Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Mar. 09, 2020	Jun. 18, 2019
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	Del Taco Restaurants, Inc.
Entity Central Index Key	0001585583
Current Fiscal Year End Date	--12-31
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		37,080,960
Entity Public Float			$ 365,160,000
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Current assets:
Cash and cash equivalents	$ 1,421	$ 7,153
Accounts and other receivables, net	3,580	3,167
Inventories	3,123	2,932
Prepaid expenses and other current assets	2,289	4,935
Assets held for sale	8,411	14,794
Total current assets	18,824	32,981
Property and equipment, net	156,921	161,429
Operating Lease, Right-of-Use Asset	258,278	0
Goodwill	192,739	321,531
Trademarks	220,300	220,300
Intangible assets, net	10,827	18,507
Other assets, net	4,568	4,208
Total assets	862,457	758,956
Current liabilities:
Accounts payable	19,652	19,877
Other accrued liabilities	34,577	34,785
Current portion of capital lease obligations and deemed landlord financing liabilities	220	1,033
Operating Lease, Liability, Current	17,848	0
Total current liabilities	72,297	55,695
Long-term debt, finance lease obligations, other debt and deemed landlord financing liabilities, excluding current portion, net	144,581	178,664
Operating Lease, Liability	257,361	0
Deferred income taxes	69,510	69,471
Other non-current liabilities	16,601	32,852
Total liabilities	560,350	336,682
Commitments and contingencies
Shareholders’ equity:
Preferred Stock, Value, Issued	0	0
Common Stock, Value, Issued	4	4
Additional paid-in capital	333,379	336,941
Accumulated other comprehensive (loss) income	(52)	180
(Accumulated deficit) retained earnings	(31,224)	85,149
Total shareholders’ equity	302,107	422,274
Total liabilities and shareholders’ equity	$ 862,457	$ 758,956

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Jan. 01, 2019
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)	37,059,202	37,305,342
Common stock, shares outstanding (in shares)	37,059,202	37,305,342

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Revenue:
Total revenue	$ 512,951,000	$ 505,490,000	$ 471,456,000
Restaurant operating expenses:
Labor and related expenses	156,095,000	151,954,000	145,012,000
Occupancy and other operating expenses	105,376,000	97,745,000	92,825,000
General and administrative	43,877,000	43,773,000	38,154,000
Franchise advertising expenses	14,516,000	13,300,000	0
Depreciation and amortization	25,488,000	25,794,000	23,362,000
Occupancy and other - franchise subleases and other	4,463,000	3,167,000	2,608,000
Pre-opening costs	1,650,000	1,584,000	1,591,000
Goodwill, Impaired, Accumulated Impairment Loss	118,250,000
Goodwill, Impairment Loss	118,250,000	0	0
Impairment of long-lived assets	7,159,000	3,861,000	0
Restaurant closure charges, net	2,961,000	394,000	191,000
Loss on disposal of assets and adjustments to assets held for sale, net	9,448,000	1,012,000	1,075,000
Total operating expenses	619,994,000	471,457,000	430,209,000
(Loss) income from operations	(107,043,000)	34,033,000	41,247,000
Other expense (income), net:
Interest expense	7,235,000	9,075,000	7,200,000
Other income	(364,000)	(660,000)	0
Total other expense, net	6,871,000	8,415,000	7,200,000
(Loss) income from operations before provision (benefit) for income taxes	(113,914,000)	25,618,000	34,047,000
Provision (benefit) for income taxes	4,371,000	6,659,000	(15,824,000)
Net (loss) income	(118,285,000)	18,959,000	49,871,000
Other comprehensive (loss) income:
Change in fair value of interest rate cap, net of tax	(364,000)	122,000	(162,000)
Reclassification of interest rate cap amortization included in net income, net of tax	132,000	44,000	4,000
Total other comprehensive (loss) income, net	(232,000)	166,000	(158,000)
Comprehensive (loss) income	$ (118,517,000)	$ 19,125,000	$ 49,713,000
(Loss) earnings per share:
Basic (in dollars per share)	$ (3.20)	$ 0.50	$ 1.29
Diluted (in dollars per share)	$ (3.20)	$ 0.49	$ 1.25
Weighted-average shares outstanding:
Basic (in shares)	37,018,445	38,106,057	38,689,508
Diluted (in shares)	37,018,445	38,683,959	39,949,907
Company restaurant sales
Revenue:
Revenue	$ 473,991,000	$ 471,193,000	$ 452,148,000
Franchise revenue
Revenue:
Revenue	19,002,000	17,569,000	16,464,000
Franchise advertising contributions
Revenue:
Revenue	14,516,000	13,300,000	0
Franchise sublease and other income
Revenue:
Revenue	5,442,000	3,428,000	2,844,000
Food and paper costs
Restaurant operating expenses:
Food and paper costs	$ 130,711,000	$ 128,873,000	$ 125,391,000

Consolidated Statements of Shareholders' Equity - USD ($)	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings (Accumulated Deficit)
Beginning Balance at Jan. 03, 2017	$ 377,333,000	$ 4,000	$ 360,131,000	$ 172,000	$ 17,026,000
Beginning Balance, Shares at Jan. 03, 2017		39,153,503
Net income (loss)	49,871,000				49,871,000
Stock-based compensation	4,876,000	$ 0	4,876,000
Common stock of Del Taco Restaurants, Inc. released from possible redemption, Shares		0
Other comprehensive income (loss), net of tax	(158,000)			(158,000)
Comprehensive income (loss)	49,713,000
Stock-based compensation	99,000		99,000
Tax withholdings on restricted stock vesting	(1,923,000)		(1,923,000)
Restricted stock awards vested, shares		257,518
Exercise of stock options, shares		9,750
Repurchase of common stock, shares		(986,497)
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
Net income (loss)	3,229,000
Beginning Balance at Jan. 02, 2018	416,249,000	$ 4,000	349,334,000	14,000	66,897,000
Beginning Balance, Shares at Jan. 02, 2018		38,434,274
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
Adjustment for adoption of new lease standard, net of tax					(707,000)
Net income (loss)	1,425,000
Beginning Balance at Jan. 01, 2019	422,274,000	$ 4,000	336,941,000	180,000	85,149,000
Beginning Balance, Shares at Jan. 01, 2019		37,305,342
Net income (loss)	(118,285,000)				(118,285,000)
Other comprehensive income (loss), net of tax	(232,000)			(232,000)
Comprehensive income (loss)	(118,517,000)
Stock-based compensation	6,293,000		6,293,000
Tax withholdings on restricted stock vesting	(2,602,000)		(2,602,000)
Restricted stock awards vested, shares		316,341
Restricted stock awards vested, value		$ 0
Exercise of stock options, shares		12,000
Exercise of stock options, value	120,000		120,000
Repurchase of common stock, shares		(574,481)
Stock Repurchased During Period, Value		$ 0
Repurchase of common stock, value	(7,373,000)		(7,373,000)
Ending Balance at Dec. 31, 2019	$ 302,107,000	$ 4,000	$ 333,379,000	$ (52,000)	(31,224,000)
Ending Balance, Shares at Dec. 31, 2019		37,059,202
Adjustment for adoption of new lease standard, net of tax					$ 1,912,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Operating activities
Net (loss) income	$ (118,285)	$ 18,959	$ 49,871
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Allowance for doubtful accounts	41	45	0
Depreciation and amortization	25,488	25,794	23,362
Amortization of favorable and unfavorable lease assets and liabilities, net	0	(767)	(809)
Amortization of deferred financing costs, debt discount and interest rate cap	550	445	389
Operating Lease, Right-of-Use Asset, Amortization	21,681	0	0
Stock-based compensation	6,293	6,079	4,876
Goodwill, Impairment Loss	118,250	0	0
Impairment of long-lived assets	7,159	3,861	0
Deferred income taxes	(583)	1,097	(22,594)
Loss on disposal of assets and adjustments to assets held for sale, net	9,448	1,012	1,075
Restaurant closure charges	0	(449)	(379)
Other Noncash Income	0	(523)	0
Changes in operating assets and liabilities:
Accounts and other receivables, net	(349)	616	313
Inventories	(191)	(220)	6
Prepaid expenses and other current assets	(732)	1,949	(2,580)
Other assets	(273)	(125)	(162)
Accounts payable	(271)	2	2,332
Increase (Decrease) in Operating Lease Liabilities	(18,846)	0	0
Other accrued liabilities	(1,308)	(488)	(1,526)
Other non-current liabilities	973	3,647	2,856
Net cash provided by operating activities	49,045	61,832	57,788
Investing activities
Purchases of property and equipment	(43,696)	(48,032)	(50,627)
Proceeds from disposal of property and equipment, net	14,107	1,323	9,907
Purchases of other assets	(2,039)	(1,474)	(1,033)
Acquisition of franchisees	(4,832)	(1,841)	(1,128)
Proceeds from Divestiture of Businesses	7,187	0	2,192
Net cash used in investing activities	(29,273)	(50,024)	(40,689)
Financing activities
Proceeds from deemed landlord financing liabilities	0	2,675	3,925
Repurchase of common stock and warrants	(7,373)	(16,316)	(13,849)
Payment of tax withholding related to restricted stock vesting, option exercises and distribution of restricted stock units	(2,602)	(2,378)	(1,923)
Payments on finance leases, other debt and deemed landlord financing	(635)	(1,417)	(1,587)
Proceeds from revolving credit facility	41,000	31,000	31,500
Payments on revolving credit facility	(55,000)	(25,000)	(37,500)
Payments of Debt Issuance Costs	(1,014)	0	0
Proceeds from Stock Options Exercised	120	222	99
Net cash used in financing activities	(25,504)	(11,214)	(19,335)
(Decrease) increase in cash and cash equivalents	(5,732)	594	(2,236)
Cash and cash equivalents at beginning of period	7,153	6,559	8,795
Cash and cash equivalents at end of period	1,421	7,153	6,559
Supplemental cash flow information:
Interest Paid, Excluding Capitalized Interest, Operating Activities	6,919	8,823	6,873
Cash paid during the period for income taxes, net of tax refunds	3,856	3,061	9,441
Supplemental schedule of non-cash activities:
Accrued property and equipment purchases	5,729	5,691	5,134
Write-offs against bad debt reserves	30	26	0
Amortization of interest rate cap into net income, net of tax	132	44	4
Change in other asset for fair value of interest rate cap recorded to other comprehensive (loss) income, net of tax	(364)	122	(162)
Operating Lease, Right-of-Use Asset	298,942	0	0
Finance Lease, Right-of-Use Asset	1,185	0	0
Impairment of Operating Lease, Right-of-Use Asset	$ 3,116	$ 0	$ 0

Description of Business	12 Months Ended
Description of Business	Dec. 31, 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 is 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 December 31, 2019, there were 300 company-operated and 296 franchise-operated Del Taco restaurants located in 15 states, including one franchise-operated unit in Guam. 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. 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

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The Company uses a fifty-two or fifty-three week fiscal year ending on the Tuesday closest to December 31. Fiscal years 2019, 2018 and 2017 are 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. 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 2019, the Company’s financial statements reflect the fifty-two weeks ended December 31, 2019. 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.

Effective January 2, 2019 (the first day of fiscal year 2019), the Company adopted the requirements of Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as discussed in Note 2, using the modified retrospective method of transition. Current year results have been prepared in accordance with the new standard.

Certain reclassifications have been made to prior period financial statements to conform to the current period presentation.

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

We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers, which we adopted on January 3, 2018.

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 as revenue over the term of the renewal agreement. Development fees and franchise fees are 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 lesser 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.

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 December 31, 2019 is as follows (in thousands):



FY 2020	$	165
FY 2021	159
FY 2022	159
FY 2023	152
FY 2024	150
Thereafter	1,746
Total deferred franchise fees	$	2,531

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.

Franchise sublease and other income consists of rental income received from franchisees related to properties where we have subleased a leasehold interest to the franchisee but remain primarily liable to the landlord. The related expenses are recognized in Occupancy and Other - Franchise Subleases and Other. Franchise sublease income also includes rental income for closed restaurant properties where we have subleased to a third party but remain primarily liable to the landlord. The related expenses are recognized in Restaurant Closure Charges, net. Franchise other income also includes information technology hardware such as point of sale equipment, tables, 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 $3.1 million and $2.8 million as of December 31, 2019 and January 1, 2019, respectively. The current portion of the deferred gift card income is included in other accrued liabilities on the consolidated balance sheets and totaled $1.6 million and $1.5 million as of December 31, 2019 and January 1, 2019, respectively. The non-current portion of the deferred gift card income was $1.5 million and $1.3 million as December 31, 2019 and January 1, 2019, 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 December 31, 2019 and January 1, 2019.

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 $0.3 million and $0.7 million as of December 31, 2019 and January 1, 2019, 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 December 31, 2019 and January 1, 2019, respectively.

Inventories

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

Assets Held for Sale

Assets held for sale include the net book value of property and equipment and goodwill for Company-operated restaurants that the Company plans to sell within the next year to new or existing franchisees, as well as the net book value of owned property that the Company plans to sell and lease back within the next year. Long-lived assets that meet the held for sale criteria are held for sale and reported at the lower of their carrying value or fair value, less estimated costs to sell. Gains and losses realized on sale-leaseback transactions are recognized immediately. 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.

Property and Equipment

Property and equipment includes land, buildings, leasehold improvements, restaurant and other equipment, restaurant property leased to others and buildings under finance 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 finance 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 $22.7 million for the fifty-two weeks ended December 31, 2019, $23.1 million for the fifty-two weeks ended January 1, 2019 and $21.0 million for the fifty-two weeks ended January 2, 2018. These amounts include $0.5 million for the fifty-two weeks ended December 31, 2019 related to buildings under finance leases, as well as $0.9 million and 1.2 million for the fifty-two weeks ended January 1, 2019 and January 2, 2018, respectively, related to buildings under capital leases. Accumulated depreciation and amortization associated with property and equipment includes $0.3 million related to buildings under finance leases as of December 31, 2019, as well as $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 $1.8 million for the fifty-two weeks ended December 31, 2019 and $1.6 million for both the fifty-two weeks ended January 1, 2019 and fifty-two weeks ended January 2, 2018. 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 December 31, 2019, the fifty-two weeks ended January 1, 2019, and the fifty-two weeks ended January 2, 2018.

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 (loss) 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 the carrying amount, the Company performs a quantitative impairment test. 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. As the Company adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, in 2019, the Company recognizes goodwill impairment for the carrying amount in excess of fair value. The Company also 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 during the fourth quarter of 2019, the Company noted its stock price experienced a sustained decrease beginning in October 2019. As such, it bypassed the qualitative assessment and performed a quantitative assessment using both the discounted cash flow method and guideline public company method, weighting both equally in the assessment. Based on this quantitative analysis, it was determined that the fair value of the Company was less than its carrying value. The Company recognized an impairment charge of $118.3 million, equal to the excess of the carrying amount above fair value. The impairment charge was recorded in impairment of goodwill on the consolidated statements of comprehensive (loss) income.

During the fourth quarter of 2019, the Company also performed a quantitative impairment analysis of its indefinite-lived trademark using the relief from royalty method. Based on this analysis, the fair value of the Company's trademark was greater than its carrying value, and as such, no impairment was needed.

Intangible Assets, Net

Intangible assets primarily include franchise rights, reacquired franchise rights and favorable lease assets. 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 (loss) income over the remaining term of the franchise agreements. Reacquired franchise rights, which represent the fair value of reacquired rights that were previously granted to franchisees to use Del Taco's trade name under a franchise agreement, are amortized on a straight-line basis to depreciation and amortization in the consolidated statements of comprehensive (loss) income over the term of the former franchise agreement. 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. In connection with the adoption of Topic 842, the Company reclassified its favorable lease assets to operating lease right-of-use assets as discussed in further detail in Note 6. As such, intangible assets did not include favorable lease assets as of December 31, 2019.

Other Assets, Net

Other assets, net consist of security deposits, straight-line rental income related to subleases 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 $2.9 million and $2.3 million as of December 31, 2019 and January 1, 2019, respectively, and is included in other assets, net in the consolidated balance sheets. Capitalized software costs totaled $2.0 million for the fifty-two weeks ended December 31, 2019, $1.5 million for the fifty-two weeks ended January 1, 2019 and $1.0 million for the fifty-two weeks ended January 2, 2018. Amortization expenses totaled $1.4 million for the fifty-two weeks ended December 31, 2019, $1.2 million for the fifty-two weeks ended January 1, 2019 and $1.0 million for the fifty-two weeks ended January 2, 2018.

Long-Lived Assets

Long-lived assets, including property and equipment and definite-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 December 31, 2019, the Company evaluated certain restaurants having indicators of impairment based on operating performance and recorded an impairment charge totaling $7.2 million related to seven restaurants. During the fifty-two weeks ended January 1, 2019, the Company 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, 2018.

Rent Expense

The Company has non-cancelable lease agreements for certain restaurant land and buildings under terms ranging up to 50 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 finance lease. Certain leases provide for contingent rentals based on percentages of net restaurant sales or have other provisions obligating the Company to pay related property taxes and certain other expenses. Contingent rentals are generally based on restaurant 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 through 2018 prior to the adoption of Topic 842. In connection with the adoption of Topic 842 in 2019, the Company reclassified these deferred rent liabilities to the operating lease right-of-use asset. In addition, the Company subleases certain buildings to franchisees and other unrelated third parties, which are classified as operating leases.

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 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. The Company is not the primary obligor for its workers' compensation insurance policy, so therefore, the Company records a liability up to its deductible exposure.

Insurance Recovery Assets

In the normal course of its business, the Company incurs losses, such as those resulting from property damage and legal actions, that are covered by the Company's insurance policies. The Company records insurance recovery assets for losses it is entitled to recover under its insurance policies and when such recovery is probable. In determining whether a recovery is probable, the Company considers whether the Company has exceeded its deductible, the limits of its insurance policies and subsequent payment of claims.

