QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
x | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ | Smaller reporting company | ||
Emerging growth company |
Page | ||
PART I | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
June 29, 2019 | December 29, 2018 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash | |||||||
Accounts receivable, net | |||||||
Prepaid expenses and other current assets | |||||||
Advertising fund assets, restricted | |||||||
Total current assets | |||||||
Property and equipment, net | |||||||
Goodwill | |||||||
Trademarks | |||||||
Customer relationships, net | |||||||
Other non-current assets | |||||||
Total assets | $ | $ | |||||
Liabilities and stockholders' deficit | |||||||
Current liabilities | |||||||
Accounts payable | $ | $ | |||||
Other current liabilities | |||||||
Current portion of debt | |||||||
Advertising fund liabilities | |||||||
Total current liabilities | |||||||
Long-term debt, net | |||||||
Deferred revenues, net of current | |||||||
Deferred income tax liabilities, net | |||||||
Other non-current liabilities | |||||||
Total liabilities | |||||||
Commitments and contingencies (see Note 8) | |||||||
Stockholders' deficit | |||||||
Common stock, $0.01 par value; 100,000,000 shares authorized; 29,442,728 and 29,296,939 shares issued and outstanding as of June 29, 2019 and December 29, 2018, respectively | |||||||
Additional paid-in-capital | |||||||
Accumulated deficit | ( | ) | ( | ) | |||
Total stockholders' deficit | ( | ) | ( | ) | |||
Total liabilities and stockholders' deficit | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||
Revenue: | |||||||||||||||
Royalty revenue, franchise fees and other | $ | $ | $ | $ | |||||||||||
Advertising fees and related income | |||||||||||||||
Company-owned restaurant sales | |||||||||||||||
Total revenue | |||||||||||||||
Costs and expenses: | |||||||||||||||
Cost of sales (1) | |||||||||||||||
Advertising expenses | |||||||||||||||
Selling, general and administrative | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Total costs and expenses | |||||||||||||||
Operating income | |||||||||||||||
Interest expense, net | |||||||||||||||
Income before income tax expense | |||||||||||||||
Income tax expense | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Earnings per share | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
Weighted average shares outstanding | |||||||||||||||
Basic | |||||||||||||||
Diluted | |||||||||||||||
Dividends per share | $ | $ | $ | $ |
Common Stock | ||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Deficit | ||||||||||||||
Balance at December 30, 2017 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||
Net income | — | — | — | |||||||||||||||
Issuance of common stock, net | ( | ) | — | — | ||||||||||||||
Exercise of stock options | — | |||||||||||||||||
Tax payments for restricted stock upon vesting | ( | ) | — | — | ( | ) | ( | ) | ||||||||||
Stock-based compensation expense | — | — | — | |||||||||||||||
Dividends paid | — | — | ( | ) | ( | ) | ( | ) | ||||||||||
Balance at March 31, 2018 | ( | ) | ( | ) | ||||||||||||||
Net income | — | — | — | |||||||||||||||
Issuance of common stock, net | — | — | — | — | ||||||||||||||
Exercise of stock options | — | |||||||||||||||||
Stock-based compensation expense | — | — | — | |||||||||||||||
Dividends paid | — | — | ( | ) | ( | ) | ( | ) | ||||||||||
Balance at June 30, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||
Common Stock | ||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Deficit | ||||||||||||||
Balance at December 29, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||
Adjustment for ASC 842 adoption | — | — | — | |||||||||||||||
Net income | — | — | — | |||||||||||||||
Issuance of common stock, net | ( | ) | — | — | ||||||||||||||
Exercise of stock options | — | |||||||||||||||||
Tax payments for restricted stock upon vesting | ( | ) | — | — | ( | ) | ( | ) | ||||||||||
Stock-based compensation expense | — | — | — | |||||||||||||||
Dividends paid | — | — | ( | ) | ( | ) | ( | ) | ||||||||||
Balance at March 30, 2019 | ( | ) | ( | ) | ||||||||||||||
Net income | — | — | — | |||||||||||||||
Issuance of common stock, net | — | — | — | — | ||||||||||||||
Exercise of stock options | — | |||||||||||||||||
Tax payments for restricted stock upon vesting | ( | ) | — | — | ( | ) | ( | ) | ||||||||||
Stock-based compensation expense | — | — | — | |||||||||||||||
Dividends paid | — | — | ( | ) | ( | ) | ( | ) | ||||||||||
Balance at June 29, 2019 | $ | $ | $ | ( | ) | $ | ( | ) |
Twenty-Six Weeks Ended | |||||||
June 29, 2019 | June 30, 2018 | ||||||
Operating activities | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Deferred income taxes | ( | ) | ( | ) | |||
Stock-based compensation expense | |||||||
Amortization of debt issuance costs | |||||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | |||||||
Prepaid expenses and other assets | ( | ) | ( | ) | |||
Advertising fund assets and liabilities, net | ( | ) | |||||
Accounts payable and other current liabilities | ( | ) | |||||
Deferred revenue | ( | ) | |||||
Other non-current liabilities | ( | ) | |||||
Cash provided by operating activities | |||||||
Investing activities | |||||||
Purchases of property and equipment | ( | ) | ( | ) | |||
Acquisition of restaurant from franchisee | ( | ) | |||||
Cash used in investing activities | ( | ) | ( | ) | |||
Financing activities | |||||||
Proceeds from exercise of stock options | |||||||
Borrowings of long-term debt | |||||||
Repayments of long-term debt | ( | ) | ( | ) | |||
Payment of deferred financing costs | ( | ) | |||||
Tax payments for restricted stock upon vesting | ( | ) | ( | ) | |||
Dividends paid | ( | ) | ( | ) | |||
Cash used in financing activities | ( | ) | ( | ) | |||
Net change in cash, cash equivalents, and restricted cash | ( | ) | |||||
Cash, cash equivalents, and restricted cash at beginning of period | |||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ |
June 29, 2019 | December 29, 2018 | ||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash | |||||||
Restricted cash, included in Advertising fund assets, restricted | |||||||
Total cash, cash equivalents, and restricted cash | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||
Basic weighted average shares outstanding | |||||||||||
Dilutive shares | |||||||||||
Diluted weighted average shares outstanding |
Fair Value Hierarchy | June 29, 2019 | December 29, 2018 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
Securitized Financing Facility: | |||||||||||||||||
2018-1 Class A-2 Senior Secured Notes (1) | Level 2 | $ | $ | $ | $ |
Remainder of fiscal year 2019 | $ | ||
Fiscal year 2020 | |||
Fiscal year 2021 | |||
Fiscal year 2022 | |||
Fiscal year 2023 | |||
Total | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||
