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Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 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

 

 

For the Thirty-Nine Weeks Ended

 

 

 

September 30, 2025

 

 

October 1, 2024

 

 

September 30, 2025

 

 

October 1, 2024

 

Labor and benefits

 

$

625

 

 

$

727

 

 

$

1,890

 

 

$

1,764

 

General and administrative

 

 

1,608

 

 

 

186

 

 

 

4,200

 

 

 

4,392

 

Capitalized (1)

 

 

63

 

 

 

92

 

 

 

232

 

 

 

255

 

Total stock-based compensation

 

$

2,296

 

 

$

1,005

 

 

$

6,322

 

 

$

6,411

 

 

(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 Thirty-Nine Weeks Ended

 

 

 

September 30, 2025

 

 

October 1, 2024

 

Volatility

 

 

56.6

%

 

 

67.5

%

Risk-free interest rate

 

 

4.2

%

 

 

3.9

%

Expected life (years)

 

5

 

 

5

 

Expected dividend yield

 

 

%

 

 

%

Fair value of options granted

 

$

19.78

 

 

$

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

 

 

92

 

 

 

37.98

 

 

 

 

 

 

 

Exercised

 

 

(190

)

 

 

36.03

 

 

 

 

 

 

 

Forfeited

 

 

(105

)

 

 

42.57

 

 

 

 

 

 

 

Outstanding at September 30, 2025

 

 

730

 

 

$

39.26

 

 

 

563

 

 

$

40.45

 

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

 

 

186

 

 

 

36.66

 

Released

 

 

(166

)

 

 

28.63

 

Forfeited

 

 

(83

)

 

 

30.43

 

Outstanding at September 30, 2025

 

 

709

 

 

$

32.51

 

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 Thirty-Nine Weeks Ended

 

 

 

September 30, 2025

 

 

October 1, 2024

 

Volatility

 

 

48.0

%

 

 

49.8

%

Risk-free interest rate

 

 

4.2

%

 

 

3.8

%

Expected life (years)

 

 

3

 

 

3

 

Expected dividend yield

 

 

%

 

 

%

Fair value of market-based awards granted

 

$

37.98

 

 

$

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

 

Granted

 

 

112

 

 

 

37.39

 

Released

 

 

(39

)

 

 

32.27

 

Forfeited

 

 

(30

)

 

 

35.06

 

Outstanding at September 30, 2025

 

 

126

 

 

$

36.58