Stock-Based Compensation

3 Months Ended

Mar. 28, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

In connection with the approval of the Business Combination, the Del Taco Restaurants, Inc. 2015 Omnibus Incentive Plan (the “2015 Plan”) was approved by shareholders to offer eligible employees, directors and consultants cash and stock-based incentive awards. Awards under the 2015 Plan are generally not restricted to any specific form or structure and could include, without limitation, stock options, stock appreciation rights, restricted stock, other stock-based awards, other cash-based compensation and performance awards. Under the plan, there were 3,300,000 shares of common stock reserved and authorized. At March 28, 2017, there were 1,638,028 shares of common stock available for grant under the 2015 Plan.

Stock-Based Compensation Expense

The total compensation expense related to the 2015 Plan was $1.1 million and $0.7 million for the twelve weeks ended March 28, 2017 and March 22, 2016, respectively.

Restricted Stock Awards

A summary of outstanding and unvested restricted stock activity as of March 28, 2017 and changes during the period January 3, 2017 through March 28, 2017 are as follows:

	Shares		Weighted-Average Grant Date Fair Value
Nonvested at January 3, 2017	1,133,822		$	10.40
Granted	30,000		14.55
Vested	(11,250	)	10.64
Forfeited	—		—
Nonvested at March 28, 2017	1,152,572		$	10.50

During the twelve weeks ended March 28, 2017, the Company made payments of $0.1 million related to tax withholding obligations for the vesting of restricted stock awards in exchange for 4,686 shares withheld. As of March 28, 2017, there was$8.7 million of unrecognized expense, net of estimated forfeitures, related to restricted stock which is expected to be recognized over a weighted-average remaining period of 2.4 years. The fair value of these awards was determined based on the Company’s stock price on the grant date.

Stock Options

A summary of stock option activity as of March 28, 2017 and changes during the period January 3, 2017 through March 28, 2017 are as follows:

	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
					(in years)
Options outstanding at January 3, 2017	334,500		$	9.94	6.1	$	1,464
Granted	5,000		14.55
Exercised	—		—
Forfeited	(1,500	)	10.40
Options outstanding at March 28, 2017	338,000		$	10.01	5.9	$	1,042
Options exercisable at March 28, 2017	54,500		$	10.38	5.7	$	146
Options exercisable and expected to vest at March 28, 2017	315,444		$	10.02	5.9	$	970

The aggregate intrinsic value in the table above is the amount by which the current market price of the Company's stock exceeds the exercise price on January 3, 2017 and March 28, 2017, respectively.

As of March 28, 2017, there was $0.7 million of unrecognized stock compensation expense, net of estimated forfeitures, related to stock option grants which is expected to be recognized over a weighted-average remaining period of 2.7 years.