State or Other Jurisdiction of Incorporation or Organization | I.R.S. Employer Identification No. | |||||||
Address of Principal Executive Offices | Zip Code |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large Accelerated Filer ☐ | ||||||||||||||
Non-accelerated Filer ☐ | Smaller Reporting Company | |||||||||||||
Emerging Growth Company |
Page | ||||||||
ASSETS | |||||||||||
Current assets: | July 3, 2022 | January 2, 2022 | |||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $ | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, equipment and leasehold improvements, net | |||||||||||
Other assets: | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred tax asset, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Current portion of operating lease liabilities | |||||||||||
Current portion of long-term debt and finance lease liabilities | |||||||||||
Accrued compensation and benefits | |||||||||||
Gift card liability | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term liabilities: | |||||||||||
Operating lease liabilities, less current portion | |||||||||||
Finance lease liabilities, less current portion | |||||||||||
Long-term debt, less current portion | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Total shareholders’ equity | |||||||||||
Non-controlling interest | ( | ||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Restaurant sales, net | $ | $ | $ | $ | |||||||||||||||||||
Franchise royalty and fee revenue | |||||||||||||||||||||||
Franchisee national advertising fund contributions | |||||||||||||||||||||||
Licensing and other revenue | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Food and beverage costs | |||||||||||||||||||||||
Labor and benefits costs | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Depreciation and amortization expenses | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
National advertising fund expenses | |||||||||||||||||||||||
Asset impairment, estimated lease termination charges and other closing costs, net | |||||||||||||||||||||||
Pre-opening expenses | |||||||||||||||||||||||
Loss (gain) on disposal of property, net | ( | ||||||||||||||||||||||
Total costs and expenses | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Interest income | |||||||||||||||||||||||
Gain upon debt extinguishment | |||||||||||||||||||||||
Gain on bargain purchase | |||||||||||||||||||||||
Other gain | |||||||||||||||||||||||
Total other income | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Net (income) loss attributable to non-controlling interest | ( | ( | |||||||||||||||||||||
Net income attributable to shareholders | $ | $ | $ | $ | |||||||||||||||||||
Income per common share: | |||||||||||||||||||||||
Basic net income per share attributable to shareholders | $ | $ | $ | $ | |||||||||||||||||||
Diluted net income per share attributable to shareholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding - basic | |||||||||||||||||||||||
Weighted average shares outstanding - diluted |
Common Stock | Additional Paid-in Capital | Retained Earnings | Total Shareholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance - April 3, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||
Issuance of restricted common stock, net of shares withheld for taxes | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of options, net of shares withheld for taxes | — | — | — | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Sale of minority investment | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance - July 3, 2022 | $ | $ | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Total Shareholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance - January 2, 2022 | ( | ||||||||||||||||||||||||||||||||||||||||
Issuance of restricted common stock, net of shares withheld for taxes | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of options, net of shares withheld for taxes | — | — | — | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Sale of minority investment | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance - July 3, 2022 | $ | $ | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Total Shareholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance - April 4, 2021 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of options, net of shares withheld for taxes | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to PIPE | — | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||||||||
Balance - July 4, 2021 | $ | $ | $ | $ | $ | ( | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Total Shareholders' Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance - January 3, 2021 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of options, net of shares withheld for taxes | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to PIPE | — | — | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||||||||
Balance - July 4, 2021 | $ | $ | $ | $ | $ | ( | $ |
Six Months Ended | |||||||||||
July 3, 2022 | July 4, 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to cash flows provided by operations: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Loss on disposal of property, net | |||||||||||
Asset impairment, estimated lease termination charges and other closing costs, net | |||||||||||
Gain upon debt extinguishment | ( | ||||||||||
Gain on bargain purchase | ( | ||||||||||
Amortization of operating right-of-use assets | |||||||||||
Deferred tax asset | |||||||||||
Other gain | ( | ||||||||||
Other non-cash items | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ||||||||||
Prepaid expenses and other assets | ( | ||||||||||
Accounts payable | ( | ||||||||||
Accrued compensation and benefits | |||||||||||
Lease liabilities | ( | ( | |||||||||
Gift card liability | ( | ( | |||||||||
Accrued and other liabilities | ( | ||||||||||
Cash flows provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property, equipment and leasehold improvements | ( | ( | |||||||||
Payments for acquired restaurants | ( | ||||||||||
Proceeds from disposal of minority investment | |||||||||||
Transfer from HFS | |||||||||||
Payments received on note receivable | |||||||||||
Cash flows used for investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from long-term debt | |||||||||||
Payments on long-term debt | ( | ( | |||||||||
Tax payments for restricted stock units and stock options exercised | ( | ||||||||||
Proceeds from sale of common stock, net of offering costs | |||||||||||
Proceeds from exercise of stock options | |||||||||||
Cash flows provided by financing activities | |||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental Disclosures | |||||||||||
Cash paid for interest, net | $ | $ | |||||||||
Non-cash investing and financing activities: | |||||||||||
Operating right-of-use assets acquired | |||||||||||
Lease liabilities assumed pursuant to acquisitions | |||||||||||
Gift card liability assumed pursuant to acquisitions | |||||||||||
Inventory acquired pursuant to acquisitions |
Three Months Ended | Six Months Ended | |||||||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||||||
Effective tax rate | % | % | % | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in thousands, except per share data) | July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||||||||
Net income per share – basic: | |||||||||||||||||||||||
Net income attributable to shareholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding - basic | |||||||||||||||||||||||
Basic net income per share attributable to shareholders | $ | $ | $ | $ | |||||||||||||||||||
Net income per share – diluted: | |||||||||||||||||||||||
Net income attributable to shareholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding - diluted | |||||||||||||||||||||||
Diluted net income per share attributable to shareholders | $ | $ | $ | $ |
(in thousands) | |||||
Assets acquired: | |||||
Inventory | |||||
Property, plant, equipment and leasehold improvements, net | |||||
Lease right-of-use asset, net of unfavorable lease value | |||||
Identifiable intangible assets, net | |||||
