7. Stock-Based Compensation

During the three months ended March 31, 2019, we granted stock only stock appreciation rights (“SOSARs”) on 179 shares of our common stock to eligible employees. The weighted-average grant date fair value of the SOSARs was $172.28 per share with a weighted-average exercise price of $584.90 per share. The SOSARs vest in two equal installments on the second and third anniversary of the grant date. During the three months ended March 31, 2019, 412 SOSARs were exercised, 15 SOSARs were forfeited, and 45 SOSARs expired.

During the three months ended March 31, 2019, we granted restricted stock units (“RSUs”) on 21 shares of our common stock to eligible employees. The weighted-average grant date fair value of the RSUs was $585.62 per share. The RSUs generally vest in two equal installments on the second and third anniversary of the grant date. During the three months ended March 31, 2019, 42 RSUs vested and 6 RSUs were forfeited.

During the three months ended March 31, 2019, we awarded a total of 46 performance shares (“PSUs”) that are subject to service and performance vesting conditions. The weighted-average grant date fair value of the PSUs was $582.77 per share, and the quantity of shares that will vest range from 0% to 300% of the targeted number of shares. If the defined minimum targets are not met, then no shares will vest. During the three months ended March 31, 2019, there were two different PSU awards granted with different terms.

The first award, consisting of 33 PSUs, will vest based on our growth in comparable restaurant sales and average restaurant margin over defined periods. These PSU awards will vest fully on the third anniversary of the grant date.

The second award, consisting of 13 PSUs, will vest based on achievement of certain targets related to digital sales volume, general and administrative expenses as a percentage of revenue, and successful completion of a defined number of strategic initiatives. These PSU awards will vest 40% on the third anniversary of the grant date and 60% on the fourth anniversary of the grant date.

During the three months ended March 31, 2019, 12 PSUs that were subject to service and market conditions were forfeited for failure to meet the specified performance levels or service requirements.

The following table sets forth total stock-based compensation expense:



	Three months ended
	March 31,
	2019		2018
Stock-based compensation expense	$	19,342	$	12,376
Stock-based compensation expense, net of tax	$	14,402	$	8,931
Stock-based compensation expense recognized as capitalized development	$	188	$	279
Excess tax deficit on stock-based compensation recognized in provision for income taxes	$	(5,434)	$	(5,542)