Stock-Based Compensation

6 Months Ended

Jun. 16, 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 June 16, 2020, there were 638,565 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 $1.4 million and $1.7 million for the twelve weeks ended June 16, 2020 and June 18, 2019, respectively, and $2.6 million and $3.3 million for the twenty-four weeks ended June 16, 2020 and June 18, 2019, respectively.

Restricted Stock Awards

A summary of outstanding and unvested restricted stock activity as of June 16, 2020 and changes during the period from December 31, 2019 through June 16, 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	(77,641)	11.09
Forfeited	(68,750)	12.83
Nonvested at June 16, 2020	1,136,827	$	12.42

For both the twenty-four weeks ended June 16, 2020 and June 18, 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 June 16, 2020, there was $7.5 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 2.3 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 June 16, 2020 and changes during the period from December 31, 2019 through June 16, 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	(46,500)	11.70
Options outstanding at June 16, 2020	421,250	$	11.22	3.8	$	—
Options exercisable at June 16, 2020	249,498	$	11.04	2.8	$	—
Options exercisable and expected to vest at June 16, 2020	392,662	$	11.28	3.6	$	—

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 June 16, 2020 and December 31, 2019, respectively.

As of June 16, 2020, there was $0.3 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 2.1 years.