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Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2019	Feb. 24, 2020	Jul. 02, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	001-35987
Entity Registrant Name	NOODLES & COMPANY
Entity Central Index Key	0001275158
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-1303469
Entity Address, Address Line One	520 Zang Street, Suite D
Entity Address, City or Town	Broomfield,
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80021
City Area Code	720
Local Phone Number	214-1900
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	NDLS
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 234.1
Entity Common Stock, Shares Outstanding		44,133,803
Documents Incorporated by Reference	Portions of the registrant’s proxy statement relating to its 2020 Annual Meeting of Stockholders, to be held on or about April 30, 2020, are incorporated by reference into Part III of this Annual Report on Form 10-K, where so indicated. Such proxy statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Assets
Cash and cash equivalents	$ 10,459	$ 4,655
Accounts receivable	3,503	2,391
Inventories	9,871	9,646
Prepaid expenses and other assets	5,386	6,474
Income tax receivable	103	185
Total current assets	29,322	23,351
Property and equipment, net	128,867	138,774
Operating lease assets, net	209,717	0
Goodwill	7,154	6,400	$ 6,400
Intangibles, net	883	1,291
Other assets, net	2,576	2,216
Total long-term assets	349,197	148,681
Total assets	378,519	172,032
Current liabilities:
Accounts payable	9,351	7,854
Accrued payroll and benefits	13,479	13,391
Accrued expenses and other current liabilities	11,679	11,183
Current operating lease liabilities	22,775	0
Current portion of long-term debt	750	719
Total current liabilities	58,034	33,147
Long-term debt, net	40,497	44,183
Long-term operating lease liabilities, net	225,014	0
Deferred rent	0	37,334
Deferred tax liabilities, net	200	133
Other long-term liabilities	4,203	4,554
Total liabilities	327,948	119,351
Stockholders’ equity:
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of December 31, 2019 and January 1, 2019; no shares issued or outstanding	0	0
Common stock—$0.01 par value, 180,000,000 shares authorized as of December 31, 2019 and January 1, 2019; 46,557,934 issued and 44,134,063 outstanding as of December 31, 2019 and 46,353,309 issued and 43,929,438 outstanding as of January 1, 2019	466	464
Treasury stock, at cost, 2,423,871 shares as of December 31, 2019 and January 1, 2019, respectively	(35,000)	(35,000)
Additional paid-in capital	200,585	198,352
Accumulated deficit	(115,480)	(111,135)
Total stockholders’ equity	50,571	52,681	$ 35,861	$ 25,818
Total liabilities and stockholders’ equity	$ 378,519	$ 172,032

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Jan. 01, 2019
Preferred stock, par value (USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	180,000,000	180,000,000
Common stock, shares, issued	46,557,934	46,353,309
Common stock, shares, outstanding	44,134,063	43,929,438
Treasury Stock, Shares	2,423,871	2,423,871

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Revenue:
Total revenue	$ 462,411	$ 457,841	$ 456,492
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Cost of sales	117,179	121,102	121,473
Labor	150,565	149,746	150,161
Occupancy	48,863	49,020	51,877
Other restaurant operating costs	66,684	65,575	64,091
General and administrative	43,446	46,092	39,746
Depreciation and amortization	22,086	22,872	24,613
Pre-opening	402	50	935
Restaurant impairments, closure costs and asset disposals	7,747	7,142	37,446
Total costs and expenses	456,972	461,599	490,342
Income (loss) from operations	5,439	(3,758)	(33,850)
Loss on extinguishment of debt	746	626	0
Interest expense, net	2,942	4,305	3,839
Income (loss) before income taxes	1,751	(8,689)	(37,689)
Provision (benefit) for income taxes	104	(248)	(207)
Net income (loss)	1,647	(8,441)	(37,482)
Accretion of preferred stock to redemption value	0	0	(7,967)
Net income (loss) attributable to common stockholders	$ 1,647	$ (8,441)	$ (45,449)
Earnings per share of Class A and Class B common stock, combined:
Basic (USD per share)	$ 0.04	$ (0.20)	$ (1.20)
Diluted (USD per share)	$ 0.04	$ (0.20)	$ (1.20)
Weighted average shares of Class A and Class B common stock outstanding, combined:
Basic (in shares)	44,036,947	42,329,556	37,759,497
Diluted (in shares)	44,976,436	42,329,556	37,759,497
Restaurant revenue
Revenue:
Total revenue	$ 456,671	$ 453,671	$ 451,599
Franchising royalties and fees, and other
Revenue:
Total revenue	$ 5,740	$ 4,170	$ 4,893

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Net income (loss)	$ 1,647	$ (8,441)	$ (37,482)
Other comprehensive loss:
Foreign currency translation adjustments	0	0	(109)
Other comprehensive loss	0	0	109
Comprehensive income (loss)	$ 1,647	$ (8,441)	$ (37,591)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands

Total

Common Stock

Treasury Stock

Additional Paid-In Capital

Accumulated Other Comprehensive Loss

Retained Earnings (Accumulated Deficit)

Preferred stock and warrants

Additional Paid-In Capital

Common stock

Common Stock

Common stock

Additional Paid-In Capital

Beginning balance (in shares) at Jan. 03, 2017

30,300,925

^[1],[2]

2,423,871

Beginning balance at Jan. 03, 2017

$ 25,818

$ 303

^[1],[2]

$ (35,000)

$ 124,272

$ (51)

$ (63,706)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of stock (in shares)

^[1],[2]

8,873,240

Issuance of stock

$ 6,056

$ 29,110

$ 89

^[1],[2]

$ 29,021

Accretion of preferred stock

7,967

Conversion of preferred stock to L Catterton (in shares)

^[1],[2]

4,252,873

Conversion of preferred stock to L Catterton

18,500

$ 43

^[1],[2]

18,457

Stock plan transactions and other (in shares)

^[1],[2]

123,291

Stock plan transactions and other

$ 1

^[2]

Stock-based compensation expense

1,692

Net income (loss)

(37,482)

Other comprehensive income (loss)

Ending balance at Jan. 02, 2018

35,861

$ 436

^[1],[2]

$ (35,000)

171,613

(101,188)

Ending balance (in shares) at Jan. 02, 2018

43,550,329

^[1],[2]

2,423,871

Beginning balance at Jan. 03, 2017

Increase (Decrease) in Temporary Equity [Roll Forward]

Issuance of preferred stock and warrants to L Catterton in connection with the private placement, net of transaction expenses

10,533

Accretion of preferred stock

7,967

Conversion of preferred stock to L Catterton

(18,500)

Ending balance at Jan. 02, 2018

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of stock (in shares)

^[1],[2]

2,500,000

Issuance of stock

$ 22,992

$ 25

^[1],[2]

$ 22,967

Stock plan transactions and other (in shares)

^[1],[2]

302,980

Stock plan transactions and other

749

$ 3

^[2]

746

Stock-based compensation expense

3,026

Net income (loss)

(8,441)

Ending balance at Jan. 01, 2019

52,681

$ 464

^[1],[2]

$ (35,000)

198,352

(111,135)