June 29, 2019 | June 29, 2019 | ||||||
Operating lease cost (a) | $ | $ | |||||
Variable lease cost (b) | |||||||
Total lease cost | $ | $ |
Twenty-Six Weeks Ended | |||
June 29, 2019 | |||
Operating cash flow information: | |||
Cash paid for amounts included in the measurement of lease liabilities | $ | ||
Non-cash activity: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ |
Balance Sheet Classification | June 29, 2019 | ||||
Right-of-use assets | Other non-current assets | $ | |||
Current lease liabilities | Other current liabilities | ||||
Non-current lease liabilities | Other non-current liabilities |
Twenty-Six Weeks Ended | ||
June 29, 2019 | ||
Weighted average remaining lease term of operating leases | ||
Weighted average discount rate of operating leases | % |
Remainder of fiscal year 2019 | $ | ||
Fiscal year 2020 | |||
Fiscal year 2021 | |||
Fiscal year 2022 | |||
Fiscal year 2023 | |||
Thereafter | |||
Total lease payments | |||
Less: imputed interest | ( | ) | |
Present value of lease liabilities | $ |
Fiscal year 2019 | $ | ||
Fiscal year 2020 | |||
Fiscal year 2021 | |||
Fiscal year 2022 | |||
Fiscal year 2023 | |||
Thereafter | |||
Total | $ |
Stock Options | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Term | |||||||||
Outstanding - December 29, 2018 | $ | $ | ||||||||||
Options granted | ||||||||||||
Options exercised | ( | ) | ||||||||||
Options canceled | ( | ) | ||||||||||
Outstanding - June 29, 2019 | $ | $ |
Restricted Stock Units | Weighted Average Grant Date Fair Value | Performance Stock Units | Weighted Average Grant Date Fair Value | ||||||||||
Outstanding - December 29, 2018 | $ | $ | |||||||||||
Units granted | |||||||||||||
Units vested | ( | ) | ( | ) | |||||||||
Units canceled | ( | ) | ( | ) | |||||||||
Outstanding - June 29, 2019 | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||
Revenue: | |||||||||||||||
Franchise segment | $ | $ | $ | $ | |||||||||||
Company segment | |||||||||||||||
Total segment revenue | $ | $ | $ | $ | |||||||||||
Segment Profit: | |||||||||||||||
Franchise segment | $ | $ | $ | $ | |||||||||||
Company segment | |||||||||||||||
Total segment profit | |||||||||||||||
Corporate and other (1) | |||||||||||||||
Interest expense, net | |||||||||||||||
Income before taxes | $ | $ | $ | $ |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||
Royalty revenue | $ | $ | $ | $ | |||||||||||
Advertising fees and related income | |||||||||||||||
Franchise fees |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||
Domestic Franchised Activity: | |||||||||||
Beginning of period | 1,112 | 1,021 | 1,095 | 1,004 | |||||||
Openings | 29 | 21 | 49 | 43 | |||||||
Closures | (2 | ) | — | (5 | ) | (4 | ) | ||||
Acquired by Company | — | (2 | ) | — | (3 | ) | |||||
Restaurants end of period | 1,139 | 1,040 | 1,139 | 1,040 | |||||||
Domestic Company-Owned Activity: | |||||||||||
Beginning of period | 29 | 24 | 29 | 23 | |||||||
Openings | — | — | — | — | |||||||
Closures | — | — | — | — | |||||||
Acquired from franchisees | — | 2 | — | 3 | |||||||
Restaurants end of period | 29 | 26 | 29 | 26 | |||||||
Total Domestic Restaurants | 1,168 | 1,066 | 1,168 | 1,066 | |||||||
International Franchised Activity: | |||||||||||
Beginning of period | 132 | 112 | 128 | 106 | |||||||
Openings | 5 | 10 | 11 | 16 | |||||||
Closures | (2 | ) | — | (4 | ) | — | |||||
Restaurants end of period | 135 | 122 | 135 | 122 | |||||||
Total System-wide Restaurants | 1,303 | 1,188 | 1,303 | 1,188 |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||
Number of system-wide restaurants open at end of period | 1,303 | 1,188 | 1,303 | 1,188 | |||||||||||
System-wide sales (1) | $ | 371,505 | $ | 304,858 | $ | 733,865 | $ | 617,838 | |||||||
Domestic restaurant AUV | $ | 1,189 | $ | 1,124 | $ | 1,189 | $ | 1,124 | |||||||
System-wide domestic same store sales growth | 12.8 | % | 4.3 | % | 9.9 | % | 6.8 | % | |||||||
Company-owned domestic same store sales growth | 13.8 | % | 3.5 | % | 9.1 | % | 7.7 | % | |||||||
Total revenue | $ | 48,562 | $ | 37,037 | $ | 96,615 | $ | 74,426 | |||||||
Net income | $ | 4,918 | $ | 6,839 | $ | 11,524 | $ | 13,007 | |||||||
Adjusted EBITDA (2) | $ | 13,549 | $ | 11,747 | $ | 27,435 | $ | 24,239 |
• | as a measurement of operating performance because they assist us in comparing the operating performance of our restaurants on a consistent basis, as they remove the impact of items not directly resulting from our core operations; |
• | for planning purposes, including the preparation of our internal annual operating budget and financial projections; |
• | to evaluate the performance and effectiveness of our operational strategies; |
• | to evaluate our capacity to fund capital expenditures and expand our business; and |
• | to calculate incentive compensation payments for our employees, including assessing performance under our annual incentive compensation plan and determining the vesting of performance-based equity awards. |
• | such measures do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; |
• | such measures do not reflect changes in, or cash requirements for, our working capital needs; |
• | such measures do not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt; |
• | such measures do not reflect our tax expense or the cash requirements to pay our taxes; |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and |
• | other companies in our industry may calculate such measures differently than we do, limiting their usefulness as comparative measures. |
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||
Net income | $ | 4,918 | $ | 6,839 | $ | 11,524 | $ | 13,007 | |||||||
Interest expense, net | 4,299 | 2,342 | 8,709 | 4,078 | |||||||||||
Income tax expense | 1,070 | 745 | 1,825 | 2,407 | |||||||||||
Depreciation and amortization | 1,335 | 1,079 | 2,611 | 2,029 | |||||||||||
EBITDA | $ | 11,622 | $ | 11,005 | $ | 24,669 | $ | 21,521 | |||||||
Additional adjustments: | |||||||||||||||
Transaction costs (a) | — | — | — | 1,462 | |||||||||||
Stock-based compensation expense (b) | 1,927 | 742 | 2,766 | 1,256 | |||||||||||
Adjusted EBITDA | $ | 13,549 | $ | 11,747 | $ | 27,435 | $ | 24,239 |
Thirteen Weeks Ended | Increase / (Decrease) | |||||||||||||
June 29, 2019 | June 30, 2018 | $ | % | |||||||||||
Revenue: | ||||||||||||||
Royalty revenue, franchise fees and other | $ | 21,187 | $ | 17,204 | $ | 3,983 | 23.2 | % | ||||||
Advertising fees and related income | 13,487 | 8,355 | 5,132 | 61.4 | % | |||||||||
Company-owned restaurant sales | 13,888 | 11,478 | 2,410 | 21.0 | % | |||||||||
Total revenue | 48,562 | 37,037 | 11,525 | 31.1 | % | |||||||||
Costs and expenses: | ||||||||||||||
Cost of sales (1) | 10,573 | 7,745 | 2,828 | 36.5 | % | |||||||||
Advertising expenses | 12,973 | 8,209 | 4,764 | 58.0 | % | |||||||||
Selling, general and administrative | 13,394 | 10,078 | 3,316 | 32.9 | % | |||||||||
