Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jan. 01, 2019	Mar. 13, 2019	Jun. 19, 2018
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jan. 01, 2019
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	TACO
Entity Registrant Name	Del Taco Restaurants, Inc.
Entity Central Index Key	0001585583
Current Fiscal Year End Date	--01-01
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		37,121,234
Entity Public Float			$ 442,800,000
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 02, 2018
Current assets:
Goodwill	$ 321,531	$ 320,638
Successor
Current assets:
Cash and cash equivalents	7,153	6,559
Accounts and other receivables, net	3,167	3,828
Inventories	2,932	2,712
Prepaid expenses and other current assets	4,935	6,784
Assets held for sale	14,794	0
Total current assets	32,981	19,883
Property and equipment, net	161,429	156,124
Goodwill	321,531	320,638
Trademarks	220,300	220,300
Intangible assets, net	18,507	21,498
Other assets, net	4,208	3,881
Total assets	758,956	742,324
Current liabilities:
Accounts payable	19,877	18,759
Other accrued liabilities	34,785	35,257
Current portion of capital lease obligations and deemed landlord financing liabilities	1,033	1,415
Total current liabilities	55,695	55,431
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net	178,664	170,639
Deferred income taxes	69,471	68,574
Other non-current liabilities	32,852	31,431
Total liabilities	336,682	326,075
Commitments and contingencies
Shareholders’ equity:
Preferred Stock, Value, Issued	0	0
Common Stock, Value, Issued	4	4
Additional paid-in capital	336,941	349,334
Accumulated other comprehensive income	180	14
Retained earnings	85,149	66,897
Total shareholders’ equity	422,274	416,249
Total liabilities and shareholders’ equity	$ 758,956	$ 742,324

Consolidated Balance Sheets (Parenthetical) - Successor - $ / shares	Jan. 01, 2019	Jan. 02, 2018
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	37,305,342	38,434,274
Common stock, shares outstanding (in shares)	37,305,342	38,434,274

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended						4 Months Ended		6 Months Ended	12 Months Ended
	Sep. 11, 2018	Jun. 19, 2018	Mar. 27, 2018	Sep. 12, 2017	Jun. 20, 2017	Mar. 28, 2017	Jan. 01, 2019	Jan. 02, 2018	Dec. 29, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Restaurant operating expenses:
Pre-opening costs											$ 1,591,000
Successor
Revenue:
Total revenue	$ 117,830,000	$ 117,813,000	$ 112,554,000	$ 110,988,000	$ 108,581,000	$ 105,345,000	$ 157,293,000	$ 146,542,000		$ 505,490,000	471,456,000	$ 452,083,000
Restaurant operating expenses:
Labor and related expenses										151,954,000	145,012,000	135,725,000
Occupancy and other operating expenses										97,745,000	92,825,000	88,908,000
General and administrative										43,773,000	38,154,000	37,220,000
Franchise advertising expenses										13,300,000	0	0
Depreciation and amortization										25,794,000	23,362,000	23,129,000
Occupancy and other - franchise subleases and other										3,167,000	2,608,000	2,207,000
Pre-opening costs									$ 700,000	1,584,000	1,591,000	731,000
Impairment of long-lived assets										3,861,000	0	0
Restaurant closure charges, net										394,000	191,000	435,000
Loss on disposal of assets, net										1,012,000	1,075,000	312,000
Total operating expenses										471,457,000	430,209,000	408,783,000
Income from operations	9,195,000	7,804,000	6,338,000	9,533,000	10,276,000	8,613,000	10,696,000	12,825,000		34,033,000	41,247,000	43,300,000
Other expense (income), net:
Interest expense										9,075,000	7,200,000	6,327,000
Other income										(660,000)	0	0
Transaction-related costs										0	0	731,000
Total other expense, net										8,415,000	7,200,000	7,058,000
Income from operations before provision (benefit) for income taxes										25,618,000	34,047,000	36,242,000
Provision (benefit) for income taxes									15,329,000	6,659,000	(15,824,000)	15,329,000
Net income	$ 5,874,000	$ 4,210,000	$ 3,229,000	$ 5,101,000	$ 5,330,000	$ 4,238,000	$ 5,646,000	$ 35,202,000	$ 20,913,000	18,959,000	49,871,000	20,913,000
Other comprehensive income (loss):
Change in fair value of interest rate cap, net of tax										122,000	(162,000)	172,000
Reclassification of interest rate cap amortization included in net income, net of tax										44,000	4,000	0
Total other comprehensive income (loss), net										166,000	(158,000)	172,000
Comprehensive income										$ 19,125,000	$ 49,713,000	$ 21,085,000
Earnings per share:
Basic (in dollars per share)	$ 0.15	$ 0.11	$ 0.08	$ 0.13	$ 0.14	$ 0.11	$ 0.15	$ 0.91	$ 0.54	$ 0.50	$ 1.29	$ 0.54
Diluted (in dollars per share)	$ 0.15	$ 0.11	$ 0.08	$ 0.13	$ 0.13	$ 0.10	$ 0.15	$ 0.89	$ 0.53	$ 0.49	$ 1.25	$ 0.53
Weighted-average shares outstanding:
Basic (in shares)									38,725,541	38,106,057	38,689,508	38,725,541
Diluted (in shares)									39,274,649	38,683,959	39,949,907	39,274,649
Company restaurant sales \| Successor
Revenue:
Revenue										$ 471,193,000	$ 452,148,000	$ 434,064,000
Franchise revenue \| Successor
Revenue:
Revenue										17,569,000	16,464,000	15,676,000
Franchise advertising contributions \| Successor
Revenue:
Revenue										13,300,000	0	0
Franchise sublease and other income \| Successor
Revenue:
Revenue										3,428,000	2,844,000	2,343,000
Food and paper costs \| Successor
Restaurant operating expenses:
Food and paper costs										$ 128,873,000	$ 125,391,000	$ 120,116,000

Consolidated Statements of Shareholders' Equity - Successor - USD ($)	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings (Accumulated Deficit)
Beginning Balance at Dec. 29, 2015	$ 368,377,000	$ 4,000	$ 372,260,000	$ 0	$ (3,887,000)
Beginning Balance, Shares at Dec. 29, 2015		38,802,425
Net income (loss)	20,913,000				20,913,000
Stock-based compensation	4,096,000	$ 0	4,096,000
Common stock of Del Taco Restaurants, Inc. released from possible redemption, Shares		0
Other comprehensive income (loss), net of tax	172,000			172,000
Comprehensive income (loss)	21,085,000
Stock-based compensation	5,000		5,000
Tax withholdings on restricted stock vesting	(916,000)		(916,000)
Restricted stock awards vested, shares		164,336
Exercise of stock options, shares		500
Issuance of common stock (in shares)		1,533,542
Issuance of common stock in exchange for warrants	0	$ 0	0
Repurchase of common stock, shares		(1,347,300)
Repurchase of common stock, value	(15,314,000)		(15,314,000)
Ending Balance at Jan. 03, 2017	377,333,000	$ 4,000	360,131,000	172,000	17,026,000
Ending Balance, Shares at Jan. 03, 2017		39,153,503
Net income (loss)	49,871,000				49,871,000
Other comprehensive income (loss), net of tax	(158,000)			(158,000)
Comprehensive income (loss)	49,713,000
Stock-based compensation	4,876,000		4,876,000
Tax withholdings on restricted stock vesting	(1,923,000)		(1,923,000)
Restricted stock awards vested, shares		257,518
Restricted stock awards vested, value		$ 0
Exercise of stock options, shares		9,750
Exercise of stock options, value	99,000		99,000
Repurchase of common stock, shares		(986,497)
Stock Repurchased During Period, Value		$ 0
Repurchase of common stock, value	(13,849,000)		(13,849,000)
Ending Balance at Jan. 02, 2018	416,249,000	$ 4,000	349,334,000	14,000	66,897,000
Ending Balance, Shares at Jan. 02, 2018		38,434,274
Adjustment for adoption of new revenue recognition standard, net of tax	(707,000)				(707,000)
Net income (loss)	18,959,000				18,959,000
Other comprehensive income (loss), net of tax	166,000			166,000
Comprehensive income (loss)	19,125,000
Stock-based compensation	6,079,000		6,079,000
Tax withholdings on restricted stock vesting	(2,378,000)		(2,378,000)
Restricted stock awards vested, shares		257,389
Restricted stock awards vested, value		$ 0
Exercise of stock options, shares		21,750
Exercise of stock options, value	222,000		222,000
Repurchase of common stock, shares		(1,408,071)
Stock Repurchased During Period, Value		$ 0
Repurchase of common stock, value	(16,316,000)		(16,316,000)
Ending Balance at Jan. 01, 2019	$ 422,274,000	$ 4,000	$ 336,941,000	$ 180,000	$ 85,149,000
Ending Balance, Shares at Jan. 01, 2019		37,305,342

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Investing activities
Proceeds from Divestiture of Businesses		$ 2,192
Successor
Operating activities
Net income	$ 18,959	49,871	$ 20,913
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts	45	0	0
Depreciation and amortization	25,794	23,362	23,129
Amortization of favorable and unfavorable lease assets and liabilities, net	(767)	(809)	(607)
Amortization of deferred financing costs and interest rate cap	445	389	392
Stock-based compensation	6,079	4,876	4,096
Impairment of long-lived assets	3,861	0	0
Deferred income taxes	1,097	(22,594)	10,741
Loss on disposal of assets, net	1,012	1,075	312
Restaurant closure charges, net	(449)	(379)	(179)
Other Noncash Income	(523)	0	0
Changes in operating assets and liabilities:
Accounts and other receivables, net	616	313	(921)
Inventories	(220)	6	88
Prepaid expenses and other current assets	1,949	(2,580)	(659)
Other assets	(125)	(162)	(59)
Accounts payable	2	2,332	(404)
Other accrued liabilities	(488)	(1,526)	3,733
Other non-current liabilities	3,647	2,856	(3,387)
Net cash provided by operating activities	61,832	57,788	57,546
Investing activities
Purchases of property and equipment	(48,032)	(50,627)	(45,853)
Proceeds from disposal of property and equipment	1,323	9,907	3,423
Purchases of other assets	(1,474)	(1,033)	(1,333)
Acquisition of franchisees	(1,841)	(1,128)	(3,891)
Proceeds from Divestiture of Businesses	0	2,192	0
Net cash used in investing activities	(50,024)	(40,689)	(47,654)
Financing activities
Proceeds from deemed landlord financing liabilities	2,675	3,925	1,974
Repurchase of common stock and warrants	(16,316)	(13,849)	(15,314)
Payment of tax withholding related to restricted stock vesting, option exercises and distribution of restricted stock units	(2,378)	(1,923)	(916)
Payments on capital leases and deemed landlord financing	(1,417)	(1,587)	(1,728)
Proceeds from revolving credit facility	31,000	31,500	24,000
Payments on revolving credit facility	(25,000)	(37,500)	(19,000)
Payment for interest rate cap	0	0	(312)
Proceeds from Stock Options Exercised	222	99	5
Net cash used in financing activities	(11,214)	(19,335)	(11,291)
Increase (decrease) in cash and cash equivalents	594	(2,236)	(1,399)
Cash and cash equivalents at beginning of period	6,559	8,795	10,194
Cash and cash equivalents at end of period	7,153	6,559	8,795
Supplemental cash flow information:
Cash paid during the period for interest	8,823	6,873	6,328
Cash paid during the period for income taxes, net of tax refunds	3,061	9,441	3,531
Supplemental schedule of non-cash activities:
Increase (decrease) of purchases of property and equipment in accounts payable and accrued liabilities, net	556	2,305	64
Write-offs against bad debt reserves	26	0	72
Amortization of interest rate cap into net income, net of tax	44	4	0
Change in other asset for fair value of interest rate cap recorded to other comprehensive (loss) income, net of tax	$ 122	$ (162)	$ 172

Description of Business	12 Months Ended
Description of Business	Jan. 01, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Del Taco Restaurants, Inc. (f/k/a Levy Acquisition Corp. (“LAC”)) is a Delaware corporation headquartered in Lake Forest, California. The consolidated financial statements include the accounts of Del Taco Restaurants, Inc. and its wholly owned subsidiaries (collectively, the “Company” or “Del Taco”) one of which includes Del Taco LLC which has all of the material assets and operations of the Company. The Company develops, franchises, owns, and operates Del Taco quick-service Mexican-American restaurants. At January 1, 2019, there were 322 company-operated and 258 franchise-operated Del Taco restaurants located in 14 states, including one franchise-operated unit in Guam. At January 2, 2018, there were 312 company-operated and 252 franchise-operated Del Taco restaurants located in 14 states, including one franchise-operated unit in Guam. The Company was originally incorporated in Delaware on August 2, 2013 as a special purpose acquisition company, formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more businesses. On June 30, 2015 (the "Closing Date"), the Company consummated its business combination with Del Taco Holdings, Inc. (“DTH”) pursuant to the agreement and plan of merger dated as of March 12, 2015 by and among LAC, Levy Merger Sub, LLC (“Levy Merger Sub”), LAC’s wholly owned subsidiary, and DTH (the “Merger Agreement”). Under the Merger Agreement, Levy Merger Sub merged with and into DTH, with DTH surviving the merger as a wholly-owned subsidiary of the Company (the “Business Combination” or “Merger”). In connection with the closing of the Business Combination, the Company changed its name from Levy Acquisition Corp. to Del Taco Restaurants, Inc.

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Jan. 01, 2019

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The Company’s fiscal year ends on the Tuesday closest to December 31. Fiscal years 2018 and 2017 are both fifty-two week periods. In a fifty-two week fiscal year, the first, second and third quarters each include twelve weeks of operations and the fourth quarter includes sixteen weeks of operations. Fiscal year 2016 is a fifty-three week period. In a fifty-three week fiscal year, the first, second and third quarters each include twelve weeks of operations and the fourth quarter includes seventeen weeks of operations. For fiscal year 2018, the Company’s financial statements reflect the fifty-two weeks ended January 1, 2019. For fiscal year 2017, the Company's financial statements reflect the fifty-two weeks ended January 2, 2018. For fiscal year 2016, the Company’s financial statements reflect the fifty-three weeks ended January 3, 2017.

Effective January 3, 2018 (the first day of fiscal year 2018), the Company adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), as discussed below in Note 2, using the modified retrospective method of transition. Current year results have been prepared in accordance with the new standards.

Principles of Consolidation

The consolidated financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and the rules and regulations of Securities and Exchange Commission (“SEC”). The accompanying consolidated financial statements include the accounts of the Company and its wholly and majority owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that such estimates have been based on reasonable and supportable assumptions and the resulting estimates are reasonable for use in the preparation of the consolidated financial statements. Actual results could differ from these estimates. The Company’s significant estimates include estimates for impairment of goodwill, intangible assets and property and equipment, valuations provided in business combinations, insurance reserves, restaurant closure reserves, stock-based compensation, contingent liabilities, certain leasing activities and income tax valuation allowances.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Variable Interest Entities

In accordance with Accounting Standards Codification ("ASC") 810, Consolidation, the Company applies the guidance related to variable interest entities ("VIE"), which defines the process for how an enterprise determines which party consolidates a VIE as primarily a qualitative analysis. The enterprise that consolidates the VIE (the primary beneficiary) is defined as the enterprise with (1) the power to direct activities of the VIE that most significantly affect the VIE's economic performance and (2) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. The Company franchises its operations through franchise agreements entered into with franchisees and therefore, the Company does not possess any ownership interests in franchise entities or other affiliates. The franchise agreements are designed to provide the franchisee with key decision-making ability to enable it to oversee its operations and to have a significant impact on the success of the franchise, while the Company’s decision-making rights are related to protecting the Company’s brand. Based upon the Company’s analysis of all the relevant facts and considerations of the franchise entities, the Company has concluded that the franchise agreements are not variable interest entities.

Revenue Recognition

Company Restaurant Sales from the operation of company-operated restaurants are recognized when food and service is delivered to customers. The Company reports revenue net of promotional allowances as well as sales taxes collected from customers and remitted to governmental taxing authorities.

Franchise Revenue is comprised of (i) development fees, (ii) franchise fees, (iii) on-going royalties, (iv) renewal fees and (v) other franchise revenue. Development and franchise fees, portions of which are collected in advance and are non-refundable, received pursuant to individual development agreements, grant the right to develop franchise-operated restaurants in future periods in specific geographic areas. Both development fees and franchise fees are deferred and recognized as revenue over the term of the related franchise agreement for the respective restaurant and renewal fees are deferred and recognized over the term of the renewal agreement. Development fees and franchise fees are also generally recognized as revenue upon the termination of the development agreement with the franchisee. Deferred development fees and deferred franchise fees are included in other non-current liabilities on the consolidated balance sheets. Royalties from franchise-operated restaurants are based on a percentage of franchise restaurant sales and are recognized in the period the related franchise-operated restaurant sales occur. To a lessor extent, Franchise Revenue also includes pass-through fees for services such as software maintenance and technology subscriptions since we are considered the principal related to the purchase and sale of the services to the franchisee and have no remaining performance obligations. The related expenses are recognized in general and administrative expenses.

Franchise Sublease and Other Income is comprised of rental income associated with properties leased or subleased to franchisees and is recognized as revenue on an accrual basis. In addition, Franchise Advertising Contributions consist of a percentage of franchise restaurant's net sales, typically 4%, paid to the Company for advertising and promotional services that the Company provides. The offset is recorded to Franchise Advertising Expenses. As well as other franchise income related to information technology hardware such as point of sale equipment, tablets, kitchen display systems, servers, scanners and printers that we occasionally purchase from third party vendors and then sell to franchisees. Since we are considered the principal related to the purchase and sale of the hardware to the franchisee and have no remaining performance obligations, the franchisee reimbursement is recognized as Franchise Sublease and Other Income upon transfer of the hardware. The related expenses are recognized in Occupancy and Other - Franchise Subleases and Other.

Gift Cards

The Company sells gift cards to customers in its restaurants. The gift cards sold to customers have no stated expiration dates and are subject to potential escheatment laws in the various jurisdictions in which the Company operates. Deferred gift card income totaled $2.8 million and $2.5 million as of January 1, 2019 and January 2, 2018, respectively. The current portion of the deferred gift card income is included in other accrued liabilities on the consolidated balance sheets and totaled $1.5 million and $1.3 million as of January 1, 2019 and January 2, 2018. The non-current portion of the deferred gift card income was $1.3 million and $1.2 million as January 1, 2019 and January 2, 2018, respectively, and is included in other non-current liabilities on the consolidated balance sheets. The Company recognizes revenue from gift cards: (i) when the gift card is redeemed by the customer; or (ii) under the delayed recognition method, when the likelihood of the gift card being redeemed by the customer is remote (gift card breakage) and the Company determines that there is not a legal obligation to remit the unredeemed gift cards to the relevant jurisdiction. The determination of the gift card breakage rate is based upon Company specific historical redemption patterns. Recognized gift card breakage revenue was not significant to any period presented in the consolidated statements of comprehensive income. Any future revisions to the estimated breakage rate may result in changes in the amount of breakage revenue recognized in future periods but is not expected to be significant.

Cash and Cash Equivalents

The Company considers short-term, highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Amounts receivable from credit card issuers are typically converted to cash within 2 to 4 days of the original sales transaction and are considered to be cash equivalents.

Accounts and Other Receivables, Net

Accounts and other receivables, net consist primarily of receivables from franchisees, sublease tenants, a vendor and landlords. Receivables from franchisees include sublease rents, royalties, services and contractual marketing fees associated with the franchise agreements. Sublease tenant receivables relate to subleased properties where the Company is a party and obligated on the primary lease agreement. The vendor receivable is for earned reimbursements from a vendor and the landlord receivables are for earned landlord reimbursement related to restaurants opened. The allowance for doubtful accounts is based on historical experience and a review on a specific identification basis of the collectability of existing receivables and totaled $0.1 million as of both January 1, 2019 and January 2, 2018.

Vendor Allowances

The Company receives support from one of its vendors in the form of reimbursements. The reimbursements are agreed upon with the vendor, but do not represent specific, incremental, identifiable costs incurred by the Company in selling the vendor’s products. Such reimbursements are recorded as a reduction of the costs of purchasing the vendor’s products. The non-current portion of reimbursements received by the Company in advance is included in other non-current liabilities on the consolidated balance sheets and totaled $0.7 million and $1.1 million as of January 1, 2019 and January 2, 2018, respectively. The current portion of these reimbursements is included in other accrued liabilities on the consolidated balance sheets and totaled $0.4 million as of both January 1, 2019 and January 2, 2018.

Inventories

Inventories, consisting of food items, packaging and beverages, are valued at the lower of cost (first-in, first-out method) or market.

Assets Held for Sale

Assets held for sale represent the costs for three restaurants opened during 2018 that the Company plans to sell and lease back within the next year. Gains realized on sale-leaseback transactions are deferred and amortized over the lease terms and losses are recognized immediately in accordance with ASC 840, Leases. Assets held for sale also includes the net book value of property and equipment the Company plans to sell within the next year for 13 company-operated restaurants that the Company plans to sell to existing franchisees within the next year. If the determination is made that the Company no longer expects to sell an asset within the next year, the asset is reclassified out of assets held for sale. Assets held for sale consisted of the following at each fiscal year-end (in thousands):



	January 1, 2019		January 2, 2018
Assets held for sale and leaseback	$	12,771	$	—
Other property and equipment held for sale	2,023		—
Assets held for sale	$	14,794	$	—

Property and Equipment

Property and equipment includes land, buildings, leasehold improvements, restaurant and other equipment, restaurant property leased to others and buildings under capital leases. Land, buildings, leasehold improvements, property and equipment acquired in business combinations are initially recorded at their estimated fair value. Land, buildings, leasehold improvements, property and equipment acquired or constructed in the normal course of business are initially recorded at cost. The Company provides for depreciation and amortization based on the estimated useful lives of assets using the straight-line method.

Estimated useful lives for property and equipment are as follows:



Buildings		20–35 years
Leasehold improvements		Shorter of useful life (typically 20 years) or lease term
Buildings under capital leases		Shorter of useful life (typically 20 years) or lease term
Restaurant and other equipment		3–15 years

The estimated useful lives for leasehold improvements are based on the shorter of the estimated useful lives of the assets or the related lease term, which generally includes reasonably assured option periods expected to be exercised by the Company when the Company would suffer an economic penalty if not exercised. Depreciation and amortization expense associated with property and equipment totaled $23.1 million for the fifty-two weeks ended January 1, 2019, $21.0 million for the fifty-two weeks ended January 2, 2018 and $20.6 million for the fifty-three weeks ended January 3, 2017. These amounts include $0.9 million for the fifty-two weeks ended January 1, 2019, $1.2 million for the fifty-three weeks ended January 2, 2018 and $1.4 million for the fifty-three weeks ended January 3, 2017 related to buildings under capital leases. Accumulated depreciation and amortization associated with property and equipment includes $2.2 million and $2.5 million related to buildings under capital leases as of January 1, 2019 and January 2, 2018, respectively.

The Company capitalizes construction costs which consist of internal payroll and payroll related costs and travel costs related to the successful acquisition, development, design and construction of the Company's new restaurants. Capitalized construction costs totaled $1.6 million for both the fifty-two weeks ended January 1, 2019 and fifty-two weeks ended January 2, 2018, and $1.3 million for the fifty-three weeks ended January 3, 2017. If the Company subsequently makes a determination that a site for which development costs have been capitalized will not be acquired or developed, any previously capitalized development costs are expensed and included in general and administrative expenses in the consolidated statements of comprehensive income. The Company capitalizes interest in connection with the construction of its restaurants. Interest capitalized totaled approximately $0.1 million for each of the fifty-two weeks ended January 1, 2019, the fifty-two weeks ended January 2, 2018, and the fifty-three weeks ended January 3, 2017.

Gains and losses on the disposal of assets are recorded as the difference between the net proceeds received, if any, and net carrying values of the assets disposed and are included in loss on disposal of assets, net in the consolidated statements of comprehensive income.

Deferred Financing Costs

Deferred financing costs represent third-party debt costs that are capitalized and amortized to interest expense over the associated term of the debt agreement using the effective interest method. Deferred financing costs, along with lender debt discount, are presented net of the related debt balances on the consolidated balance sheets.

Goodwill and Trademarks

The Company’s goodwill and trademarks are not amortized, but tested annually for impairment and tested more frequently for impairment if events and circumstances indicate that the asset might be impaired. The Company conducts annual goodwill and trademark impairment tests in the fourth quarter of each fiscal year or whenever an indicator of impairment exists.

In assessing potential goodwill impairment, the Company has the option to first assess the qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair value of net assets, including goodwill, is less than its carrying amount. If the qualitative factors indicate that it is more likely than not that the fair value of net assets, including goodwill, is less than its carrying amount, the Company performs a two-step impairment test of goodwill. In the first step, the Company estimates the fair value of net assets, including goodwill, and compares it to the carrying value of net assets, including goodwill. If the carrying value exceeds the estimated fair value of net assets, including goodwill, the second step is performed to measure the amount of the impairment loss, if any. In the second step, the amount of the impairment loss is the excess of the carrying amount of the goodwill over its implied fair value.

The methods the Company uses to estimate fair value include discounted future cash flows analysis and market valuation based on similar companies. Key assumptions included in the cash flow model include future revenues, operating costs, working capital changes, capital expenditures and a discount rate that approximates the Company's weighted average cost of capital.

The Company performs an annual impairment test for indefinite-lived intangible assets during the fourth fiscal quarter of each year, or more frequently if impairment indicators arise.

In assessing potential impairments for the fourth quarter test for 2018, the Company performed a qualitative assessment to determine whether it is more likely than not that the fair value of goodwill or indefinite-lived trademark are less than the carrying amount. Upon completion of the fourth quarter 2018 annual impairment assessment, the Company determined that no goodwill or trademark impairment was indicated. As of January 1, 2019, the Company is not aware of any significant indicators of impairment that exist for goodwill or trademark that would require additional analysis.

Intangible Assets, Net

Intangible assets primarily include favorable lease assets and franchise rights. Favorable lease assets represent the fair values of acquired lease contracts having contractual rents that are favorable compared to fair market rents as of the Closing Date of the Business Combination, and are amortized on a straight-line basis over the remaining lease terms to expense in the consolidated statements of comprehensive income. Franchise rights, which represent the fair value of franchise agreements based on the projected royalty revenue stream as of the Closing Date of the Business Combination, are amortized on a straight-line basis to depreciation and amortization expense in the consolidated statements of comprehensive income over the remaining term of the franchise agreements.

Other Assets, Net

Other assets, net consist of security deposits and other capitalized costs. The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, and (ii) compensation and related benefits for employees who are directly associated with the software projects. Capitalized software costs are amortized over the estimated useful life, typically 3 years. The net carrying value of capitalized software costs for the Company totaled $2.3 million and $2.1 million as of January 1, 2019 and January 2, 2018, respectively, and is included in other assets, net in the consolidated balance sheets. Capitalized software costs totaled $1.5 million for the fifty-two weeks ended January 1, 2019, $1.0 million for the fifty-two weeks ended January 2, 2018 and $1.3 million for the fifty-three weeks ended January 3, 2017. Amortization expenses totaled $1.2 million for the fifty-two weeks ended January 1, 2019, $1.0 million for the fifty-two weeks ended January 2, 2018 and $0.9 million for the fifty-three weeks ended January 3, 2017.