Ending balance (in shares) at Jan. 01, 2019

46,353,309

^[1],[2]

2,423,871

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock plan transactions and other (in shares)

^[1],[2]

204,625

Stock plan transactions and other

(252)

$ 2

^[2]

(254)

Stock-based compensation expense

2,487

Net income (loss)

1,647

Ending balance at Dec. 31, 2019

$ 50,571

$ 466

^[1],[2]

$ (35,000)

$ 200,585

$ 0

$ (115,480)

Ending balance (in shares) at Dec. 31, 2019

46,557,934

^[1],[2]

2,423,871

[1]	1,522,098 shares of Class B common stock
[2]	Unless otherwise noted, activity relates to Class A common stock

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Operating activities
Net income (loss)	$ 1,647	$ (8,441)	$ (37,482)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	22,086	22,872	24,613
Deferred income taxes, net	68	(283)	(228)
Restaurant impairments, closure costs and asset disposals	7,808	6,992	30,859
Loss on extinguishment of debt	746	626	0
Amortization of debt issuance costs	474	607	465
Stock-based compensation	2,443	2,979	1,514
Loss on liquidation of Canadian subsidiary	0	0	70
Gain on insurance proceeds received for property damage	(489)	(370)	0
Changes in operating assets and liabilities:
Accounts receivable	(630)	91	2,976
Inventories	(625)	(541)	(387)
Prepaid expenses and other assets	(690)	185	332
Accounts payable	406	(1,580)	(1,302)
Deferred rent	0	(1,396)	1,597
Operating lease assets and liabilities	(2,202)	0	0
Income taxes	82	(109)	180
Accrued expenses and other liabilities	(1,064)	(16,286)	(19,105)
Net cash provided by operating activities	30,060	5,346	4,102
Investing activities
Purchases of property and equipment	(17,404)	(14,338)	(20,828)
Franchise restaurant acquisition, net of cash acquired	(1,387)	0	0
Proceeds from disposal of property and equipment	352	0	0
Insurance proceeds received for property damage	0	500	0
Net cash used in investing activities	(18,439)	(13,838)	(20,828)
Financing activities
Net repayments from swing line loan	0	(101)	(96)
Proceeds from borrowings on long-term debt	1,917	74,889	10,532
Payments on long-term debt	(5,875)	(87,030)	(37,015)
Debt issuance costs	(917)	(1,713)	(938)
Payment of finance leases	(690)	0	0
Issuance of preferred stock and common stock warrants, net of transaction expenses	0	0	16,589
Issuance of common stock, net of transaction expenses	0	22,992	29,110
Stock plan transactions and tax withholding on share-based compensation awards	(252)	749	83
Net cash (used in) provided by financing activities	(5,817)	9,786	18,265
Effect of exchange rate changes on cash	0	0	(15)
Net increase in cash and cash equivalents	5,804	1,294	1,524
Cash and cash equivalents
Beginning of year	4,655	3,361	1,837
End of year	$ 10,459	$ 4,655	$ 3,361

Business and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Business and Summary and Basis of Presentation

Business and Summary of Significant Accounting Policies

Business

Noodles & Company (the “Company” or “Noodles & Company”), a Delaware corporation, develops and operates fast-casual restaurants that serve globally-inspired noodle and pasta dishes, soups, salads and appetizers. As of December 31, 2019, the Company had 389 company-owned restaurants and 68 franchise restaurants in 29 states and the District of Columbia. The Company operates its business as one operating and reportable segment.

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All intercompany balances and transactions are eliminated in consolidation.

Fiscal Year

The Company operates on a 52- or 53-week fiscal year ending on the Tuesday closest to December 31. Fiscal years 2019, 2018 and 2017, which ended on December 31, 2019, January 1, 2019, and January 2, 2018, respectively, each contained 52 weeks.

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investment instruments with an initial maturity of three months or less when purchased to be cash equivalents. Amounts receivable from credit card processors are converted to cash shortly after the related sales transaction and are considered to be cash equivalents because they are both short-term and highly liquid in nature. Amounts receivable from credit card processors as of December 31, 2019 and January 1, 2019, which are included in cash and cash equivalents, were $1.0 million and $1.6 million, respectively. Additionally, the Company records “book overdrafts” when outstanding checks at year end are in excess of cash and cash equivalents. Such book overdrafts are recorded within accounts payable in the accompanying Consolidated Balance Sheets and within operating activities in the accompanying Consolidated Statements of Cash Flows.

Accounts Receivable

Accounts receivable consists primarily of franchise receivables and vendor rebates, as well insurance receivables and other miscellaneous receivables arising from the normal course of business. The Company believes all amounts to be collectible and does not have a history of losses. Accordingly, no allowance for doubtful accounts has been recorded as of December 31, 2019 or January 1, 2019.

Inventories

Inventories consist of food, beverages, supplies and smallwares, and are stated at the lower of cost (first-in, first-out method) or net realizable value. Smallwares inventory, which consist of the plates, silverware and cooking utensils used in the restaurants, are frequently replaced and are therefore considered current assets. Replacement costs of smallwares inventory are recorded as other restaurant operating costs in the Consolidated Statements of Operations and are expensed as incurred. As of December 31, 2019 and January 1, 2019, smallwares inventory of $6.6 million and $6.5 million, respectively, was included in the accompanying Consolidated Balance Sheets.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation. Expenditures for major renewals and improvements are capitalized, while expenditures for minor replacements and maintenance and repairs are expensed as incurred. Upon retirement or disposal of assets, the accounts are relieved of cost and accumulated depreciation and the related gain or loss is reflected in earnings. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful life or the lease term, which generally includes option periods that are reasonably assured to be exercised. Depreciation and amortization expense on property and equipment, including assets recorded as finance leases, was $22.0 million, $22.7 million and $24.5 million in 2019, 2018 and 2017, respectively.

The estimated useful lives for property and equipment are:



Property and Equipment		Estimated Useful Lives
Leasehold improvements		Shorter of lease term or estimated useful life, not to exceed 20 years
Furniture and fixtures		3 to 15 years
Equipment		3 to 7 years

The Company capitalizes internal payroll and payroll-related costs directly related to the successful acquisition, development, design and construction of its new restaurants. Capitalized internal costs were $0.4 million, $0.2 million and $0.9 million in 2019, 2018 and 2017, respectively. Interest incurred on funds used to construct company-owned restaurants is capitalized and amortized over the estimated useful life of the related assets. Capitalized interest totaled $0.3 million, $0.1 million and $0.2 million in 2019, 2018 and 2017, respectively.

Goodwill

Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired. Goodwill is not subject to amortization, but instead is tested for impairment at least annually (or more often, if necessary) as of the first day of the Company’s fourth fiscal quarter.

Goodwill is evaluated at the level of the Company’s single operating segment, which also represents the Company’s only reporting unit. In 2019 and 2018, the Company performed a qualitative impairment assessment. Under this approach, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. If after performing the qualitative assessment, the Company determines there is less than a 50 percent chance that the fair value of its reporting unit is less than its carrying amount, then performing the two-step test is unnecessary. Based on the qualitative assessment performed, management did not believe that it is more likely than not that the Company’s goodwill has been impaired.

