Stock-Based Compensation

3 Months Ended

Mar. 24, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

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, restricted stock units, 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 24, 2020, there were 617,315 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 $1.2 million and $1.6 million for the twelve weeks ended March 24, 2020 and March 26, 2019, respectively.

Restricted Stock Awards

A summary of outstanding and unvested restricted stock activity as of March 24, 2020 and changes during the period from December 31, 2019 through March 24, 2020 are as follows:

	Shares	Weighted-Average Grant Date Fair Value
Nonvested at December 31, 2019	1,142,718	$	12.92
Granted	140,500	7.75
Vested	(35,625)	11.53
Forfeited	(67,750)	12.83
Nonvested at March 24, 2020	1,179,843	$	12.36

For both the twelve weeks ended March 24, 2020 and March 26, 2019, the Company made payments of $0.1 million related to tax withholding obligations for the vesting of restricted stock awards in exchange for 13,867 and 8,078 shares withheld, respectively. As of March 24, 2020, there was $8.4 million of unrecognized stock compensation expense, net of estimated forfeitures, related to restricted stock awards that 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 24, 2020 and changes during the period from December 31, 2019 through March 24, 2020 are as follows:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
				(in years)	(in thousands)
Options outstanding at December 31, 2019	412,750	$	11.71	3.8	$	—
Granted	55,000	7.93
Exercised	—	—
Forfeited/Expired	(26,250)	11.37
Options outstanding at March 24, 2020	441,500	$	11.26	4.1	$	—
Options exercisable at March 24,2020	257,248	$	11.04	3.2	$	—
Options exercisable and expected to vest at March 24, 2020	406,151	$	11.31	3.9	$	—

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 March 24, 2020 and December 31, 2019, respectively.

As of March 24, 2020, there was $0.4 million of unrecognized stock compensation expense, net of estimated forfeitures, related to stock option grants that is expected to be recognized over a weighted-average remaining period of 2.3 years.