Stock Option Plan

9 Months Ended

May 30, 2020

Share-based Payment Arrangement [Abstract]

Stock Option Plan

tock-based compensation includes stock options, restricted stock unit, performance stock unit awards and stock appreciation rights, which are awarded to employees, directors, and consultants of the Company. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award based on their grant date fair value. Stock-based compensation expense is included within General and administrative expense, which is the same financial statement caption where the recipient’s other compensation is reported.

The Company recorded $2.2 million and $1.4 million of stock-based compensation expense in the thirteen weeks ended May 30, 2020 and May 25, 2019, respectively. The Company recorded $5.9 million and $3.9 million of stock-based compensation expense in the thirty-nine weeks ended May 30, 2020 and May 25, 2019, respectively.

Stock Options

The following table summarizes stock option activity for the thirty-nine weeks ended May 30, 2020:

	Shares Underlying Options		Weighted average exercise price		Weighted average remaining contractual life (in years)
Outstanding as of August 31, 2019	2,748,735		$	13.35
Granted	194,014		24.20
Exercised	(76,366	)	12.20
Forfeited	—		—
Outstanding as of May 30, 2020	2,866,383		$	14.12	7.52
Vested and expected to vest as of May 30, 2020	2,866,383		$	14.12	7.52
Exercisable as of May 30, 2020	1,551,838		$	12.70	7.27

As of May 30, 2020, the Company had $3.2 million of total unrecognized compensation cost related to stock option plans that will be recognized over a weighted average period of 0.82 years. During the thirty-nine week period ended May 30, 2020, the Company received $0.9 million in cash from stock option exercises.

Restricted Stock Units

The following table summarizes restricted stock unit activity for the thirty-nine weeks ended May 30, 2020:

	Restricted Stock Units		Weighted average grant-date fair value
Non-vested as of August 31, 2019	92,400		$	17.50
Granted	158,512		24.01
Vested	(51,518	)	18.17
Forfeited	(4,923	)	16.36
Non-vested as of May 30, 2020	194,471		$	22.66

As of May 30, 2020, the Company had $3.0 million of total unrecognized compensation cost related to restricted stock units that will be recognized over a weighted average period of 1.87 years.

Performance Stock Units

During the thirty-nine weeks ended May 30, 2020, the Board of Directors granted performance stock units under the Company’s equity compensation plan. Performance stock units vest in a range between 0% and 200% based upon certain performance criteria in a three-year period. Performance stock units were valued using a Monte-Carlo simulation.

The following table summarizes performance stock unit activity for the thirty-nine weeks ended May 30, 2020:

	Performance Stock Units		Weighted average grant-date fair value
Non-vested as of August 31, 2019	192,389		$	11.93
Granted	121,288		27.39
Vested	—		—
Forfeited	(3,142	)	16.67
Non-vested as of May 30, 2020	310,535		$	17.92

As of May 30, 2020, the Company had $3.8 million of total unrecognized compensation cost related to performance stock units that will be recognized over a weighted average period of 1.83 years.

Stock Appreciation Rights

Stock appreciation rights ("SARs") permit the holder to participate in the appreciation of the Company's common stock price. The Company's SARs settle in shares of its common stock once the applicable vesting criteria has been met. SARs cliff vest 3 years from the date of grant and must be exercised within 10 years.

The following table summarizes SARs activity for the thirty-nine weeks ended May 30, 2020:

	Shares Underlying SARs	Weighted average exercise price		Weighted average remaining contractual life (in years)
Outstanding as of August 31, 2019	—	$	—
Granted	150,000	24.20
Exercised	—	—
Forfeited	—	—
Outstanding as of May 30, 2020	150,000	$	24.20	9.42
Vested and expected to vest as of May 30, 2020	150,000	$	24.20	9.42
Exercisable as of May 30, 2020	—	$	—	0.00

As of May 30, 2020, the Company had $0.3 million of total unrecognized compensation cost related to its SARs that will be recognized over a weighted average period of 2.42 years.