0001789940-22-000098 | 10-Q | XBRL Viewer | First Watch Restaurant Group INC

Print Document View Excel Document

Commitments and Contingencies - Narrative (Details) $ in Millions	1 Months Ended
	Jul. 31, 2022 gal	Sep. 25, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Long term purchase commitment, maximum gallons to be purchased \| gal	585,940
Long-term purchase commitment, period	5 years
Purchase commitment, remaining minimum amount committed \| $		$ 9.5

Income Taxes - Additional Information (Details)	9 Months Ended
Income Taxes - Additional Information (Details)	Sep. 25, 2022
Income Tax Disclosure [Abstract]
Blended federal and state statutory rate	25.00%

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2022	Sep. 26, 2021	Sep. 25, 2022	Sep. 26, 2021
Disaggregation of Revenue [Line Items]
Total revenues	$ 186,852	$ 157,441	$ 544,417	$ 438,573
Restaurant sales
Disaggregation of Revenue [Line Items]
Total revenues	183,978	155,082	536,329	432,136
In-restaurant dining sales
Disaggregation of Revenue [Line Items]
Total revenues	147,491	123,311	425,222	327,147
Third-party delivery sales
Disaggregation of Revenue [Line Items]
Total revenues	20,105	15,232	60,960	52,584
Take-out sales
Disaggregation of Revenue [Line Items]
Total revenues	16,382	16,539	50,147	52,405
Franchise revenues
Disaggregation of Revenue [Line Items]
Total revenues	2,874	2,359	8,088	6,437
Royalty and system fund contributions
Disaggregation of Revenue [Line Items]
Total revenues	2,807	2,300	7,892	6,254
Initial fees
Disaggregation of Revenue [Line Items]
Total revenues	$ 67	$ 59	$ 196	$ 183

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Equity and Stock-Based Compensation - Schedule of Unrecognized Stock-based Compensation Expense (Details) $ in Thousands	9 Months Ended
	Sep. 25, 2022 USD ($)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock compensation expense	$ 11,267
REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years)	1 year 6 months
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock compensation expense	$ 371
REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years)	8 months 12 days

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 25, 2022	Dec. 26, 2021
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 138,124	$ 115,582
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	59,116,723	59,048,446
Common stock, shares outstanding (in shares)	59,116,723	59,048,446

Leases (Tables)

9 Months Ended

Sep. 25, 2022

Leases [Abstract]

Supplemental Information Related to Leases

The following table includes a detail of lease assets and liabilities:


(in thousands)	Consolidated Balance Sheets Classification	SEPTEMBER 25, 2022		DECEMBER 26, 2021
Operating lease right-of-use assets	Operating lease right-of-use assets	$	349,272	$	324,995
Finance lease assets	Property, fixtures and equipment, net	1,426		1,892
Total lease assets		$	350,698	$	326,887

Operating lease liabilities (1) - current	Current portion of operating lease liabilities	38,039		38,186
Operating lease liabilities - non-current	Operating lease liabilities	361,172		330,495
Finance lease liabilities - current	Current portion of long-term debt	628		686
Finance lease liabilities - non-current	Long-term debt, net	902		1,331
Total lease liabilities		$	400,741	$	370,698

_____________

(1) Excludes all variable lease expense.

Supplemental information related to leases was as follows:


	THIRTY-NINE WEEKS ENDED
	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Weighted-average remaining lease term (in years)
Operating leases	14.8		15.6
Finance leases	3.0		3.7
Weighted-average discount rate (1)
Operating leases	8.6	%	9.1	%
Finance leases	7.7	%	8.0	%

____________

(1) Based on the Company’s incremental borrowing rate.

Supplemental Cash Flow Information

The components of lease expense are as follows:


(in thousands)	Consolidated Statements of Operations and Comprehensive Income Classification	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Operating lease expense	Other restaurant operating expenses Occupancy expenses Pre-opening expenses General and administrative expenses	$	12,667	$	11,377	$	36,843	$	33,263
Variable lease expense	Food and beverage costs Occupancy expenses General and administrative expenses	3,676		3,202		10,669		9,294
Finance lease expense:
Amortization of leased assets	Depreciation and amortization	127		139		394		405
Interest on lease liabilities	Interest expense	25		43		101		133
Total lease expense (1)		$	16,495	$	14,761	$	48,007	$	43,095

_____________

(1) Includes contingent rent expense of $0.4 million and $0.3 million during the thirteen weeks ended September 25, 2022 and September 26, 2021, respectively, and $1.2 million and $0.7 million during the thirty-nine weeks ended September 25, 2022 and September 26, 2021, respectively.

Supplemental cash flow information related to leases was as follows:


	THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	30,506	$	30,388
Operating cash flows - finance leases	$	101	$	133
Financing cash flows - finance leases	$	385	$	371

Operating Lease Maturity

As of September 25, 2022, future minimum lease payments for operating and finance leases consisted of the following:


(in thousands)	OPERATING LEASES		FINANCE LEASES
Fiscal year
2022	$	10,454	$	194
2023	41,398		607
2024	49,185		607
2025	48,934		227
2026	48,762		38
Thereafter	540,510		39
Total future minimum lease payments (1)	739,243		1,712
Less: imputed interest	(340,032)		(182)
Total present value of lease liabilities	$	399,211	$	1,530

_____________

(1) Excludes approximately $35.0 million of executed operating leases that have not commenced as of September 25, 2022

Finance Lease Maturity

As of September 25, 2022, future minimum lease payments for operating and finance leases consisted of the following:


(in thousands)	OPERATING LEASES		FINANCE LEASES
Fiscal year
2022	$	10,454	$	194
2023	41,398		607
2024	49,185		607
2025	48,934		227
2026	48,762		38
Thereafter	540,510		39
Total future minimum lease payments (1)	739,243		1,712
Less: imputed interest	(340,032)		(182)
Total present value of lease liabilities	$	399,211	$	1,530

_____________

(1) Excludes approximately $35.0 million of executed operating leases that have not commenced as of September 25, 2022

Equity and Stock-Based Compensation - Schedule of Fair Value Non-vested Options at Grant Dates (Details)	9 Months Ended
	Sep. 25, 2022 $ / shares shares
NUMBER OF OPTIONS
Nonvested options, beginning balance (in shares) \| shares	2,633,391
Options granted (in shares) \| shares	1,018,975
Options vested (in shares) \| shares	(647,753)
Options forfeited (in shares) \| shares	(150,059)
Nonvested options, ending balance (in shares) \| shares	2,854,554
WEIGHTED AVERAGE GRANT DATE FAIR VALUE
Nonvested grant date fair value, beginning balance (in dollars per share) \| $ / shares	$ 7.03
Options granted, grant date fair value (in dollars per share) \| $ / shares	6.81
Options vested, grant date fair value (in dollars per share) \| $ / shares	4.01
Options forfeited, grant date fair value (in dollars per share) \| $ / shares	7.29
Nonvested grant date fair value, ending balance (in dollars per share) \| $ / shares	$ 7.62

