Stock-Based Compensation

9 Months Ended

Sep. 23, 2020

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

Stock-Based Compensation

3. STOCK-BASED COMPENSATION

At September 23, 2020, options to purchase 1,035,866 shares of common stock were outstanding, including 689,166 vested and 346,700 unvested. Unvested options vest over time; however, upon a change in control, the Board of Directors may accelerate vesting. At September 23, 2020, 303,786 premium options, options granted above the stock price at date of grant, remained outstanding. A summary of stock option activity as of September 23, 2020 and changes during the thirty-nine weeks ended September 23, 2020 is as follows:

		Weighted-Average
	Shares	Exercise Price
Outstanding - December 25, 2019	2,077,570	$	8.14
Exercised	(965,736)		6.05
Forfeited, cancelled or expired	(75,968)		12.14
Outstanding - September 23, 2020	1,035,866	$	9.79
Vested and expected to vest at September 23, 2020	1,030,329	$	9.78
Exercisable at September 23, 2020	689,166	$	8.98

At September 23, 2020, the Company had total unrecognized compensation expense of $1.1 million related to unvested stock options, which it expects to recognize over a weighted-average period of 2.23 years.

A summary of restricted share activity as of September 23, 2020 and changes during the thirty-nine weeks ended September 23, 2020 is as follows:

		Weighted-Average
	Shares	Fair Value
Unvested shares at December 25, 2019	588,008	$	11.23
Granted	415,022	$	12.50
Released	(154,620)	$	11.68
Forfeited, cancelled, or expired	(79,303)	$	12.20
Unvested shares at September 23, 2020	769,107	$	11.72

Unvested shares at September 23, 2020, included 684,971 unvested restricted shares, 36,058 unvested performance stock units and 48,078 unvested restricted units.

At September 23, 2020, the Company had unrecognized compensation expense of $7.3 million related to unvested restricted shares, which it expects to recognize over a weighted-average period of 3.01 years, unrecognized compensation expense of $0.1 million related to performance stock units, which it expects to recognize over a weighted-average period of 2.62 years and unrecognized compensation expense of $0.4 million related to unvested restricted units, which it expects to recognize over a weighted-average period of 1.62 years.

Total stock-based compensation expense was $0.9 million and $2.2 million for the thirteen and thirty-nine weeks ended September 23, 2020, respectively, and $0.7 million and $1.8 million for the thirteen and thirty-nine weeks ended September 25, 2019, respectively.