Other current assets | |||||
Total identifiable assets acquired | |||||
Liabilities assumed: | |||||
Lease liability | ( | ||||
Other current liabilities | ( | ||||
Net assets acquired | |||||
Goodwill | |||||
Total consideration transferred | $ |
(in thousands) | |||||
Assets acquired: | |||||
Inventory | |||||
Property, plant, equipment and leasehold improvements, net | |||||
Lease right-of-use asset, net of unfavorable lease value | |||||
Identifiable intangible assets, net | |||||
Other current assets | |||||
Total identifiable assets acquired | |||||
Liabilities assumed: | |||||
Lease liability | ( | ||||
Other current liabilities | ( | ||||
Net assets acquired | |||||
Goodwill | |||||
Total consideration transferred | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Pro forma revenues | $ | $ | $ | $ | |||||||||||||||||||
Pro forma net income attributable to shareholders | $ | $ | $ | $ | |||||||||||||||||||
Basic pro forma net income per share attributable to shareholders | $ | $ | $ | $ | |||||||||||||||||||
Diluted pro forma net income per share attributable to shareholders | $ | $ | $ | $ |
(in thousands) | July 3, 2022 | January 2, 2022 | |||||||||
Prepaid expenses and deferred costs | $ | $ | |||||||||
Prepaid rent | |||||||||||
Prepaid insurance | |||||||||||
Other prepaid expenses | |||||||||||
Prepaid expenses and other current assets | $ | $ |
(in thousands) | July 3, 2022 | January 2, 2022 | |||||||||
Land, buildings, and improvements | $ | $ | |||||||||
Furniture, fixtures, equipment and software | |||||||||||
Décor | |||||||||||
Construction in progress | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Property, equipment and leasehold improvements, net | $ | $ |
(in thousands) | July 3, 2022 | July 4, 2021 | |||||||||
Balance, beginning of period | |||||||||||
Acquisitions during the period | |||||||||||
Balance, end of period | $ | $ |
(in thousands) | July 3, 2022 | January 2, 2022 | |||||||||
Franchise rights, net | |||||||||||
Liquor licenses | |||||||||||
Trademark/Logos/Patents | |||||||||||
Database | |||||||||||
Intangible assets, net | $ | $ |
(in thousands) | July 3, 2022 | January 2, 2022 | |||||||||
Sales tax payable and state income tax payable | |||||||||||
Other accrued expense | |||||||||||
Accrued real estate taxes | |||||||||||
Accrued interest | |||||||||||
Accrued utilities | |||||||||||
Deferred revenue | |||||||||||
Deferred franchise fees | |||||||||||
Other current liabilities | $ | $ |
(in thousands) | July 3, 2022 | January 2, 2022 | |||||||||
Term Loan | $ | $ | |||||||||
Less: deferred financing costs | ( | ( | |||||||||
Less: current portion of long-term debt | ( | ( | |||||||||
Long-term debt, less current portion | $ | $ |
(in thousands) | Three Months Ended July 3, 2022 | Three Months Ended July 4, 2021 | Six Months Ended July 3, 2022 | Six Months Ended July 4, 2021 | |||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Short-term lease cost | |||||||||||||||||||||||
Variable lease cost | |||||||||||||||||||||||
Sublease income | ( | ( | ( | ( | |||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
(in thousands) | Six Months Ended July 3, 2022 | Six Months Ended July 4, 2021 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | |||||||||||
Weighted-average remaining lease term of operating leases (in years) | |||||||||||
Weighted-average discount rate of operating leases | % | % |
(in thousands) | |||||
Fiscal Year | |||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
(in thousands) | July 3, 2022 | ||||
Beginning Balance | $ | ||||
Additions | |||||
Revenue recognized | ( | ||||
Ending Balance | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in thousands) | July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||||||||
Stock options | $ | $ | $ | $ | |||||||||||||||||||
Restricted stock and restricted stock units | |||||||||||||||||||||||
$ | $ | $ | $ |
(number of options in thousands) | Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life in Years | ||||||||||||||
Options outstanding at January 2, 2022 | $ | ||||||||||||||||
Exercised | ( | ||||||||||||||||
Canceled, forfeited or expired | ( | ||||||||||||||||
Options outstanding at July 3, 2022 | $ |
Six Months Ended | |||||||||||
July 3, 2022 | July 4, 2021 | ||||||||||
Weighted-average fair value of options granted during the period | $ | $ | |||||||||
Expected life (in years) | — | ||||||||||
Expected dividend | $ | $ | |||||||||
Expected stock volatility | % | % | |||||||||
Risk-free interest rate | % | % |
(number of awards in thousands) | Number of Awards | Weighted Average Award Date Fair Value | Weighted Average Remaining Contractual Life in Years | ||||||||||||||
Unvested at January 2, 2022 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Exercised/Released | ( | ||||||||||||||||
Canceled, forfeited or expired | ( | ||||||||||||||||
Unvested at July 3, 2022 | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in thousands) | July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||||||||
Revenues and NAF contributions - Charles Davidson |
(in thousands) | July 3, 2022 | January 2, 2022 | |||||||||
Accounts receivable, net - Charles Davidson |
BBQ Holdings | |||||||||||
Six Months Ended July 3, 2022 | Six Months Ended July 4, 2021 | ||||||||||
Company-owned restaurants: | |||||||||||
Famous Dave's | 43 | 27 | |||||||||
Granite City Food & Brewery | 18 | 18 | |||||||||
Real Urban Barbecue | 2 | 1 | |||||||||
Clark Crew BBQ | — | 1 | |||||||||
Village Inn | 24 | — | |||||||||
Bakers Square | 14 | — | |||||||||
Tahoe Joe's | 4 | — | |||||||||
Famous Craft Concepts | 4 | — | |||||||||
Barrio Queen | 7 | — | |||||||||
End of period | 116 | 47 | |||||||||
% of system | 36 | % | 32 | % | |||||||
Franchise-operated and licensed restaurants: | |||||||||||
Famous Dave's | 100 | 100 | |||||||||
Village Inn | 102 | — | |||||||||
Bakers Square | 6 | — | |||||||||
End of period | 208 | 100 | |||||||||
% of system | 64 | % | 68 | % | |||||||
System end of period total | 324 | 147 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||||||||||||||||
Food and beverage costs(1) | 30.6 | % | 29.0 | % | 30.9 | % | 29.4 | % | |||||||||||||||
Labor and benefits costs(1) | 32.6 | % | 30.2 | % | 32.8 | % | 30.3 | % | |||||||||||||||
Operating expenses(1) | 26.4 | % | 28.1 | % | 27.7 | % | 29.2 | % | |||||||||||||||
Restaurant-level operating margin(1)(2) | 10.4 | % | 12.7 | % | 8.6 | % | 11.1 | % | |||||||||||||||
Depreciation and amortization expenses(3) | 2.8 | % | 3.1 | % | 3.2 | % | 3.6 | % | |||||||||||||||
General and administrative expenses(3) | 7.2 | % | 10.0 | % | 7.7 | % | 10.4 | % | |||||||||||||||
Income from operations(3) | 5.6 | % | 6.4 | % | 3.5 | % | 4.5 | % |
Three Months Ended | |||||||||||||||||||||||
(dollars in thousands) | July 3, 2022 | July 4, 2021 | $ Change | % Change | |||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Restaurant sales, net | $ | 74,625 | $ | 41,205 | $ | 33,420 | 81.1 | % | |||||||||||||||
Franchise royalty and fee revenue | 3,900 | 2,946 | 954 | 32.4 | |||||||||||||||||||
Franchisee national advertising fund contributions | 547 | 421 | 126 | 29.9 | |||||||||||||||||||
Licensing and other revenue | 866 | 948 | (82) | (8.6) | |||||||||||||||||||
Total revenue | $ | 79,938 | $ | 45,520 | $ | 34,418 | 75.6 | % |
Six Months Ended | |||||||||||||||||||||||
(dollars in thousands) | July 3, 2022 | July 4, 2021 | $ Change | % Change | |||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Restaurant sales, net | $ | 133,356 | $ | 74,808 | $ | 58,548 | 78.3 | % | |||||||||||||||
Franchise royalty and fee revenue | 7,507 | 5,320 | 2,187 | 41.1 | |||||||||||||||||||
Franchisee national advertising fund contributions | 1,037 | 749 | 288 | 38.5 | |||||||||||||||||||
Licensing and other revenue | 2,222 | 1,962 | 260 | 13.3 | |||||||||||||||||||
Total revenue | $ | 144,122 | $ | 82,839 | $ | 61,283 | 74.0 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | ||||||||||||||||||||
Average Weekly Net Sales (AWS): | |||||||||||||||||||||||