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2022	Sep. 26, 2021	Sep. 25, 2022	Sep. 26, 2021
Leases [Abstract]
Operating lease expense	$ 12,667	$ 11,377	$ 36,843	$ 33,263
Variable lease expense	3,676	3,202	10,669	9,294
Amortization of leased assets	127	139	394	405
Interest on lease liabilities	25	43	101	133
Total lease expense	16,495	14,761	48,007	43,095
Contingent rent expense	$ 400	$ 300	$ 1,200	$ 700

Net Income Per Common Share

9 Months Ended

Sep. 25, 2022

Earnings Per Share [Abstract]

Net Income Per Common Share

The following table sets forth the computations of basic and diluted net income per common share:


	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
(in thousands, except share and per share data)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Numerator:
Net income	$	46	$	783	$	7,393	$	2,546
Denominator:
Weighted average common shares outstanding - basic	59,089,831		45,013,784		59,065,423		45,013,784
Weighted average common shares outstanding - diluted	60,464,062		46,085,650		60,088,622		46,077,196
Net income per common share - basic	$	—	$	0.02	$	0.13	$	0.06
Net income per common share - diluted	$	—	$	0.02	$	0.12	$	0.06
Stock options outstanding not included in diluted net income per common share as their effect is anti-dilutive	1,255,089		90,045		1,708,602		90,045

Diluted net income per common share is calculated by adjusting the weighted average shares outstanding for the theoretical effect of potential common shares that would be issued for preferred stock using the two-class method, as well as for stock options and restricted stock units outstanding and unvested as of the respective periods using the treasury method.

During the thirteen and thirty-nine weeks ended September 26, 2021, the performance-based stock options that were granted under the 2017 Equity Plan, certain of which were converted into time-based stock options upon the Company’s initial public offering, were excluded from the diluted net income per common share calculation as the performance condition was not considered probable of being met.

Nature of Business and Organization	9 Months Ended
Nature of Business and Organization	Sep. 25, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Organization	Nature of Business and OrganizationFirst Watch Restaurant Group, Inc. (collectively with its wholly-owned subsidiaries, “the Company,” or “Management”) is a Delaware holding company. The Company operates and franchises restaurants in 29 states operating under the “First Watch” trade name, which are focused on made-to-order breakfast, brunch and lunch. The Company does not operate outside of the United States and all of its assets are located in the United States. As of September 25, 2022 and December 26, 2021, the Company operated 356 company-owned restaurants and 341 company-owned restaurants, respectively, and had 103 franchise-owned restaurants and 94 franchise-owned restaurants, respectively.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 25, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments In July 2022, Management entered into an agreement with a vendor to purchase product. The agreement will remain in effect through the later of (i) the purchase of 585,940 gallons of product or (ii) 5 years from the effective date of the agreement. The remaining minimum purchase commitment as of September 25, 2022 was approximately $9.5 million. Legal Proceedings The Company is subject to legal proceedings, claims and liabilities that arise in the ordinary course of business. The amount of the ultimate liability with respect to these matters was not material as of September 25, 2022. In the event any litigation losses become probable and estimable, the Company will recognize any anticipated losses. Unclaimed Property The Company is subject to unclaimed or abandoned property (escheat) laws which require it to turn over to state governmental authorities the property of others held by the Company that has been unclaimed for specified periods of time. Property subject to escheat laws generally relates to uncashed checks, trade accounts receivable credits and unredeemed gift card balances. During the first quarter of 2022, the Company received a letter from the Delaware Secretary of State inviting the Company to participate in the Delaware Secretary of State’s Abandoned or Unclaimed Property Voluntary Disclosure Agreement Program to avoid being sent an audit notice by the Delaware Department of Finance. On August 31, 2022, the Company was accepted into Delaware’s Voluntary Disclosure Agreement Program, entitling it to certain benefits and protections offered to participants in the program. The Company intends to work in good faith to complete a review of its books and records related to unclaimed or abandoned property during the periods required under the program. The Company will continue to examine its options regarding the escheat laws of Delaware including completing Delaware’s Voluntary Disclosure Agreement Program or proceeding to audit. Any potential loss, or range of loss, that may result from this matter is not currently reasonably estimable.

Revenues - Detail of Contract Liabilities (Details) - USD ($) $ in Thousands	Sep. 25, 2022	Dec. 26, 2021
Revenue from Contract with Customer [Abstract]
Deferred gift card revenue	$ 2,111	$ 4,410
Deferred franchise fee revenue - current	276	244
Total current deferred revenues	2,387	4,654
Deferred franchise fee revenue - non-current	$ 2,498	$ 2,292

Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 25, 2022	Dec. 26, 2021
Payables and Accruals [Abstract]
Construction liabilities	$ 6,593	$ 4,445
Sales tax	3,884	3,337
Self-insurance and general liability reserves	1,223	1,353
Utilities	1,666	1,306
Legal	1,561	105
Credit card fees	1,049	940
Property tax	1,296	638
Contingent rent	911	628
Common area maintenance	624	482
Other	4,877	2,655
Total accrued liabilities	$ 23,684	$ 15,889

Leases - Operating and Finance Lease Maturity (Details) $ in Thousands	Sep. 25, 2022 USD ($)
OPERATING LEASES
2022	$ 10,454
2023	41,398
2024	49,185
2025	48,934
2026	48,762
Thereafter	540,510
Total future minimum lease payments	739,243
Less: imputed interest	(340,032)
Total present value of lease liabilities	399,211
FINANCE LEASES
2022	194
2023	607
2024	607
2025	227
2026	38
Thereafter	39
Total future minimum lease payments	1,712
Less: imputed interest	(182)
Total present value of lease liabilities	1,530
Executed operating leases that have not commenced	$ 35,000

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2022	Sep. 26, 2021	Sep. 25, 2022	Sep. 26, 2021
Numerator
Net income	$ 46	$ 783	$ 7,393	$ 2,546
Net income	$ 46	$ 783	$ 7,393	$ 2,546
Denominator
Weighted average common shares outstanding - basic (in shares)	59,089,831	45,013,784	59,065,423	45,013,784
Weighted average common shares outstanding - diluted (in shares)	60,464,062	46,085,650	60,088,622	46,077,196
Net (loss) income per common share - basic (in dollars per share)	$ 0	$ 0.02	$ 0.13	$ 0.06
Net (loss) income per common share - diluted (in dollars per share)	$ 0	$ 0.02	$ 0.12	$ 0.06
Stock options
Denominator
Stock options and restricted stock units outstanding not included in diluted net income per common share as their effect is anti-dilutive (in shares)	1,255,089	90,045	1,708,602	90,045