In 2017, the Company performed the two-step quantitative analysis. Under the two-step approach, step one of the impairment test is based upon a comparison of the carrying value of net assets, including goodwill balances, to the fair value of net assets. Fair value is measured using a combination of the income approach and the market approach. The income approach consists of utilizing the discounted cash flow method that incorporates the Company’s estimates of future revenues and costs, discounted using a risk-adjusted discount rate.

Based on the Company’s analysis, no impairment charges were recognized on goodwill in 2019, 2018 or 2017.

Intangibles, net

Intangibles, net consists primarily of reacquired franchise rights, trademarks and transferable liquor licenses. The Company amortizes the fair value of reacquired franchise rights over the remaining contractual terms of the reacquired franchise area development agreements at the time of acquisition, which ranged from approximately six years to 13 years as of December 31, 2019. Trademark rights are considered indefinite-lived intangible assets, the carrying value of which are analyzed for impairment at least annually (or more often, if necessary). Transferable liquor licenses are carried at the lower of cost or fair value and are evaluated annually for impairment or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. If the assets are determined to be impaired, the amount of impairment recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Estimates of future cash flows are based on the Company’s experience and knowledge of local operations. During 2019, 2018 and 2017, the Company recorded impairment charges of certain long-lived assets which are included in restaurant impairments, closure costs and asset disposals in the Consolidated Statements of Operations. See Note 6, Restaurant Impairments, Closure Costs and Asset Disposals. Fair value of the restaurant assets was determined using Level 3 inputs (as described in Note 5, Fair Value Measurements).

Debt Issuance Costs

Certain fees and costs incurred to obtain long-term financing are capitalized and included as a reduction in the net carrying value of long-term debt, net of accumulated amortization. These costs are amortized to interest expense over the term of the related debt. When debt is extinguished prior to its maturity date, the amortization of the remaining unamortized debt issuance costs, or pro-rata portion thereof, is charged to loss on extinguishment of debt. Debt issuance costs of $1.4 million and $1.7 million, net of accumulated amortization, as of December 31, 2019 and January 1, 2019, respectively, are included as a reduction of long-term debt in the Consolidated Balance Sheets.

Self-Insurance Programs

The Company self-insures for health, workers’ compensation, general liability and property damage. Predetermined loss limits have been arranged with insurance companies to limit the Company’s per occurrence cash outlay. Estimated costs to settle reported claims and incurred but unreported claims for health and workers’ compensation self-insured plans are recorded in accrued payroll and benefits and for general liability and property damage in accrued expenses and other liabilities in the Consolidated Balance Sheets.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company’s cash balances may exceed federally insured limits. Credit card transactions at the Company’s restaurants are processed by one service provider. Concentration of credit risk related to accounts receivable are limited, as the Company’s receivables are primarily amounts due from franchisees and the Company directly pulls the amounts owed from the franchisees bank accounts.

Revenue Recognition

Revenue consists of sales from restaurant operations and franchise royalties and fees. Revenue from the operation of company-owned restaurants are recognized when sales occur. The Company reports revenue net of sales and use taxes collected from customers and remitted to governmental taxing authorities.

Gift Cards

The Company sells gift cards which do not have an expiration date, and it does not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards when the gift card is redeemed by the customer or the Company determines the likelihood of the gift card being redeemed by the customer is remote (“gift card breakage”). The determination of the gift card breakage rate is based upon Company-specific historical redemption patterns. The Company has determined that approximately 9% of gift cards will not be redeemed, which is recognized ratably over the estimated redemption period of the gift card, approximately 24 months.

Loyalty Program

Beginning in 2019, Customers who register on the Noodles App are automatically enrolled in the Noodles Rewards program, which is primarily a spend-based loyalty program. With each purchase, Noodles Rewards members earn loyalty points that can be redeemed for rewards, including free products. Using an estimate of the value of reward redemptions, we defer revenue associated with points earned, net of estimated points that will not be redeemed. Points generally expire after six months. Revenue is recognized in a future period when the reward points are redeemed.

Franchise Royalties

Royalties from franchise restaurants are based on a percentage of restaurant revenues and are recognized in the period the related franchised restaurants’ sales occur. Development fees and franchise fees, portions of which are collected in advance, are nonrefundable. The Company has determined that the initial franchise services are not distinct from the continuing rights or services offered during the term of the franchise agreement and should be treated as a single performance obligation; therefore, such fees are recognized in income ratably over the term of the related franchise agreement or recognized upon the termination of the agreement between the Company and the franchisee.

As of December 31, 2019, January 1, 2019 and January 2, 2018, there were 68, 65 and 66 franchise restaurants in operation, respectively. Franchisees opened one restaurant and acquired five company-owned locations in 2019 and opened three restaurants in 2017. There were no franchise restaurants opened in 2018.

Pre-Opening Costs

Pre-opening costs, including rent, wages, benefits and travel for the training and opening teams, food, beverage and other restaurant operating costs, are expensed as incurred prior to a restaurant opening for business.

Advertising and Marketing Costs

Advertising and marketing costs are expensed as incurred and were $6.1 million, $6.0 million and $5.7 million in 2019, 2018 and 2017, respectively. These costs are included in restaurant operating costs, general and administrative expenses and pre-opening costs based on the nature of the advertising and marketing costs incurred.

Rent

Rent expense for the Company’s leases, which generally have escalating rentals over the term of the lease, is recorded on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce the right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term. Some of the Company’s leases include rent escalations based on inflation indexes and fair market value adjustments. Certain leases contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales in excess of stipulated amounts. Lease expense associated with rent escalation and contingent rental provisions is not material and is included within operating lease cost. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As most of the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

Provision (Benefit) for Income Taxes

Provision (benefit) for income taxes is accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those deferred amounts are expected to be recovered or settled. Valuation allowances are recorded for deferred tax assets that more likely than not will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s policy is to recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in provision (benefit) for income taxes in the Consolidated Statements of Operations.

Stock-Based Compensation Expense

Stock-based compensation expense is measured at the grant date based upon the estimated fair value of the portion of the award that is ultimately expected to vest and is recognized as expense over the applicable vesting period of the award generally using the straight-line method (see Note 9, Stock-Based Compensation for more information).

Foreign Currency Translation

In 2017, the Company ceased its Canadian operations and liquidated the related assets. The Canadian dollar was the functional currency for the Company’s Canadian restaurant operations. Assets and liabilities denominated in Canadian dollars were translated into U.S. dollars at exchange rates in effect as of the balance sheet dates. Income and expense accounts were translated using the

average exchange rates prevailing throughout the period. Translation adjustments from currency exchange were recorded in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Gains or losses from foreign currency transactions were recognized in the Consolidated Statements of Operations.

