Acquisition (Tables)

12 Months Ended

Jan. 03, 2021

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

During the year ended December 29, 2019, the Company acquired a total of 234 restaurants from other franchisees, which are referred to as the "2019 acquired restaurants", in the following transactions:

Closing Date		Number of Restaurants	Purchase Price
April 30, 2019	(1)	220	$	259,083	Southeastern states, primarily TN, MS, LA
June 11, 2019		13	15,788		Baltimore, Maryland
August 20, 2019	(2)	1	1,108		Pennsylvania
		234	$	275,979

(1)During the second quarter of 2019, the Company completed the merger with New CFH, LLC ("Cambridge") and acquired 165 Burger King restaurants and 55 Popeyes restaurants.

(2)Acquisitions resulting from the exercise of the Company's right of first refusal on acquisitions in certain markets (see note 15).

During the year ended December 30, 2018 the Company acquired a total of 44 restaurants from other franchisees, which are referred to as the "2018 acquired restaurants", in the following transactions:

Closing Date		Number of Restaurants	Purchase Price		Market Location
February 13, 2018	(1)	1	$	—	New York
August 21, 2018	(2)	2	1,666		Detroit, Michigan
September 5, 2018	(2)	31	25,930		Western Virginia
October 2, 2018		10	10,506		South Carolina and Georgia
		44	$	38,102

(1)This acquisition resulted in a bargain purchase gain because the fair value of net assets acquired, largely representing a franchise right asset of $0.3 million, exceeded the total fair value of consideration paid by $0.2 million. The Company recognized this gain and recorded it as "Gain on bargain purchase" in the consolidated statements of comprehensive income (loss).

(2)Acquisitions resulting from the exercise of the Company's right of first refusal on acquisitions in certain markets (see note 15).

Schedule of Purchase Price Allocation [Table Text Block]

The following table summarizes the final allocation of the aggregate purchase price for the Cambridge Merger:

Inventory	$	2,839
Prepaid expenses	2,947
Other assets	1,846
Land and buildings	21,257
Restaurant equipment	25,358
Restaurant equipment - subject to finance leases	488
Right-of-use assets	251,431
Leasehold improvements	3,498
Franchise fees	7,300
Franchise rights (Note 4)	174,500
Deferred taxes	(44,292)
Goodwill (Note 4)	84,060
Finance lease obligations for restaurant equipment	(568)
Operating lease liabilities	(255,897)
Accounts payable	(8,014)
Accrued payroll, related taxes and benefits	(3,133)
Other liabilities	(4,537)
Net assets acquired	$	259,083

The following table summarizes the final allocation of the aggregate purchase price for these other 2019 acquisitions:

Inventory	$	158
Restaurant equipment	743
Restaurant equipment - subject to finance leases	150
Right-of-use assets	9,515
Leasehold improvements	6,205
Franchise fees	394
Franchise rights (Note 4)	9,809
Deferred taxes	29
Goodwill (Note 4)	86
Operating lease liabilities	(9,968)
Finance lease obligations for restaurant equipment	(185)
Accounts payable	(40)
Net assets acquired	$	16,896

The following table summarizes the final allocation of the aggregate purchase price for the four 2018 acquisitions:

Inventory	$	401
Restaurant equipment	2,092
Restaurant equipment - subject to capital lease	43
Leasehold improvements	1,329
Franchise fees	1,264
Franchise rights (Note 4)	31,275
Favorable leases	587
Deferred taxes	346
Goodwill (Note 4)	1,677
Capital lease obligations for restaurant equipment	(49)
Unfavorable leases	(624)
Accounts payable	(9)
Net assets acquired	$	38,332

Business Acquisition, Pro Forma Information [Table Text Block]

The following table summarizes the Company's unaudited proforma operating results:

	Year Ended
	December 29, 2019		December 30, 2018
Restaurant sales	$	1,568,533	$	1,518,841
Net income (loss)	(25,586)		27,730
Basic and diluted net income (loss) per share	(0.59)		0.60

The following table summarizes the Company's unaudited proforma operating results:

	Year Ended
	December 30, 2018
Restaurant sales	$	1,217,891
Net income	13,684
Basic and diluted net income per share	0.30

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The weighted average amortization period of the intangible assets acquired is as follows:

	2019 Acquisitions	2018 Acquisitions
Favorable leases	—	17.2
Unfavorable leases	—	18.3
Franchise rights	32.7	31.6