based compensation expense of $35, $40, $111, and $147, respectively) | |||||||||||||||
Restaurant rent expense | |||||||||||||||
Other restaurant operating expenses | |||||||||||||||
Advertising expense | |||||||||||||||
General and administrative (including stock-based compensation expense of $330, $1,127, $2,523, and $3,056, respectively) | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Pre-opening costs | |||||||||||||||
Impairment and other lease charges | |||||||||||||||
Other income | ( | ) | ( | ) | ( | ) | |||||||||
Total operating expenses | |||||||||||||||
Income (loss) from operations | ( | ) | |||||||||||||
Interest expense | |||||||||||||||
Income (loss) before income taxes | ( | ) | |||||||||||||
Provision for (benefit from) income taxes | ( | ) | |||||||||||||
Net income (loss) | $ | ( | ) | $ | $ | $ | |||||||||
Basic net income (loss) per share | $ | ( | ) | $ | $ | $ | |||||||||
Diluted net income (loss) per share | $ | ( | ) | $ | $ | $ | |||||||||
Basic weighted average common shares outstanding | |||||||||||||||
Diluted weighted average common shares outstanding |
Number of | Additional | Total | |||||||||||||||||
Common | Common | Paid-In | Retained | Stockholders' | |||||||||||||||
Stock Shares | Stock | Capital | Earnings | Equity | |||||||||||||||
Balance at December 28, 2014 | $ | $ | $ | $ | |||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||
Vesting of restricted shares and related tax benefit | — | ||||||||||||||||||
Net income | — | — | — | ||||||||||||||||
Balance at September 27, 2015 | $ | $ | $ | $ | |||||||||||||||
Balance at January 3, 2016 | $ | $ | $ | $ | |||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||
Vesting of restricted shares and related tax deficiency | ( | ) | — | ( | ) | ||||||||||||||
Net income | — | — | — | ||||||||||||||||
Balance at October 2, 2016 | $ | $ | $ | $ |
Nine Months Ended | |||||||
October 2, 2016 | September 27, 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided from operating activities: | |||||||
Loss (gain) on disposals of property and equipment | ( | ) | |||||
Stock-based compensation | |||||||
Impairment and other lease charges | |||||||
Depreciation and amortization | |||||||
Amortization of deferred financing costs | |||||||
Amortization of deferred gains from sale-leaseback transactions | ( | ) | ( | ) | |||
Deferred income taxes | ( | ) | |||||
Changes in other operating assets and liabilities | |||||||
Net cash provided from operating activities | |||||||
Cash flows from investing activities: | |||||||
Capital expenditures: | |||||||
New restaurant development | ( | ) | ( | ) | |||
Restaurant remodeling | ( | ) | ( | ) | |||
Other restaurant capital expenditures | ( | ) | ( | ) | |||
Corporate and restaurant information systems | ( | ) | ( | ) | |||
Total capital expenditures | ( | ) | ( | ) | |||
Properties purchased for sale-leaseback | ( | ) | |||||
Proceeds from sale-leaseback transactions | |||||||
Proceeds from disposals of other properties | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Excess tax benefit from vesting of restricted shares | |||||||
Borrowings on revolving credit facility | |||||||
Repayments on revolving credit facility | ( | ) | ( | ) | |||
Principal payments on capital leases | ( | ) | ( | ) | |||
Net cash (used in) provided by financing activities | ( | ) | |||||
Net decrease in cash | ( | ) | ( | ) | |||
Cash, beginning of period | |||||||
Cash, end of period | $ | $ | |||||
Supplemental disclosures: | |||||||
Interest paid on long-term debt | $ | $ | |||||
Interest paid on lease financing obligations | $ | $ | |||||
Accruals for capital expenditures | $ | $ | |||||
Income tax payments, net | $ | $ |
• | Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. |
• |
October 2, 2016 | January 3, 2016 | ||||||
Accrued workers' compensation and general liability claims | $ | $ | |||||
Sales and property taxes | |||||||
Accrued occupancy costs | |||||||
Other | |||||||
$ | $ |
October 2, 2016 | January 3, 2016 | ||||||
Accrued occupancy costs | $ | $ | |||||
Deferred compensation | |||||||
Accrued workers' compensation and general liability claims | |||||||
Other | |||||||
$ | $ |
Nine Months Ended October 2, 2016 | Year Ended January 3, 2016 | ||||||
Balance, beginning of period | $ | $ | |||||
Provisions for restaurant closures | |||||||
Additional lease charges, net of (recoveries) | |||||||
Payments, net | ( | ) | ( | ) | |||
Other adjustments | |||||||
Balance, end of period | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||||||
Pollo Tropical | $ | $ | $ | $ | |||||||||||
Taco Cabana | |||||||||||||||
$ | $ | $ | $ |
Non-Vested Shares | Restricted Stock Units | ||||||||||||
Weighted | Weighted | ||||||||||||
Average | Average | ||||||||||||
Grant Date | Grant Date | ||||||||||||
Shares | Price | Units | Price | ||||||||||
Outstanding at January 3, 2016 | $ | $ | |||||||||||
Granted | |||||||||||||
Vested/Released | ( | ) | ( | ) | |||||||||
Forfeited | ( | ) | ( | ) | |||||||||
Outstanding at October 2, 2016 | $ | $ |
Three Months Ended | Pollo Tropical | Taco Cabana | Other | Consolidated | ||||||||||||
October 2, 2016: | ||||||||||||||||
Restaurant sales | $ | $ | $ | $ | ||||||||||||
Franchise revenue | ||||||||||||||||
Cost of sales | ||||||||||||||||
Restaurant wages and related expenses (1) | ||||||||||||||||
Restaurant rent expense | ||||||||||||||||
Other restaurant operating expenses | ||||||||||||||||
Advertising expense | ||||||||||||||||
General and administrative expense (2) | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||
Pre-opening costs | ||||||||||||||||
Impairment and other lease charges | ||||||||||||||||
Interest expense | ||||||||||||||||
Income (loss) before taxes | ( | ) | ( | ) | ( | ) | ||||||||||
Capital expenditures | ( | ) | ||||||||||||||
September 27, 2015: | ||||||||||||||||
Restaurant sales | $ | $ | $ | $ | ||||||||||||
Franchise revenue | ||||||||||||||||
Cost of sales | ||||||||||||||||
Restaurant wages and related expenses (1) | ||||||||||||||||
Restaurant rent expense | ||||||||||||||||
Other restaurant operating expenses | ||||||||||||||||
Advertising expense | ||||||||||||||||
General and administrative expense (2) | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||
Pre-opening costs | ||||||||||||||||
Impairment and other lease charges | ||||||||||||||||
Interest expense | ||||||||||||||||
Income before taxes | ||||||||||||||||
Capital expenditures | ( | ) |
Nine Months Ended | Pollo Tropical | Taco Cabana | Other | Consolidated | ||||||||||||
October 2, 2016: | ||||||||||||||||
Restaurant sales | $ | $ | $ | $ | ||||||||||||
Franchise revenue | ||||||||||||||||
Cost of sales | ||||||||||||||||
Restaurant wages and related expenses (1) | ||||||||||||||||
Restaurant rent expense | ||||||||||||||||
Other restaurant operating expenses | ||||||||||||||||
Advertising expense | ||||||||||||||||
General and administrative expense (2) | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||
Pre-opening costs | ||||||||||||||||
Impairment and other lease charges | ||||||||||||||||
Interest expense | ||||||||||||||||