Long-Lived Assets

Long-lived assets, including property and equipment and definite lived intangible assets (other than goodwill and indefinite-lived intangible assets), are reviewed by the Company for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Long-lived assets are grouped and evaluated for impairment at the lowest level for which there are identifiable cash flows that are independent of the cash flows of other groups of assets. The Company evaluates such cash flows for individual restaurants and franchise agreements on an undiscounted basis. If it is determined that the carrying amounts of such long-lived assets are not recoverable, the assets are written down to their estimated fair values. The Company generally estimates fair value using either the land and building real estate value for the respective restaurant or the discounted value of the estimated cash flows associated with the respective restaurant or agreement. During the fifty-two weeks ended January 1, 2019, the Company evaluated certain restaurants having indicators of impairment based on operating performance and recorded an impairment charge totaling $3.9 million related to five restaurants. No such impairment charges were recorded during the fifty-two weeks ended January 2, 2019 or the fifty-three weeks ended January 3, 2017.

Rent Expense and Deferred Rent Liability

The Company has non-cancelable lease agreements for certain restaurant land and buildings under terms ranging up to 35 years, with one to four options to extend the lease generally for five to ten years per option period. At inception, each lease is evaluated to determine whether it will be classified as an operating or capital lease. Certain leases provide for contingent rentals based on percentages of net sales or have other provisions obligating the Company to pay related property taxes and certain other expenses. Contingent rentals are generally based on sales levels in excess of stipulated amounts as defined in the lease agreement, and thus are not considered minimum lease payments and are included in rent expense as incurred. Certain leases contain fixed and determinable escalation clauses for which the Company recognizes rental expense under these leases on the straight-line basis over the lease terms, which includes the period of time from when the Company takes possession of the leased space until the restaurant opening date (the rent holiday period), and the cumulative expense recognized on the straight-line basis in excess of the cumulative payments is included in other non-current liabilities. In addition, the Company subleases certain buildings to franchisees and other unrelated third parties, which are classified as operating leases.

In some cases, the land and building the Company will lease requires construction to ready the space for its intended use, and in certain cases, the Company has involvement with the construction of leased assets. The construction period begins when the Company executes the lease agreement with the landlord and continues until the space is substantially complete and ready for its intended use. In accordance with ASC 840, Leases, the Company must consider the nature and extent of its involvement during the construction period.

In accordance with ASC 840, Leases, the Company may expend cash for structural additions on leased premises that may be reimbursed in whole or in part by landlords as construction contributions pursuant to agreed-upon terms in the leases. Depending on the specifics of the leased space and the lease agreement, the amounts paid for structural components will be recorded during the construction period as construction-in-progress and the landlord construction contributions will be recorded as a deferred rent liability. Upon completion of construction for those leases that meet certain criteria, the lease may qualify for sale-leaseback treatment. For these leases, the deferred rent liability and the associated construction-in-progress will be removed and any gain on sale will be recorded as deferred income and amortized over the lease term to gain on disposal of assets and any loss on sale will be expensed immediately to loss on disposal of assets, net. If the lease does not qualify for sale-leaseback treatment, the deferred rent liability will be reclassified to a deemed landlord financing liability and will be amortized over the lease term based on the rent payments designated in the lease agreement with rent payments applied to deemed landlord financing liability and interest expense.

Unfavorable lease liabilities represent the fair values of acquired lease contracts having contractual rents that are unfavorable compared to fair market rents as of the Closing Date of the Business Combination, and are amortized on a straight-line basis over the remaining lease terms to expense in the consolidated statements of comprehensive income. As of January 1, 2019 and January 2, 2018, unfavorable lease liabilities had a gross carrying value of $19.2 million and $20.6 million, respectively, with accumulated amortization of $7.2 million and $6.1 million, respectively. Amortization credits recorded for unfavorable lease liabilities were $2.5 million during the fifty-two weeks ended January 1, 2019, $2.7 million during the fifty-two weeks ended January 2, 2018 and $2.6 million during the fifty-three weeks ended January 3, 2017. The weighted-average amortization period as of January 1, 2019 for unfavorable lease liabilities equaled 7.3 years. The estimated future amortization for unfavorable lease liabilities for the next five fiscal years is as follows (in thousands):



	Unfavorable Lease Liabilities
2019	$	1,996
2020	1,854
2021	1,571
2022	1,422
2023	1,133

Insurance Reserves

Given the nature of the Company’s operating environment, the Company is subject to workers’ compensation and general liability claims. To mitigate a portion of these risks, the Company maintains insurance for individual claims in excess of deductibles per claim (the Company’s insurance deductibles range from $0.25 million to $0.50 million per occurrence for workers’ compensation and are $0.35 million per occurrence for general liability). The Company is not the primary obligor for its worker's compensation insurance policy. The amount of loss reserves and loss adjustment expenses is determined based on an estimation process that uses information obtained from both Company-specific and industry data, as well as general economic information. Loss reserves are based on estimates of expected losses for determining reported claims and as the basis for estimating claims incurred but not reported. The estimation process for loss exposure requires management to continuously monitor and evaluate the life cycle of claims. Management also monitors the reasonableness of the judgments made in the prior year’s estimation process (referred to as a hindsight analysis) and adjusts current year assumptions based on the hindsight analysis. The Company utilizes actuarial methods to evaluate open claims and estimate the ongoing development exposure related to workers’ compensation and general liability.

Advertising Costs

Franchisees pay a weekly fee to the Company of 4% of their restaurants’ net sales as reimbursement for advertising and promotional services that the Company provides. Fees received in advance of payment for provided services are included in other accrued liabilities and were $0.7 million and $0.3 million at January 1, 2019 and January 2, 2018, respectively. Company-operated restaurants contribute to the advertising fund on the same basis as franchise-operated restaurants. At January 1, 2019 and January 2, 2018, the Company had an additional $0.9 million and $0.4 million, respectively, accrued for this requirement.

Production costs for radio and television advertising are expensed when the commercials are initially aired. Costs of distribution of advertising are charged to expense on the date the advertising is aired or distributed. These costs, as well as other marketing-related expenses for advertising are included in occupancy and other operating expenses in the consolidated statements of comprehensive income for Company expenses and included in franchise advertising expenses in the consolidated statements of comprehensive income for franchise expenses. Advertising expenses for the Company were $19.0 million for the fifty-two weeks ended January 1, 2019, $18.1 million for the fifty-two weeks ended January 2, 2018 and $17.2 million for the fifty-three weeks ended January 3, 2017.

Pre-opening Costs

Pre-opening costs, which include restaurant labor, supplies, cash and non-cash rent expense and occupancy and other operating costs incurred prior to the opening of a new restaurant are expensed as incurred. Pre-opening costs were $1.6 million for both the fifty-two weeks ended January 1, 2019 and the fifty-two weeks ended January 2, 2018, and $0.7 million for the fifty-three weeks ended January 3, 2017.

Restaurant Closure Charges, Net

The Company makes decisions to close restaurants based on their cash flows, anticipated future profitability and leasing arrangements. The Company determines if discontinued operations treatment is appropriate and estimates the future obligations, if any, associated with the closure of restaurants and records the corresponding restaurant closure liability at the time the restaurant is closed. These restaurant closure obligations primarily consist of the liability for the present value of future lease obligations, net of estimated sublease income. Restaurant closure charges, net are comprised of direct costs related to the restaurant closure and initial charges associated with the recording of the liability at fair value, accretion of the restaurant closure liability during the period, any positive or negative adjustments to the restaurant closure liability in subsequent periods as more information becomes available and sublease income from leases which are treated as deemed landlord financing. Changes to the estimated liability for future lease obligations based on new facts and circumstances are considered to be a change in estimate and are recorded prospectively. Accretion expense is recorded in order to appropriately reflect the present value of the lease obligations as of the end of a reporting period. Lease payments net of sublease income received related to these obligations reduce the overall liability. To the extent that the disposal or abandonment of related property and equipment results in gains or losses, such gains or losses are included in loss on disposal of assets, net in the consolidated statements of comprehensive income.

Stock-Based Compensation Expense

The Company recognizes compensation expense for all share-based payment awards made to employees and non-employee board of directors based on their estimated grant date fair values using the Black-Scholes option pricing model for option grants and the closing price of the underlying common stock on the date of the grant for restricted stock awards. The Company recognizes these compensation costs for only those awards expected to vest, on a straight-line basis over the requisite service period of the award. The Company estimates the number of awards expected to vest based, in part, on historical forfeiture rates and also based on management's expectations of employee turnover within the specific employee groups receiving the awards. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Stock-based compensation expense for the Company’s stock-based compensation awards is recognized ratably over the vesting period on a straight-line basis.

Income Taxes

The Company uses the liability method of accounting for income taxes. Deferred income taxes are provided for temporary differences between financial statement and income tax reporting, using tax rates scheduled to be in effect at the time the items giving rise to the deferred taxes reverse. The Company recognizes the impact of a tax position in the financial statements if that position is more likely than not of being sustained by the taxing authority. Accordingly, the Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Derivative Instruments and Hedging Activities

The Company is exposed to variability in future cash flows resulting from fluctuations in interest rates related to its variable rate debt. As part of its overall strategy to manage the level of exposure to the risk of fluctuations in interest rates, the Company has used various interest rate contracts including interest rate caps. The Company recognizes all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets. When they qualify as hedging instruments, the Company designates interest rate caps as cash flow hedges of forecasted variable rate interest payments on certain debt principal balances.

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current earnings.

The Company enters into interest rate derivative contracts with major banks and is exposed to losses in the event of nonperformance by these banks. The Company anticipates, however, that these banks will be able to fully satisfy their obligations under the contracts. Accordingly, the Company does not obtain collateral or other security to support the contracts.

Contingencies

The Company recognizes liabilities for contingencies when an exposure that indicates it is probable that an asset has been impaired or that a liability has been incurred and the amount of impairment or loss can be reasonably estimated. The Company’s ultimate legal and financial liability with respect to such matters cannot be estimated with certainty and requires the use of estimates. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. The Company records legal settlement costs when those costs are probable and reasonably estimable.

Comprehensive Income (Loss)

Comprehensive income (loss) includes changes in equity from transactions and other events and circumstances from nonoperational sources, including, among other things, the Company’s unrealized gains and losses on effective interest rate caps which are included in other comprehensive income (loss), net of tax.

Segment Information

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Company’s chief operating decision makers in deciding how to allocate resources. Similar operating segments can be aggregated into a single operating segment if the businesses are similar. Management has determined that the Company has one operating segment, and therefore one reportable segment. The Company’s chief operating decision maker (CODM) is its Chief Executive Officer; its CODM reviews financial performance and allocates resources at a consolidated level on a recurring basis.

Related Party Transactions

Of the 424,439 warrants purchased during the fifty-two weeks ended January 2, 2018, 400,000 warrants were purchased from PW Acquisitions, LP, a related party, at $3.75 per warrant, representing a 5% discount from the closing price of $3.95 per warrant on the transaction date. A member of the Company's Board of Directors is the chief executive officer and managing member of the general partner of PW Acquisitions, LP.

Fair Value of Financial Instruments

The Company measures fair value using 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 Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three tiers in the fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:


•	Level 1, defined as observable inputs such as quoted prices in active markets;


•	Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and


•	Level 3, defined as unobservable inputs which reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include the use of third-party pricing services, option pricing models, discounted cash flow models and similar techniques.

Concentration of Risks

Financial instruments that potentially subject the Company to a concentration of credit risk are cash and cash equivalents. The Company maintains its day-to-day operating cash balances in non-interest-bearing accounts. Although the Company at times maintains balances that exceed amounts insured by the Federal Deposit Insurance Corporation, it has not experienced any losses related to these balances and management believes the credit risk to be minimal.

The Company extends credit to franchisees for franchise and advertising fees on customary credit terms, which generally do not require collateral or other security. In addition, management believes there is no concentration of risk with any single franchisee or small group of franchisees whose failure or nonperformance would materially affect the Company’s results of operations.

The Company has entered into a long-term purchase agreement with a distributor for delivery of essentially all food and paper supplies to all company-operated and franchise-operated restaurants except for one location in Guam. Disruption in shipments from this distributor could have a material adverse effect on the results of operations and financial condition of the Company. However, management of the Company believes sufficient alternative distributors exist in the marketplace although it may take some time to enter into replacement distribution arrangements and the cost of distribution may increase as a result.

As of January 1, 2019, Del Taco operated and franchised a total of 376 restaurants in California (255 company-owned and 121 franchise-operated locations). As a result, the Company is particularly susceptible to adverse trends and economic conditions in California. In addition, given this geographic concentration, negative publicity regarding any of the restaurants in California could have a material adverse effect on the Company’s business and operations, as could other regional occurrences such as local strikes, fires, earthquakes or other natural disasters.

Recently Adopted Accounting Standards

In March 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-04, Liabilities-Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products, which is designed to provide guidance and eliminate diversity in the accounting for the derecognition of financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. The Company adopted the requirements of the new standard in the first quarter of 2018, utilizing the cumulative effect transition method. There was no material impact of the standard on the Company's consolidated financial statements and related disclosures as a result of adopting this standard.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides a comprehensive new revenue recognition model that requires a company to recognize revenue in an amount that reflects the consideration it expects to receive for the transfer of promised goods or services to its customers. The standard also requires additional disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09, also known as FASB ASC Topic 606 ("Topic 606") supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition ("Topic 605"). On January 3, 2018 (the first day of fiscal year 2018), the Company adopted the requirements of Topic 606, utilizing the modified retrospective method of transition. Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, as detailed below. Topic 606 does not materially impact the recognition of company restaurant sales or franchise royalty income from franchisees included in franchise revenue.

Franchise Fees

The adoption of Topic 606 changed the timing of the recognition of initial franchise fees, including franchise and development fees, and renewal fees, both included in franchise revenue in the consolidated statements of comprehensive income. Under Topic 605, initial franchise fees were recognized when all material obligations had been performed and conditions had been satisfied, typically when operations of a new franchise restaurant had commenced, and renewal fees were recognized when a renewal agreement became effective. Topic 606 requires franchise and renewal fees to be deferred and recognized over the term of the related franchise agreement for the respective restaurant. Franchise agreements typically have a term of twenty years. The impact of the deferral of initial franchise and renewal fees received in a given year may be offset by the recognition of revenue from fees retrospectively deferred from prior years. Upon adoption, the Company recorded approximately $0.7 million as a cumulative effect adjustment to opening retained earnings comprised of $1.0 million of deferred franchise fees included in other non-current liabilities on the consolidated balance sheet as of January 3, 2018 (the first day of fiscal year 2018) related to franchise and renewal fees previously recognized since the Business Combination on June 30, 2015, partially offset by an adjustment of $0.3 million to deferred taxes related to the $1.0 million of deferred franchise fees.

During the fifty-two weeks ended January 1, 2019, the Company recognized approximately $0.1 million in franchise revenue related to the amortization of the deferred franchise fees recognized at January 3, 2018 as a result of the adoption of Topic 606, and recognized approximately $0.1 million in franchise revenue as a result of the termination of one development agreement.

Deferred franchise fees are recognized straight-line over the term of the underlying agreement and the amount expected to be recognized in franchise revenue for amounts in deferred franchise fees as of January 1, 2019 is as follows (in thousands):



FY 2019	$	87
FY 2020	83
FY 2021	81
FY 2022	80
FY 2023	77
Thereafter	962
Total Deferred Franchise Fees	$	1,370

Advertising

The adoption of the new guidance changed the reporting of advertising contributions from franchisees and the related advertising expenses, which were not previously included in the consolidated statements of comprehensive income. Topic 606 requires these franchise advertising contributions and expenses to be reported on a gross basis in the consolidated statements of comprehensive income, which impacted our total revenues and expenses. However, the franchise advertising contributions and expenses are expected to be largely offsetting and therefore does not have a significant impact on reported net income. The current year impact to revenue for franchise advertising contributions and to expenses for franchise advertising expenses for the fifty-two weeks ended January 1, 2019 was an increase of $13.3 million for both revenue and expense as a result of applying Topic 606.

Other Revenue Transactions

The Company, previously under Topic 605, recorded certain other franchise expenses net of the related fees received from franchisees. Under Topic 606, the Company is now including these revenues and expenditures on a gross basis within the consolidated statements of comprehensive income. While this change materially impacted the gross amount of reported franchise related revenue and related expenses on the consolidated statements of comprehensive income, the impact is an offsetting increase to both revenue and expense such that there is not a significant, if any, impact on operating income and net income. The current year impact to revenues for the fifty-two weeks ended January 1, 2019 was an increase of approximately $0.7 million as a result of applying Topic 606, with an offsetting increase in expenses.

Comparison to Amounts if Previous Standards Had Been in Effect

The following tables reflect the impact of the adoption of Topic 606 on the Company's consolidated balance sheet as of January 1, 2019 and on the Company's consolidated statements of comprehensive income and cash flows from operating activities for the fifty-two weeks ended January 1, 2019 and the amounts as if Topic 605 was in effect ("Amounts Under Previous Standards") (in thousands):



	January 1, 2019
	As Reported		Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	19,877	$	—		$	19,877
Other accrued liabilities	34,785		—			34,785
Current portion of capital lease obligations and deemed landlord financing liabilities	1,033		—			1,033
Total current liabilities	55,695		—			55,695
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net	178,664		—			178,664
Deferred income taxes	69,471		370			69,841
Other non-current liabilities	32,852		(1,369		)	31,483
Total liabilities	336,682		(999		)	335,683
Shareholders’ equity:
Preferred stock	—		—			—
Common stock	4		—			4
Additional paid-in capital	336,941		—			336,941
Accumulated other comprehensive income	180		—			180
Retained earnings	85,149		999			86,148
Total shareholders’ equity	422,274		999			423,273
Total liabilities and shareholders’ equity	$	758,956	$	—		$	758,956



	52 Weeks Ended January 1, 2019
	As Reported			Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Revenue:
Company restaurant sales	$	471,193		$	—		$	471,193
Franchise revenue	17,569			(370		)	17,199
Franchise advertising contributions	13,300			(13,300		)	—
Franchise sublease and other income	3,428			(312		)	3,116
Total revenue	505,490			(13,982		)	491,508
Operating expenses:
Restaurant operating expenses:
Food and paper costs	128,873			—			128,873
Labor and related expenses	151,954			—			151,954
Occupancy and other operating expenses	97,745			—			97,745
General and administrative	43,773			(770		)	43,003
Franchise advertising expenses	13,300			(13,300		)	—
Depreciation and amortization	25,794			—			25,794
Occupancy and other - franchise subleases and other	3,167			(312		)	2,855
Pre-opening costs	1,584			—			1,584
Impairment of long-lived assets	3,861			—			3,861
Restaurant closure charges, net	394			—			394
Loss on disposal of assets, net	1,012			—			1,012
Total operating expenses	471,457			(14,382		)	457,075
Income from operations	34,033			400			34,433
Other expense, net
Interest expense	9,075			—			9,075
Other income	(660		)	—			(660		)
Total other expense, net	8,415			—			8,415
Income from operations before provision for income taxes	25,618			400			26,018
Provision for income taxes	6,659			108			6,767
Net income	18,959			292			19,251
Other comprehensive income:
Change in fair value of interest rate cap, net of tax	122			—			122
Reclassification of interest rate cap amortization included in net income	44			—			44
Total other comprehensive income	166			—			166
Comprehensive income	$	19,125		$	292		$	19,417
Earnings per share:
Basic	$	0.50		$	0.01		$	0.51
Diluted	$	0.49		$	0.01		$	0.50



	52 Weeks Ended January 1, 2019
	As Reported			Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Operating activities
Net income	$	18,959		$	292		$	19,251
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts	45			—			45
Depreciation and amortization	25,794			—			25,794
Amortization of favorable and unfavorable lease assets and liabilities, net	(767		)	—			(767		)
Amortization of deferred financing costs and debt discount	445			—			445
Stock-based compensation	6,079			—			6,079
Impairment of long-lived assets	3,861			—			3,861
Deferred income taxes	1,097			108			1,205
Loss on disposal of assets, net	1,012			—			1,012
Restaurant closure charges	449			—			449
Other income	(523		)	—			(523		)
Changes in operating assets and liabilities:
Accounts and other receivables, net	616			—			616
Inventories	(220		)	—			(220		)
Prepaid expenses and other current assets	1,949			—			1,949
Other assets	(125		)	—			(125		)
Accounts payable	2			—			2
Other accrued liabilities	(488		)	—			(488		)
Other non-current liabilities	3,647			(400		)	3,247
Net cash provided by operating activities	$	61,832		$	—		$	61,832

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which clarifies the accounting implementation costs in cloud computing arrangements. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, and issued additional clarifications and improvements during 2018. This guidance amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and issued additional clarifications and improvements throughout 2018. This guidance will result in key changes to lease accounting and will aim to bring leases onto balance sheets to give investors, lenders, and other financial statement users a more comprehensive view of a company's long-term financial obligations as well as the assets it owns versus leases. The pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet. The new leasing standard will be effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years. The new guidance requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with certain practical expedients available. The Company will adopt the requirements of the new lease standard effective January 2, 2019, the first day of fiscal year 2019, and will apply a modified retrospective adoption method using the optional transition method to apply the standard as of the effective date and therefore will not apply the standard to the comparative periods presented in the Company's financial statements. The Company has elected the package of practical expedients which allows an entity to not reassess whether any existing or expired contracts contain leases, nor reassess lease classifications for existing or expired leases, and an entity does not need to reassess initial direct costs for any existing leases. The Company will not elect the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of right-of-use assets. Further, the Company will elect a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases with terms of 12 months or less. The Company is finalizing the impact of the standard to its accounting policies, processes, disclosures, and internal control over financial reporting and has implemented necessary upgrades to its existing lease system.

The adoption of ASU 2016-02 will have a significant impact on our consolidated balance sheet as the Company will record material right-of-use assets and operating lease liabilities upon adoption and will derecognize all landlord funded assets, deemed landlord financing liabilities and deferred rent liabilities upon transition. The Company expects to record operating lease liabilities of approximately $220 million to $240 million based on the present value of the remaining minimum rental payments using discount rates as of the effective date. In addition, the Company expects to record corresponding right-of-use assets of approximately $210 million to $230 million, based upon the operating lease liabilities adjusted for prepaid and deferred rent, unamortized favorable and unfavorable lease balances, liabilities associated with lease termination costs and impairment of right-of-use assets recognized in retained earnings as of January 2, 2019. At the beginning of the period of adoption, the Company will record the cumulative effect of adoption to retained earnings. Following adoption in fiscal 2019, leases historically treated as deemed landlord financing liabilities will be treated as operating leases resulting in an increase in occupancy and other expense and a decrease to depreciation expense and interest expense. The Company anticipates substantial new disclosure requirements under Topic 842. The Company is continuing its evaluation, which may identify additional impacts this standard will have on its consolidated financial statements and related disclosures.

Restaurant Closure and Other Related Charges

12 Months Ended

Jan. 01, 2019

Restructuring and Related Activities [Abstract]

Restaurant Closure and Other Related Charges

At January 1, 2019 and January 2, 2018, the restaurant closure liability is $2.4 million and $2.8 million, respectively. The details of the restaurant closure activities are discussed below.

Restaurant Closures and Lease Reserves

During the fifty-two weeks ended January 1, 2019, there were adjustments to subleases for existing restaurant closure liabilities which resulted in a favorable adjustment of $0.5 million. The following table presents other restaurant closure liability activity for each period related to current year and prior year restaurant closures and sublease income shortfalls (in thousands):



	52 Weeks Ended January 1, 2019			52 Weeks Ended January 2, 2018			53 Weeks Ended January 3, 2017
Closure liability at beginning of period	$	1,213		$	1,365		$	1,023
Adjustments to estimate based on current activity	(513		)	22			439
Charges related to current period activity	—			46			—
Charges for accretion in current period	54			97			80
Cash payments	(435		)	(317		)	(177		)
Closure liability at end of period	$	319		$	1,213		$	1,365

The current portion of the restaurant closure liability is $0.1 million at January 1, 2019 and $0.5 million at January 2, 2018 and is included in other accrued liabilities in the consolidated balance sheets. The non-current portion of the restaurant closure liability is $0.2 million and $0.7 million at January 1, 2019 and January 2, 2018, respectively, and is included in other non-current liabilities in the consolidated balance sheets.

Restaurant Closure and Other Related Charges for 12 Underperforming Restaurants

During the fourth fiscal quarter of 2015, the Company closed 12 company-operated restaurants as previously announced. No discontinued operations treatment was required for any of these closures. During the fifty-two weeks ended January 1, 2019, the Company recorded accretion expense related to the closures and net adjustments of $0.7 million to the lease termination liability for five restaurants due to changes in estimates, net of $0.2 million of sublease income from leases which are treated as deemed landlord financing.

A summary of the restaurant closure liability activity for these 12 closed restaurants consisted of the following (in thousands):



	Contract termination costs			Other associated costs			Total
Balance at December 29, 2015	$	3,637		$	163		$	3,800
Charges for accretion and other in current period	133			—			133
Cash payments	(1,444		)	(163		)	(1,607		)
Reclassification of lease related liabilities	(553		)	—			(553		)
Balance at January 3, 2017	1,773			—			1,773
Charges for accretion in current period	70			—			70
Cash payments	(376		)	—			(376		)
Adjustment to estimates based on current activity	144			—			144
Balance at January 2, 2018	1,611			—			1,611
Charges for accretion in current period	61			—			61
Cash payments	(327		)	—			(327		)
Adjustment to estimates based on current activity	747			—			747
Balance at January 1, 2019	$	2,092		$	—		$	2,092

The current portion of the restaurant closure liability is $0.5 million and $0.3 million at January 1, 2019 and January 2, 2018, respectively, and is included in other accrued liabilities in the consolidated balance sheets. The non-current portion of the restaurant closure liability is $1.6 million and $1.3 million at January 1, 2019 and January 2, 2018, respectively, and is included in other non-current liabilities in the consolidated balance sheets.

Property and Equipment, Net

12 Months Ended

Jan. 01, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net at January 1, 2019 and January 2, 2018 consisted of the following, excluding amounts related to properties classified as held for sale (in thousands):



	January 1, 2019			January 2, 2018
Land	$	1,929		$	9,800
Buildings	4,335			2,325
Restaurant and other equipment	87,767			74,075
Leasehold improvements	121,409			100,192
Buildings under capital leases	3,390			4,625
Restaurant property leased to others	991			3,090
Construction-in-progress	10,697			11,905
	230,518			206,012
Less: Accumulated depreciation	(69,089		)	(49,888		)
Property and Equipment, Net	$	161,429		$	156,124

Impairment of long-lived assets

The Company evaluated long-lived assets for indicators of impairment on a periodic basis or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. During Fiscal 2018, the Company evaluated certain restaurants that had indicators of impairment based on operating performance and recorded an impairment charge totaling $3.9 million. The Company wrote-off the value of leasehold improvements for those restaurants and wrote-off the value of restaurant and other equipment based on the estimate of future recoverable cash flows of the restaurant and other equipment assets. No impairment charges were recorded in continuing operations in the accompanying consolidated statements of comprehensive income for any other periods presented.

Summary of Refranchsing and Franchise Acquisitions (Notes)

12 Months Ended

Jan. 01, 2019

Franchise Acquisitions [Abstract]

Refranchising and Franchise Acquisitions

Summary of Refranchising and Franchise Acquisitions

Refranchising

In connection with the sale of company-operated restaurants to franchisees, the Company typically enters into several agreements, in addition to an asset purchase agreement, with franchisees including franchise and lease agreements. The Company typically sells the restaurants' inventory and equipment and retains ownership of the leasehold interest on the real estate of the lease and/or sublease to the franchisee. The Company has determined that its restaurant dispositions usually represent multiple-element arrangements, and as such, the cash consideration is allocated to the separate elements based on their relative selling price. Cash consideration generally includes up-front consideration for the sale of the restaurants and franchise fees and future cash consideration for royalties and lease payments. The Company considers the future lease payments in allocating the initial cash consideration received. The Company compares the stated rent under the lease and/or sublease agreements with comparable market rents and the Company records favorable or unfavorable lease assets/liabilities with a corresponding offset to the gain or loss on the sale of the company-operated restaurants. The cash consideration per restaurant for franchise fees is consistent with the amounts stated in the related franchise agreements which are charged for separate standalone arrangements. Therefore, the Company recognizes the franchise fees when earned. Future royalty income is also recognized in revenue as earned.

