For the nine months ended September 30, 2022, we granted stock only stock appreciation rights (“SOSARs”) on 94 shares of our common stock to eligible employees. The weighted-average grant date fair value of the SOSARs was $455.08 per share with a weighted-average exercise price of $1,560.51 per share. The SOSARs vest in two equal installments on the second and third anniversary of the grant date. For the nine months ended September 30, 2022, 77 SOSARs were exercised, and 20 SOSARs were forfeited.

For the nine months ended September 30, 2022, we granted restricted stock units (“RSUs”) on 29 shares of our common stock to eligible employees. The weighted-average grant date fair value of the RSUs was $1,563.14 per share. The RSUs generally vest in two equal installments on the second and third anniversary of the grant date. For the nine months ended September 30, 2022, 23 RSUs vested and 8 RSUs were forfeited.

For the nine months ended September 30, 2022, we awarded performance share units (“PSUs”) on 24 shares of our common stock at target performance to eligible employees. These PSUs are subject to service, market and performance vesting conditions. The weighted-average grant date fair value of the PSUs was $1,569.39 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. Further, in no event may more than 100% of the target number of PSUs vest if our 3 year total shareholder return is below the 25^th percentile of the constituent companies comprising the S&P 500 on the day of grant. For the nine months ended September 30, 2022, 55 PSUs vested, and 6 PSUs were forfeited.

On December 30, 2020, due to the impact that the novel coronavirus (COVID-19) pandemic had on the growth in comparable restaurant sales and restaurant margin relative to the trajectory of both of these performance factors prior to the pandemic, and also due to the significant shareholder value created over the three year performance period of the original award, the Compensation Committee of our Board of Directors modified the 2018 PSU award. This modification pertained to all seven recipients of this award, and resulted in an incremental compensation expense of $71,441, of which $6,145 was recognized during the nine months ended September 30, 2022, compared to $55,463 recognized during the nine months ended September 30, 2021. During the nine months ended September 30, 2022, 0.4 shares were forfeited, resulting in a reversal of $536 of expense. $1,116 remains unamortized as of September 30, 2022. The incremental compensation cost is calculated by multiplying the number of incremental shares generated through the modification by the stock price on the modification date. The stock price on the modification date of December 30, 2020 was $1,374.17.

Based on the terms of the modification, 29 PSUs vested on March 15, 2021, pursuant to the original performance condition of the 2018 PSU award. To receive all incremental shares generated through the modification, the recipients of this award must remain employed through December 31, 2022, and the incremental shares vest in four installments. The first two installments of the modification vested during 2021, which included the vesting of 33 PSUs, and the third installment of the modification vested on June 30, 2022, which included the vesting of 8 PSUs. The unamortized expense associated with the one remaining installment will be recognized over the remaining requisite service period of three months.

On July 27, 2022, we modified certain equity awards of an employee in connection with a separation agreement to allow a short-term extension of vesting of these certain equity awards that would have otherwise vested within eight months of the separation date. This modification impacted one individual and resulted in an incremental compensation expense of $6,701, which was recognized during the three months ended September 30, 2022.



	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Stock-based compensation	$	25,587	$	36,693	$	78,806	$	140,323
Stock-based compensation, net of income taxes	$	22,067	$	32,527	$	67,541	$	125,714
Total capitalized stock-based compensation included in leasehold improvements, property and equipment, net on the condensed consolidated balance sheets	$	437	$	632	$	1,435	$	1,582
Excess tax benefit on stock-based compensation recognized in provision for income taxes on the condensed consolidated statements of income and comprehensive income	$	3,711	$	16,414	$	24,383	$	40,860