Income (loss) before taxes | ( | ) | ||||||||||||||
Capital expenditures | ||||||||||||||||
September 27, 2015: | ||||||||||||||||
Restaurant sales | $ | $ | $ | $ | ||||||||||||
Franchise revenue | ||||||||||||||||
Cost of sales | ||||||||||||||||
Restaurant wages and related expenses (1) | ||||||||||||||||
Restaurant rent expense | ||||||||||||||||
Other restaurant operating expenses | ||||||||||||||||
Advertising expense | ||||||||||||||||
General and administrative expense (2) | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||
Pre-opening costs | ||||||||||||||||
Impairment and other lease charges | ||||||||||||||||
Interest expense | ||||||||||||||||
Income before taxes | ||||||||||||||||
Capital expenditures | ||||||||||||||||
Identifiable Assets: | ||||||||||||||||
October 2, 2016: | ||||||||||||||||
January 3, 2016 |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | |||||||||||||
Basic and diluted net income per share: | ||||||||||||||||
Net income (loss) | $ | ( | ) | $ | $ | $ | ||||||||||
Less: income allocated to participating securities | ( | ) | ( | ) | ( | ) | ||||||||||
Net income (loss) available to common stockholders | $ | ( | ) | $ | $ | $ | ||||||||||
Weighted average common shares, basic | ||||||||||||||||
Restricted stock units | ||||||||||||||||
Weighted average common shares, diluted | ||||||||||||||||
Basic net income (loss) per common share | $ | ( | ) | $ | $ | $ | ||||||||||
Diluted net income (loss) per common share | $ | ( | ) | $ | $ | $ |
• | Net income (loss) decreased $12.5 million to $(4.5) million in the third quarter of 2016, or $( |
• | Total revenues increased 5.9% in the third quarter of 2016 to $182.3 million compared to $172.1 million in the third quarter of 2015, driven primarily by an increase in the number of company-owned restaurants, partially offset by a decrease in comparable restaurant sales. Comparable restaurant sales decreased 4.1% for our Taco Cabana restaurants resulting primarily from a decrease in comparable guest traffic of 3.5% and a decrease in average check of 0.6%. Comparable restaurant sales decreased 1.0% for our Pollo Tropical restaurants resulting primarily from a decrease in comparable guest traffic of 2.5% partially offset by an increase in average check of 1.5%. |
• | During the third quarter of 2016, we opened nine company-owned Pollo Tropical restaurants. During the third quarter of 2015, we opened 14 company-owned Pollo Tropical restaurants and one Taco Cabana restaurant and permanently closed one company-owned Pollo Tropical restaurant and one company-owned Taco Cabana restaurant. |
• | Adjusted EBITDA decreased $0.3 million in the third quarter of 2016 to $21.7 million compared to $22.0 million in the third quarter of 2015. Revenue growth in the third quarter of 2016 was offset by lower profitability as a result of new restaurant performance, lower comparable restaurant sales, higher operating expenses and the write-off of site costs related to locations that we decided not to develop. Adjusted EBITDA is a non-GAAP financial measure of performance. For a discussion of our use of Adjusted EBITDA and a reconciliation from net income to Adjusted EBITDA, see "Management's Use of Non-GAAP Financial Measures". |
Pollo Tropical | Taco Cabana | ||||||||||||||||
Owned | Franchised | Total | Owned | Franchised | Total | ||||||||||||
January 3, 2016 | 155 | 35 | 190 | 162 | 6 | 168 | |||||||||||
New | 6 | 1 | 7 | — | — | — | |||||||||||
Closed | — | — | — | — | — | ||||||||||||
April 3, 2016 | 161 | 36 | 197 | 162 | 6 | 168 | |||||||||||
New | 11 | 2 | 13 | 2 | 1 | 3 | |||||||||||
Closed | — | (1 | ) | (1 | ) | — | — | — | |||||||||
July 3, 2016 | 172 | 37 | 209 | 164 | 7 | 171 | |||||||||||
New | 9 | — | 9 | — | — | — | |||||||||||
Closed | — | (3 | ) | (3 | ) | — | — | — | |||||||||
October 2, 2016 | 181 | 34 | 215 | 164 | 7 | 171 | |||||||||||
December 28, 2014 | 124 | 37 | 161 | 167 | 7 | 174 | |||||||||||
New | 6 | — | 6 | — | — | — | |||||||||||
Closed | — | — | — | (3 | ) | — | (3 | ) | |||||||||
March 29, 2015 | 130 | 37 | 167 | 164 | 7 | 171 | |||||||||||
New | 6 | — | 6 | 1 | — | 1 | |||||||||||
Closed | — | (2 | ) | (2 | ) | (2 | ) | (1 | ) | (3 | ) | ||||||
June 28, 2015 | 136 | 35 | 171 | 163 | 6 | 169 | |||||||||||
New | 14 | — | 14 | 1 | — | 1 | |||||||||||
Closed | (1 | ) | — | (1 | ) | (1 | ) | — | (1 | ) | |||||||
September 27, 2015 | 149 | 35 | 184 | 163 | 6 | 169 |
Three Months Ended | |||||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||||||
Pollo Tropical | Taco Cabana | Consolidated | |||||||||||||||
Restaurant sales: | |||||||||||||||||
Pollo Tropical | 56.9 | % | 53.3 | % | |||||||||||||
Taco Cabana | 43.1 | % | 46.7 | % | |||||||||||||
Consolidated restaurant sales | 100.0 | % | 100.0 | % | |||||||||||||
Costs and expenses: | |||||||||||||||||
Cost of sales | 31.5 | % | 34.0 | % | 28.3 | % | 30.4 | % | 30.1 | % | 32.3 | % | |||||
Restaurant wages and related expenses | 23.6 | % | 22.9 | % | 29.6 | % | 29.0 | % | 26.2 | % | 25.8 | % | |||||
Restaurant rent expense | 4.9 | % | 4.5 | % | 5.7 | % | 5.3 | % | 5.2 | % | 4.9 | % | |||||
Other restaurant operating expenses | 13.9 | % | 12.8 | % | 14.5 | % | 13.5 | % | 14.2 | % | 13.1 | % | |||||
Advertising expense | 4.9 | % | 2.7 | % | 3.2 | % | 3.0 | % | 4.1 | % | 2.8 | % | |||||
Pre-opening costs | 1.4 | % | 1.7 | % | 0.1 | % | 0.1 | % | 0.8 | % | 1.0 | % |
Pollo Tropical: | |||
Decrease in comparable restaurant sales | $ | (0.8 | ) |
Incremental sales related to new restaurants, net of closed restaurants | 12.7 | ||
Total increase | $ | 11.9 | |
Taco Cabana: | |||
Decrease in comparable restaurant sales | $ | (3.2 | ) |
Incremental sales related to new restaurants, net of closed restaurants | 1.4 | ||
Total decrease | $ | (1.8 | ) |
Pollo Tropical: | ||
Cost of sales: | ||
Lower commodity costs | (1.2 | )% |
Sales mix | (0.8 | )% |
Menu price increases | (0.7 | )% |
Operating inefficiencies | 0.4 | % |
Other | (0.2 | )% |
Net decrease in cost of sales as a percentage of restaurant sales | (2.5 | )% |
Restaurant wages and related expenses: | ||
Higher labor costs and impact of lower sales volumes for comparable restaurants | 0.5 | % |
Higher labor costs and impact of lower sales volumes for new restaurants | 0.9 | % |
Higher workers compensation costs | 0.3 | % |
Lower incentive bonus costs | (0.4 | )% |
Lower medical benefit costs | (0.7 | )% |
Other | 0.1 | % |
Net increase in restaurant wages and related costs as a percentage of restaurant sales | 0.7 | % |
Other operating expenses (1): | ||
Higher repairs and maintenance costs | 0.3 | % |
Higher credit card expenses | 0.2 | % |
Higher real estate taxes generally related to new restaurants | 0.4 | % |
Other | 0.2 | % |
Net increase in other restaurant operating expenses as a percentage of restaurant sales | 1.1 | % |
Advertising expense: | ||
Increase in advertising | 2.2 | % |
Net increase in advertising expense as a percentage of restaurant sales | 2.2 | % |
Pre-opening costs: | ||
Timing of restaurant openings | (0.3 | )% |
Net decrease in pre-opening costs as a percentage of restaurant sales | (0.3 | )% |