Franchise-Operated Famous Dave's(1) | $ | 54,712 | $ | 57,499 | $ | 52,667 | $ | 52,660 | |||||||||||||||
Company-Owned Famous Dave's | 61,713 | 60,947 | 57,868 | 55,284 | |||||||||||||||||||
Company-Owned Granite City | 79,304 | 71,282 | 75,408 | 64,332 | |||||||||||||||||||
Company-Owned Clark Crew BBQ | 159,569 | 161,046 | 153,210 | 149,914 | |||||||||||||||||||
Company-Owned Real Urban BBQ | 55,034 | 55,139 | 49,560 | 47,216 | |||||||||||||||||||
Company-Owned Village Inn(2) | 33,376 | 32,767 | 33,084 | 30,057 | |||||||||||||||||||
Franchise-Operated Village Inn(1)(2) | 34,570 | 33,773 | 34,138 | 30,857 | |||||||||||||||||||
Company-Owned Bakers Square(2) | 30,925 | 28,952 | 29,249 | 26,076 | |||||||||||||||||||
Company-Owned Tahoe Joe's(2) | 84,414 | 91,136 | 84,539 | 85,199 | |||||||||||||||||||
Company-Owned Famous Craft Concepts(2) | 64,153 | N/A | 64,884 | N/A | |||||||||||||||||||
Company-Owned Barrio Queen(2) | 98,265 | 116,865 | 105,095 | 113,669 |
Three Months Ended | |||||||||||||||||||||||
(dollars in thousands) | July 3, 2022 | July 4, 2021 | $ Change | % Change | |||||||||||||||||||
Food and beverage costs | $ | 22,820 | $ | 11,932 | $ | 10,888 | 91.3 | % |
Six Months Ended | |||||||||||||||||||||||
(dollars in thousands) | July 3, 2022 | July 4, 2021 | $ Change | % Change | |||||||||||||||||||
Food and beverage costs | $ | 41,177 | $ | 21,989 | $ | 19,188 | 87.3 | % |
Three Months Ended | |||||||||||||||||||||||
(dollars in thousands) | July 3, 2022 | July 4, 2021 | $ Change | % Change | |||||||||||||||||||
Labor and benefits costs | $ | 24,348 | $ | 12,429 | $ | 11,919 | 95.9 | % |
Six Months Ended | |||||||||||||||||||||||
(dollars in thousands) | July 3, 2022 | July 4, 2021 | $ Change | % Change | |||||||||||||||||||
Labor and benefits costs | $ | 43,734 | 22,683 | $ | 21,051 | 92.8 | % |
Three Months Ended | |||||||||||||||||||||||
(dollars in thousands) | July 3, 2022 | July 4, 2021 | $ Change | % Change | |||||||||||||||||||
Operating expenses | $ | 19,675 | $ | 11,594 | $ | 8,081 | 69.7% |
Six Months Ended | |||||||||||||||||||||||
(dollars in thousands) | July 3, 2022 | July 4, 2021 | $ Change | % Change | |||||||||||||||||||
Operating expenses | $ | 36,914 | $ | 21,843 | $ | 15,071 | 69.0% |
Three Months Ended | |||||||||||||||||||||||
(dollars in thousands) | July 3, 2022 | July 4, 2021 | $ Change | % Change | |||||||||||||||||||
General and administrative expenses | $ | 5,745 | $ | 4,544 | $ | 1,201 | 26.4 | % |
Six Months Ended | |||||||||||||||||||||||
(dollars in thousands) | July 3, 2022 | July 4, 2021 | $ Change | % Change | |||||||||||||||||||
General and administrative expenses | $ | 11,036 | $ | 8,582 | $ | 2,454 | 28.6 | % |
Exhibit Number | Description | |||||||
10.1 | ||||||||
10.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | Inline XBRL Instance Document | |||||||
101.SCH | Inline XBRL Schema Document | |||||||
101.CAL | Inline XBRL Calculation Linkbase Document | |||||||
101.LAB | Inline XBRL Label Linkbase Document | |||||||
101.PRE | Inline XBRL Presentation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
Exhibit 104 | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
Dated: August 11, 2022 | By: | /s/Jeffery Crivello | ||||||
Jeffery Crivello | ||||||||
Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) | ||||||||
Dated: August 11, 2022 | /s/Jason Schanno | |||||||
Jason Schanno | ||||||||
Chief Financial Officer and Secretary | ||||||||
(Principal Financial Officer and Principal Accounting Officer) |
Dated: August 11, 2022 | By: | /s/ Jeffery Crivello | ||||||
Jeffery Crivello | ||||||||
Chief Executive Officer and Director |
Dated: August 11, 2022 | By: | /s/ Jason Schanno | ||||||
Jason Schanno | ||||||||
Chief Financial Officer and Secretary |
Dated: August 11, 2022 | By: | /s/ Jeffery Crivello | ||||||
Jeffery Crivello | ||||||||
Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) |
Dated: August 11, 2022 | By: | /s/ Jason Schanno | ||||||
Jason Schanno | ||||||||
Chief Financial Officer and Secretary | ||||||||
(Principal Financial Officer and Principal Accounting Officer) |
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands |
Jul. 03, 2022 |
Jan. 02, 2022 |
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Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | ||
Accounts receivable net of allowance for doubtful accounts | $ 336 | $ 270 |
Common stock par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 100,000 | 100,000 |
Common stock issued (shares) | 10,760 | 10,495 |
Common stock outstanding (shares) | 10,760 | 10,495 |
BASIS OF PRESENTATION |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation Overview On August 8, 2022, a subsidiary of MTY Food Group Inc. (TSX:MTY) (“MTY”) and the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) providing for the acquisition of the Company by MTY in a transaction consisting of a tender offer (the “Offer”), followed by a subsequent merger, for all of the Company’s issued and outstanding common shares for cash consideration of US$17.25 per Company share representing total transaction value of approximately US$200 million (C$256 million) (the “Transaction”), including the Company’s net debt. The terms and conditions of the Merger Agreement were unanimously approved by the Boards of Directors of both companies. The Transaction is subject to customary closing conditions including receipt of applicable regulatory approvals. Basis of Presentation In September 2019 a holding company reorganization was completed in which Famous Dave’s of America, Inc. (“FDA”) became a wholly owned subsidiary of the new parent holding company named BBQ Holdings, Inc. (“BBQ Holdings”). As used in this Form 10-Q, “Company”, “we” and “our” refer to BBQ Holdings and its wholly owned subsidiaries. BBQ Holdings was incorporated on March 29, 2019 under the laws of the State of Minnesota, while FDA was incorporated in Minnesota on March 14, 1994. The Company develops, owns and operates restaurants under the name “Famous Dave’s”, “Village Inn”, “Barrio Queen”, “Granite City”, Real Urban Barbecue”, “Tahoe Joe’s Steakhouse”, “Bakers Square”, “Craft Republic”, “Fox & Hound”, and “Champps”. Additionally, the Company franchises restaurants under the name “Famous Dave’s” and “Village Inn”. As of July 3, 2022, there were 143 Famous Dave’s restaurants operating in three countries, including 43 Company-owned restaurants and 100 franchise-operated restaurants. This includes the nine Famous Dave’s ghost kitchens the Company operates out of its Granite City restaurants. A Clark Crew BBQ restaurant opened in December 2019 in Oklahoma City, Oklahoma. BBQ Holdings had a 20% ownership in this venture, and sold that entire ownership in June of 2022. The Company owns and operates 18 Granite City Food & Brewery restaurants located throughout the Midwest and two Real Urban Barbecue restaurants located in Illinois. On July 30, 2021, the Company completed the purchase of the Village Inn family restaurant concept currently with 24 Company-owned restaurants and 102 franchised restaurants, and the Bakers Square pie and comfort food concept currently with 14 Company-owned restaurants and six locations where Bakers Square pies are licensed. On October 8, 2021 the Company acquired the Tahoe Joe's Steakhouse brand, currently with four Company-owned restaurants. On March 11, 2022 the Company acquired three bar-centric locations, and on May 24, 2022, the Company acquired another bar-centric location, collectively referred to as “Famous Craft Concepts”. On April 11, 2022, the Company closed the purchase of Barrio Queen, a chain of seven authentic Mexican fine dining restaurants in Phoenix, Arizona. The accompanying condensed consolidated balance sheet as of January 2, 2022, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) Rules and Regulations. The information furnished in these condensed consolidated financial statements include normal recurring adjustments and reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited financial statements represent the condensed consolidated financial statements of the Company and its subsidiaries as of July 3, 2022 and January 2, 2022, and for the three and six months ended July 3, 2022 and July 4, 2021. The results for the three and six months ended July 3, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in BBQ Holdings, Inc.’