Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 01, 2019

Disclosure of Long Lived Assets Held-for-sale

Assets held for sale consisted of the following at each fiscal year-end (in thousands):



	January 1, 2019		January 2, 2018
Assets held for sale and leaseback	$	12,771	$	—
Other property and equipment held for sale	2,023		—
Assets held for sale	$	14,794	$	—

Schedule of Property and Equipment Estimated Useful Lives

Estimated useful lives for property and equipment are as follows:



Buildings		20–35 years
Leasehold improvements		Shorter of useful life (typically 20 years) or lease term
Buildings under capital leases		Shorter of useful life (typically 20 years) or lease term
Restaurant and other equipment		3–15 years

Property and equipment, net at January 1, 2019 and January 2, 2018 consisted of the following, excluding amounts related to properties classified as held for sale (in thousands):



	January 1, 2019			January 2, 2018
Land	$	1,929		$	9,800
Buildings	4,335			2,325
Restaurant and other equipment	87,767			74,075
Leasehold improvements	121,409			100,192
Buildings under capital leases	3,390			4,625
Restaurant property leased to others	991			3,090
Construction-in-progress	10,697			11,905
	230,518			206,012
Less: Accumulated depreciation	(69,089		)	(49,888		)
Property and Equipment, Net	$	161,429		$	156,124

Estimated Future Amortization for Lease Liabilities

The estimated future amortization for unfavorable lease liabilities for the next five fiscal years is as follows (in thousands):



	Unfavorable Lease Liabilities
2019	$	1,996
2020	1,854
2021	1,571
2022	1,422
2023	1,133

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

Deferred franchise fees are recognized straight-line over the term of the underlying agreement and the amount expected to be recognized in franchise revenue for amounts in deferred franchise fees as of January 1, 2019 is as follows (in thousands):



FY 2019	$	87
FY 2020	83
FY 2021	81
FY 2022	80
FY 2023	77
Thereafter	962
Total Deferred Franchise Fees	$	1,370

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following tables reflect the impact of the adoption of Topic 606 on the Company's consolidated balance sheet as of January 1, 2019 and on the Company's consolidated statements of comprehensive income and cash flows from operating activities for the fifty-two weeks ended January 1, 2019 and the amounts as if Topic 605 was in effect ("Amounts Under Previous Standards") (in thousands):



	January 1, 2019
	As Reported		Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	19,877	$	—		$	19,877
Other accrued liabilities	34,785		—			34,785
Current portion of capital lease obligations and deemed landlord financing liabilities	1,033		—			1,033
Total current liabilities	55,695		—			55,695
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net	178,664		—			178,664
Deferred income taxes	69,471		370			69,841
Other non-current liabilities	32,852		(1,369		)	31,483
Total liabilities	336,682		(999		)	335,683
Shareholders’ equity:
Preferred stock	—		—			—
Common stock	4		—			4
Additional paid-in capital	336,941		—			336,941
Accumulated other comprehensive income	180		—			180
Retained earnings	85,149		999			86,148
Total shareholders’ equity	422,274		999			423,273
Total liabilities and shareholders’ equity	$	758,956	$	—		$	758,956



	52 Weeks Ended January 1, 2019
	As Reported			Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Revenue:
Company restaurant sales	$	471,193		$	—		$	471,193
Franchise revenue	17,569			(370		)	17,199
Franchise advertising contributions	13,300			(13,300		)	—
Franchise sublease and other income	3,428			(312		)	3,116
Total revenue	505,490			(13,982		)	491,508
Operating expenses:
Restaurant operating expenses:
Food and paper costs	128,873			—			128,873
Labor and related expenses	151,954			—			151,954
Occupancy and other operating expenses	97,745			—			97,745
General and administrative	43,773			(770		)	43,003
Franchise advertising expenses	13,300			(13,300		)	—
Depreciation and amortization	25,794			—			25,794
Occupancy and other - franchise subleases and other	3,167			(312		)	2,855
Pre-opening costs	1,584			—			1,584
Impairment of long-lived assets	3,861			—			3,861
Restaurant closure charges, net	394			—			394
Loss on disposal of assets, net	1,012			—			1,012
Total operating expenses	471,457			(14,382		)	457,075
Income from operations	34,033			400			34,433
Other expense, net
Interest expense	9,075			—			9,075
Other income	(660		)	—			(660		)
Total other expense, net	8,415			—			8,415
Income from operations before provision for income taxes	25,618			400			26,018
Provision for income taxes	6,659			108			6,767
Net income	18,959			292			19,251
Other comprehensive income:
Change in fair value of interest rate cap, net of tax	122			—			122
Reclassification of interest rate cap amortization included in net income	44			—			44
Total other comprehensive income	166			—			166
Comprehensive income	$	19,125		$	292		$	19,417
Earnings per share:
Basic	$	0.50		$	0.01		$	0.51
Diluted	$	0.49		$	0.01		$	0.50



	52 Weeks Ended January 1, 2019
	As Reported			Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Operating activities
Net income	$	18,959		$	292		$	19,251
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts	45			—			45
Depreciation and amortization	25,794			—			25,794
Amortization of favorable and unfavorable lease assets and liabilities, net	(767		)	—			(767		)
Amortization of deferred financing costs and debt discount	445			—			445
Stock-based compensation	6,079			—			6,079
Impairment of long-lived assets	3,861			—			3,861
Deferred income taxes	1,097			108			1,205
Loss on disposal of assets, net	1,012			—			1,012
Restaurant closure charges	449			—			449
Other income	(523		)	—			(523		)
Changes in operating assets and liabilities:
Accounts and other receivables, net	616			—			616
Inventories	(220		)	—			(220		)
Prepaid expenses and other current assets	1,949			—			1,949
Other assets	(125		)	—			(125		)
Accounts payable	2			—			2
Other accrued liabilities	(488		)	—			(488		)
Other non-current liabilities	3,647			(400		)	3,247
Net cash provided by operating activities	$	61,832		$	—		$	61,832