Income Taxes - Components of Income Tax Expense (Benefit) and Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2022	Sep. 26, 2021	Sep. 25, 2022	Sep. 26, 2021
Income Tax Disclosure [Abstract]
Income before income taxes	$ 1,375	$ 1,317	$ 12,335	$ 5,190
Income tax expense	$ (1,329)	$ (534)	$ (4,942)	$ (2,644)
Effective income tax rate	96.70%	40.50%	40.10%	50.90%

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=126941158&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Nature of Business and Organization - Additional Information (Details)	Sep. 25, 2022 state restaurant	Dec. 26, 2021 restaurant
Franchisor Disclosure [Line Items]
Number of states where company operates and franchises restaurants \| state	29
Company-owned restaurants
Franchisor Disclosure [Line Items]
Number of restaurants	356	341
Franchise-owned restaurants
Franchisor Disclosure [Line Items]
Number of restaurants	103	94

Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 25, 2022	Dec. 26, 2021
Receivables [Abstract]
Receivables from third-party delivery providers	$ 1,163	$ 1,021
Receivables from franchisees	1,230	927
Receivables from vendors	565	428
Receivables related to gift card sales	359	1,453
Other receivables	115	621
Total accounts receivable	$ 3,432	$ 4,450

Accrued Liabilities (Tables)

9 Months Ended

Sep. 25, 2022

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following:


(in thousands)	SEPTEMBER 25, 2022		DECEMBER 26, 2021
Construction liabilities	$	6,593	$	4,445
Sales tax	3,884		3,337
Self-insurance and general liability reserves	1,223		1,353
Utilities	1,666		1,306
Legal	1,561		105
Credit card fees	1,049		940
Property tax	1,296		638
Contingent rent	911		628
Common area maintenance	624		482
Other	4,877		2,655
Total accrued liabilities	$	23,684	$	15,889

Leases

9 Months Ended

Sep. 25, 2022

Leases [Abstract]

Leases

The following table includes a detail of lease assets and liabilities:


(in thousands)	Consolidated Balance Sheets Classification	SEPTEMBER 25, 2022		DECEMBER 26, 2021
Operating lease right-of-use assets	Operating lease right-of-use assets	$	349,272	$	324,995
Finance lease assets	Property, fixtures and equipment, net	1,426		1,892
Total lease assets		$	350,698	$	326,887

Operating lease liabilities (1) - current	Current portion of operating lease liabilities	38,039		38,186
Operating lease liabilities - non-current	Operating lease liabilities	361,172		330,495
Finance lease liabilities - current	Current portion of long-term debt	628		686
Finance lease liabilities - non-current	Long-term debt, net	902		1,331
Total lease liabilities		$	400,741	$	370,698

_____________

(1) Excludes all variable lease expense.

The components of lease expense are as follows:


(in thousands)	Consolidated Statements of Operations and Comprehensive Income Classification	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Operating lease expense	Other restaurant operating expenses Occupancy expenses Pre-opening expenses General and administrative expenses	$	12,667	$	11,377	$	36,843	$	33,263
Variable lease expense	Food and beverage costs Occupancy expenses General and administrative expenses	3,676		3,202		10,669		9,294
Finance lease expense:
Amortization of leased assets	Depreciation and amortization	127		139		394		405
Interest on lease liabilities	Interest expense	25		43		101		133
Total lease expense (1)		$	16,495	$	14,761	$	48,007	$	43,095

_____________

Supplemental cash flow information related to leases was as follows:


	THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	30,506	$	30,388
Operating cash flows - finance leases	$	101	$	133
Financing cash flows - finance leases	$	385	$	371

Supplemental information related to leases was as follows:


	THIRTY-NINE WEEKS ENDED
	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Weighted-average remaining lease term (in years)
Operating leases	14.8		15.6
Finance leases	3.0		3.7
Weighted-average discount rate (1)
Operating leases	8.6	%	9.1	%
Finance leases	7.7	%	8.0	%

____________

(1) Based on the Company’s incremental borrowing rate.

As of September 25, 2022, future minimum lease payments for operating and finance leases consisted of the following:


(in thousands)	OPERATING LEASES		FINANCE LEASES
Fiscal year
2022	$	10,454	$	194
2023	41,398		607
2024	49,185		607
2025	48,934		227
2026	48,762		38
Thereafter	540,510		39
Total future minimum lease payments (1)	739,243		1,712
Less: imputed interest	(340,032)		(182)
Total present value of lease liabilities	$	399,211	$	1,530

_____________

(1) Excludes approximately $35.0 million of executed operating leases that have not commenced as of September 25, 2022.

Leases

The following table includes a detail of lease assets and liabilities:


(in thousands)	Consolidated Balance Sheets Classification	SEPTEMBER 25, 2022		DECEMBER 26, 2021
Operating lease right-of-use assets	Operating lease right-of-use assets	$	349,272	$	324,995
Finance lease assets	Property, fixtures and equipment, net	1,426		1,892
Total lease assets		$	350,698	$	326,887

Operating lease liabilities (1) - current	Current portion of operating lease liabilities	38,039		38,186
Operating lease liabilities - non-current	Operating lease liabilities	361,172		330,495
Finance lease liabilities - current	Current portion of long-term debt	628		686
Finance lease liabilities - non-current	Long-term debt, net	902		1,331
Total lease liabilities		$	400,741	$	370,698

_____________

(1) Excludes all variable lease expense.

The components of lease expense are as follows:


(in thousands)	Consolidated Statements of Operations and Comprehensive Income Classification	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Operating lease expense	Other restaurant operating expenses Occupancy expenses Pre-opening expenses General and administrative expenses	$	12,667	$	11,377	$	36,843	$	33,263
Variable lease expense	Food and beverage costs Occupancy expenses General and administrative expenses	3,676		3,202		10,669		9,294
Finance lease expense:
Amortization of leased assets	Depreciation and amortization	127		139		394		405
Interest on lease liabilities	Interest expense	25		43		101		133
Total lease expense (1)		$	16,495	$	14,761	$	48,007	$	43,095

_____________

Supplemental cash flow information related to leases was as follows:


	THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	30,506	$	30,388
Operating cash flows - finance leases	$	101	$	133
Financing cash flows - finance leases	$	385	$	371

Supplemental information related to leases was as follows:


	THIRTY-NINE WEEKS ENDED
	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Weighted-average remaining lease term (in years)
Operating leases	14.8		15.6
Finance leases	3.0		3.7
Weighted-average discount rate (1)
Operating leases	8.6	%	9.1	%
Finance leases	7.7	%	8.0	%

____________

(1) Based on the Company’s incremental borrowing rate.