The Company sold 5 company-operated restaurants to franchisees during the fifty-two weeks ended January 2, 2018. The Company did not sell any company-operated restaurants to franchisees during the fifty-two weeks ended January 1, 2019 or the fifty-three weeks ended January 3, 2017. The following table provides detail of the related gain recognized during the fifty-two weeks ended January 2, 2018 (dollars in thousands):



	52 Weeks Ended January 2, 2018
Company-operated restaurants sold to franchisees	5

Proceeds from the sale of company-operated restaurants	$	2,192
Net assets sold (primarily furniture, fixtures and equipment)	(1,261		)
Goodwill related to the company-operated restaurants sold to franchisees	(247		)
Net unfavorable lease liabilities ^(a)	(548		)
Other costs	(5		)
Gain on sale of company-operated restaurants ^(b)	$	131

^(a) The Company recorded favorable lease assets of $0.1 million and unfavorable lease liabilities of $0.6 million as a result of subleasing land, buildings and leasehold improvements to franchisees, in connection with the sale of company-operated restaurants.

^(b) Included in loss on disposal of assets, net on the consolidated statements of comprehensive income.

Franchise Acquisitions

The Company acquired three franchise-operated restaurants during the fifty-two weeks ended January 1, 2019, one franchise-operated restaurant during the fifty-two weeks ended January 2, 2018 and six franchise-operated restaurants during the fifty-three weeks ended January 3, 2017. The Company accounts for the acquisition of franchise-operated restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3). The goodwill recorded primarily relates to the market position and future growth potential of the markets acquired and is expected to be deductible for income tax purposes.

The following table provides detail of the combined acquisitions for both the fifty-two weeks ended January 1, 2019, fifty-two weeks ended January 2, 2018 and the fifty-three weeks ended January 3, 2017 (dollars in thousands):



	52 Weeks Ended January 1, 2019		52 Weeks Ended January 2, 2018			53 Weeks Ended January 3, 2017
Franchise-operated restaurants acquired from franchisees	3		1			6

Goodwill	$	893	$	860		$	969
Property and equipment	798		360			821
Land and building	—		—			2,127
Reacquired franchise rights	150		—			—
Unfavorable lease liability	—		(85		)	—
Liabilities assumed	—		(7		)	(26		)
Total Consideration	$	1,841	$	1,128		$	3,891

Total consideration for the franchise-operated restaurants excluding the land and building acquired from a franchisee was $1.8 million during the fifty-three weeks ended January 3, 2017.

During the fifty-two weeks ended January 1, 2019, the Company wrote-off $0.6 million of unfavorable lease liabilities related to franchise subleases, offset by $0.1 million of straight line deferred rent assets (included in other assets) which were terminated in connection with the Company's acquisition of the related franchise-operated restaurants.

Goodwill and Other Intangible Assets

12 Months Ended

Jan. 01, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill for the fifty-two weeks ended January 1, 2019 are as follows (in thousands):



	Goodwill
Balance as of January 2, 2018	$	320,638
Acquisition of franchise-operated restaurants	893
Balance as of January 1, 2019	$	321,531

The increase in goodwill was due to an adjustment of $0.9 million related to the acquisition of three franchise-operated restaurants during the fifty-two weeks ended January 1, 2019, as described in more detail in Note 5.

The carrying value of trademarks was $220.3 million at both January 1, 2019 and January 2, 2018.

The Company’s other intangible assets at January 1, 2019 and January 2, 2018 consisted of the following (in thousands):



	January 1, 2019							January 2, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Favorable lease assets	$	13,118	$	(5,542	)	$	7,576	$	13,744	$	(4,442	)	$	9,302
Franchise rights	15,032		(4,411		)	10,621		15,284		(3,282		)	12,002
Reacquired franchise rights	417		(107		)	310		243		(49		)	194
Total amortized other intangible assets	$	28,567	$	(10,060	)	$	18,507	$	29,271	$	(7,773	)	$	21,498

During the fifty-two weeks ended January 1, 2019, the Company wrote-off $0.2 million of favorable lease assets related to the termination of three leases and $0.4 million of favorable lease assets associated with nine franchise locations were fully amortized.

During the fifty-two weeks ended January 1, 2019, the Company wrote-off $0.1 million of franchise rights associated with the closure of one franchise operated restaurant, $0.1 million of franchise rights associated with six franchise locations were fully amortized and the Company reclassified $24,000 of franchise rights as reacquired franchise rights from the acquisition of one franchise location. During the fifty-two weeks ended January 2, 2018, $0.1 million of franchise rights associated with five franchise locations were fully amortized and the Company reclassified $0.1 million of franchise rights as reacquired franchise rights from the acquisition of one franchise location.

In addition, during the fifty-two weeks ended January 1, 2019, the Company acquired $0.2 million of reacquired franchise rights in connection with the Company's purchase of two franchise-operated restaurants.

Favorable lease assets are related to below-market leasing arrangements. Favorable lease assets are amortized on a lease-by-lease basis using the straight-line method over the remaining lease terms of the underlying leases. Franchise rights are amortized using the straight-line method over the remaining life of the franchise agreements or 40 years, whichever is less. The weighted-average amortization periods as of January 1, 2019 for favorable lease assets and franchise rights equaled 6.6 years and 12.1 years, respectively.

Amortization expense for amortizable intangible assets totaled $3.1 million, $3.3 million and $3.6 million for the fifty-two weeks ended January 1, 2019, fifty-two weeks ended January 2, 2018, and fifty-three weeks ended January 3, 2017, respectively, and includes amortization of favorable lease assets of $1.7 million, $1.9 million and $2.0 million for the fifty-two weeks ended January 1, 2019, fifty-two weeks ended January 2, 2018 and fifty-three weeks ended January 3, 2017, respectively, and amortization of franchise rights of $1.4 million, $1.3 million and $1.6 million for the fifty-two weeks ended January 1, 2019, fifty-two weeks ended January 2, 2018 and fifty-three weeks ended January 3, 2017, respectively. The estimated future amortization for favorable lease assets and franchise rights for the next five fiscal years is as follows (in thousands):



	Favorable Lease Assets		Franchise Rights
2019	$	1,443	$	1,245
2020	1,171		1,176
2021	1,005		1,064
2022	922		965
2023	746		880

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities

12 Months Ended

Jan. 01, 2019

Debt Disclosure [Abstract]

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities

The Company’s debt, obligations under capital leases and deemed landlord financing liabilities at January 1, 2019 and January 2, 2018 consisted of the following (in thousands):



	January 1, 2019		January 2, 2018
2015 Senior Credit Facility, net of debt discount of $459 and $747 and deferred financing costs of $155 and $252 at January 1, 2019 and January 2, 2018, respectively	$	158,386	$	152,001
Total outstanding indebtedness	158,386		152,001
Obligations under capital leases and deemed landlord financing liabilities	21,311		20,053
Total debt, net	179,697		172,054
Less: amounts due within one year	1,033		1,415
Total amounts due after one year, net	$	178,664	$	170,639

At January 1, 2019 and January 2, 2018, the Company assessed the amounts recorded under the 2015 Senior Credit Facility and determined that such amounts approximated fair value.

2015 Revolving Credit Facility

On August 4, 2015, the Company refinanced its existing senior credit facility and entered into a new credit agreement (the “Credit Agreement”). The Credit Agreement, which matures on August 4, 2020, provides for a $250 million revolving credit facility (the “2015 Senior Credit Facility”).

At the Company’s option, loans under the 2015 Senior Credit Facility may bear interest at a base rate or LIBOR, plus an applicable margin determined in accordance with a consolidated total lease adjusted leverage ratio-based pricing grid. The base rate is calculated as the highest of (a) the Federal Funds Rate plus 1⁄2 of 1%, (b) the prime rate of Bank of America, and (c) LIBOR plus 1.00%. For LIBOR loans, the applicable margin is in the range of 1.50% to 2.50%, and for base rate loans the applicable margin is in the range of 0.50% and 1.50%. The 2015 Senior Credit Facility capacity used to support letters of credit currently incurs fees equal to the applicable margin of 1.75%. The 2015 Senior Credit Facility unused commitment currently incurs a 0.20% fee.

The Credit Agreement contains certain financial covenants, including the maintenance of a consolidated total lease adjusted leverage ratio and a consolidated fixed charge coverage ratio. The Company was in compliance with the financial covenants as of January 1, 2019. Substantially all of the assets of the Company are pledged as collateral under the 2015 Senior Credit Facility.

The Company capitalized lender debt discount costs and deferred financing costs of $1.4 million and $0.5 million, respectively, in connection with the refinancing. Lender debt discount costs and deferred financing costs associated with the 2015 Senior Credit Facility are presented net of the 2015 Senior Credit Facility balance on the consolidated balance sheets and will be amortized to interest expense over the term of the 2015 Senior Credit Facility. Amortization of deferred financing costs and debt discount related to the 2015 Senior Credit Facility totaled $0.4 million for each of the fifty-two weeks ended January 1, 2019, the fifty-two weeks ended January 2, 2018 and the fifty-three weeks ended January 3, 2017.

At January 1, 2019, the weighted average interest rate on the outstanding balance of the 2015 Senior Credit Facility was 4.27%. At January 1, 2019, the Company had a total of $73.7 million of availability for additional borrowings under the 2015 Senior Credit Facility as the Company had $159.0 million of outstanding borrowings and $17.3 million of letters of credit outstanding which reduce availability under the 2015 Senior Credit Facility.

Other Debt Information

Based on debt agreements and leases in place as of January 1, 2019, future maturities of debt, obligations under capital leases and deemed landlord financing liabilities were as follows (in thousands):



2019	$	1,033
2020	159,881
2021	832
2022	777
2023	927
Thereafter	16,861
Total maturities	180,311
Less: debt discount and deferred financing costs	(614		)
Total debt, net	$	179,697

Derivative Instruments	12 Months Ended
Derivative Instruments	Jan. 01, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments In June 2016, the Company entered into an interest rate cap agreement that became effective July 1, 2016, to hedge cash flows associated with interest rate fluctuations on variable rate debt, with a termination date of March 31, 2020 ("2016 Interest Rate Cap Agreement"). The 2016 Interest Rate Cap Agreement has a notional amount of $70.0 million of the 2015 Senior Credit Facility that effectively converted that portion of the outstanding balance of the 2015 Senior Credit Facility from variable rate debt to capped variable rate debt, resulting in a change in the applicable interest rate from an interest rate of one-month LIBOR plus the applicable margin (as provided by the 2015 Senior Credit Facility) to a capped interest rate of 2.00% plus the applicable margin. During the period from July 1, 2016 through January 1, 2019, the 2016 Interest Rate Cap Agreement had no hedge ineffectiveness. As of December 29, 2015 and through June 30, 2016, the Company had an interest rate cap agreement to hedge cash flows associated with interest rate fluctuations on variable rate debt ("2013 Interest Rate Cap Agreement"). The 2013 Interest Rate Cap Agreement had a notional amount of $87.5 million as of December 29, 2015. The individual caplet contracts within the interest rate cap agreement expired at various dates through June 30, 2016. 2016 Interest Rate Cap Agreement To ensure the effectiveness of the 2016 Interest Rate Cap Agreement, the Company elected the one-month LIBOR rate option for its variable rate interest payments on term balances equal to or in excess of the applicable notional amount of the interest rate cap agreement as of each reset date. The reset dates and other critical terms on the term loans perfectly match with the interest rate cap reset dates and other critical terms during the fifty-two weeks ended January 1, 2019. During the fifty-two weeks ended January 1, 2019, the Company reclassified $0.1 million of interest expense related to hedges of these transactions into earnings. As of January 1, 2019, the Company was hedging forecasted transactions expected to occur through March 31, 2020. Assuming interest rates at January 1, 2019 remain constant, $0.2 million of interest expense related to hedges of these transactions is expected to be reclassified into earnings over the next 15 months. The Company intends to ensure that this hedge remains effective, therefore, approximately $0.2 million is expected to be reclassified into interest expense over the next 12 months. The effective portion of the 2016 Interest Rate Cap Agreement through January 1, 2019 was included in accumulated other comprehensive income. 2013 Interest Rate Cap Agreement As of the July 1, 2015 interest reset date, the Company elected the one-month LIBOR rate option for its variable rate interest payments on term balances equal to or in excess of the applicable notional amount of the 2013 Interest Rate Cap Agreement, and as a result, this hedge became ineffective. Therefore, after July 1, 2015 through June 30, 2016, any changes in fair value were recorded through interest expense.

Fair Value Measurements

12 Months Ended

Jan. 01, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

The fair values of cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate their carrying amounts due to their short maturities. The carrying value of the 2015 Senior Credit Facility approximated fair value. The 2016 Interest Rate Cap Agreement is recorded at fair value in the Company’s consolidated balance sheets.

As of January 1, 2019 and January 2, 2018, the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis. For both periods, these included derivative instruments related to interest rates. The Company determined the fair values of the interest rate cap contracts based on counterparty quotes, with appropriate adjustments for any significant impact of nonperformance risk of the parties to the interest rate cap contracts. Therefore, the Company has categorized these interest rate cap contracts as Level 2 fair value measurements. The fair value of the 2016 Interest Rate Cap Agreement was $0.5 million at January 1, 2019 and $0.3 million at January 2, 2018 and is included in other assets in the Company’s consolidated balance sheets.

The following is a summary of the estimated fair values for the long-term debt instruments (in thousands):



	January 1, 2019				January 2, 2018
	Estimated Fair Value		Book Value		Estimated Fair Value		Book Value
2015 Senior Credit Facility	$	158,386	$	158,386	$	152,001	$	152,001

The Company’s assets and liabilities measured at fair value on a recurring basis as of January 1, 2019 and January 2, 2018 were as follows (in thousands):



	January 1, 2019		Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
2016 Interest Rate Cap Agreement	$	499	$	—	$	499	$	—
Total assets measured at fair value	$	499	$	—	$	499	$	—

	January 2, 2018		Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
2016 Interest Rate Cap Agreement	$	332	$	—	$	332	$	—
Total assets measured at fair value	$	332	$	—	$	332	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Other Accrued Liabilities and Other Non-current Liabilities

12 Months Ended

Jan. 01, 2019

Other Liabilities Disclosure [Abstract]

Other Accrued Liabilities and Other Non-current Liabilities

Other Accrued Liabilities and Other Non-Current Liabilities

A summary of other accrued liabilities follows (in thousands):



	January 1, 2019		January 2, 2018
Employee compensation and related items	$	12,888	$	12,945
Accrued insurance	5,664		7,232
Accrued sales tax	3,952		3,987
Accrued property and equipment purchases	3,196		3,757
Accrued advertising	1,578		728
Accrued real property tax	1,420		1,331
Restaurant closure liability	623		794
Other	5,464		4,483
	$	34,785	$	35,257

A summary of other non-current liabilities follows (in thousands):



	January 1, 2019		January 2, 2018
Unfavorable lease liabilities	$	11,975	$	14,469
Insurance reserves	8,794		5,965
Deferred rent liability	4,594		2,972
Deferred development and initial franchise fees	2,742		1,335
Restaurant closure liabilities	1,788		2,030
Deferred gift card income	1,290		1,234
Unearned trade discount, non-current	739		1,149
Other	930		2,277
	$	32,852	$	31,431

Stock-Based Compensation

12 Months Ended

Jan. 01, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

2015 Omnibus Incentive Plan

In connection with the approval of the Business Combination, the Del Taco Restaurants, Inc. 2015 Omnibus Incentive Plan (the “2015 Plan”) was approved by shareholders to offer eligible employees, directors and consultants cash and stock-based incentive awards. Awards under the 2015 Plan are generally not restricted to any specific form or structure and could include, without limitation, stock options, stock appreciation rights, restricted stock, other stock-based awards, other cash-based compensation and performance awards. Under the 2015 Plan, there are 3,300,000 shares of common stock reserved and authorized. At January 1, 2019, there were 900,976 shares of common stock available for grant under the 2015 Plan.

Stock-Based Compensation Expense

The total compensation expense related to the 2015 Plan was $6.1 million for the fifty-two weeks ended January 1, 2019, $4.9 million for the fifty-two weeks ended January 2, 2018 and $4.1 million for the fifty-three weeks ended January 3, 2017.

Restricted Stock Awards

During the fifty-two weeks ended January 1, 2019, 594,619 shares of restricted stock were granted to certain directors, officers and employees of the Company under the 2015 Plan. These restricted stock awards vest on a straight-line basis in equal annual installments over four years from the grant date.

A summary of outstanding and unvested restricted stock activity as of January 1, 2019 and changes during the period from January 2, 2018 through January 1, 2019 are as follows:



	Shares		Weighted-Average Grant Date Fair Value
Nonvested at January 2, 2018	1,088,910		$	11.92
Granted	594,619		13.88
Vested	(425,873	)	11.85
Forfeited	(23,125	)	13.09
Nonvested at January 1, 2019	1,234,531		$	12.87

During the fifty-two weeks ended January 1, 2019 and January 2, 2018, the Company made payments of $2.4 million and $1.9 million, respectively, related to tax withholding obligations for the vesting of restricted stock awards in exchange for 168,484 and 140,209 shares withheld, respectively. As of January 1, 2019, there was $10.3 million of unrecognized compensation expense, net of estimated forfeitures, related to restricted stock, which is expected to be recognized over a weighted-average period of 2.5 years. The weighted average grant date fair value of restricted stock awards granted was $13.88, $13.64 and $9.30 during the fifty-two weeks ended January 1, 2019, fifty-two weeks ended January 2, 2018 and fifty-three weeks ended January 3, 2017, respectively. The total fair value of awards that became fully vested during the fifty-two weeks ended January 1, 2019, fifty-two weeks ended January 2, 2018 and fifty-three weeks ended January 3, 2017 was $5.9 million, $5.4 million and $2.4 million, respectively.

Stock Options

During the fifty-two weeks ended January 1, 2019, 106,000 stock options were granted to certain employees of the Company under the 2015 Plan. The stock options vest on a straight-line basis in equal annual installments over four years from the grant date.

A summary of stock option activity as of January 1, 2019 and changes during the period from January 2, 2018 through January 1, 2019 are as follows:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (in thousands)
Options outstanding at January 2, 2018	417,000		$	11.04	5.5	$	641
Granted	106,000		14.04
Exercised	(21,750	)	10.22
Forfeited / Expired	(48,000	)	11.43
Options outstanding at January 1, 2019	453,250		$	11.74	5.0	$	77
Options exercisable at January 1, 2019	187,996		$	10.57	4.3	$	38
Options exercisable and expected to vest at January 1, 2019	425,954		$	11.65	4.9	$	74

The aggregated intrinsic value in the table above is the amount by which the current market price of the Company's stock exceeds the exercise price on January 1, 2019 and January 2, 2018, respectively.

The following table reflects the weighted-average assumptions used in the Black-Scholes option-pricing model to value the stock options granted in the fifty-two weeks ended January 1, 2019, the fifty-two weeks ended January 2, 2018 and the fifty-three weeks ended January 3, 2017:



	52 Weeks Ended January 1, 2019			52 Weeks Ended January 2, 2018			53 Weeks Ended January 3, 2017
Expected volatility	36.29		%	36.09		%	37.64		%
Risk-free rate of return	2.71		%	1.86		%	1.12		%
Expected life (in years)	4.74			4.75			5.50
Dividend yield	—			—			—
Fair value per share at date of grant	$	4.92		$	4.63		$	3.31

Since the Company does not have a substantial history of traded common stock activity, expected volatility was based on historical data from selected peer public company restaurants. The risk-free rate is based on published U.S. Treasury rates in effect at the time of grant with a similar duration of the expected life of the options. The expected life of options granted is derived from the average of the contractual term of the option and the vesting periods. The Company has not paid any dividends to date, therefore, the Company used an expected dividend yield of zero for option valuation purposes.

As of January 1, 2019, there was $0.8 million of total unrecognized compensation expense, net of estimated forfeitures, related to stock options grants which is expected to be recognized over a weighted-average remaining period of 2.4 years. The total intrinsic value of stock options exercised was $51,000, $25,000 and $2,000 during the fifty-two weeks ended January 1, 2019, fifty-two weeks ended January 2, 2018 and fifty-three weeks ended January 3, 2017, respectively.

Shareholders' Equity	12 Months Ended
Shareholders' Equity	Jan. 01, 2019
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity The authorized common stock of the Company consists of 400,000,000 shares. Holders of the Company’s common stock are entitled to one vote for each share of common stock. As of January 1, 2019, there were 37,305,342 shares of common stock issued and outstanding and warrants to purchase 5,952,423 shares of the Company’s common stock outstanding at a strike price of $11.50. All of the outstanding warrants are exercisable. The Company is authorized to issue 1,000,000 preferred shares with designations, voting and other rights and preferences as may be determined from time to time by the Board of Directors. As of January 1, 2019, there were no preferred shares issued or outstanding. On February 26, 2016, the Company's Board of Directors authorized a share repurchase program covering up to $25.0 million in the aggregate of the Company's common stock and warrants which was effective immediately and expires upon completion of the repurchase program, unless terminated earlier by the Board of Directors. On August 23, 2016, the Company announced that the Board of Directors increased the repurchase program by $25.0 million, to $50.0 million. The Board of Directors authorized an additional increase for the repurchase program effective July 23, 2018 of another $25.0 million, to a total of $75.0 million. Purchases under the program may be made in open market or privately negotiated transactions. During the fifty-two weeks ended January 1, 2019, the Company repurchased (1) 1,408,071 shares of common stock for an average price per share of $11.48 for an aggregate cost of approximately $16.2 million, including incremental direct costs to acquire the shares, and (2) 47,511 warrants for an average price per warrant of $2.55 for an aggregate cost of approximately $0.1 million, including incremental direct costs to acquire the warrants. During the fifty-two weeks ended January 2, 2018, the Company repurchased (1) 986,497 shares of common stock for an average price per share of $12.41 for an aggregate cost of approximately $12.3 million, including incremental direct costs to acquire the shares, and (2) 424,439 warrants for an average price per warrant of $3.72 for an aggregate cost of approximately $1.6 million, including incremental direct costs to acquire the warrants. During the fifty-three weeks ended January 3, 2017, the Company repurchased (1) 1,347,300 shares of common stock for an average price per share of $10.00 for an aggregate cost of approximately $13.5 million, including incremental direct costs to acquire the shares, and (2) 699,007 warrants for an average price per warrant of $2.54 for an aggregate cost of approximately $1.8 million, including incremental direct costs to acquire the warrants. The Company expects to retire the repurchased shares and warrants and therefore has accounted for them as constructively retired as of January 1, 2019. As of January 1, 2019, there was approximately $29.6 million remaining under the share repurchase program. The Company has no obligations to repurchase shares or warrants under this authorization, and the timing and value of shares and warrants purchased will depend on the Company's stock price, warrant price, market conditions and other factors. Of the 424,439 warrants purchased during the fifty-two weeks ended January 2, 2018, 400,000 warrants were purchased from PW Acquisitions, LP, a related party, at $3.75 per warrant, representing a 5% discount from the closing price of $3.95 per warrant on the transaction date. A member of the Company's Board of Directors is the chief executive officer and managing member of the general partner of PW Acquisitions, LP. On July 11, 2016, the Company commenced an offer to exchange 0.2780 shares of the Company's common stock for each outstanding Company warrant exercisable for shares at an exercise price of $11.50 per share (approximately one share for every 3.6 warrants tendered), up to a maximum of 6,750,000 warrants, which amount was subsequently increased to 7,750,000 warrants. The offer to exchange expired on August 8, 2016. A total of 5,516,243 warrants were tendered in the exchange offer. All of the Company's directors and executive officers who control or beneficially owned warrants participated in the offer and in aggregate tendered 1,501,800 of their warrants. The Company accepted for exchange all such warrants and issued an aggregate of 1,533,542 shares of the Company's common stock in exchange for the warrants tendered, representing approximately 4% of the shares outstanding after such issuance. The warrants will expire on June 30, 2020, unless sooner exercised or redeemed by the Company in accordance with the terms of the warrants. For the fifty-three weeks ended January 3, 2017, the Company incurred approximately $0.6 million of transaction expenses related to the offer to exchange.

Earnings per Share

12 Months Ended

Jan. 01, 2019

Earnings Per Share [Abstract]

Earnings per Share

Basic income per share is calculated by dividing net income attributable to Del Taco’s common shareholders by the weighted average number of common shares outstanding for the period. In computing dilutive income per share, basic income per share is adjusted for the assumed issuance of all applicable potentially dilutive share-based awards, including warrants, restricted stock, common stock options and restricted stock units.

Below are basic and diluted net income per share for the periods indicated (amounts in thousands except share and per share data):



	52 Weeks Ended		52 Weeks Ended		53 Weeks Ended
	January 1, 2019		January 2, 2018		January 3, 2017
Numerator:
Net income	$	18,959	$	49,871	$	20,913
Denominator:
Weighted-average shares outstanding - basic	38,106,057		38,689,508		38,725,541
Dilutive effect of restricted shares	256,217		417,371		263,003
Dilutive effect of stock options	17,611		28,931		—
Dilutive effect of warrants	304,074		814,097		286,105
Weighted-average shares outstanding - diluted	38,683,959		39,949,907		39,274,649
Net income per share - basic	$	0.50	$	1.29	$	0.54
Net income per share - diluted	$	0.49	$	1.25	$	0.53
Antidilutive options, unvested restricted stock awards, and warrants excluded from the computations	686,278		69,722		8,343,842

Antidilutive stock options and unvested restricted stock were excluded from the computation of diluted net income per share due to the assumed proceeds from the award’s exercise or vesting being greater than the average market price of the common shares.

Income Taxes

12 Months Ended

Jan. 01, 2019

Income Tax Disclosure [Abstract]

Income Taxes

The component of the provision for income taxes are as follows (in thousands):



	52 Weeks Ended		52 Weeks Ended			53 Weeks Ended
	January 1, 2019		January 2, 2018			January 3, 2017
Current:
Federal	$	3,762	$	5,884		$	4,204
State	1,800		886			270
	5,562		6,770			4,474
Deferred:
Federal	698		(24,636		)	7,145
State	399		2,042			3,710
	1,097		(22,594		)	10,855
Income tax provision (benefit)	$	6,659	$	(15,824	)	$	15,329

On December 22, 2017, the Tax Cuts and Jobs Act, (the “Act”) was enacted, reducing the U.S. federal corporate income tax rate from 35% to 21%, among other changes, for tax years beginning after December 31, 2017.

The SEC staff issued Staff Accounting Bulletin 118, ("SAB 118") which provides guidance on accounting for the tax effects of the Act for which the accounting under ASC 740, Income Taxes (“ASC 740”) is incomplete. To the extent that a company's accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before enactment of the Act.