Recently Issued Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 was issued as a means to reduce the complexity of accounting for income taxes for those entities that fall within the scope of the accounting standard. The guidance is to be applied using a prospective method, excluding amendments related to franchise taxes, which should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. We are currently evaluating the impacts of adoption of the new guidance to our consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, followed by other related ASUs that provided targeted improvements (collectively “ASU 2016-13”). ASU 2016-13 provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The guidance is to be applied using a modified retrospective method and is effective for fiscal years beginning after December 15, 2022 for smaller reporting companies, with early adoption permitted. The Company adopted ASU 2016-13 on January 1, 2020. The adoption of ASU 2016-13 is not expected to result in a material impact to the Company’s consolidated financial statements or disclosures.

Recently Adopted Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, “Revenue Recognition.” This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract.

The Company adopted Topic 606 at the beginning of the first quarter of 2018 using the modified retrospective method. The comparative information for fiscal 2017 has not been restated and continues to be reported under the accounting standards then in effect for those periods. The adoption of these standards did not have a material impact on the Company’s Consolidated Statements of Operations in 2018. The primary impact of adoption was the enhancement of the Company’s disclosures related to contracts with customers and revenue recognized from those performance obligations, which includes revenue related to initial fees charged to franchisees and revenue recognized related to gift cards. See Note 16, Revenue Recognition.

Further, the Company implemented internal controls related to the recognition and presentation of the Company’s revenues under this new standard.

On January 2, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842),” along with related clarifications and improvements. This pronouncement requires a lessee to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. The Company elected the alternative transition method to apply the standard as of the beginning of the period of adoption; therefore, the Company has not applied the standard to the comparative periods presented on its condensed consolidated financial statements.

The adoption of this lease guidance did have a material impact on the Company’s Consolidated Balance Sheets by materially increasing its non-current assets and current and non-current liabilities due to the recognition of the right-of-use assets and related lease liabilities primarily related to the Company’s restaurant operating leases and corporate office space. Upon adoption, the right-of-use assets were based upon the operating lease liabilities adjusted for prepaid and deferred rent, liabilities associated with lease termination costs and impairment of right-of-use assets. The impairment of right-of-use assets upon adoption was recognized in retained earnings as of January 2, 2019.

The adoption of the standard did not have a material impact on the Company’s Consolidated Statements of Operations in 2019. The adoption also included the enhancement of the Company’s disclosures related to leases. See disclosure in Note 12, Leases.

The impact on the Consolidated Balance Sheet on the date of adoption was as follows:



	January 1, 2019			Adjustments Due to the Adoption of Topic 842			January 2, 2019
Assets
Current assets:
Cash and cash equivalents	$	4,655		$	—		$	4,655
Accounts receivable	2,391			225			2,616
Inventories	9,646			—			9,646
Prepaid expenses and other assets	6,474			(3,243		)	3,231
Income tax receivable	185			—			185
Total current assets	23,351			(3,018		)	20,333
Property and equipment, net	138,774			844			139,618
Operating lease assets, net	—			219,883			219,883
Goodwill	6,400			—			6,400
Intangibles, net	1,291			(67		)	1,224
Other assets, net	2,216			—			2,216
Total long-term assets	148,681			220,660			369,341
Total assets	$	172,032		$	217,642		$	389,674
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	7,854		$	—		$	7,854
Accrued payroll and benefits	13,391			—			13,391
Accrued expenses and other current liabilities	11,183			(553		)	10,630
Current operating lease liabilities	—			—			—
Current portion of long-term debt	719			—			719
Total current liabilities	33,147			(553		)	32,594
Long-term debt, net	44,183			—			44,183
Long-term operating lease liabilities, net	—			260,931			260,931
Deferred rent	37,334			(37,186		)	148
Deferred tax liabilities, net	133			—			133
Other long-term liabilities	4,554			442			4,996
Total liabilities	119,351			223,634			342,985

Stockholders’ equity:
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of January 1, 2019; no shares issued or outstanding	—			—			—
Common stock—$0.01 par value, 180,000,000 shares authorized as of January 1, 2019; 46,353,309 issued and 43,929,438 outstanding as of January 1, 2019	464			—			464
Treasury stock, at cost, 2,423,871 shares as of January 1, 2019	(35,000		)	—			(35,000		)
Additional paid-in capital	198,352			—			198,352
Accumulated deficit	(111,135		)	(5,992		)	(117,127		)
Total stockholders’ equity	52,681			(5,992		)	46,689
Total liabilities and stockholders’ equity	$	172,032		$	217,642		$	389,674

Supplemental Financial Information

12 Months Ended

Dec. 31, 2019

Supplemental Financial Information [Abstract]

Supplemental Financial Information

Accounts receivable consist of the following (in thousands):



	2019		2018
Tenant improvement receivables	$	—	$	82
Insurance receivable	744		69
Vendor rebate receivables	788		639
Franchise and other receivables	1,971		1,601
	$	3,503	$	2,391

In connection with the adoption of Topic 842, tenant improvement receivables are presented as a reduction to the lease liability as of December 31, 2019.

Prepaid expenses and other assets consist of the following (in thousands):



	2019		2018
Prepaid occupancy related costs	$	834	$	4,053
Other prepaid expenses	2,799		2,416
Other current assets	1,753		5
	$	5,386	$	6,474

Property and equipment, net, consist of the following (in thousands):



	2019			2018
Leasehold improvements	$	200,580		$	197,571
Furniture, fixtures and equipment	122,752			121,479
Construction in progress	2,890			3,620
	326,222			322,670
Accumulated depreciation and amortization	(197,355		)	(183,896		)
	$	128,867		$	138,774

Assets and Liabilities Held for Sale

In December 2019, the Company entered into a definitive agreement to sell nine restaurants to a franchisee (“RCRG Sale”). In January 2020, the Company closed the RCRG Sale. The assets and liabilities associated with the RCRG Sale have been recorded in “Prepaid expenses and other assets” and “Accrued expenses and other current liabilities” on the Consolidated Balance Sheets as of December 31, 2019. In addition, the Company recorded a $3.6 million write down of assets related to this transaction during the year ended December 31, 2019, included in "Restaurant impairments, closure costs and asset disposals" on the Consolidated Statements of Operations. The following table presents the carrying amounts of the major classes of assets and liabilities classified as held for sale (in thousands):



	2019
Assets
Current assets, total	$	339
Current operating lease assets	1,408
Current assets held for sale	1,747
Liabilities
Current operating lease liabilities	1,710
Net assets held for sale	$	37

Accrued payroll and benefits consist of the following (in thousands):



	2019		2018
Accrued payroll and related liabilities	$	6,364	$	6,333
Accrued bonus	3,505		4,250
Insurance liabilities	3,610		2,808
	$	13,479	$	13,391

Accrued expenses and other current liabilities consist of the following (in thousands):



	2019		2018
Gift card liability	$	2,398	$	3,284
Occupancy related	1,458		2,600
Utilities	1,379		1,582
Deferred revenue	555		—
Current portion of finance lease liability	510		264
Other current liabilities	5,379		3,453
	$	11,679	$	11,183

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The following table presents goodwill as of December 31, 2019 and January 1, 2019, (in thousands):



	2019		2018
Balance at beginning of year	$	6,400	$	6,400
Acquisition⁽¹⁾	754		—
Balance at end of year	$	7,154	$	6,400

____________________

(1) During the first quarter of 2019, we acquired one franchise restaurant.