Taco Cabana: | ||
Cost of sales: | ||
Lower commodity costs | (2.1 | )% |
Menu price increases | (0.4 | )% |
Lower operating inefficiencies | (0.2 | )% |
Higher promotions and discounts | 0.5 | % |
Sales mix | 0.4 | % |
Other | (0.3 | )% |
Net decrease in cost of sales as a percentage of restaurant sales | (2.1 | )% |
Restaurant wages and related expenses: | ||
Impact of lower sales volumes and higher labor costs for comparable restaurants | 1.5 | % |
Impact of closing lower sales volume restaurants, net of new restaurants | (0.1 | )% |
Lower workers compensation costs | (0.4 | )% |
Lower incentive bonus costs | (0.3 | )% |
Other | (0.1 | )% |
Net increase in restaurant wages and related costs as a percentage of restaurant sales | 0.6 | % |
Other operating expenses: | ||
Higher repairs and maintenance costs | 0.2 | % |
Higher insurance costs | 0.4 | % |
Other | 0.4 | % |
Net increase in other restaurant operating expenses as a percentage of restaurant sales | 1.0 | % |
Advertising expense: | ||
Increase in advertising | 0.2 | % |
Net increase in advertising expense as a percentage of restaurant sales | 0.2 | % |
Pre-opening costs: | ||
Net change in pre-opening costs as a percentage of restaurant sales | — | % |
Nine Months Ended | |||||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||||||
Pollo Tropical | Taco Cabana | Consolidated | |||||||||||||||
Restaurant sales: | |||||||||||||||||
Pollo Tropical | 56.5 | % | 53.0 | % | |||||||||||||
Taco Cabana | 43.5 | % | 47.0 | % | |||||||||||||
Consolidated restaurant sales | 100.0 | % | 100.0 | % | |||||||||||||
Costs and expenses: | |||||||||||||||||
Cost of sales | 31.7 | % | 33.5 | % | 28.6 | % | 29.9 | % | 30.3 | % | 31.8 | % | |||||
Restaurant wages and related expenses | 23.4 | % | 22.0 | % | 29.1 | % | 28.7 | % | 25.9 | % | 25.1 | % | |||||
Restaurant rent expense | 4.8 | % | 4.3 | % | 5.5 | % | 5.4 | % | 5.1 | % | 4.8 | % | |||||
Other restaurant operating expenses | 13.4 | % | 12.2 | % | 13.5 | % | 13.0 | % | 13.4 | % | 12.6 | % | |||||
Advertising expense | 4.1 | % | 2.5 | % | 3.9 | % | 3.7 | % | 4.0 | % | 3.1 | % | |||||
Pre-opening costs | 1.4 | % | 1.3 | % | 0.1 | % | 0.1 | % | 0.9 | % | 0.8 | % |
Pollo Tropical: | |||
Decrease in comparable restaurant sales | $ | (2.0 | ) |
Incremental sales related to new restaurants, net of closed restaurants | 38.2 | ||
Total increase | $ | 36.2 | |
Taco Cabana: | |||
Decrease in comparable restaurant sales | $ | (5.0 | ) |
Incremental sales related to new restaurants, net of closed restaurants | 1.3 | ||
Total decrease | $ | (3.7 | ) |
Pollo Tropical: | ||
Cost of sales: | ||
Lower commodity costs | (1.1 | )% |
Sales mix | (1.0 | )% |
Menu price increases | (0.4 | )% |
Operating inefficiencies | 0.6 | % |
Other | 0.1 | % |
Net decrease in cost of sales as a percentage of restaurant sales | (1.8 | )% |
Restaurant wages and related expenses: | ||
Higher labor costs and impact of lower sales volumes for comparable restaurants | 0.5 | % |
Higher labor costs and impact of lower sales volumes for new restaurants(1) | 0.9 | % |
Higher workers compensation costs | 0.2 | % |
Lower incentive bonus costs | (0.2 | )% |
Net increase in restaurant wages and related costs as a percentage of restaurant sales | 1.4 | % |
Other operating expenses(2): | ||
Higher repairs and maintenance costs | 0.5 | % |
Higher real estate taxes generally related to new restaurants | 0.4 | % |
Other | 0.3 | % |
Net increase in other restaurant operating expenses as a percentage of restaurant sales | 1.2 | % |
Advertising expense: | ||
Increase in advertising | 1.6 | % |
Net increase in advertising expense as a percentage of restaurant sales | 1.6 | % |
Pre-opening costs: | ||
Timing of restaurant openings | 0.1 | % |
Net increase in pre-opening costs as a percentage of restaurant sales | 0.1 | % |
Taco Cabana: | ||
Cost of sales: | ||
Lower commodity costs | (1.1 | )% |
Menu price increases | (0.6 | )% |
Menu board changes | 0.3 | % |
Operating inefficiencies | 0.2 | % |
Other | (0.1 | )% |
Net decrease in cost of sales as a percentage of restaurant sales | (1.3 | )% |
Restaurant wages and related expenses: | ||
Higher labor costs and impact of lower sales volumes for comparable restaurants | 1.1 | % |
Impact of closing lower sales volume restaurants, net of new restaurants | (0.2 | )% |
Lower medical benefit costs | (0.3 | )% |
Other | (0.2 | )% |
Net increase in restaurant wages and related costs as a percentage of restaurant sales | 0.4 | % |
Other operating expenses: | ||
Higher repairs and maintenance costs | 0.3 | % |
Higher insurance costs | 0.2 | % |
Lower utilities | (0.2 | )% |
Other | 0.2 | % |
Net increase in other restaurant operating expenses as a percentage of restaurant sales | 0.5 | % |
Advertising expense: | ||
Increase in advertising | 0.2 | % |
Net increase in advertising expense as a percentage of restaurant sales | 0.2 | % |
Pre-opening costs: | ||
Net change in pre-opening costs as a percentage of restaurant sales | — | % |
• | restaurant operations are primarily conducted on a cash basis; |
• | rapid turnover results in a limited investment in inventories; and |
• | cash from sales is usually received before related liabilities for food, supplies and payroll become due. |
Pollo Tropical | Taco Cabana | Other | Consolidated | ||||||||||||
Nine Months Ended October 2, 2016: | |||||||||||||||
New restaurant development | $ | 48,857 | $ | 3,971 | $ | — | $ | 52,828 | |||||||
Restaurant remodeling | 956 | — | — | 956 | |||||||||||
Other restaurant capital expenditures(1) | 1,508 | 3,117 | — | 4,625 | |||||||||||
Corporate and restaurant information systems | 1,392 | 970 | 2,272 | 4,634 | |||||||||||
Total capital expenditures | $ | 52,713 | $ | 8,058 | $ | 2,272 | $ | 63,043 | |||||||
Number of new restaurant openings | 26 | 2 | 28 | ||||||||||||
Nine Months Ended September 27, 2015: | |||||||||||||||
New restaurant development | $ | 51,175 | $ | 3,882 | $ | — | $ | 55,057 | |||||||
Restaurant remodeling | 826 | 1,897 | — | 2,723 | |||||||||||
Other restaurant capital expenditures(1) | 2,078 | 3,119 | — | 5,197 | |||||||||||
Corporate and restaurant information systems | 1,025 | 607 | 1,610 | 3,242 | |||||||||||
Total capital expenditures | $ | 55,104 | $ | 9,505 | $ | 1,610 | $ | 66,219 | |||||||
Number of new restaurant openings | 26 | 2 | 28 |
• | such financial information does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments to purchase capital equipment; |
• | such financial information does not reflect interest expense or the cash requirements necessary to service payments on our debt; |
• | although depreciation and amortization are non-cash charges, the assets that we currently depreciate and amortize will likely have to be replaced in the future, and such financial information does not reflect the cash required to fund such replacements; and |
• | such financial information does not reflect the effect of earnings or charges resulting from matters that our management does not consider to be indicative of our ongoing operations. However, some of these charges (such as impairment and other lease charges, other income and expense and stock-based compensation expense) have recurred and may recur. |