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 $0.6 million and $0.7 million at December 31, 2019 and January 1, 2019, respectively. Company-operated restaurants contribute to the advertising fund on the same basis as franchise-operated restaurants. At December 31, 2019 and January 1, 2019, the Company had an additional $0.8 million and $0.9 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 (loss) income for Company expenses and included in franchise advertising expenses in the consolidated statements of comprehensive (loss) income for franchise expenses. Advertising expenses for the Company were $18.8 million for the fifty-two weeks ended December 31, 2019, $19.0 million for the fifty-two weeks ended January 1, 2019 and $18.1 million for the fifty-two weeks ended January 2, 2018.

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 $1.7 million for the fifty-two weeks ended December 31, 2019, and $1.6 million for both the fifty-two weeks ended January 1, 2019 and the fifty-two weeks ended January 2, 2018.

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. Prior to the adoption of Topic 842, 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. After the adoption of Topic 842, these restaurant closure obligations primarily consist of rent, property tax and common area maintenance on closed restaurant properties and the present value of non-lease executory costs for closed restaurant properties, net of estimated sublease income. Changes to the estimated liability for future non-lease executory costs based on new facts and circumstances are considered to be a change in estimate and are recorded prospectively. The change resulting from the adoption of Topic 842 led to an increase in restaurant closure charges for the fifty-two weeks ended December 31, 2019 as compared to the fifty-two weeks ended January 1, 2019.

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 (Loss) Income

Comprehensive (loss) income 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 (loss) income, 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 that time, at $3.75 per warrant, representing a 5% discount from the closing price of $3.95 per warrant on the transaction date. The chief executive officer and managing member of the general partner of PW Acquisitions, LP was a member of the Company's Board of Directors at the time of the transaction.

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 December 31, 2019, Del Taco operated and franchised a total of 372 restaurants in California (233 company-operated and 139 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 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. There was no material impact on the Company's consolidated financial statements and related disclosures as a result of adopting this standard.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), along with related clarifications and improvements. This guidance results in the simplification of the goodwill impairment test. ASU 2017-04 eliminates the second step of the two-step goodwill impairment test, which required entities to calculate the implied fair value of goodwill in order to measure goodwill impairment. Instead, goodwill impairment is measured based on the excess of a reporting unit's carrying value over its fair value. The standard is effective for fiscal years beginning after December 15, 2019; however, the Company early adopted the standard during the fifty-two weeks ended December 31, 2019. Refer to Note 6 for further discussion of the impact on the Company's consolidated financial statements as a result of adopting this standard.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), along with related clarifications and improvements. This guidance results in key changes to lease accounting and aims 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 lease payments, and a corresponding right-of-use asset on the balance sheet. The Company adopted the requirements of the new lease standard effective January 2, 2019, the first day of fiscal year 2019, electing 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. During the process of adoption, the Company made the following elections:


•	The Company elected the package of practical expedients which allowed the Company to not reassess:


•	Whether existing or expired contracts contain leases under the new definition of a lease;


•	Lease classification for existing or expired leases; and


•	Initial direct costs for any expired or existing leases to determine if they would qualify for capitalization under ASC 842.


•	The Company did not elect the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets.


•	The Company did not elect the land easement practical expedient, which permits an entity to continue applying its current policy for accounting for land easements that existed as of, or expired before, the effective date of Topic 842.


•	The Company elected to make the accounting policy election for short-term leases, permitting the Company to not apply the recognition requirements of this standard to short-term leases with terms of 12 months or less.

Upon adoption of ASU 2016-02, the Company recorded operating lease right-of-use assets and operating lease liabilities and derecognized all landlord funded assets, deemed landlord financing liabilities, deferred rent liabilities and favorable lease assets and unfavorable lease liabilities upon transition. Upon adoption, the Company recorded operating lease liabilities of approximately $230.6 million based on the present value of the remaining rental payments using discount rates as of the effective date. In addition, the Company recorded corresponding operating lease right-of-use assets of approximately $218.9 million, calculated as the initial amount of the Company's operating lease liabilities adjusted for prepaid and deferred rent, unamortized favorable lease assets and unamortized unfavorable lease liabilities, liabilities associated with lease termination costs and impairment of right-of-use assets recognized in retained earnings as of January 1, 2019. At the beginning of the period of adoption, the Company recorded the cumulative effect of adoption of $1.9 million to retained earnings. Beginning 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 impact of the adoption of ASC 2016-02 on the consolidated balance sheet was as follows:



	January 1, 2019		Effect of Adoption of Topic 842 (Leases)			January 2, 2019
Assets
Current assets:
Cash and cash equivalents	$	7,153	$	—		$	7,153
Accounts and other receivables, net	3,167		—			3,167
Inventories	2,932		—			2,932
Prepaid expenses and other current assets	4,935		(2,564		)	2,371
Assets held for sale	14,794		—			14,794
Total current assets	32,981		(2,564		)	30,417
Property and equipment, net	161,429		(13,839		)	147,590
Operating lease right-of-use assets	—		218,855			218,855
Goodwill	321,531		—			321,531
Trademarks	220,300		—			220,300
Intangible assets, net	18,507		(7,576		)	10,931
Other assets, net	4,208		—			4,208
Total assets	$	758,956	$	194,876		$	953,832
Liabilities and shareholders' equity
Current liabilities:
Accounts payable	$	19,877	$	—		$	19,877
Other accrued liabilities	34,785		(425		)	34,360
Current portion of finance lease obligations and deemed landlord finacing liabilities	1,033		(547		)	486
Current portion of operating lease liabilities	—		17,303			17,303
Total current liabilities	55,695		16,331			72,026
Long-term debt, finance lease obligations and deemed landlord financing liabilities, excluding current portion, net	178,664		(19,040		)	159,624
Operating lease liabilities	—		213,313			213,313
Deferred income taxes	69,471		708			70,179
Other non-current liabilities	32,852		(18,348		)	14,504
Total liabilities	336,682		192,964			529,646
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		1,912			87,061
Total shareholders' equity	422,274		1,912			424,186
Total liabilities and shareholders' equity	$	758,956	$	194,876		$	953,832

Recently Issued Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Statements - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard is effective for fiscal years beginning after December 15, 2019. The Company does not expect the adoption of ASU 2016-13 to have a material impact on its consolidated financial statements.

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 December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing the following exceptions: (1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or gain from other items; (2) exception to the requirement to recognize a deferred tax liability for equity method investments when a subsidiary becomes an equity method investment; and (3) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Furthermore, ASU 2019-12 simplifies the accounting for income taxes by doing the following: (1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; (2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; (3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and (4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial statements.

Restaurant Closure and Other Related Charges

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restaurant Closure and Other Related Charges

Restaurant Closure Charges

Impairment of Long-Lived Assets

The Company evaluates long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a triggering event to have occurred related to a specific restaurant if the restaurant’s cash flows are less than a minimum threshold. 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 the discounted value of the estimated cash flows associated with the respective restaurant or agreement, using Level 3 inputs. The impairment charges represent the excess of the aggregate carrying value of a restaurant's operating lease right-of-use asset, furniture, fixtures and equipment and leasehold improvements over its estimated fair value. Impairment charges are allocated to a restaurant's operating lease right-of-use assets, furniture, fixtures and equipment and leasehold improvements on a pro rata basis based on the respective assets' carrying values.

In connection with the adoption of Topic 842, the Company evaluated the operating lease right-of-use assets for impairment, indicating the carrying amount of the operating lease assets for certain restaurants may not be recoverable, and recorded an impairment charge totaling $3.1 million at January 2, 2019 based on the estimates of future recoverable cash flows.

During the fifty-two weeks ended December 31, 2019, the Company evaluated certain restaurants having indicators of impairment based on operating performance and recorded an impairment charge totaling $7.2 million related to seven restaurants. The Company wrote-off a portion of the operating lease right-of-use assets, furniture, fixtures and equipment and leasehold improvements based on the estimate of future recoverable cash flows. During the fifty-two weeks ended January 1, 2019, the Company evaluated certain restaurants that had indicators of impairment based on operating performance and recorded an impairment charge totaling $3.9 million related to five restaurants. The Company wrote-off the value of furniture, fixtures and equipment and leasehold improvements based on the estimate of future recoverable cash flows. No impairment charges were recorded in continuing operations in the accompanying consolidated statements of comprehensive (loss) income for any other periods presented.

Restaurant Closure Charges, Net

At December 31, 2019 and January 1, 2019, the restaurant closure liability was $0.4 million and $2.4 million, respectively. The details of the restaurant closure activities are discussed below.

Restaurant Closures and Lease Reserves

At January 1, 2019, the restaurant closure liability balance was $0.3 million related to restaurants closures prior to 2015. During the fifty-two weeks ended December 31, 2019, in connection with the adoption of Topic 842, the Company reclassified the $0.3 million restaurant closure liability to offset the respective operating lease right-of-use assets.

Restaurant Closure and Other Related Charges for 12 Underperforming Restaurants

During the fourth quarter of 2015, the Company closed 12 company-operated restaurants. During the fifty-two weeks ended December 31, 2019, in connection with the adoption of Topic 842, the Company reclassified approximately $1.9 million of the lease related closure liability to offset the respective operating lease right-of-use assets. A summary of the restaurant closure liability activity, which relates to contract termination costs, for these 12 closed restaurants consisted of the following (in thousands):



	Total
Balance at January 3, 2017	$	1,773
Charges for accretion in current period	70
Cash payments	(376		)
Adjustment to estimates based on current activity	144
Balance at January 2, 2018	1,611
Charges for accretion in current period	61
Cash payments	(327		)
Adjustment to estimates based on current activity	747
Balance at January 1, 2019	2,092
Reclassified to operating lease right-of-use assets	(1,900		)
Cash payments	(263		)
Adjustment to estimates based on current activity	508
Balance at December 31, 2019	$	437

The current portion of the restaurant closure liability is $0.1 million and $0.5 million at December 31, 2019 and January 1, 2019, respectively, and is included in other accrued liabilities in the consolidated balance sheets. The non-current portion of the restaurant closure liability is $0.3 million and $1.6 million at December 31, 2019 and January 1, 2019, respectively, and is included in other non-current liabilities in the consolidated balance sheets. The restaurant closure liability is expected to be settled in 2021.

Property and Equipment, Net

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net at December 31, 2019 and January 1, 2019 consisted of the following, excluding amounts related to properties classified as held for sale (in thousands):



	December 31, 2019			January 1, 2019
Land	$	1,927		$	1,929
Buildings	4,569			4,335
Restaurant and other equipment	92,025			87,767
Leasehold improvements	116,177			121,409
Buildings under finance leases	871			3,390
Restaurant property leased to others	10,899			991
Construction-in-progress	11,680			10,697
	238,148			230,518
Less: Accumulated depreciation	(81,227		)	(69,089		)
Property and equipment, net	$	156,921		$	161,429

Summary of Refranchsing and Franchise Acquisitions (Notes)

12 Months Ended

Dec. 31, 2019

Franchise Acquisitions [Abstract]

Refranchising and Franchise Acquisitions

Summary of Refranchising, Assets Held for Sale 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 sublease assets/liabilities with a corresponding offset to the gain or loss on the sale of the company-operated restaurants. Sublease assets represent subleases with stated rent above comparable market rents. Sublease assets are amortized to sublease income over the term of the related sublease. Sublease liabilities represent subleases with stated rent below comparable market rents and are amortized to sublease income over the term of the related sublease. Both sublease assets and sublease liabilities arise from the sale of company-operated restaurants to franchisees. The cash consideration per restaurant for franchise fees is consistent with the amounts stated in the related franchise agreements, which are also charged for separate standalone arrangements. Therefore, the Company initially defers and subsequently recognizes the franchise fees over the term of the franchise agreement. Future royalty income is also recognized in revenue as earned.

The Company sold 31 company-operated restaurants to franchisees during the fifty-two weeks ended December 31, 2019 and 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. The following table provides detail of the related gain (loss) recognized during the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018 (dollars in thousands):



	52 Weeks Ended December 31, 2019			52 Weeks Ended January 1, 2019		52 Weeks Ended January 2, 2018
Company-operated restaurants sold to franchisees	31			—		5

Proceeds from the sale of company-operated restaurants, net of selling costs	$	7,310		$	—	$	2,192
Net assets sold (primarily furniture, fixtures and equipment)	(4,952		)	—		(1,261		)
Goodwill related to the company-operated restaurants sold to franchisees	(6,078		)	—		(247		)
Allocation to deferred franchise fees	(771		)	—		—
Sublease liabilities, net ^(a)	(50		)	—		(548		)
Other direct costs	(123		)	—		(5		)
(Loss) gain on sale of company-operated restaurants ^(b)	$	(4,664	)	$	—	$	131

^(a) During the fifty-two weeks ended December 31, 2019, the Company recorded sublease assets of $1.2 million and sublease liabilities of $1.3 million. During the fifty-two weeks ended January 2, 2018, the Company recorded sublease assets of $0.1 million and sublease liabilities of $0.6 million.

^(b) Included in loss on disposal of assets and adjustments to assets held for sale, net on the consolidated statements of comprehensive (loss) income.

Assets Held for Sale

Assets held for sale include the net book value of property and equipment for Company-operated restaurants that the Company plans to sell within the next year to new or existing franchisees. Long-lived assets that meet the criteria are held for sale and reported at the lower of their carrying value or fair value less estimated cost to sell.

During the fifty-two weeks ended December 31, 2019, the Company reclassified approximately $6.8 million of property and equipment and approximately $14.8 million of goodwill related to the Company-operated restaurants the Company plans to sell to assets held for sale, and also recorded an $8.7 million adjustment to the assets held for sale in order to record the assets held for sale at their estimated net realizable value, net of estimated direct selling costs and estimated sublease assets and liabilities. The estimated fair value of assets held for sale is based upon Level 2 inputs, which include an asset purchase agreement and negotiated or proposed letters of intent. During the fourth quarter of fiscal 2019, the Company sold 18 restaurants that had been reclassified to assets held for sale during the fifty-two weeks ended December 31, 2019, decreasing the asset held for sale balance by $4.5 million (see the discussion above under Refranchising for further information).

During the fifty-two weeks ended December 31, 2019, the Company entered into three sale-leaseback arrangements with third party private investors, with two arrangements completed during the first quarter of fiscal 2019 and one during the second quarter of fiscal 2019. 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 $12.7 million. Under two of the arrangements, the Company sold the land and buildings related to restaurants constructed during 2018 and leased them back for a term of 20 years. Under one of the arrangements, the Company sold the land related to a restaurant constructed during 2018 and leased it back for a term of 20 years. The sale of these properties resulted in a loss of approximately $0.2 million which is included in loss on disposal of assets and adjustments to assets held for sale, net in the consolidated statements of comprehensive (loss) income. The assets sold were included in assets held for sale as of January 1, 2019.

Assets held for sale at December 31, 2019 and January 1, 2019 consisted of the following (in thousands):



	December 31, 2019		January 1, 2019
Other property and equipment held for sale	$	4,025	$	2,023
Goodwill ^(a)	4,386		—
Assets held for sale and leaseback	—		12,771
Assets held for sale	$	8,411	$	14,794

^(a) During the fifty-two weeks ended December 31, 2019, the Company reclassified $14.8 million of goodwill to assets held for sale, including $6.1 million related to 18 stores that were subsequently sold during the fifty-two weeks ended December 31, 2019. The Company also recorded an $8.7 million adjustment to the goodwill component of assets held for sale to record the assets at their estimated net realizable value and relieved $1.7 million from the goodwill component of assets held for sale upon the sale of 18 stores that were classified as held for sale.

Franchise Acquisitions

The Company acquired four franchise-operated restaurants during the fifty-two weeks ended December 31, 2019, three franchise-operated restaurant during the fifty-two weeks ended January 1, 2019 and one franchise-operated restaurants during the fifty-two weeks ended January 2, 2018. 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 the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018 (dollars in thousands):



	52 Weeks Ended December 31, 2019			52 Weeks Ended January 1, 2019		52 Weeks Ended January 2, 2018
Franchise-operated restaurants acquired from franchisees	4			3		1

Goodwill	$	4,302		$	893	$	860
Property and equipment	660			798		360
Reacquired franchise rights	—			150		—
Operating lease right-of-use assets	2,006			—		—
Operating lease liabilities	(2,006		)	—		—
Unfavorable lease liabilities ^(a)	(130		)	—		(85		)
Liabilities assumed	—			—		(7		)
Total Consideration	$	4,832		$	1,841	$	1,128

^(a) Unfavorable lease liabilities of $0.1 million for the fifty-two weeks ended December 31, 2019 were recorded as an adjustment to the respective operating lease right-of-use asset.

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

Dec. 31, 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 December 31, 2019 are as follows (in thousands):



	Goodwill
Balance as of January 1, 2019	$	321,531
Acquisition of franchise-operated restaurants	4,302
Sale of company-operated restaurants to franchisees	(83		)
Goodwill reclassified to held for sale	(14,761		)
Impairment of goodwill	(118,250		)
Balance as of December 31, 2019	$	192,739

The decrease in goodwill was due primarily to an impairment of $118.3 million as described in more detail below and the reclassification of goodwill to held for sale of $14.8 million related to the Company's refranchising plans during the fifty-two weeks ended December 31, 2019 as described in more detail in Note 5.

During the fourth quarter of fiscal 2019, the Company experienced a sustained decline in its stock price, which is an indicator of impairment. As such, the Company performed a quantitative goodwill impairment assessment using both the discounted cash flow method and guideline public company method to determine the fair value of its reporting unit. Significant assumptions and estimates used in determining fair value include future revenues, operating costs, working capital changes, capital expenditures, a discount rate that approximates the Company’s weighted average cost of capital and a selection of comparable companies. Based on the quantitative assessment, the Company determined that the fair value of its reporting unit was less than its carrying value. As the Company early adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, during the fourth quarter of fiscal 2019, it recognized a goodwill impairment charge of $118.3 million, equal to the excess of the reporting unit’s carrying value above fair value. The impairment charge was recorded in impairment of goodwill on the consolidated statements of comprehensive (loss) income.

The carrying value of trademarks was $220.3 million at both December 31, 2019 and January 1, 2019.

