Income Taxes (Tables)

12 Months Ended

Jan. 02, 2024

Income Tax Disclosure [Abstract]

Income Tax Benefit

Income tax benefit for the last three fiscal years consists of the following (in thousands):

	Fiscal Year
	2023			2022			2021
Current:
Federal	$	1,378		$	647		$	2,776
State		897			379			323
		2,275			1,026			3,099
Deferred:
Federal		(11,344	)		(12,653	)		(16,872	)
State		(491	)		(757	)		(1,803	)
		(11,835	)		(13,410	)		(18,675	)
Income tax benefit	$	(9,560	)	$	(12,384	)	$	(15,576	)

Income Tax Benefit Differs from Amount that would Result from Applying Federal Statutory Rate

Income tax benefit for the last three fiscal years differs from the amount that would result from applying the federal statutory rate as follows:

	Fiscal Year
	2023			2022			2021
Income tax at statutory rates		21.0	%		(21.0	)%		(21.0	)%
State income taxes, net of federal benefit		5.8			(10.4	)		(5.0	)
Permanent differences		7.7			17.3			0.9
Income tax credits		(117.9	)		(156.8	)		(58.9	)
Return to provision		0.9			(4.3	)		2.1
Prior year tax credit true-up		(6.4	)		14.1			—
Benefit from net operating loss carryback		—			1.8			2.8
Change in valuation allowance		(2.6	)		6.8			(1.1	)
Other, net		(3.2	)		3.4			(1.0	)
		(94.7	)%		(149.1	)%		(81.2	)%

Components of Deferred Income Tax Asset (Liability)

The components of the deferred income tax asset (liability) consist of the following (in thousands):

	January 2, 2024			January 3, 2023
Deferred income tax asset:
Accrued expenses	$	12,939		$	11,887
Other		7,809			3,192
Deferred revenues		—			28
Stock-based compensation		5,026			4,596
Operating lease liability		116,527			122,982
Income tax credits		67,596			56,780
Net operating losses		5,085			7,347
State tax		226			80
Gross deferred income tax asset		215,208			206,892
Valuation allowance		(889	)		(1,151	)
Deferred income tax asset, net of valuation allowance		214,319			205,741
Deferred income tax liability:
Property and equipment		(55,269	)		(51,659	)
Intangible assets		(2,951	)		(2,895	)
Operating lease assets		(101,358	)		(108,307	)
Smallwares		(4,594	)		(4,568	)
Deferred income tax liability		(164,172	)		(167,429	)
Net deferred income tax asset	$	50,147		$	38,312

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Fiscal Year
	2023			2022			2021
Gross unrecognized tax benefits at beginning of year	$	1,249		$	1,198		$	1,333
Increases for tax positions taken in prior years		102			3			—
Decreases for tax positions taken in prior years		—			(29	)		(20	)
Increases for tax positions taken in the current year		104			91			69
Lapse in statute of limitations		(488	)		(14	)		(184	)
Gross unrecognized tax benefits at end of year	$	967		$	1,249		$	1,198