The Company had no goodwill impairment charges in 2019, 2018 or 2017.

The following table presents intangible assets subject to amortization as of December 31, 2019 and January 1, 2019, (in thousands):



	2019			2018
Amortized intangible assets:
Reacquired franchise rights	$	992		$	1,125
Favorable leases	—			150
	992			1,275
Accumulated Amortization	(388		)	(436		)
	604			839
Non-amortized intangible assets:
Trademark rights and transferable liquor licenses	279			452
	$	883		$	1,291

Upon adoption of the new lease guidance on January 2, 2019, the net book value of favorable lease intangible assets amounting to $0.1 million was reclassified to the right-of-use asset.

The estimated aggregate future amortization expense as of December 31, 2019 is as follows, (in thousands):



2020	$	70
2021	70
2022	72
2023	70
2024	70
Thereafter	252
	$	604

No impairment charges were recorded related to non-amortized intangible assets in 2019, 2018 or 2017.

Long-Term Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt

2018 Credit Facility

On May 9, 2018, the Company entered into a credit facility with U.S. Bank National Association (the “2018 Credit Facility”). The 2018 Credit Facility consisted of a term loan facility in an aggregate principal amount of $25.0 million and a revolving line of credit of $65.0 million, which included a letter of credit subfacility in the amount of $15.0 million and a swingline subfacility in the amount of $10.0 million. The 2018 Credit Facility had a four-year term with a maturity date of May 9, 2022.

Amended Credit Facility

On November 20, 2019, the Company amended its 2018 Credit Facility by entering into the First Amendment to the Credit Facility (the “Amendment” or “Amended Credit Facility”). Among other things, the Amendment: (i) extended the maturity date to November 20, 2024; (ii) increased the revolving credit facility from $65.0 million to $75.0 million; (iii) delayed step downs of the Company’s leverage covenant; and (iv) increased the limit on capital expenditures to $37.0 million in 2020 and to $45.0 million in 2021 and each fiscal year thereafter. We wrote off unamortized debt issuance costs related to the 2018 Credit Facility and recognized a loss on extinguishment of debt in the amount of $0.7 million in 2019.

Borrowings under the Amended Credit Facility, including the term loan facility, bear interest annually, at the Company’s option, at either (i) LIBOR plus a margin of 2.00% to 2.75% per annum, based upon the consolidated total lease-adjusted leverage ratio or (ii) the highest of the following base rates plus a margin of 1.00% to 1.75% per annum: (a) the federal funds rate plus 0.50%; (b) the U.S. Bank prime rate or (c) the one-month LIBOR plus 1.00%. The Amendment includes a commitment fee of 0.20% to 0.35% per annum, based upon the consolidated total lease-adjusted leverage ratio, on any unused portion of the revolving credit facility.

As of December 31, 2019, the Company had $42.6 million of indebtedness (excluding $1.4 million of unamortized debt issuance costs) and $3.2 million of letters of credit outstanding under the Amended Credit Facility. The term loan requires principal payments of $187,500 per quarter through the third quarter of 2021, $375,000 through the third quarter of 2022, $531,250 through the third quarter of 2023 and $625,000 per quarter thereafter through maturity.

Aggregate maturities for debt outstanding as of December 31, 2019 are as follows (in thousands):



Year 1	$	750
Year 2	938
Year 3	1,656
Year 4	2,219
Year 5	37,055
Total	$	42,618

The Company also maintains outstanding letters of credit to secure obligations under its workers’ compensation program and certain lease obligations. As of December 31, 2019, the Company was in compliance with all of its debt covenants.

The Amended Credit Facility is secured by a pledge of stock of substantially all of the Company’s subsidiaries and a lien on substantially all of the personal property assets of the Company and its subsidiaries.

The Company’s indebtedness bore interest at a range of 4.24% to 7.25% during 2019. The Company recorded interest expense of $2.9 million, $4.3 million and $3.8 million for 2019, 2018 and 2017, respectively, of which $0.5 million, $0.6 million, and $0.5 million was amortization of debt issuance costs in each of the respective years.

Prior Credit Facility

Upon execution of the 2018 Credit Facility, the Company repaid in full its outstanding indebtedness with Bank of America, N.A. (the “Prior Credit Facility”) using funds drawn on the 2018 Credit Facility. Upon repayment, the Prior Credit Facility and all related agreements were terminated. A loss on extinguishment of debt in the amount of $0.6 million was recorded in 2018 in connection with this repayment.

Fair Value Measurements	12 Months Ended
Fair Value Measurements	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current liabilities approximate fair values due to their short-term nature. The carrying amounts of borrowings approximate fair value as the line of credit and term borrowings vary with market interest rates and negotiated terms and conditions are consistent with current market rates. The fair value of the Company’s line of credit borrowings is measured using Level 2 inputs. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets recognized or disclosed at fair value in the consolidated financial statements on a non-recurring basis include items such as property and equipment, operating lease assets, goodwill and other intangible assets. These assets are measured at fair value if determined to be impaired or when acquired. Adjustments to the fair value of assets measured at fair value on a non-recurring basis as of December 31, 2019 and January 1, 2019, are discussed in Note 6, Restaurant Impairments, Closure Costs and Asset Disposals. Assets held for sale are measured at fair value on a non-recurring basis using Level 3 inputs. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation. Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2—Quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3—Prices or valuation techniques which require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Restaurant Impairments, Closure Costs and Asset Disposals

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restaurant Impairments, Closure Costs and Asset Disposals

The following table presents restaurant impairments, closure costs and asset disposals for fiscal years 2019, 2018 and 2017 (in thousands):



	2019			2018		2017
Restaurant impairments⁽¹⁾	$	6,218		$	1,453	$	16,154
Closure costs⁽¹⁾	(54		)	4,149		20,052
Loss on disposal of assets and other	1,583			1,540		1,240
	$	7,747		$	7,142	$	37,446

_____________________


(1)	Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed.

Restaurant Impairments

During 2019, 2018 and 2017, two restaurants, one restaurant and 34 restaurants were identified as impaired, respectively. In 2019, the Company recorded a $3.6 million write down of assets in connection with the sale of nine company-owned restaurants to a franchisee that closed in January of 2020. Impairment is based on management’s current assessment of the expected future cash flows of various restaurants based on recent results and other specific market factors. Impairment expense is a Level 3 fair value measure and was determined by comparing the carrying value of restaurant assets to the estimated fair market value of the restaurant assets at resale value.

In performing its impairment testing, the Company forecasts the future undiscounted cash flows by looking at recent restaurant level performance, restaurant level operating plans, sales trends and cost trends for cost of sales, labor and operating expenses. The Company compares this cash flow forecast to the asset’s carrying value at the restaurant. Based on this analysis, if the carrying amount of the assets is greater than the estimated future undiscounted cash flows, an impairment charge is recognized, measured as the amount by which the carrying amount exceeds the fair value of the asset.