The Company’s other intangible assets at December 31, 2019 and January 1, 2019 consisted of the following (in thousands):



	December 31, 2019							January 1, 2019
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Favorable lease assets	$	—	$	—		$	—	$	13,118	$	(5,542	)	$	7,576
Sublease assets	1,340		(82		)	1,258		—		—			—
Franchise rights	14,298		(5,465		)	8,833		15,032		(4,411		)	10,621
Reacquired franchise rights	943		(207		)	736		417		(107		)	310
Total amortized other intangible assets	$	16,581	$	(5,754	)	$	10,827	$	28,567	$	(10,060	)	$	18,507

Favorable lease assets are related to below-market leasing arrangements. In connection with the adoption of Topic 842, the Company reclassified $7.6 million of favorable lease assets, net to operating lease right-of-use assets (see Notes 2 and 15 for more information) as of January 2, 2019.

During the fifty-two weeks ended December 31, 2019, the Company recorded $1.2 million of sublease assets in connection with the sale of company-operated restaurants (see Note 5 for more information).

During the fifty-two weeks ended December 31, 2019, the Company wrote-off $0.1 million of franchise rights associated with the closure of three franchise operated restaurants, and the Company reclassified $0.5 million of franchise rights as reacquired franchise rights from the acquisition of four franchise locations. 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.

Sublease assets are amortized using the straight-line method over the remaining life of the sublease. The weighted-average amortization period as of December 31, 2019 for sublease assets was 14.3 years. 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 period as of December 31, 2019 for franchise rights was 12.9 years. Reacquired franchise rights are amortized using the straight-line method over the remaining life of the former franchise agreement. The weighted-average amortization period as of December 31, 2019 for reacquired franchise rights was 9.8 years.

Amortization expense for amortizable intangible assets and other assets totaled $2.8 million, $3.1 million and $3.3 million for the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively. Amortization for sublease assets totaled $82,000, $12,000 and $5,000 for the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively. Amortization expense for franchise rights totaled $1.3 million, $1.4 million and $1.3 million for the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively. Amortization expense for reacquired franchise rights totaled $101,000, $58,000 and $40,000 for the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively. The estimated future amortization for sublease assets, franchise rights and reacquired franchise rights for the next five fiscal years is as follows (in thousands):



	Sublease Assets		Franchise Rights		Reacquired Franchise Rights
2020	$	95	$	1,137	$	105
2021	95		1,027		101
2022	95		930		78
2023	92		845		67
2024	92		770		66

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities

Debt, Obligations Under Finance Leases and Deemed Landlord Financing Liabilities

The Company’s long-term debt, finance lease obligations, other debt and deemed landlord financing liabilities at December 31, 2019 and January 1, 2019 consisted of the following (in thousands):



	December 31, 2019		January 1, 2019
2015 Senior Credit Facility, as amended, net of unamortized debt discount of $231 and $459 and deferred financing costs of $1,038 and $155 at December 31, 2019 and January 1, 2019, respectively	$	143,731	$	158,386
Total outstanding indebtedness	143,731		158,386
Obligations under finance leases, other debt and deemed landlord financing liabilities	1,070		21,311
Total debt, net	144,801		179,697
Less: amounts due within one year	220		1,033
Total amounts due after one year, net	$	144,581	$	178,664

At December 31, 2019 and January 1, 2019, the Company assessed the amounts recorded under the 2015 Senior Credit Facility, as amended, and determined that such amounts approximated fair value.

2015 Senior Credit Facility

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

Prior to September 2019, at the Company’s option, loans under the Senior Credit Facility bore 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 was calculated as the highest of (a) the Federal Funds Rate plus 0.50%, (b) the published Bank of America prime rate, and (c) LIBOR plus 1.00%. For LIBOR loans, the applicable margin was in the range of 1.50% to 2.50%, and for base rate loans the applicable margin was in the range of 0.50% to 1.50%. The Senior Credit Facility capacity used to support letters of credit incurred fees equal to the applicable margin of 1.75%. The Senior Credit Facility unused commitment was 0.20% fee prior to the amendment.

In September 2019, the Company refinanced the Senior Credit Facility, pursuant to Amendment No. 4 to the Credit Agreement among Del Taco, as borrower, the Company and its subsidiaries, as guarantors, Bank of America, N.A. as administrative agent and letter of credit issuer, the lenders party thereto, and other parties thereto, which provides for a $250 million five-year senior secured revolving facility. The Senior Credit Facility, as amended, includes a sub limit of $35 million for letters of credit. The Senior Credit Facility, as amended, will mature on September 19, 2024. Substantially all of the assets of the Company are pledged as collateral under the Senior Credit Facility.

Borrowings under the Senior Credit Facility, as amended, bear interest, at the borrower's option, at rates based upon either LIBOR or a base rate, plus, for each rate, a margin determined in accordance with a lease-adjusted consolidated leverage ratio-based pricing grid. The base rate is calculated as the highest of (a) the Federal Funds Rate plus 0.50%, (b) the published Bank of America prime rate, or (c) Eurodollar Rate plus 1.00%. For Eurodollar loans, the margin is in the range of 1.25% to 2.00%. For base rate loans, the margin is in the range of 0.25% to 1.00%. Borrowings under the Senior Credit Facility, as amended, may be repaid and reborrowed.

The Senior Credit Facility, as amended, 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 December 31, 2019. Substantially all of the assets of the Company are pledged as collateral under the Senior Credit Facility.

Upon the original refinancing in August 2015, the Company capitalized lender debt discount costs and deferred financing costs of $1.4 million and $0.5 million, respectively, related to the Senior Credit Facility. In September 2019, the Company capitalized deferred financing costs of $1.0 million in connection with the amendment of the Senior Credit Facility. Debt discount costs and deferred financing costs are presented net of the outstanding balance on the consolidated balance sheets and will be amortized to interest expense over the term of the facility. Amortization of deferred financing costs and debt discount totaled $0.4 million for each of the fifty-two weeks ended December 31, 2019, the fifty-two weeks ended January 1, 2019 and the fifty-two weeks ended January 2, 2018.

At December 31, 2019, the weighted average interest rate on the outstanding balance of the Senior Credit Facility, as amended, was 3.55%. At December 31, 2019, the Company had a total of $87.7 million of availability for additional borrowings under the Senior Credit Facility, as amended, as the Company had $145.0 million of outstanding borrowings and $17.3 million of letters of credit outstanding which reduce availability under the Senior Credit Facility, as amended.

Other Debt Information

Based on debt agreements and leases in place as of December 31, 2019, future maturities of debt were as follows (in thousands):



2020	$	220
2021	225
2022	115
2023	121
2024	145,129
Thereafter	260
Total maturities	146,070
Less: debt discount and deferred financing costs	(1,269		)
Total debt, net	$	144,801

Derivative Instruments	12 Months Ended
Derivative Instruments	Dec. 31, 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 that effectively converted that portion of the outstanding balance of the revolving 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 to a capped interest rate of 2.00% plus the applicable margin. During the period from July 1, 2016 through December 31, 2019, the 2016 Interest Rate Cap Agreement had no hedge ineffectiveness. 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 perfectly match with the interest rate cap reset dates and other critical terms during the fifty-two weeks ended December 31, 2019. During the fifty-two weeks ended December 31, 2019, the Company reclassified $0.2 million of interest expense related to hedges of these transactions into earnings. As of December 31, 2019, the Company was hedging forecasted transactions expected to occur through March 31, 2020. Assuming interest rates at December 31, 2019 remain constant, $0.1 million of interest expense related to hedges of these transactions is expected to be reclassified into earnings over the next three months. The Company intends to ensure that this hedge remains effective; therefore, approximately $0.1 million is expected to be reclassified into interest expense over the next three months. The effective portion of the 2016 Interest Rate Cap Agreement through December 31, 2019 was included in accumulated other comprehensive income.

Fair Value Measurements

12 Months Ended

Dec. 31, 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, as amended, approximated its fair value. The 2016 Interest Rate Cap Agreement is recorded at fair value in the Company’s consolidated balance sheets.

As of December 31, 2019 and January 1, 2019, 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 $0.0 million at December 31, 2019 and $0.5 million at January 1, 2019 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):



	December 31, 2019				January 1, 2019
	Estimated Fair Value		Book Value		Estimated Fair Value		Book Value
2015 Senior Credit Facility, as amended	$	143,731	$	143,731	$	158,386	$	158,386

The Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and January 1, 2019 were as follows (in thousands):



	December 31, 2019		Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
2016 Interest Rate Cap Agreement	$	—	$	—	$	—	$	—
Total assets measured at fair value	$	—	$	—	$	—	$	—

	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	$	—

- 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

Dec. 31, 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):



	December 31, 2019		January 1, 2019
Employee compensation and related items	$	10,008	$	12,888
Accrued insurance	5,900		5,664
Accrued sales tax	4,099		3,952
Accrued property and equipment purchases	3,190		3,196
Accrued real property tax	1,652		1,420
Accrued gift cards	1,585		1,531
Accrued rent and related items	1,382		1,248
Accrued advertising	1,345		1,578
Restaurant closure liabilities	129		623
Other	5,287		2,685
	$	34,577	$	34,785

On January 2, 2019, the first day of Fiscal 2019, the Company reclassified $0.4 million of current restaurant closure liabilities to operating lease right-of-use assets in connection with the adoption of Topic 842 (see Note 2 for more information).

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



	December 31, 2019		January 1, 2019
Unfavorable lease liabilities	$	—	$	11,975
Sublease liabilities	1,223		—
Insurance reserves	8,110		8,794
Deferred rent liability	—		4,594
Deferred development and initial franchise fees	4,241		2,742
Deferred gift card income	1,474		1,290
Unearned trade discount, non-current	320		739
Restaurant closure liabilities	308		1,788
Other	925		930
	$	16,601	$	32,852

On January 2, 2019, the first day of Fiscal 2019, the Company reclassified $12.0 million of unfavorable lease liabilities, $4.6 million of deferred rent liabilities and $1.8 million of restaurant closure liabilities to the respective operating lease right-of-use assets in connection with the adoption of Topic 842 (see Note 2 for more information).

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [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 December 31, 2019, there were 704,948 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 $6.3 million for the fifty-two weeks ended December 31, 2019, $6.1 million for the fifty-two weeks ended January 1, 2019 and $4.9 million for the fifty-two weeks ended January 2, 2018.

Restricted Stock Awards

During the fifty-two weeks ended December 31, 2019, 531,173 shares of restricted stock were granted to certain directors, officers and employees of the Company under the 2015 Plan. These restricted stock awards for officers and employees vest on a straight-line basis in equal annual installments over four years from the grant date and over one year from the grant date for directors.

A summary of outstanding and unvested restricted stock activity as of December 31, 2019 and changes during the period from January 1, 2019 through December 31, 2019 are as follows:



	Shares		Weighted-Average Grant Date Fair Value
Nonvested at January 1, 2019	1,234,531		$	12.87
Granted	531,173		12.17
Vested	(520,835	)	12.04
Forfeited	(102,151	)	12.89
Nonvested at December 31, 2019	1,142,718		$	12.92

During the fifty-two weeks ended December 31, 2019 and January 1, 2019, the Company made payments of $2.6 million and $2.4 million, respectively, related to tax withholding obligations for the vesting of restricted stock awards in exchange for 204,494 and 168,484 shares withheld, respectively. As of December 31, 2019, there was $9.3 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 $12.17, $13.88 and $13.64 during the fifty-two weeks ended December 31, 2019, fifty-two weeks ended January 1, 2019 and fifty-two weeks ended January 2, 2018, respectively. The total fair value of awards that became fully vested during the fifty-two weeks ended December 31, 2019, fifty-two weeks ended January 1, 2019 and fifty-two weeks ended January 2, 2018 was $6.6 million, $5.9 million and $5.4 million, respectively.

Stock Options

During the fifty-two weeks ended December 31, 2019, 5,000 stock options were granted to an employee 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 December 31, 2019 and changes during the period from January 1, 2019 through December 31, 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 1, 2019	453,250		$	11.74	5.0	$	77
Granted	5,000		10.43
Exercised	(12,000	)	10.05
Forfeited / Expired	(33,500	)	12.47
Options outstanding at December 31, 2019	412,750		$	11.71	3.8	$	—
Options exercisable at December 31, 2019	276,498		$	11.02	3.3	$	—
Options exercisable and expected to vest at December 31, 2019	391,896		$	11.62	3.7	$	—

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 December 31, 2019 and January 1, 2019, 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 December 31, 2019, the fifty-two weeks ended January 1, 2019 and the fifty-two weeks ended January 2, 2018:



	52 Weeks Ended December 31, 2019			52 Weeks Ended January 1, 2019			52 Weeks Ended January 2, 2018
Expected volatility	35.61		%	36.29		%	36.09		%
Risk-free rate of return	2.49		%	2.71		%	1.86		%
Expected life (in years)	4.75			4.74			4.75
Dividend yield	—			—			—
Fair value per share at date of grant	$	3.59		$	4.92		$	4.63

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 December 31, 2019, there was $0.4 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 1.9 years. The total intrinsic value of stock options exercised was $29,000, $51,000 and $25,000 during the fifty-two weeks ended December 31, 2019, fifty-two weeks ended January 1, 2019 and fifty-two weeks ended January 2, 2018, respectively.

Shareholders' Equity	12 Months Ended
Shareholders' Equity	Dec. 31, 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 December 31, 2019, there were 37,059,202 shares of common stock issued and outstanding and warrants to purchase 5,105,982 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 December 31, 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 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 December 31, 2019, the Company repurchased (1) 574,481 shares of common stock for an average price per share of $10.17 for an aggregate cost of approximately $5.9 million, including incremental direct costs to acquire the shares, and (2) 846,441 warrants for an average price per warrant of $1.78 for an aggregate cost of approximately $1.5 million, including incremental direct costs to acquire the warrants. 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. The Company expects to retire the repurchased shares and warrants and therefore has accounted for them as constructively retired as of December 31, 2019. As of December 31, 2019, there was approximately $22.3 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 that time, at $3.75 per warrant, representing a 5% discount from the closing price of $3.95 per warrant on the transaction date. The chief executive officer and managing member of the general partner of PW Acquisitions, LP was a member of the Company's Board of Directors at the time of the transaction.

Earnings per Share

12 Months Ended

Dec. 31, 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		52 Weeks Ended
	December 31, 2019			January 1, 2019		January 2, 2018
Numerator:
Net (loss) income	$	(118,285	)	$	18,959	$	49,871
Denominator:
Weighted-average shares outstanding - basic	37,018,445			38,106,057		38,689,508
Dilutive effect of restricted shares	—			256,217		417,371
Dilutive effect of stock options	—			17,611		28,931
Dilutive effect of warrants	—			304,074		814,097
Weighted-average shares outstanding - diluted	37,018,445			38,683,959		39,949,907
Net (loss) income per share - basic	$	(3.20	)	$	0.50	$	1.29
Net (loss) income per share - diluted	$	(3.20	)	$	0.49	$	1.25
Antidilutive options, unvested restricted stock awards, and warrants excluded from the computations	6,661,450			686,278		69,722

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. The Company reported a net loss for the fifty-two weeks ended December 31, 2019 and, accordingly, all outstanding stock options and unvested restricted stock were excluded from the calculation of diluted earnings per share because their effect would be antidilutive.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

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



	52 Weeks Ended			52 Weeks Ended		52 Weeks Ended
	December 31, 2019			January 1, 2019		January 2, 2018
Current:
Federal	$	3,311		$	3,762	$	5,884
State	1,643			1,800		886
	4,954			5,562		6,770
Deferred:
Federal	(146		)	698		(24,636		)
State	(437		)	399		2,042
	(583		)	1,097		(22,594		)
Income tax provision (benefit)	$	4,371		$	6,659	$	(15,824	)

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 effective tax rates for the fifty-two weeks ended December 31, 2019, fifty-two weeks ended January 1, 2019 and fifty-two weeks ended January 2, 2018 were (3.8)%, 26.0% and (46.5)%, 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					52 Weeks Ended
	December 31, 2019					January 1, 2019					January 2, 2018
Federal income taxes	$	(23,922	)	21.0	%	$	5,380		21.0	%	$	11,916		35.0	%
State and local income taxes, net of federal tax benefit	1,302			(1.1	)%	1,639			6.4	%	1,688			5.0	%
Goodwill impairment and adjustments to assets held for sale	27,909			(24.5	)%	—			—	%	—			—	%
Targeted job credits	(712		)	0.6	%	(727		)	(2.8	)%	(420		)	(1.2	)%
Tax reform	—			—	%	(291		)	(1.1	)%	(29,111		)	(85.5	)%
Executive compensation disallowed	413			(0.3	)%	362			1.4	%	81			0.2	%
Permanent tax differences and other	(619		)	0.5	%	296			1.1	%	22			—	%
Income tax provision (benefit)	$	4,371		(3.8	)%	$	6,659		26.0	%	$	(15,824	)	(46.5	)%

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



	December 31, 2019			January 1, 2019
Deferred tax assets:
Deferred rent	$	—		$	1,173
Accrued insurance	3,625			3,685
Restaurant closure liabilities	139			652
Net operating loss carryforwards and tax credits	70			122
Deferred income	1,484			1,196
Stock-based compensation	1,122			1,049
Accrued compensation	589			532
Operating lease liabilities	75,330			—
Other, net	542			494
Deferred tax assets	82,901			8,903
Less: valuation allowance	—			—
Net deferred tax assets	82,901			8,903

Deferred tax liabilities:
Property, equipment and intangible assets	(73,473		)	(69,357		)
Operating lease right-of-use assets	(69,930		)	—
Investment in subsidiary	(7,309		)	(7,448		)
Prepaid expenses	(1,574		)	(1,569		)
Other assets	(125		)	—
Deferred tax liabilities	(152,411		)	(78,374		)
Net deferred tax liabilities	$	(69,510	)	$	(69,471	)

The Company maintains deferred tax liabilities related to trademarks and other indefinite-lived assets that are not netted against the deferred tax assets as the 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 December 31, 2019 and January 1, 2019. State tax credit carryforwards as of December 31, 2019 totaled $0.1 million and begin to expire in 2024. State tax credit carryforwards as of January 1, 2019 totaled $0.1 million and begin to expire in 2024.