Depreciation and amortization | 1,335 | 1,079 | 256 | 23.7 | % | |||||||||
Total costs and expenses | 38,275 | 27,111 | 11,164 | 41.2 | % | |||||||||
Operating income | 10,287 | 9,926 | 361 | 3.6 | % | |||||||||
Interest expense, net | 4,299 | 2,342 | 1,957 | 83.6 | % | |||||||||
Income before income tax expense | 5,988 | 7,584 | (1,596 | ) | (21.0 | )% | ||||||||
Income tax expense | 1,070 | 745 | 325 | 43.6 | % | |||||||||
Net income | $ | 4,918 | $ | 6,839 | $ | (1,921 | ) | (28.1 | )% |
Thirteen Weeks Ended | |||||||||||||
June 29, 2019 | June 30, 2018 | ||||||||||||
In dollars | As a % of company-owned restaurant sales | In dollars | As a % of company-owned restaurant sales | ||||||||||
Cost of sales: | |||||||||||||
Food, beverage and packaging costs | $ | 5,205 | 37.5 | % | $ | 3,696 | 32.2 | % | |||||
Labor costs | 3,193 | 23.0 | % | 2,549 | 22.2 | % | |||||||
Other restaurant operating expenses | 2,556 | 18.4 | % | 1,789 | 15.6 | % | |||||||
Vendor rebates | (381 | ) | (2.7 | )% | (289 | ) | (2.5 | )% | |||||
Total cost of sales | $ | 10,573 | 76.1 | % | $ | 7,745 | 67.5 | % |
Thirteen Weeks Ended | Increase / (Decrease) | |||||||||||||
June 29, 2019 | June 30, 2018 | $ | % | |||||||||||
Revenue: | ||||||||||||||
Franchise segment | $ | 34,674 | $ | 25,559 | $ | 9,115 | 35.7 | % | ||||||
Company segment | 13,888 | 11,478 | 2,410 | 21.0 | % | |||||||||
Total segment revenue | $ | 48,562 | $ | 37,037 | $ | 11,525 | 31.1 | % | ||||||
Segment Profit: | ||||||||||||||
Franchise segment | $ | 8,221 | $ | 7,175 | $ | 1,046 | 14.6 | % | ||||||
Company segment | 2,066 | 2,751 | (685 | ) | (24.9 | )% | ||||||||
Total segment profit | $ | 10,287 | $ | 9,926 | $ | 361 | 3.6 | % |
Twenty-Six Weeks Ended | Increase / (Decrease) | |||||||||||||
June 29, 2019 | June 30, 2018 | $ | % | |||||||||||
Revenue: | ||||||||||||||
Royalty revenue, franchise fees and other | $ | 42,515 | $ | 34,985 | $ | 7,530 | 21.5 | % | ||||||
Advertising fees and related income | 26,697 | 16,960 | 9,737 | 57.4 | % | |||||||||
Company-owned restaurant sales | 27,403 | 22,481 | 4,922 | 21.9 | % | |||||||||
Total revenue | 96,615 | 74,426 | 22,189 | 29.8 | % | |||||||||
Costs and expenses: | ||||||||||||||
Cost of sales (1) | 20,303 | 15,142 | 5,161 | 34.1 | % | |||||||||
Advertising expenses | 25,707 | 16,852 | 8,855 | 52.5 | % | |||||||||
Selling, general and administrative | 25,936 | 20,911 | 5,025 | 24.0 | % | |||||||||
Depreciation and amortization | 2,611 | 2,029 | 582 | 28.7 | % | |||||||||
Total costs and expenses | 74,557 | 54,934 | 19,623 | 35.7 | % | |||||||||
Operating income | 22,058 | 19,492 | 2,566 | 13.2 | % | |||||||||
Interest expense, net | 8,709 | 4,078 | 4,631 | 113.6 | % | |||||||||
Income before income tax expense | 13,349 | 15,414 | (2,065 | ) | (13.4 | )% | ||||||||
Income tax expense | 1,825 | 2,407 | (582 | ) | (24.2 | )% | ||||||||
Net income | $ | 11,524 | $ | 13,007 | $ | (1,483 | ) | (11.4 | )% |
Twenty-Six Weeks Ended | |||||||||||||
June 29, 2019 | June 30, 2018 | ||||||||||||
In dollars | As a % of company-owned restaurant sales | In dollars | As a % of company-owned restaurant sales | ||||||||||
Cost of sales: | |||||||||||||
Food, beverage and packaging costs | $ | 10,022 | 36.6 | % | $ | 7,380 | 32.8 | % | |||||
Labor costs | 6,217 | 22.7 | % | 4,934 | 21.9 | % | |||||||
Other restaurant operating expenses | 4,833 | 17.6 | % | 3,395 | 15.1 | % | |||||||
Vendor rebates | (769 | ) | (2.8 | )% | (567 | ) | (2.5 | )% | |||||
Total cost of sales | $ | 20,303 | 74.1 | % | $ | 15,142 | 67.4 | % |
Twenty-Six Weeks Ended | Increase / (Decrease) | |||||||||||||
June 29, 2019 | June 30, 2018 | $ | % | |||||||||||
Revenue: | ||||||||||||||
Franchise segment | $ | 69,212 | $ | 51,945 | $ | 17,267 | 33.2 | % | ||||||
Company segment | 27,403 | 22,481 | 4,922 | 21.9 | % | |||||||||
Total segment revenue | $ | 96,615 | $ | 74,426 | $ | 22,189 | 29.8 | % | ||||||
Segment Profit: | ||||||||||||||
Franchise segment | $ | 17,476 | $ | 15,562 | $ | 1,914 | 12.3 | % | ||||||
Company segment | 4,582 | 5,392 | (810 | ) | (15.0 | )% | ||||||||
Total segment profit | $ | 22,058 | $ | 20,954 | $ | 1,104 | 5.3 | % |
Twenty-Six Weeks Ended | |||||||
June 29, 2019 | June 30, 2018 | ||||||
Net cash provided by (used in): | |||||||
Operating activities | $ | 10,491 | $ | 17,545 | |||
Investing activities | (1,442 | ) | (7,307 | ) | |||
Financing activities | (6,782 | ) | (10,965 | ) | |||
Net change in cash and cash equivalents | $ | 2,267 | $ | (727 | ) |
• | our ability to effectively implement our growth strategy; |
• | risks associated with changes in food and supply costs; |
• | our relationships with, and the performance of, our franchisees, as well as actions by franchisees that could harm our business; |
• | our ability to identify, recruit and contract with a sufficient number of qualified franchisees; |
• | risks associated with food safety, food-borne illness and other health concerns; |
• | our ability to successfully expand into new markets; |
• | our ability to effectively compete within our industry; |
• | risks associated with interruptions in our supply chain; |
• | risks associated with our future performance and operating results falling below the expectations of securities analysts and investors; |
• | risks associated with data privacy, cyber security, and the use and implementation of information technology; |
• | risks associated with our increasing dependence on digital commerce platforms; |
• | uncertainty in the law with respect to the assignment of liabilities in the franchise business model; |
• | risks associated with litigation against us or our franchisees; |
• | our ability to successfully advertise and market our business; |
• | risks associated with changes in customer preferences and perceptions; |
• | our ability to comply with government regulations relating to food products and franchising, including increased costs associated with new or changing regulations; |
• | risks associated with the geographic concentration of our business; |
• | our ability to maintain adequate insurance coverage for our business; |
• | risks associated with damage to our reputation or lack of acceptance of our brand in existing or new markets; |
• | our ability to comply with the terms of our securitized debt financing and generate sufficient cash flows to satisfy our significant debt service obligations thereunder; |
• | our ability to attract and retain our executive officers and other key employees; and |
• | our ability to protect our intellectual property, including trademarks and trade secrets. |
Exhibit No. | Description |
3.1 | |
3.2 | |
10.1 | |
10.2† | |
31.1* | |
31.2* | |
32.1** | |
32.2** | |
101 INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
101 SCH* | Inline XBRL Taxonomy Extension Schema Document |