As of September 25, 2022, future minimum lease payments for operating and finance leases consisted of the following:


(in thousands)	OPERATING LEASES		FINANCE LEASES
Fiscal year
2022	$	10,454	$	194
2023	41,398		607
2024	49,185		607
2025	48,934		227
2026	48,762		38
Thereafter	540,510		39
Total future minimum lease payments (1)	739,243		1,712
Less: imputed interest	(340,032)		(182)
Total present value of lease liabilities	$	399,211	$	1,530

_____________

(1) Excludes approximately $35.0 million of executed operating leases that have not commenced as of September 25, 2022.

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 25, 2022	Sep. 26, 2021
Leases [Abstract]
Operating cash flows - operating leases	$ 30,506	$ 30,388
Operating cash flows - finance leases	101	133
Financing cash flows - finance leases	$ 385	$ 371

Net Income Per Common Share (Tables)

9 Months Ended

Sep. 25, 2022

Earnings Per Share [Abstract]

Computations of Basic and Diluted Net Income Per Common Share

The following table sets forth the computations of basic and diluted net income per common share:


	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
(in thousands, except share and per share data)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Numerator:
Net income	$	46	$	783	$	7,393	$	2,546
Denominator:
Weighted average common shares outstanding - basic	59,089,831		45,013,784		59,065,423		45,013,784
Weighted average common shares outstanding - diluted	60,464,062		46,085,650		60,088,622		46,077,196
Net income per common share - basic	$	—	$	0.02	$	0.13	$	0.06
Net income per common share - diluted	$	—	$	0.02	$	0.12	$	0.06
Stock options outstanding not included in diluted net income per common share as their effect is anti-dilutive	1,255,089		90,045		1,708,602		90,045

Summary of Significant Accounting Policies (Details) - Term Facility - New Facilities - Line of Credit $ in Millions	Sep. 25, 2022 USD ($)
Debt Instrument [Line Items]
Fair value of outstanding debt, excluding finance lease liabilities and financing obligations	$ 96.7
Long-term debt	$ 98.8

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Income Taxes (Tables)

9 Months Ended

Sep. 25, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) and Effective Income Tax Rate


	THIRTEEN WEEKS ENDED						THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022			SEPTEMBER 26, 2021			SEPTEMBER 25, 2022			SEPTEMBER 26, 2021
Income before income taxes	$	1,375		$	1,317		$	12,335		$	5,190
Income tax expense	$	(1,329)		$	(534)		$	(4,942)		$	(2,644)
Effective income tax rate	96.7		%	40.5		%	40.1		%	50.9		%

Accounts Receivable (Tables)

9 Months Ended

Sep. 25, 2022

Receivables [Abstract]

Accounts Receivable

Accounts receivable consisted of the following:


(in thousands)	SEPTEMBER 25, 2022		DECEMBER 26, 2021
Receivables from third-party delivery providers	$	1,163	$	1,021
Receivables from franchisees	1,230		927
Receivables from vendors	565		428
Receivables related to gift card sales	359		1,453
Other receivables	115		621
Total accounts receivable	$	3,432	$	4,450

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 25, 2022	Dec. 26, 2021
Current assets:
Cash and cash equivalents	$ 49,371	$ 51,864
Restricted cash	251	251
Accounts receivable	3,432	4,450
Inventory	4,116	4,023
Prepaid expenses	4,331	5,677
Other current assets	3,724	1,432
Total current assets	65,225	67,697
Goodwill	345,219	345,219
Intangible assets, net	142,988	143,000
Operating lease right-of-use assets	349,272	324,995
Property, fixtures and equipment, net of accumulated depreciation of $138,124 and $115,582, respectively	186,579	164,695
Other long-term assets	1,195	1,311
Total assets	1,090,478	1,046,917
Current liabilities:
Accounts payable	7,500	11,060
Accrued liabilities	23,684	15,889
Accrued compensation and deferred payroll taxes	15,306	21,196
Deferred revenues	2,387	4,654
Current portion of operating lease liabilities	38,039	38,186
Current portion of long-term debt	5,628	3,186
Note payable	0	2,352
Total current liabilities	92,544	96,523
Operating lease liabilities	361,172	330,495
Long-term debt, net	95,908	99,753
Deferred income taxes	16,842	12,489
Other long-term liabilities	3,741	3,228
Total liabilities	570,207	542,488
Commitments and contingencies (Note 9)
Equity:
Preferred stock; $0.01 par value; 10,000,000 shares authorized; none issued and outstanding	0	0
Common stock; $0.01 par value; 300,000,000 shares authorized; 59,116,723 and 59,048,446 shares issued and outstanding at September 25, 2022 and December 26, 2021, respectively	591	590
Additional paid-in capital	617,326	608,878
Accumulated deficit	(97,646)	(105,039)
Total equity	520,271	504,429
Total liabilities and equity	$ 1,090,478	$ 1,046,917

Income Taxes

9 Months Ended

Sep. 25, 2022

Income Tax Disclosure [Abstract]

Income Taxes


	THIRTEEN WEEKS ENDED						THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022			SEPTEMBER 26, 2021			SEPTEMBER 25, 2022			SEPTEMBER 26, 2021
Income before income taxes	$	1,375		$	1,317		$	12,335		$	5,190
Income tax expense	$	(1,329)		$	(534)		$	(4,942)		$	(2,644)
Effective income tax rate	96.7		%	40.5		%	40.1		%	50.9		%

The change in the effective income tax rates for the thirteen and thirty-nine weeks ended September 25, 2022 as compared to the same periods in the prior year was primarily due to (i) the change in the valuation allowance for federal and state deferred tax assets, (ii) the benefit of tax credits for FICA taxes on certain employees’ tips, (iii) limitations on deductions of certain compensation and (iv) non-deductible costs associated with the Secondary Offering.

The Company has a blended federal and state statutory rate of approximately 25.0%. The effective income tax rates for the thirteen and thirty-nine weeks ended September 25, 2022 are different than the blended federal and state statutory rate primarily due to (i) the change in the valuation allowance for federal and state deferred tax assets, (ii) the benefit of tax credits for FICA taxes on certain employees’ tips, (iii) limitations on deductions of certain compensation and (iv) non-deductible costs associated with the Secondary Offering

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Equity and Stock-Based Compensation (Tables)

9 Months Ended

Sep. 25, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Options Roll Forward

A summary of stock option activity during the thirty-nine weeks ended September 25, 2022 is as follows:


	NUMBER OF OPTIONS	WEIGHTED AVERAGE EXERCISE PRICE		AGGREGATE INTRINSIC VALUE (in thousands)
Outstanding, December 26, 2021	4,409,331	$	9.48	$	28,598
Granted	1,018,975	$	12.67
Forfeited	(150,059)	$	10.24
Exercised	(68,277)	$	9.19
Outstanding, September 25, 2022	5,209,970	$	10.09	$	23,083

Exercisable, September 25, 2022	2,355,416	$	8.98	$	13,037

The aggregate intrinsic value is based on the difference between the exercise price of the stock option and the closing price of the Company’s common stock on the Nasdaq Global Select Market.