As of December 31, 2019 and January 1, 2019, 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 December 31, 2019 and January 1, 2019, the liability for unrecognized tax benefits 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 unrecognized tax benefits in income tax expense. During the fifty-two weeks ended December 31, 2019, fifty-two weeks ended January 1, 2019 and fifty-two weeks ended January 2, 2018, the Company did not have any accrued interest and penalties related to unrecognized tax benefits. The Company does not expect any significant increases or decreases within the next twelve months to its unrecognized tax benefits. The total amount of net unrecognized tax benefits 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 2016 and 2015, 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

Dec. 31, 2019

Leases [Abstract]

Leases

The Company's material leases consist of restaurant locations and its executive offices with expiration dates through 2044. In general, the leases have remaining terms of 1-20 years, most of which include options to extend the leases for additional five-year periods. The lease term is generally the minimum noncancelable period of the lease. The Company does not include option periods unless the Company determines that it is reasonably certain of exercising the option at inception or when a triggering event occurs.

The Company determines if an arrangement is a lease and whether it is an operating lease or finance lease at inception. The operating right-of-use assets and operating lease liabilities are recognized at the lease commencement date. In determining the Company’s operating right-of-use assets and operating lease liabilities, the Company applies a discount rate to the lease payments within each lease agreement. As most of the Company’s lease agreements do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating right-of-use asset also includes any advanced payments made and is reduced by lease incentives, initial direct costs incurred and impairment of operating lease right-of-use assets and adjusted by favorable lease assets and unfavorable lease liabilities.

Some of the Company's lease agreements contain rent escalation clauses (including adjustments based on changes in indexes), rent holidays, capital improvement funding or other lease concessions. The Company recognizes rental expense on a straight-line basis based on fixed components of a lease arrangement and the Company amortizes this expense over the term of the lease beginning with the date of initial possession. Variable lease components represent amounts that are not fixed in nature and are recognized in expense as incurred.

The Company has subleased certain properties to franchisees and 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 rental commitments under operating leases will be offset by sublease amounts to be paid by the sub-lessee. In general, the terms of the sublease are similar to the terms of the master lease.

The components of lease cost for the fifty-two weeks ended December 31, 2019 were as follows (in thousands):



	Classification	52 Weeks Ended December 31, 2019
Operating lease cost	Occupancy and other operating expenses, Occupancy and other - franchise subleases and other, Pre-opening costs, Restaurant closure charges, net and General and administrative	$	38,816
Finance lease cost:
Amortization of right of use assets	Depreciation and amortization	451
Interest on lease liabilities	Interest expense	95
Short-term lease cost	Occupancy and other operating expenses	421
Variable lease cost	Occupancy and other operating expenses, Occupancy and other - franchise subleases and other and Restaurant closure charges, net	1,769
Sublease income	Franchise sublease and other income	(4,448		)
Total lease cost		$	37,104

Prior to the adoption of Topic 842, the components of rent expense for all non-cancelable operating leases for the fifty-two weeks ended January 1, 2019 and January 2, 2018 were comprised of the following (in thousands):



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

Supplemental balance sheet information related to the Company's operating and finance leases (noting the financial statement caption each is included with) as of December 31, 2019 and January 1, 2019 was as follows (in thousands):



	December 31, 2019			January 1, 2019
Operating lease assets:
Operating lease right-of-use assets	$	258,278		$	—
Operating lease liabilities:
Current portion of operating lease liabilities	$	17,848		$	—
Operating lease liabilities, excluding current portion	257,361			—
Total operating lease liabilities	$	275,209		$	—

Finance lease assets:
Buildings under finance leases	$	871		$	3,370
Accumulated depreciation	(334		)	(2,193		)
Finance lease asset, net	$	537		$	1,177
Finance lease obligations:
Current portion of finance lease obligations	$	162		$	510
Long-term portion of finance lease obligations	412			757
Total finance lease obligations	$	574		$	1,267

As of January 1, 2019, deferred rent liability was $16.6 million, which included unfavorable lease liabilities of $12.0 million, net of accumulated amortization of $7.2 million. On January 2, 2019, the Company reclassified the deferred rent liability, including the unfavorable lease liabilities, to operating lease right-of-use assets in connection with the adoption of Topic 842.



Weighted Average Remaining Lease Term (in years)		December 31, 2019
Operating leases		12.6
Finance leases		4.0



Weighted Average Discount Rate	December 31, 2019
Operating leases	6.61	%
Finance leases	10.36	%

Supplemental cash flow information related to leases was as follows (in thousands):



	52 Weeks Ended December 31, 2019
Cash paid for amounts in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	33,009
Operating cash flows used for finance leases	$	95
Financing cash flows used for finance leases	$	489

The estimated future lease payments as of December 31, 2019 are as follows (in thousands):



	Finance Lease Liabilities			Operating Lease Liabilities			Operating Subleases			Net Lease Commitments
2020	$	214		$	35,414		$	(5,858	)	$	29,770
2021	200			38,392			(5,784		)	32,808
2022	86			40,077			(6,317		)	33,846
2023	79			34,971			(5,701		)	29,349
2024	73			29,254			(5,085		)	24,242
Thereafter	52			237,350			(54,513		)	182,889
Total lease payments	$	704		$	415,458		$	(83,258	)	$	332,904
Amounts representing interest	(130		)	(140,249		)				(140,379		)
Present value of lease obligations	$	574		$	275,209					$	192,525

The Company has subleased 57 properties to franchisees and 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 $83.3 million as of December 31, 2019.

As of December 31, 2019, we have legally binding lease payments related to restaurant leases that have not yet commenced of $19.5 million.

Franchise sublease income which includes minimum rent, percentage rent, real estate taxes and common area maintenance is classified separately under franchise sublease and other income on the consolidated statements of comprehensive (loss) 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 sublease and other on the consolidated statements of comprehensive (loss) income. For the fifty-two weeks ended December 31, 2019, franchise sublease expenses also include $1.4 million associated with the closure or net sublease shortfall of restaurants classified separately under restaurant closure charges, net on the consolidated statements of comprehensive (loss) income. Total franchise sublease income and franchise sublease expense for the Company comprise the following (in thousands):



	52 Weeks Ended		52 Weeks Ended			52 Weeks Ended
	December 31, 2019		January 1, 2019			January 2, 2018
Franchise sublease income	(4,448	)	$	(3,115	)	$	(2,844	)
Franchise sublease expense	5,080		2,855			2,608

One Del Taco franchisee has a direct sublease with a third party, and Del Taco is a guarantor on the sublease which has a remaining term of 12 years, expiring in 2031, and remaining lease payments total approximately $1.6 million. The Company would remain a guarantor of the lease in the event the lease is extended for any established renewal periods. In late 2019, the franchisee defaulted on the lease payments. As such, the Company accrued a liability of approximately $0.1 million as of December 31, 2019, representing the estimated payments that the Company will be liable for until it is able to find a new franchisee or convert the restaurant to a company-operated restaurant.

During Fiscal 2019, the Company entered into three sale-leaseback arrangements with third party private investors, with two arrangements occurring during the first quarter of 2019 and one during the second quarter of 2019. 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 $12.7 million. Under two of the arrangements, the Company sold the land and buildings related to restaurants constructed during 2018 and leased them back for a term of 20 years. Under one of the arrangements, the Company sold the land related to a restaurant constructed during 2018 and leased it back for a term of 20 years. The sale of these properties resulted in a loss of approximately $0.2 million which is included in loss on disposal of assets and adjustments to assets held for sale, net in the consolidated statements of comprehensive (loss) income. The assets sold were included in assets held for sale as of January 1, 2019.

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 and adjustments to assets held for sale, net in the consolidated statements of comprehensive (loss) income.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 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 a 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 December 31, 2019 are approximately $40.6 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 December 31, 2019 and January 1, 2019 the Company’s total contingent liability with respect to the aforementioned agreements is $2.1 million and $3.3 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 December 31, 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. The Company has tendered the claim to its insurance carrier under its employment practices liability insurance policy. The Company's insurance coverage and retention includes amounts incurred for legal defense and any potential settlement. The parties are engaged in settlement discussions which are now expected to give rise to a loss in excess of the Company's insurance retention that is both probable and estimable. Therefore, the Company has recorded an expense for this overall action equal to the full retention as of December 31, 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. However, due to the risks and uncertainties inherent in legal proceedings and litigation, actual results could differ from expectations.

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 $94,000 during the fifty-two weeks ended December 31, 2019, $86,000 during the fifty-two weeks ended January 1, 2019 and $82,000 during the fifty-two weeks ended January 2, 2018.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 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 2019	December 31, 2019			September 10, 2019			June 18, 2019		March 26, 2019
Total revenue	$	157,096		$	120,198		$	121,460	$	114,197
(Loss) income from operations	(111,769		)	(3,450		)	4,517		3,659
Net (loss) income	(114,133		)	(7,669		)	2,092		1,425
(Loss) earnings per share:
Basic	$	(3.08	)	$	(0.21	)	$	0.06	$	0.04
Diluted	$	(3.08	)	$	(0.21	)	$	0.06	$	0.04



	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

Subsequent Events (Notes)	12 Months Ended
Subsequent Events (Notes)	Jan. 01, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Sale-Leaseback During the first quarter of 2020, the Company entered into a sale-leaseback arrangement with a third party private investor and sold the land and building related to one restaurant for net proceeds of approximately $1.4 million and leased it back for a term of 20 years. Refranchising In March 2020, the Company completed the refranchising of five company-operated restaurants in the Yuma, AZ and El Centro, CA regions to an existing franchisee for net proceeds of approximately $1.2 million. This refranchising transaction also includes a commitment to develop four additional Del Taco restaurants over the next seven years, primarily in Arizona.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 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 December 31, 2019	$	76	$	41	$	—	$	30	$	87

Fifty-Two Weeks Ended January 1, 2019	$	57	$	45	$	—	$	26	$	76

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

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

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

The Company uses a fifty-two or fifty-three week fiscal year ending on the Tuesday closest to December 31. Fiscal years 2019, 2018 and 2017 are 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. 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 2019, the Company’s financial statements reflect the fifty-two weeks ended December 31, 2019. 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.

Effective January 2, 2019 (the first day of fiscal year 2019), the Company adopted the requirements of Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as discussed in Note 2, using the modified retrospective method of transition. Current year results have been prepared in accordance with the new standard.

Certain reclassifications have been made to prior period financial statements to conform to the current period presentation.

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

We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers, which we adopted on January 3, 2018.

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 as revenue over the term of the renewal agreement. Development fees and franchise fees are 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 lesser 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.

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 December 31, 2019 is as follows (in thousands):



FY 2020	$	165
FY 2021	159
FY 2022	159
FY 2023	152
FY 2024	150
Thereafter	1,746
Total deferred franchise fees	$	2,531

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.

Franchise sublease and other income consists of rental income received from franchisees related to properties where we have subleased a leasehold interest to the franchisee but remain primarily liable to the landlord. The related expenses are recognized in Occupancy and Other - Franchise Subleases and Other. Franchise sublease income also includes rental income for closed restaurant properties where we have subleased to a third party but remain primarily liable to the landlord. The related expenses are recognized in Restaurant Closure Charges, net. Franchise other income also includes information technology hardware such as point of sale equipment, tables, 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 $3.1 million and $2.8 million as of December 31, 2019 and January 1, 2019, respectively. The current portion of the deferred gift card income is included in other accrued liabilities on the consolidated balance sheets and totaled $1.6 million and $1.5 million as of December 31, 2019 and January 1, 2019, respectively. The non-current portion of the deferred gift card income was $1.5 million and $1.3 million as December 31, 2019 and January 1, 2019, 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 December 31, 2019 and January 1, 2019.

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 $0.3 million and $0.7 million as of December 31, 2019 and January 1, 2019, 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 December 31, 2019 and January 1, 2019, respectively.

Inventories

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

Property and Equipment

Property and equipment includes land, buildings, leasehold improvements, restaurant and other equipment, restaurant property leased to others and buildings under finance 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 finance 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 $22.7 million for the fifty-two weeks ended December 31, 2019, $23.1 million for the fifty-two weeks ended January 1, 2019 and $21.0 million for the fifty-two weeks ended January 2, 2018. These amounts include $0.5 million for the fifty-two weeks ended December 31, 2019 related to buildings under finance leases, as well as $0.9 million and 1.2 million for the fifty-two weeks ended January 1, 2019 and January 2, 2018, respectively, related to buildings under capital leases. Accumulated depreciation and amortization associated with property and equipment includes $0.3 million related to buildings under finance leases as of December 31, 2019, as well as $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 $1.8 million for the fifty-two weeks ended December 31, 2019 and $1.6 million for both the fifty-two weeks ended January 1, 2019 and fifty-two weeks ended January 2, 2018. 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 December 31, 2019, the fifty-two weeks ended January 1, 2019, and the fifty-two weeks ended January 2, 2018.

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 (loss) 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 the carrying amount, the Company performs a quantitative impairment test. 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. As the Company adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, in 2019, the Company recognizes goodwill impairment for the carrying amount in excess of fair value. The Company also 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 during the fourth quarter of 2019, the Company noted its stock price experienced a sustained decrease beginning in October 2019. As such, it bypassed the qualitative assessment and performed a quantitative assessment using both the discounted cash flow method and guideline public company method, weighting both equally in the assessment. Based on this quantitative analysis, it was determined that the fair value of the Company was less than its carrying value. The Company recognized an impairment charge of $118.3 million, equal to the excess of the carrying amount above fair value. The impairment charge was recorded in impairment of goodwill on the consolidated statements of comprehensive (loss) income.

During the fourth quarter of 2019, the Company also performed a quantitative impairment analysis of its indefinite-lived trademark using the relief from royalty method. Based on this analysis, the fair value of the Company's trademark was greater than its carrying value, and as such, no impairment was needed.

Intangible Assets, Net

Intangible assets primarily include franchise rights, reacquired franchise rights and favorable lease assets. 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 (loss) income over the remaining term of the franchise agreements. Reacquired franchise rights, which represent the fair value of reacquired rights that were previously granted to franchisees to use Del Taco's trade name under a franchise agreement, are amortized on a straight-line basis to depreciation and amortization in the consolidated statements of comprehensive (loss) income over the term of the former franchise agreement. 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. In connection with the adoption of Topic 842, the Company reclassified its favorable lease assets to operating lease right-of-use assets as discussed in further detail in Note 6. As such, intangible assets did not include favorable lease assets as of December 31, 2019.

Other Assets, Net

Other assets, net consist of security deposits, straight-line rental income related to subleases 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 $2.9 million and $2.3 million as of December 31, 2019 and January 1, 2019, respectively, and is included in other assets, net in the consolidated balance sheets. Capitalized software costs totaled $2.0 million for the fifty-two weeks ended December 31, 2019, $1.5 million for the fifty-two weeks ended January 1, 2019 and $1.0 million for the fifty-two weeks ended January 2, 2018. Amortization expenses totaled $1.4 million for the fifty-two weeks ended December 31, 2019, $1.2 million for the fifty-two weeks ended January 1, 2019 and $1.0 million for the fifty-two weeks ended January 2, 2018

Long-Lived Assets

Long-lived assets, including property and equipment and definite-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 December 31, 2019, the Company evaluated certain restaurants having indicators of impairment based on operating performance and recorded an impairment charge totaling $7.2 million related to seven restaurants. During the fifty-two weeks ended January 1, 2019, the Company 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, 2018.

Rent Expense and Deferred Rent

Rent Expense

The Company has non-cancelable lease agreements for certain restaurant land and buildings under terms ranging up to 50 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 finance lease. Certain leases provide for contingent rentals based on percentages of net restaurant sales or have other provisions obligating the Company to pay related property taxes and certain other expenses. Contingent rentals are generally based on restaurant 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 through 2018 prior to the adoption of Topic 842. In connection with the adoption of Topic 842 in 2019, the Company reclassified these deferred rent liabilities to the operating lease right-of-use asset. In addition, the Company subleases certain buildings to franchisees and other unrelated third parties, which are classified as operating leases.

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 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. The Company is not the primary obligor for its workers' compensation insurance policy, so therefore, the Company records a liability up to its deductible exposure.

Insurance Recovery Assets

In the normal course of its business, the Company incurs losses, such as those resulting from property damage and legal actions, that are covered by the Company's insurance policies. The Company records insurance recovery assets for losses it is entitled to recover under its insurance policies and when such recovery is probable. In determining whether a recovery is probable, the Company considers whether the Company has exceeded its deductible, the limits of its insurance policies and subsequent payment of claims.

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 $0.6 million and $0.7 million at December 31, 2019 and January 1, 2019, respectively. Company-operated restaurants contribute to the advertising fund on the same basis as franchise-operated restaurants. At December 31, 2019 and January 1, 2019, the Company had an additional $0.8 million and $0.9 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 (loss) income for Company expenses and included in franchise advertising expenses in the consolidated statements of comprehensive (loss) income for franchise expenses. Advertising expenses for the Company were $18.8 million for the fifty-two weeks ended December 31, 2019, $19.0 million for the fifty-two weeks ended January 1, 2019 and $18.1 million for the fifty-two weeks ended January 2, 2018.

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 $1.7 million for the fifty-two weeks ended December 31, 2019, and $1.6 million for both the fifty-two weeks ended January 1, 2019 and the fifty-two weeks ended January 2, 2018.

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. Prior to the adoption of Topic 842, 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. After the adoption of Topic 842, these restaurant closure obligations primarily consist of rent, property tax and common area maintenance on closed restaurant properties and the present value of non-lease executory costs for closed restaurant properties, net of estimated sublease income. Changes to the estimated liability for future non-lease executory costs based on new facts and circumstances are considered to be a change in estimate and are recorded prospectively. The change resulting from the adoption of Topic 842 led to an increase in restaurant closure charges for the fifty-two weeks ended December 31, 2019 as compared to the fifty-two weeks ended January 1, 2019.

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 (Loss) Income

Comprehensive (loss) income 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 (loss) income, 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 that time, at $3.75 per warrant, representing a 5% discount from the closing price of $3.95 per warrant on the transaction date. The chief executive officer and managing member of the general partner of PW Acquisitions, LP was a member of the Company's Board of Directors at the time of the transaction.