Three Months Ended | Nine Months Ended | ||||||||||||||
(Dollars in thousands) | October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | |||||||||||
Net income (loss) | $ | (4,531 | ) | $ | 7,945 | $ | 14,280 | $ | 29,695 | ||||||
Add: | |||||||||||||||
Depreciation and amortization | 9,513 | 7,596 | 26,474 | 21,844 | |||||||||||
Impairment and other lease charges | 18,513 | 387 | 18,607 | 481 | |||||||||||
Interest expense | 542 | 493 | 1,635 | 1,345 | |||||||||||
Provision for (benefit from) income taxes | (2,748 | ) | 4,571 | 8,065 | 18,073 | ||||||||||
Stock-based compensation expense | 365 | 1,167 | 2,634 | 3,203 | |||||||||||
Other income | — | (165 | ) | (238 | ) | (679 | ) | ||||||||
Adjusted EBITDA: | |||||||||||||||
Pollo Tropical | $ | 12,087 | $ | 12,120 | $ | 41,828 | $ | 43,993 | |||||||
Taco Cabana | 9,641 | 9,874 | 30,451 | 29,969 | |||||||||||
Fiesta | (74 | ) | — | (822 | ) | — | |||||||||
Consolidated | $ | 21,654 | $ | 21,994 | $ | 71,457 | $ | 73,962 |
• | Increases in food and other commodity costs; |
• | Risks associated with the expansion of our business, including increasing real estate and construction costs; |
• | Risks associated with food borne illness or other food safety issues, including negative publicity through traditional |
• | Our ability to manage our growth and successfully implement our business strategy; |
• | Labor and employment benefit costs, including the impact of increases in federal and state minimum wages, increases in exempt status salary levels and healthcare costs imposed by the Affordable Care Act; |
• | Cyber security breaches; |
• | General economic conditions, particularly in the retail sector; |
• | Competitive conditions; |
• | Weather conditions; |
• | Significant disruptions in service or supply by any of our suppliers or distributors; |
• | Increases in employee injury and general liability claims; |
• | Changes in consumer perception of dietary health and food safety; |
• | Regulatory factors; |
• | Fuel prices; |
• | The outcome of pending or future legal claims or proceedings; |
• | Environmental conditions and regulations; |
• | Our borrowing costs; |
• | The availability and terms of necessary or desirable financing or refinancing and other related risks and uncertainties; |
• | The risk of an act of terrorism or escalation of any insurrection or armed conflict involving the United States or any other national or international calamity; and |
• | Factors that affect the restaurant industry generally, including product recalls, liability if our products cause injury, ingredient disclosure and labeling laws and regulations. |
Exhibit No. | ||
10.1 | Agreement dated as of November 4, 2016 between Fiesta Restaurant Group, Inc. and Danny K. Meisenheimer.+ | |
10.2 | Agreement dated as of November 4, 2016 between Fiesta Restaurant Group, Inc. and Lynn Schweinfurth.+ | |
10.3 | Agreement dated as of November 4, 2016 between Fiesta Restaurant Group, Inc. and Joseph A. Zirkman.+ | |
10.4 | Agreement dated as of September 27, 2016 between Fiesta Restaurant Group, Inc. and Timothy P. Taft.+ | |
31.1 | Chief Executive Officer’s Certificate Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Fiesta Restaurant Group, Inc. | |
31.2 | Chief Financial Officer’s Certificate Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Fiesta Restaurant Group, Inc. | |
32.1 | Chief Executive Officer’s Certificate Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Fiesta Restaurant Group, Inc. | |
32.2 | Chief Financial Officer’s Certificate Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Fiesta Restaurant Group, Inc. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
+ Compensatory plan or arrangement |
FIESTA RESTAURANT GROUP, INC. | |
Date: November 7, 2016 | /S/ DANNY K. MEISENHEIMER |
(Signature) | |
Danny K. Meisenheimer Interim Chief Executive Officer | |
Date: November 7, 2016 | /S/ LYNN S. SCHWEINFURTH |
(Signature) | |
Lynn S. Schweinfurth Senior Vice President, Chief Financial Officer and Treasurer | |
Date: November 7, 2016 | /S/ CHERI L. KINDER |
(Signature) | |
Cheri L. Kinder Vice President, Corporate Controller |
FIESTA RESTAURANT GROUP, INC. | ||
By: | /S/ JOSEPH ZIRKMAN | |
Name: Joseph Zirkman Senior Vice President | ||
/S/ DANNY K. MEISENHEIMER | ||
Danny K. Meisenheimer |
EXECUTIVE | |
Danny K. Meisenheimer |
FIESTA RESTAURANT GROUP, INC. | ||
By: | /S/ DANNY K. MEISENHEIMER | |
Name: Danny Meisenheimer Interim Chief Executive Officer | ||
/S/ LYNN S. SCHWEINFURTH | ||
Lynn Schweinfurth |
EXECUTIVE | |
Lynn Schweinfurth |
FIESTA RESTAURANT GROUP, INC. | ||
By: | /S/ DANNY K. MEISENHEIMER | |
Name: Danny Meisenheimer Interim Chief Executive Officer | ||
/S/ JOSEPH ZIRKMAN | ||
Joseph A. Zirkman |
EXECUTIVE | |
Joseph Zirkman |
If to the Company: | ||
14800 Landmark Blvd. Suite 500 Dallas, Texas 75254 Attn: General Counsel | ||
with copy sent to the attention of the Chairman of the Board of Directors at the same address | ||
If to the Executive: | ||
FIESTA RESTAURANT GROUP, INC. | ||
By: | /S/ JOSEPH ZIRKMAN | |
Name: Joseph Zirkman Sr. Vice President | ||
/S/ TIMOTHY P. TAFT | ||
Timothy P. Taft | ||
Vest date | share due to vest | percentage to vest | shares to vest | forfeited shares | |||
3/2/2017 | 3,369 | 10/12th's | 2,808 | 561 | |||
2/14/2017 | 14,835 | 11/12th's | 13,599 | 1,236 | |||
2/19/2017 | 4,163 | 11/12th's | 3,817 | 346 | |||
2/27/2017 | 1,827 | 11/12th's | 1,675 | 152 | |||
24,194 | 21,898 | 2,296 |
Date: November 7, 2016 | /s/ DANNY K. MEISENHEIMER |
Danny K. Meisenheimer | |
Interim Chief Executive Officer |
Date: November 7, 2016 | /s/ LYNN SCHWEINFURTH |
Lynn Schweinfurth | |
Senior Vice President, Chief Financial Officer and Treasurer |
/s/ DANNY K. MEISENHEIMER |
Danny K. Meisenheimer |
Interim Chief Executive Officer |
/s/ LYNN SCHWEINFURTH |
Lynn Schweinfurth |
Senior Vice President, Chief Financial Officer and Treasurer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Oct. 02, 2016 |
Nov. 03, 2016 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | FIESTA RESTAURANT GROUP, INC. | |
Entity Central Index Key | 0001534992 | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Oct. 02, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,889,637 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Oct. 02, 2016 |
Jan. 03, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 26,896,611 | 26,829,220 |
Common stock, shares outstanding | 26,746,012 | 26,571,602 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
|
Stock-based compensation | $ 400 | $ 1,200 | $ 2,600 | $ 3,200 |
Restaurant Wages And Related Expenses [Member] | ||||
Stock-based compensation | 35 | 40 | 111 | 147 |
General and Administrative Expense [Member] | ||||
Stock-based compensation | $ 330 | $ 1,127 | $ 2,523 | $ 3,056 |
Basis of Presentation |
9 Months Ended | ||||||||