Schedule of Fair Value Non-vested Options at Grant Dates

A summary of the non-vested stock option activity during the thirty-nine weeks ended September 25, 2022 is as follows:


	NUMBER OF OPTIONS	WEIGHTED AVERAGE GRANT DATE FAIR VALUE
Nonvested, December 26, 2021	2,633,391	$	7.03
Granted	1,018,975	$	6.81
Vested	(647,753)	$	4.01
Forfeited	(150,059)	$	7.29
Nonvested, September 25, 2022	2,854,554	$	7.62

Details of Weighted-Average Grant-Date Fair Values and Assumptions Used for Estimating Fair Values

The assumptions utilized to estimate the grant date fair value of the stock option awards granted during the thirty-nine weeks ended September 25, 2022 were as follows:


Expected term (years)	6.5
Expected volatility	52.4	%
Risk-free interest rate	2.6	%
Expected dividend yield	—

Schedule of Unrecognized Stock-based Compensation Expense

The following represents unrecognized stock-based compensation expense and the remaining weighted average vesting period as of September 25, 2022:


	UNRECOGNIZED STOCK-BASED COMPENSATION EXPENSE (in thousands)		REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years)
Stock options	$	11,267	1.5
Restricted stock units	$	371	0.7

Revenues - Change in Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2022	Sep. 26, 2021	Sep. 25, 2022	Sep. 26, 2021
Changes in contract liabilities, deferred gift card revenue
Balance, beginning of period	$ 2,805	$ 2,657	$ 4,410	$ 4,024
Gift card sales	1,218	1,003	4,796	4,088
Gift card redemptions	(1,720)	(1,483)	(6,399)	(5,543)
Gift card breakage	(192)	(165)	(696)	(557)
Balance, end of period	2,111	2,012	2,111	2,012
Changes in contract liabilities, deferred franchise fee revenue
Balance, beginning of period	2,637	2,232	2,536	2,274
Cash received	204	400	434	482
Franchise revenues recognized	(67)	(59)	(196)	(183)
Balance, end of period	$ 2,774	$ 2,573	$ 2,774	$ 2,573

Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		9 Months Ended
	Sep. 19, 2022	Sep. 14, 2022	Sep. 25, 2022	Sep. 26, 2021	Sep. 25, 2022	Sep. 26, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transaction expenses, net		$ 1,600	$ 1,419	$ 126	$ 1,976	$ 752
Common stock available for grant (in shares)			2,987,536		2,987,536
Options granted (in shares)					1,018,975
Requisite service period					3 years
Share-based payment award, expiration period					10 years
Options granted (in shares)					1,018,975
Options granted, grant date fair value (in dollars per share)					$ 6.81
Stock-based compensation expense			$ 2,700	$ 400	$ 7,800	$ 700
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period			1 year		1 year
Options granted (in shares)			38,311		38,311
Options granted, grant date fair value (in dollars per share)			$ 14.36		$ 14.36
Secondary Public Offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock sold (in shares)	4,500,000
Over-Allotment Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock sold (in shares)		675,000

Cover - shares	9 Months Ended
Cover - shares	Sep. 25, 2022	Nov. 03, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 25, 2022
Document Transition Report	false
Entity File Number	001-40866
Entity Registrant Name	First Watch Restaurant Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-4271369
Entity Address, Address Line One	8725 Pendery Place
Entity Address, Address Line Two	Suite 201
Entity Address, City or Town	Bradenton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	34201
City Area Code	941
Local Phone Number	907-9800
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	FWRG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,199,619
Entity Central Index Key	0001789940
Amendment Flag	false
Current Fiscal Year End Date	--12-25
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2022	Sep. 26, 2021	Sep. 25, 2022	Sep. 26, 2021
Revenues:
Total revenues	$ 186,852	$ 157,441	$ 544,417	$ 438,573
Restaurant operating expenses (exclusive of depreciation and amortization shown below):
Food and beverage costs	44,578	35,871	129,200	96,383
Labor and other related expenses	61,262	50,587	175,091	136,586
Other restaurant operating expenses	29,685	23,905	85,761	69,348
Occupancy expenses	15,091	13,969	44,318	41,035
Pre-opening expenses	1,490	510	3,569	2,573
General and administrative expenses	21,689	17,019	63,194	44,360
Depreciation and amortization	8,679	8,203	25,302	23,965
Impairments and loss on disposal of assets	338	98	572	261
Transaction expenses, net	1,419	126	1,976	752
Total operating costs and expenses	184,231	150,288	528,983	415,263
Income from operations	2,621	7,153	15,434	23,310
Interest expense	(1,362)	(6,051)	(3,494)	(18,656)
Other income, net	116	215	395	536
Income before income taxes	1,375	1,317	12,335	5,190
Income tax expense	(1,329)	(534)	(4,942)	(2,644)
Net income	46	783	$ 7,393	$ 2,546
Comprehensive income	$ 46	$ 783
Net (loss) income per common share - basic (in dollars per share)	$ 0	$ 0.02	$ 0.13	$ 0.06
Net (loss) income per common share - diluted (in dollars per share)	$ 0	$ 0.02	$ 0.12	$ 0.06
Weighted average common shares outstanding - basic (in shares)	59,089,831	45,013,784	59,065,423	45,013,784
Weighted average common shares outstanding - diluted (in shares)	60,464,062	46,085,650	60,088,622	46,077,196
Restaurant sales
Revenues:
Total revenues	$ 183,978	$ 155,082	$ 536,329	$ 432,136
Franchise revenues
Revenues:
Total revenues	$ 2,874	$ 2,359	$ 8,088	$ 6,437

Equity and Stock-Based Compensation - Schedule of Stock Options Roll Forward (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 25, 2022 USD ($) $ / shares shares
NUMBER OF OPTIONS
Options outstanding, beginning of period (in shares) \| shares	4,409,331
Options granted (in shares) \| shares	1,018,975
Options forfeited (in shares) \| shares	(150,059)
Options exercised (in shares) \| shares	(68,277)
Options outstanding, end of period (in shares) \| shares	5,209,970
Options exercisable, end of period (in shares) \| shares	2,355,416
WEIGHTED AVERAGE EXERCISE PRICE
Options outstanding, beginning of period, weighted average exercise price (in dollars per share) \| $ / shares	$ 9.48
Options granted, weighted average exercise price (in dollars per share) \| $ / shares	12.67
Options forfeited, weighted average exercise price (in dollars per share) \| $ / shares	10.24
Options exercised, weighted average exercise price (in dollars per share) \| $ / shares	9.19
Options outstanding, end of period, weighted average exercise price (in dollars per share) \| $ / shares	10.09
Options exercisable, end of period, weighted average exercise price (in dollars per share) \| $ / shares	$ 8.98
AGGREGATE INTRINSIC VALUE (in thousands)
Options outstanding, beginning of period, aggregate intrinsic value \| $	$ 28,598
Options outstanding, end of period, aggregate intrinsic value \| $	23,083
Options exercisable, end of period, aggregate intrinsic value \| $	$ 13,037