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022 as filed with the SEC on March 16, 2022. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic and the United States declared a National Public Health Emergency. As a result, public health measures were taken to minimize exposure to the virus. These measures, some of which were government-mandated, were implemented globally resulting in a dramatic decrease in economic activity. During the second quarter of 2021, mandated restrictions began to ease in a number of the markets in which the Company operates. Although the Company has experienced some recovery from the initial impact of COVID-19, the long-term impact of COVID-19 on the economy and on its business remains uncertain, the duration and scope of which cannot currently be predicted. As new variants of COVID-19 are being discovered and cases continue to occur at material rates throughout the markets in which the Company does business, the Company cannot predict the severity of another surge, what additional restrictions may be enacted, to what extent it can maintain off-premise sales volumes, whether it can maintain sufficient staffing levels, or if individuals will be comfortable returning to its dining rooms during or following social distancing protocols, and what long-lasting effects the COVID-19 pandemic may have on the restaurants industry as a whole. The potential impact of the COVID-19 pandemic on consumer spending behavior, which may be a function of continued concerns over safety and/or depressed consumer sentiment due to adverse economic conditions, including job losses, will determine the significance of the impact to the Company’s operating results and financial position. The full impact of the COVID-19 pandemic continues to evolve as of the date of this report. Despite the fact that vaccines are now widely available across the country, there are widespread increases in diagnosed cases reported since the end of the second quarter of 2021 largely due to the spread of COVID-19 variants. The duration of the disruption on global, national, and local economies cannot be reasonably estimated at this time due to the ongoing effects of this situation. Management is continually evaluating the impact of this global crisis on its financial condition, liquidity, operations, suppliers, industry, and workforce and will take additional actions as necessary. Income Taxes The Company maintains a federal deferred tax asset (“DTA”) which was in the amount of $2.9 million as of July 3, 2022 and $3.7 million as of January 2, 2022. The Company evaluates the DTA on a quarterly basis to determine whether current facts and circumstances indicate that the DTA may not be fully realizable. As of July 3, 2022, the Company concluded that the DTA is fully realizable and that no further valuation allowance was necessary; however, the Company will continue to evaluate the DTA on a quarterly basis until the DTA has been fully utilized. The following table presents the Company’s effective tax rates for the periods presented:
The Company uses the discrete method to calculate the quarterly tax provision due to its inability to reliably estimate annual ordinary income (loss). The Company provides for income taxes based on its estimate of federal and state income tax liabilities. These estimates include, among other items, effective rates for state and local income taxes, allowable tax credits for items such as taxes paid on reported tip income, estimates related to depreciation and amortization expense allowable for tax purposes, and the tax deductibility of certain other items. The Company’s estimates are based on the information available at the time that the Company prepares the income tax provision. The Company generally files its annual income tax returns several months after its fiscal year-end. Income tax returns are subject to audit by federal, state, and local governments, generally years after the tax returns are filed. These returns could be subject to material adjustments due to differing interpretations of the tax laws. Cash and cash equivalents Cash equivalents include all investments with original maturities of three months or less or which are readily convertible into known amounts of cash and are not legally restricted. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000, while the remaining balances are uninsured. Restricted cash and marketing fund The Company has Marketing Development Funds, to which Company-owned Famous Dave’s and Village Inn restaurants, in addition to the majority of franchise-operated restaurants, contribute a percentage of net sales, for use in public relations and marketing development efforts. The funds held in this account are used in part to reimburse the Company for its marketing and digital services activities on behalf of the Famous Dave’s and Village Inn brands. The Company also receives funds from its suppliers to be used exclusively for point-of-sale equipment purchases for its own stores as well as its Famous Dave’s franchisees. As the assets held by these funds are considered to be restricted, the Company reflects the cash related to these funds within restricted cash on its consolidated balance sheets. The Company had approximately $679,000 and $1.2 million in these funds as of July 3, 2022 and January 2, 2022, respectively. Net income per common share Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options and restricted stock units, when dilutive. The following table is a reconciliation of basic and diluted net income per common share:
There were approximately 95,250 and 250 stock options outstanding as of July 3, 2022 and July 4, 2021, respectively, that were not included in the computation of diluted EPS because they were anti-dilutive.
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RESTAURANT ACQUISITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restaurant Acquisitions | Restaurant Acquisitions On February 21, 2022, the Company completed the acquisition of the assets and operations of a Famous Dave’s franchise location in La Crosse, Wisconsin. The contract purchase price of the restaurant was approximately $50,000, exclusive of closing costs plus the assumption of the lease, gift card, and certain other liabilities. The assets acquired and the liabilities assumed were considered to be immaterial and were recorded at estimated fair values based on information available, including an ROU asset and offsetting liability of approximately $682,000. Pro forma results were deemed immaterial to the Company. On March 11, 2022, the Company completed the acquisition of three bar-centric locations, two of which are Craft Republic locations and one of which is a Fox and Hound location (collectively, “Famous Craft Concepts” or “FCC”). The purchase price of $4.6 million was funded with cash. Due to the timing of the signing and closing of this acquisition, the initial accounting for this acquisition is incomplete as of the date of this filing. As such, complete ASC 805 “Business Combinations” disclosures could not be made. Management recorded preliminary fair values for the assets acquired and liabilities assumed based on information available as of the date of this filing and will adjust those estimates in a subsequent period once the full independent valuation and management review is finalized. The consolidated statements of operations include the results of these operations from the date of acquisition. Revenue and earnings of the three FCC restaurants listed above included in the consolidated statements of operations in the quarter ended July 3, 2022 totaled approximately $1.9 million and $301,000, respectively, and for the six months ended July 3, 2022 they totaled approximately $2.5 million and $400,000, respectively.
