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Stock-Based Compensation (Tables)
3 Months Ended
Apr. 01, 2025
Stock-Based Compensation Recognized within Our Consolidated Financial Statements

The following table presents the stock-based compensation recognized within our consolidated financial statements (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

 

April 1, 2025

 

 

April 2, 2024

 

Labor and benefits

 

$

400

 

 

$

508

 

General and administrative

 

$

1,550

 

 

$

1,969

 

Capitalized (1)

 

$

90

 

 

$

84

 

Total stock-based compensation

 

$

2,040

 

 

$

2,561

 

 

(1)
Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on the Consolidated Balance Sheets.
Black-Scholes Option-Pricing Model, Assumptions to Estimate the Fair Value of Each Stock Option

The fair value of each stock option was estimated on the grant date using the Black‑Scholes option-pricing model with the following assumptions:

 

 

 

For the Thirteen Weeks Ended

 

 

 

April 1, 2025

 

 

April 2, 2024

 

Volatility

 

 

67.9

%

 

 

67.5

%

Risk-free interest rate

 

 

4.6

%

 

 

3.9

%

Expected life (years)

 

5

 

 

5

 

Expected dividend yield

 

 

%

 

 

%

Fair value of options granted

 

$

20.62

 

 

$

18.86

 

Stock Option Activity

Under our stock-based compensation plan, the exercise price of a stock option is required to equal or exceed the fair value of our common stock at market close on the option grant date or the last trading day prior to the date of grant when grants take place on a day when the market is closed. The following table presents stock option activity:

 

 

 

Options Outstanding

 

 

Options Exercisable

 

 

 

Shares
(in thousands)

 

 

Weighted
Average
Exercise
Price

 

 

Shares
(in thousands)

 

 

Weighted
Average
Exercise
Price

 

Outstanding at December 31, 2024

 

 

933

 

 

$

39.10

 

 

 

741

 

 

$

41.00

 

Granted

 

 

35

 

 

 

34.28

 

 

 

 

 

 

 

Exercised

 

 

(23

)

 

 

29.81

 

 

 

 

 

 

 

Forfeited

 

 

(83

)

 

 

44.71

 

 

 

 

 

 

 

Outstanding at April 1, 2025

 

 

862

 

 

$

38.61

 

 

 

719

 

 

$

39.81

 

Service-Based Restricted Stock Units  
Restricted Stock Unit Activity

The following table presents service-based restricted stock unit activity:

 

 

 

Shares
(in thousands)

 

 

Weighted
Average
Fair Value

 

Outstanding at December 31, 2024

 

 

772

 

 

$

30.45

 

Granted

 

 

85

 

 

 

34.28

 

Released

 

 

(99

)

 

 

32.70

 

Forfeited

 

 

(32

)

 

 

30.94

 

Outstanding at April 1, 2025

 

 

726

 

 

$

30.57

 

Market-Based and Performance-Based Restricted Stock Units  
Monte Carlo Simulation Model, Assumptions Used to Estimate the Fair Value of Performance-Based RSUs

The fair value of performance-based RSUs, which include a market-based metric, was estimated on the grant date using the Monte Carlo simulation model with the following assumptions:

 

 

 

For the Thirteen Weeks Ended

 

 

 

April 1, 2025

 

 

April 2, 2024

 

Volatility

 

 

47.1

%

 

 

49.8

%

Risk-free interest rate

 

 

4.3

%

 

 

3.8

%

Expected life (years)

 

3

 

 

3

 

Expected dividend yield

 

 

%

 

 

%

Fair value of market-based awards granted

 

$

34.28

 

 

$

34.79

 

Performance-Based Restricted Stock Units  
Restricted Stock Unit Activity

The following table presents performance-based restricted stock unit activity:

 

 

 

Shares
(in thousands)

 

 

Weighted
Average
Fair Value

 

Outstanding at December 31, 2024

 

 

83

 

 

$

32.89

 

Awarded

 

 

90

 

 

 

37.40

 

Released

 

 

(39

)

 

 

32.27

 

Forfeited

 

 

(13

)

 

 

33.59

 

Outstanding at April 1, 2025

 

 

121

 

 

$

36.38