Restaurant Closures

Closure costs during 2019 include costs related to five restaurants closed in 2019 as well as ongoing costs of previously closed restaurants and adjustments to the liabilities to landlords as lease terminations occur. In 2018 and 2017, the Company recognized $4.1 million and $20.1 million of closure costs, respectively. The closure costs recognized during 2018 are primarily related to the 19 restaurants closed throughout 2018, most of which were approaching the expiration of their leases, as well as ongoing costs from restaurants closed in previous years. The closure costs recognized during 2017 are primarily related to the 55 restaurants closed during the first quarter of 2017 and ongoing costs of restaurants closed in previous years. Closure costs can include fees from real estate advisors and brokers related to terminations of the leases and charges resulting from final adjustments to liabilities as lease terminations occur.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

The following table presents the domestic and foreign components of income (loss) before income taxes for 2019, 2018 and 2017 (in thousands):



	2019		2018			2017
Domestic income (loss)	$	1,751	$	(8,689	)	$	(42,047	)
Foreign income	—		—			4,358
	$	1,751	$	(8,689	)	$	(37,689	)

The components of the provision (benefit) for income taxes are as follows for 2019, 2018 and 2017 (in thousands):



	2019		2018			2017
Current tax provision:
Federal	$	—	$	—		$	—
State	36		35			21
Foreign	—		—			—
	36		35			21
Deferred tax provision (benefit):
Federal	52		(202		)	(252		)
State	16		(81		)	24
Foreign	—		—			—
	68		(283		)	(228		)
Total provision (benefit) for income taxes	$	104	$	(248	)	$	(207	)

The reconciliation of income tax provision (benefit) that would result from applying the federal statutory rate to pre-tax income as shown in the accompanying Consolidated Statements of Operations is as follows for 2019, 2018 and 2017 (in thousands):



	2019			2018			2017
Federal income tax provision (benefit) at federal rate	$	368		$	(1,825	)	$	(12,814	)
State income tax provision (benefit), net of federal tax	168			(623		)	(1,790		)
Other permanent differences	327			70			674
Foreign rate differential	—			—			(463		)
Tax credits	(408		)	(602		)	(808		)
Change in valuation allowance	(913		)	2,600			(159		)
Tax rate change	23			(248		)	13,632
Deferred tax asset write-off	566			212			2,618
Other items, net	(27		)	168			(1,097		)
Provision (benefit) for income taxes	$	104		$	(248	)	$	(207	)
Effective income tax rate	5.9		%	2.9		%	0.5		%

The Company’s total deferred tax assets and liabilities are as follows (in thousands):



	2019			2018
Deferred tax assets	$	104,931		$	50,851
Deferred tax liabilities	(65,715		)	(12,212		)
Total deferred tax assets	39,216			38,639
Valuation allowance	(39,416		)	(38,772		)
Net deferred tax liabilities	$	(200	)	$	(133	)

Deferred income taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Deferred income tax liabilities and assets consist of the following (in thousands):



	2019			2018
Deferred tax assets (liabilities):
Loss carry forwards	$	30,255		$	32,896
Deferred rent and franchise revenue	909			10,433
Property, equipment and intangible assets	(8,242		)	(10,472		)
Stock-based compensation	1,376			1,242
Tax credit carry forwards	3,936			3,528
Interest expense	—			998
Inventory smallwares	(1,748		)	(1,740		)
Other accrued expenses	533			959
Operating lease assets	(55,725		)	—
Operating lease liabilities	67,166			—
Other	756			795
Total net deferred tax assets	39,216			38,639
Valuation allowance	(39,416		)	(38,772		)
Net deferred tax liabilities	$	(200	)	$	(133	)

For the year ended December 31, 2019, the Company determined that it was appropriate to maintain a valuation allowance of $39.4 million against U.S. deferred tax assets due to uncertainty regarding the realizability of future tax benefits. The valuation allowance is recorded against net deferred tax assets, exclusive of indefinite-lived intangibles. During 2018, the Company generated indefinite- lived net operating loss (“NOL”) carry forwards. The Company will maintain the remaining valuation allowance until there is sufficient evidence to support a full or partial reversal. The reversal of a previously recorded valuation allowance will generally result in a benefit to the effective tax rate.

As of December 31, 2019 and January 1, 2019, NOL carry forwards for federal income tax purposes of approximately $115.5 million and $124.5 million, respectively, were available to offset future taxable income. Of these amounts, $97.9 million is available to offset future taxable income through 2037. A federal NOL of $17.7 million created during the year ending January 1, 2019 can be carried forward indefinitely, but can only offset 80% of future taxable income. The Internal Revenue Code Section 382 generally limits the utilization of NOLs when there is an ownership change. The Company completed an analysis under Section 382 through December 31, 2019 and determined that there isn’t a current year limitation on utilization of tax attributes. Prior to the utilization of NOLs in the future, the Company will determine whether there are any limitations under Section 382. If such a limitation exists, it is possible that a portion of the NOLs may not be available for use before expiration.

Uncertain tax positions are recognized if it is more likely than not that the Company will be able to sustain the tax position taken, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon resolution of the benefit. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions.

There were no uncertain tax positions for the years ended December 31, 2019 or January 1, 2019. For federal and state income tax purposes, the Company’s 2015 through 2018 tax years remain open for examination by the authorities under the normal three year statute of limitations. Should the Company utilize any of its U.S. or state NOLs, the tax year to which the original loss relates will remain open to examination.

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2019
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock The Company has 181,000,000 shares of stock authorized, consisting of 150,000,000 shares of Class A common stock, par value $0.01 per share; 30,000,000 shares of Class B common stock, par value $0.01 and 1,000,000 shares of preferred stock, par value $0.01 per share. Preferred stock rights are determined by the Company’s Board of Directors when preferred shares are issued. The following summarizes the rights of common stock: Voting—Shares of Class A common stock and Class B common stock are entitled to one vote per share in all voting matters, with the exception that Class B common stock does not vote on the election or removal of directors. Conversion—Each share of Class A common stock held by either one of L Catterton Partners or Argentia Private Investments Inc. (“Argentia”) or their affiliates the (“Equity Sponsors”) is convertible, at the option of the holder, into one share of Class B common stock. Each share of Class B common stock is convertible, at the option of the holder, into one share of Class A common stock. Dividends—Class A common stock and Class B common stock share equally if a dividend is declared or paid to either class, but they do not have rights to any special dividend. Liquidation, Dissolution or Winding Up—Class A common stock and Class B common stock share equally in distributions in liquidation, dissolution or winding up of the corporation. Registration Rights—The Equity Sponsors have the right to demand registration of 10% or more of the shares of the Company’s common stock held by them. A few shareholders who are also Executive Officers of the Company or members of the Company’s Board of Directors have piggyback registration rights, but they are not required to exercise these rights. Public Offering of Class A Common Stock On July 31, 2018, the Company sold 2,500,000 shares of its common stock at a public offering price of $10.00 per share. The shares offered were registered pursuant to a registration statement that the Company filed with the Securities and Exchange Commission (the “SEC”). The Company received net proceeds of $23.0 million, after deducting the underwriting discounts and commissions, and net of transaction expenses incurred. The proceeds of the offering were used by the Company to pay down borrowings under the 2018 Credit Facility and fund working capital obligations. Conversion of Argentia Class B Common Stock On May 24, 2018, Argentia Private Investments Inc. (“Argentia”) converted 1,522,098 shares of the Company’s Class B common stock, par value $0.01, it owned into the same number of shares of the Company’s Class A common stock. As a result of the conversion, no shares of the Company’s Class B common stock are outstanding. Reclassification of Cumulative Translation Adjustments During the year ended January 2, 2018, the Company closed all Canadian restaurants and liquidated the Canadian foreign subsidiary. As a result, the Company recognized a loss of approximately $0.2 million in operations for the translation adjustments from currency exchange that were previously recorded in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. The Company recognized this charge within Restaurant impairments, closure costs and asset disposals in the Consolidated Statements of Operations.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