101 CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
101 DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
101 LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document |
101 PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
Wingstop Inc. | ||||
(Registrant) | ||||
Date: | August 1, 2019 | By: | /s/ Charles R. Morrison | |
Chairman and Chief Executive Officer | ||||
(Principal Executive Officer) | ||||
Date: | August 1, 2019 | By: | /s/ Michael J. Skipworth | |
Chief Financial Officer | ||||
(Principal Financial and Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Wingstop Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 1, 2019 |
By: | /s/ Charles R. Morrison |
Chairman and Chief Executive Officer | |
(Principal Executive Officer) | |
1. | I have reviewed this Quarterly Report on Form 10-Q of Wingstop Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 1, 2019 |
By: | /s/ Michael J. Skipworth |
Chief Financial Officer | |
(Principal Financial and Accounting Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | August 1, 2019 |
By: | /s/ Charles R. Morrison |
Chairman and Chief Executive Officer | |
(Principal Executive Officer) | |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | August 1, 2019 |
By: | /s/ Michael J. Skipworth |
Chief Financial Officer | |
(Principal Financial and Accounting Officer) | |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 29, 2019 |
Dec. 29, 2018 |
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Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 29,442,728 | 29,296,939 |
Common stock, shares outstanding | 29,442,728 | 29,296,939 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
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Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
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Revenue: | ||||||
Advertising fees and related income | $ 13,487 | $ 8,355 | $ 26,697 | $ 16,960 | ||
Total revenue | 48,562 | 37,037 | 96,615 | 74,426 | ||
Costs and expenses: | ||||||
Cost of sales (1) | [1] | 10,573 | 7,745 | 20,303 | 15,142 | |
Advertising expenses | 12,973 | 8,209 | 25,707 | 16,852 | ||
Selling, general and administrative | 13,394 | 10,078 | 25,936 | 20,911 | ||
Depreciation and amortization | 1,335 | 1,079 | 2,611 | 2,029 | ||
Total costs and expenses | 38,275 | 27,111 | 74,557 | 54,934 | ||
Operating income | 10,287 | 9,926 | 22,058 | 19,492 | ||
Interest expense, net | 4,299 | 2,342 | 8,709 | 4,078 | ||
Income before income tax expense | 5,988 | 7,584 | 13,349 | 15,414 | ||
Income tax expense | 1,070 | 745 | 1,825 | 2,407 | ||
Net income | $ 4,918 | $ 6,839 | $ 11,524 | $ 13,007 | ||
Earnings per share | ||||||
Basic | $ 0.17 | $ 0.23 | $ 0.39 | $ 0.45 | ||
Diluted | $ 0.17 | $ 0.23 | $ 0.39 | $ 0.44 | ||
Weighted average shares outstanding | ||||||
Basic | 29,418 | 29,230 | 29,377 | 29,173 | ||
Diluted | 29,667 | 29,528 | 29,650 | 29,509 | ||
Dividends per share | $ 0.09 | $ 0.07 | $ 0.18 | $ 3.31 | ||
Franchise | ||||||
Revenue: | ||||||
Royalty revenue, franchise fees and other | $ 21,187 | $ 17,204 | $ 42,515 | $ 34,985 | ||
Franchisor Owned Outlet | ||||||
Revenue: | ||||||
Total revenue | $ 13,888 | $ 11,478 | $ 27,403 | $ 22,481 | ||
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Basis of Presentation |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation Basis of Presentation Wingstop Inc., together with its consolidated subsidiaries (collectively, “Wingstop” or the “Company”), is in the business of franchising and operating Wingstop restaurants. As of June 29, 2019, 1,139 franchised restaurants were in operation domestically, and 135 franchised restaurants were in operation internationally. As of June 29, 2019, the Company owned and operated 29 restaurants. The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Consequently, financial information and disclosures normally included in financial statements prepared annually in accordance with accounting principles generally accepted in the United States have been condensed or omitted. Balance sheet amounts are as of June 29, 2019 and December 29, 2018 and operating results are for the thirteen and twenty-six weeks ended June 29, 2019 and June 30, 2018. In the Company’s opinion, all necessary adjustments have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018. The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2019 and 2018 have 52 weeks. Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash within the Consolidated Balance Sheets and the Consolidated Statements of Cash Flows as of June 29, 2019 and December 29, 2018 were as follows (in thousands):
Advertising Fund The Company administers the Wingstop Restaurants Advertising Fund (“Ad Fund”), for which a percentage of gross sales is collected from Wingstop restaurant franchisees and company-owned restaurants to be used for various forms of advertising for the Wingstop brand. Beginning in fiscal year 2019, the Ad Fund contribution collected from domestic Wingstop restaurant franchisees and company-owned restaurants increased from 3% to 4% of gross sales. The Company consolidates and reports all assets and liabilities of the Ad Fund as restricted assets and restricted liabilities of the Ad Fund within current assets and current liabilities, respectively, in the Consolidated Balance Sheets. Ad Fund contributions and expenditures are reported on a gross basis in the Consolidated Statements of Operations, which are largely offsetting and therefore do not impact our reported net income. Company-operated restaurants’ Ad Fund contributions, which were equal to 4% of gross sales for the twenty-six weeks ended June 29, 2019 and 3% of gross sales for the twenty-six weeks ended June 30, 2018, are included in cost of sales in the Consolidated Statements of Operations. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new guidance also requires additional disclosures about leases. The Company adopted the requirements of the new standard as of the first day of fiscal year 2019 using the modified retrospective approach without restating comparative periods. As part of our adoption, we elected the package of practical expedients, as well as the hindsight practical expedient, permitted under the new guidance, which, among other things, allowed the Company to continue utilizing historical classification of leases. In addition, we elected not to separate non-lease components for our real estate leases. The adoption of the new standard resulted in the recording of a right-of-use asset of approximately $8.5 million and lease liabilities of approximately $10.3 million, and had an immaterial impact on retained earnings as of the beginning of fiscal year 2019. The standard did not materially impact our Consolidated Statements of Operations and had no impact on cash flows.
