Stock-Based Compensation (Tables)

9 Months Ended

Dec. 27, 2014

Schedule of assumptions used to determine fair value of stock options

	Thirteen Weeks Ended		Thirty-Nine Weeks Ended
	December 27, 2014	December 28, 2013	December 27, 2014	December 28, 2013

Expected option term(1)	6.5 years	6.5 years	6.5 years	6.5 years
Expected volatility factor(2)	38.6% - 55.0%	56.0%	38.6% - 56.0%	56.0%
Risk-free interest rate(3)	1.7% - 1.8%	1.9%	1.7% - 2.0%	1.9% - 2.0%
Expected annual dividend yield(4)	0%	0%	0%	0%

(1)

The Company has limited historical information regarding expected option term. Accordingly, the Company determined the expected life of the options using the simplified method.

(2)

Stock volatility for each grant is measured using the weighted average of historical daily price changes of the Company’s competitors’ common stock over the most recent period equal to the expected option term of the Company’s awards.

(3)

The risk-free interest rate is determined using the rate on treasury securities with the same term.

(4)

The board of directors paid a dividend to stockholders in April 2014. The Company’s board of directors does not plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero.

Schedule of stock award activity

The following table summarizes the stock award activity for the thirty-nine weeks ended December 27, 2014 (aggregate intrinsic value in thousands):

		Grant Date		Weighted
		Weighted-		Average
		Average		Remaining	Aggregate
	Stock	Exercise		Contractual	Intrinsic
	Options	Price(1)		Life (in Years)	Value

Outstanding at March 29, 2014	2,515,000	$	5.97
Granted	362,150	$	12.21
Cancelled, forfetied or expired	—	$	—
Outstanding at December 27, 2014	2,877,150	$	6.76	7.7	$	33,556
Vested and expected to vest at December 27, 2014	2,877,150	$	6.76	7.7	$	33,556
Exerciseable at December 27, 2014	962,850	$	6.61	7.4	$	11,372

(1)

The grant date weighted-average exercise price reflects the reduction of the exercise price by $2.00 per share for the 1,918,550 unvested options that were part of the April 2014 dividend discussed above.

Schedule of non-vested stock options

			Weighted-
			Average
			Grant Date
	Shares		Fair Value

Nonvested at March 29, 2014	1,793,550		$	3.55
Granted	362,150		$	6.55
Vested	(241,400	)	$	4.63
Nonvested shares forfeited	—		$	—
Nonvested at December 27, 2014	1,914,300		$	3.98

CEO

Schedule of assumptions used to determine fair value of stock options

The following significant assumptions were used as of October 29, 2014:

Stock price	$	16.00
Exercise price	$	16.00
Expected option term	6.0 years
Expected volatility	55.0		%
Risk-free interest rate	1.8		%
Expected annual dividend yield	0		%