The Company re-measured the applicable deferred tax assets and liabilities based on the rates at which they are expected to reverse. The provisional amount recorded in fiscal 2017 related to the remeasurement of our deferred tax balance was a tax benefit of approximately $29.1 million based on then currently available information and interpretations, which are continuing to evolve. The Company will continue to analyze additional information and guidance related to the Act as supplemental legislation, regulatory guidance, or evolving technical interpretations become available. As of January 1, 2019, the Company has completed its analysis of the Act and recorded a $0.3 million favorable adjustment in the fourth quarter of 2018 to the provisional amount disclosed for the remeasurement of the deferred tax assets and liabilities.

The effective tax rates for the fifty-two weeks ended January 1, 2019, fifty-two weeks ended January 2, 2018 and fifty-three weeks ended January 3, 2017 were 26.0%, (46.5)% and 42.3% respectively. The difference between the effective rates and the statutory federal income tax rate is composed of the following items (dollars in thousands):



	52 Weeks Ended					52 Weeks Ended					53 Weeks Ended
	January 1, 2019					January 2, 2018					January 3, 2017
Federal income taxes	$	5,380		21.0	%	$	11,916		35.0	%	$	12,685		35.0	%
State and local income taxes, net of federal tax benefit	1,639			6.4	%	1,688			5.0	%	1,882			5.2	%
Targeted job credits	(727		)	(2.8	)%	(420		)	(1.2	)%	(448		)	(1.2	)%
Investment in subsidiary	—			—	%	—			—	%	570			1.6	%
Tax reform	(291		)	(1.1	)%	(29,111		)	(85.5	)%	—			—	%
Transaction costs	—			—	%	—			—	%	227			0.6	%
Executive compensation disallowed	362			1.4	%	81			0.2	%	104			0.3	%
Permanent tax differences and other	296			1.1	%	22			—	%	309			0.8	%
Income tax provision (benefit)	$	6,659		26.0	%	$	(15,824	)	(46.5	)%	$	15,329		42.3	%

Significant components of the Company's deferred tax assets and liabilities are as follows (in thousands):



	January 1, 2019			January 2, 2018
Deferred tax assets:
Deferred rent	$	1,173		$	741
Accrued insurance	3,685			3,332
Reserve for restructuring and closed restaurants	652			763
Net operating loss carryforwards and tax credits	122			485
Deferred income	1,196			1,069
Stock-based compensation	1,049			767
Accrued compensation	532			472
Other, net	494			355
Deferred tax assets	8,903			7,984
Less valuation allowance	—			—
Net deferred tax assets	8,903			7,984
Deferred tax liabilities:
Property, equipment and intangibles	(69,357		)	(67,696		)
Investment in subsidiary	(7,448		)	(7,420		)
Prepaid expenses	(1,569		)	(1,442		)
Deferred tax liabilities	(78,374		)	(76,558		)
Net deferred tax liabilities	$	(69,471	)	$	(68,574	)

The Company maintains deferred tax liabilities related to trademarks and other indefinite lived assets that are not netted against the deferred tax assets as reversal of the taxable temporary difference cannot serve as a source for realization of the deferred tax assets, because the deferred tax liability will not reverse until some indefinite future period when the assets are either sold or written down due to an impairment.

The Company had no federal net operating loss carryforwards as of both January 1, 2019 and January 2, 2018. State tax credit carryforwards as of January 1, 2019 totaled $0.1 million and begin to expire in 2024. State tax credit carryforwards as of January 2, 2018 totaled $0.6 million and begin to expire in 2024.

As of January 1, 2019 and January 2, 2018, the Company considered the weight of both positive and negative evidence and concluded that it is more likely than not that the Company's deferred tax assets will be realized and no valuation allowance is required.

As of January 1, 2019 and January 2, 2018, the liability for unrecognized tax positions was $0.2 million, and is included in other non-current liabilities in the consolidated balance sheets. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. During the fifty-two weeks ended January 1, 2019, fifty-two weeks ended January 2, 2018 and fifty-three weeks ended January 3, 2017, the Company did not have any accrued interest and penalties related to uncertain tax positions. The Company does not expect any significant increases or decreases within the next twelve months to its unrecognized tax positions. The total amount of net unrecognized tax positions that would impact the Company's effective tax rate, if ever recognized, is $0.2 million.

The Company is subject to U.S. and state income taxes. The Company is no longer subject to federal and state income tax examinations for years before 2015 and 2014, respectively. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses and tax credits were generated and carried forward, and make adjustments up to the amount of the net operating loss and tax credit carry forward amounts.

Leases

12 Months Ended

Jan. 01, 2019

Leases [Abstract]

Leases

As of January 1, 2019 and January 2, 2018, deferred rent liability was $16.6 million and $17.4 million, respectively, which includes unfavorable lease liabilities of $12.0 million and $14.5 million, respectively, net of accumulated amortization of $7.2 million and $6.1 million, respectively.

Franchise sublease income which includes minimum rent, percentage rent, real estate taxes and common area maintenance are classified separately under franchise sublease income on the consolidated statements of comprehensive income. Franchise sublease expenses which include minimum rent, percentage rent, real estate taxes and common area maintenance are classified separately under occupancy and other – franchise subleases on the consolidated statements of comprehensive income. Total franchise sublease income and franchise sublease expense for the Company comprise the following (in thousands):



	52 Weeks Ended			52 Weeks Ended			53 Weeks Ended
	January 1, 2019			January 2, 2018			January 3, 2017
Franchise sublease income	$	(3,115	)	$	(2,844	)	$	(2,343	)
Franchise sublease expense	2,855			2,608			2,207

Sublease rent income includes contingent rentals based on sales totaling $0.1 million during each of the fifty-two weeks ended January 1, 2019, the fifty-two weeks ended January 2, 2018 and the fifty-three weeks ended January 3, 2017.

Total rent expense for the Company for all non-cancelable operating leases comprise the following (in thousands):



	52 Weeks Ended			52 Weeks Ended			53 Weeks Ended
	January 1, 2019			January 2, 2018			January 3, 2017
Minimum rental expense	$	29,134		$	27,372		$	26,465
Favorable and unfavorable lease assets and liabilities amortization, net	(767		)	(809		)	(607		)
Straight-line rent expense	722			826			781
Contingent rent expense	715			685			805
	$	29,804		$	28,074		$	27,444

As of January 1, 2019, the Company is obligated under various capital leases having interest rates that average approximately 10%.

Minimum rental commitments and sublease minimum rental receipts as of January 1, 2019, under capital and operating leases having an initial non-cancelable term of one year or more are shown in the following table (in thousands):



	Rental Payments					Rental Receipts
	Capital Lease and Deemed Landlord Financing Liabilities			Operating Leases		Operating Subleases			Net Lease Commitments
2019	$	3,561		$	33,951	$	(2,564	)	$	34,948
2020	3,317			32,071		(2,403		)	32,985
2021	3,186			30,794		(2,409		)	31,571
2022	3,056			29,362		(2,392		)	30,026
2023	3,123			26,414		(2,274		)	27,263
Thereafter	34,071			153,675		(16,844		)	170,902
Total minimum lease payments	$	50,314		$	306,267	$	(28,886	)	$	327,695
Imputed interest	(29,003		)
Present value of payments	$	21,311

The Company has subleased 26 properties to other third parties where the Company remains primarily liable to the landlord for the performance of all obligations in the event that the sub-lessee does not perform its obligations under the lease. As a result of the sublease arrangements, future minimum rental commitments under operating leases will be offset by sublease amounts to be paid by the sub-lessee. The total of minimum sublease amounts to be received in the future under non-cancelable subleases is $28.9 million as of January 1, 2019.

One Del Taco franchisee has a direct sublease with a third party and Del Taco is a guarantor on the sublease which has a 13 year term expiring in 2031 and lease payments totaling approximately $1.8 million. The Company would remain a guarantor of the lease in the event the lease is extended for any established renewal periods. At this time, the Company does not anticipate any material defaults under the foregoing lease; therefore, no liability has been provided.

The amounts in operating lease and operating subleases in the table above include amounts for restaurant operating leases related to 11 of the 12 restaurants closed in the fourth fiscal quarter of 2015 (one such lease was terminated) and related subleases both of which have been included in our restaurant closure liability on our consolidated balance sheets as of January 1, 2019 on a present value basis.

During Fiscal 2017, the Company entered into two sale leaseback arrangements with third party private investors. These sale-leaseback transactions do not provide for any continuing involvement by the Company other than normal leases where the Company intends to use the property during the lease term. The leases have been accounted for as operating leases. The net proceeds from the transactions totaled approximately $9.9 million. Under one of the arrangements, the Company sold the land and building of an existing restaurant and leased it back for a term of 20 years. Under the other arrangement, the Company sold the land and building of a recently constructed restaurant and leased it back for a term of 20 years. The sale of these properties resulted in a loss of $0.3 million which is included in loss on disposal of assets, net in the consolidated statements of comprehensive income.

During Fiscal 2016, the Company entered into two sale-leaseback arrangements with third party private investors. These sale-leaseback transactions do not provide for any continuing involvement by the Company other than normal leases where the Company intends to use the properties during the lease terms. The leases have been accounted for as operating leases. The net proceeds from these transactions were $3.4 million. Under one of the arrangements, the Company sold the land and building of an existing restaurant and leased it back for a term of one year with the option to terminate with 60 days notice. Under the other arrangement, the Company sold the land and building of an acquired franchise-operated restaurant (see Note 5) and leased it back for a term of 20 years. The sale of these properties resulted in an immaterial loss which is included in loss on disposal of assets, net in the consolidated statements of comprehensive income.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Jan. 01, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The primary claims in the Company’s business are workers’ compensation and general liabilities. These insurance programs are self-insured or high deductible programs with excess coverage that management believes is sufficient to adequately protect the Company. In the opinion of management, adequate provision has been made for all incurred claims up to the self-insured or high deductible limits, including provision for estimated claims incurred but not reported. Because of the uncertainty of the ultimate resolution of outstanding claims, as well as the uncertainty regarding claims incurred but not reported, it is possible that management’s provision for these losses could change materially. However, no estimate can currently be made of the range of additional losses. Purchasing Commitments The Company enters into various purchase obligations in the ordinary course of business, generally of short term nature. Those that are binding primarily relate to commitments for food purchases and supplies, amounts owed under contractor and subcontractor agreements, orders submitted for equipment for restaurants under construction, information technology service agreements and marketing initiatives, some of which are related to both company-operated and franchise-operated locations. The Company also has a long-term beverage supply agreement with a major beverage vendor whereby marketing rebates are provided to the Company and its franchisees based upon the volumes of purchases for system-wide restaurants which vary according to demand for beverage syrup. This contract has terms extending into 2021. The Company’s future estimated cash payments under existing contractual purchase obligations for goods and services as of January 1, 2019, are approximately $55.9 million. The Company has excluded agreements that are cancelable without penalty. Severance and Executive Employment Agreements The Company has Severance Agreements and Executive Employment Agreements with certain key officers of the Company, which provide for payment of one year base salary and bonus incentive plan payments, in the event that the officers are terminated without cause. As of January 1, 2019 and January 2, 2018 the Company’s total contingent liability with respect to the aforementioned agreements is $3.3 million and $2.6 million, respectively, which was not recorded in the consolidated financial statements. Litigation In March 2014, a former Del Taco employee filed a purported class action complaint alleging that Del Taco has not appropriately provided meal breaks and failed to pay wages to its California hourly employees. Discovery is in process and Del Taco intends to assert all of its defenses to this threatened class action and the individual claims. Del Taco has several defenses to the action that it believes should prevent the certification of the class, as well as the potential assessment of any damages on a class basis. Legal proceedings are inherently unpredictable, and the Company is not able to predict the ultimate outcome or cost of the unresolved matter. However, based on management’s current understanding of the relevant facts and circumstances, the Company does not believe that these proceedings give rise to a probable and estimable loss and should not have a material adverse effect on the Company’s financial position, operations or cash flows. Therefore, Del Taco has not recorded any amount for the claim as of January 1, 2019. In September 2018, the Equal Employment Opportunity Commission (“EEOC”) filed a complaint on behalf of an individual complainant and an additional class of individuals alleging that Del Taco engaged in unlawful employment practices on the basis of sex and retaliation in violation of Title VII and are seeking an unspecified amount of damages. Del Taco has several defenses to the action that it believes could prevent a finding of liability in the case. Legal proceedings are inherently unpredictable, and Del Taco is not able to predict the ultimate outcome or cost of the unresolved matter. However, based on management’s current understanding of the relevant facts and circumstances, Del Taco does not believe that these proceedings give rise to a probable or estimable loss and should not have a material adverse effect on Del Taco’s financial position, operations or cash flows. Therefore, Del Taco has not recorded any amount for the claim as of January 1, 2019. The Company and its subsidiaries are parties to other legal proceedings incidental to their businesses, including claims alleging the Company’s restaurants do not comply with the Americans with Disabilities Act of 1990. In the opinion of management, based upon information currently available, the ultimate liability with respect to those other actions will not have a material effect on the operating results, cash flows or the financial position of the Company.

Retirement Plans	12 Months Ended
Retirement Plans	Jan. 01, 2019
Retirement Benefits [Abstract]
Retirement Plans	Retirement Plans The Company has a 401(k) retirement plan which covers all employees who meet certain age and minimum service hour requirements who elect to participate and provided for matching contributions totaling approximately $86,000 during the fifty-two weeks ended January 1, 2019, $82,000 during the fifty-two weeks ended January 2, 2018 and $80,000 during the fifty-three weeks ended January 3, 2017.

Quarterly Financial Data (Unaudited)

12 Months Ended

Jan. 01, 2019

Quarterly Financial Data [Abstract]

Quarterly Financial Data (Unaudited)

Summarized unaudited quarterly financial data (amounts in thousands except per share data):



	16 Weeks Ended		12 Weeks Ended
Fiscal Year 2018	January 1, 2019		September 11, 2018		June 19, 2018		March 27, 2018
Total revenue	$	157,293	$	117,830	$	117,813	$	112,554
Income from operations	10,696		9,195		7,804		6,338
Net income	5,646		5,874		4,210		3,229
Earnings per share:
Basic	$	0.15	$	0.15	$	0.11	$	0.08
Diluted	$	0.15	$	0.15	$	0.11	$	0.08



	16 Weeks Ended		12 Weeks Ended
Fiscal Year 2017	January 2, 2018		September 12, 2017		June 20, 2017		March 28, 2017
Total revenue	$	146,542	$	110,988	$	108,581	$	105,345
Income from operations	12,825		9,533		10,276		8,613
Net income	35,202		5,101		5,330		4,238
Earnings per share:
Basic	$	0.91	$	0.13	$	0.14	$	0.11
Diluted	$	0.89	$	0.13	$	0.13	$	0.10

Subsequent Events (Notes)	12 Months Ended
Subsequent Events (Notes)	Jan. 01, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Refranchising and Franchise Acquisitions During the first quarter of 2019, the Company sold 13 company-operated restaurants in the Southern California area to existing franchisees. The net proceeds related to these sales are approximately $2.1 million. The property and equipment related to these restaurants was reclassified to "Assets Held for Sale" on the Consolidated Balance Sheet (see Note 2 for further discussion). In addition, during the first quarter of 2019, the Company acquired three franchise-operated restaurants in the Southern California area for approximately $3.1 million. Sale-Leaseback During the first quarter of 2019, the Company entered into two sale-leaseback arrangements with third party private investors. Under one of the arrangements, the Company sold the land and building related to a restaurant constructed during 2018 and leased it back for a term of 20 years. Under the other arrangement, the Company sold the land related to a restaurant constructed during 2018 and leased it back for a term of 20 years. The net proceeds from these transactions totaled approximately $10.0 million. The assets related to these owned properties were included in "Current Assets Held for Sale" on the Consolidated Balance Sheet (see Note 2 for further discussion).

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Jan. 01, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

Del Taco Restaurants, Inc.

Schedule II - Valuation and Qualifying Accounts

Allowance for Doubtful Accounts

(in thousands)



			Additions
Description	Balance at beginning of period		Charged to costs and expenses		Charge to other accounts		Deductions		Balance at end of period
Fifty-Two Weeks Ended January 1, 2019	$	57	$	45	$	—	$	26	$	76

Fifty-Two Weeks Ended January 2, 2018	57		—		—		—		57

Fifty-Three Weeks Ended January 3, 2017	128		—		—		71		$	57

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jan. 01, 2019

Accounting Policies [Abstract]

Basis of Presentation

The Company’s fiscal year ends on the Tuesday closest to December 31. Fiscal years 2018 and 2017 are both fifty-two week periods. In a fifty-two week fiscal year, the first, second and third quarters each include twelve weeks of operations and the fourth quarter includes sixteen weeks of operations. Fiscal year 2016 is a fifty-three week period. In a fifty-three week fiscal year, the first, second and third quarters each include twelve weeks of operations and the fourth quarter includes seventeen weeks of operations. For fiscal year 2018, the Company’s financial statements reflect the fifty-two weeks ended January 1, 2019. For fiscal year 2017, the Company's financial statements reflect the fifty-two weeks ended January 2, 2018. For fiscal year 2016, the Company’s financial statements reflect the fifty-three weeks ended January 3, 2017

Principles of Consolidation

The consolidated financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and the rules and regulations of Securities and Exchange Commission (“SEC”). The accompanying consolidated financial statements include the accounts of the Company and its wholly and majority owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that such estimates have been based on reasonable and supportable assumptions and the resulting estimates are reasonable for use in the preparation of the consolidated financial statements. Actual results could differ from these estimates. The Company’s significant estimates include estimates for impairment of goodwill, intangible assets and property and equipment, valuations provided in business combinations, insurance reserves, restaurant closure reserves, stock-based compensation, contingent liabilities, certain leasing activities and income tax valuation allowances.

Variable Interest Entities

In accordance with Accounting Standards Codification ("ASC") 810, Consolidation, the Company applies the guidance related to variable interest entities ("VIE"), which defines the process for how an enterprise determines which party consolidates a VIE as primarily a qualitative analysis. The enterprise that consolidates the VIE (the primary beneficiary) is defined as the enterprise with (1) the power to direct activities of the VIE that most significantly affect the VIE's economic performance and (2) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. The Company franchises its operations through franchise agreements entered into with franchisees and therefore, the Company does not possess any ownership interests in franchise entities or other affiliates. The franchise agreements are designed to provide the franchisee with key decision-making ability to enable it to oversee its operations and to have a significant impact on the success of the franchise, while the Company’s decision-making rights are related to protecting the Company’s brand. Based upon the Company’s analysis of all the relevant facts and considerations of the franchise entities, the Company has concluded that the franchise agreements are not variable interest entities.

Revenue Recognition

Company Restaurant Sales from the operation of company-operated restaurants are recognized when food and service is delivered to customers. The Company reports revenue net of promotional allowances as well as sales taxes collected from customers and remitted to governmental taxing authorities.

Franchise Revenue is comprised of (i) development fees, (ii) franchise fees, (iii) on-going royalties, (iv) renewal fees and (v) other franchise revenue. Development and franchise fees, portions of which are collected in advance and are non-refundable, received pursuant to individual development agreements, grant the right to develop franchise-operated restaurants in future periods in specific geographic areas. Both development fees and franchise fees are deferred and recognized as revenue over the term of the related franchise agreement for the respective restaurant and renewal fees are deferred and recognized over the term of the renewal agreement. Development fees and franchise fees are also generally recognized as revenue upon the termination of the development agreement with the franchisee. Deferred development fees and deferred franchise fees are included in other non-current liabilities on the consolidated balance sheets. Royalties from franchise-operated restaurants are based on a percentage of franchise restaurant sales and are recognized in the period the related franchise-operated restaurant sales occur. To a lessor extent, Franchise Revenue also includes pass-through fees for services such as software maintenance and technology subscriptions since we are considered the principal related to the purchase and sale of the services to the franchisee and have no remaining performance obligations. The related expenses are recognized in general and administrative expenses.

Franchise Sublease and Other Income is comprised of rental income associated with properties leased or subleased to franchisees and is recognized as revenue on an accrual basis. In addition, Franchise Advertising Contributions consist of a percentage of franchise restaurant's net sales, typically 4%, paid to the Company for advertising and promotional services that the Company provides. The offset is recorded to Franchise Advertising Expenses. As well as other franchise income related to information technology hardware such as point of sale equipment, tablets, kitchen display systems, servers, scanners and printers that we occasionally purchase from third party vendors and then sell to franchisees. Since we are considered the principal related to the purchase and sale of the hardware to the franchisee and have no remaining performance obligations, the franchisee reimbursement is recognized as Franchise Sublease and Other Income upon transfer of the hardware. The related expenses are recognized in Occupancy and Other - Franchise Subleases and Other.

Gift Cards

The Company sells gift cards to customers in its restaurants. The gift cards sold to customers have no stated expiration dates and are subject to potential escheatment laws in the various jurisdictions in which the Company operates. Deferred gift card income totaled $2.8 million and $2.5 million as of January 1, 2019 and January 2, 2018, respectively. The current portion of the deferred gift card income is included in other accrued liabilities on the consolidated balance sheets and totaled $1.5 million and $1.3 million as of January 1, 2019 and January 2, 2018. The non-current portion of the deferred gift card income was $1.3 million and $1.2 million as January 1, 2019 and January 2, 2018, respectively, and is included in other non-current liabilities on the consolidated balance sheets. The Company recognizes revenue from gift cards: (i) when the gift card is redeemed by the customer; or (ii) under the delayed recognition method, when the likelihood of the gift card being redeemed by the customer is remote (gift card breakage) and the Company determines that there is not a legal obligation to remit the unredeemed gift cards to the relevant jurisdiction. The determination of the gift card breakage rate is based upon Company specific historical redemption patterns. Recognized gift card breakage revenue was not significant to any period presented in the consolidated statements of comprehensive income. Any future revisions to the estimated breakage rate may result in changes in the amount of breakage revenue recognized in future periods but is not expected to be significant.

Cash and Cash Equivalents

The Company considers short-term, highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Amounts receivable from credit card issuers are typically converted to cash within 2 to 4 days of the original sales transaction and are considered to be cash equivalents.

Accounts and Other Receivables, Net

Accounts and other receivables, net consist primarily of receivables from franchisees, sublease tenants, a vendor and landlords. Receivables from franchisees include sublease rents, royalties, services and contractual marketing fees associated with the franchise agreements. Sublease tenant receivables relate to subleased properties where the Company is a party and obligated on the primary lease agreement. The vendor receivable is for earned reimbursements from a vendor and the landlord receivables are for earned landlord reimbursement related to restaurants opened. The allowance for doubtful accounts is based on historical experience and a review on a specific identification basis of the collectability of existing receivables and totaled $0.1 million as of both January 1, 2019 and January 2, 2018.

Vendor Allowances

The Company receives support from one of its vendors in the form of reimbursements. The reimbursements are agreed upon with the vendor, but do not represent specific, incremental, identifiable costs incurred by the Company in selling the vendor’s products. Such reimbursements are recorded as a reduction of the costs of purchasing the vendor’s products. The non-current portion of reimbursements received by the Company in advance is included in other non-current liabilities on the consolidated balance sheets and totaled $0.7 million and $1.1 million as of January 1, 2019 and January 2, 2018, respectively. The current portion of these reimbursements is included in other accrued liabilities on the consolidated balance sheets and totaled $0.4 million as of both January 1, 2019 and January 2, 2018.

Inventories

Inventories, consisting of food items, packaging and beverages, are valued at the lower of cost (first-in, first-out method) or market.

Property and Equipment

Property and equipment includes land, buildings, leasehold improvements, restaurant and other equipment, restaurant property leased to others and buildings under capital leases. Land, buildings, leasehold improvements, property and equipment acquired in business combinations are initially recorded at their estimated fair value. Land, buildings, leasehold improvements, property and equipment acquired or constructed in the normal course of business are initially recorded at cost. The Company provides for depreciation and amortization based on the estimated useful lives of assets using the straight-line method.

Estimated useful lives for property and equipment are as follows:



Buildings		20–35 years
Leasehold improvements		Shorter of useful life (typically 20 years) or lease term
Buildings under capital leases		Shorter of useful life (typically 20 years) or lease term
Restaurant and other equipment		3–15 years

The estimated useful lives for leasehold improvements are based on the shorter of the estimated useful lives of the assets or the related lease term, which generally includes reasonably assured option periods expected to be exercised by the Company when the Company would suffer an economic penalty if not exercised. Depreciation and amortization expense associated with property and equipment totaled $23.1 million for the fifty-two weeks ended January 1, 2019, $21.0 million for the fifty-two weeks ended January 2, 2018 and $20.6 million for the fifty-three weeks ended January 3, 2017. These amounts include $0.9 million for the fifty-two weeks ended January 1, 2019, $1.2 million for the fifty-three weeks ended January 2, 2018 and $1.4 million for the fifty-three weeks ended January 3, 2017 related to buildings under capital leases. Accumulated depreciation and amortization associated with property and equipment includes $2.2 million and $2.5 million related to buildings under capital leases as of January 1, 2019 and January 2, 2018, respectively.

The Company capitalizes construction costs which consist of internal payroll and payroll related costs and travel costs related to the successful acquisition, development, design and construction of the Company's new restaurants. Capitalized construction costs totaled $1.6 million for both the fifty-two weeks ended January 1, 2019 and fifty-two weeks ended January 2, 2018, and $1.3 million for the fifty-three weeks ended January 3, 2017. If the Company subsequently makes a determination that a site for which development costs have been capitalized will not be acquired or developed, any previously capitalized development costs are expensed and included in general and administrative expenses in the consolidated statements of comprehensive income. The Company capitalizes interest in connection with the construction of its restaurants. Interest capitalized totaled approximately $0.1 million for each of the fifty-two weeks ended January 1, 2019, the fifty-two weeks ended January 2, 2018, and the fifty-three weeks ended January 3, 2017.

Gains and losses on the disposal of assets are recorded as the difference between the net proceeds received, if any, and net carrying values of the assets disposed and are included in loss on disposal of assets, net in the consolidated statements of comprehensive income.

Deferred Financing Costs

Deferred financing costs represent third-party debt costs that are capitalized and amortized to interest expense over the associated term of the debt agreement using the effective interest method. Deferred financing costs, along with lender debt discount, are presented net of the related debt balances on the consolidated balance sheets.

Goodwill and Trademarks

The Company’s goodwill and trademarks are not amortized, but tested annually for impairment and tested more frequently for impairment if events and circumstances indicate that the asset might be impaired. The Company conducts annual goodwill and trademark impairment tests in the fourth quarter of each fiscal year or whenever an indicator of impairment exists.

In assessing potential goodwill impairment, the Company has the option to first assess the qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair value of net assets, including goodwill, is less than its carrying amount. If the qualitative factors indicate that it is more likely than not that the fair value of net assets, including goodwill, is less than its carrying amount, the Company performs a two-step impairment test of goodwill. In the first step, the Company estimates the fair value of net assets, including goodwill, and compares it to the carrying value of net assets, including goodwill. If the carrying value exceeds the estimated fair value of net assets, including goodwill, the second step is performed to measure the amount of the impairment loss, if any. In the second step, the amount of the impairment loss is the excess of the carrying amount of the goodwill over its implied fair value.

The methods the Company uses to estimate fair value include discounted future cash flows analysis and market valuation based on similar companies. Key assumptions included in the cash flow model include future revenues, operating costs, working capital changes, capital expenditures and a discount rate that approximates the Company's weighted average cost of capital.

The Company performs an annual impairment test for indefinite-lived intangible assets during the fourth fiscal quarter of each year, or more frequently if impairment indicators arise.

In assessing potential impairments for the fourth quarter test for 2018, the Company performed a qualitative assessment to determine whether it is more likely than not that the fair value of goodwill or indefinite-lived trademark are less than the carrying amount. Upon completion of the fourth quarter 2018 annual impairment assessment, the Company determined that no goodwill or trademark impairment was indicated. As of January 1, 2019, the Company is not aware of any significant indicators of impairment that exist for goodwill or trademark that would require additional analysis.