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Oct. 02, 2016 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Basis of Presentation | Basis of Presentation Business Description. Fiesta Restaurant Group, Inc. ("Fiesta Restaurant Group" or "Fiesta") owns, operates and franchises two fast-casual restaurant brands through its wholly-owned subsidiaries Pollo Operations, Inc. and its subsidiaries, Pollo Franchise, Inc. (collectively “Pollo Tropical”) and Taco Cabana, Inc. and its subsidiaries (collectively “Taco Cabana”). Unless the context otherwise requires, Fiesta and its subsidiaries, Pollo Tropical and Taco Cabana, are collectively referred to as the “Company”. At October 2, 2016, the Company owned and operated 181 Pollo Tropical® restaurants and 164 Taco Cabana® restaurants. The Pollo Tropical restaurants include 124 located in Florida, 36 located in Texas, 17 located in Georgia and four located in Tennessee. The Taco Cabana restaurants include 163 located in Texas and one located in Oklahoma. At October 2, 2016, the Company franchised a total of 34 Pollo Tropical restaurants and seven Taco Cabana restaurants. The franchised Pollo Tropical restaurants include 17 in Puerto Rico, one in the Bahamas, three in Trinidad & Tobago, one in Venezuela, four in Panama, two in Guatemala, and six on college campuses and at a hospital in Florida. The franchised Taco Cabana restaurants include five in New Mexico and two on college campuses in Texas. Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. Fiscal Year. The Company uses a 52-53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended January 3, 2016 contained 53 weeks. The three and nine months ended October 2, 2016 and September 27, 2015 each contained thirteen and thirty-nine weeks, respectively. The fiscal year ending January 1, 2017 will contain 52 weeks. Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and nine months ended October 2, 2016 and September 27, 2015 have been prepared without an audit pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three and nine months ended October 2, 2016 and September 27, 2015 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended January 3, 2016 included in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2016. The January 3, 2016 balance sheet data is derived from those audited financial statements. 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 at the measurement date under current market conditions. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value:
Long-Lived Assets. The Company assesses the recoverability of property and equipment and definite-lived intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining lives through undiscounted future operating cash flows. Impairment is reviewed when events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Use of Estimates. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill and long-lived assets and lease accounting matters. Actual results could differ from those estimates.
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Other Liabilities |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | Other Liabilities Other liabilities, current, consist of the following:
Other liabilities, long-term, consist of the following:
Accrued occupancy costs include obligations pertaining to closed restaurant locations and accruals to expense operating lease rental payments on a straight-line basis over the lease term. The following table presents the activity in the closed-store reserve, of which $1.0 million and $1.1 million are included in long-term accrued occupancy costs at October 2, 2016 and January 3, 2016, respectively, with the remainder in other current liabilities.
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Impairment of Long-Lived Assets and Other Lease Charges |
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Asset Impairment Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets and Other Lease Charges | Impairment of Long-Lived Assets and Other Lease Charges The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. In addition to considering management’s plans, known regulatory or governmental actions and damage due to acts of God (hurricanes, tornadoes, etc.), the Company considers a triggering event to have occurred related to a specific restaurant if the restaurant’s cash flows for the last twelve months are less than a minimum threshold or if consistent levels of cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. If an indicator of impairment exists for any of its assets, an estimate of undiscounted future cash flows 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. A summary of impairment on long-lived assets and other lease charges recorded by segment is as follows:
In the third quarter of 2016, as part of a review of its strategic plan to enhance long-term shareholder value, the Company reviewed its restaurant portfolio and subsequently closed ten Pollo Tropical restaurants in the fourth quarter of 2016 including eight restaurants in Texas, one restaurant in Nashville, Tennessee, and one restaurant in Atlanta, Georgia. The Company plans to convert up to three of the closed restaurants in Texas to Taco Cabana restaurants. Impairment and other lease charges for the three and nine months ended October 2, 2016 primarily consisted of impairment charges of $18.5 million related to the closed restaurants and six additional Pollo Tropical restaurants and one Taco Cabana restaurant that the Company continues to operate. Impairment and other lease charges for the nine months ended October 2, 2016 also included other lease charges of $0.1 million related to previously closed Pollo Tropical and Taco Cabana restaurants. The Company will recognize lease and other charges related to the closed restaurants in the fourth quarter of 2016. The Company determined the fair value of restaurant equipment, for those restaurants reviewed for impairment, based on current economic conditions, the Company’s history of using these assets in the operation of its business, the Company's plans to use this equipment in new restaurants that are scheduled to open in 2017 and 2018, and the Company's expectation of how a market participant would value the equipment. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. The Level 3 assets measured at fair value associated with impairment charges recorded during the three and nine months ended October 2, 2016 totaled $8.6 million. Impairment and other lease charges for the three and nine months ended September 27, 2015, consisted primarily of a $0.3 million lease charge related to the closure of a Pollo Tropical restaurant that was relocated to a superior site in the same trade area prior to the end of its lease term and lease charges, net of recoveries, totaling $0.1 million related to previously closed Pollo Tropical restaurants and for the nine months ended September 27, 2015 also included impairment charges totaling $0.1 million related to the suspension of the Company's Cabana Grill concept. The Cabana Grill concept was an elevated, non-24-hour format for Taco Cabana that the Company tested outside of Texas. One of the Cabana Grill restaurants was converted to a Pollo Tropical restaurant, and the second was closed.
