(14) Stock-Based Employee Compensation

2012 Long-Term Equity Incentive Plan

In connection with the IPO, we adopted the 2012 Plan, which allows our Board of Directors or a committee thereof to grant stock options, restricted stock, restricted stock units, deferred stock units and other equity-based awards to directors, officers, key employees and other key individuals performing services for us. The 2012 Plan provides for granting of options to purchase shares of common stock at an exercise price not less than the fair value of the stock on the date of grant. Outstanding stock options vest at various periods ranging from one to four years from date of grant. Outstanding shares of restricted stock vest over periods ranging from one to four years. The 2012 Plan has 2,232,800 shares authorized for issuance under the plan. There are 927,675 shares of common stock issuable upon exercise of currently outstanding options, 145,519 outstanding shares of restricted stock, and 200,000 outstanding performance stock units at December 27, 2016. There are 519,080 shares available for future grants.

The following table details our total stock based compensation costs during the fiscal years ended December 27, 2016, December 29, 2015 and December 30, 2014, as well as where the costs were expensed:



	Fiscal Year Ended
	December 27,		December 29,		December 30,
	2016		2015		2014
	(in thousands)
Restaurant operating expenses	$	361	$	468	$	442
General and administrative costs		2,305		2,432		2,125
Total stock compensation cost	$	2,666	$	2,900	$	2,567

The following table summarizes restricted stock activity during fiscal 2016:



	Fiscal Year Ended December 27, 2016
	Shares		Weighted average grant date fair value		Aggregate intrinsic value ($000's)
Outstanding at beginning of period		90,379	$	19.96
Granted		154,957		16.54
Vested		(38,701)		19.72
Forfeited		(61,116)		17.22
Outstanding at end of period		145,519	$	17.55	$	2,539

As of December 27, 2016, there was $1.7 million of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a period of approximately 2.7 years.

The following table summarizes stock option activity during fiscal 2016:



	Fiscal Year Ended December 27, 2016
	Shares		Weighted average exercise price		Weighted average remaining contractual term		Aggregate intrinsic value ($000's)
Outstanding at beginning of period		1,221,100	$	17.44
Exercised		(228,800)		13.00
Forfeited		(64,625)		20.50
Outstanding at end of period		927,675	$	18.33		6.2 years	$	1,455
Options exercisable at end of period		776,050	$	17.76		6.1 years	$	1,448

The intrinsic value of options exercised during fiscal 2016 was $1.1 million. A summary of the status of non-vested stock options as of December 27, 2016 and changes during fiscal 2016 is presented below:



	Fiscal Year Ended
	December 27, 2016
	Shares	Weighted average grant-date fair value
Non-vested stock options at beginning of period	506,500	$	7.25
Vested	(316,250)		6.60
Forfeited	(38,625)		7.92
Non-vested stock options at end of period	151,625	$	8.44

As of December 27, 2016, there was $0.7 million of total unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a period of approximately 0.7 years. The total fair value of stock options vested during fiscal 2016 was $2.1 million.

We issue performance share units, or PSUs, to certain employees that represent shares potentially issuable in the future. During fiscal 2016, we granted 200,000 PSUs to our CEO. The issuance of these shares is based upon our stock price reaching $28.00 per share for five consecutive days and is subject to post vesting holding periods. The fair value of performance share units was calculated using a Monte Carlo simulation model, which requires the use of highly subjective and complex assumptions, including the expected life of the award, the price volatility of the underlying stock and a blended illiquidity discount of 16.9%. The following table summarizes performance stock unit activity during fiscal 2016:



	Fiscal Year Ended December 27, 2016
	Shares		Weighted average grant date fair value		Aggregate intrinsic value ($000's)
Outstanding at beginning of period		—	$	—
Granted		200,000		8.98
Outstanding at end of period		200,000	$	8.98	$	1,892

The expense recognized each period is dependent on our estimate of the number of shares that will ultimately be issued. As of December 27, 2016 there was $1.7 million of total unrecognized compensation cost related to non-vested performance stock units. This cost is expected to be recognized over a period of approximately 2.1 years.

The following table details the values from and assumptions for the Monte Carlo PSU pricing model for PSUs granted during the fiscal 2016.



	2016
Weighted average grant date fair value		$8.98
Weighted average risk-free interest rate		1.98%
Derived service period		2.2 years
Weighted average volatility		34.41%
Expected dividend		—