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 December 31, 2019, Del Taco operated and franchised a total of 372 restaurants in California (233 company-operated and 139 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 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. There was no material impact on the Company's consolidated financial statements and related disclosures as a result of adopting this standard.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), along with related clarifications and improvements. This guidance results in the simplification of the goodwill impairment test. ASU 2017-04 eliminates the second step of the two-step goodwill impairment test, which required entities to calculate the implied fair value of goodwill in order to measure goodwill impairment. Instead, goodwill impairment is measured based on the excess of a reporting unit's carrying value over its fair value. The standard is effective for fiscal years beginning after December 15, 2019; however, the Company early adopted the standard during the fifty-two weeks ended December 31, 2019. Refer to Note 6 for further discussion of the impact on the Company's consolidated financial statements as a result of adopting this standard.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), along with related clarifications and improvements. This guidance results in key changes to lease accounting and aims 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 lease payments, and a corresponding right-of-use asset on the balance sheet. The Company adopted the requirements of the new lease standard effective January 2, 2019, the first day of fiscal year 2019, electing 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. During the process of adoption, the Company made the following elections:


•	The Company elected the package of practical expedients which allowed the Company to not reassess:


•	Whether existing or expired contracts contain leases under the new definition of a lease;


•	Lease classification for existing or expired leases; and


•	Initial direct costs for any expired or existing leases to determine if they would qualify for capitalization under ASC 842.


•	The Company did not elect the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets.


•	The Company did not elect the land easement practical expedient, which permits an entity to continue applying its current policy for accounting for land easements that existed as of, or expired before, the effective date of Topic 842.


•	The Company elected to make the accounting policy election for short-term leases, permitting the Company to not apply the recognition requirements of this standard to short-term leases with terms of 12 months or less.

Upon adoption of ASU 2016-02, the Company recorded operating lease right-of-use assets and operating lease liabilities and derecognized all landlord funded assets, deemed landlord financing liabilities, deferred rent liabilities and favorable lease assets and unfavorable lease liabilities upon transition. Upon adoption, the Company recorded operating lease liabilities of approximately $230.6 million based on the present value of the remaining rental payments using discount rates as of the effective date. In addition, the Company recorded corresponding operating lease right-of-use assets of approximately $218.9 million, calculated as the initial amount of the Company's operating lease liabilities adjusted for prepaid and deferred rent, unamortized favorable lease assets and unamortized unfavorable lease liabilities, liabilities associated with lease termination costs and impairment of right-of-use assets recognized in retained earnings as of January 1, 2019. At the beginning of the period of adoption, the Company recorded the cumulative effect of adoption of $1.9 million to retained earnings. Beginning 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 impact of the adoption of ASC 2016-02 on the consolidated balance sheet was as follows:



	January 1, 2019		Effect of Adoption of Topic 842 (Leases)			January 2, 2019
Assets
Current assets:
Cash and cash equivalents	$	7,153	$	—		$	7,153
Accounts and other receivables, net	3,167		—			3,167
Inventories	2,932		—			2,932
Prepaid expenses and other current assets	4,935		(2,564		)	2,371
Assets held for sale	14,794		—			14,794
Total current assets	32,981		(2,564		)	30,417
Property and equipment, net	161,429		(13,839		)	147,590
Operating lease right-of-use assets	—		218,855			218,855
Goodwill	321,531		—			321,531
Trademarks	220,300		—			220,300
Intangible assets, net	18,507		(7,576		)	10,931
Other assets, net	4,208		—			4,208
Total assets	$	758,956	$	194,876		$	953,832
Liabilities and shareholders' equity
Current liabilities:
Accounts payable	$	19,877	$	—		$	19,877
Other accrued liabilities	34,785		(425		)	34,360
Current portion of finance lease obligations and deemed landlord finacing liabilities	1,033		(547		)	486
Current portion of operating lease liabilities	—		17,303			17,303
Total current liabilities	55,695		16,331			72,026
Long-term debt, finance lease obligations and deemed landlord financing liabilities, excluding current portion, net	178,664		(19,040		)	159,624
Operating lease liabilities	—		213,313			213,313
Deferred income taxes	69,471		708			70,179
Other non-current liabilities	32,852		(18,348		)	14,504
Total liabilities	336,682		192,964			529,646
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		1,912			87,061
Total shareholders' equity	422,274		1,912			424,186
Total liabilities and shareholders' equity	$	758,956	$	194,876		$	953,832

Recently Issued Accounting Standards

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

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Disclosure of Long Lived Assets Held-for-sale

Assets Held for Sale

Assets held for sale include the net book value of property and equipment and goodwill for Company-operated restaurants that the Company plans to sell within the next year to new or existing franchisees, as well as the net book value of owned property that the Company plans to sell and lease back within the next year. Long-lived assets that meet the held for sale criteria are held for sale and reported at the lower of their carrying value or fair value, less estimated costs to sell. Gains and losses realized on sale-leaseback transactions are recognized immediately. 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.

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 finance leases		Shorter of useful life (typically 20 years) or lease term
Restaurant and other equipment		3–15 years

Property and equipment, net at December 31, 2019 and January 1, 2019 consisted of the following, excluding amounts related to properties classified as held for sale (in thousands):



	December 31, 2019			January 1, 2019
Land	$	1,927		$	1,929
Buildings	4,569			4,335
Restaurant and other equipment	92,025			87,767
Leasehold improvements	116,177			121,409
Buildings under finance leases	871			3,390
Restaurant property leased to others	10,899			991
Construction-in-progress	11,680			10,697
	238,148			230,518
Less: Accumulated depreciation	(81,227		)	(69,089		)
Property and equipment, net	$	156,921		$	161,429

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

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. There was no material impact on the Company's consolidated financial statements and related disclosures as a result of adopting this standard.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), along with related clarifications and improvements. This guidance results in the simplification of the goodwill impairment test. ASU 2017-04 eliminates the second step of the two-step goodwill impairment test, which required entities to calculate the implied fair value of goodwill in order to measure goodwill impairment. Instead, goodwill impairment is measured based on the excess of a reporting unit's carrying value over its fair value. The standard is effective for fiscal years beginning after December 15, 2019; however, the Company early adopted the standard during the fifty-two weeks ended December 31, 2019. Refer to Note 6 for further discussion of the impact on the Company's consolidated financial statements as a result of adopting this standard.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), along with related clarifications and improvements. This guidance results in key changes to lease accounting and aims 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 lease payments, and a corresponding right-of-use asset on the balance sheet. The Company adopted the requirements of the new lease standard effective January 2, 2019, the first day of fiscal year 2019, electing 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. During the process of adoption, the Company made the following elections:


•	The Company elected the package of practical expedients which allowed the Company to not reassess:


•	Whether existing or expired contracts contain leases under the new definition of a lease;


•	Lease classification for existing or expired leases; and


•	Initial direct costs for any expired or existing leases to determine if they would qualify for capitalization under ASC 842.


•	The Company did not elect the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets.


•	The Company did not elect the land easement practical expedient, which permits an entity to continue applying its current policy for accounting for land easements that existed as of, or expired before, the effective date of Topic 842.


•	The Company elected to make the accounting policy election for short-term leases, permitting the Company to not apply the recognition requirements of this standard to short-term leases with terms of 12 months or less.

Upon adoption of ASU 2016-02, the Company recorded operating lease right-of-use assets and operating lease liabilities and derecognized all landlord funded assets, deemed landlord financing liabilities, deferred rent liabilities and favorable lease assets and unfavorable lease liabilities upon transition. Upon adoption, the Company recorded operating lease liabilities of approximately $230.6 million based on the present value of the remaining rental payments using discount rates as of the effective date. In addition, the Company recorded corresponding operating lease right-of-use assets of approximately $218.9 million, calculated as the initial amount of the Company's operating lease liabilities adjusted for prepaid and deferred rent, unamortized favorable lease assets and unamortized unfavorable lease liabilities, liabilities associated with lease termination costs and impairment of right-of-use assets recognized in retained earnings as of January 1, 2019. At the beginning of the period of adoption, the Company recorded the cumulative effect of adoption of $1.9 million to retained earnings. Beginning 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 impact of the adoption of ASC 2016-02 on the consolidated balance sheet was as follows:



	January 1, 2019		Effect of Adoption of Topic 842 (Leases)			January 2, 2019
Assets
Current assets:
Cash and cash equivalents	$	7,153	$	—		$	7,153
Accounts and other receivables, net	3,167		—			3,167
Inventories	2,932		—			2,932
Prepaid expenses and other current assets	4,935		(2,564		)	2,371
Assets held for sale	14,794		—			14,794
Total current assets	32,981		(2,564		)	30,417
Property and equipment, net	161,429		(13,839		)	147,590
Operating lease right-of-use assets	—		218,855			218,855
Goodwill	321,531		—			321,531
Trademarks	220,300		—			220,300
Intangible assets, net	18,507		(7,576		)	10,931
Other assets, net	4,208		—			4,208
Total assets	$	758,956	$	194,876		$	953,832
Liabilities and shareholders' equity
Current liabilities:
Accounts payable	$	19,877	$	—		$	19,877
Other accrued liabilities	34,785		(425		)	34,360
Current portion of finance lease obligations and deemed landlord finacing liabilities	1,033		(547		)	486
Current portion of operating lease liabilities	—		17,303			17,303
Total current liabilities	55,695		16,331			72,026
Long-term debt, finance lease obligations and deemed landlord financing liabilities, excluding current portion, net	178,664		(19,040		)	159,624
Operating lease liabilities	—		213,313			213,313
Deferred income taxes	69,471		708			70,179
Other non-current liabilities	32,852		(18,348		)	14,504
Total liabilities	336,682		192,964			529,646
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		1,912			87,061
Total shareholders' equity	422,274		1,912			424,186
Total liabilities and shareholders' equity	$	758,956	$	194,876		$	953,832

Restaurant Closure and Other Related Charges (Tables)

12 Months Ended

Dec. 31, 2019

Jan. 01, 2019

Restructuring and Related Activities [Abstract]

Restaurant Closure Liability Activity

he Company evaluates long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a triggering event to have occurred related to a specific restaurant if the restaurant’s cash flows are less than a minimum threshold. 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 the discounted value of the estimated cash flows associated with the respective restaurant or agreement, using Level 3 inputs. The impairment charges represent the excess of the aggregate carrying value of a restaurant's operating lease right-of-use asset, furniture, fixtures and equipment and leasehold improvements over its estimated fair value. Impairment charges are allocated to a restaurant's operating lease right-of-use assets, furniture, fixtures and equipment and leasehold improvements on a pro rata basis based on the respective assets' carrying values.

In connection with the adoption of Topic 842, the Company evaluated the operating lease right-of-use assets for impairment, indicating the carrying amount of the operating lease assets for certain restaurants may not be recoverable, and recorded an impairment charge totaling $3.1 million at January 2, 2019 based on the estimates of future recoverable cash flows.

During the fifty-two weeks ended December 31, 2019, the Company evaluated certain restaurants having indicators of impairment based on operating performance and recorded an impairment charge totaling $7.2 million related to seven restaurants. The Company wrote-off a portion of the operating lease right-of-use assets, furniture, fixtures and equipment and leasehold improvements based on the estimate of future recoverable cash flows. During the fifty-two weeks ended January 1, 2019, the Company evaluated certain restaurants that had indicators of impairment based on operating performance and recorded an impairment charge totaling $3.9 million related to five restaurants. The Company wrote-off the value of furniture, fixtures and equipment and leasehold improvements based on the estimate of future recoverable cash flows. No impairment charges were recorded in continuing operations in the accompanying consolidated statements of comprehensive (loss) income for any other periods presented.

Restaurant Closure Charges, Net

At December 31, 2019 and January 1, 2019, the restaurant closure liability was $0.4 million and $2.4 million, respectively. The details of the restaurant closure activities are discussed below.

Restaurant Closures and Lease Reserves

At January 1, 2019, the restaurant closure liability balance was $0.3 million related to restaurants closures prior to 2015. During the fifty-two weeks ended December 31, 2019, in connection with the adoption of Topic 842, the Company reclassified the $0.3 million restaurant closure liability to offset the respective operating lease right-of-use assets.

Restaurant Closure and Other Related Charges for 12 Underperforming Restaurants

During the fourth quarter of 2015, the Company closed 12 company-operated restaurants. During the fifty-two weeks ended December 31, 2019, in connection with the adoption of Topic 842, the Company reclassified approximately $1.9 million of the lease related closure liability to offset the respective operating lease right-of-use assets. A summary of the restaurant closure liability activity, which relates to contract termination costs, for these 12 closed restaurants consisted of the following (in thousands):

Closure Liability Activity for 12 Closed Restaurants



	Total
Balance at January 3, 2017	$	1,773
Charges for accretion in current period	70
Cash payments	(376		)
Adjustment to estimates based on current activity	144
Balance at January 2, 2018	1,611
Charges for accretion in current period	61
Cash payments	(327		)
Adjustment to estimates based on current activity	747
Balance at January 1, 2019	2,092
Reclassified to operating lease right-of-use assets	(1,900		)
Cash payments	(263		)
Adjustment to estimates based on current activity	508
Balance at December 31, 2019	$	437

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 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 finance leases		Shorter of useful life (typically 20 years) or lease term
Restaurant and other equipment		3–15 years

Property and equipment, net at December 31, 2019 and January 1, 2019 consisted of the following, excluding amounts related to properties classified as held for sale (in thousands):



	December 31, 2019			January 1, 2019
Land	$	1,927		$	1,929
Buildings	4,569			4,335
Restaurant and other equipment	92,025			87,767
Leasehold improvements	116,177			121,409
Buildings under finance leases	871			3,390
Restaurant property leased to others	10,899			991
Construction-in-progress	11,680			10,697
	238,148			230,518
Less: Accumulated depreciation	(81,227		)	(69,089		)
Property and equipment, net	$	156,921		$	161,429

Summary of Refranchsing and Franchise Acquisitions (Tables)

12 Months Ended

Dec. 31, 2019

Franchise Acquisitions [Abstract]

Summary of refranchising

The following table provides detail of the related gain (loss) recognized during the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018 (dollars in thousands):



	52 Weeks Ended December 31, 2019			52 Weeks Ended January 1, 2019		52 Weeks Ended January 2, 2018
Company-operated restaurants sold to franchisees	31			—		5

Proceeds from the sale of company-operated restaurants, net of selling costs	$	7,310		$	—	$	2,192
Net assets sold (primarily furniture, fixtures and equipment)	(4,952		)	—		(1,261		)
Goodwill related to the company-operated restaurants sold to franchisees	(6,078		)	—		(247		)
Allocation to deferred franchise fees	(771		)	—		—
Sublease liabilities, net ^(a)	(50		)	—		(548		)
Other direct costs	(123		)	—		(5		)
(Loss) gain on sale of company-operated restaurants ^(b)	$	(4,664	)	$	—	$	131

^(a) During the fifty-two weeks ended December 31, 2019, the Company recorded sublease assets of $1.2 million and sublease liabilities of $1.3 million. During the fifty-two weeks ended January 2, 2018, the Company recorded sublease assets of $0.1 million and sublease liabilities of $0.6 million.

^(b) Included in loss on disposal of assets and adjustments to assets held for sale, net on the consolidated statements of comprehensive (loss) income.

Business Combination

The following table provides detail of the combined acquisitions for the fifty-two weeks ended December 31, 2019, January 1, 2019 and January 2, 2018 (dollars in thousands):



	52 Weeks Ended December 31, 2019			52 Weeks Ended January 1, 2019		52 Weeks Ended January 2, 2018
Franchise-operated restaurants acquired from franchisees	4			3		1

Goodwill	$	4,302		$	893	$	860
Property and equipment	660			798		360
Reacquired franchise rights	—			150		—
Operating lease right-of-use assets	2,006			—		—
Operating lease liabilities	(2,006		)	—		—
Unfavorable lease liabilities ^(a)	(130		)	—		(85		)
Liabilities assumed	—			—		(7		)
Total Consideration	$	4,832		$	1,841	$	1,128

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

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 December 31, 2019 are as follows (in thousands):



	Goodwill
Balance as of January 1, 2019	$	321,531
Acquisition of franchise-operated restaurants	4,302
Sale of company-operated restaurants to franchisees	(83		)
Goodwill reclassified to held for sale	(14,761		)
Impairment of goodwill	(118,250		)
Balance as of December 31, 2019	$	192,739

Schedule of Other Intangible Assets

The Company’s other intangible assets at December 31, 2019 and January 1, 2019 consisted of the following (in thousands):



	December 31, 2019							January 1, 2019
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Favorable lease assets	$	—	$	—		$	—	$	13,118	$	(5,542	)	$	7,576
Sublease assets	1,340		(82		)	1,258		—		—			—
Franchise rights	14,298		(5,465		)	8,833		15,032		(4,411		)	10,621
Reacquired franchise rights	943		(207		)	736		417		(107		)	310
Total amortized other intangible assets	$	16,581	$	(5,754	)	$	10,827	$	28,567	$	(10,060	)	$	18,507

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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



	Sublease Assets		Franchise Rights		Reacquired Franchise Rights
2020	$	95	$	1,137	$	105
2021	95		1,027		101
2022	95		930		78
2023	92		845		67
2024	92		770		66

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

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Debt

The Company’s long-term debt, finance lease obligations, other debt and deemed landlord financing liabilities at December 31, 2019 and January 1, 2019 consisted of the following (in thousands):



	December 31, 2019		January 1, 2019
2015 Senior Credit Facility, as amended, net of unamortized debt discount of $231 and $459 and deferred financing costs of $1,038 and $155 at December 31, 2019 and January 1, 2019, respectively	$	143,731	$	158,386
Total outstanding indebtedness	143,731		158,386
Obligations under finance leases, other debt and deemed landlord financing liabilities	1,070		21,311
Total debt, net	144,801		179,697
Less: amounts due within one year	220		1,033
Total amounts due after one year, net	$	144,581	$	178,664

At December 31, 2019 and January 1, 2019, the Company assessed the amounts recorded under the 2015 Senior Credit Facility, as amended, and determined that such amounts approximated fair value.