The Company’s Stock Incentive Plan (the “Plan”), as amended and restated in May of 2013, authorizes the grant of non-qualified stock options, incentive stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”) and incentive bonuses to employees, officers, non-employee directors and other service providers. The Plan is administered by the Compensation Committee of the Company’s Board of Directors (the “Board”) or another committee designated by the Board, or in the absence of any such committee, the Board itself (the “administrator”). Stock options are granted at a price determined by the administrator at an exercise price that is not less than the fair market value of the underlying stock on the date of grant. The administrator may also grant SARs and RSUs with terms determined by the administrator in accordance with the Plan. All share-based awards (except for RSUs) granted under the Plan have a life of ten years. Most awards vest ratably over four years; however, some have been granted with different vesting schedules. Of the awards outstanding, none have been granted to non-employees (except those granted to non-employee members of the Board of Directors of the Company) under the Plan. At December 31, 2019, approximately 3.5 million share-based awards were available to be granted under the Plan.

Stock-based compensation expense is generally recognized on a straight-line basis over the service period of the awards. In 2019, 2018 and 2017, non-cash stock-based compensation expense of $2.4 million, $3.0 million and $1.7 million, respectively, was included in general and administrative expense.

The estimated fair value of each option granted is calculated using the Black-Scholes option-pricing model. Expected volatilities are based on the Company’s historical data and implied volatility. The Company uses historical data to estimate expected employee forfeitures of stock options. The expected life of options granted is management’s best estimate using recent and expected transactions. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

The weighted-average assumptions used in the model were as follows:



	2019			2018			2017
Risk-free interest rate	1.8		%	2.7		%	2.0		%
Expected term (average in years)	6.2			6.2			6.1
Expected dividend yield	—			—			—
Expected volatility	55.7		%	51.0		%	39.6		%
Weighted-average Black-Scholes fair value per share at date of grant	$	4.16		$	5.11		$	1.74

The Company has estimated forfeiture rates that range from 16% to 18% based upon the class of employees receiving stock-based compensation in its calculation of stock-based compensation expense for the year ended December 31, 2019. These estimates are based on historical forfeiture behavior exhibited by employees of the Company.

A summary of aggregate option award activity under the Plan as of December 31, 2019, and changes during the fiscal year then ended is presented below:



	Awards		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value (1) (in thousands)
Outstanding—January 1, 2019	1,174,256		$	11.78
Granted	222,067		7.68
Forfeited or expired	(182,252	)	7.51
Exercised	(2,000	)	4.58
Outstanding—December 31, 2019	1,212,071		$	11.67	5.88	$	152
Vested and expected to vest	1,170,681		$	11.80	5.77	$	150
Exercisable as of December 31, 2019	829,273		$	13.45	4.53	$	73

_____________


(1)	Aggregate intrinsic value represents the amount by which fair value of the Company’s stock exceeds the exercise price of the option as of December 31, 2019.

The weighted-average grant-date fair value of options granted during the years ended December 31, 2019, January 1, 2019 and January 2, 2018 was $4.16, $5.11 and $1.74, respectively. The intrinsic value associated with options exercised was zero, $0.4 million and zero for the fiscal years ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively. The Company had 203,254, 204,399 and 177,491 options that vested during the years ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively. These awards had a total estimated fair value of $1.4 million, $1.9 million and $0.8 million at the date of vesting for the years ended December 31, 2019, January 1, 2019 and January 2, 2018, respectively.

A summary of the status of the Company’s non-vested restricted share units as of December 31, 2019 and changes during the year then ended is presented below:



	Awards		Weighted- Average Grant Date Fair Value
Outstanding—January 1, 2019	908,082		$	7.48
Granted	396,552		7.65
Vested	(231,161	)	7.37
Forfeited	(330,892	)	7.48
Non-vested at December 31, 2019	742,581		$	7.60

The Company had 231,161 restricted stock units that vested during the year ended December 31, 2019. These units had a total estimated fair value of $1.1 million at the date of vesting for the year ended December 31, 2019.

As of December 31, 2019, there was $5.6 million of unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan, which is expected to be recognized over 2.7 years.

Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is calculated using net income (loss) available to common stockholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options and restricted common stock. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.

The following table sets forth the computations of basic and diluted EPS (in thousands, except share and per share data):



	2019		2018			2017
Net income (loss) attributable to common stockholders	$	1,647	$	(8,441	)	$	(45,449	)
Shares:
Basic weighted average shares outstanding	44,036,947		42,329,556			37,759,497
Effect of dilutive securities	939,489		—			—
Diluted weighted average number of shares outstanding	44,976,436		42,329,556			37,759,497
Earnings (loss) per share:
Basic earnings (loss) per share	$	0.04	$	(0.20	)	$	(1.20	)
Diluted earnings (loss) per share	$	0.04	$	(0.20	)	$	(1.20	)