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Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation During the nine months ended October 2, 2016 and September 27, 2015, the Company granted certain employees 50,087 and 24,401 non-vested restricted shares, respectively, under the Fiesta Restaurant Group, Inc. 2012 Stock Incentive Plan (the "Fiesta Plan"). These shares generally vest and become non-forfeitable over a four year vesting period. The weighted average fair value at grant date for these non-vested shares issued to employees during the nine months ended October 2, 2016 and September 27, 2015 was $35.25 and $61.57, respectively. During the nine months ended October 2, 2016 and September 27, 2015, the Company granted certain employees 5,762 and 10,007 restricted stock units, respectively, under the Fiesta Plan. The restricted stock units granted during the nine months ended October 2, 2016 vest and become non-forfeitable at the end of a four year vesting period. The restricted stock units granted during the nine months ended September 27, 2015 vest and become non-forfeitable over a four year vesting period or, for certain units, at the end of a four year vesting period. The weighted average fair value at grant date for these restricted stock units issued to employees during the nine months ended October 2, 2016 and September 27, 2015 was $35.25 and $62.05, respectively. Also during the nine months ended October 2, 2016 and September 27, 2015, the Company granted 33,691 and 17,501 non-vested restricted shares, respectively, and 33,691 and 17,501 restricted stock units, respectively, under the Fiesta Plan to certain employees subject to performance conditions. The non-vested restricted shares vest and become non-forfeitable over a four year vesting period subject to the attainment of performance conditions. The restricted stock units vest and become non-forfeitable at the end of a three year vesting period. The number of shares into which the restricted stock units convert is based on the attainment of certain performance conditions and for the restricted stock units granted during the nine months ended October 2, 2016 and September 27, 2015, ranges from no shares, if the minimum performance condition is not met, to 67,382 and 35,002 shares, respectively, if the maximum performance condition is met. The weighted average fair value at grant date for both restricted non- vested shares and restricted stock units subject to performance conditions granted during the nine months ended October 2, 2016 and September 27, 2015 was $35.25 and $65.01, respectively. During the nine months ended October 2, 2016 and September 27, 2015, the Company granted 14,081 and 8,698 non-vested restricted shares, respectively, to non-employee directors. The weighted average fair value at the grant date for restricted non-vested shares issued to directors during the nine months ended October 2, 2016 and September 27, 2015, was $33.39 and $54.06, respectively. These shares vest and become non-forfeitable over a one-year vesting period. Stock-based compensation expense for the three and nine months ended October 2, 2016 was $0.4 million and $2.6 million, respectively, and for the three and nine months ended September 27, 2015 was $1.2 million and $3.2 million, respectively. At October 2, 2016, the total unrecognized stock-based compensation expense related to non-vested restricted shares and restricted stock units was approximately $4.5 million. At October 2, 2016, the remaining weighted average vesting period for non-vested restricted shares was 1.9 years and 2.0 years for restricted stock units. During the three and nine months ended October 2, 2016, a portion of the awards previously granted to the Company's Chief Executive Officer were modified and vested in connection with his retirement. The modification reduced stock compensation expense by $0.1 million. A summary of all non-vested restricted shares and restricted stock units activity for the nine months ended October 2, 2016 is as follows:
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Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Business Segment Information The Company is engaged in the fast-casual restaurant industry, with two restaurant concepts (each of which is an operating segment): Pollo Tropical and Taco Cabana. Pollo Tropical restaurants offer a wide variety of freshly prepared Caribbean-inspired food while our Taco Cabana restaurants offer a broad selection of hand-made, freshly prepared and authentic Mexican food. Each segment's accounting policies are the same as those discussed in the summary of significant accounting policies in Note 1 to the Company's audited financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2016. The Company reports more than one measure of segment profit or loss to the chief operating decision maker for the purposes of allocating resources to the segments and assessing their performance. The primary measures of segment profit or loss used to assess performance and allocate resources are income (loss) before taxes and Adjusted EBITDA, which is defined as earnings attributable to the applicable operating segment before interest, income taxes, depreciation and amortization, impairment and other lease charges, stock-based compensation expense and other income and expense. Although the chief operating decision maker uses Adjusted EBITDA as a measure of segment profitability, in accordance with Accounting Standards Codification 280, Segment Reporting, the following table includes segment income (loss) before taxes, which is the measure of segment profit or loss determined in accordance with the measurement principles that are most consistent with the principles used in measuring the corresponding amounts in the consolidated financial statements. The “Other” column includes corporate-related items not allocated to reportable segments and consists primarily of corporate-owned property and equipment, miscellaneous prepaid costs, capitalized costs associated with the issuance of indebtedness, corporate cash accounts, a current income tax receivable, and advisory fees related to a previously proposed separation transaction.
(1) Includes stock-based compensation expense of $35 and $111 for the three and nine months ended October 2, 2016, respectively, and $40 and $147 for the three and nine months ended September 27, 2015, respectively. (2) Includes stock-based compensation expense of $330 and $2,523 for the three and nine months ended October 2, 2016, respectively, and $1,127 and $3,056 for the three and nine months ended September 27, 2015, respectively.
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Net Income (Loss) per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) per Share | Net Income (Loss) per Share The Company computes basic net income per share by dividing net income applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares and are thus considered participating securities. The impact of the participating securities is included in the computation of basic net income per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings attributable to common shares and participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistribute d earnings. Net income per common share is computed by dividing undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and non-vested restricted shares based on the weighted average shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if our restricted stock units were to be converted into common shares. Restricted stock units with performance conditions are only included in the diluted earnings per share calculation to the extent that performance conditions have been met at the measurement date. We compute diluted earnings per share by adjusting the basic weighted average number of common shares by the dilutive effect of the restricted stock units, determined using the treasury stock method. For the three months ended October 2, 2016, all restricted stock units outstanding were excluded from the computation of diluted earnings per share because to do so would have been antidilutive as a result of the net loss in the third quarter of 2016. Weighted average outstanding restricted stock units totaling 11,489 and 3,214 shares for the nine months ended October 2, 2016 and September 27, 2015, respectively, were not included in the computation of diluted earnings per share because to do so would have been antidilutive. The computation of basic and diluted net income per share is as follows:
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Commitments and Contingencies |
9 Months Ended |
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Oct. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Assignments. Taco Cabana has assigned three leases to various parties on properties where it no longer operates restaurants with lease terms expiring on various dates through 2029. The assignees are responsible for making the payments required by the leases. The Company is a guarantor under one of the leases, and it remains secondarily liable as a surety with respect to two of the leases. The maximum potential liability for future rental payments that the Company could be required to make under these leases at October 2, 2016 was $1.7 million. The Company could also be obligated to pay property taxes and other lease related costs. The obligations under these leases will generally continue to decrease over time as the operating leases expire. The Company does not believe it is probable that it will be ultimately responsible for the obligations under these leases. Legal Matters. The Company is a party to legal proceedings incidental to the conduct of business, including the matter described below. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. On November 24, 2015, Pollo Tropical received a legal demand letter alleging that assistant managers were misclassified as exempt from overtime wages under the Fair Labor Standards Act. On September 30, 2016, prior to any suit being filed, Pollo Tropical reached a settlement with seven named individuals and a proposed collective action class that will allow current and former assistant managers to receive notice and opt-in to the settlement. Pollo Tropical denies any liability or unlawful conduct. The Company has recorded a charge of $0.8 million to cover the estimated costs related to the settlement, including estimated payments to individuals that opt-in to the settlement, premium payments to named individuals, attorneys’ fees for the individuals' counsel, and related settlement administration costs. The charge does not include legal fees incurred by Pollo Tropical in defending the action. The settlement, which is subject to approval by an arbitrator and a judicial body, will result in dismissal with prejudice for the named individuals and all individuals that opt-in to the settlement. On September 29, 2014, Daisy, Inc., an automotive repair shop in Cape Coral, Florida, filed a putative class action suit against Pollo Tropical in the United States District Court for the Middle District of Florida. The suit alleged that Pollo Tropical engaged in unlawful activity in violation of the Telephone Consumer Protection Act, § 227 et seq. occurring in December 2010 and January 2011. During the first quarter of 2016, Pollo Tropical reached a settlement with the plaintiff that resulted in dismissal of the case and paid all settlement claims. The Company is also a party to various other litigation matters incidental to the conduct of business. The Company does not believe that the outcome of any of these matters will have a material effect on its consolidated financial statements.