On April 11, 2022, the Company completed the acquisition of Barrio Queen, a chain of authentic Mexican fine dining restaurants in Phoenix, Arizona. There are currently seven operating restaurants and a lease signed for an eighth with a target opening date in 2023. The purchase price of $28.5 million was funded with cash and debt. Goodwill is attributable to the future anticipated economic benefits from combining operations of the Company and Barrio Queen, including future growth into new markets and the workforce in place. All of the goodwill is expected to be deductible for U.S. federal income tax purposes. Due to the timing of the signing and closing of this acquisition, the initial accounting for this acquisition is incomplete as of the date of this filing. As such, complete ASC 805 “Business Combinations” disclosures could not be made. Management recorded preliminary fair values for the assets acquired and liabilities assumed based on information available as of the date of this filing and will adjust those estimates in a subsequent period once the full independent valuation and management review is finalized. The property, plant, equipment and leasehold improvements, net, and identifiable intangible assets, net represent Level 3 valuation measurements as they were based on unobservable inputs reflecting the Company’s assumptions used in developing a fair value estimate. These inputs required significant judgments and estimates at the time of the valuation. The Company engaged a third-party specialist to assist management in estimating the fair value of these assets. The property, plant, equipment and leasehold improvements, net, were valued using a cost plus modified age/life analysis method, and the intangible assets, net, which consisted solely of trademarks, were valued using a relief from royalty method. The consolidated statements of operations include the results of these operations from the date of acquisition. Revenue and earnings of Barrio Queen included in the consolidated statements of operations in the quarter ended July 3, 2022 totaled approximately $8.1 million and $1.1 million, respectively. The following table presents the allocation of assets acquired and liabilities assumed for the Barrio Queen Transaction:
On May 2, 2022, the Company closed on the acquisition of the assets and operations of two Famous Dave’s franchise locations in Nebraska. The contract purchase price for the restaurants was approximately $400,000, which included cash and the forgiveness of a promissory note, as well as the assumption of the lease, gift card, and certain other liabilities. The assets acquired and the liabilities assumed were considered to be immaterial and were recorded at estimated fair values based on information available, including an ROU asset and offsetting liability of approximately $3.0 million. Pro forma results were deemed immaterial to the Company. On May 24, 2022, the Company closed on the acquisition of the assets and operations of one bar-centric restaurant location, Champps in Eden Prairie, Minnesota, which included the royalty rights to two franchised Champps restaurants, located in Wisconsin and Indiana. The contract purchase price for the transaction was approximately $3.4 million, paid for with cash consideration subject to certain purchase price adjustments, as well as the assumption of the lease and certain other liabilities. The assets acquired and the liabilities assumed were considered to be immaterial and were recorded at estimated fair values based on information available, including an ROU asset and offsetting liability of approximately $222,000. Pro forma results were deemed immaterial to the Company. On June 13, 2022, the Company closed on the acquisition of the assets and operations of two Village Inn franchise locations in Virginia. The contract purchase price for the restaurants was approximately $850,000, paid for with cash consideration subject to certain purchase price adjustments, as well as the assumption of the lease, gift card, and certain other liabilities. The assets acquired and the liabilities assumed were considered to be immaterial and were recorded at estimated fair values based on information available, including an ROU asset and offsetting liability of approximately $1.4 million. Pro forma results were deemed immaterial to the Company. Unaudited pro forma results of operations for the three and six months ended July 3, 2022 as if the Company had acquired the operations of Barrio Queen, Famous Craft Concepts, Tahoe Joe's, and Village Inn and Bakers Square at the beginning of each period presented is as follows. The pro forma results include estimates and assumptions which management believes are reasonable. However, pro forma results are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the dates indicated, or which may result in the future. For allocation of assets acquired and liabilities assumed regarding the Village Inn and Bakers Square and Tahoe Joe’s acquisitions see 10-K filed by the Company on March 16, 2022, and for provisional allocation of assets acquired and liabilities assumed regarding the Famous Craft Concepts acquisition, see 10-Q filed by the Company on May 12, 2022.
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PREPAID EXPENSES AND OTHER CURRENT ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following at:
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PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Equipment, And Leasehold Improvements, net | Property, Equipment and Leasehold Improvements, net Property, equipment and leasehold improvements, net, consisted of the following:
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GOODWILL |
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Business Combination, Goodwill [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill The change in the Company's goodwill balance is as follows for the six months ended July 3, 2022 and July 4, 2021:
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INTANGIBLE ASSETS, NET |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, net | Intangible Assets, net The Company has intangible assets that consist of liquor licenses, database, trademarks and patents, and franchise rights, net. The liquor licenses and trademarks/logos are indefinite-lived assets and are not subject to amortization. Franchise rights are amortized to depreciation and amortization expense on a straight-line basis over the estimated remaining life of the asset in accordance with the Company's useful life policy. Franchise rights generally amortize over a period of 10 years. Intangible assets consisted of the following:
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OTHER CURRENT LIABILITIES |
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Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Liabilities | Other Current Liabilities Other current liabilities consisted of the following at:
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LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-Term Debt On November 23, 2021, the Company, as borrower, entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. The Credit Agreement had a five-year term and provided for up to a $5.0 million revolving line of credit and a $15.0 million term loan. The Credit Agreement also provided for the issuance of letters of credit in an aggregate amount up to $1,000,000 which, upon issuance, would be deemed advances under the revolving line of credit. Proceeds of borrowings were used to refinance all indebtedness previously owed to Choice Financial Group. The proceeds were also used for accretive capital allocation and for working capital purposes. The Credit Agreement was amended on April 11, 2022 (the “Amended Credit Agreement”), increasing the revolving line of credit to $25.0 million and the term loan to $25.0 million. The Amended Credit Agreement has a five-year term. Proceeds of borrowings were used for accretive capital allocation and for working capital purposes. Specifically, a portion of the increased borrowings was used to fund the acquisition of Barrio Queen that closed on April 11, 2022. The Company’s obligations under the Amended Credit Agreement are secured by substantially all of its assets, excluding real property. Subject to certain conditions, borrowings under the Amended Credit Agreement bear interest in the range of 1.75% to 2.25% per annum plus SOFR. If SOFR becomes unavailable, the replacement rate will be determined pursuant to the terms of the Amended Credit Agreement. Quarterly principal payments are required with a balloon payment due at maturity. The Amended Credit Agreement contains customary representations, warranties and covenants, including the financial covenants to maintain a rent adjusted leverage ratio not greater than 4.5 to 1.0 and a fixed charge coverage ratio of not less than 1.1 to 1.0. In addition, the Amended Credit Agreement places restrictions on the Company’s ability to incur additional indebtedness, to create liens or other encumbrances, to sell or otherwise dispose of assets, to merge or consolidate with other entities, to make restricted payments such as dividends and stock repurchases, and to make capital expenditures in excess of $10.0 million in the aggregate during any fiscal year. Debt outstanding consisted of the following as of the periods presented:
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company leases the property for its corporate headquarters and most of its Company-owned stores. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities in its consolidated balance sheets. Lease expense for lease payments is recognized on a straight-line basis over the lease term and is included in operating expenses and general and administrative expenses on the statement of operations. The components of lease expense for the period presented is as follows:
Supplemental cash flow information related to leases for the period presented is as follows:
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REVENUE RECOGNITION |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue RecognitionDeferred franchise fee revenue included in other liabilities consist primarily of franchise fees which are recognized straight-line over the life of the agreements, and area development fees which are deferred until a new restaurant is opened pursuant to the agreement. The following table illustrates estimated revenues expected to be recognized in the future related to unsatisfied performance obligations as of July 3, 2022:
The following table reflects the change in contract liabilities between January 2, 2022 and July 3, 2022:
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STOCK-BASED COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-based Compensation Effective May 5, 2015, the Company adopted the 2015 Equity Plan (the “2015 Plan”), pursuant to which it may grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and other stock and cash awards to eligible participants. The number of common stock reserved for issuance is 2,000,000. The Company also maintains an Amended and Restated 2005 Stock Incentive Plan (the “2005 Plan”). The 2005 Plan expired in 2015 and no additional options may be granted. Nonetheless, the 2005 Plan will remain in effect until all outstanding incentives granted thereunder have either been satisfied or terminated. As of July 3, 2022, there were 474,909 shares available for grant pursuant to the 2015 Plan. Stock options granted to employees and directors generally vest over to four years, in monthly or annual installments, as outlined in each agreement. Options generally expire ten years from the date of grant. Compensation expense equal to the grant date fair value of the options is recognized in general and administrative expense over the applicable service period. The Company utilizes the Black-Scholes option pricing model when determining the compensation cost associated with stock options issued using the following significant assumptions: •Stock price – Published trading market values of the Company’s common stock as of the date of grant. •Exercise price – The stated exercise price of the stock option. •Expected life – The simplified method as outlined in ASC 718. •Expected dividend – The rate of dividends that the Company expects to pay over the term of the stock option. •Volatility – Actual volatility over the most recent historical period equivalent to the expected life of the option. •Risk-free interest rate – The daily United States Treasury yield curve rate. The Company recognized stock-based compensation expense in its consolidated statements of operations for the three and six months ended July 3, 2022, and July 4, 2021, respectively, as follows:
Information regarding the Company’s stock options is summarized below:
Information regarding the Company’s restricted stock and restricted stock units is summarized below:
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SHAREHOLDERS' EQUITY |
6 Months Ended |
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Jul. 03, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ EquityOn June 24, 2021, the Company entered into two separate Securities Purchase Agreements (each, a “Securities Purchase Agreement”) with institutional investors pursuant to which the Company raised (i) gross proceeds of $10,000,000, pursuant to an agreement to sell 800,000 shares of the Company’s common stock , and (ii) gross proceeds of $3,000,000 pursuant to an agreement to sell 200,000 shares of the Company’s common stock (such shares of common stock collectively referred to herein as the “Securities”, and the aggregate sale of 1,000,000 Securities referred to herein as the “Offering”). The Company used the net proceeds of the Offering for the VIBS Transaction described in Note 2 Restaurant Acquisitions found in our fiscal 2021 10-K filing. In connection with the closing of the Offering, the Company paid expenses of approximately of $572,000.As part of each Securities Purchase Agreement, the Company agreed to register the Securities sold in the Offering (the “Registrable Securities”) for resale or other disposition, pursuant to a Registration Rights Agreement with each investor (each, a “Registration Rights Agreement”). On August 4, 2021, the Company filed with the Securities and Exchange Commission (the “SEC”) a shelf registration statement with respect to the resale of the Registrable Securities. The shelf registration statement was declared effective by the SEC September 3, 2021. The Company agreed to keep the shelf registration statement effective until such time as all Registrable Securities may be sold pursuant to Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”) without the need for current public information or other restrictions. If the Company is unable to comply with any of the above covenants, it will be required to pay liquidated damages to the investors in the amount of 1% of the investors’ purchase price for every month until such non-compliance is cured (subject to a 6% cap), with such liquidated damages payable in cash. |
VARIABLE INTEREST ENTITIES |
6 Months Ended |
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Jul. 03, 2022 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Variable Interest Entities | Variable Interest Entities A variable interest holder is considered to be the primary beneficiary of a variable interest entity (“VIE”) if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Once an entity is determined to be a VIE, the primary beneficiary is required to consolidate the entity. On July 18, 2018, the Company and Clark Championship Products LLC (“Clark”), an entity owned by Travis Clark, became members of Mercury BBQ LLC (“Mercury”) for the purposes of building out and operating the inaugural Clark Crew BBQ restaurant in Oklahoma City, Oklahoma (the “Restaurant”). Clark owned 80% of the units outstanding of Mercury and the Company owned 20% of the units outstanding of Mercury. Also in July 2019, the Company entered into a secured promissory note with Mercury which was amended in October 2019. This promissory note as amended (the “Loan”) was in the amount of $3.9 million, the proceeds of which were required to be used for the build out of the Restaurant. The Loan bore interest at a rate of 8% per annum and required payments of 100% of the excess monthly cash flows until the Loan and all interest accrued thereon was repaid. The Loan required a balloon payment of unpaid principal and accrued interest on July 15, 2025 and could have been prepaid at any time. Also on July 18, 2018, the Company and Clark entered into an intellectual property license agreement (the “License Agreement”) pursuant to which Clark granted to the Company an exclusive license to use and sublicense the patents, trademarks, trade names, service marks, logos and designs related to Clark Crew BBQ restaurants and products. The term of the License Agreement was indefinite and could only be terminated by mutual written consent, unless the Company breached the License Agreement. Because the Company provided more than half of the subordinated financial support of Mercury and controlled Mercury via its representation on the board of managers, the Company concluded that Mercury was a VIE, of which the Company was the primary beneficiary and consolidated Mercury. On June 15, 2022, Clark purchased the Company's interests in Mercury and the License Agreement. As part of this transaction, Clark paid approximately $1.2 million for the equity interests, $250,000 for consulting services for the remainder of 2022, and paid off the remaining loan balance of approximately $2.8 million. The Company recorded a net gain on the disposition in Other Gain on its condensed consolidated statement of operations. The net gain recorded was approximately $850,000.
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LITIGATION |
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Jul. 03, 2022 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Litigation | LitigationIn the normal course of business, the Company is involved in a number of litigation matters that are incidental to the operation of the business. These matters generally include, among other things, matters with regard to employment, leases and general business-related issues. The Company currently believes that the resolution of any of these pending matters will not have a material adverse effect on its financial position or liquidity, but an adverse decision in more than one of the matters could be material to its consolidated results of operations. |
RELATED PARTY TRANSACTIONS |
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Related Party Transactions | Related Party Transactions Charles Davidson, a franchisee of the Company, currently serves as a director of the Company and is the beneficial owner of approximately 15.7% of the Company’s common stock as of the date that these financial statements were available to be issued, by virtue of his ownership interest in Wexford Capital. The following table outlines amounts received from related parties during the three and six months ended July 3, 2022, and July 4, 2021, respectively:
The following table outlines accounts receivable from related parties as of July 3, 2022 and January 2, 2022:
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BASIS OF PRESENTATION (Policies) |
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Jul. 03, 2022 | |
Accounting Policies [Abstract] | |
Basis of accounting policy | The accompanying condensed consolidated balance sheet as of January 2, 2022, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) Rules and Regulations. The information furnished in these condensed consolidated financial statements include normal recurring adjustments and reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited financial statements represent the condensed consolidated financial statements of the Company and its subsidiaries as of July 3, 2022 and January 2, 2022, and for the three and six months ended July 3, 2022 and July 4, 2021. The results for the three and six months ended July 3, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in BBQ Holdings, Inc.’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022 as filed with the SEC on March 16, 2022. |
BASIS OF PRESENTATION (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation from statutory tax rate to effective tax rate | The following table presents the Company’s effective tax rates for the periods presented:
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Schedule of reconciliation of basic and diluted net income per common share | The following table is a reconciliation of basic and diluted net income per common share:
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RESTAURANT ACQUISITIONS (Tables) |
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Schedule of allocation of assets acquired and liabilities assumed |
The following table presents the allocation of assets acquired and liabilities assumed for the Barrio Queen Transaction:
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Schedule of pro forma information | For allocation of assets acquired and liabilities assumed regarding the Village Inn and Bakers Square and Tahoe Joe’s acquisitions see 10-K filed by the Company on March 16, 2022, and for provisional allocation of assets acquired and liabilities assumed regarding the Famous Craft Concepts acquisition, see 10-Q filed by the Company on May 12, 2022.