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Earnings per Share (Notes) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities convertible into or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of the exercise and vesting of stock options and restricted stock units, respectively, determined using the treasury stock method. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):
For the thirteen weeks ended June 29, 2019 and June 30, 2018, equity awards representing approximately 6,000 and 2,000 shares, respectively, were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive. For the twenty-six weeks ended June 29, 2019 and June 30, 2018, equity awards representing approximately 18,000 and 13,000 shares, respectively, were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive.
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Dividends (Notes) |
6 Months Ended |
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Jun. 29, 2019 | |
Dividends [Abstract] | |
Dividends Disclosure [Text Block] | Dividends In each of the first two quarters of 2019, the Company’s Board of Directors declared a quarterly dividend of $0.09 per share of common stock, which, in the aggregate, totaled $5.2 million, or $0.18 per share of common stock, paid during the twenty-six weeks ended June 29, 2019. Subsequent to the end of the second quarter, on July 31, 2019, the Company’s Board of Directors declared a quarterly dividend of $0.11 per share of common stock for stockholders of record as of August 30, 2019, to be paid on September 13, 2019, totaling approximately $3.2 million.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. Assets and liabilities are classified using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows: Level 1 — Unadjusted quoted prices for identical instruments traded in active markets. Level 2 — Observable market-based inputs or unobservable inputs corroborated by market data. Level 3 — Unobservable inputs reflecting management’s estimates and assumptions. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to their short-term nature. Fair value of debt is determined on a non-recurring basis, which results are summarized as follows (in thousands):
(1) The fair value of long-term debt was estimated using available market information. The Company also measures certain non-financial assets (primarily long-lived assets, intangible assets, and goodwill) at fair value on a non-recurring basis in connection with its periodic evaluations of such assets for potential impairment.
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Income Taxes |
6 Months Ended |
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Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense and the effective tax rate were $1.1 million and 17.9%, respectively, for the thirteen weeks ended June 29, 2019, and $0.7 million and 9.8%, respectively, for the thirteen weeks ended June 30, 2018. Income tax expense and the effective tax rate were $1.8 million and 13.7%, respectively, for the twenty-six weeks ended June 29, 2019, and $2.4 million and 15.6%, respectively, for the twenty-six weeks ended June 30, 2018. Income tax expense for the thirteen and twenty-six weeks ended June 29, 2019 includes $0.6 million and $1.8 million, respectively, in tax benefits resulting from the recognition of excess tax benefits from stock-based compensation, compared to $1.2 million and $1.5 million of tax benefits recognized in the thirteen and twenty-six weeks ended June 30, 2018, respectively.
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Debt Obligations |
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Jun. 29, 2019 | |||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Debt Obligations | Debt Obligations On November 14, 2018, Wingstop Funding LLC (the “Issuer”), a limited-purpose, bankruptcy-remote, wholly owned indirect subsidiary of Wingstop Inc., issued $320 million of its Series 2018-1 4.970% Fixed Rate Senior Secured Notes, Class A-2 (the “Class A-2 Notes”). Interest and principal are payable on a quarterly basis, and the Class A-2 Notes have an anticipated repayment date of December 2023. In addition, the Issuer issued Series 2018-1 Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”), which permit borrowings of up to a maximum principal amount of $20 million, which may be used to issue letters of credit. As of June 29, 2019, $4.0 million of letters of credit were outstanding against the Variable Funding Notes, which relate primarily to interest reserves required under the base indenture and related supplemental indenture. There were no amounts drawn down on the letter of credit as of June 29, 2019 or December 29, 2018. The Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “Notes” and were issued in a securitization transaction pursuant to which certain of the Company’s domestic and foreign revenue-generating assets, consisting principally of franchise-related agreements and intellectual property, were contributed or otherwise transferred to the Issuer and certain other limited-purpose, bankruptcy-remote, wholly owned indirect subsidiaries of the Company that act as guarantors of the Notes and that have pledged substantially all of their assets as collateral securing the Notes. The Notes are subject to a series of financial and non-financial covenants and restrictions. As of June 29, 2019, the Company was in compliance with all such financial covenants. As of June 29, 2019, the scheduled principal payments on the Class A-2 Notes were as follows (in thousands):
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Leases (Notes) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases of Lessee Disclosure | Leases The Company determines whether an arrangement is a lease at inception. The Company has operating leases for office and retail space, as well as equipment. Our leases have remaining terms of one year to eight years, some of which include options to extend the lease term for up to ten years. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We have lease agreements that contain both lease and non-lease components. For real estate leases, we account for lease components together with non-lease components (e.g., common-area maintenance). Components of lease expense are as follows (in thousands):
(a) Includes short-term leases, which are immaterial. (b) Primarily related to adjustments for inflation, common area maintenance, and property tax. Supplemental cash flow information related to leases is as follows (dollar amounts in thousands):
Supplemental balance sheet information related to our operating leases is as follows:
Weighted average lease term and discount rate information related to leases is as follows:
Maturities of lease liabilities by fiscal year are as follows (in thousands):
As of December 29, 2018, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands):
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Commitments and Contingencies |
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Jun. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to legal proceedings, claims, and liabilities, such as employment-related claims and premises-liability cases, which arise in the ordinary course of business and are generally covered by insurance. In the opinion of management, the amount of ultimate liability with respect to such actions is not likely to have a material adverse impact on the Company’s financial position, results of operations, or cash flows.