Intangible Assets, Net

Intangible assets primarily include favorable lease assets and franchise rights. Favorable lease assets represent the fair values of acquired lease contracts having contractual rents that are favorable compared to fair market rents as of the Closing Date of the Business Combination, and are amortized on a straight-line basis over the remaining lease terms to expense in the consolidated statements of comprehensive income. Franchise rights, which represent the fair value of franchise agreements based on the projected royalty revenue stream as of the Closing Date of the Business Combination, are amortized on a straight-line basis to depreciation and amortization expense in the consolidated statements of comprehensive income over the remaining term of the franchise agreements.

Other Assets, Net

Other assets, net consist of security deposits and other capitalized costs. The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, and (ii) compensation and related benefits for employees who are directly associated with the software projects. Capitalized software costs are amortized over the estimated useful life, typically 3 years. The net carrying value of capitalized software costs for the Company totaled $2.3 million and $2.1 million as of January 1, 2019 and January 2, 2018, respectively, and is included in other assets, net in the consolidated balance sheets. Capitalized software costs totaled $1.5 million for the fifty-two weeks ended January 1, 2019, $1.0 million for the fifty-two weeks ended January 2, 2018 and $1.3 million for the fifty-three weeks ended January 3, 2017. Amortization expenses totaled $1.2 million for the fifty-two weeks ended January 1, 2019, $1.0 million for the fifty-two weeks ended January 2, 2018 and $0.9 million for the fifty-three weeks ended January 3, 2017

Long-Lived Assets

Long-lived assets, including property and equipment and definite lived intangible assets (other than goodwill and indefinite-lived intangible assets), are reviewed by the Company for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Long-lived assets are grouped and evaluated for impairment at the lowest level for which there are identifiable cash flows that are independent of the cash flows of other groups of assets. The Company evaluates such cash flows for individual restaurants and franchise agreements on an undiscounted basis. If it is determined that the carrying amounts of such long-lived assets are not recoverable, the assets are written down to their estimated fair values. The Company generally estimates fair value using either the land and building real estate value for the respective restaurant or the discounted value of the estimated cash flows associated with the respective restaurant or agreement.

Rent Expense and Deferred Rent

Rent Expense and Deferred Rent Liability

The Company has non-cancelable lease agreements for certain restaurant land and buildings under terms ranging up to 35 years, with one to four options to extend the lease generally for five to ten years per option period. At inception, each lease is evaluated to determine whether it will be classified as an operating or capital lease. Certain leases provide for contingent rentals based on percentages of net sales or have other provisions obligating the Company to pay related property taxes and certain other expenses. Contingent rentals are generally based on sales levels in excess of stipulated amounts as defined in the lease agreement, and thus are not considered minimum lease payments and are included in rent expense as incurred. Certain leases contain fixed and determinable escalation clauses for which the Company recognizes rental expense under these leases on the straight-line basis over the lease terms, which includes the period of time from when the Company takes possession of the leased space until the restaurant opening date (the rent holiday period), and the cumulative expense recognized on the straight-line basis in excess of the cumulative payments is included in other non-current liabilities. In addition, the Company subleases certain buildings to franchisees and other unrelated third parties, which are classified as operating leases.

In some cases, the land and building the Company will lease requires construction to ready the space for its intended use, and in certain cases, the Company has involvement with the construction of leased assets. The construction period begins when the Company executes the lease agreement with the landlord and continues until the space is substantially complete and ready for its intended use. In accordance with ASC 840, Leases, the Company must consider the nature and extent of its involvement during the construction period.

In accordance with ASC 840, Leases, the Company may expend cash for structural additions on leased premises that may be reimbursed in whole or in part by landlords as construction contributions pursuant to agreed-upon terms in the leases. Depending on the specifics of the leased space and the lease agreement, the amounts paid for structural components will be recorded during the construction period as construction-in-progress and the landlord construction contributions will be recorded as a deferred rent liability. Upon completion of construction for those leases that meet certain criteria, the lease may qualify for sale-leaseback treatment. For these leases, the deferred rent liability and the associated construction-in-progress will be removed and any gain on sale will be recorded as deferred income and amortized over the lease term to gain on disposal of assets and any loss on sale will be expensed immediately to loss on disposal of assets, net. If the lease does not qualify for sale-leaseback treatment, the deferred rent liability will be reclassified to a deemed landlord financing liability and will be amortized over the lease term based on the rent payments designated in the lease agreement with rent payments applied to deemed landlord financing liability and interest expense.

Unfavorable lease liabilities represent the fair values of acquired lease contracts having contractual rents that are unfavorable compared to fair market rents as of the Closing Date of the Business Combination, and are amortized on a straight-line basis over the remaining lease terms to expense in the consolidated statements of comprehensive income.

Insurance Reserves

Given the nature of the Company’s operating environment, the Company is subject to workers’ compensation and general liability claims. To mitigate a portion of these risks, the Company maintains insurance for individual claims in excess of deductibles per claim (the Company’s insurance deductibles range from $0.25 million to $0.50 million per occurrence for workers’ compensation and are $0.35 million per occurrence for general liability). The Company is not the primary obligor for its worker's compensation insurance policy. The amount of loss reserves and loss adjustment expenses is determined based on an estimation process that uses information obtained from both Company-specific and industry data, as well as general economic information. Loss reserves are based on estimates of expected losses for determining reported claims and as the basis for estimating claims incurred but not reported. The estimation process for loss exposure requires management to continuously monitor and evaluate the life cycle of claims. Management also monitors the reasonableness of the judgments made in the prior year’s estimation process (referred to as a hindsight analysis) and adjusts current year assumptions based on the hindsight analysis. The Company utilizes actuarial methods to evaluate open claims and estimate the ongoing development exposure related to workers’ compensation and general liability.

Advertising Costs

Franchisees pay a weekly fee to the Company of 4% of their restaurants’ net sales as reimbursement for advertising and promotional services that the Company provides. Fees received in advance of payment for provided services are included in other accrued liabilities and were $0.7 million and $0.3 million at January 1, 2019 and January 2, 2018, respectively. Company-operated restaurants contribute to the advertising fund on the same basis as franchise-operated restaurants. At January 1, 2019 and January 2, 2018, the Company had an additional $0.9 million and $0.4 million, respectively, accrued for this requirement.

Production costs for radio and television advertising are expensed when the commercials are initially aired. Costs of distribution of advertising are charged to expense on the date the advertising is aired or distributed. These costs, as well as other marketing-related expenses for advertising are included in occupancy and other operating expenses in the consolidated statements of comprehensive income for Company expenses and included in franchise advertising expenses in the consolidated statements of comprehensive income for franchise expenses. Advertising expenses for the Company were $19.0 million for the fifty-two weeks ended January 1, 2019, $18.1 million for the fifty-two weeks ended January 2, 2018 and $17.2 million for the fifty-three weeks ended January 3, 2017.

Pre-opening Costs

Pre-opening costs, which include restaurant labor, supplies, cash and non-cash rent expense and occupancy and other operating costs incurred prior to the opening of a new restaurant are expensed as incurred.

Restaurant Closure Charges, Net

The Company makes decisions to close restaurants based on their cash flows, anticipated future profitability and leasing arrangements. The Company determines if discontinued operations treatment is appropriate and estimates the future obligations, if any, associated with the closure of restaurants and records the corresponding restaurant closure liability at the time the restaurant is closed. These restaurant closure obligations primarily consist of the liability for the present value of future lease obligations, net of estimated sublease income. Restaurant closure charges, net are comprised of direct costs related to the restaurant closure and initial charges associated with the recording of the liability at fair value, accretion of the restaurant closure liability during the period, any positive or negative adjustments to the restaurant closure liability in subsequent periods as more information becomes available and sublease income from leases which are treated as deemed landlord financing. Changes to the estimated liability for future lease obligations based on new facts and circumstances are considered to be a change in estimate and are recorded prospectively. Accretion expense is recorded in order to appropriately reflect the present value of the lease obligations as of the end of a reporting period. Lease payments net of sublease income received related to these obligations reduce the overall liability. To the extent that the disposal or abandonment of related property and equipment results in gains or losses, such gains or losses are included in loss on disposal of assets, net in the consolidated statements of comprehensive income.

Stock-Based Compensation Expense

The Company recognizes compensation expense for all share-based payment awards made to employees and non-employee board of directors based on their estimated grant date fair values using the Black-Scholes option pricing model for option grants and the closing price of the underlying common stock on the date of the grant for restricted stock awards. The Company recognizes these compensation costs for only those awards expected to vest, on a straight-line basis over the requisite service period of the award. The Company estimates the number of awards expected to vest based, in part, on historical forfeiture rates and also based on management's expectations of employee turnover within the specific employee groups receiving the awards. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Stock-based compensation expense for the Company’s stock-based compensation awards is recognized ratably over the vesting period on a straight-line basis.

Income Taxes

The Company uses the liability method of accounting for income taxes. Deferred income taxes are provided for temporary differences between financial statement and income tax reporting, using tax rates scheduled to be in effect at the time the items giving rise to the deferred taxes reverse. The Company recognizes the impact of a tax position in the financial statements if that position is more likely than not of being sustained by the taxing authority. Accordingly, the Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Derivative Instruments and Hedging Activities

The Company is exposed to variability in future cash flows resulting from fluctuations in interest rates related to its variable rate debt. As part of its overall strategy to manage the level of exposure to the risk of fluctuations in interest rates, the Company has used various interest rate contracts including interest rate caps. The Company recognizes all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets. When they qualify as hedging instruments, the Company designates interest rate caps as cash flow hedges of forecasted variable rate interest payments on certain debt principal balances.

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current earnings.

The Company enters into interest rate derivative contracts with major banks and is exposed to losses in the event of nonperformance by these banks. The Company anticipates, however, that these banks will be able to fully satisfy their obligations under the contracts. Accordingly, the Company does not obtain collateral or other security to support the contracts.

Contingencies

The Company recognizes liabilities for contingencies when an exposure that indicates it is probable that an asset has been impaired or that a liability has been incurred and the amount of impairment or loss can be reasonably estimated. The Company’s ultimate legal and financial liability with respect to such matters cannot be estimated with certainty and requires the use of estimates. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. The Company records legal settlement costs when those costs are probable and reasonably estimable.

Comprehensive Income (Loss)

Comprehensive income (loss) includes changes in equity from transactions and other events and circumstances from nonoperational sources, including, among other things, the Company’s unrealized gains and losses on effective interest rate caps which are included in other comprehensive income (loss), net of tax.

Segment Information

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Company’s chief operating decision makers in deciding how to allocate resources. Similar operating segments can be aggregated into a single operating segment if the businesses are similar. Management has determined that the Company has one operating segment, and therefore one reportable segment. The Company’s chief operating decision maker (CODM) is its Chief Executive Officer; its CODM reviews financial performance and allocates resources at a consolidated level on a recurring basis.

Related Party Transactions

Of the 424,439 warrants purchased during the fifty-two weeks ended January 2, 2018, 400,000 warrants were purchased from PW Acquisitions, LP, a related party, at $3.75 per warrant, representing a 5% discount from the closing price of $3.95 per warrant on the transaction date. A member of the Company's Board of Directors is the chief executive officer and managing member of the general partner of PW Acquisitions, LP.

Fair Value of Financial Instruments

The Company measures fair value using 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 Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three tiers in the fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:


•	Level 1, defined as observable inputs such as quoted prices in active markets;


•	Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and


•	Level 3, defined as unobservable inputs which reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include the use of third-party pricing services, option pricing models, discounted cash flow models and similar techniques.

Concentration of Risks

Financial instruments that potentially subject the Company to a concentration of credit risk are cash and cash equivalents. The Company maintains its day-to-day operating cash balances in non-interest-bearing accounts. Although the Company at times maintains balances that exceed amounts insured by the Federal Deposit Insurance Corporation, it has not experienced any losses related to these balances and management believes the credit risk to be minimal.

The Company extends credit to franchisees for franchise and advertising fees on customary credit terms, which generally do not require collateral or other security. In addition, management believes there is no concentration of risk with any single franchisee or small group of franchisees whose failure or nonperformance would materially affect the Company’s results of operations.

The Company has entered into a long-term purchase agreement with a distributor for delivery of essentially all food and paper supplies to all company-operated and franchise-operated restaurants except for one location in Guam. Disruption in shipments from this distributor could have a material adverse effect on the results of operations and financial condition of the Company. However, management of the Company believes sufficient alternative distributors exist in the marketplace although it may take some time to enter into replacement distribution arrangements and the cost of distribution may increase as a result.

As of January 1, 2019, Del Taco operated and franchised a total of 376 restaurants in California (255 company-owned and 121 franchise-operated locations). As a result, the Company is particularly susceptible to adverse trends and economic conditions in California. In addition, given this geographic concentration, negative publicity regarding any of the restaurants in California could have a material adverse effect on the Company’s business and operations, as could other regional occurrences such as local strikes, fires, earthquakes or other natural disasters.

Recently Adopted and Recently Issued Accounting Standards

Recently Adopted Accounting Standards

In March 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-04, Liabilities-Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products, which is designed to provide guidance and eliminate diversity in the accounting for the derecognition of financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. The Company adopted the requirements of the new standard in the first quarter of 2018, utilizing the cumulative effect transition method. There was no material impact of the standard on the Company's consolidated financial statements and related disclosures as a result of adopting this standard.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides a comprehensive new revenue recognition model that requires a company to recognize revenue in an amount that reflects the consideration it expects to receive for the transfer of promised goods or services to its customers. The standard also requires additional disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09, also known as FASB ASC Topic 606 ("Topic 606") supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition ("Topic 605"). On January 3, 2018 (the first day of fiscal year 2018), the Company adopted the requirements of Topic 606, utilizing the modified retrospective method of transition. Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, as detailed below. Topic 606 does not materially impact the recognition of company restaurant sales or franchise royalty income from franchisees included in franchise revenue.

Franchise Fees

The adoption of Topic 606 changed the timing of the recognition of initial franchise fees, including franchise and development fees, and renewal fees, both included in franchise revenue in the consolidated statements of comprehensive income. Under Topic 605, initial franchise fees were recognized when all material obligations had been performed and conditions had been satisfied, typically when operations of a new franchise restaurant had commenced, and renewal fees were recognized when a renewal agreement became effective. Topic 606 requires franchise and renewal fees to be deferred and recognized over the term of the related franchise agreement for the respective restaurant. Franchise agreements typically have a term of twenty years. The impact of the deferral of initial franchise and renewal fees received in a given year may be offset by the recognition of revenue from fees retrospectively deferred from prior years. Upon adoption, the Company recorded approximately $0.7 million as a cumulative effect adjustment to opening retained earnings comprised of $1.0 million of deferred franchise fees included in other non-current liabilities on the consolidated balance sheet as of January 3, 2018 (the first day of fiscal year 2018) related to franchise and renewal fees previously recognized since the Business Combination on June 30, 2015, partially offset by an adjustment of $0.3 million to deferred taxes related to the $1.0 million of deferred franchise fees.

During the fifty-two weeks ended January 1, 2019, the Company recognized approximately $0.1 million in franchise revenue related to the amortization of the deferred franchise fees recognized at January 3, 2018 as a result of the adoption of Topic 606, and recognized approximately $0.1 million in franchise revenue as a result of the termination of one development agreement.

Deferred franchise fees are recognized straight-line over the term of the underlying agreement and the amount expected to be recognized in franchise revenue for amounts in deferred franchise fees as of January 1, 2019 is as follows (in thousands):



FY 2019	$	87
FY 2020	83
FY 2021	81
FY 2022	80
FY 2023	77
Thereafter	962
Total Deferred Franchise Fees	$	1,370

Advertising

The adoption of the new guidance changed the reporting of advertising contributions from franchisees and the related advertising expenses, which were not previously included in the consolidated statements of comprehensive income. Topic 606 requires these franchise advertising contributions and expenses to be reported on a gross basis in the consolidated statements of comprehensive income, which impacted our total revenues and expenses. However, the franchise advertising contributions and expenses are expected to be largely offsetting and therefore does not have a significant impact on reported net income. The current year impact to revenue for franchise advertising contributions and to expenses for franchise advertising expenses for the fifty-two weeks ended January 1, 2019 was an increase of $13.3 million for both revenue and expense as a result of applying Topic 606.

Other Revenue Transactions

The Company, previously under Topic 605, recorded certain other franchise expenses net of the related fees received from franchisees. Under Topic 606, the Company is now including these revenues and expenditures on a gross basis within the consolidated statements of comprehensive income. While this change materially impacted the gross amount of reported franchise related revenue and related expenses on the consolidated statements of comprehensive income, the impact is an offsetting increase to both revenue and expense such that there is not a significant, if any, impact on operating income and net income. The current year impact to revenues for the fifty-two weeks ended January 1, 2019 was an increase of approximately $0.7 million as a result of applying Topic 606, with an offsetting increase in expenses.

Comparison to Amounts if Previous Standards Had Been in Effect

The following tables reflect the impact of the adoption of Topic 606 on the Company's consolidated balance sheet as of January 1, 2019 and on the Company's consolidated statements of comprehensive income and cash flows from operating activities for the fifty-two weeks ended January 1, 2019 and the amounts as if Topic 605 was in effect ("Amounts Under Previous Standards") (in thousands):



	January 1, 2019
	As Reported		Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	19,877	$	—		$	19,877
Other accrued liabilities	34,785		—			34,785
Current portion of capital lease obligations and deemed landlord financing liabilities	1,033		—			1,033
Total current liabilities	55,695		—			55,695
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net	178,664		—			178,664
Deferred income taxes	69,471		370			69,841
Other non-current liabilities	32,852		(1,369		)	31,483
Total liabilities	336,682		(999		)	335,683
Shareholders’ equity:
Preferred stock	—		—			—
Common stock	4		—			4
Additional paid-in capital	336,941		—			336,941
Accumulated other comprehensive income	180		—			180
Retained earnings	85,149		999			86,148
Total shareholders’ equity	422,274		999			423,273
Total liabilities and shareholders’ equity	$	758,956	$	—		$	758,956



	52 Weeks Ended January 1, 2019
	As Reported			Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Revenue:
Company restaurant sales	$	471,193		$	—		$	471,193
Franchise revenue	17,569			(370		)	17,199
Franchise advertising contributions	13,300			(13,300		)	—
Franchise sublease and other income	3,428			(312		)	3,116
Total revenue	505,490			(13,982		)	491,508
Operating expenses:
Restaurant operating expenses:
Food and paper costs	128,873			—			128,873
Labor and related expenses	151,954			—			151,954
Occupancy and other operating expenses	97,745			—			97,745
General and administrative	43,773			(770		)	43,003
Franchise advertising expenses	13,300			(13,300		)	—
Depreciation and amortization	25,794			—			25,794
Occupancy and other - franchise subleases and other	3,167			(312		)	2,855
Pre-opening costs	1,584			—			1,584
Impairment of long-lived assets	3,861			—			3,861
Restaurant closure charges, net	394			—			394
Loss on disposal of assets, net	1,012			—			1,012
Total operating expenses	471,457			(14,382		)	457,075
Income from operations	34,033			400			34,433
Other expense, net
Interest expense	9,075			—			9,075
Other income	(660		)	—			(660		)
Total other expense, net	8,415			—			8,415
Income from operations before provision for income taxes	25,618			400			26,018
Provision for income taxes	6,659			108			6,767
Net income	18,959			292			19,251
Other comprehensive income:
Change in fair value of interest rate cap, net of tax	122			—			122
Reclassification of interest rate cap amortization included in net income	44			—			44
Total other comprehensive income	166			—			166
Comprehensive income	$	19,125		$	292		$	19,417
Earnings per share:
Basic	$	0.50		$	0.01		$	0.51
Diluted	$	0.49		$	0.01		$	0.50



	52 Weeks Ended January 1, 2019
	As Reported			Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Operating activities
Net income	$	18,959		$	292		$	19,251
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts	45			—			45
Depreciation and amortization	25,794			—			25,794
Amortization of favorable and unfavorable lease assets and liabilities, net	(767		)	—			(767		)
Amortization of deferred financing costs and debt discount	445			—			445
Stock-based compensation	6,079			—			6,079
Impairment of long-lived assets	3,861			—			3,861
Deferred income taxes	1,097			108			1,205
Loss on disposal of assets, net	1,012			—			1,012
Restaurant closure charges	449			—			449
Other income	(523		)	—			(523		)
Changes in operating assets and liabilities:
Accounts and other receivables, net	616			—			616
Inventories	(220		)	—			(220		)
Prepaid expenses and other current assets	1,949			—			1,949
Other assets	(125		)	—			(125		)
Accounts payable	2			—			2
Other accrued liabilities	(488		)	—			(488		)
Other non-current liabilities	3,647			(400		)	3,247
Net cash provided by operating activities	$	61,832		$	—		$	61,832

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which clarifies the accounting implementation costs in cloud computing arrangements. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, and issued additional clarifications and improvements during 2018. This guidance amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and issued additional clarifications and improvements throughout 2018. This guidance will result in key changes to lease accounting and will aim to bring leases onto balance sheets to give investors, lenders, and other financial statement users a more comprehensive view of a company's long-term financial obligations as well as the assets it owns versus leases. The pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet. The new leasing standard will be effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years. The new guidance requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with certain practical expedients available. The Company will adopt the requirements of the new lease standard effective January 2, 2019, the first day of fiscal year 2019, and will apply a modified retrospective adoption method using the optional transition method to apply the standard as of the effective date and therefore will not apply the standard to the comparative periods presented in the Company's financial statements. The Company has elected the package of practical expedients which allows an entity to not reassess whether any existing or expired contracts contain leases, nor reassess lease classifications for existing or expired leases, and an entity does not need to reassess initial direct costs for any existing leases. The Company will not elect the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of right-of-use assets. Further, the Company will elect a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases with terms of 12 months or less. The Company is finalizing the impact of the standard to its accounting policies, processes, disclosures, and internal control over financial reporting and has implemented necessary upgrades to its existing lease system.

The adoption of ASU 2016-02 will have a significant impact on our consolidated balance sheet as the Company will record material right-of-use assets and operating lease liabilities upon adoption and will derecognize all landlord funded assets, deemed landlord financing liabilities and deferred rent liabilities upon transition. The Company expects to record operating lease liabilities of approximately $220 million to $240 million based on the present value of the remaining minimum rental payments using discount rates as of the effective date. In addition, the Company expects to record corresponding right-of-use assets of approximately $210 million to $230 million, based upon the operating lease liabilities adjusted for prepaid and deferred rent, unamortized favorable and unfavorable lease balances, liabilities associated with lease termination costs and impairment of right-of-use assets recognized in retained earnings as of January 2, 2019. At the beginning of the period of adoption, the Company will record the cumulative effect of adoption to retained earnings. Following adoption in fiscal 2019, leases historically treated as deemed landlord financing liabilities will be treated as operating leases resulting in an increase in occupancy and other expense and a decrease to depreciation expense and interest expense. The Company anticipates substantial new disclosure requirements under Topic 842. The Company is continuing its evaluation, which may identify additional impacts this standard will have on its consolidated financial statements and related disclosures.

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 01, 2019

Accounting Policies [Abstract]

Disclosure of Long Lived Assets Held-for-sale

Assets held for sale consisted of the following at each fiscal year-end (in thousands):



	January 1, 2019		January 2, 2018
Assets held for sale and leaseback	$	12,771	$	—
Other property and equipment held for sale	2,023		—
Assets held for sale	$	14,794	$	—

Schedule of Property and Equipment Estimated Useful Lives

Estimated useful lives for property and equipment are as follows:



Buildings		20–35 years
Leasehold improvements		Shorter of useful life (typically 20 years) or lease term
Buildings under capital leases		Shorter of useful life (typically 20 years) or lease term
Restaurant and other equipment		3–15 years

Property and equipment, net at January 1, 2019 and January 2, 2018 consisted of the following, excluding amounts related to properties classified as held for sale (in thousands):



	January 1, 2019			January 2, 2018
Land	$	1,929		$	9,800
Buildings	4,335			2,325
Restaurant and other equipment	87,767			74,075
Leasehold improvements	121,409			100,192
Buildings under capital leases	3,390			4,625
Restaurant property leased to others	991			3,090
Construction-in-progress	10,697			11,905
	230,518			206,012
Less: Accumulated depreciation	(69,089		)	(49,888		)
Property and Equipment, Net	$	161,429		$	156,124

Estimated Future Amortization for Lease Liabilities

The estimated future amortization for unfavorable lease liabilities for the next five fiscal years is as follows (in thousands):



	Unfavorable Lease Liabilities
2019	$	1,996
2020	1,854
2021	1,571
2022	1,422
2023	1,133

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

Deferred franchise fees are recognized straight-line over the term of the underlying agreement and the amount expected to be recognized in franchise revenue for amounts in deferred franchise fees as of January 1, 2019 is as follows (in thousands):



FY 2019	$	87
FY 2020	83
FY 2021	81
FY 2022	80
FY 2023	77
Thereafter	962
Total Deferred Franchise Fees	$	1,370

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following tables reflect the impact of the adoption of Topic 606 on the Company's consolidated balance sheet as of January 1, 2019 and on the Company's consolidated statements of comprehensive income and cash flows from operating activities for the fifty-two weeks ended January 1, 2019 and the amounts as if Topic 605 was in effect ("Amounts Under Previous Standards") (in thousands):



	January 1, 2019
	As Reported		Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	19,877	$	—		$	19,877
Other accrued liabilities	34,785		—			34,785
Current portion of capital lease obligations and deemed landlord financing liabilities	1,033		—			1,033
Total current liabilities	55,695		—			55,695
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net	178,664		—			178,664
Deferred income taxes	69,471		370			69,841
Other non-current liabilities	32,852		(1,369		)	31,483
Total liabilities	336,682		(999		)	335,683
Shareholders’ equity:
Preferred stock	—		—			—
Common stock	4		—			4
Additional paid-in capital	336,941		—			336,941
Accumulated other comprehensive income	180		—			180
Retained earnings	85,149		999			86,148
Total shareholders’ equity	422,274		999			423,273
Total liabilities and shareholders’ equity	$	758,956	$	—		$	758,956



	52 Weeks Ended January 1, 2019
	As Reported			Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Revenue:
Company restaurant sales	$	471,193		$	—		$	471,193
Franchise revenue	17,569			(370		)	17,199
Franchise advertising contributions	13,300			(13,300		)	—
Franchise sublease and other income	3,428			(312		)	3,116
Total revenue	505,490			(13,982		)	491,508
Operating expenses:
Restaurant operating expenses:
Food and paper costs	128,873			—			128,873
Labor and related expenses	151,954			—			151,954
Occupancy and other operating expenses	97,745			—			97,745
General and administrative	43,773			(770		)	43,003
Franchise advertising expenses	13,300			(13,300		)	—
Depreciation and amortization	25,794			—			25,794
Occupancy and other - franchise subleases and other	3,167			(312		)	2,855
Pre-opening costs	1,584			—			1,584
Impairment of long-lived assets	3,861			—			3,861
Restaurant closure charges, net	394			—			394
Loss on disposal of assets, net	1,012			—			1,012
Total operating expenses	471,457			(14,382		)	457,075
Income from operations	34,033			400			34,433
Other expense, net
Interest expense	9,075			—			9,075
Other income	(660		)	—			(660		)
Total other expense, net	8,415			—			8,415
Income from operations before provision for income taxes	25,618			400			26,018
Provision for income taxes	6,659			108			6,767
Net income	18,959			292			19,251
Other comprehensive income:
Change in fair value of interest rate cap, net of tax	122			—			122
Reclassification of interest rate cap amortization included in net income	44			—			44
Total other comprehensive income	166			—			166
Comprehensive income	$	19,125		$	292		$	19,417
Earnings per share:
Basic	$	0.50		$	0.01		$	0.51
Diluted	$	0.49		$	0.01		$	0.50