Accounts Receivable

9 Months Ended

Sep. 25, 2022

Receivables [Abstract]

Accounts Receivable

Accounts receivable consisted of the following:


(in thousands)	SEPTEMBER 25, 2022		DECEMBER 26, 2021
Receivables from third-party delivery providers	$	1,163	$	1,021
Receivables from franchisees	1,230		927
Receivables from vendors	565		428
Receivables related to gift card sales	359		1,453
Other receivables	115		621
Total accounts receivable	$	3,432	$	4,450

Revenues

9 Months Ended

Sep. 25, 2022

Revenue from Contract with Customer [Abstract]

Revenues

The following tables include a detail of liabilities from contracts with customers:


(in thousands)	SEPTEMBER 25, 2022		DECEMBER 26, 2021
Deferred revenues:
Deferred gift card revenue	$	2,111	$	4,410
Deferred franchise fee revenue - current	276		244
Total current deferred revenues	$	2,387	$	4,654
Other long-term liabilities:
Deferred franchise fee revenue - non-current	$	2,498	$	2,292

Changes in deferred gift card contract liabilities were as follows:


	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Deferred gift card revenue:
Balance, beginning of period	$	2,805	$	2,657	$	4,410	$	4,024
Gift card sales	1,218		1,003		4,796		4,088
Gift card redemptions	(1,720)		(1,483)		(6,399)		(5,543)
Gift card breakage	(192)		(165)		(696)		(557)
Balance, end of period	$	2,111	$	2,012	$	2,111	$	2,012

Changes in deferred franchise fee contract liabilities were as follows:


	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Deferred franchise fee revenue:
Balance, beginning of period	$	2,637	$	2,232	$	2,536	$	2,274
Cash received	204		400		434		482
Franchise revenues recognized	(67)		(59)		(196)		(183)
Balance, end of period	$	2,774	$	2,573	$	2,774	$	2,573

Revenues recognized disaggregated by type were as follows:


	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Restaurant sales:
In-restaurant dining sales	$	147,491	$	123,311	$	425,222	$	327,147
Third-party delivery sales	20,105		15,232		60,960		52,584
Take-out sales	16,382		16,539		50,147		52,405
Total restaurant sales	$	183,978	$	155,082	$	536,329	$	432,136

Franchise revenues:
Royalty and system fund contributions	$	2,807	$	2,300	$	7,892	$	6,254
Initial fees	67		59		196		183
Total franchise revenues	$	2,874	$	2,359	$	8,088	$	6,437
Total revenues	$	186,852	$	157,441	$	544,417	$	438,573

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Revenues (Tables)

9 Months Ended

Sep. 25, 2022

Revenue from Contract with Customer [Abstract]

Contract with Customer, Contract Asset, Contract Liability, and Receivable

The following tables include a detail of liabilities from contracts with customers:


(in thousands)	SEPTEMBER 25, 2022		DECEMBER 26, 2021
Deferred revenues:
Deferred gift card revenue	$	2,111	$	4,410
Deferred franchise fee revenue - current	276		244
Total current deferred revenues	$	2,387	$	4,654
Other long-term liabilities:
Deferred franchise fee revenue - non-current	$	2,498	$	2,292

Changes in deferred gift card contract liabilities were as follows:


	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Deferred gift card revenue:
Balance, beginning of period	$	2,805	$	2,657	$	4,410	$	4,024
Gift card sales	1,218		1,003		4,796		4,088
Gift card redemptions	(1,720)		(1,483)		(6,399)		(5,543)
Gift card breakage	(192)		(165)		(696)		(557)
Balance, end of period	$	2,111	$	2,012	$	2,111	$	2,012

Changes in deferred franchise fee contract liabilities were as follows:


	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Deferred franchise fee revenue:
Balance, beginning of period	$	2,637	$	2,232	$	2,536	$	2,274
Cash received	204		400		434		482
Franchise revenues recognized	(67)		(59)		(196)		(183)
Balance, end of period	$	2,774	$	2,573	$	2,774	$	2,573

Disaggregation of Revenue

Revenues recognized disaggregated by type were as follows:


	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
(in thousands)	SEPTEMBER 25, 2022		SEPTEMBER 26, 2021		SEPTEMBER 25, 2022		SEPTEMBER 26, 2021
Restaurant sales:
In-restaurant dining sales	$	147,491	$	123,311	$	425,222	$	327,147
Third-party delivery sales	20,105		15,232		60,960		52,584
Take-out sales	16,382		16,539		50,147		52,405
Total restaurant sales	$	183,978	$	155,082	$	536,329	$	432,136

Franchise revenues:
Royalty and system fund contributions	$	2,807	$	2,300	$	7,892	$	6,254
Initial fees	67		59		196		183
Total franchise revenues	$	2,874	$	2,359	$	8,088	$	6,437
Total revenues	$	186,852	$	157,441	$	544,417	$	438,573

Equity and Stock-Based Compensation - Details of Weighted-Average Grant-Date Fair Values and Assumptions Used for Estimating Fair Values (Details)	9 Months Ended
	Sep. 25, 2022 USD ($)
Share-Based Payment Arrangement [Abstract]
Expected term (years)	6 years 6 months
Expected volatility	52.40%
Risk-free interest rate	2.60%
Expected dividend yield	$ 0

Equity and Stock-Based Compensation

9 Months Ended

Sep. 25, 2022

Share-Based Payment Arrangement [Abstract]

Equity and Stock-Based Compensation

Equity Transactions

During the thirteen weeks ended September 25, 2022, funds managed by the Company’s majority owner, Advent International Corporation, sold 4,500,000 shares of the Company’s common stock through a secondary public offering that was completed on September 19, 2022 (the “Secondary Offering”). The selling stockholders sold an additional 675,000 shares of common stock on October 6, 2022 pursuant to the terms of the underwriters option associated with the Secondary Offering. All net proceeds from the sale of the shares of common stock were distributed to the selling stockholders. The Company incurred approximately $1.6 million of costs that were recorded within Transaction expenses, net on the Consolidated Statements of Operations and Comprehensive Income.

Stock Option Awards

Stock-based awards are granted to employees and non-employee directors. The Company has two compensation plans that provide for the granting of stock options and other share-based awards to key employees and non-employee members of the board of directors. The 2017 Omnibus Equity Incentive Plan (the “2017 Equity Plan”) and the 2021 Equity Incentive Plan (the “2021 Equity Plan”) provide for the grant of incentive stock options, non-qualified stock options, restricted stock awards, restricted stock units, stock appreciation rights and stock-based awards. No awards were granted under the 2017 Equity Plan during the thirteen and thirty-nine weeks ended September 25, 2022 and the Company does not intend to grant any further awards under the 2017 Equity Plan. At September 25, 2022, a total of 2,987,536 common shares were available to grant under the 2021 Equity Plan.