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Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation is measured at the date of grant, based on the calculated fair value of the award, and is recognized as expense over the requisite employee service period (generally the vesting period of the grant). The Company recognized $2.8 million in stock-based compensation expense for the twenty-six weeks ended June 29, 2019, with a corresponding increase to additional paid-in-capital. Stock-based compensation expense is included in selling, general and administrative expense in the Consolidated Statements of Operations. Stock Options The following table summarizes stock option activity (in thousands, except term and per share data):
The total grant-date fair value of stock options vested during the twenty-six weeks ended June 29, 2019 was $0.5 million. The total intrinsic value of stock options exercised during the twenty-six weeks ended June 29, 2019 was $5.9 million. As of June 29, 2019, total unrecognized compensation expense related to unvested stock options was $0.1 million, which is expected to be recognized over a weighted-average period of 0.6 years. During the thirteen weeks ended June 29, 2019, there was a modification to certain awards resulting in additional compensation expense of $0.2 million. Restricted Stock Units and Performance Stock Units The following table summarizes activity related to restricted stock units (“RSUs”) and performance stock units (“PSUs”) (in thousands, except per share data):
The fair value of the Company’s RSUs and PSUs is based on the closing market price of the stock on the date of grant. The RSUs granted during the twenty-six weeks ended June 29, 2019 vest over a three-year service period. As of June 29, 2019, total unrecognized compensation expense related to unvested RSUs was $3.9 million, which is expected to be recognized over a weighted-average period of 2.0 years. The PSUs vest based on the outcome of certain performance criteria. For the PSUs granted during the twenty-six weeks ended June 29, 2019, the amount of units that can be earned range from 0% to 100% of the number of PSUs granted based on a service condition and a performance vesting condition based on the achievement of certain adjusted EBITDA targets, as defined by the plan, over a performance period of one to three years. The compensation expense related to these PSUs is recognized over the vesting period when the achievement of the performance conditions becomes probable. The total compensation cost for the PSUs is determined based on the most likely outcome of the performance condition and the number of awards expected to vest. As of June 29, 2019, total unrecognized compensation expense related to unvested PSUs was $4.5 million. During the thirteen weeks ended June 29, 2019, there was a modification to certain awards resulting in additional compensation expense of $0.7 million. Restricted Stock Awards The fair value of the unvested restricted stock awards is based on the closing price of the Company’s common stock on the date of grant. As of June 29, 2019, total unrecognized compensation expense related to unvested restricted stock awards was $0.6 million, which will be recognized over a weighted average period of approximately 1.9 years.
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Business Segments |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments The Company’s business operates in two segments: the “Franchise” segment and the “Company” segment. The Franchise segment consists of domestic and international franchise restaurants, which represent the majority of our system-wide restaurants. As of June 29, 2019, the Franchise segment consisted of 1,274 restaurants operated by Wingstop franchisees in the United States and international markets, compared to 1,162 franchised restaurants in operation as of June 30, 2018. Franchise segment revenue consists primarily of franchise royalty revenue, advertising fee revenue, franchise and development fees revenue, and international territory fees. As of June 29, 2019, the Company segment consisted of 29 company-owned restaurants located in the United States, compared to 26 company-owned restaurants as of June 30, 2018. Company segment revenue is comprised of food and beverage sales at company-owned restaurants. Company segment expenses consist of operating expenses at company-owned restaurants and include food, beverage, labor, benefits, utilities, rent, and other operating costs. The following table reflects revenue and profit information with respect to each segment and reconciles segment profits to income before taxes (in thousands):
(1) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of transaction costs associated with the refinancings of our credit agreement and payment of a special dividend.
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Building Acquisition (Notes) |
6 Months Ended |
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Jun. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Asset Acquisition | Building Acquisition On June 25, 2019, the Company entered into an agreement to acquire an office building with an acquisition price of $18.3 million, which is expected to be primarily funded by cash on hand and is expected close in the third quarter of 2019. The building will be primarily used for the Company’s headquarters and is located in Addison, Texas.
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Revenue from Contracts with Customers (Notes) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers Revenue from contracts with customers consists primarily of royalties, Ad Fund contributions, initial and renewal franchise fees, and upfront fees from development agreements and international territory agreements. The performance obligations under franchise agreements consist of (a) a franchise license, (b) pre-opening services, such as training, and (c) ongoing services, such as management of the Ad Fund, development of training materials and menu items, and restaurant monitoring. These performance obligations are highly interrelated, so they are not considered to be individually distinct and therefore are accounted for as a single performance obligation, which is satisfied by providing a right to use our intellectual property over the term of each franchise agreement. Royalties and franchisee contributions to the Ad Fund, are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Initial and renewal franchise fees are payable by the franchisee prior to the restaurant opening or at the time of a renewal of an existing franchise agreement. Franchise agreement royalties and Ad Fund contributions represent sales-based royalties that are related entirely to the performance obligation under the franchise agreement and are recognized as franchise sales occur. Additionally, initial and renewal franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement. The performance obligation under development agreements and international territory agreements generally consists of an obligation to grant exclusive development rights over a stated term. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for development rights are deferred and apportioned to each franchise restaurant opened by the franchisee. The pro rata amount apportioned to each restaurant is accounted for as an initial franchise fee. The following table represents a disaggregation of revenue from contracts with customers for the thirteen and twenty-six weeks ended June 29, 2019 and June 30, 2018 (in thousands):
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Subsequent Events (Notes) |
6 Months Ended |
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Jun. 29, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On July 10, 2019, the Company entered into an agreement to acquire one existing restaurant from a franchisee in the Dallas market. The total purchase price was $1.2 million and the acquisition is expected to close in the third quarter of 2019. This restaurant acquisition will be accounted for as a business combination. The Company is still determining the estimated fair value of assets acquired and liabilities assumed. The excess of the purchase price over the aggregate fair value of assets acquired will be allocated to goodwill. The results of operations of this location will be included in our Consolidated Statements of Operations as of the date of the acquisition.