Schedule of Maturities of Debt

Based on debt agreements and leases in place as of December 31, 2019, future maturities of debt were as follows (in thousands):



2020	$	220
2021	225
2022	115
2023	121
2024	145,129
Thereafter	260
Total maturities	146,070
Less: debt discount and deferred financing costs	(1,269		)
Total debt, net	$	144,801

- 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

Dec. 31, 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):



	December 31, 2019				January 1, 2019
	Estimated Fair Value		Book Value		Estimated Fair Value		Book Value
2015 Senior Credit Facility, as amended	$	143,731	$	143,731	$	158,386	$	158,386

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 December 31, 2019 and January 1, 2019 were as follows (in thousands):



	December 31, 2019		Markets for Identical Assets (Level 1)		Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
2016 Interest Rate Cap Agreement	$	—	$	—	$	—	$	—
Total assets measured at fair value	$	—	$	—	$	—	$	—

	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	$	—

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

12 Months Ended

Dec. 31, 2019

Other Liabilities Disclosure [Abstract]

Summary of Other Accrued Liabilities

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



	December 31, 2019		January 1, 2019
Employee compensation and related items	$	10,008	$	12,888
Accrued insurance	5,900		5,664
Accrued sales tax	4,099		3,952
Accrued property and equipment purchases	3,190		3,196
Accrued real property tax	1,652		1,420
Accrued gift cards	1,585		1,531
Accrued rent and related items	1,382		1,248
Accrued advertising	1,345		1,578
Restaurant closure liabilities	129		623
Other	5,287		2,685
	$	34,577	$	34,785

Summary of Other Non-current Liabilities

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



	December 31, 2019		January 1, 2019
Unfavorable lease liabilities	$	—	$	11,975
Sublease liabilities	1,223		—
Insurance reserves	8,110		8,794
Deferred rent liability	—		4,594
Deferred development and initial franchise fees	4,241		2,742
Deferred gift card income	1,474		1,290
Unearned trade discount, non-current	320		739
Restaurant closure liabilities	308		1,788
Other	925		930
	$	16,601	$	32,852

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Nonvested Restricted Stock Shares Activity

A summary of outstanding and unvested restricted stock activity as of December 31, 2019 and changes during the period from January 1, 2019 through December 31, 2019 are as follows:



	Shares		Weighted-Average Grant Date Fair Value
Nonvested at January 1, 2019	1,234,531		$	12.87
Granted	531,173		12.17
Vested	(520,835	)	12.04
Forfeited	(102,151	)	12.89
Nonvested at December 31, 2019	1,142,718		$	12.92

Summary of Stock Options Activity

A summary of stock option activity as of December 31, 2019 and changes during the period from January 1, 2019 through December 31, 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 1, 2019	453,250		$	11.74	5.0	$	77
Granted	5,000		10.43
Exercised	(12,000	)	10.05
Forfeited / Expired	(33,500	)	12.47
Options outstanding at December 31, 2019	412,750		$	11.71	3.8	$	—
Options exercisable at December 31, 2019	276,498		$	11.02	3.3	$	—
Options exercisable and expected to vest at December 31, 2019	391,896		$	11.62	3.7	$	—

Assumptions Used in Option-pricing Valuation

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 December 31, 2019 and January 1, 2019, 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 December 31, 2019, the fifty-two weeks ended January 1, 2019 and the fifty-two weeks ended January 2, 2018:



	52 Weeks Ended December 31, 2019			52 Weeks Ended January 1, 2019			52 Weeks Ended January 2, 2018
Expected volatility	35.61		%	36.29		%	36.09		%
Risk-free rate of return	2.49		%	2.71		%	1.86		%
Expected life (in years)	4.75			4.74			4.75
Dividend yield	—			—			—
Fair value per share at date of grant	$	3.59		$	4.92		$	4.63

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 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		52 Weeks Ended
	December 31, 2019			January 1, 2019		January 2, 2018
Numerator:
Net (loss) income	$	(118,285	)	$	18,959	$	49,871
Denominator:
Weighted-average shares outstanding - basic	37,018,445			38,106,057		38,689,508
Dilutive effect of restricted shares	—			256,217		417,371
Dilutive effect of stock options	—			17,611		28,931
Dilutive effect of warrants	—			304,074		814,097
Weighted-average shares outstanding - diluted	37,018,445			38,683,959		39,949,907
Net (loss) income per share - basic	$	(3.20	)	$	0.50	$	1.29
Net (loss) income per share - diluted	$	(3.20	)	$	0.49	$	1.25
Antidilutive options, unvested restricted stock awards, and warrants excluded from the computations	6,661,450			686,278		69,722

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

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



	52 Weeks Ended			52 Weeks Ended		52 Weeks Ended
	December 31, 2019			January 1, 2019		January 2, 2018
Current:
Federal	$	3,311		$	3,762	$	5,884
State	1,643			1,800		886
	4,954			5,562		6,770
Deferred:
Federal	(146		)	698		(24,636		)
State	(437		)	399		2,042
	(583		)	1,097		(22,594		)
Income tax provision (benefit)	$	4,371		$	6,659	$	(15,824	)

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					52 Weeks Ended
	December 31, 2019					January 1, 2019					January 2, 2018
Federal income taxes	$	(23,922	)	21.0	%	$	5,380		21.0	%	$	11,916		35.0	%
State and local income taxes, net of federal tax benefit	1,302			(1.1	)%	1,639			6.4	%	1,688			5.0	%
Goodwill impairment and adjustments to assets held for sale	27,909			(24.5	)%	—			—	%	—			—	%
Targeted job credits	(712		)	0.6	%	(727		)	(2.8	)%	(420		)	(1.2	)%
Tax reform	—			—	%	(291		)	(1.1	)%	(29,111		)	(85.5	)%
Executive compensation disallowed	413			(0.3	)%	362			1.4	%	81			0.2	%
Permanent tax differences and other	(619		)	0.5	%	296			1.1	%	22			—	%
Income tax provision (benefit)	$	4,371		(3.8	)%	$	6,659		26.0	%	$	(15,824	)	(46.5	)%

Schedule of Deferred Tax Assets and Liabilities

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



	December 31, 2019			January 1, 2019
Deferred tax assets:
Deferred rent	$	—		$	1,173
Accrued insurance	3,625			3,685
Restaurant closure liabilities	139			652
Net operating loss carryforwards and tax credits	70			122
Deferred income	1,484			1,196
Stock-based compensation	1,122			1,049
Accrued compensation	589			532
Operating lease liabilities	75,330			—
Other, net	542			494
Deferred tax assets	82,901			8,903
Less: valuation allowance	—			—
Net deferred tax assets	82,901			8,903

Deferred tax liabilities:
Property, equipment and intangible assets	(73,473		)	(69,357		)
Operating lease right-of-use assets	(69,930		)	—
Investment in subsidiary	(7,309		)	(7,448		)
Prepaid expenses	(1,574		)	(1,569		)
Other assets	(125		)	—
Deferred tax liabilities	(152,411		)	(78,374		)
Net deferred tax liabilities	$	(69,510	)	$	(69,471	)

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 is classified separately under franchise sublease and other income on the consolidated statements of comprehensive (loss) 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 sublease and other on the consolidated statements of comprehensive (loss) income. For the fifty-two weeks ended December 31, 2019, franchise sublease expenses also include $1.4 million associated with the closure or net sublease shortfall of restaurants classified separately under restaurant closure charges, net on the consolidated statements of comprehensive (loss) income. Total franchise sublease income and franchise sublease expense for the Company comprise the following (in thousands):



	52 Weeks Ended		52 Weeks Ended			52 Weeks Ended
	December 31, 2019		January 1, 2019			January 2, 2018
Franchise sublease income	(4,448	)	$	(3,115	)	$	(2,844	)
Franchise sublease expense	5,080		2,855			2,608

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 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 2019	December 31, 2019			September 10, 2019			June 18, 2019		March 26, 2019
Total revenue	$	157,096		$	120,198		$	121,460	$	114,197
(Loss) income from operations	(111,769		)	(3,450		)	4,517		3,659
Net (loss) income	(114,133		)	(7,669		)	2,092		1,425
(Loss) earnings per share:
Basic	$	(3.08	)	$	(0.21	)	$	0.06	$	0.04
Diluted	$	(3.08	)	$	(0.21	)	$	0.06	$	0.04



	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

Description of Business - Additional Information (Detail)	Dec. 31, 2019 state restaurant	Jan. 01, 2019 state restaurant
Franchisor Disclosure [Line Items]
Number of states in which entity operates \| state	15	14
Entity operated units
Franchisor Disclosure [Line Items]
Number of restaurants	300	322
Franchised units
Franchisor Disclosure [Line Items]
Number of restaurants	296	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)		6 Months Ended	12 Months Ended
	Mar. 29, 2017 $ / shares shares	Jun. 30, 2015 USD ($)	Dec. 31, 2019 USD ($) Segment renewal restaurant vendor property $ / shares shares	Jan. 01, 2019 USD ($) restaurant $ / shares shares	Jan. 02, 2018 USD ($) $ / shares shares	Mar. 26, 2019 USD ($)	Jan. 02, 2019 USD ($)	Mar. 27, 2018 USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Current Fiscal Year End Date			--12-31
Impairment of long-lived assets			$ 7,159,000	$ 3,861,000	$ 0
Deferred income taxes			$ 69,510,000	69,471,000			$ 70,179,000
Document Period End Date			Dec. 31, 2019
DeferredGiftCardIncomeTotal			$ 3,100,000	$ 2,800,000
Share Price \| $ / shares			$ 3.59	$ 4.92	$ 4.63
Deferred gift card income			$ 1,474,000	$ 1,290,000
Allowance for doubtful accounts			$ 100,000	76,000
Number of vendors \| vendor			1
Noncurrent portion of advanced reimbursements			$ 300,000	700,000
Current portion of advanced reimbursements			400,000	422,000
Depreciation and amortization expense			22,700,000	23,100,000	$ 21,000,000
Property and equipment depreciation expense			81,227,000	69,089,000
Carrying value of capitalized software costs			2,900,000	2,300,000
Capitalized software costs			2,000,000	1,500,000	1,000,000
Capitalized software amortization expense			1,400,000	1,200,000	1,000,000
Interest capitalized in connection with construction			$ 96,000	131,000	100,000
Lease agreement term (in years)			50 years
Lease accumulated amortization				7,200,000
Deductible per occurrence for general liability			$ 350,000
Percentage of net sales for advertising			4.00%
Advertising expenses			$ 18,800,000	19,000,000	18,100,000
Pre-opening costs			$ 1,650,000	1,584,000	1,591,000
Number of operating segments \| Segment			1
Number of reportable segments \| Segment			1
Partnership monthly rental income		$ 1,400,000
Proceeds from credit facility			$ 41,000,000	31,000,000	31,500,000
Payments of Debt Issuance Costs			1,014,000	0	0
Gift Card Liability, Current			$ 1,585,000	1,531,000
Adjustment for adoption of new lease standard, net of tax							$ 1,912,000
Number of Stores \| property			57
Entity operated units
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Accrued advertising			$ 800,000	$ 900,000
Number of restaurants \| restaurant			300	322
Franchised units
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Accrued advertising			$ 600,000	$ 700,000
Number of restaurants \| restaurant			296	258
CALIFORNIA
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants \| restaurant			372
CALIFORNIA \| Entity operated units
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants \| restaurant			233
CALIFORNIA \| Franchised units
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants \| restaurant			139
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]
Depreciation and amortization expense				$ 900,000	1,200,000
Property and equipment depreciation expense				2,200,000	2,500,000
Estimated useful lives of assets (in years)			20 years
assets held under finance leases [Domain]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Depreciation and amortization expense			$ 500,000
Property and equipment depreciation expense			300,000
Construction-in-progress
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Capitalized construction costs			$ 1,800,000	1,625,000
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
Adjustments for Prior Revenue Recognition Standards
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]
Revenue			(19,002,000)	(17,569,000)	(16,464,000)
Franchise advertising contributions
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Revenue			$ (14,516,000)	$ (13,300,000)	$ 0
Warrants
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Shares/warrants repurchased (in shares/warrants) \| shares	400,000		846,441	47,511	424,439
Average cost per share/warrant (in dollars per share/warrant) \| $ / shares	$ 3.75		$ 1.78	$ 2.55	$ 3.72
Discount on repurchase	5.00%
Share Price \| $ / shares	$ 3.95
Retained Earnings (Accumulated Deficit)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Adjustment for adoption of new lease standard, net of tax						$ 1,912,000		$ (707,000)

Basis of Presentation and Summary of Significant Accounting Policies - Assets Held-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 02, 2019	Jan. 01, 2019
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale	$ 8,411	$ 14,794	$ 14,794

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Property, Plant and Equipment [Line Items]
Pre-opening costs	$ 1,650,000	$ 1,584,000	$ 1,591,000
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 - Remaining Performance Obligation (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 2,531
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-02
Accounting Policies [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 165
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	$ 159
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	$ 159
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	$ 152
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	$ 150
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	$ 1,746
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) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 02, 2019	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Current liabilities:
Accounts payable	$ 19,652	$ 19,877	$ 19,877
Other accrued liabilities	34,577	34,360	34,785
Current portion of capital lease obligations and deemed landlord financing liabilities	220	486	1,033
Total current liabilities	72,297	72,026	55,695
Long-term debt, finance lease obligations, other debt and deemed landlord financing liabilities, excluding current portion, net	144,581	159,624	178,664
Deferred income taxes	69,510	70,179	69,471
Other non-current liabilities	16,601	14,504	32,852
Total liabilities	560,350	529,646	336,682
Shareholders’ equity:
Preferred stock	0	0	0
Common stock	4	4	4
Additional paid-in capital	333,379	336,941	336,941
Accumulated other comprehensive (loss) income	(52)	180	180
(Accumulated deficit) retained earnings	(31,224)	87,061	85,149
Total shareholders’ equity	302,107	424,186	422,274	$ 416,249	$ 377,333
Total liabilities and shareholders’ equity	$ 862,457	$ 953,832	$ 758,956

Basis of Presentation and Summary of Significant Accounting Policies - Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Mar. 26, 2019	Jan. 02, 2019	Jan. 01, 2019	Mar. 27, 2018	Jan. 02, 2018	Jan. 03, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents	$ 1,421		$ 7,153	$ 7,153		$ 6,559	$ 8,795
Cumulative Effect of New Accounting Principle in Period of Adoption			(1,912)
Operating Lease, Liability	275,209		213,313	0
Operating Lease, Right-of-Use Asset	258,278		218,855	0
Accounts and other receivables, net	3,580		3,167	3,167
Inventories	3,123		2,932	2,932
Prepaid expenses and other current assets	2,289		2,371	4,935
Assets held for sale	8,411		14,794	14,794
Assets, Current	18,824		30,417	32,981
Property and equipment, net	156,921		147,590	161,429
Goodwill	192,739		321,531	321,531
Trademarks	220,300		220,300	220,300
Intangible assets, net	10,827		10,931	18,507
Other assets, net	4,568		4,208	4,208
Assets	862,457		953,832	758,956
Accounts payable	19,652		19,877	19,877
Other accrued liabilities	34,577		34,360	34,785
Current portion of capital lease obligations and deemed landlord financing liabilities	220		486	1,033
Operating Lease, Liability, Current	17,848		17,303	0
Liabilities, Current	72,297		72,026	55,695
Long-term debt, finance lease obligations, other debt and deemed landlord financing liabilities, excluding current portion, net	144,581		159,624	178,664
Deferred income taxes	69,510		70,179	69,471
Other non-current liabilities	16,601		14,504	32,852
Liabilities	560,350		529,646	336,682
Preferred Stock, Value, Issued	0		0	0
Common Stock, Value, Issued	4		4	4
Additional paid-in capital	333,379		336,941	336,941
Accumulated other comprehensive (loss) income	(52)		180	180
(Accumulated deficit) retained earnings	(31,224)		87,061	85,149
Stockholders' Equity Attributable to Parent	302,107		424,186	422,274		416,249	377,333
Liabilities and Equity	862,457		953,832	758,956
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents			0
Operating Lease, Liability			213,313	230,600
Operating Lease, Right-of-Use Asset			218,855
Accounts and other receivables, net			0
Inventories			0
Prepaid expenses and other current assets			(2,564)
Assets held for sale			0
Assets, Current			(2,564)
Property and equipment, net			(13,839)
Goodwill			0
Trademarks			0
Intangible assets, net			(7,576)
Other assets, net			0
Assets			194,876
Accounts payable			0
Other accrued liabilities			(425)
Current portion of capital lease obligations and deemed landlord financing liabilities			(547)
Operating Lease, Liability, Current			17,303
Liabilities, Current			16,331
Long-term debt, finance lease obligations, other debt and deemed landlord financing liabilities, excluding current portion, net			(19,040)
Deferred income taxes			708
Other non-current liabilities	1,800		(18,348)
Liabilities			192,964
Preferred Stock, Value, Issued			0
Common Stock, Value, Issued			0
Additional paid-in capital			0
Accumulated other comprehensive (loss) income			0
(Accumulated deficit) retained earnings			1,912
Stockholders' Equity Attributable to Parent			1,912
Liabilities and Equity			$ 194,876
Retained Earnings (Accumulated Deficit)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ (1,912)			$ 707
Stockholders' Equity Attributable to Parent	$ (31,224)			$ 85,149		$ 66,897	$ 17,026

Business Combination - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018	Jan. 02, 2019
Business Acquisition [Line Items]
Tax withholdings on restricted stock vesting	$ 2,602	$ 2,378	$ 1,923
Business combination, goodwill	$ 192,739	$ 321,531		$ 321,531

Business Combination - Summary of Merger Consideration Paid to DTH Stockholders (except for the Levy Newco Parties) (Detail) - $ / shares	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Business Acquisition [Line Items]
Value per share as of June 30, 2015	$ 3.59	$ 4.92	$ 4.63

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	Dec. 31, 2019	Jan. 02, 2019	Jan. 01, 2019
Business Acquisition [Line Items]
Prepaid expenses and other current assets			$ 100
Goodwill	$ 192,739	$ 321,531	$ 321,531