	52 Weeks Ended January 1, 2019
	As Reported			Adjustments for Prior Revenue Recognition Standards			Amounts Under Previous Standards
Operating activities
Net income	$	18,959		$	292		$	19,251
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts	45			—			45
Depreciation and amortization	25,794			—			25,794
Amortization of favorable and unfavorable lease assets and liabilities, net	(767		)	—			(767		)
Amortization of deferred financing costs and debt discount	445			—			445
Stock-based compensation	6,079			—			6,079
Impairment of long-lived assets	3,861			—			3,861
Deferred income taxes	1,097			108			1,205
Loss on disposal of assets, net	1,012			—			1,012
Restaurant closure charges	449			—			449
Other income	(523		)	—			(523		)
Changes in operating assets and liabilities:
Accounts and other receivables, net	616			—			616
Inventories	(220		)	—			(220		)
Prepaid expenses and other current assets	1,949			—			1,949
Other assets	(125		)	—			(125		)
Accounts payable	2			—			2
Other accrued liabilities	(488		)	—			(488		)
Other non-current liabilities	3,647			(400		)	3,247
Net cash provided by operating activities	$	61,832		$	—		$	61,832

Restaurant Closure and Other Related Charges (Tables)

12 Months Ended

Jan. 01, 2019

Restructuring and Related Activities [Abstract]

Restaurant Closure Liability Activity

The following table presents other restaurant closure liability activity for each period related to current year and prior year restaurant closures and sublease income shortfalls (in thousands):



	52 Weeks Ended January 1, 2019			52 Weeks Ended January 2, 2018			53 Weeks Ended January 3, 2017
Closure liability at beginning of period	$	1,213		$	1,365		$	1,023
Adjustments to estimate based on current activity	(513		)	22			439
Charges related to current period activity	—			46			—
Charges for accretion in current period	54			97			80
Cash payments	(435		)	(317		)	(177		)
Closure liability at end of period	$	319		$	1,213		$	1,365

Closure Liability Activity for 12 Closed Restaurants

A summary of the restaurant closure liability activity for these 12 closed restaurants consisted of the following (in thousands):



	Contract termination costs			Other associated costs			Total
Balance at December 29, 2015	$	3,637		$	163		$	3,800
Charges for accretion and other in current period	133			—			133
Cash payments	(1,444		)	(163		)	(1,607		)
Reclassification of lease related liabilities	(553		)	—			(553		)
Balance at January 3, 2017	1,773			—			1,773
Charges for accretion in current period	70			—			70
Cash payments	(376		)	—			(376		)
Adjustment to estimates based on current activity	144			—			144
Balance at January 2, 2018	1,611			—			1,611
Charges for accretion in current period	61			—			61
Cash payments	(327		)	—			(327		)
Adjustment to estimates based on current activity	747			—			747
Balance at January 1, 2019	$	2,092		$	—		$	2,092

Property and Equipment, Net (Tables)

12 Months Ended

Jan. 01, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Estimated useful lives for property and equipment are as follows:



Buildings		20–35 years
Leasehold improvements		Shorter of useful life (typically 20 years) or lease term
Buildings under capital leases		Shorter of useful life (typically 20 years) or lease term
Restaurant and other equipment		3–15 years

Property and equipment, net at January 1, 2019 and January 2, 2018 consisted of the following, excluding amounts related to properties classified as held for sale (in thousands):



	January 1, 2019			January 2, 2018
Land	$	1,929		$	9,800
Buildings	4,335			2,325
Restaurant and other equipment	87,767			74,075
Leasehold improvements	121,409			100,192
Buildings under capital leases	3,390			4,625
Restaurant property leased to others	991			3,090
Construction-in-progress	10,697			11,905
	230,518			206,012
Less: Accumulated depreciation	(69,089		)	(49,888		)
Property and Equipment, Net	$	161,429		$	156,124

Summary of Refranchsing and Franchise Acquisitions (Tables)

12 Months Ended

Jan. 01, 2019

Franchise Acquisitions [Abstract]

Summary of refranchising

The following table provides detail of the related gain recognized during the fifty-two weeks ended January 2, 2018 (dollars in thousands):



	52 Weeks Ended January 2, 2018
Company-operated restaurants sold to franchisees	5

Proceeds from the sale of company-operated restaurants	$	2,192
Net assets sold (primarily furniture, fixtures and equipment)	(1,261		)
Goodwill related to the company-operated restaurants sold to franchisees	(247		)
Net unfavorable lease liabilities ^(a)	(548		)
Other costs	(5		)
Gain on sale of company-operated restaurants ^(b)	$	131

^(a) The Company recorded favorable lease assets of $0.1 million and unfavorable lease liabilities of $0.6 million as a result of subleasing land, buildings and leasehold improvements to franchisees, in connection with the sale of company-operated restaurants.

^(b) Included in loss on disposal of assets, net on the consolidated statements of comprehensive income.

Business Combination

The following table provides detail of the combined acquisitions for both the fifty-two weeks ended January 1, 2019, fifty-two weeks ended January 2, 2018 and the fifty-three weeks ended January 3, 2017 (dollars in thousands):



	52 Weeks Ended January 1, 2019		52 Weeks Ended January 2, 2018			53 Weeks Ended January 3, 2017
Franchise-operated restaurants acquired from franchisees	3		1			6

Goodwill	$	893	$	860		$	969
Property and equipment	798		360			821
Land and building	—		—			2,127
Reacquired franchise rights	150		—			—
Unfavorable lease liability	—		(85		)	—
Liabilities assumed	—		(7		)	(26		)
Total Consideration	$	1,841	$	1,128		$	3,891

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Jan. 01, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill for the fifty-two weeks ended January 1, 2019 are as follows (in thousands):



	Goodwill
Balance as of January 2, 2018	$	320,638
Acquisition of franchise-operated restaurants	893
Balance as of January 1, 2019	$	321,531

Schedule of Other Intangible Assets

The Company’s other intangible assets at January 1, 2019 and January 2, 2018 consisted of the following (in thousands):



	January 1, 2019							January 2, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Favorable lease assets	$	13,118	$	(5,542	)	$	7,576	$	13,744	$	(4,442	)	$	9,302
Franchise rights	15,032		(4,411		)	10,621		15,284		(3,282		)	12,002
Reacquired franchise rights	417		(107		)	310		243		(49		)	194
Total amortized other intangible assets	$	28,567	$	(10,060	)	$	18,507	$	29,271	$	(7,773	)	$	21,498

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization for favorable lease assets and franchise rights for the next five fiscal years is as follows (in thousands):



	Favorable Lease Assets		Franchise Rights
2019	$	1,443	$	1,245
2020	1,171		1,176
2021	1,005		1,064
2022	922		965
2023	746		880

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities (Tables)

12 Months Ended

Jan. 01, 2019

Debt Disclosure [Abstract]

Schedule of Debt

The Company’s debt, obligations under capital leases and deemed landlord financing liabilities at January 1, 2019 and January 2, 2018 consisted of the following (in thousands):



	January 1, 2019		January 2, 2018
2015 Senior Credit Facility, net of debt discount of $459 and $747 and deferred financing costs of $155 and $252 at January 1, 2019 and January 2, 2018, respectively	$	158,386	$	152,001
Total outstanding indebtedness	158,386		152,001
Obligations under capital leases and deemed landlord financing liabilities	21,311		20,053
Total debt, net	179,697		172,054
Less: amounts due within one year	1,033		1,415
Total amounts due after one year, net	$	178,664	$	170,639

Schedule of Maturities of Debt

Based on debt agreements and leases in place as of January 1, 2019, future maturities of debt, obligations under capital leases and deemed landlord financing liabilities were as follows (in thousands):



2019	$	1,033
2020	159,881
2021	832
2022	777
2023	927
Thereafter	16,861
Total maturities	180,311
Less: debt discount and deferred financing costs	(614		)
Total debt, net	$	179,697

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Fair Value Measurements (Tables)

12 Months Ended

Jan. 01, 2019

Fair Value Disclosures [Abstract]

Summary of Estimated Fair Values of Long-term Debt Instruments, Warrant Liability and Interest Rate Cap Agreement

The following is a summary of the estimated fair values for the long-term debt instruments (in thousands):



	January 1, 2019				January 2, 2018
	Estimated Fair Value		Book Value		Estimated Fair Value		Book Value
2015 Senior Credit Facility	$	158,386	$	158,386	$	152,001	$	152,001

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s assets and liabilities measured at fair value on a recurring basis as of January 1, 2019 and January 2, 2018 were as follows (in thousands):



	January 1, 2019		Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
2016 Interest Rate Cap Agreement	$	499	$	—	$	499	$	—
Total assets measured at fair value	$	499	$	—	$	499	$	—

	January 2, 2018		Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
2016 Interest Rate Cap Agreement	$	332	$	—	$	332	$	—
Total assets measured at fair value	$	332	$	—	$	332	$	—

Other Accrued Liabilities and Other Non-current Liabilities (Tables)

12 Months Ended

Jan. 01, 2019

Other Liabilities Disclosure [Abstract]

Summary of Other Accrued Liabilities

A summary of other accrued liabilities follows (in thousands):



	January 1, 2019		January 2, 2018
Employee compensation and related items	$	12,888	$	12,945
Accrued insurance	5,664		7,232
Accrued sales tax	3,952		3,987
Accrued property and equipment purchases	3,196		3,757
Accrued advertising	1,578		728
Accrued real property tax	1,420		1,331
Restaurant closure liability	623		794
Other	5,464		4,483
	$	34,785	$	35,257

Summary of Other Non-current Liabilities

A summary of other non-current liabilities follows (in thousands):



	January 1, 2019		January 2, 2018
Unfavorable lease liabilities	$	11,975	$	14,469
Insurance reserves	8,794		5,965
Deferred rent liability	4,594		2,972
Deferred development and initial franchise fees	2,742		1,335
Restaurant closure liabilities	1,788		2,030
Deferred gift card income	1,290		1,234
Unearned trade discount, non-current	739		1,149
Other	930		2,277
	$	32,852	$	31,431

Stock-Based Compensation (Tables)

12 Months Ended

Jan. 01, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Nonvested Restricted Stock Shares Activity

A summary of outstanding and unvested restricted stock activity as of January 1, 2019 and changes during the period from January 2, 2018 through January 1, 2019 are as follows:



	Shares		Weighted-Average Grant Date Fair Value
Nonvested at January 2, 2018	1,088,910		$	11.92
Granted	594,619		13.88
Vested	(425,873	)	11.85
Forfeited	(23,125	)	13.09
Nonvested at January 1, 2019	1,234,531		$	12.87

Summary of Stock Options Activity

A summary of stock option activity as of January 1, 2019 and changes during the period from January 2, 2018 through January 1, 2019 are as follows:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (in thousands)
Options outstanding at January 2, 2018	417,000		$	11.04	5.5	$	641
Granted	106,000		14.04
Exercised	(21,750	)	10.22
Forfeited / Expired	(48,000	)	11.43
Options outstanding at January 1, 2019	453,250		$	11.74	5.0	$	77
Options exercisable at January 1, 2019	187,996		$	10.57	4.3	$	38
Options exercisable and expected to vest at January 1, 2019	425,954		$	11.65	4.9	$	74

Assumptions Used in Option-pricing Valuation

The following table reflects the weighted-average assumptions used in the Black-Scholes option-pricing model to value the stock options granted in the fifty-two weeks ended January 1, 2019, the fifty-two weeks ended January 2, 2018 and the fifty-three weeks ended January 3, 2017:



	52 Weeks Ended January 1, 2019			52 Weeks Ended January 2, 2018			53 Weeks Ended January 3, 2017
Expected volatility	36.29		%	36.09		%	37.64		%
Risk-free rate of return	2.71		%	1.86		%	1.12		%
Expected life (in years)	4.74			4.75			5.50
Dividend yield	—			—			—
Fair value per share at date of grant	$	4.92		$	4.63		$	3.31

Earnings per Share (Tables)

12 Months Ended

Jan. 01, 2019

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income (Loss) Per Share Data

Below are basic and diluted net income per share for the periods indicated (amounts in thousands except share and per share data):



	52 Weeks Ended		52 Weeks Ended		53 Weeks Ended
	January 1, 2019		January 2, 2018		January 3, 2017
Numerator:
Net income	$	18,959	$	49,871	$	20,913
Denominator:
Weighted-average shares outstanding - basic	38,106,057		38,689,508		38,725,541
Dilutive effect of restricted shares	256,217		417,371		263,003
Dilutive effect of stock options	17,611		28,931		—
Dilutive effect of warrants	304,074		814,097		286,105
Weighted-average shares outstanding - diluted	38,683,959		39,949,907		39,274,649
Net income per share - basic	$	0.50	$	1.29	$	0.54
Net income per share - diluted	$	0.49	$	1.25	$	0.53
Antidilutive options, unvested restricted stock awards, and warrants excluded from the computations	686,278		69,722		8,343,842

Income Taxes (Tables)

12 Months Ended

Jan. 01, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The component of the provision for income taxes are as follows (in thousands):



	52 Weeks Ended		52 Weeks Ended			53 Weeks Ended
	January 1, 2019		January 2, 2018			January 3, 2017
Current:
Federal	$	3,762	$	5,884		$	4,204
State	1,800		886			270
	5,562		6,770			4,474
Deferred:
Federal	698		(24,636		)	7,145
State	399		2,042			3,710
	1,097		(22,594		)	10,855
Income tax provision (benefit)	$	6,659	$	(15,824	)	$	15,329

Schedule of Effective Income Tax Rate Reconciliation

The difference between the effective rates and the statutory federal income tax rate is composed of the following items (dollars in thousands):



	52 Weeks Ended					52 Weeks Ended					53 Weeks Ended
	January 1, 2019					January 2, 2018					January 3, 2017
Federal income taxes	$	5,380		21.0	%	$	11,916		35.0	%	$	12,685		35.0	%
State and local income taxes, net of federal tax benefit	1,639			6.4	%	1,688			5.0	%	1,882			5.2	%
Targeted job credits	(727		)	(2.8	)%	(420		)	(1.2	)%	(448		)	(1.2	)%
Investment in subsidiary	—			—	%	—			—	%	570			1.6	%
Tax reform	(291		)	(1.1	)%	(29,111		)	(85.5	)%	—			—	%
Transaction costs	—			—	%	—			—	%	227			0.6	%
Executive compensation disallowed	362			1.4	%	81			0.2	%	104			0.3	%
Permanent tax differences and other	296			1.1	%	22			—	%	309			0.8	%
Income tax provision (benefit)	$	6,659		26.0	%	$	(15,824	)	(46.5	)%	$	15,329		42.3	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities are as follows (in thousands):



	January 1, 2019			January 2, 2018
Deferred tax assets:
Deferred rent	$	1,173		$	741
Accrued insurance	3,685			3,332
Reserve for restructuring and closed restaurants	652			763
Net operating loss carryforwards and tax credits	122			485
Deferred income	1,196			1,069
Stock-based compensation	1,049			767
Accrued compensation	532			472
Other, net	494			355
Deferred tax assets	8,903			7,984
Less valuation allowance	—			—
Net deferred tax assets	8,903			7,984
Deferred tax liabilities:
Property, equipment and intangibles	(69,357		)	(67,696		)
Investment in subsidiary	(7,448		)	(7,420		)
Prepaid expenses	(1,569		)	(1,442		)
Deferred tax liabilities	(78,374		)	(76,558		)
Net deferred tax liabilities	$	(69,471	)	$	(68,574	)

Leases (Tables)

12 Months Ended

Jan. 01, 2019

Leases [Abstract]

Schedule of Rent Expense

Franchise sublease income which includes minimum rent, percentage rent, real estate taxes and common area maintenance are classified separately under franchise sublease income on the consolidated statements of comprehensive income. Franchise sublease expenses which include minimum rent, percentage rent, real estate taxes and common area maintenance are classified separately under occupancy and other – franchise subleases on the consolidated statements of comprehensive income. Total franchise sublease income and franchise sublease expense for the Company comprise the following (in thousands):



	52 Weeks Ended			52 Weeks Ended			53 Weeks Ended
	January 1, 2019			January 2, 2018			January 3, 2017
Franchise sublease income	$	(3,115	)	$	(2,844	)	$	(2,343	)
Franchise sublease expense	2,855			2,608			2,207

Sublease rent income includes contingent rentals based on sales totaling $0.1 million during each of the fifty-two weeks ended January 1, 2019

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum rental commitments and sublease minimum rental receipts as of January 1, 2019, under capital and operating leases having an initial non-cancelable term of one year or more are shown in the following table (in thousands):



	Rental Payments					Rental Receipts
	Capital Lease and Deemed Landlord Financing Liabilities			Operating Leases		Operating Subleases			Net Lease Commitments
2019	$	3,561		$	33,951	$	(2,564	)	$	34,948
2020	3,317			32,071		(2,403		)	32,985
2021	3,186			30,794		(2,409		)	31,571
2022	3,056			29,362		(2,392		)	30,026
2023	3,123			26,414		(2,274		)	27,263
Thereafter	34,071			153,675		(16,844		)	170,902
Total minimum lease payments	$	50,314		$	306,267	$	(28,886	)	$	327,695
Imputed interest	(29,003		)
Present value of payments	$	21,311

Schedule of Future Minimum Lease Payments for Capital Leases

Minimum rental commitments and sublease minimum rental receipts as of January 1, 2019, under capital and operating leases having an initial non-cancelable term of one year or more are shown in the following table (in thousands):



	Rental Payments					Rental Receipts
	Capital Lease and Deemed Landlord Financing Liabilities			Operating Leases		Operating Subleases			Net Lease Commitments
2019	$	3,561		$	33,951	$	(2,564	)	$	34,948
2020	3,317			32,071		(2,403		)	32,985
2021	3,186			30,794		(2,409		)	31,571
2022	3,056			29,362		(2,392		)	30,026
2023	3,123			26,414		(2,274		)	27,263
Thereafter	34,071			153,675		(16,844		)	170,902
Total minimum lease payments	$	50,314		$	306,267	$	(28,886	)	$	327,695
Imputed interest	(29,003		)
Present value of payments	$	21,311

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Jan. 01, 2019

Quarterly Financial Data [Abstract]

Schedule of Quarterly Financial Information

Summarized unaudited quarterly financial data (amounts in thousands except per share data):



	16 Weeks Ended		12 Weeks Ended
Fiscal Year 2018	January 1, 2019		September 11, 2018		June 19, 2018		March 27, 2018
Total revenue	$	157,293	$	117,830	$	117,813	$	112,554
Income from operations	10,696		9,195		7,804		6,338
Net income	5,646		5,874		4,210		3,229
Earnings per share:
Basic	$	0.15	$	0.15	$	0.11	$	0.08
Diluted	$	0.15	$	0.15	$	0.11	$	0.08



	16 Weeks Ended		12 Weeks Ended
Fiscal Year 2017	January 2, 2018		September 12, 2017		June 20, 2017		March 28, 2017
Total revenue	$	146,542	$	110,988	$	108,581	$	105,345
Income from operations	12,825		9,533		10,276		8,613
Net income	35,202		5,101		5,330		4,238
Earnings per share:
Basic	$	0.91	$	0.13	$	0.14	$	0.11
Diluted	$	0.89	$	0.13	$	0.13	$	0.10

Description of Business - Additional Information (Detail)	Mar. 12, 2015	Jan. 01, 2019 state restaurant	Jan. 02, 2018 restaurant
Franchisor Disclosure [Line Items]
Number of states in which entity operates \| state		14
Stock purchase agreement date	Mar. 12, 2015
Entity operated units
Franchisor Disclosure [Line Items]
Number of restaurants		322
Franchised units
Franchisor Disclosure [Line Items]
Number of restaurants		258
Franchised units \| GUAM
Franchisor Disclosure [Line Items]
Number of restaurants		1	1

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)		4 Months Ended	6 Months Ended		12 Months Ended
	Mar. 29, 2017 $ / shares shares	Jan. 03, 2017 location $ / shares	Dec. 29, 2015 USD ($)	Jun. 30, 2015 USD ($)	Jan. 01, 2019 USD ($) Segment renewal restaurant vendor $ / shares shares	Jan. 02, 2018 USD ($) $ / shares shares	Jan. 03, 2017 USD ($) $ / shares shares
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Franchise agreement, term					20 years
Document Period End Date					Jan. 01, 2019
Share Price \| $ / shares		$ 3.31			$ 4.92	$ 4.63	$ 3.31
Number of vendors \| vendor					1
Interest capitalized in connection with construction							$ 100,000
Lease agreement term (in years)					35 years
Deductible per occurrence for general liability					$ 350,000
Percentage of net sales for advertising					4.00%
Pre-opening costs						$ 1,591,000
Number of operating segments \| Segment					1
Number of reportable segments \| Segment					1
Entity operated units
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants \| restaurant					322
Franchised units
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants \| restaurant					258
CALIFORNIA
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants \| restaurant					376
CALIFORNIA \| Entity operated units
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants \| restaurant					255
CALIFORNIA \| Franchised units
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants \| restaurant					121
Minimum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of lease renewal options \| renewal					1
Lease renewal term (in years)					5 years
Insurance coverage deductibles range for claims					$ 250,000
Maximum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of lease renewal options \| renewal					4
Lease renewal term (in years)					10 years
Insurance coverage deductibles range for claims					$ 500,000
Capitalized software
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets (in years)					3 years
Buildings under capital leases
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets (in years)					20 years
Restaurant and other equipment \| Minimum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets (in years)					3 years
Restaurant and other equipment \| Maximum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of assets (in years)					15 years
Successor
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Impairment of long-lived assets					$ 3,861,000	0	0
Deferred income taxes					69,471,000	68,574,000
DeferredGiftCardIncomeTotal					2,800,000	2,500,000
Deferred gift card income					1,290,000	1,234,000
Allowance for doubtful accounts					100,000	100,000
Noncurrent portion of advanced reimbursements					700,000	1,100,000
Current portion of advanced reimbursements					400,000	434,000
Depreciation and amortization expense			$ 20,600,000		23,100,000	21,000,000
Property and equipment depreciation expense					69,089,000	49,888,000
Carrying value of capitalized software costs					2,300,000	2,100,000
Capitalized software costs					1,500,000	1,000,000
Capitalized software amortization expense			900,000	$ 400,000	1,200,000	1,000,000
Interest capitalized in connection with construction					123,000	131,000
Carrying value of unfavorable lease liabilities					19,200,000	20,600,000
Lease accumulated amortization					7,200,000	6,100,000
Number of underperforming locations \| location		12
Amortization credits for unfavorable lease liabilities			2,600,000		$ 2,500,000	2,700,000
Weighted-average amortization period (in years)					7 years 3 months 18 days
Advertising expenses					$ 19,000,000	18,100,000	17,200,000
Pre-opening costs			700,000		1,584,000	1,591,000	731,000
Partnership monthly rental income				1,400,000
Proceeds from credit facility					31,000,000	31,500,000	24,000,000
Gift Card Liability, Current					1,500,000	1,300,000
Adjustment for adoption of new revenue recognition standard, net of tax						(707,000)
Successor \| Entity operated units
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Accrued advertising					900,000	400,000
Successor \| Franchised units
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Accrued advertising					700,000	300,000
Successor \| Buildings under capital leases
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Depreciation and amortization expense			$ 1,400,000		900,000	1,200,000
Property and equipment depreciation expense					2,200,000	2,500,000
Successor \| Construction-in-progress
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Capitalized construction costs				$ 1,300,000	1,600,000
Adjustments for Prior Revenue Recognition Standards \| Successor
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Advertising expenses					13,300,000
Franchise revenue
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Franchise revenue from amortization of deferred franchise fees as a result of the adoption of Topic 606					100,000
Gain on termination of development agreement					100,000
Deferred franchise fees					1,000,000
Franchise revenue \| Successor
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Revenue					(17,569,000)	(16,464,000)	(15,676,000)
Franchise advertising contributions \| Successor
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Revenue					$ (13,300,000)	$ 0	$ 0
Warrants \| Successor
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Shares/warrants repurchased (in shares/warrants) \| shares	400,000				47,511	424,439	699,007
Average cost per share/warrant (in dollars per share/warrant) \| $ / shares	$ 3.75				$ 2.55	$ 3.72	$ 2.54
Discount on repurchase	5.00%
Share Price \| $ / shares	$ 3.95
Retained Earnings (Accumulated Deficit) \| Successor
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Adjustment for adoption of new revenue recognition standard, net of tax						$ (707,000)
Retained Earnings (Accumulated Deficit) \| Franchise revenue \| Successor
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Adjustment for adoption of new revenue recognition standard, net of tax						$ (700,000)
Accounting Standards Update 2014-09 \| Adjustments for Prior Revenue Recognition Standards \| Successor
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Impairment of long-lived assets					$ 0
Deferred income taxes					370,000
Pre-opening costs					0
Accounting Standards Update 2014-09 \| Franchise revenue \| Adjustments for Prior Revenue Recognition Standards \| Successor
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Deferred income taxes					300,000
Revenue					370,000
Accounting Standards Update 2014-09 \| Franchise advertising contributions \| Adjustments for Prior Revenue Recognition Standards \| Successor
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Revenue					$ 13,300,000

Basis of Presentation and Summary of Significant Accounting Policies - Assets Held-for-sale (Details) - Successor - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 02, 2018
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale	$ 14,794	$ 0
Assets held for sale and leaseback
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale	12,771	0
Other property and equipment held for sale
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale	$ 2,023	$ 0

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 29, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Property, Plant and Equipment [Line Items]
Pre-opening costs			$ 1,591,000
Successor
Property, Plant and Equipment [Line Items]
Pre-opening costs	$ 700,000	$ 1,584,000	$ 1,591,000	$ 731,000
Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets (in years)		20 years
Estimated useful lives of assets		Shorter of useful life (typically 20 years) or lease term
Buildings under capital leases
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets (in years)		20 years
Estimated useful lives of assets		Shorter of useful life (typically 20 years) or lease term
Minimum \| Buildings
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets (in years)		20 years
Minimum \| Restaurant and other equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets (in years)		3 years
Maximum \| Buildings
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets (in years)		35 years
Maximum \| Restaurant and other equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets (in years)		15 years

Basis of Presentation and Summary of Significant Accounting Policies - Estimated Future Amortization for Lease Liabilities (Details) $ in Thousands	Jan. 01, 2019 USD ($)
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
2019	$ 1,996
2020	1,854
2021	1,571
2022	1,422
2023	$ 1,133

Basis of Presentation and Summary of Significant Accounting Policies - Remaining Performance Obligation (Details) $ in Thousands	Jan. 01, 2019 USD ($)
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 1,370
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-02
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 87
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-02
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 83
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-02
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 81
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 80
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-02
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 77
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-02
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 962
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period