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Basis of Presentation (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year End | The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2019 and 2018 have 52 weeks | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash within the Consolidated Balance Sheets and the Consolidated Statements of Cash Flows as of June 29, 2019 and December 29, 2018 were as follows (in thousands):
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Advertising Fund | Advertising Fund The Company administers the Wingstop Restaurants Advertising Fund (“Ad Fund”), for which a percentage of gross sales is collected from Wingstop restaurant franchisees and company-owned restaurants to be used for various forms of advertising for the Wingstop brand. Beginning in fiscal year 2019, the Ad Fund contribution collected from domestic Wingstop restaurant franchisees and company-owned restaurants increased from 3% to 4% of gross sales. The Company consolidates and reports all assets and liabilities of the Ad Fund as restricted assets and restricted liabilities of the Ad Fund within current assets and current liabilities, respectively, in the Consolidated Balance Sheets. Ad Fund contributions and expenditures are reported on a gross basis in the Consolidated Statements of Operations, which are largely offsetting and therefore do not impact our reported net income. Company-operated restaurants’ Ad Fund contributions, which were equal to 4% of gross sales for the twenty-six weeks ended June 29, 2019 and 3% of gross sales for the twenty-six weeks ended June 30, 2018, are included in cost of sales in the Consolidated Statements of Operations. |
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Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new guidance also requires additional disclosures about leases. The Company adopted the requirements of the new standard as of the first day of fiscal year 2019 using the modified retrospective approach without restating comparative periods. As part of our adoption, we elected the package of practical expedients, as well as the hindsight practical expedient, permitted under the new guidance, which, among other things, allowed the Company to continue utilizing historical classification of leases. In addition, we elected not to separate non-lease components for our real estate leases. The adoption of the new standard resulted in the recording of a right-of-use asset of approximately $8.5 million and lease liabilities of approximately $10.3 million, and had an immaterial impact on retained earnings as of the beginning of fiscal year 2019. The standard did not materially impact our Consolidated Statements of Operations and had no impact on cash flows.
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Basis of Presentation Disclosure - New Accounting Pronouncements (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | Cash, cash equivalents, and restricted cash within the Consolidated Balance Sheets and the Consolidated Statements of Cash Flows as of June 29, 2019 and December 29, 2018 were as follows (in thousands):
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Earnings per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Basic Shares Outstanding to Diluted Shares Outstanding | Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Measurements, Nonrecurring | Fair value of debt is determined on a non-recurring basis, which results are summarized as follows (in thousands):
(1) The fair value of long-term debt was estimated using available market information.
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Debt Obligations Debt Obligations - Schedule of Maturities (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | As of June 29, 2019, the scheduled principal payments on the Class A-2 Notes were as follows (in thousands):
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease cost | Components of lease expense are as follows (in thousands):
(a) Includes short-term leases, which are immaterial. (b) Primarily related to adjustments for inflation, common area maintenance, and property tax. Supplemental cash flow information related to leases is as follows (dollar amounts in thousands):
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Schedule of supplemental balance sheet information related to leases | Supplemental balance sheet information related to our operating leases is as follows:
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Operating lease weighted average information | Weighted average lease term and discount rate information related to leases is as follows:
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Maturities of lease liabilities | Maturities of lease liabilities by fiscal year are as follows (in thousands):
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Future minimum rental payments (ASC 840) | As of December 29, 2018, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands):
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Stock-Based Compensation (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | The following table summarizes stock option activity (in thousands, except term and per share data):
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Schedule of Unvested Restricted Stock Units Roll Forward | The following table summarizes activity related to restricted stock units (“RSUs”) and performance stock units (“PSUs”) (in thousands, except per share data):
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Business Segments (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following table reflects revenue and profit information with respect to each segment and reconciles segment profits to income before taxes (in thousands):
(1) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of transaction costs associated with the refinancings of our credit agreement and payment of a special dividend.
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Revenue from Contracts with Customers (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | The following table represents a disaggregation of revenue from contracts with customers for the thirteen and twenty-six weeks ended June 29, 2019 and June 30, 2018 (in thousands):
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Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
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Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
Dec. 29, 2018 |
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Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 48,562 | $ 37,037 | $ 96,615 | $ 74,426 | |
Advertising fees and related income | 13,487 | 8,355 | 26,697 | 16,960 | |
Contract with Customer, Portion of Liability not yet being Amortized | $ 8,000 | $ 8,000 | $ 9,200 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 7 years 3 months 18 days | 7 years 3 months 18 days | |||
Franchise | Transferred over Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Initial Franchise Fees | $ 939 | 618 | $ 2,521 | 1,304 | |
Franchise | Transferred at Point in Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Advertising fees and related income | 13,487 | 8,355 | 26,697 | 16,960 | |
Royalty | Transferred at Point in Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 18,437 | $ 14,950 | $ 36,344 | $ 30,336 |
Basis of Presentation - Overview (Details) - restaurant |
Jun. 29, 2019 |
Jun. 30, 2018 |
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Franchised Units | ||
Franchisor Disclosure [Line Items] | ||
Number of Restaurants | 1,274 | 1,162 |
Franchised Units | United States | ||
Franchisor Disclosure [Line Items] | ||
Number of Restaurants | 1,139 | |
Franchised Units | Non-US | ||
Franchisor Disclosure [Line Items] | ||
Number of Restaurants | 135 | |
Entity Operated Units | ||
Franchisor Disclosure [Line Items] | ||
Number of Restaurants | 29 | 26 |
Basis of Presentation Basis of Presentation - Cash, cash equivalent, and restricted cash (Details) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
Jun. 30, 2018 |
Dec. 30, 2017 |
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Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 17,075 | $ 12,493 | ||
Restricted cash | 4,811 | 4,462 | ||