Business Combination - Schedule of Preliminary Values Allocated to Intangible Assets and Useful Lives (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2019	Jan. 02, 2018	Jan. 03, 2017
Business Acquisition [Line Items]
Restaurant closure liability	$ 400	$ 2,400
Finite lived intangible assets acquired	10,827	18,507
Total intangible assets	10,827	18,507	$ 10,931
Franchise rights
Business Acquisition [Line Items]
Finite lived intangible assets acquired	$ 8,833	$ 10,621
Useful life of finite lived intangible assets (in years)		40 years
Weighted average life of definite-lived intangibles (in years)	12 years 10 months 25 days
Restaurant Closures Prior to 2015 [Member]
Business Acquisition [Line Items]
Restaurant closure liability		$ 0
Closure of 12 Underperforming Restaurants [Member]
Business Acquisition [Line Items]
Restaurant closure liability	$ 437	$ 2,092		$ 1,611	$ 1,773

Restaurant Closure and Other Related Charges - Additional Information (Details) $ in Thousands	4 Months Ended	12 Months Ended
	Dec. 29, 2015 location	Dec. 31, 2019 USD ($) location	Jan. 01, 2019 USD ($) location	Jan. 02, 2018 USD ($) location	Jan. 03, 2017 USD ($)
Restructuring Cost and Reserve [Line Items]
Restaurant closure liability		$ 400	$ 2,400
Current portion of restaurant closure liability		129	623
Non-current portion of restaurant closure liability		308	1,788
Restaurant closure charges		0	(449)	$ (379)
Closure of 12 Underperforming Restaurants [Member]
Restructuring Cost and Reserve [Line Items]
Restaurant closure liability		437	2,092	1,611	$ 1,773
Adjustments to estimate based on current activity		508	747
Current portion of restaurant closure liability		100	500
Non-current portion of restaurant closure liability		300	1,600
Number of underperforming locations \| location	12
Adjustment to estimates based on current activity				144
Restaurant closure charges		$ 1,900	$ (61)	$ (70)
Franchise revenue
Restructuring Cost and Reserve [Line Items]
Franchise-operated restaurants acquired from franchisees \| location		4	3	1

Restaurant Closure and Other Related Charges - Restaurant Closure Liability Activity (Details) $ in Thousands	4 Months Ended	12 Months Ended
	Dec. 29, 2015 location	Dec. 31, 2019 USD ($)	Jan. 01, 2019 USD ($)	Jan. 02, 2018 USD ($)
Restructuring Reserve [Roll Forward]
Closure liability at beginning of period		$ 2,400
Charges for accretion in current period		0	$ 449	$ 379
Closure liability at end of period		400	2,400
Closure of 12 Underperforming Restaurants [Member]
Restructuring Reserve [Roll Forward]
Closure liability at beginning of period		2,092	1,611	1,773
Adjustments to estimate based on current activity		508	747
Charges for accretion in current period		(1,900)	61	70
Cash payments		(263)	(327)	(376)
Adjustment to estimates based on current activity				144
Closure liability at end of period		$ 437	$ 2,092	$ 1,611
Number of underperforming locations \| location	12

Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 02, 2019	Jan. 01, 2019	Jan. 02, 2018
Property, Plant and Equipment [Line Items]
Property and equipment	$ 238,148		$ 230,518
Less: Accumulated depreciation	(81,227)		(69,089)
Property and equipment, net	156,921	$ 147,590	161,429
Land
Property, Plant and Equipment [Line Items]
Property and equipment	1,927		1,929
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment	4,569		4,335
Restaurant and other equipment
Property, Plant and Equipment [Line Items]
Property and equipment	92,025		87,767
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	116,177		121,409
Buildings under capital leases
Property, Plant and Equipment [Line Items]
Property and equipment	871		3,390
Less: Accumulated depreciation			(2,200)	$ (2,500)
RestaurantPropertyLeasedToOthers [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	10,899		991
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property and equipment	$ 11,680		$ 10,697

Summary of Refranchsing and Franchise Acquisitions Summary of refranchising (Details) $ in Thousands	4 Months Ended	12 Months Ended
	Dec. 31, 2019 USD ($) restaurant	Dec. 31, 2019 USD ($) restaurant	Jan. 01, 2019 USD ($) restaurant	Jan. 02, 2018 USD ($) restaurant	Jan. 02, 2019 USD ($)
Franchisor Disclosure [Line Items]
Assets Held-For-Sale, Other Property And Equipment, Not Part of Disposal Group, Adjustment	$ 6,800	$ 6,800
Assets held for sale	8,411	$ 8,411	$ 14,794		$ 14,794
Company-operated restaurants sold to franchisees \| restaurant		31	0	5
Proceeds from Divestiture of Businesses		$ 7,310	$ 0	$ 2,192
Net assets sold (primarily furniture, fixtures and equipment)		(4,952)	0	(1,261)
Goodwill related to the company-operated restaurants sold to franchisees		(6,078)	0	(247)
Allocation to Deferred Franchise Fees		(771)	0	0
(Unfavorable)/favorable lease assets/liabilities		(50)	0	(548)
Other costs related to the sale of company-operated restaurants		(123)	0	(5)
Gain on sale of company-operated restaurants		(4,664)	0	131
Favorable lease assets	10,827	10,827	18,507
Unfavorable Leasehold Interests Noncurrent, Accrual Adjustment			600
Assets Held-For-Sale, Other Property And Equipment, Not Part of Disposal Group	4,025	4,025	2,023
Goodwill	4,386	4,386	0
Assets Held-For-Sale, Goodwill, Not Part of Disposal Group	14,800	14,800
Assets And Leaseback Held-For-Sale, Not Part of Disposal Group	0	0	$ 12,771
Sale of company-operated restaurants
Franchisor Disclosure [Line Items]
Favorable lease assets	1,200	1,200		100
Unfavorable Leasehold Interests Noncurrent	$ 1,300	1,300		$ 600
18 Stores Sold [Member]
Franchisor Disclosure [Line Items]
Company-operated restaurants sold to franchisees \| restaurant	18
Assets Held-For-Sale, Goodwill, Not Part of Disposal Group	$ 6,100	$ 6,100

Summary of Refranchsing and Franchise Acquisitions Franchise Acquisitions (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) location	Jan. 01, 2019 USD ($) location	Jan. 02, 2018 USD ($) location	Jan. 02, 2019 USD ($)
Business Acquisition [Line Items]
Period Increase (Decrease) In Assets Held-For-Sale, Other Property And Equipment, Not Part of Disposal Group	$ 4,500
Assets Held-For-Sale, Goodwill, Not Part of Disposal Group, Adjustment	8,700
Assets Held-For-Sale, Goodwill, Not Part of Disposal Group, Relieved	1,700
Assets Held-For-Sale, Other Property And Equipment, Not Part of Disposal Group, Adjustment	6,800
Goodwill	$ 192,739	$ 321,531		$ 321,531
Prepaid expenses and other current assets		$ 100
Franchise revenue
Business Acquisition [Line Items]
Franchise-operated restaurants acquired from franchisees \| location	4	3	1
Goodwill	$ 4,302	$ 893	$ 860
Property and equipment	660	798	360
Reacquired franchise rights	0	150	0
Unfavorable lease liabilities (a)	(130)	0	(85)
Liabilities assumed	0	0	(7)
Total gross consideration	$ 4,832	$ 1,841	$ 1,128

Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Balance as of January 1, 2019	$ 321,531
Acquisition of franchise-operated restaurants	4,302
Goodwill, Sale of Business Unit	(83)
Goodwill, Reclassification to Held For Sale	(14,761)
Goodwill, Impairment Loss	(118,250)	$ 0	$ 0
Balance as of December 31, 2019	$ 192,739	$ 321,531

Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 16,581	$ 28,567
Accumulated Amortization	(5,754)	(10,060)
Net	10,827	18,507
Favorable lease assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	0	13,118
Accumulated Amortization	0	(5,542)
Net	0	7,576
Sublease Assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,340	0
Accumulated Amortization	(82)	0
Net	1,258	0
Franchise rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	14,298	15,032
Accumulated Amortization	(5,465)	(4,411)
Net	8,833	10,621
Reacquired franchise rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	943	417
Accumulated Amortization	(207)	(107)
Net	$ 736	$ 310

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Favorable lease assets
Finite-Lived Intangible Assets [Line Items]
2020	$ 95
2021	95
2022	95
2023	92
2024	92
Franchise rights
Finite-Lived Intangible Assets [Line Items]
2020	1,137
2021	1,027
2022	930
2023	845
2024	770
Reacquired franchise rights
Finite-Lived Intangible Assets [Line Items]
2020	105
2021	101
2022	78
2023	67
2024	$ 66

Goodwill and Other Intangible Assets - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) location restaurant	Jan. 01, 2019 USD ($) location restaurant	Jan. 02, 2018 USD ($) restaurant	Jan. 02, 2019 USD ($)
Finite-Lived Intangible Assets [Line Items]
Goodwill adjusment	$ 118,250,000	$ 0	$ 0
Assets Held-For-Sale, Goodwill, Not Part of Disposal Group	$ 14,800,000
Company-operated restaurants sold to franchisees \| restaurant	31	0	5
Trademarks	$ 220,300,000	$ 220,300,000		$ 220,300,000
Amortization expense	$ 2,800,000	$ 3,100,000	$ 3,300,000
Franchise rights
Finite-Lived Intangible Assets [Line Items]
Useful life of finite lived intangible assets (in years)		40 years
Weighted average life of definite-lived intangibles (in years)	12 years 10 months 25 days
Amortization expense	$ 1,300,000	$ 1,400,000	1,300,000
Unfavorable Sublease Assets
Finite-Lived Intangible Assets [Line Items]
Weighted average life of definite-lived intangibles (in years)		14 years 3 months 19 days
Reacquired franchise rights
Finite-Lived Intangible Assets [Line Items]
Other Depreciation and Amortization	$ 101,000	$ 58,000	$ 40,000
One Franchise-Operated Restaurant \| Franchise rights
Finite-Lived Intangible Assets [Line Items]
Number of franchise locations closed \| restaurant	3
Intangible assets written off	$ 100,000
One Franchise Location \| Franchise rights
Finite-Lived Intangible Assets [Line Items]
Number of franchised restaurants acquired \| location	4	1
Intangible assets acquired	$ 527,000	$ 0
Five Franchise Locations \| Franchise rights
Finite-Lived Intangible Assets [Line Items]
Intangible assets written off		$ 130,000
Number of franchise locations fully amortized \| location		6
Weighted Average \| Franchise rights
Finite-Lived Intangible Assets [Line Items]
Weighted average life of definite-lived intangibles (in years)	9 years 9 months 18 days

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities - Schedule of Debt (Details) - USD ($) $ in Thousands		12 Months Ended
	Aug. 04, 2015	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Debt Instrument [Line Items]
Total outstanding indebtedness		$ 143,731	$ 158,386
Obligations under finance leases, other debt and deemed landlord financing liabilities		1,070	21,311
Total debt, net		144,801	179,697
Less: amounts due within one year		220	1,033
Total amounts due after one year, net		144,581	178,664
Amortization of Debt Issuance Costs and Discounts		400	0	$ 400
2015 Senior Credit Facility, as amended
Debt Instrument [Line Items]
Total outstanding indebtedness		143,731	158,386
Unamortized debt discount	$ 500		459
Deferred financing costs			$ 155
Unused commitment fee percentage (percent)	0.25%
Base Rate \| 2015 Senior Credit Facility, as amended
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	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Debt Instrument [Line Items]
Payments on revolving credit facility		$ 55,000,000	$ 25,000,000	$ 37,500,000
Amortization of deferred financing costs including debt discount		400,000	0	$ 400,000
2015 Senior Credit Facility, as amended
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%
Unused commitment fee percentage (percent)	0.25%
Unamortized debt discount	$ 500,000		$ 459,000
Deferred financing costs		$ 1,000,000
Interest rate on outstanding balance of credit facility (percent)		3.55%
Availability for additional borrowings under credit facility		$ 87,700,000
2015 Senior Credit Facility, as amended		$ 145,000,000
2015 Senior Credit Facility, as amended \| Federal Funds Effective Swap
Debt Instrument [Line Items]
Effective base rate, margins on variable rate (percent)	0.50%
2015 Senior Credit Facility, as amended \| 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 \| 2015 Senior Credit Facility, as amended \| LIBOR
Debt Instrument [Line Items]
Credit facility margins on variable rate (percent)	1.50%
Minimum \| 2015 Senior Credit Facility, as amended \| Base Rate
Debt Instrument [Line Items]
Credit facility margins on variable rate (percent)	0.50%
Maximum \| 2015 Senior Credit Facility, as amended \| LIBOR
Debt Instrument [Line Items]
Credit facility margins on variable rate (percent)	2.50%
Maximum \| 2015 Senior Credit Facility, as amended \| 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) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Debt Instrument [Line Items]
Amortization of deferred financing costs including debt discount	$ 0.4	$ 0.0	$ 0.4

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities - Subordinated Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Debt Instrument [Line Items]
Payments for debt issue costs	$ 1,014	$ 0	$ 0

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities - Other Debt Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Debt Disclosure [Abstract]
2018	$ 220
2019	225
2020	115
2021	121
2022	145,129
Thereafter	260
Total maturities	146,070
Less: debt discount and deferred financing costs	(1,269)
Total debt, net	$ 144,801	$ 179,697

Derivative Instruments - Additional Information (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Derivative [Line Items]
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	$ 181
Warrants to purchase of common stock (in shares) \| shares	5,105,982
Warrant exercise price per share (in dollars per share) \| $ / shares	$ 11.50
Cash Flow Hedging \| Interest Rate Cap
Derivative [Line Items]
Notional amount	$ 70,000
Cap interest rate	2.00%
Amount expected to be reclassified into earnings over the remaining term of the agreement.	$ 100
Amount expected to be reclassified into interest expense over the next 12 months	$ 66

Fair Value Measurements - Additional Information (Detail) - USD ($)	Dec. 31, 2019	Jan. 01, 2019
Interest Rate Cap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of interest rate cap	$ 0	$ 499,000

Fair Value Measurements - Summary of Estimated Fair Values of Long-term Debt Instruments, Warrant Liability and Interest Rate Cap Agreement (Detail) - 2015 Senior Credit Facility, as amended - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
2015 Senior Credit Facility, as amended	$ 145,000
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
2015 Senior Credit Facility, as amended	143,731	$ 158,386
Book Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
2015 Senior Credit Facility, as amended	$ 143,731	$ 158,386

- 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	Dec. 31, 2019	Jan. 01, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate cap	$ 0	$ 499
Total assets measured at fair value	0	499
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	0	499
Total assets measured at fair value	0	499
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) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 02, 2019	Jan. 01, 2019
Accounts Payable And Accrued Liabilities Current And Noncurrent [Line Items]
Operating Lease, Right-of-Use Asset		$ 400
Employee compensation and related items	$ 10,008		$ 12,888
Accrued insurance	5,900		5,664
Accrued sales tax	4,099		3,952
Accrued property and equipment purchases	3,190		3,196
Accrued advertising	1,345		1,578
Accrued real property tax	1,652		1,420
Gift Card Liability, Current	1,585		1,531
Accrued Rent	1,382		1,248
Restaurant closure liabilities	129		623
Other	5,287		2,685
Other accrued liabilities	$ 34,577	$ 34,360	$ 34,785

Other Accrued Liabilities and Other Non-current Liabilities - Summary of Other Non-current Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018	Jan. 02, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
(Unfavorable)/favorable lease assets/liabilities	$ (50)	$ 0	$ (548)
Unfavorable Leasehold Interests Noncurrent, Accrual Adjustment		600
Other non-current liabilities	16,601	32,852		$ 14,504
Leases, Deferred Rent Liability		16,600
Unfavorable lease liabilities	0	11,975
Sublease Liabilities	1,223	0
Insurance reserves	8,110	8,794
Deferred rent liability	0	4,594
Deferred development and initial franchise fees	4,241	2,742
Restaurant closure liabilities	308	1,788
Deferred gift card income	1,474	1,290
Unearned trade discount, non-current	320	739
Other	925	930
Other non-current liabilities	16,601	$ 32,852		14,504
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
(Unfavorable)/favorable lease assets/liabilities	12,000
Other non-current liabilities	1,800			(18,348)
Leases, Deferred Rent Liability	4,600
Other non-current liabilities	$ 1,800			$ (18,348)

Stock-Based Compensation - Additional Information (Detail) - USD ($)		4 Months Ended	12 Months Ended
	Mar. 20, 2015	Dec. 31, 2019	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018	Mar. 20, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense recorded	$ 500,000
Weighted average period of recognition			1 year 10 months 20 days
Weighted-average grant date fair value			$ 12.17
Additional shares granted during period (in shares)			531,173
Granted (in shares)			5,000
Unrecognized compensation expense, net		$ 400,000	$ 400,000
Tax withholdings on restricted stock vesting			204,494	168,484
Payments related to employee tax withholding obligations			$ 2,602,000	$ 2,378,000	$ 1,923,000
Number of awards outstanding		1,142,718	1,142,718	1,234,531
Number of stock options outstanding		412,750	412,750	453,250
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		704,948	704,948
Stock-based compensation expense recorded			$ 6,300,000	$ 6,100,000	$ 4,900,000
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			$ 12.17	$ 13.88	$ 13.64
Total fair value of awards vested			$ 6,600,000	$ 5,900,000	$ 5,400,000.0
Unrecognized compensation expense, net		$ 9,300,000	9,300,000
Payments related to employee tax withholding obligations			$ 2,600,000	2,400,000
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)			531,173
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Total intrinsic value of stock options exercised			$ 29,000	$ 100,000	$ 0
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
	Dec. 31, 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	1,234,531
Granted (in shares) \| shares	531,173
Vested (in shares) \| shares	(520,835)
Forfeited (in shares) \| shares	(102,151)
Nonvested, ending balance (in shares) \| shares	1,142,718
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	$ 12.87
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) \| $ / shares	12.17
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) \| $ / shares	12.04
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) \| $ / shares	12.89
Weighted-Average Grant Date Fair Value, ending balance (in dollars per share) \| $ / shares	$ 12.92

