Stock-Based Compensation (Tables)

6 Months Ended

Jul. 04, 2023

Stock-Based Compensation

Schedule of information related to stock-based compensation, net of forfeitures

	Thirteen		Thirteen		Twenty-Six		Twenty-Six
	Weeks Ended		Weeks Ended		Weeks Ended		Weeks Ended
	July 4, 2023		June 28, 2022		July 4, 2023		June 28, 2022
Labor expenses	$	2,426	$	2,194	$	4,788	$	4,384
Other operating costs and expenses		76		74		151		150
General and administrative expenses		3,823		3,821		7,288		7,073
Total stock-based compensation		6,325		6,089		12,227		11,607
Income tax benefit		1,579		1,495		3,053		2,850
Total stock-based compensation, net of taxes	$	4,746	$	4,594	$	9,174	$	8,757
Capitalized stock-based compensation (1)	$	45	$	52	$	87	$	109

(1) It is our policy to capitalize the portion of stock-based compensation costs for our internal development department that relates to capitalizable activities such as the design and construction of new restaurants, remodeling existing locations and equipment installation. Capitalized stock-based compensation is included in property and equipment, net on the condensed consolidated balance sheets.

Schedule of stock option activity

We did not issue any stock options during the second quarters of fiscal 2023 and fiscal 2022. Stock option activity during the twenty-six weeks ended July 4, 2023 was as follows:

				Weighted-
				Average
		Weighted-		Remaining
		Average		Contractual	Aggregate
	Shares	Exercise Price		Term	Intrinsic Value (1)
	(In thousands)	(Per share)		(In years)	(In thousands)
Outstanding at January 3, 2023	1,685	$	46.11	4.2	$	0
Granted	40		40.42
Exercised	—		—
Forfeited or cancelled	(175)		48.01
Outstanding at July 4, 2023	1,550	$	45.75	4.3	$	0
Exercisable at July 4, 2023	1,198	$	47.12	3.6	$	0

(1) Aggregate intrinsic value is calculated as the difference between our closing stock price at fiscal period end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised their options on the fiscal period-end date.

Schedule of restricted share and restricted share unit activity

		Weighted-
		Average
	Shares	Fair Value
	(In thousands)	(Per share)
Outstanding at January 3, 2023	2,512	$	41.93
Granted	783		39.02
Vested	(386)		42.88
Forfeited	(61)		39.60
Outstanding at July 4, 2023	2,848	$	41.05