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PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) |
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Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consisted of the following at:
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PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET (Tables) |
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Schedule of property, equipment, and leasehold improvements, net | Property, equipment and leasehold improvements, net, consisted of the following:
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GOODWILL (Tables) |
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Business Combination, Goodwill [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | The change in the Company's goodwill balance is as follows for the six months ended July 3, 2022 and July 4, 2021:
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INTANGIBLE ASSETS, NET (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of intangible assets | Intangible assets consisted of the following:
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OTHER CURRENT LIABILITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other current liabilities | Other current liabilities consisted of the following at:
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LONG-TERM DEBT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | Debt outstanding consisted of the following as of the periods presented:
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LEASES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of lease cost | The components of lease expense for the period presented is as follows:
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Schedule of supplemental cash flow information of leases | Supplemental cash flow information related to leases for the period presented is as follows:
|
REVENUE RECOGNITION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated revenues expected to be recognized in the future related to unsatisfied performance obligations | The following table illustrates estimated revenues expected to be recognized in the future related to unsatisfied performance obligations as of July 3, 2022:
|
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Schedule of change in contract liabilities | The following table reflects the change in contract liabilities between January 2, 2022 and July 3, 2022:
|
STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of recognized stock-based compensation expense | The Company recognized stock-based compensation expense in its consolidated statements of operations for the three and six months ended July 3, 2022, and July 4, 2021, respectively, as follows:
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Schedule of stock option activity | Information regarding the Company’s stock options is summarized below:
|
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Schedule of stock option valuation assumptions |
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Schedule of unvested restricted stock activity | Information regarding the Company’s restricted stock and restricted stock units is summarized below:
|
RELATED PARTY TRANSACTIONS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of related party transactions | The following table outlines amounts received from related parties during the three and six months ended July 3, 2022, and July 4, 2021, respectively:
The following table outlines accounts receivable from related parties as of July 3, 2022 and January 2, 2022:
|
BASIS OF PRESENTATION - Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 03, 2022 |
Jul. 04, 2021 |
Jul. 03, 2022 |
Jul. 04, 2021 |
Jan. 02, 2022 |
|
Accounting Policies [Abstract] | |||||
Deferred tax asset, net | $ 2.9 | $ 2.9 | $ 3.7 | ||
Effective tax rate | 19.10% | 2.40% | 13.40% | 2.70% |
BASIS OF PRESENTATION - Restricted cash and marketing fund (Details) - USD ($) $ in Thousands |
Jul. 03, 2022 |
Jan. 02, 2022 |
---|---|---|
Restricted Cash [Abstract] | ||
Restricted cash | $ 679 | $ 1,152 |
BASIS OF PRESENTATION - Net income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2022 |
Jul. 04, 2021 |
Jul. 03, 2022 |
Jul. 04, 2021 |
|
Net income per share – basic: | ||||
Net income attributable to shareholders | $ 4,179 | $ 15,786 | $ 4,946 | $ 16,585 |
Basic weighted average shares outstanding (shares) | 10,756,000 | 9,304,000 | 10,654,000 | 9,256,000 |
Basic net income per share (dollars per share) | $ 0.39 | $ 1.70 | $ 0.46 | $ 1.79 |
Net income per share – diluted: | ||||
Net income attributable to shareholders | $ 4,179 | $ 15,786 | $ 4,946 | $ 16,585 |
Diluted weighted average shares outstanding (shares) | 10,853,000 | 9,615,000 | 10,755,000 | 9,567,000 |
Diluted net income per share (dollars per share) | $ 0.39 | $ 1.64 | $ 0.46 | $ 1.73 |
Anti-dilutive shares excluded from computation of diluted net income per share (shares) | 95,250 | 250 |
RESTAURANT ACQUISITIONS - Schedule of Pro Forma Information (Details) - Recent Business Acquisitions - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2022 |
Jul. 04, 2021 |
Jul. 03, 2022 |
Jul. 04, 2021 |
|
Pro Forma | ||||
Pro forma revenues | $ 80,722 | $ 71,957 | $ 156,323 | $ 135,714 |
Pro forma net income attributable to shareholders | $ 4,342 | $ 18,403 | $ 7,364 | $ 21,820 |
Basic pro forma net income per share attributable to shareholders (dollars per share) | $ 0.40 | $ 1.98 | $ 0.69 | $ 2.36 |
Diluted pro forma net income per share attributable to shareholders (dollars per share) | $ 0.40 | $ 1.91 | $ 0.68 | $ 2.28 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands |
Jul. 03, 2022 |
Jan. 02, 2022 |
---|---|---|
Prepaid expenses and other current assets | ||
Prepaid expenses and deferred costs | $ 1,999 | $ 2,241 |
Prepaid rent | 1,321 | 1,384 |
Prepaid insurance | 574 | 257 |
Other prepaid expenses | 45 | 37 |
Prepaid expenses and other current assets | $ 3,939 | $ 3,919 |
PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET (Details) - USD ($) $ in Thousands |
Jul. 03, 2022 |
Jan. 02, 2022 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Land, buildings, and improvements | $ 44,222 | $ 39,632 |
Furniture, fixtures, equipment and software | 37,513 | 33,565 |
Décor | 434 | 434 |
Construction in progress | 1,280 | 0 |
Accumulated depreciation and amortization | (35,828) | (33,688) |
Property, equipment and leasehold improvements, net | $ 47,621 | $ 39,943 |
GOODWILL (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jul. 03, 2022 |
Jul. 04, 2021 |
|
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 3,037,000 | $ 601,000 |
Acquisitions during the period | 18,147,000 | 0 |
Balance, end of period | $ 21,184,000 | $ 601,000 |
INTANGIBLE ASSETS, NET - Carrying Amounts (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jul. 03, 2022 |
Jan. 02, 2022 |
|
Intangible assets | ||
Intangible assets, net | $ 30,383 | $ 23,444 |
Liquor licenses | ||
Intangible assets | ||
Indefinite lived assets | 974 | 1,018 |
Trademark/Logos/Patents | ||
Intangible assets | ||
Indefinite lived assets | $ 18,522 | 11,233 |
Franchise rights, net | ||
Intangible assets | ||
Intangible asset useful life | 10 years | |
Finite lived intangible assets, net | $ 10,836 | 11,104 |
Database | ||
Intangible assets | ||
Finite lived intangible assets, net | $ 51 | $ 89 |
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands |
Jul. 03, 2022 |
Jan. 02, 2022 |
