Income Taxes

9 Months Ended

Sep. 27, 2022

Income Taxes

Income Taxes

(5) Income Taxes

A reconciliation of the statutory federal income tax rate to our effective tax rate for the 13 and 39 weeks ended September 27, 2022 and September 28, 2021 is as follows:

	13 Weeks Ended				39 Weeks Ended
	September 27, 2022		September 28, 2021		September 27, 2022		September 28, 2021
Tax at statutory federal rate	21.0	%	21.0	%	21.0	%	21.0	%
State and local tax, net of federal benefit	3.8		3.8		3.8		3.8
FICA tip tax credit	(9.6)		(10.5)		(10.1)		(9.2)
Work opportunity tax credit	(1.0)		(1.7)		(1.3)		(1.1)
Stock compensation	(0.2)		(1.2)		—		(1.7)
Net income attributable to noncontrolling interests	(0.3)		(0.5)		(0.4)		(0.5)
Officers compensation	0.8		0.8		0.6		0.9
Other	0.7		(0.1)		0.6		0.3
Total	15.2	%	11.6	%	14.2	%	13.5	%

For the 13 and 39 weeks ended September 27, 2022 and September 28, 2021, we recognized income tax expense using an estimated effective annual tax rate. Our effective tax rate was 15.2% and 14.2% for the 13 and 39 weeks ended September 27, 2022, respectively. Our effective tax rate was 11.6% and 13.5% for the 13 and 39 weeks ended September 28, 2021, respectively. The increase in our tax rate for the 13 weeks ended September 27, 2022 as compared to the prior year period was primarily driven by the lapping of favorable adjustments to FICA Tip and Work Opportunity tax credit benefits and a decrease in the tax benefit for stock compensation. The increase in our tax rate for the 39 weeks ended September 27, 2022 as compared to the prior year period was primarily driven by a decrease in the tax benefit for stock compensation partially offset by an increase in FICA Tip and Work Opportunity tax credits.