Restricted cash, included in Advertising fund assets, restricted | 1,321 | 3,985 | ||
Total cash, cash equivalents, and restricted cash | $ 23,207 | $ 20,940 | $ 5,665 | $ 6,392 |
Basis of Presentation Basis of Presentation - Advertising Expenses (Details) |
6 Months Ended | 12 Months Ended | |
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Jun. 29, 2019 |
Jun. 30, 2018 |
Dec. 29, 2018 |
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Percentage of Revenue Collected for Advertising Fund | 4.00% | 3.00% | |
Cost of Sales | |||
Percentage of Revenue Collected for Advertising Fund | 4.00% | 3.00% |
Basis of Presentation Basis of Presentation - New Accounting Pronouncements (Details) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 30, 2018 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 8,295 | |
Operating Lease, Liability | $ 10,056 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 8,500 | |
Operating Lease, Liability | $ 10,300 |
Earnings per Share (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
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Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding | 29,418 | 29,230 | 29,377 | 29,173 |
Dilutive shares | 249 | 298 | 273 | 336 |
Diluted weighted average shares outstanding | 29,667 | 29,528 | 29,650 | 29,509 |
Antidilutive securities excluded from computation of earnings per share, amount | 6 | 2 | 18 | 13 |
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
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Jul. 31, 2019 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
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Dividends Payable [Line Items] | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.18 | $ 3.31 | |
Dividends paid | $ (5,229) | $ (96,854) | ||||
Subsequent Event | ||||||
Dividends Payable [Line Items] | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.11 | |||||
Dividends Payable, Current | $ (3,200) |
Fair Value Measurements (Details) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Dec. 29, 2018 |
Nov. 14, 2018 |
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Senior Notes | $ 320,000 | ||||
Reported Value Measurement | Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Senior Notes | $ 319,200 | $ 320,000 | |||
Estimate of Fair Value Measurement | Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans Payable, Fair Value Disclosure | [1] | $ 333,749 | $ 320,000 | ||
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Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
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Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 1,070 | $ 745 | $ 1,825 | $ 2,407 |
Effective income tax rate | 17.90% | 9.80% | 13.70% | 15.60% |
Excess Tax Benefit from Share-based Compensation | $ 600 | $ 1,200 | $ 1,800 | $ 1,500 |
Debt Obligations Debt Obligations - Securitized Financing Facility (Details) - USD ($) $ in Thousands |
Jun. 29, 2019 |
Nov. 14, 2018 |
---|---|---|
Debt Disclosure [Abstract] | ||
Senior Notes | $ 320,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.97% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000 | |
Letters of Credit Outstanding, Amount | $ 4,000 |
Debt Obligations Debt Obligations - Schedule of Maturities (Details) $ in Thousands |
Jun. 29, 2019
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Remainder of fiscal year 2019 | $ 1,600 |
Fiscal year 2020 | 3,200 |
Fiscal year 2021 | 3,200 |
Fiscal year 2022 | 3,200 |
Fiscal year 2023 | 308,000 |
Total | $ 319,200 |
Leases Leases - Lease Cost (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 29, 2019
USD ($)
|
Jun. 29, 2019
USD ($)
|
|||||||
Lessee, Lease, Description [Line Items] | ||||||||
Operating lease cost (a) | $ 522 | [1] | $ 1,028 | [1] | ||||
Variable lease cost (b) | 126 | [2] | 251 | [2] | ||||
Total lease cost | $ 648 | 1,279 | ||||||
Cash paid for amounts included in the measurement of lease liabilities | 1,089 | |||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 580 | |||||||
Minimum | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease term | 1 year | 1 year | ||||||
Maximum | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease term | 8 years | 8 years | ||||||
Renewal term | 10 years | 10 years | ||||||
|
Leases Leases - Supplemental Balance Sheet Information (Details) $ in Thousands |
Jun. 29, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Right-of-use assets | $ 8,295 |
Current lease liabilities | 1,868 |
Non-current lease liabilities | $ 8,188 |
Leases Leases - Weighted Average Information (Details) |
Jun. 29, 2019 |
---|---|
Leases [Abstract] | |
Weighted average remaining lease term of operating leases | 5 years 6 months |
Weighted average discount rate of operating leases | 4.80% |
Leases Leases - Maturities of Lease Liabilities (Details) $ in Thousands |
Jun. 29, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Remainder of fiscal year 2019 | $ 1,335 |
Fiscal year 2020 | 2,302 |
Fiscal year 2021 | 2,089 |
Fiscal year 2022 | 1,884 |
Fiscal year 2023 | 1,597 |
Thereafter | 2,214 |
Total lease payments | 11,421 |
Less: imputed interest | (1,365) |
Present value of lease liabilities | $ 10,056 |
Leases Leases - Future Minimum Lease Payments (Details) $ in Thousands |
Dec. 29, 2018
USD ($)
|
---|---|
Leases [Abstract] | |
Fiscal year 2019 | $ 2,181 |
Fiscal year 2020 | 2,214 |
Fiscal year 2021 | 2,005 |
Fiscal year 2022 | 1,800 |
Fiscal year 2023 | 1,523 |
Thereafter | 2,145 |
Total | $ 11,868 |
Stock-Based Compensation - Stock Option Plan (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 29, 2019
USD ($)
|
Jun. 29, 2019
USD ($)
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value of stock options, vested | $ 0.5 | |
Intrinsic value of stock options exercised | 5.9 | |
Stock-based compensation expense, unrecognized | $ 0.1 | $ 0.1 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense, recognition period | 7 months 6 days | |
Award Modification, Incremental Compensation Cost | $ 0.2 | |
Additional Paid-In Capital | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 2.8 |
Business Segments Business Segments - Restaurant Counts (Details) - restaurant |
Jun. 29, 2019 |
Jun. 30, 2018 |
---|---|---|
Franchised Units | ||
Franchisor Disclosure [Line Items] | ||
Number of Restaurants | 1,274 | 1,162 |
Entity Operated Units | ||
Franchisor Disclosure [Line Items] | ||
Number of Restaurants | 29 | 26 |
Business Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 29, 2019 |
Jun. 30, 2018 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|||
Segment Reporting Information [Line Items] | ||||||
Total revenue | $ 48,562 | $ 37,037 | $ 96,615 | $ 74,426 | ||
Operating income | 10,287 | 9,926 | 22,058 | 19,492 | ||
Interest expense, net | 4,299 | 2,342 | 8,709 | 4,078 | ||
Income before taxes | 5,988 | 7,584 | 13,349 | 15,414 | ||
Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 48,562 | 37,037 | 96,615 | 74,426 | ||
Operating income | 10,287 | 9,926 | 22,058 | 20,954 | ||
Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Corporate and other | [1] | 0 | 0 | 0 | 1,462 | |
Segment Reconciling Items [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest expense, net | (4,299) | (2,342) | (8,709) | (4,078) | ||
Franchise Segment [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 34,674 | 25,559 | 69,212 | 51,945 | ||
Operating income | 8,221 | 7,175 | 17,476 | 15,562 | ||
Company Segment [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 13,888 | 11,478 | 27,403 | 22,481 | ||
Operating income | $ 2,066 | $ 2,751 | $ 4,582 | $ 5,392 | ||
|
Building Acquisition (Details) $ in Millions |
Jun. 29, 2019
USD ($)
|
---|---|
Land and Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Purchase Price | $ 18.3 |
Subsequent Events (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jul. 10, 2019 |
Jun. 29, 2019 |
Jun. 30, 2018 |
|
Subsequent Event [Line Items] | |||
Acquisition of restaurant from franchisee | $ 0 | $ 5,996 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Acquisition of restaurant from franchisee | $ 1,200 |
Label | Element | Value |
---|---|---|
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 154,000 |
Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 154,000 |
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