Basis of Presentation and Summary of Significant Accounting Policies - Impact of Adoption of Topic 606 - Consolidated Balance Sheet (Details) - Successor - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017	Dec. 29, 2015
Current liabilities:
Accounts payable	$ 19,877	$ 18,759
Other accrued liabilities	34,785	35,257
Current portion of capital lease obligations and deemed landlord financing liabilities	1,033	1,415
Total current liabilities	55,695	55,431
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net	178,664	170,639
Deferred income taxes	69,471	68,574
Other non-current liabilities	32,852	31,431
Total liabilities	336,682	326,075
Shareholders’ equity:
Preferred stock	0	0
Common stock	4	4
Additional paid-in capital	336,941	349,334
Accumulated other comprehensive income	180	14
Retained earnings	85,149	66,897
Total shareholders’ equity	422,274	416,249	$ 377,333	$ 368,377
Total liabilities and shareholders’ equity	758,956	$ 742,324
Adjustments for Prior Revenue Recognition Standards \| Accounting Standards Update 2014-09
Current liabilities:
Accounts payable	0
Other accrued liabilities	0
Current portion of capital lease obligations and deemed landlord financing liabilities	0
Total current liabilities	0
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net	0
Deferred income taxes	370
Other non-current liabilities	(1,369)
Total liabilities	(999)
Shareholders’ equity:
Preferred stock	0
Common stock	0
Additional paid-in capital	0
Accumulated other comprehensive income	0
Retained earnings	999
Total shareholders’ equity	999
Total liabilities and shareholders’ equity	0
Amounts Under Previous Standards
Current liabilities:
Accounts payable	19,877
Other accrued liabilities	34,785
Current portion of capital lease obligations and deemed landlord financing liabilities	1,033
Total current liabilities	55,695
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net	178,664
Deferred income taxes	69,841
Other non-current liabilities	31,483
Total liabilities	335,683
Shareholders’ equity:
Preferred stock	0
Common stock	4
Additional paid-in capital	336,941
Accumulated other comprehensive income	180
Retained earnings	86,148
Total shareholders’ equity	423,273
Total liabilities and shareholders’ equity	$ 758,956

Basis of Presentation and Summary of Significant Accounting Policies - Impact of Adoption of Topic 606 - Consolidated Statements of Comprehensive Income (Details) - USD ($)	3 Months Ended						4 Months Ended		6 Months Ended	12 Months Ended
	Sep. 11, 2018	Jun. 19, 2018	Mar. 27, 2018	Sep. 12, 2017	Jun. 20, 2017	Mar. 28, 2017	Jan. 01, 2019	Jan. 02, 2018	Dec. 29, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Restaurant operating expenses:
Pre-opening costs											$ 1,591,000
Successor
Revenue:
Total revenue	$ 117,830,000	$ 117,813,000	$ 112,554,000	$ 110,988,000	$ 108,581,000	$ 105,345,000	$ 157,293,000	$ 146,542,000		$ 505,490,000	471,456,000	$ 452,083,000
Restaurant operating expenses:
Labor and related expenses										151,954,000	145,012,000	135,725,000
Occupancy and other operating expenses										97,745,000	92,825,000	88,908,000
General and administrative										43,773,000	38,154,000	37,220,000
Franchise advertising expenses										13,300,000	0	0
Depreciation and amortization										25,794,000	23,362,000	23,129,000
Occupancy and other - franchise subleases and other										3,167,000	2,608,000	2,207,000
Pre-opening costs									$ 700,000	1,584,000	1,591,000	731,000
Impairment of long-lived assets										3,861,000	0	0
Restaurant closure charges, net										394,000	191,000	435,000
Loss on disposal of assets, net										1,012,000	1,075,000	312,000
Total operating expenses										471,457,000	430,209,000	408,783,000
Income from operations	9,195,000	7,804,000	6,338,000	9,533,000	10,276,000	8,613,000	10,696,000	12,825,000		34,033,000	41,247,000	43,300,000
Other expense (income), net:
Interest expense										9,075,000	7,200,000	6,327,000
Other income										(660,000)	0	0
Total other expense, net										8,415,000	7,200,000	7,058,000
Income from operations before provision (benefit) for income taxes										25,618,000	34,047,000	36,242,000
Provision (benefit) for income taxes									15,329,000	6,659,000	(15,824,000)	15,329,000
Net income	$ 5,874,000	$ 4,210,000	$ 3,229,000	$ 5,101,000	$ 5,330,000	$ 4,238,000	$ 5,646,000	$ 35,202,000	$ 20,913,000	18,959,000	49,871,000	20,913,000
Other comprehensive income (loss):
Change in fair value of interest rate cap, net of tax										122,000	(162,000)	172,000
Reclassification of interest rate cap amortization included in net income, net of tax										44,000	4,000	0
Total other comprehensive income (loss), net										166,000	(158,000)	172,000
Comprehensive income										$ 19,125,000	$ 49,713,000	$ 21,085,000
Earnings per share:
Basic (in dollars per share)	$ 0.15	$ 0.11	$ 0.08	$ 0.13	$ 0.14	$ 0.11	$ 0.15	$ 0.91	$ 0.54	$ 0.50	$ 1.29	$ 0.54
Diluted (in dollars per share)	$ 0.15	$ 0.11	$ 0.08	$ 0.13	$ 0.13	$ 0.10	$ 0.15	$ 0.89	$ 0.53	$ 0.49	$ 1.25	$ 0.53
Successor \| Amounts Under Previous Standards
Revenue:
Total revenue										$ 491,508,000
Restaurant operating expenses:
Labor and related expenses										151,954,000
Occupancy and other operating expenses										97,745,000
General and administrative										43,003,000
Franchise advertising expenses										0
Depreciation and amortization										25,794,000
Occupancy and other - franchise subleases and other										2,855,000
Pre-opening costs										1,584,000
Impairment of long-lived assets										3,861,000
Restaurant closure charges, net										394,000
Loss on disposal of assets, net										1,012,000
Total operating expenses										457,075,000
Income from operations										34,433,000
Other expense (income), net:
Interest expense										9,075,000
Other income										(660,000)
Total other expense, net										8,415,000
Income from operations before provision (benefit) for income taxes										26,018,000
Provision (benefit) for income taxes										6,767,000
Net income										19,251,000
Other comprehensive income (loss):
Change in fair value of interest rate cap, net of tax										122,000
Reclassification of interest rate cap amortization included in net income, net of tax										44,000
Total other comprehensive income (loss), net										166,000
Comprehensive income										$ 19,417,000
Earnings per share:
Basic (in dollars per share)										$ 0.51
Diluted (in dollars per share)										$ 0.50
Successor \| Accounting Standards Update 2014-09 \| Adjustments for Prior Revenue Recognition Standards
Revenue:
Total revenue										$ (13,982,000)
Restaurant operating expenses:
Labor and related expenses										0
Occupancy and other operating expenses										0
General and administrative										(770,000)
Franchise advertising expenses										(13,300,000)
Depreciation and amortization										0
Occupancy and other - franchise subleases and other										(312,000)
Pre-opening costs										0
Impairment of long-lived assets										0
Restaurant closure charges, net										0
Loss on disposal of assets, net										0
Total operating expenses										(14,382,000)
Income from operations										400,000
Other expense (income), net:
Interest expense										0
Other income										0
Total other expense, net										0
Income from operations before provision (benefit) for income taxes										400,000
Provision (benefit) for income taxes										108,000
Net income										292,000
Other comprehensive income (loss):
Change in fair value of interest rate cap, net of tax										0
Reclassification of interest rate cap amortization included in net income, net of tax										0
Total other comprehensive income (loss), net										0
Comprehensive income										$ 292,000
Earnings per share:
Basic (in dollars per share)										$ 0.01
Diluted (in dollars per share)										$ 0.01
Successor \| Company restaurant sales
Revenue:
Revenue										$ 471,193,000	$ 452,148,000	$ 434,064,000
Successor \| Company restaurant sales \| Amounts Under Previous Standards
Revenue:
Revenue										471,193,000
Successor \| Company restaurant sales \| Accounting Standards Update 2014-09 \| Adjustments for Prior Revenue Recognition Standards
Revenue:
Revenue										0
Successor \| Franchise revenue
Revenue:
Revenue										17,569,000	16,464,000	15,676,000
Successor \| Franchise revenue \| Amounts Under Previous Standards
Revenue:
Revenue										17,199,000
Successor \| Franchise revenue \| Accounting Standards Update 2014-09 \| Adjustments for Prior Revenue Recognition Standards
Revenue:
Revenue										(370,000)
Successor \| Franchise advertising contributions
Revenue:
Revenue										13,300,000	0	0
Successor \| Franchise advertising contributions \| Amounts Under Previous Standards
Revenue:
Revenue										0
Successor \| Franchise advertising contributions \| Accounting Standards Update 2014-09 \| Adjustments for Prior Revenue Recognition Standards
Revenue:
Revenue										(13,300,000)
Successor \| Franchise sublease and other income
Revenue:
Revenue										3,428,000	2,844,000	2,343,000
Successor \| Franchise sublease and other income \| Amounts Under Previous Standards
Revenue:
Revenue										3,116,000
Successor \| Franchise sublease and other income \| Accounting Standards Update 2014-09 \| Adjustments for Prior Revenue Recognition Standards
Revenue:
Revenue										(312,000)
Successor \| Food and paper costs
Restaurant operating expenses:
Food and paper costs										128,873,000	$ 125,391,000	$ 120,116,000
Successor \| Food and paper costs \| Amounts Under Previous Standards
Restaurant operating expenses:
Food and paper costs										128,873,000
Successor \| Food and paper costs \| Accounting Standards Update 2014-09 \| Adjustments for Prior Revenue Recognition Standards
Restaurant operating expenses:
Food and paper costs										$ 0

Basis of Presentation and Summary of Significant Accounting Policies - Impact of Adoption of Topic 606 - Consolidated Statements of Cash Flows (Details) - Successor - USD ($) $ in Thousands	3 Months Ended						4 Months Ended		6 Months Ended	12 Months Ended
	Sep. 11, 2018	Jun. 19, 2018	Mar. 27, 2018	Sep. 12, 2017	Jun. 20, 2017	Mar. 28, 2017	Jan. 01, 2019	Jan. 02, 2018	Dec. 29, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Operating activities
Net income	$ 5,874	$ 4,210	$ 3,229	$ 5,101	$ 5,330	$ 4,238	$ 5,646	$ 35,202	$ 20,913	$ 18,959	$ 49,871	$ 20,913
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts										45	0	0
Depreciation and amortization										25,794	23,362	23,129
Amortization of favorable and unfavorable lease assets and liabilities, net									$ (607)	(767)	(809)	(607)
Amortization of deferred financing costs and interest rate cap										445	389	392
Stock-based compensation										6,079	4,876	4,096
Impairment of long-lived assets										3,861	0	0
Deferred income taxes										1,097	(22,594)	10,741
Loss on disposal of assets, net										1,012	1,075	312
Restaurant closure charges, net										(449)	(379)	(179)
Other Noncash Income										(523)	0	0
Changes in operating assets and liabilities:
Accounts and other receivables, net										616	313	(921)
Inventories										(220)	6	88
Prepaid expenses and other current assets										1,949	(2,580)	(659)
Other assets										(125)	(162)	(59)
Accounts payable										2	2,332	(404)
Other accrued liabilities										(488)	(1,526)	3,733
Other non-current liabilities										3,647	2,856	(3,387)
Net cash provided by operating activities										61,832	$ 57,788	$ 57,546
Amounts Under Previous Standards
Operating activities
Net income										19,251
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts										45
Depreciation and amortization										25,794
Amortization of favorable and unfavorable lease assets and liabilities, net										(767)
Amortization of deferred financing costs and interest rate cap										445
Stock-based compensation										6,079
Impairment of long-lived assets										3,861
Deferred income taxes										1,205
Loss on disposal of assets, net										1,012
Restaurant closure charges, net										(449)
Changes in operating assets and liabilities:
Accounts and other receivables, net										616
Inventories										(220)
Prepaid expenses and other current assets										1,949
Other assets										(125)
Accounts payable										2
Other accrued liabilities										(488)
Other non-current liabilities										3,247
Net cash provided by operating activities										61,832
Accounting Standards Update 2014-09 \| Adjustments for Prior Revenue Recognition Standards
Operating activities
Net income										292
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for doubtful accounts										0
Depreciation and amortization										0
Amortization of favorable and unfavorable lease assets and liabilities, net										0
Amortization of deferred financing costs and interest rate cap										0
Stock-based compensation										0
Impairment of long-lived assets										0
Deferred income taxes										108
Loss on disposal of assets, net										0
Restaurant closure charges, net										0
Other Noncash Income										0
Changes in operating assets and liabilities:
Accounts and other receivables, net										0
Inventories										0
Prepaid expenses and other current assets										0
Other assets										0
Accounts payable										0
Other accrued liabilities										0
Other non-current liabilities										(400)
Net cash provided by operating activities										$ 0

Basis of Presentation and Summary of Significant Accounting Policies - Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2019	Jan. 02, 2019	Jan. 02, 2018
Successor
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 707
Minimum \| Subsequent Event \| Scenario, Forecast \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liability		$ 220,000
Operating lease, right-of-use asset		210,000
Maximum \| Subsequent Event \| Scenario, Forecast \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liability		240,000
Operating lease, right-of-use asset		$ 230,000
Retained Earnings (Accumulated Deficit) \| Successor
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 707
Adjustments for Prior Revenue Recognition Standards \| Product and Service, Other \| Successor \| Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 700

Business Combination - Additional Information (Detail) - USD ($) $ in Thousands		12 Months Ended
	Aug. 08, 2016	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Business Acquisition [Line Items]
Issuance of common stock (in shares)	1,533,542
Business combination, goodwill		$ 321,531	$ 320,638
Successor
Business Acquisition [Line Items]
Tax withholdings on restricted stock vesting		2,378	1,923	$ 916
Issuance of common stock, value				0
Transaction-related costs		0	0	$ 731
Business combination, goodwill		$ 321,531	$ 320,638

Business Combination - Summary of Merger Consideration Paid to DTH Stockholders (except for the Levy Newco Parties) (Detail) - $ / shares	Aug. 08, 2016	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Business Acquisition [Line Items]
Issuance of common stock (in shares)	1,533,542
Value per share as of June 30, 2015		$ 4.92	$ 4.63	$ 3.31

Business Combination - Schedule of Preliminary Allocation of Purchase Price to Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed Based on Fair Value (Detail) - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 02, 2018
Business Acquisition [Line Items]
Goodwill	$ 321,531	$ 320,638

Business Combination - Schedule of Preliminary Values Allocated to Intangible Assets and Useful Lives (Detail)	12 Months Ended
	Jan. 01, 2019
Franchise rights
Business Acquisition [Line Items]
Useful life of finite lived intangible assets (in years)	40 years

Restaurant Closure and Other Related Charges - Additional Information (Details) $ in Thousands	4 Months Ended	6 Months Ended		12 Months Ended
	Jan. 03, 2017 USD ($) location	Dec. 29, 2015 USD ($)	Jun. 30, 2015 USD ($)	Jan. 01, 2019 USD ($) location restaurant	Jan. 02, 2018 USD ($) location	Jan. 03, 2017 USD ($) location
Restructuring Cost and Reserve [Line Items]
Number of restaurants, changes in estimates for lease termination liability \| restaurant				5
Sublease income, leases deemed landlord financing				$ 200
Successor
Restructuring Cost and Reserve [Line Items]
Restaurant closure liability				2,400	$ 2,800
Current portion of restaurant closure liability				623	794
Non-current portion of restaurant closure liability				1,788	2,030
Number of underperforming locations \| location	12
Restaurant closure charges, net				(449)	(379)	$ (179)
Facility Closing [Member] \| Successor
Restructuring Cost and Reserve [Line Items]
Restaurant closure liability	$ 1,023		$ 1,365	319	1,213	1,023
Adjustments to estimate based on current activity		$ 22	439	(513)
Current portion of restaurant closure liability				100	500
Non-current portion of restaurant closure liability				200	700
Restaurant closure charges, net		(97)	(80)	(54)
12 Underperforming Restaurants \| Successor
Restructuring Cost and Reserve [Line Items]
Restaurant closure liability	$ 1,773		$ 3,800	2,092	1,611	$ 1,773
Adjustments to estimate based on current activity				747	144
Current portion of restaurant closure liability				500	300
Non-current portion of restaurant closure liability				1,600	1,300
Number of underperforming locations \| location	12
Restructuring cost incurred				700
Reclassification of lease related liabilities		(553)
Restaurant closure charges, net		$ (133)		$ (61)	$ (70)
Franchise revenue \| Successor
Restructuring Cost and Reserve [Line Items]
Franchise-operated restaurants acquired from franchisees \| location				3	1	6

Restaurant Closure and Other Related Charges - Restaurant Closure Liability Activity (Details) - Successor $ in Thousands	4 Months Ended	6 Months Ended		12 Months Ended
	Jan. 03, 2017 USD ($) location	Dec. 29, 2015 USD ($)	Jun. 30, 2015 USD ($)	Jan. 01, 2019 USD ($)	Jan. 02, 2018 USD ($)	Jan. 03, 2017 USD ($)
Restructuring Reserve [Roll Forward]
Closure liability at beginning of period				$ 2,800
Charges for accretion in current period				449	$ 379	$ 179
Closure liability at end of period				2,400	2,800
Number of underperforming locations \| location	12
Facility Closing [Member]
Restructuring Reserve [Roll Forward]
Closure liability at beginning of period		$ 1,365		1,213	1,023
Adjustments to estimate based on current activity		22	$ 439	(513)
Restructuring Reserve, Period Increase (Decrease)		0		0	46
Charges for accretion in current period		97	80	54
Cash payments		(317)	(177)	(435)
Closure liability at end of period	$ 1,023		1,365	319	1,213	1,023
12 Underperforming Restaurants
Restructuring Cost and Reserve [Line Items]
Restructuring cost incurred				700
Restructuring Reserve [Roll Forward]
Closure liability at beginning of period		3,800		1,611	1,773
Adjustments to estimate based on current activity				747	144
Charges for accretion in current period		133		61	70
Cash payments		(1,607)		(327)	(376)
Reclassification of lease related liabilities		(553)
Closure liability at end of period	$ 1,773		3,800	2,092	1,611	1,773
Number of underperforming locations \| location	12
12 Underperforming Restaurants \| Contract Termination [Member]
Restructuring Reserve [Roll Forward]
Closure liability at beginning of period		3,637		1,611	1,773
Adjustments to estimate based on current activity				747	144
Charges for accretion in current period		133		61	70
Cash payments		(1,444)		(327)	(376)
Reclassification of lease related liabilities		(553)
Closure liability at end of period	$ 1,773		3,637	2,092	1,611	1,773
12 Underperforming Restaurants \| Other Restructuring [Member]
Restructuring Reserve [Roll Forward]
Closure liability at beginning of period		163		0	0
Adjustments to estimate based on current activity				0	0
Charges for accretion in current period		0		0	0
Cash payments		(163)		0	0
Reclassification of lease related liabilities		$ 0
Closure liability at end of period	$ 0		$ 163	$ 0	$ 0	$ 0

Property and Equipment, Net - Schedule of Property and Equipment (Details) - Successor - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 02, 2018
Property, Plant and Equipment [Line Items]
Property and equipment	$ 230,518	$ 206,012
Less: Accumulated depreciation	(69,089)	(49,888)
Property and Equipment, Net	161,429	156,124
Land
Property, Plant and Equipment [Line Items]
Property and equipment	1,929	9,800
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment	4,335	2,325
Restaurant and other equipment
Property, Plant and Equipment [Line Items]
Property and equipment	87,767	74,075
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	121,409	100,192
Buildings under capital leases
Property, Plant and Equipment [Line Items]
Property and equipment	3,390	4,625
Less: Accumulated depreciation	(2,200)	(2,500)
RestaurantPropertyLeasedToOthers [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	991	3,090
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property and equipment	$ 10,697	$ 11,905

Summary of Refranchsing and Franchise Acquisitions Summary of refranchising (Details) $ in Thousands	12 Months Ended
	Jan. 01, 2019 USD ($)	Jan. 02, 2018 USD ($) restaurant	Jan. 03, 2017 USD ($)
Franchisor Disclosure [Line Items]
Company-operated restaurants sold to franchisees \| restaurant		5
Proceeds from Divestiture of Businesses		$ 2,192
Net assets sold (primarily furniture, fixtures and equipment)		(1,261)
Goodwill related to the company-operated restaurants sold to franchisees		(247)
(Unfavorable)/favorable lease assets/liabilities		(548)
Other costs related to the sale of company-operated restaurants		(5)
Gain on sale of company-operated restaurants		131
Sale of company-operated restaurants
Franchisor Disclosure [Line Items]
Favorable lease assets	$ 100
Unfavorable Leasehold Interests Noncurrent	600
Successor
Franchisor Disclosure [Line Items]
Proceeds from Divestiture of Businesses	0	2,192	$ 0
Goodwill related to the company-operated restaurants sold to franchisees	900
Favorable lease assets	$ 18,507	21,498
Total consideration excluding land and building		$ 1,800

Summary of Refranchsing and Franchise Acquisitions Franchise Acquisitions (Details) $ in Thousands	12 Months Ended
	Jan. 01, 2019 USD ($) location	Jan. 02, 2018 USD ($) location	Jan. 03, 2017 USD ($) location
Business Acquisition [Line Items]
Goodwill	$ 321,531	$ 320,638
Successor
Business Acquisition [Line Items]
Goodwill	321,531	320,638
Total consideration excluding land and building		$ 1,800
Unfavorable Leasehold Interests Noncurrent, Accrual Adjustment	600
Prepaid expenses and other current assets	$ 100
Successor \| Franchise revenue
Business Acquisition [Line Items]
Franchise-operated restaurants acquired from franchisees \| location	3	1	6
Goodwill	$ 893	$ 860	$ 969
Property and equipment	798	360	821
Land and building	0	0	2,127
Reacquired franchise rights	150	0	0
Unfavorable lease liability	0	(85)	0
Liabilities assumed	0	(7)	(26)
Total gross consideration	$ 1,841	$ 1,128	$ 3,891

Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	12 Months Ended
	Jan. 01, 2019 USD ($)
Goodwill And Other Intangible Asset [Line Items]
Balance as of January 2, 2018	$ 320,638
Acquisition of franchise-operated restaurants	893
Balance as of January 1, 2019	321,531
Successor
Goodwill And Other Intangible Asset [Line Items]
Balance as of January 2, 2018	320,638
Balance as of January 1, 2019	$ 321,531

Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Detail) - Successor - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 02, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 28,567	$ 29,271
Accumulated Amortization	(10,060)	(7,773)
Net	18,507	21,498
Favorable lease assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	13,118	13,744
Accumulated Amortization	(5,542)	(4,442)
Net	7,576	9,302
Franchise rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,032	15,284
Accumulated Amortization	(4,411)	(3,282)
Net	10,621	12,002
Reacquired franchise rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	417	243
Accumulated Amortization	(107)	(49)
Net	$ 310	$ 194

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands	Jan. 01, 2019 USD ($)
Favorable lease assets
Finite-Lived Intangible Assets [Line Items]
2018	$ 1,443
2019	1,171
2020	1,005
2021	922
2022	746
Franchise rights
Finite-Lived Intangible Assets [Line Items]
2018	1,245
2019	1,176
2020	1,064
2021	965
2022	$ 880

Goodwill and Other Intangible Assets - Additional Information (Details)	6 Months Ended	12 Months Ended
	Dec. 29, 2015 USD ($)	Jan. 01, 2019 USD ($) location restaurant lease	Jan. 02, 2018 USD ($) location restaurant
Finite-Lived Intangible Assets [Line Items]
Goodwill adjusment			$ (247,000)
Company-operated restaurants sold to franchisees \| restaurant			5
Franchise rights
Finite-Lived Intangible Assets [Line Items]
Useful life of finite lived intangible assets (in years)		40 years
Successor
Finite-Lived Intangible Assets [Line Items]
Goodwill adjusment		$ 900,000
Trademarks		$ 220,300,000	$ 220,300,000
Number of franchised restaurants acquired \| restaurant		3
Amortization expense	$ 3,600,000	$ 3,100,000	3,300,000
Successor \| Franchise rights
Finite-Lived Intangible Assets [Line Items]
Weighted average life of definite-lived intangibles (in years)		12 years 1 month 17 days
Amortization expense	1,600,000	$ 1,400,000	1,300,000
Successor \| Favorable lease assets
Finite-Lived Intangible Assets [Line Items]
Weighted average life of definite-lived intangibles (in years)		6 years 7 months 6 days
Amortization expense	$ 2,000,000	$ 1,700,000	$ 1,900,000
Three Leases \| Successor \| Favorable lease assets
Finite-Lived Intangible Assets [Line Items]
Number of leases terminated \| lease		3
Intangible assets written off		$ 200,000
Nine Franchise Locations \| Successor \| Favorable lease assets
Finite-Lived Intangible Assets [Line Items]
Intangible assets written off		$ 400,000
Number of franchise locations fully amortized \| location		9
One Franchise-Operated Restaurant \| Successor \| Franchise rights
Finite-Lived Intangible Assets [Line Items]
Number of franchise locations closed \| restaurant		1
Intangible assets written off		$ 100,000
Six Franchise Locations \| Successor \| Franchise rights
Finite-Lived Intangible Assets [Line Items]
Intangible assets written off		$ 100,000
Number of franchise locations fully amortized \| location		6
One Franchise Location \| Successor \| Franchise rights
Finite-Lived Intangible Assets [Line Items]
Number of franchised restaurants acquired \| location		1	1
Intangible assets acquired		$ 24,000	$ 100,000
Five Franchise Locations \| Successor \| Franchise rights
Finite-Lived Intangible Assets [Line Items]
Intangible assets written off			$ 67,000
Number of franchise locations fully amortized \| location			5
Two Franchise-Operated Restaurants \| Successor \| Franchise rights
Finite-Lived Intangible Assets [Line Items]
Number of franchised restaurants acquired \| restaurant		2
Reacquired franchise rights		$ 200,000

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities - Schedule of Debt (Details) - USD ($) $ in Thousands		12 Months Ended
	Aug. 04, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Debt Instrument [Line Items]
Total debt, net		$ 179,697
Amortization of Debt Issuance Costs and Discounts				$ 400
Successor
Debt Instrument [Line Items]
Total outstanding indebtedness		158,386	$ 152,001
Obligations under capital leases and deemed landlord financing liabilities		21,311	20,053
Total debt, net		179,697	172,054
Less: amounts due within one year		1,033	1,415
Total amounts due after one year, net		178,664	170,639
Amortization of Debt Issuance Costs and Discounts		400	0
Successor \| 2015 Senior Credit Facility
Debt Instrument [Line Items]
Total outstanding indebtedness		158,386	152,001
Unamortized debt discount	$ 1,400	459	747
Deferred financing costs		$ 155	$ 252
Unused commitment fee percentage (percent)	0.25%
Base Rate \| Successor \| 2015 Senior Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate, Increase (Decrease)		0.25%