A total of 1,018,975 time-based stock option awards were granted under the 2021 Equity Plan during the thirty-nine weeks ended September 25, 2022, which vest over a three-year requisite service period from the date of grant and expire 10 years after the grant date.

A summary of stock option activity during the thirty-nine weeks ended September 25, 2022 is as follows:


	NUMBER OF OPTIONS	WEIGHTED AVERAGE EXERCISE PRICE		AGGREGATE INTRINSIC VALUE (in thousands)
Outstanding, December 26, 2021	4,409,331	$	9.48	$	28,598
Granted	1,018,975	$	12.67
Forfeited	(150,059)	$	10.24
Exercised	(68,277)	$	9.19
Outstanding, September 25, 2022	5,209,970	$	10.09	$	23,083

Exercisable, September 25, 2022	2,355,416	$	8.98	$	13,037

The aggregate intrinsic value is based on the difference between the exercise price of the stock option and the closing price of the Company’s common stock on the Nasdaq Global Select Market.

A summary of the non-vested stock option activity during the thirty-nine weeks ended September 25, 2022 is as follows:


	NUMBER OF OPTIONS	WEIGHTED AVERAGE GRANT DATE FAIR VALUE
Nonvested, December 26, 2021	2,633,391	$	7.03
Granted	1,018,975	$	6.81
Vested	(647,753)	$	4.01
Forfeited	(150,059)	$	7.29
Nonvested, September 25, 2022	2,854,554	$	7.62

Fair value of Stock Options

The fair value of stock option awards is estimated on the date of grant using the Black-Scholes valuation model. The assumptions utilized to estimate the grant date fair value of the stock option awards granted during the thirty-nine weeks ended September 25, 2022 were as follows:


Expected term (years)	6.5
Expected volatility	52.4	%
Risk-free interest rate	2.6	%
Expected dividend yield	—

The Company does not have sufficient historical stock option exercise activity and therefore Management estimated the expected term of stock options granted using the simplified method, which represents the mid-point between the vesting period and the contractual term for each grant. The expected volatility of stock options is based on the historical volatilities of a set of publicly traded peer companies in a similar industry. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the expected term of the stock option award. The expected dividend yield is based on the fact that the Company has never paid cash dividends and does not have intentions of paying dividends in the foreseeable future.

Restricted Stock Units

During the thirty-nine weeks ended September 25, 2022, a total of 38,311 restricted stock units were granted under the 2021 Equity Plan at the weighted average grant date fair value of $14.36. The restricted stock units will vest over a one-year requisite service period from the date of grant.

Stock-Based Compensation Expense

Stock-based compensation expense was $2.7 million and $7.8 million during the thirteen and thirty-nine weeks ended September 25, 2022, respectively. Stock based compensation expense was $0.4 million and $0.7 million during the thirteen and thirty-nine weeks ended September 26, 2021, respectively.

Unrecognized Stock-Based Compensation Expense

The following represents unrecognized stock-based compensation expense and the remaining weighted average vesting period as of September 25, 2022:


	UNRECOGNIZED STOCK-BASED COMPENSATION EXPENSE (in thousands)		REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years)
Stock options	$	11,267	1.5
Restricted stock units	$	371	0.7

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 25, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The Company reports financial information on a 52- or 53-week fiscal year ending on the last Sunday of each calendar year. The Company’s fiscal quarters are comprised of 13 weeks each, except for fiscal years consisting of 53 weeks for which the fourth quarter will consist of 14 weeks, and end on the 13th Sunday of each quarter (14th Sunday of the fourth quarter, when applicable). The quarters ended September 25, 2022 and September 26, 2021 were both 13-week periods. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K as of and for the year ended December 26, 2021 (“2021 Form 10-K”). The accompanying unaudited interim consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements included in the 2021 Form 10-K and include all adjustments necessary for the fair statement of the consolidated financial statements for the interim periods presented. The results of operations for interim periods are not necessarily indicative of the results to be expected for other interim periods or the entire fiscal year. Reclassifications The Company reclassified certain items in the accompanying unaudited interim consolidated financial statements for the prior periods to be comparable with the classification for the current period. These reclassifications are related to the presentation of Pre-opening expenses on the Consolidated Statements of Operations and Comprehensive Income for the prior periods presented, which were previously included in Other restaurant operating expenses and Occupancy expenses. These reclassifications had no effect on previously reported net income and comprehensive income. Use of Estimates The preparation of the unaudited interim consolidated financial statements in accordance with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates and such differences could be material. Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The carrying amounts of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable, accrued expenses, note payable and other current liabilities, approximate their fair values due to their short-term maturities. At September 25, 2022, the Company’s outstanding debt under the facilities pursuant to the credit agreement executed in October 2021 had a fair value of $96.7 million and a carrying value of $98.8 million. Summary of Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 was effective beginning March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. Management is currently evaluating its contracts and the optional expedients provided by the new standard. Recent accounting guidance not discussed herein is not applicable, did not have, or is not expected to have a material impact to the Company.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 25, 2022	Sep. 26, 2021
Cash flows from operating activities:
Net income	$ 7,393	$ 2,546
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	25,302	23,965
Stock-based compensation	7,821	746
Non-cash operating lease costs	11,907	9,582
Non-cash portion of gain on lease modifications	(84)	0
Deferred income taxes	4,353	2,526
Amortization of debt discount and deferred issuance costs	334	958
Impairments and loss on disposal of assets	572	261
Changes in assets and liabilities:
Accounts receivable	1,018	1,014
Inventory	(93)	(558)
Prepaid expenses	1,346	(814)
Deferred offering costs	0	(2,454)
Other assets, current and long-term	(2,176)	(639)
Accounts payable	(3,560)	2,757
Accrued liabilities and other long-term liabilities	6,032	8,406
Accrued compensation and deferred payroll taxes, current and long-term	(5,890)	4,399
Deferred revenues, current and long-term	(2,061)	(1,714)
Operating lease liabilities	(5,570)	(6,716)
Net cash provided by operating activities	46,644	44,265
Cash flows from investing activities:
Capital expenditures	(44,985)	(27,065)
Purchase of intangible assets	(715)	(359)
Net cash used in investing activities	(45,700)	(27,424)
Cash flows from financing activities:
Repayments of note payable	(2,352)	0
Repayments of long-term debt, including finance lease liabilities	(1,635)	(2,581)
Proceeds from exercise of stock options, net of employee taxes paid	628	0
Contingent consideration payment	(78)	0
Payment of deferred offering costs	0	(1,255)
Net cash used in financing activities	(3,437)	(3,836)
Net (decrease) increase in cash and cash equivalents and restricted cash	(2,493)	13,005
Cash and cash equivalents and restricted cash, beginning of period	52,115	39,097
Cash and cash equivalents and restricted cash, end of period	49,622	52,102
Supplemental cash flow information:
Cash paid for interest	2,800	14,763
Cash paid for income taxes, net of refunds	777	55
Supplemental disclosures of non-cash investing and financing activities:
Interest converted to long-term debt	0	3,062
Leased assets obtained in exchange for new operating lease liabilities	37,961	23,391
Leased assets obtained in exchange for new finance lease liabilities	89	185
Remeasurements and terminations of operating lease assets and lease liabilities	(1,861)	(2,396)
Remeasurements and terminations of finance lease assets and lease liabilities	(191)	9
Increase (Decrease) in liabilities from acquisition of property, fixtures and equipment	$ 2,148	$ (1,153)