Stock-Based Compensation - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2019
Shares
Options outstanding, beginning of period (in shares)	453,250
Granted (in shares)	5,000
Exercised (in shares)	(12,000)
Forfeited (in shares)	(33,500)
Options outstanding, end of period (in shares)	412,750	453,250
Options exercisable (in shares)			276,498
Options exercisable and expected to vest (in shares)			391,896
Weighted Average Exercise Price
Weighted Average Exercise Price, beginning balance (in dollars per share)	$ 11.74
Weighted Average Exercise Price, Granted (in dollars per share)	10.43
Weighted Average Exercise Price, Exercised (in dollars per share)	10.05
Weighted Average Exercise Price, Forfeited (in dollars per share)	12.47
Weighted Average Exercise Price, end of period (in dollars per share)	$ 11.74	$ 11.74	$ 11.71
Weighted Average Exercise Price, Options exercisable (in dollars per share)			11.02
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	3 years 3 months 19 days
Weighted Average Exercise Price, Options exercisable and expected to vest (in dollars per share)			$ 11.62
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Term, Options outstanding (in years)	3 years 9 months 18 days	5 years
Weighted Average Remaining Contractual Term, Options excercisable and expected to vest (in years)	3 years 8 months 12 days
Aggregate Intrinsic Value, Options outstanding		$ 77	$ 0
Aggregate Intrinsic Value, Options exercisable			0
Aggregate Intrinsic Value, Options exercisable and expected to vest			$ 0

Stock-Based Compensation - Assumptions Used in Option-pricing Valuation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (percent)	35.61%	36.29%	36.09%
Risk-free rate of return (percent)	2.49%	2.71%	1.86%
Expected life (in years)	4 years 9 months	4 years 8 months 26 days	4 years 9 months
Dividend yield	$ 0	$ 0	$ 0
Fair value per share at date of grant (in dollars per share)	$ 3.59	$ 4.92	$ 4.63

Shareholders' Equity - Additional Information (Detail)		12 Months Ended
Shareholders' Equity - Additional Information (Detail)	Mar. 29, 2017 $ / shares shares	Dec. 31, 2019 USD ($) vote $ / shares shares	Jan. 01, 2019 USD ($) $ / shares shares	Jan. 02, 2018 USD ($) $ / shares shares	Jul. 23, 2018 USD ($)	Aug. 23, 2016 USD ($)	Feb. 26, 2016 USD ($)
Class of Stock [Line Items]
Common stock, shares authorized (in shares)		400,000,000	400,000,000
Number of votes entitled to each share \| vote		1
Common stock, shares issued (in shares)		37,059,202	37,305,342
Common stock, shares outstanding (in shares)		37,059,202	37,305,342
Warrants to purchase of common stock (in shares)		5,105,982
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
Share Price \| $ / shares		$ 3.59	$ 4.92	$ 4.63
Shares/warrants repurchased, value \| $		$ 7,373,000	$ 16,316,000	$ 13,849,000
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
Remaining authorized stock/warrant repurchase amount \| $		$ 22,300,000
Common Stock
Class of Stock [Line Items]
Shares/warrants repurchased (in shares/warrants)		574,481	1,408,071	986,497
Average cost per share/warrant (in dollars per share/warrant) \| $ / shares		$ 10.17	$ 11.48	$ 12.41
Shares/warrants repurchased, value \| $		$ 5,900,000	$ 16,200,000	$ 12,300,000
Warrants
Class of Stock [Line Items]
Shares/warrants repurchased (in shares/warrants)	400,000	846,441	47,511	424,439
Average cost per share/warrant (in dollars per share/warrant) \| $ / shares	$ 3.75	$ 1.78	$ 2.55	$ 3.72
Discount on repurchase	5.00%
Share Price \| $ / shares	$ 3.95
Shares/warrants repurchased, value \| $		$ 1,500,000	$ 100,000	$ 1,600,000

Earnings per Share - Schedule of Basic and Diluted Net Income per Share Data (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						4 Months Ended		12 Months Ended
	Sep. 10, 2019	Jun. 18, 2019	Mar. 26, 2019	Sep. 11, 2018	Jun. 19, 2018	Mar. 27, 2018	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Numerator:
Net (loss) income	$ (7,669)	$ 2,092	$ 1,425	$ 5,874	$ 4,210	$ 3,229	$ (114,133)	$ 5,646	$ (118,285)	$ 18,959	$ 49,871
Denominator:
Weighted-average shares outstanding - basic (in shares)									37,018,445	38,106,057	38,689,508
Weighted-average shares outstanding - diluted (in shares)									37,018,445	38,683,959	39,949,907
Net (loss) income per share - basic (in dollars per share)	$ (0.21)	$ 0.06	$ 0.04	$ 0.15	$ 0.11	$ 0.08	$ (3.08)	$ 0.15	$ (3.20)	$ 0.50	$ 1.29
Net (loss) income per share - diluted (in dollars per share)	$ (0.21)	$ 0.06	$ 0.04	$ 0.15	$ 0.11	$ 0.08	$ (3.08)	$ 0.15	$ (3.20)	$ 0.49	$ 1.25
Antidilutive options, unvested restricted stock awards, unvested RSUs and warrants excluded from the computations (in shares)									6,661,450	686,278	69,722
Dilutive effect of restricted shares
Denominator:
Dilutive effect (in shares)									0	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)									0	304,074	814,097

Income Taxes - Schedule of Components of Provision for Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Current:
Federal	$ 3,311	$ 3,762	$ 5,884
State	1,643	1,800	886
Total current income tax expense (benefit)	4,954	5,562	6,770
Deferred:
Federal	(146)	698	(24,636)
State	(437)	399	2,042
Total deferred income tax expense (benefit)	(583)	1,097	(22,594)
Income tax provision (benefit)	$ 4,371	$ 6,659	$ (15,824)

Income Taxes - Schedule of Effective Rates and the Statutory Federal Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Federal income taxes	$ (23,922)	$ 5,380	$ 11,916
State and local income taxes, net of federal tax benefit	1,302	1,639	1,688
Targeted job credits	(712)	(727)	(420)
Goodwill impairment and adjustments to assets held for sale	27,909	0	0
Tax reform	0	(291)	(29,111)
Executive compensation disallowed	413	362	81
Permanent tax differences and other	(619)	296	22
Income tax provision (benefit)	$ 4,371	$ 6,659	$ (15,824)
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Federal income taxes (percent)	21.00%	21.00%	35.00%
State and local income taxes, net of federal tax benefit (percent)	(1.10%)	6.40%	5.00%
Goodwill impairment and adjustments to assets held for sale (percent)	(24.50%)	0.00%	0.00%
Targeted job credits (percent)	0.60%	(2.80%)	(1.20%)
Tax reform (percent)	0.00%	(1.10%)	(85.50%)
Executive compensation disallowed (percent)	(0.30%)	1.40%	0.20%
Permanent tax differences and other (percent)	0.50%	1.10%	0.00%
Effective income tax rates (percent)	(3.80%)	26.00%	(46.50%)

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2019	Jan. 01, 2019
Components of Deferred Tax Assets [Abstract]
Deferred rent	$ 0	$ 1,173,000
Accrued insurance	3,625,000	3,685,000
Restaurant closure liabilities	139,000	652,000
Net operating loss carryforwards and tax credits	70,000	122,000
Deferred income	1,484,000	1,196,000
Stock-based compensation	1,122,000	1,049,000
Accrued compensation	589,000	532,000
Operating lease liabilities	75,330,000	0
Other, net	542,000	494,000
Deferred tax assets	82,901,000	8,903,000
Less: valuation allowance	0	0
Net deferred tax assets	82,901,000	8,903,000
Components of Deferred Tax Liabilities [Abstract]
Property, equipment and intangible assets	(73,473,000)	(69,357,000)
Deferred Tax Liabilities, Leasing Arrangements	(69,930,000)	0
Investment in subsidiary	(7,309,000)	(7,448,000)
Prepaid expenses	(1,574,000)	(1,569,000)
Deferred Tax Liabilities, Other	(125,000)	0
Deferred tax liabilities	(152,411,000)	(78,374,000)
Deferred Tax Liabilities, Net	$ 69,510,000	$ 69,471,000

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Income Tax Disclosure [Line Items]
Federal income taxes (percent)	21.00%	21.00%	35.00%
Tax reform	$ 0	$ (291,000)	$ (29,111,000)
Effective income tax rates (percent)	(3.80%)	26.00%	(46.50%)
Valuation allowance	$ 0	$ 0
Liability for uncertain tax positions	200,000	200,000
Unrecognized tax benefits that would impact effective tax rate	200,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	0
Domestic Tax Authority
Income Tax Disclosure [Line Items]
Operating loss carryforwards	0
Tax credit carryforward	0	0
State and Local Jurisdiction [Member]
Income Tax Disclosure [Line Items]
Operating loss carryforwards	0
Tax credit carryforward	$ 100,000	$ 100,000

Leases - Additional Information (Details) $ in Thousands	3 Months Ended	12 Months Ended
Leases - Additional Information (Details) $ in Thousands	Mar. 26, 2019 USD ($) leaseback_arrangement	Dec. 31, 2019 USD ($) leaseback_arrangement property	Jan. 01, 2019 USD ($)	Jan. 02, 2018 USD ($)	Jun. 18, 2019 leaseback_arrangement	Jan. 02, 2019 USD ($)
Operating Leased Assets [Line Items]
Operating Lease, Rent Expense, Closure Charges	$ 1,400
Operating Lease, Payments		$ 33,009
Operating Lease, Weighted Average Discount Rate, Percent		6.61%
Operating Lease, Weighted Average Remaining Lease Term		12 years 7 months 6 days
Operating Lease, Right-of-Use Asset		$ 258,278	$ 0			$ 218,855
Operating Lease, Cost		38,816
Finance Lease, Right-of-Use Asset, Amortization		451
Finance Lease, Interest Expense		95
Short-term Lease, Cost		421
Variable Lease, Cost		1,769
Leases, Deferred Rent Liability			16,600
Unfavorable lease liabilities, net		0	11,975
Unfavorable leases, accumulated amortization			7,200
Sublease Income		$ 4,448
Sublease contingent rental income				$ 100
Net proceeds from sale-leaseback arrangements			9,900
Lease agreement term (in years)		50 years
Sale Leaseback Transaction, Number of Arrangements \| leaseback_arrangement	2	3			1
Sale Leaseback Transaction, Description of Accounting for Leaseback		12.7
Gain on sale of company-operated restaurants			200
Sale Leaseback Transaction, Deferred Gain, Net				$ 300
Lease, Cost		$ 37,104
Operating Lease, Liability, Current		17,848	0			17,303
Operating Lease, Liability		257,361	0
Operating Lease, Liability		275,209	0			$ 213,313
Finance Lease, Right-Of-Use Asset, Gross		871	3,370
Finance Lease, Right-Of-Use Asset, Accumulated Depreciation		(334)	(2,193)
Finance Lease, Right-of-Use Asset		537	1,177
Finance Lease, Liability, Current		162	510
Finance Lease, Liability, Noncurrent		412	757
Finance Lease, Liability		$ 574	$ 1,267
Finance Lease, Weighted Average Remaining Lease Term		4 years
Finance Lease, Interest Payment on Liability		$ 95
Finance Lease, Principal Payments		$ 489
Number of Stores \| property		57
Finance Lease, Weighted Average Discount Rate, Percent		10.36%
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
Property Lease Guarantee
Operating Leased Assets [Line Items]
Guarantor obligations, maximum exposure, lease payments		$ 1,600
Guarantor Obligations, Current Carrying Value		$ 100

Leases - Schedule of Rent Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Operating Leased Assets [Line Items]
Sublease Income	$ (4,448)
Minimum rental expense		$ 29,134	$ 27,372
Favorable and unfavorable lease assets and liabilities amortization, net	0	(767)	(809)
Straight-line rent expense		722	826
Contingent rent expense		715	685
Rent expense		29,804	28,074
Franchise sublease income		(3,115)	(2,844)
Occupancy and Other - Franchise Subleases [Member]
Operating Leased Assets [Line Items]
Franchise sublease income	$ (5,080)	$ (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) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 10, 2019	Jan. 02, 2019	Jan. 01, 2019
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year	$ 19,500
Finance Lease, Liability	574			$ 1,267
Operating Lease, Liability	$ 275,209		$ 213,313	$ 0
Company as Lessee [Member]
Operating Leased Assets [Line Items]
Finance Lease, Liability, Payments, Remainder of Fiscal Year		$ 214
Lessee, Operating Lease, Liability, Payments, Due Year Five		29,254
Lessee, Operating Lease, Liability, Payments, Due Year Four		34,971
Lessee, Operating Lease, Liability, Payments, Due Year Three		40,077
Lessee, Operating Lease, Liability, Payments, Due Year Two		38,392
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year		35,414
Lessor, Operating Lease, Payments to be Received, Next Twelve Months		5,858
Lessee, Operating and Finance Lease, Liability, Payments, Net Of Sublease Income, Remainder Of Fiscal Year		29,770
Lessor, Operating Lease, Payments to be Received, Thereafter		(54,513)
Lessor, Operating Lease, Payments to be Received, Five Years		(5,085)
Lessor, Operating Lease, Payments to be Received, Four Years		(5,701)
Lessor, Operating Lease, Payments to be Received, Three Years		(6,317)
Lessor, Operating Lease, Payments to be Received, Two Years		(5,784)
Lessor, Operating Lease, Payments to be Received		(83,258)
Lessee, Operating and Finance Lease, Liability, Payments, Net Of Sublease Income, Due Year After Year Five		182,889
Finance Lease, Liability, Payment, Due		704
Lessee, Operating Lease, Liability, Payments, Due		415,458
Lessee, Operating and Finance Lease, Liability, Payments, Net Of Sublease Income, Due Year Five		24,242
Finance Lease, Liability, Payments, Due after Year Five		52
Lessee, Operating and Finance Lease, Liability, Payments, Net Of Sublease Income, Due Year Four		29,349
Finance Lease, Liability, Payments, Due after Year Five		73
Lessee, Operating and Finance Lease, Liability, Payments, Net Of Sublease Income, Due Year Three		33,846
Finance Lease, Liability, Payments, Due Year Four		79
Lessee, Operating and Finance Lease, Liability, Payments, Net Of Sublease Income, Due Year Two		32,808
Finance Lease, Liability, Payments, Due Year Three		86
Lessee, Operating and Finance Lease, Liability, Payments, Net Of Sublease Income, Due		332,904
Finance Lease, Interest Expense		(130)
Lessee, Operating Lease, Liability, Undiscounted Excess Amount		(140,249)
Lessee, Operating and Finance Lease, Liability, Net Of Sublease Income, Undiscounted Excess Amount		(140,379)
Finance Lease, Liability		574
Operating Lease, Liability		275,209
Finance Lease, Liability, Payments, Due Year Two		200
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating Leases, Thereafter		237,350
Operating Leases, Future Minimum Payments Receivable [Abstract]
Operating and Finance Lease, Liability		$ 192,525

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019
Loss Contingencies [Line Items]
Purchasing commitments contract extended terms	2021
Contractual purchase obligations for goods and services	$ 40,600
Insurance deductible per claim	$ 350
Officers \| Termination Incentive Payments
Loss Contingencies [Line Items]
Base salary and bonus incentive payments after termination, term (in years)	1 year
Contingent liability related to Severance Agreements and Executive Employment Agreements	$ 2,100	$ 3,300

Retirement Plans - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	$ 94,000	$ 86,000	$ 82,000

Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						4 Months Ended		12 Months Ended
	Sep. 10, 2019	Jun. 18, 2019	Mar. 26, 2019	Sep. 11, 2018	Jun. 19, 2018	Mar. 27, 2018	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Condensed Financial Statements, Captions [Line Items]
Total revenue	$ 120,198	$ 121,460	$ 114,197	$ 117,830	$ 117,813	$ 112,554	$ 157,096	$ 157,293	$ 512,951	$ 505,490	$ 471,456
Income from operations	(3,450)	4,517	3,659	9,195	7,804	6,338	(111,769)	10,696	(107,043)	34,033	41,247
Net (loss) income	$ (7,669)	$ 2,092	$ 1,425	$ 5,874	$ 4,210	$ 3,229	$ (114,133)	$ 5,646	$ (118,285)	$ 18,959	$ 49,871
(Loss) earnings per share:
Basic (in dollars per share)	$ (0.21)	$ 0.06	$ 0.04	$ 0.15	$ 0.11	$ 0.08	$ (3.08)	$ 0.15	$ (3.20)	$ 0.50	$ 1.29
Diluted (in dollars per share)	$ (0.21)	$ 0.06	$ 0.04	$ 0.15	$ 0.11	$ 0.08	$ (3.08)	$ 0.15	$ (3.20)	$ 0.49	$ 1.25

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

+ 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ 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. 12, 2020 USD ($)	Mar. 24, 2020 USD ($)	Dec. 31, 2019 USD ($) restaurant	Jan. 01, 2019 USD ($) restaurant	Jan. 02, 2018 USD ($) restaurant
Subsequent Event [Line Items]
Proceeds from disposal of property and equipment, net			$ 14,107	$ 1,323	$ 9,907
Company-operated restaurants sold to franchisees \| restaurant			31	0	5
Proceeds from Divestiture of Businesses			$ 7,187	$ 0	$ 2,192
Acquisition of franchisees			$ 4,832	1,841	$ 1,128
Lease agreement term (in years)			50 years
Net proceeds from sale-leaseback arrangements				$ 9,900
Subsequent Event
Subsequent Event [Line Items]
Proceeds from disposal of property and equipment, net	$ 1,200	$ 1,400
Restaurant Land And Building \| Subsequent Event
Subsequent Event [Line Items]
Lease agreement term (in years)		20 years

Schedule II - Valuation and Qualifying Accounts (Details) - SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 76	$ 57	$ 57
Charged to costs and expenses	41	45	0
Charge to other accounts	0	0	0
Deductions	30	26	0
Balance at end of period	$ 87	$ 76	$ 57