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities - 2015 Revolving Credit Facility (Successor) (Details) - USD ($)		12 Months Ended
	Aug. 04, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Debt Instrument [Line Items]
Amortization of deferred financing costs including debt discount				$ 400,000
Successor
Debt Instrument [Line Items]
Payments on revolving credit facility		$ 25,000,000	$ 37,500,000	$ 19,000,000
Amortization of deferred financing costs including debt discount		400,000	0
Successor \| 2015 Senior Credit Facility
Debt Instrument [Line Items]
Credit agreement issuance date	Aug. 04, 2015
Credit agreement maturity date	Aug. 04, 2020
Credit facility amount	$ 250,000,000
Credit facility		$ 17,300,000
Credit fees applicable margin percentage (percent)	2.00%	1.75%
Unused commitment fee percentage (percent)	0.25%
Unamortized debt discount	$ 1,400,000	$ 459,000	$ 747,000
Deferred financing costs	$ 500,000
Interest rate on outstanding balance of credit facility (percent)		4.27%
Availability for additional borrowings under credit facility		$ 73,700,000
2015 Senior Credit Facility		$ 159,000,000
Successor \| 2015 Senior Credit Facility \| Federal Funds Effective Swap
Debt Instrument [Line Items]
Effective base rate, margins on variable rate (percent)	0.50%
Successor \| 2015 Senior Credit Facility \| LIBOR
Debt Instrument [Line Items]
Effective base rate, margins on variable rate (percent)	1.00%
Credit facility margins on variable rate (percent)	2.00%
Minimum \| Successor \| 2015 Senior Credit Facility \| LIBOR
Debt Instrument [Line Items]
Credit facility margins on variable rate (percent)	1.50%
Minimum \| Successor \| 2015 Senior Credit Facility \| Base Rate
Debt Instrument [Line Items]
Credit facility margins on variable rate (percent)	0.50%
Maximum \| Successor \| 2015 Senior Credit Facility \| LIBOR
Debt Instrument [Line Items]
Credit facility margins on variable rate (percent)	2.50%
Maximum \| Successor \| 2015 Senior Credit Facility \| Base Rate
Debt Instrument [Line Items]
Credit facility margins on variable rate (percent)	1.50%

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities - DTH 2013 Senior Credit Facility (Details) $ in Millions	12 Months Ended
	Jan. 03, 2017 USD ($)
Debt Instrument [Line Items]
Amortization of deferred financing costs including debt discount	$ 0.4

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities - Other Debt Information (Details) $ in Thousands	Jan. 01, 2019 USD ($)
Debt Disclosure [Abstract]
2018	$ 1,033
2019	159,881
2020	832
2021	777
2022	927
Thereafter	16,861
Total maturities	180,311
Less: debt discount and deferred financing costs	(614)
Total debt, net	$ 179,697

Derivative Instruments - Additional Information (Detail) - USD ($)	12 Months Ended
	Jan. 01, 2019	Jan. 02, 2018	Jul. 11, 2016
Derivative [Line Items]
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	$ 60,000
Warrant exercise price per share (in dollars per share)			$ 11.50
Successor
Derivative [Line Items]
Warrants to purchase of common stock (in shares)	5,952,423
Warrant exercise price per share (in dollars per share)	$ 11.50
Cash Flow Hedging \| Interest Rate Cap \| Successor
Derivative [Line Items]
Notional amount	$ 70,000,000.0	$ 87,500,000.0
Cap interest rate	2.00%
Amount expected to be reclassified into earnings over the remaining term of the agreement.	$ 200,000
Amount expected to be reclassified into interest expense over the next 12 months	$ 181,000

Fair Value Measurements - Additional Information (Detail) - USD ($)	Jan. 01, 2019	Jan. 02, 2018
Successor \| Interest Rate Cap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of interest rate cap	$ 499,000	$ 332,000

Fair Value Measurements - Summary of Estimated Fair Values of Long-term Debt Instruments, Warrant Liability and Interest Rate Cap Agreement (Detail) - Successor - 2015 Senior Credit Facility - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 02, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
2015 Senior Credit Facility	$ 159,000
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
2015 Senior Credit Facility	158,386	$ 152,001
Book Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
2015 Senior Credit Facility	$ 158,386	$ 152,001

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 02, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate cap	$ 499	$ 332
Total assets measured at fair value	499	332
Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate cap	0	0
Total assets measured at fair value	0	0
Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate cap	499	332
Total assets measured at fair value	499	332
Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate cap	0	0
Total assets measured at fair value	$ 0	$ 0

Other Accrued Liabilities and Other Non-current Liabilities - Summary of Other Accrued Liabilities (Detail) - Successor - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 02, 2018
Accounts Payable And Accrued Liabilities Current And Noncurrent [Line Items]
Employee compensation and related items	$ 12,888	$ 12,945
Accrued insurance	5,664	7,232
Accrued sales tax	3,952	3,987
Accrued property and equipment purchases	3,196	3,757
Accrued advertising	1,578	728
Accrued real property tax	1,420	1,331
Restaurant closure liability	623	794
Other	5,464	4,483
Other accrued liabilities	$ 34,785	$ 35,257

Other Accrued Liabilities and Other Non-current Liabilities - Summary of Other Non-current Liabilities (Detail) - Successor - USD ($) $ in Thousands	Jan. 01, 2019	Jan. 02, 2018
Other Non Current Liabilities [Line Items]
Unfavorable lease liabilities	$ 11,975	$ 14,469
Insurance reserves	8,794	5,965
Deferred rent liability	4,594	2,972
Deferred development and initial franchise fees	2,742	1,335
Restaurant closure liabilities	1,788	2,030
Deferred gift card income	1,290	1,234
Unearned trade discount, non-current	739	1,149
Other	930	2,277
Other non-current liabilities	$ 32,852	$ 31,431

Stock-Based Compensation - Additional Information (Detail) - USD ($)		4 Months Ended	12 Months Ended
	Mar. 20, 2015	Jan. 01, 2019	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017	Mar. 20, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value			$ 13.88
Additional shares granted during period (in shares)			594,619
Granted (in shares)		106,000	106,000
Unrecognized compensation expense, net		$ 800,000	$ 800,000
Tax withholdings on restricted stock vesting			168,484	140,209
Number of awards outstanding		1,234,531	1,234,531	1,088,910
Number of stock options outstanding		453,250	453,250	417,000
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved and authorized for issuance		3,300,000	3,300,000
Common stock authorized and available for grant		900,976	900,976
Stock-based compensation expense recorded			$ 6,100,000	$ 4,900,000	$ 4,100,000
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of recognition			2 years 5 months 19 days
Weighted-average grant date fair value			$ 13.88	$ 13.64	$ 9.30
Total fair value of awards vested			$ 5,900,000	$ 5,400,000	$ 2,400,000.0
Unrecognized compensation expense, net		$ 10,300,000	10,300,000
Payments related to employee tax withholding obligations			$ 2,400,000	1,900,000
Restricted Shares \| 2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Additional shares granted during period (in shares)			594,619
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of recognition			2 years 4 months 24 days
Vesting period			4 years
Total intrinsic value of stock options exercised			$ 51,000	0	0
Successor
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense recorded	$ 500,000
Payments related to employee tax withholding obligations			$ 2,378,000	$ 1,923,000	$ 916,000
Predecessor \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards outstanding						0

Stock-Based Compensation - Summary of Outstanding and Unvested Restricted Stock Activity (Detail)	12 Months Ended
	Jan. 01, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested, beginning balance (in shares) \| shares	1,088,910
Granted (in shares) \| shares	594,619
Vested (in shares) \| shares	(425,873)
Forfeited (in shares) \| shares	(23,125)
Nonvested, ending balance (in shares) \| shares	1,234,531
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-Average Grant Date Fair Value, beginning balance (in dollars per share) \| $ / shares	$ 11.92
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) \| $ / shares	13.88
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) \| $ / shares	11.85
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) \| $ / shares	13.09
Weighted-Average Grant Date Fair Value, ending balance (in dollars per share) \| $ / shares	$ 12.87

Stock-Based Compensation - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	4 Months Ended	12 Months Ended
	Jan. 01, 2019	Jan. 01, 2019	Jan. 02, 2018
Shares
Options outstanding, beginning of period (in shares)		417,000
Granted (in shares)	106,000	106,000
Exercised (in shares)		(21,750)
Forfeited (in shares)		(48,000)
Options outstanding, end of period (in shares)	453,250	453,250	417,000
Options exercisable (in shares)	187,996
Options exercisable and expected to vest (in shares)	425,954
Weighted Average Exercise Price
Weighted Average Exercise Price, beginning balance (in dollars per share)		$ 11.04
Weighted Average Exercise Price, Granted (in dollars per share)		14.04
Weighted Average Exercise Price, Exercised (in dollars per share)		10.22
Weighted Average Exercise Price, Forfeited (in dollars per share)		11.43
Weighted Average Exercise Price, end of period (in dollars per share)	$ 11.74	$ 11.04	$ 11.04
Weighted Average Exercise Price, Options exercisable (in dollars per share)	10.57
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term		4 years 3 months 11 days
Weighted Average Exercise Price, Options exercisable and expected to vest (in dollars per share)	$ 11.65
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Term, Options outstanding (in years)		4 years 11 months 23 days	5 years 6 months
Weighted Average Remaining Contractual Term, Options excercisable and expected to vest (in years)		4 years 11 months 5 days
Aggregate Intrinsic Value, Options outstanding	$ 77		$ 641
Aggregate Intrinsic Value, Options exercisable	38
Aggregate Intrinsic Value, Options exercisable and expected to vest	$ 74

Stock-Based Compensation - Assumptions Used in Option-pricing Valuation (Details) - USD ($)	12 Months Ended
	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (percent)	36.29%	36.09%	37.64%
Risk-free rate of return (percent)	2.71%	1.86%	1.12%
Expected life (in years)	4 years 8 months 27 days	4 years 9 months	5 years 6 months
Dividend yield	$ 0	$ 0	$ 0
Fair value per share at date of grant (in dollars per share)	$ 4.92	$ 4.63	$ 3.31

Shareholders' Equity - Additional Information (Detail)						12 Months Ended
Shareholders' Equity - Additional Information (Detail)	Mar. 29, 2017 $ / shares shares	Aug. 08, 2016 shares	Jul. 25, 2016 shares	Jul. 11, 2016 $ / shares shares	Mar. 12, 2015	Jan. 01, 2019 USD ($) vote $ / shares shares	Jan. 02, 2018 USD ($) $ / shares shares	Jan. 03, 2017 USD ($) $ / shares shares	Jul. 23, 2018 USD ($)	Aug. 23, 2016 USD ($)	Feb. 26, 2016 USD ($)
Class of Stock [Line Items]
Number of votes entitled to each share \| vote						1
Warrant exercise price per share (in dollars per share) \| $ / shares				$ 11.50
Issuance of common stock (in shares)		1,533,542
Stock purchase agreement date					Mar. 12, 2015
Share Price \| $ / shares						$ 4.92	$ 4.63	$ 3.31
Number of shares received in exchange for each warrant				0.2780
Number of shares received in exchange offer				1
Number of warrants exchanged for each share				3.6
Number of warrants eligible for exchange offer, maximum			7,750,000	6,750,000
Number of warrants tendered in the exchange offer		5,516,243
Number of warrants tendered by directors and executive officers		1,501,800
Transaction costs related to exchange offer \| $						$ 600,000
Successor
Class of Stock [Line Items]
Common stock, shares authorized (in shares)						400,000,000	400,000,000
Common stock, shares issued (in shares)						37,305,342	38,434,274
Common stock, shares outstanding (in shares)						37,305,342	38,434,274
Warrants to purchase of common stock (in shares)						5,952,423
Warrant exercise price per share (in dollars per share) \| $ / shares						$ 11.50
Preferred stock, shares authorized (in shares)						1,000,000	1,000,000
Preferred stock, shares issued (in shares)						0	0
Preferred stock, shares outstanding (in shares)						0	0
Shares/warrants repurchased, value \| $						$ 16,316,000	$ 13,849,000	$ 15,314,000
Common Stock and Warrants [Member]
Class of Stock [Line Items]
Maximum authorized stock & warrant repurchase amount (up to) \| $									$ 75,000,000.0	$ 50,000,000	$ 25,000,000
Stock repurchase program, increase authorized amount \| $									$ 25,000,000.0	$ 25,000,000
Common Stock and Warrants [Member] \| Successor
Class of Stock [Line Items]
Remaining authorized stock/warrant repurchase amount \| $						$ 29,600,000
Common Stock \| Successor
Class of Stock [Line Items]
Shares/warrants repurchased (in shares/warrants)						1,408,071	986,497	1,347,300
Average cost per share/warrant (in dollars per share/warrant) \| $ / shares						$ 11.48	$ 12.41	$ 10.00
Shares/warrants repurchased, value \| $						$ 16,200,000	$ 12,300,000	$ 13,500,000
Warrants \| Successor
Class of Stock [Line Items]
Shares/warrants repurchased (in shares/warrants)	400,000					47,511	424,439	699,007
Average cost per share/warrant (in dollars per share/warrant) \| $ / shares	$ 3.75					$ 2.55	$ 3.72	$ 2.54
Discount on repurchase	5.00%
Share Price \| $ / shares	$ 3.95
Shares/warrants repurchased, value \| $						$ 100,000	$ 1,600,000	$ 1,800,000

Earnings per Share - Schedule of Basic and Diluted Net Income per Share Data (Detail) - Successor - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						4 Months Ended		6 Months Ended	12 Months Ended
	Sep. 11, 2018	Jun. 19, 2018	Mar. 27, 2018	Sep. 12, 2017	Jun. 20, 2017	Mar. 28, 2017	Jan. 01, 2019	Jan. 02, 2018	Dec. 29, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Numerator:
Net income	$ 5,874	$ 4,210	$ 3,229	$ 5,101	$ 5,330	$ 4,238	$ 5,646	$ 35,202	$ 20,913	$ 18,959	$ 49,871	$ 20,913
Denominator:
Weighted-average shares outstanding - basic (in shares)									38,725,541	38,106,057	38,689,508	38,725,541
Weighted-average shares outstanding - diluted (in shares)									39,274,649	38,683,959	39,949,907	39,274,649
Net (loss) income per share - basic (in dollars per share)	$ 0.15	$ 0.11	$ 0.08	$ 0.13	$ 0.14	$ 0.11	$ 0.15	$ 0.91	$ 0.54	$ 0.50	$ 1.29	$ 0.54
Net (loss) income per share - diluted (in dollars per share)	$ 0.15	$ 0.11	$ 0.08	$ 0.13	$ 0.13	$ 0.10	$ 0.15	$ 0.89	$ 0.53	$ 0.49	$ 1.25	$ 0.53
Antidilutive options, unvested restricted stock awards, unvested RSUs and warrants excluded from the computations (in shares)									8,343,842	686,278	69,722
Dilutive effect of restricted shares
Denominator:
Dilutive effect (in shares)									263,003	256,217	417,371
Dilutive effect of stock options
Denominator:
Dilutive effect (in shares)									0	17,611	28,931
Dilutive effect of warrants
Denominator:
Dilutive effect (in shares)									286,105	304,074	814,097

Income Taxes - Schedule of Components of Provision for Income Tax Expense (Benefit) (Details) - Successor - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 29, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Current:
Federal	$ 4,204	$ 3,762	$ 5,884
State	270	1,800	886
Total current income tax expense (benefit)	4,474	5,562	6,770
Deferred:
Federal	7,145	698	(24,636)
State	3,710	399	2,042
Total deferred income tax expense (benefit)	10,855	1,097	(22,594)
Income tax provision (benefit)	$ 15,329	$ 6,659	$ (15,824)	$ 15,329

Income Taxes - Schedule of Effective Rates and the Statutory Federal Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	4 Months Ended	6 Months Ended	12 Months Ended
	Jan. 01, 2019	Dec. 29, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Tax reform			$ (29,100)
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Federal income taxes (percent)			21.00%	35.00%
Successor
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Federal income taxes			$ 5,380	$ 11,916	$ 12,685
State and local income taxes, net of federal tax benefit			1,639	1,688	1,882
Targeted job credits			(727)	(420)	(448)
Investment in subsidiary			0	0	570
Tax reform	$ (300)		(291)	(29,111)	0
Transaction costs			0	0	227
Executive compensation disallowed			362	81	104
Permanent tax differences and other			296	22	309
Income tax provision (benefit)		$ 15,329	$ 6,659	$ (15,824)	$ 15,329
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Federal income taxes (percent)			21.00%	35.00%	35.00%
State and local income taxes, net of federal tax benefit (percent)			6.40%	5.00%	5.20%
Targeted job credits (percent)			(2.80%)	(1.20%)	(1.20%)
Investment in subsidiary (percent)			0.00%	0.00%	1.60%
Tax reform			(1.10%)	(85.50%)	0.00%
Transaction costs (percent)			0.00%	0.00%	0.60%
Executive compensation disallowed			1.40%	0.20%	0.30%
Permanent tax differences and other (percent)			1.10%	0.00%	0.80%
Effective income tax rates (percent)		42.30%	26.00%	(46.50%)	42.30%

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - Successor - USD ($)	Jan. 01, 2019	Jan. 02, 2018
Deferred tax assets:
Deferred rent	$ 1,173,000	$ 741,000
Accrued insurance	3,685,000	3,332,000
Reserve for restructuring and closed restaurants	652,000	763,000
Net operating loss carryforwards and tax credits	122,000	485,000
Deferred income	1,196,000	1,069,000
Stock-based compensation	1,049,000	767,000
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation	532,000	472,000
Other, net	494,000	355,000
Deferred tax assets	8,903,000	7,984,000
Less valuation allowance	0	0
Net deferred tax assets	8,903,000	7,984,000
Deferred tax liabilities:
Property, equipment and intangibles	(69,357,000)	(67,696,000)
Investment in subsidiary	(7,448,000)	(7,420,000)
Prepaid expenses	(1,569,000)	(1,442,000)
Deferred tax liabilities	(78,374,000)	(76,558,000)
Net deferred tax liabilities	$ (69,471,000)	$ (68,574,000)

Income Taxes - Additional Information (Detail) - USD ($)	4 Months Ended	6 Months Ended	12 Months Ended
	Jan. 01, 2019	Dec. 29, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Income Tax Disclosure [Line Items]
Federal income taxes (percent)			21.00%	35.00%
Tax reform			$ (29,100,000)
Successor
Income Tax Disclosure [Line Items]
Federal income taxes (percent)			21.00%	35.00%	35.00%
Tax reform	$ (300,000)		$ (291,000)	$ (29,111,000)	$ 0
Effective income tax rates (percent)		42.30%	26.00%	(46.50%)	42.30%
Valuation allowance	0		$ 0	$ 0
Liability for uncertain tax positions	200,000		200,000	200,000
Unrecognized tax benefits that would impact effective tax rate	200,000		200,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	0		0
Domestic Tax Authority \| Successor
Income Tax Disclosure [Line Items]
Operating loss carryforwards	0		0
Tax credit carryforward	0		0	0
State and Local Jurisdiction [Member]
Income Tax Disclosure [Line Items]
Tax credit carryforward				$ 600,000
State and Local Jurisdiction [Member] \| Successor
Income Tax Disclosure [Line Items]
Operating loss carryforwards	0		0
Tax credit carryforward	$ 100,000		$ 100,000

Leases - Additional Information (Details) $ in Thousands	4 Months Ended	6 Months Ended	12 Months Ended
Leases - Additional Information (Details) $ in Thousands	Jan. 03, 2017 location	Dec. 29, 2015 USD ($)	Jan. 01, 2019 USD ($) property location	Jan. 02, 2018 USD ($)
Operating Leased Assets [Line Items]
Number of properties subleased \| property			26
Number of Underperforming Restaurant Locations, Terminated \| location			1
Net proceeds from sale-leaseback arrangements			$ 9,900	$ 3,400
Lease agreement term (in years)			35 years
Sale Leaseback Transaction, Deferred Gain, Net			$ 300
Successor
Operating Leased Assets [Line Items]
Deferred rent liability			16,600	17,400
Unfavorable lease liabilities, net			11,975	14,469
Unfavorable leases, accumulated amortization			7,200	6,100
Sublease rent income		$ 2,343	3,115	2,844
Sublease contingent rental income			100	$ 100
Total sublease amounts receivable			$ 28,900
Number of Underperforming Restaurant Locations, Subleased \| location			11
Number of underperforming locations \| location	12
Costa Mesa [Member]
Operating Leased Assets [Line Items]
Lease agreement term (in years)				20 years
Las Vegas [Member]
Operating Leased Assets [Line Items]
Lease agreement term (in years)				20 years
Sale of Land and Building in Victorville
Operating Leased Assets [Line Items]
Lease agreement term (in years)	1 year
Lessee Leasing Arrangements, Operating Leases, Termination Notice				60 days
Sale of Land and Building in Bakersfield
Operating Leased Assets [Line Items]
Lease agreement term (in years)	20 years
Capital Lease Obligations \| Successor
Operating Leased Assets [Line Items]
Interest rate on capital lease			10.00%
Occupancy and Other - Franchise Subleases \| Successor
Operating Leased Assets [Line Items]
Sublease rent income		$ 2,207	$ 2,855	$ 2,608
Property Lease Guarantee
Operating Leased Assets [Line Items]
Lease agreement term (in years)			13 years
Guarantor obligations, maximum exposure, lease payments			$ 1,800

Leases - Schedule of Rent Expense (Details) - Successor - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 29, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Operating Leased Assets [Line Items]
Minimum rental expense	$ 26,465	$ 29,134	$ 27,372
Favorable and unfavorable lease assets and liabilities amortization, net	(607)	(767)	(809)	$ (607)
Straight-line rent expense	781	722	826
Contingent rent expense	805	715	685
Rent expense	27,444	29,804	28,074
Franchise sublease income	(2,343)	(3,115)	(2,844)
Occupancy and Other - Franchise Subleases [Member]
Operating Leased Assets [Line Items]
Franchise sublease income	$ (2,207)	$ (2,855)	$ (2,608)

- Definition

The increases or decreases in lease payments that result from changes occurring after the inception of the lease in the factors (other than the passage of time) on which lease payments are based, except that any escalation of minimum lease payments relating to increases in construction or acquisition cost of the leased property or for increases in some measure of cost or value during the construction or preconstruction period, are excluded from contingent rentals. Contingent rentals also may include amounts for which the triggering events have not yet occurred or the specified targets for which have not yet been achieved (such as sales based percentage rent), but which events are considered probable of occurring or which specified targets are considered probable of being achieved.

+ References + Details

Leases - Minimum Commitments and Receipts (Details) - Successor $ in Thousands	Jan. 01, 2019 USD ($)
Capital Leases, Future Minimum Payments, Net Present Value [Abstract]
Capital Lease and Deemed Landlord Financing Liabilities, 2017	$ 3,561
Capital Lease and Deemed Landlord Financing Liabilities, 2018	3,317
Capital Lease and Deemed Landlord Financing Liabilities, 2019	3,186
Capital Lease and Deemed Landlord Financing Liabilities, 2020	3,056
Capital Lease and Deemed Landlord Financing Liabilities, 2021	3,123
Capital Lease and Deemed Landlord Financing Liabilities, Thereafter	34,071
Capital Lease and Deemed Landlord Financing Liabilities, Total minimum lease payments	50,314
Capital Lease and Deemed Landlord Financing Liabilities, Imputed Interest	(29,003)
Capital Lease and Deemed Landlord Financing Liabilities, Present value of payments	21,311
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating Leases, 2018	33,951
Operating Leases, 2019	32,071
Operating Leases, 2020	30,794
Operating Leases, 2021	29,362
Operating Leases, 2022	26,414
Operating Leases, Thereafter	153,675
Operating Leases, Total minimum lease payments	306,267
Operating Leases, Future Minimum Payments Receivable [Abstract]
Operating Subleases, 2018	(2,564)
Operating Subleases, 2019	(2,403)
Operating Subleases, 2020	(2,409)
Operating Subleases, 2021	(2,392)
Operating Subleases, 2022	(2,274)
Operating Subleases, Thereafter	(16,844)
Operating Subleases, Total minimum lease payments	(28,886)
Net Lease Commitments, 2018	34,948
Net Lease Commitments, 2019	32,985
Net Lease Commitments, 2020	31,571
Net Lease Commitments, 2021	30,026
Net Lease Commitments, 2022	27,263
Net Lease Commitments, Thereafter	170,902
Net Lease Commitments, Total minimum lease payments	$ 327,695

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2019	Jan. 02, 2018
Loss Contingencies [Line Items]
Purchasing commitments contract extended terms	2021
Insurance deductible per claim	$ 350
Successor
Loss Contingencies [Line Items]
Contractual purchase obligations for goods and services	$ 55,900
Officers \| Termination Incentive Payments
Loss Contingencies [Line Items]
Base salary and bonus incentive payments after termination, term (in years)	1 year
Officers \| Termination Incentive Payments \| Successor
Loss Contingencies [Line Items]
Contingent liability related to Severance Agreements and Executive Employment Agreements	$ 3,300	$ 2,600

Retirement Plans - Additional Information (Details) - USD ($)	12 Months Ended
	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Successor
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	$ 86,000	$ 82,000	$ 80,000

Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - Successor - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						4 Months Ended		6 Months Ended	12 Months Ended
	Sep. 11, 2018	Jun. 19, 2018	Mar. 27, 2018	Sep. 12, 2017	Jun. 20, 2017	Mar. 28, 2017	Jan. 01, 2019	Jan. 02, 2018	Dec. 29, 2015	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Condensed Financial Statements, Captions [Line Items]
Total revenue	$ 117,830	$ 117,813	$ 112,554	$ 110,988	$ 108,581	$ 105,345	$ 157,293	$ 146,542		$ 505,490	$ 471,456	$ 452,083
Income from operations	9,195	7,804	6,338	9,533	10,276	8,613	10,696	12,825		34,033	41,247	43,300
Net income	$ 5,874	$ 4,210	$ 3,229	$ 5,101	$ 5,330	$ 4,238	$ 5,646	$ 35,202	$ 20,913	$ 18,959	$ 49,871	$ 20,913
Earnings per share:
Basic (in dollars per share)	$ 0.15	$ 0.11	$ 0.08	$ 0.13	$ 0.14	$ 0.11	$ 0.15	$ 0.91	$ 0.54	$ 0.50	$ 1.29	$ 0.54
Diluted (in dollars per share)	$ 0.15	$ 0.11	$ 0.08	$ 0.13	$ 0.13	$ 0.10	$ 0.15	$ 0.89	$ 0.53	$ 0.49	$ 1.25	$ 0.53

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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-Name Accounting Standards Codification
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

- Definition

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

+ References + Details

Subsequent Events (Details) $ in Thousands	3 Months Ended	12 Months Ended
Subsequent Events (Details) $ in Thousands	Mar. 26, 2019 USD ($) restaurant	Jan. 01, 2019 USD ($)	Jan. 02, 2018 USD ($) restaurant	Jan. 03, 2017 USD ($)
Subsequent Event [Line Items]
Company-operated restaurants sold to franchisees \| restaurant			5
Proceeds from Divestiture of Businesses			$ 2,192
Lease agreement term (in years)		35 years
Net proceeds from sale-leaseback arrangements		$ 9,900	3,400
Successor
Subsequent Event [Line Items]
Proceeds from Divestiture of Businesses		0	2,192	$ 0
Acquisition of franchisees		$ 1,841	$ 1,128	$ 3,891
Successor \| Subsequent Event
Subsequent Event [Line Items]
Company-operated restaurants sold to franchisees \| restaurant	13
Proceeds from Divestiture of Businesses	$ 2,100
Franchise-operated restaurants acquired from franchisees \| restaurant	3
Acquisition of franchisees	$ 3,100
Net proceeds from sale-leaseback arrangements	$ 10,000
Restaurant Land And Building \| Subsequent Event
Subsequent Event [Line Items]
Lease agreement term (in years)	20 years
Restaurant Land \| Subsequent Event
Subsequent Event [Line Items]
Lease agreement term (in years)	20 years

Schedule II - Valuation and Qualifying Accounts (Details) - Successor - SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Dec. 29, 2015

Jan. 01, 2019

Jan. 02, 2018

SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]

Balance at beginning of period

$ 128

$ 57

^[1],[2]

Charged to costs and expenses

0

45

0

Charge to other accounts

0

Deductions

$ 71

(26)

0

Balance at end of period

$ 76

$ 57

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