Accrued Liabilities

9 Months Ended

Sep. 25, 2022

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued LiabilitiesAccrued liabilities consisted of the following:


(in thousands)	SEPTEMBER 25, 2022		DECEMBER 26, 2021
Construction liabilities	$	6,593	$	4,445
Sales tax	3,884		3,337
Self-insurance and general liability reserves	1,223		1,353
Utilities	1,666		1,306
Legal	1,561		105
Credit card fees	1,049		940
Property tax	1,296		638
Contingent rent	911		628
Common area maintenance	624		482
Other	4,877		2,655
Total accrued liabilities	$	23,684	$	15,889

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 25, 2022
Accounting Policies [Abstract]
Fiscal Period, Policy	The Company reports financial information on a 52- or 53-week fiscal year ending on the last Sunday of each calendar year. The Company’s fiscal quarters are comprised of 13 weeks each, except for fiscal years consisting of 53 weeks for which the fourth quarter will consist of 14 weeks, and end on the 13th Sunday of each quarter (14th Sunday of the fourth quarter, when applicable). The quarters ended September 25, 2022 and September 26, 2021 were both 13-week periods.
Basis of Presentation	The accompanying unaudited interim consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).
Consolidation, Policy	Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements included in the 2021 Form 10-K and include all adjustments necessary for the fair statement of the consolidated financial statements for the interim periods presented. The results of operations for interim periods are not necessarily indicative of the results to be expected for other interim periods or the entire fiscal year.
Reclassifications	ReclassificationsThe Company reclassified certain items in the accompanying unaudited interim consolidated financial statements for the prior periods to be comparable with the classification for the current period. These reclassifications are related to the presentation of Pre-opening expenses on the Consolidated Statements of Operations and Comprehensive Income for the prior periods presented, which were previously included in Other restaurant operating expenses and Occupancy expenses. These reclassifications had no effect on previously reported net income and comprehensive income.
Use of Estimates	Use of Estimates The preparation of the unaudited interim consolidated financial statements in accordance with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates and such differences could be material.
Fair Value of Financial Instruments	Fair Value of Financial InstrumentsCertain assets and liabilities are carried at fair value. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The carrying amounts of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable, accrued expenses, note payable and other current liabilities, approximate their fair values due to their short-term maturities. At September 25, 2022, the Company’s outstanding debt under the facilities pursuant to the credit agreement executed in October 2021 had a fair value of $96.7 million and a carrying value of $98.8 million.
Summary of Recently Issued Accounting Pronouncements	Summary of Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 was effective beginning March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. Management is currently evaluating its contracts and the optional expedients provided by the new standard. Recent accounting guidance not discussed herein is not applicable, did not have, or is not expected to have a material impact to the Company.

Leases - Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 25, 2022	Dec. 26, 2021
Leases [Abstract]
Operating lease right-of-use assets	$ 349,272	$ 324,995
Finance lease assets	1,426	1,892
Total lease assets	350,698	326,887
Operating lease liabilities - current	38,039	38,186
Operating lease liabilities - non-current	361,172	330,495
Finance lease liabilities - current	628	686
Finance lease liabilities - non-current	902	1,331
Total lease liabilities	$ 400,741	$ 370,698
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, fixtures and equipment, net of accumulated depreciation of $138,124 and $115,582, respectively	Property, fixtures and equipment, net of accumulated depreciation of $138,124 and $115,582, respectively
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of long-term debt	Current portion of long-term debt
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term debt, net	Long-term debt, net

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 27, 2020		266,667	45,013,784
Beginning balance at Dec. 27, 2020	$ 320,866	$ 3	$ 450	$ 423,345	$ (102,932)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	2,546				2,546
Stock-based compensation	746			746
Ending balance (in shares) at Sep. 26, 2021		266,667	45,013,784
Ending balance at Sep. 26, 2021	324,158	$ 3	$ 450	424,091	(100,386)
Beginning balance (in shares) at Jun. 27, 2021		266,667	45,013,784
Beginning balance at Jun. 27, 2021	322,945	$ 3	$ 450	423,661	(101,169)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	783				783
Stock-based compensation	430			430
Ending balance (in shares) at Sep. 26, 2021		266,667	45,013,784
Ending balance at Sep. 26, 2021	324,158	$ 3	$ 450	424,091	(100,386)
Beginning balance (in shares) at Dec. 26, 2021			59,048,446
Beginning balance at Dec. 26, 2021	504,429		$ 590	608,878	(105,039)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	7,393				7,393
Stock-based compensation	7,821			7,821
Common stock issued upon exercise of stock options, net (in shares)			68,277
Common stock issued upon exercise of stock options, net	628		$ 1	627
Ending balance (in shares) at Sep. 25, 2022			59,116,723
Ending balance at Sep. 25, 2022	520,271		$ 591	617,326	(97,646)
Beginning balance (in shares) at Jun. 26, 2022			59,075,562
Beginning balance at Jun. 26, 2022	517,122		$ 591	614,223	(97,692)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	46				46
Stock-based compensation	2,719			2,719
Common stock issued upon exercise of stock options, net (in shares)			41,161
Common stock issued upon exercise of stock options, net	384		$ 0	384
Ending balance (in shares) at Sep. 25, 2022			59,116,723
Ending balance at Sep. 25, 2022	$ 520,271		$ 591	$ 617,326	$ (97,646)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=124431353&loc=SL124452729-227067

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI https://asc.fasb.org/extlink&oid=126954810&loc=d3e3602-108585

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669619-108580

Reference 25: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669625-108580

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI https://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Leases - Supplemental Information Related to Leases (Details)	Sep. 25, 2022	Sep. 26, 2021
Weighted-average remaining lease term (in years)
Operating leases	14 years 9 months 18 days	15 years 7 months 6 days
Finance leases	3 years	3 years 8 months 12 days
Weighted-average discount rate
Operating leases	8.60%	9.10%
Finance leases	7.70%	8.00%