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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2012
Share-based Compensation [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
In connection with the Spin-off of Fiesta, on March 5, 2012 Carrols Restaurant Group converted all of its outstanding vested stock options to shares of the Company's common stock and all of its outstanding non-vested stock options to non-vested shares of the Company's common stock. The non-vested shares will generally vest over the same period as the non-vested stock options.
On July 15, 2012, the Company granted in the aggregate 500,900 non-vested shares to certain officers of the Company. In general, these shares vest and become non-forfeitable 25% per year and are being expensed over their four-year vesting period.
Stock-based compensation expense for the three and nine months ended September 30, 2012 was $0.3 million and $0.6 million, respectively. As of September 30, 2012, the total unrecognized stock-based compensation expense relating to non-vested shares was approximately $3.9 million, which the Company expects to recognize over a remaining weighted average vesting period for non-vested shares was 2.9 years. The Company expects to record an additional $0.3 million as compensation expense for the remainder of 2012.

Stock Options/Non-vested Shares
A summary of all option activity for the nine months ended September 30, 2012 was as follows:
 
 
2006 Stock Incentive Plan
 
Number of
Options
 
Weighted Average Exercise Price
 
Average Remaining Contractual Life
 
Aggregate
Intrinsic
Value
Options outstanding at January 1, 2012
2,438,327

 
$
9.33

 
3.2

 
$
8,275

Granted
—

 
—

 
 
 
 
Exercised
(69,824
)
 
4.20

 
 
 
 
Cancelled (1)
(2,348,950
)
 
9.51

 
 
 
 
Forfeited
(19,553
)
 
6.58

 
 
 
 
Options outstanding at September 30, 2012
—

 
$
—

 
—

 
$
—

Vested or expected to vest at September 30, 2012
—

 
$
—

 
—

 
$
—

Options exercisable at September 30, 2012
—

 
$
—

 
—

 
$
—


A summary of all non-vested shares activity for the nine months ended September 30, 2012 was as follows:
 
 
Shares
 
Weighted
Average
Grant Date
Price
Nonvested at January 1, 2012
385,426

 
$
7.54

Granted (1)
835,673

 
7.98

Vested (2)
(262,067
)
 
7.62

Forfeited
(21,812
)
 
9.32

Nonvested at September 30, 2012
937,220

 
$
7.85


The fair value of the non-vested shares is based on the closing price on the date of grant. The weighted average fair value at the grant date for non-vested shares issued during the three months ended September 30, 2012 was $5.87.
_____________________ 
(1)
Includes the conversion of all of outstanding vested stock options to shares of the Company's common stock and all of its outstanding non-vested stock options to non-vested shares of the Company's common stock as discussed above.
(2)
Includes accelerated vesting of 200,000 non-vested shares of the Company's common stock of the former Chairman of the board of directors of Fiesta.