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Recent Accounting Pronouncements |
9 Months Ended |
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Oct. 02, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, and in subsequent updates, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance in former Topic 605, Revenue Recognition, and provides for either a full retrospective adoption in which the standard is applied to all of the periods presented or a modified retrospective adoption in which the cumulative effect of initially applying the standard is recognized at the date of initial application. The new standard provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers unless the contracts are in the scope of other US GAAP requirements. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain non-financial assets, such as property and equipment, including real estate. The Company is currently evaluating the impact of the provisions of Topic 606; however, the Company expects the provisions to primarily impact certain franchise revenues and does not expect the standard to have a material effect on its financial statements. For the Company, the new standard is effective for interim and annual periods beginning after December 15, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessee recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. For the Company, the new standard is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required with an option to use certain practical expedients. The new guidance is required to be applied at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact on its financial statements. Although the impact is not currently estimable, the Company expects to recognize lease assets and lease liabilities for most of the leases it currently accounts for as operating leases. In March 2016, the FASB issued ASU No. 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products (Topic 405-20), which creates an exception under Topic 405-20 to derecognize financial liabilities related to certain prepaid stored-value products using a breakage model consistent with the revenue breakage model in Topic 606. The new guidance will be effective concurrent with Topic 606, which is effective for the Company for interim and annual periods beginning after December 15, 2017. The Company does not expect this standard to have a material effect on its financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), to simplify various aspects of the accounting and presentation of share-based payments, including the income tax effects of awards and forfeiture assumptions. Currently, tax deductions in excess of compensation costs (excess tax benefits) are recorded in equity and tax deduction shortfalls (tax deficiencies), to the extent of previous excess tax benefits, are recorded in equity and then to income tax expense. Under the new guidance, all excess tax benefits and tax deficiencies will be recorded to income tax expense in the income statement, which could create volatility in the Company's income statement. The new guidance will also change the classification of excess tax benefits in the cash flow statement and impact the diluted earnings per share calculation. The guidance will be effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. Different components of the guidance require prospective, retrospective and/or modified retrospective adoption. The Company is currently evaluating the impact on its financial statements and it is not currently estimable. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments, to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance will be effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and a retrospective approach is required. The Company is currently evaluating the impact, if any, on its financial statements.
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Basis of Presentation (Policies) |
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Oct. 02, 2016 | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Basis of Consolidation | Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. | ||||
Fiscal Year | Fiscal Year. The Company uses a 52-53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended January 3, 2016 contained 53 weeks. The three and nine months ended October 2, 2016 and September 27, 2015 each contained thirteen and thirty-nine weeks, respectively. The fiscal year ending January 1, 2017 will contain 52 weeks. | ||||
Basis of Presentation | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and nine months ended October 2, 2016 and September 27, 2015 have been prepared without an audit pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three and nine months ended October 2, 2016 and September 27, 2015 are not necessarily indicative of the results to be expected for the full year.These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended January 3, 2016 included in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2016. The January 3, 2016 balance sheet data is derived from those audited financial statements. | ||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value:
• Revolving Credit Borrowings. The fair value of outstanding revolving credit borrowings under the Company's senior credit facility, which is considered Level 2, is based on current LIBOR rates.
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Long-Lived Assets | Long-Lived Assets. The Company assesses the recoverability of property and equipment and definite-lived intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining lives through undiscounted future operating cash flows. Impairment is reviewed when events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. | ||||
Use of Estimates | Use of Estimates. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill and long-lived assets and lease accounting matters. Actual results could differ from those estimates. | ||||
Segment Reporting | The Company is engaged in the fast-casual restaurant industry, with two restaurant concepts (each of which is an operating segment): Pollo Tropical and Taco Cabana. Pollo Tropical restaurants offer a wide variety of freshly prepared Caribbean-inspired food while our Taco Cabana restaurants offer a broad selection of hand-made, freshly prepared and authentic Mexican food. Each segment's accounting policies are the same as those discussed in the summary of significant accounting policies in Note 1 to the Company's audited financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2016. The Company reports more than one measure of segment profit or loss to the chief operating decision maker for the purposes of allocating resources to the segments and assessing their performance. The primary measures of segment profit or loss used to assess performance and allocate resources are income (loss) before taxes and Adjusted EBITDA, which is defined as earnings attributable to the applicable operating segment before interest, income taxes, depreciation and amortization, impairment and other lease charges, stock-based compensation expense and other income and expense. | ||||
Net Income per Share | The Company computes basic net income per share by dividing net income applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares and are thus considered participating securities. The impact of the participating securities is included in the computation of basic net income per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings attributable to common shares and participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Net income per common share is computed by dividing undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and non-vested restricted shares based on the weighted average shares outstanding during the period. | ||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, and in subsequent updates, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance in former Topic 605, Revenue Recognition, and provides for either a full retrospective adoption in which the standard is applied to all of the periods presented or a modified retrospective adoption in which the cumulative effect of initially applying the standard is recognized at the date of initial application. The new standard provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers unless the contracts are in the scope of other US GAAP requirements. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain non-financial assets, such as property and equipment, including real estate. The Company is currently evaluating the impact of the provisions of Topic 606; however, the Company expects the provisions to primarily impact certain franchise revenues and does not expect the standard to have a material effect on its financial statements. For the Company, the new standard is effective for interim and annual periods beginning after December 15, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessee recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. For the Company, the new standard is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required with an option to use certain practical expedients. The new guidance is required to be applied at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact on its financial statements. Although the impact is not currently estimable, the Company expects to recognize lease assets and lease liabilities for most of the leases it currently accounts for as operating leases. In March 2016, the FASB issued ASU No. 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products (Topic 405-20), which creates an exception under Topic 405-20 to derecognize financial liabilities related to certain prepaid stored-value products using a breakage model consistent with the revenue breakage model in Topic 606. The new guidance will be effective concurrent with Topic 606, which is effective for the Company for interim and annual periods beginning after December 15, 2017. The Company does not expect this standard to have a material effect on its financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), to simplify various aspects of the accounting and presentation of share-based payments, including the income tax effects of awards and forfeiture assumptions. Currently, tax deductions in excess of compensation costs (excess tax benefits) are recorded in equity and tax deduction shortfalls (tax deficiencies), to the extent of previous excess tax benefits, are recorded in equity and then to income tax expense. Under the new guidance, all excess tax benefits and tax deficiencies will be recorded to income tax expense in the income statement, which could create volatility in the Company's income statement. The new guidance will also change the classification of excess tax benefits in the cash flow statement and impact the diluted earnings per share calculation. The guidance will be effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. Different components of the guidance require prospective, retrospective and/or modified retrospective adoption. The Company is currently evaluating the impact on its financial statements and it is not currently estimable. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments, to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance will be effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and a retrospective approach is required. The Company is currently evaluating the impact, if any, on its financial statements.
