Stock-Based Compensation Plans (Tables)

12 Months Ended

Jan. 02, 2024

Stock-Based Compensation Recognized within Our Consolidated Financial Statements

The following table presents the stock-based compensation recognized within our consolidated financial statements (in thousands):

	Fiscal Year
	2023		2022		2021
Labor and benefits	$	2,583	$	2,886	$	2,748
General and administrative	$	8,319	$	7,212	$	7,583
Capitalized (1)	$	380	$	326	$	310
Total stock-based compensation	$	11,282	$	10,424	$	10,641

(1) Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on our Consolidated Balance Sheets.

Black-Scholes Option-Pricing Model, Weighted Average Assumptions Used to Estimate the Fair Value of Each Stock Option

The fair value of each stock option was estimated on the grant date using the Black‑Scholes option-pricing model with the following weighted average assumptions:

	Fiscal Year
	2023			2022			2021
Expected volatility		66.9	%		63.5	%		60.8	%
Risk-free interest rate		3.6	%		1.8	%		0.6	%
Expected option life	5 years			5 years			5 years
Dividend yield		—			—			—
Fair value of options granted	$	18.24		$	17.15		$	23.22

Stock Option Activity

Under our stock-based compensation plan, the exercise price of a stock option is required to equal or exceed the fair value of our common stock at market close on the option grant date or the last trading day prior to the date of grant when grants take place on a day when the market is closed. The following table presents stock option activity:

	Options Outstanding					Options Exercisable
	Shares (in thousands)			Weighted Average Exercise Price		Shares (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life
Outstanding at December 29, 2020		801		$	40.56		503	$	39.91		5.2
Granted		117		$	45.50
Exercised		(129	)	$	37.40
Forfeited		(14	)	$	44.11
Outstanding at December 28, 2021		775		$	41.77		519	$	41.02		5.0
Granted		111		$	31.57
Exercised		—		$	—
Forfeited		(62	)	$	40.71
Outstanding at January 3, 2023		824		$	40.48		601	$	41.57		4.7
Granted		124		$	31.19
Exercised		(28	)	$	29.18
Forfeited		(53	)	$	37.43
Outstanding at January 2, 2024		867		$	39.70		648	$	41.65		4.4

Information Relating to Significant Option Groups Outstanding

Information relating to significant option groups outstanding as of January 2, 2024, is as follows (shares in thousands):

	Options Outstanding						Options Exercisable
Range of  Exercise Prices	Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Exercisable		Weighted Average Exercise Price
$22.27 – $30.05		17		7.7	$	26.55		7	$	28.04
$31.34 – $31.34		112		9.0	$	31.34		—	$	—
$32.27 – $34.24		87		7.7	$	32.37		32	$	32.53
$34.26 – $35.95		88		3.1	$	35.92		87	$	35.94
$37.10 – $37.10		2		2.9	$	37.10		2	$	37.10
$37.70 – $37.70		126		4.0	$	37.70		126	$	37.70
$38.90 – $38.90		127		6.0	$	38.90		127	$	38.90
$39.33 – $46.91		150		5.3	$	44.76		109	$	44.58
$47.04 – $52.98		73		1.1	$	47.72		73	$	47.72
$53.22 – $53.22		85		5.0	$	53.22		85	$	53.22
$22.27 – $53.22		867		5.4	$	39.70		648	$	41.65

Time-Vested Restricted Stock Units

Restricted Stock Unit Activity

The following table presents time-based restricted stock unit activity:

	Shares (in thousands)			Weighted Average Fair Value
Outstanding at December 29, 2020		586		$	37.14
Granted		260		$	45.05
Vested or released		(147	)	$	41.96
Forfeited		(80	)	$	36.93
Outstanding at December 28, 2021		619		$	39.35
Granted		368		$	28.44
Vested or released		(165	)	$	40.59
Forfeited		(93	)	$	35.24
Outstanding at January 3, 2023		729		$	34.10
Granted		344		$	28.93
Vested or released		(169	)	$	37.69
Forfeited		(82	)	$	31.62
Outstanding at January 2, 2024		822		$	31.46

Performance Based Restricted Stock Units

Restricted Stock Unit Activity

The following table presents performance-based restricted stock unit activity:

	Shares (in thousands)			Weighted Average Fair Value
Outstanding at December 29, 2020		109		$	42.39
Granted		46		$	46.91
Vested or released		(35	)	$	37.70
Forfeited		(8	)	$	44.14
Outstanding at December 28, 2021		112		$	45.60
Granted		52		$	32.27
Vested or released		(27	)	$	53.22
Forfeited		(14	)	$	40.06
Outstanding at January 3, 2023		123		$	38.89
Granted		52		$	31.87
Vested or released		(40	)	$	38.90
Forfeited		(7	)	$	35.01
Outstanding at January 2, 2024		128		$	36.24