---|---|---|
Other current liabilities | ||
Sales tax payable and state income tax payable | $ 2,054 | $ 1,657 |
Other accrued expense | 1,486 | 3,613 |
Accrued real estate taxes | 2,380 | 2,170 |
Accrued interest | 9 | 26 |
Accrued utilities | 597 | 560 |
Other current liabilities | 8,248 | 8,510 |
Deferred revenue | ||
Other current liabilities | ||
Deferred revenue | 1,607 | 366 |
Deferred franchise fees | ||
Other current liabilities | ||
Deferred revenue | $ 115 | $ 118 |
LONG-TERM DEBT - Narrative (Details) - Credit Agreement |
Apr. 11, 2022
USD ($)
|
Nov. 23, 2021
USD ($)
|
---|---|---|
Long-term debt | ||
Facility term | 5 years | 5 years |
Maximum amount of aggregate capital expenditures allowed during a fiscal year per the terms of the credit agreement | $ 10,000,000 | |
Revolving line of credit | ||
Long-term debt | ||
Maximum borrowing capacity | 25,000,000 | $ 5,000,000 |
Letters of credit | ||
Long-term debt | ||
Maximum borrowing capacity | 1,000,000 | |
Term loan | ||
Long-term debt | ||
Term loan | $ 25,000,000 | $ 15,000,000 |
Minimum | ||
Long-term debt | ||
Fixed charge coverage ratio | 1.1 | |
Minimum | SOFR | ||
Long-term debt | ||
Basis spread on variable rate | 1.75% | |
Maximum | ||
Long-term debt | ||
Rent adjusted leverage ratio | 4.5 | |
Maximum | SOFR | ||
Long-term debt | ||
Basis spread on variable rate | 2.25% |
LONG-TERM DEBT - Long-Term Debt - Components (Details) - USD ($) $ in Thousands |
Jul. 03, 2022 |
Jan. 02, 2022 |
---|---|---|
Long-term debt | ||
Less: deferred financing costs | $ (237) | $ (209) |
Less: current portion of long-term debt | (1,875) | (1,594) |
Long-term debt, less current portion | 22,419 | 13,197 |
Credit Agreement | ||
Long-term debt | ||
Term Loan | $ 24,531 | $ 15,000 |
LEASES - Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2022 |
Jul. 04, 2021 |
Jul. 03, 2022 |
Jul. 04, 2021 |
|
Lease expense | ||||
Operating lease cost | $ 4,256 | $ 2,527 | $ 7,998 | $ 4,969 |
Short-term lease cost | 129 | 166 | 257 | 262 |
Variable lease cost | 213 | 130 | 429 | 498 |
Sublease income | (46) | (30) | (100) | (74) |
Total lease cost | $ 4,552 | $ 2,793 | $ 8,584 | $ 5,655 |
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jul. 03, 2022 |
Jul. 04, 2021 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 8,602 | $ 4,517 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 26,429 | $ 1,163 |
Weighted-average remaining lease term of operating leases (in years) | 8 years 2 months 12 days | 10 years |
Weighted-average discount rate of operating leases | 4.37% | 5.31% |
STOCK-BASED COMPENSATION - General Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 03, 2022 |
Jul. 04, 2021 |
Jul. 03, 2022 |
Jul. 04, 2021 |
Jun. 28, 2015 |
|
Stock-based compensation | |||||
Stock-based compensation expense | $ 636 | $ 320 | $ 1,020 | $ 638 | |
Equity Option | |||||
Stock-based compensation | |||||
Stock-based compensation expense | 79 | 94 | 166 | 183 | |
Restricted stock and restricted stock units | |||||
Stock-based compensation | |||||
Stock-based compensation expense | $ 557 | $ 226 | $ 854 | $ 455 | |
Employees and Directors | Equity Option | |||||
Stock-based compensation | |||||
Expiration period | 10 years | ||||
Employees and Directors | Minimum | Equity Option | |||||
Stock-based compensation | |||||
Vesting period | 2 years | ||||
Employees and Directors | Maximum | Equity Option | |||||
Stock-based compensation | |||||
Vesting period | 4 years | ||||
2015 Plan | |||||
Stock-based compensation | |||||
Shares authorized for issuance | 2,000,000 | ||||
Shares available for grant | 474,909 | 474,909 | |||
2005 Plan | |||||
Stock-based compensation | |||||
Shares available for grant | 0 | 0 |
STOCK-BASED COMPENSATION - Stock Options (Details) - $ / shares shares in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jul. 03, 2022 |
Jul. 04, 2021 |
Jan. 02, 2022 |
|
Number of Options | |||
Outstanding at beginning of period (shares) | 388 | ||
Exercised (shares) | (33) | ||
Canceled, forfeited, or expired (shares) | (24) | ||
Outstanding at end of period (shares) | 331 | 388 | |
Weighted Average Exercise Price | |||
Options outstanding at beginning of period (dollars per share) | $ 7.13 | ||
Exercised options (dollars per share) | 3.76 | ||
Canceled, forfeited, or expired (in dollars per share) | $ 11.83 | ||
Options outstanding at end of period (dollars per share) | $ 7.12 | $ 7.13 | |
Weighted Average Remaining Contractual Life in Years | |||
Options outstanding | 6 years 10 months 24 days | 7 years 3 months 18 days |
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jul. 03, 2022 |
Jul. 04, 2021 |
|
Valuation Assumptions | ||
Weighted-average fair value of options granted during the period (in dollars per share) | $ 0 | $ 5.17 |
Expected life (in years) | 4 years | |
Expected dividend | $ 0 | $ 0 |
Expected stock volatility | 0.00% | 71.12% |
Risk-free interest rate | 0.00% | 0.60% |
STOCK-BASED COMPENSATION - Restricted Stock (Details) - Restricted stock and restricted stock units - $ / shares shares in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Jul. 03, 2022 |
Jul. 03, 2022 |
Jan. 02, 2022 |
|
Number of Awards | |||
Unvested at beginning of period (shares) | 305 | ||
Granted (shares) | 246 | ||
Exercised/Released (shares) | (12) | ||
Canceled, forfeited, or expired (shares) | (9) | ||
Unvested at end of period (shares) | 530 | 530 | 305 |
Weighted Average Award Date Fair Value | |||
Unvested at beginning of period (dollars per share) | $ 5.75 | ||
Granted (dollars per share) | 13.88 | ||
Exercised/released (dollars per share) | 12.76 | ||
Canceled, forfeited, or expired (dollars per share) | 6.27 | ||
Unvested at end of period (dollars per share) | $ 9.33 | $ 9.33 | $ 5.75 |
Weighted Average Remaining Contractual Life in Years | |||
Weighted average remaining contractual life in years | 2 years 3 months 18 days | 2 years 1 month 6 days |
VARIABLE INTEREST ENTITIES (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Jun. 15, 2022 |
Jul. 18, 2018 |
Jul. 03, 2022 |
|
Mercury | |||
Variable Interest Entities | |||
Promissory note | $ 3,900,000 | ||
Interest rate on promissory note | 8.00% | ||
Percentage of excess cash flows to be used to repay note receivable | 100.00% | ||
Mercury | |||
Variable Interest Entities | |||
Ownership percentage in VIE | 20.00% | 20.00% | |
Gain on disposal | $ 850,000 | ||
Clark | Mercury | |||
Variable Interest Entities | |||
Payments to acquire interests | 1,200,000 | ||
Repayments of loan | 2,800,000 | ||
Payments for consulting services | $ 250,000 | ||
Clark | Mercury | |||
Variable Interest Entities | |||
Ownership percentage | 80.00% |
RELATED PARTY TRANSACTIONS (Details) - Beneficial Owner - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 03, 2022 |
Jul. 04, 2021 |
Jul. 03, 2022 |
Jul. 04, 2021 |
Jan. 02, 2022 |
|
Related Party Transactions | |||||
Revenues and NAF contributions - Charles Davidson | $ 199 | $ 179 | $ 366 | $ 316 | |
Accounts receivable, net - Charles Davidson | $ 77 | $ 77 | $ 64 | ||
Beneficial ownership percentage | 15.70% |
SUBSEQUENT EVENTS (Details) - Aug. 09, 2022 - Subsequent Event - BBQ Holdings Inc - MTY Food Group Inc. $ / shares in Units, $ in Thousands, $ in Thousands |
USD ($)
$ / shares
|
CAD ($) |
---|---|---|
Subsequent Event [Line Items] | ||
Common shares price (dollars per share) | $ 17.25 | |
Total consideration transferred | $ 200,000 | $ 256,000 |
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