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Other Liabilities (Tables) |
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Other Liabilities, Current | Other liabilities, current, consist of the following:
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Other Liabilities, Long-term | Other liabilities, long-term, consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in the Closed-Store Reserve | The following table presents the activity in the closed-store reserve, of which $1.0 million and $1.1 million are included in long-term accrued occupancy costs at October 2, 2016 and January 3, 2016, respectively, with the remainder in other current liabilities.
|
Impairment of Long-Lived Assets and Other Lease Charges (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Impairment Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impairment on Long-Lived Assets and Other Lease Charges by Segment | A summary of impairment on long-lived assets and other lease charges recorded by segment is as follows:
|
Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Non-vested Restricted Shares and Restricted Stock Units Activity | A summary of all non-vested restricted shares and restricted stock units activity for the nine months ended October 2, 2016 is as follows:
|
Business Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment |
(1) Includes stock-based compensation expense of $35 and $111 for the three and nine months ended October 2, 2016, respectively, and $40 and $147 for the three and nine months ended September 27, 2015, respectively. (2) Includes stock-based compensation expense of $330 and $2,523 for the three and nine months ended October 2, 2016, respectively, and $1,127 and $3,056 for the three and nine months ended September 27, 2015, respectively.
|
Net Income (Loss) per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The computation of basic and diluted net income per share is as follows:
|
Basis of Presentation - Fair Value Disclosures (Details) - USD ($) $ in Millions |
Oct. 02, 2016 |
Jan. 03, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of senior credit facility | $ 65.9 | $ 71.0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior credit facility | $ 65.9 | $ 71.0 |
Other Liabilities - Current (Details) - USD ($) $ in Thousands |
Oct. 02, 2016 |
Jan. 03, 2016 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Accrued workers' compensation and general liability claims | $ 6,717 | $ 5,540 |
Sales and property taxes | 2,531 | 3,031 |
Accrued occupancy costs | 934 | 980 |
Other | 2,067 | 2,545 |
Other liabilities, current | $ 12,249 | $ 12,096 |
Other Liabilities - Noncurrent (Details) - USD ($) $ in Thousands |
Oct. 02, 2016 |
Jan. 03, 2016 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Accrued occupancy costs | $ 17,602 | $ 15,349 |
Deferred compensation | 1,797 | 1,665 |
Accrued workers' compensation and general liability claims | 1,910 | 697 |
Other | 4,426 | 3,286 |
Other liabilities, noncurrent | $ 25,735 | $ 20,997 |
Other Liabilities - Narrative (Details) - Closed Stores [Member] - USD ($) $ in Thousands |
Oct. 02, 2016 |
Jan. 03, 2016 |
Dec. 28, 2014 |
---|---|---|---|
Restructuring Cost and Reserve [Line Items] | |||
Closed-store reserve | $ 1,543 | $ 1,832 | $ 1,251 |
Other Liabilities, Noncurrent [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Closed-store reserve | $ 1,000 | $ 1,100 |
Other Liabilities - Restructuring Reserve (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Oct. 02, 2016 |
Jan. 03, 2016 |
|
Activity in the Closed-Store Reserve | ||
Provisions for restaurant closures | $ 100 | |
Closed Stores [Member] | ||
Activity in the Closed-Store Reserve | ||
Balance, beginning of period | 1,832 | $ 1,251 |
Provisions for restaurant closures | 0 | 554 |
Additional lease charges, net of (recoveries) | 0 | 258 |
Payments, net | (411) | (358) |
Other adjustments | 122 | 127 |
Balance, end of period | $ 1,543 | $ 1,832 |
Impairment of Long-Lived Assets and Other Lease Charges - Impairment on Long-Lived Assets and Other Lease Charges by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
|
Impairment and Other Lease Charges [Line Items] | ||||
Impairment and other lease charges | $ 18,513 | $ 387 | $ 18,607 | $ 481 |
Pollo Tropical [Member] | ||||
Impairment and Other Lease Charges [Line Items] | ||||
Impairment and other lease charges | 18,390 | 387 | 18,390 | 387 |
Taco Cabana [Member] | ||||
Impairment and Other Lease Charges [Line Items] | ||||
Impairment and other lease charges | $ 123 | $ 0 | $ 217 | $ 94 |
Net Income (Loss) per Share - Narrative (Details) - shares |
9 Months Ended | |
---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
|
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average antidilutive securities excluded from computation of diluted earnings per share (in shares) | 11,489 | 3,214 |
Net Income (Loss) per Share - Computation of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
|
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (4,531) | $ 7,945 | $ 14,280 | $ 29,695 |
Less: income allocated to participating securities | 0 | (81) | (138) | (359) |
Net income (loss) available to common stockholders | $ (4,531) | $ 7,864 | $ 14,142 | $ 29,336 |
Weighted average common shares, basic | 26,716,219 | 26,557,940 | 26,658,739 | 26,494,599 |
Restricted stock units (in shares) | 0 | 7,635 | 6,352 | 7,352 |
Weighted average common shares, diluted | 26,716,219 | 26,565,575 | 26,665,091 | 26,501,951 |
Basic net income (loss) per common share (usd per share) | $ (0.17) | $ 0.30 | $ 0.53 | $ 1.11 |
Diluted net income (loss) per common share (usd per share) | $ (0.17) | $ 0.30 | $ 0.53 | $ 1.11 |
Commitments and Contingencies (Details) $ in Millions |
Sep. 30, 2016
USD ($)
|
Nov. 24, 2015
plaintiff
|
Oct. 02, 2016
USD ($)
restaurant
|
---|---|---|---|
Commitments and Contingencies Disclosure [Abstract] | |||
Number of subleases | restaurant | 3 | ||
Maximum potential liability for future rental payments | $ 1.7 | ||
Fair Labor Standards Act Legal Demand Letter [Member] | |||
Loss Contingencies [Line Items] | |||
Number of named individuals related to settlement | plaintiff | 7 | ||
Recorded charge to cover estimated costs related to settlement | $ 0.8 |
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