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. Potential common shares are excluded from the computation of diluted earnings per share when the effect would be anti-dilutive. Shares issuable on the vesting or exercise of share based awards or exercise of outstanding warrants, and the shares underlying the 18,500 shares of convertible preferred stock outstanding in the first quarter of 2017, were excluded from the calculation of diluted loss per share because the effect of their inclusion would have been anti-dilutive totaled 1,513,552, 2,829,630 and 4,154,778 for 2019, 2018 and 2017, respectively.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2019
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans Defined Contribution Plan In October 2003, the Company adopted a defined contribution plan, The Noodles & Company 401(k) Plan (the “401(k) Plan”). Company employees aged 21 or older, are eligible to participate in the 401(k) Plan beginning on the first day of the calendar month following 30 days of employment. Under the provisions of the 401(k) Plan, the Company may, at its discretion, make contributions to the 401(k) Plan. Participants are 100% vested in their own contributions. In 2019, the board of directors authorized matching contributions equal to 25% of the first 4% of compensation that is deferred by the participant. The Company recognized matching contribution expense of $0.4 million in 2019. No contributions were made during 2018 and 2017. Deferred Compensation Plan The Company’s deferred compensation plan, under which compensation deferrals began in 2013, is a non-qualified deferred compensation plan which allows highly compensated employees to defer a portion of their base salary and variable compensation each plan year. To offset its obligation, the Company purchases Company-owned whole-life insurance contracts on certain employees. As of December 31, 2019 and January 1, 2019, $2.0 million and $1.8 million, respectively, were included in other assets, net, which represents the cash surrender value of the associated life insurance policies, and $0.6 million and $1.0 million, respectively, were included in accrued expenses and other current liabilities and other long-term liabilities, which represents the carrying value of the liability for deferred compensation. Employee Stock Purchase Plan In 2013, the Company adopted an Employee Stock Purchase Plan (the “ESPP”) under which eligible team members may voluntarily contribute up to 15% of their salaries, subject to limitations, to purchase common stock at a price equal to 85% of the fair market value of a share of the Company’s common stock on the first day of each offering period or 85% of the fair market value of a share of the Company’s common stock on the last day of each offering period, whichever amount is less. In general, all non-highly compensated employees who have been employed by the Company for at least 30 days prior to the offering period and who are regularly scheduled to work more than 20 hours per week and for more than five months in any calendar year, are eligible to participate in the ESPP which operates in-line with the Company’s fiscal quarters. A total of 750,000 shares of common stock are available for issuance under the ESPP. The Company has issued a total of 174,463 shares under this plan, of which 33,912 shares were issued during 2019. A total of 575,537 shares remain available for future issuance. For 2019, in accordance with the guidance for accounting for stock compensation, the Company estimated the fair value of the stock purchase plan using the Black-Scholes multiple-option pricing model. The average assumptions used in the model included a 1.89% risk-free interest rate; 0.25 year expected life; expected volatility of 46.5%; and a zero percent dividend yield. The weighted average fair value per share at grant date was $1.16. In 2019, the Company recognized $41,000 of compensation expense related to the ESPP.

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

The Company leases restaurant facilities, office space and certain equipment that expire on various dates through April 2035. Lease terms for restaurants in traditional shopping centers generally include a base term of 10 years, with options to extend these leases for additional periods of five to 15 years.

The Company’s leases typically contain rent escalations over the lease term. The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce the right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term. Total rent expense for operating leases for 2019, 2018 and 2017 was approximately $40.8 million, $41.7 million and $43.9 million, respectively.

Some of the Company’s leases include rent escalations based on inflation indexes and fair market value adjustments. Certain leases contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales in excess of stipulated amounts. Lease expense associated with rent escalation and contingent rental provisions is not material and is included within operating lease cost. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company elected the practical expedient to account for lease and non-lease components as a single component for substantially all lease types.

Supplemental balance sheet information related to leases is as follows (in thousands):



Classification		December 31, 2019
Assets
Operating	Operating lease assets, net	$	209,717
Finance	Finance lease assets, net ⁽¹⁾	771
Total leased assets		$	210,488
Liabilities
Current lease liabilities
Operating	Current operating lease liabilities	$	22,775
Finance	Current finance lease liabilities ⁽²⁾	510
Long-term lease liabilities
Operating	Long-term operating lease liabilities	225,014
Finance	Long-term finance lease liabilities ⁽²⁾	281
Total lease liabilities		$	248,580

_____________________


(1)	The finance lease assets are included in property and equipment, net in the Consolidated Balance Sheets.


(2)	The current portion of the finance lease liabilities is included in accrued expenses and other current liabilities, and the long-term portion is included in other long-term liabilities in the Consolidated Balance Sheets.

The components of lease costs are as follows (in thousands):



		Year Ended
Classification		December 31, 2019
Operating lease cost	Occupancy, other restaurant operating costs, and general and administrative expenses	$	40,753
Finance lease cost
Amortization of lease assets	Depreciation and amortization	661
Interest on lease liabilities	Interest expense, net	73
		41,487
Sublease income	Franchising royalties and fees, and other	(651		)
Total lease cost, net		$	40,836

Future minimum lease payments required under existing leases as of December 31, 2019 are as follows (in thousands):



	Operating Leases		Finance Leases		Total
2020	$	43,236	$	546	$	43,782
2021	42,530		225		42,755
2022	42,340		51		42,391
2023	40,988		14		41,002
2024	38,986		8		38,994
Thereafter	152,721		1		152,722
Total lease payments	360,801		845		361,646
Less: Imputed interest	113,012		54		113,066
Present value of lease liabilities	$	247,789	$	791	$	248,580

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting, maturities of lease liabilities were as follows as of January 1, 2019 (in thousands):



2019	$	42,652
2020	39,626
2021	35,609
2022	30,611
2023	24,440
Thereafter	54,414
	$	227,352

Operating lease payments include $158.8 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $11.0 million of legally binding minimum lease payments for leases signed but not yet commenced.

Lease term and discount rate as of December 31, 2019 are as follows:



Weighted average remaining lease term (years):
Operating	10.0
Finance	2.9
Weighted average discount rate:
Operating	8.6	%
Finance	7.2	%

Supplemental disclosures of cash flow information related to leases for the year ended December 31, 2019 are as follows (in thousands):



Cash paid for lease liabilities:
Operating leases	$	43,203
Finance leases	763
	$	43,966
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	11,211
Finance leases	253
	$	11,464

Leases

The Company elected the practical expedient to account for lease and non-lease components as a single component for substantially all lease types.

Supplemental balance sheet information related to leases is as follows (in thousands):



Classification		December 31, 2019
Assets
Operating	Operating lease assets, net	$	209,717
Finance	Finance lease assets, net ⁽¹⁾	771
Total leased assets		$	210,488
Liabilities
Current lease liabilities
Operating	Current operating lease liabilities	$	22,775
Finance	Current finance lease liabilities ⁽²⁾	510
Long-term lease liabilities
Operating	Long-term operating lease liabilities	225,014
Finance	Long-term finance lease liabilities ⁽²⁾	281
Total lease liabilities		$	248,580

_____________________


(1)	The finance lease assets are included in property and equipment, net in the Consolidated Balance Sheets.


(2)	The current portion of the finance lease liabilities is included in accrued expenses and other current liabilities, and the long-term portion is included in other long-term liabilities in the Consolidated Balance Sheets.

The components of lease costs are as follows (in thousands):



		Year Ended
Classification		December 31, 2019
Operating lease cost	Occupancy, other restaurant operating costs, and general and administrative expenses	$	40,753
Finance lease cost
Amortization of lease assets	Depreciation and amortization	661
Interest on lease liabilities	Interest expense, net	73
		41,487
Sublease income	Franchising royalties and fees, and other	(651		)
Total lease cost, net		$	40,836

Future minimum lease payments required under existing leases as of December 31, 2019 are as follows (in thousands):



	Operating Leases		Finance Leases		Total
2020	$	43,236	$	546	$	43,782
2021	42,530		225		42,755
2022	42,340		51		42,391
2023	40,988		14		41,002
2024	38,986		8		38,994
Thereafter	152,721		1		152,722
Total lease payments	360,801		845		361,646
Less: Imputed interest	113,012		54		113,066
Present value of lease liabilities	$	247,789	$	791	$	248,580

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting, maturities of lease liabilities were as follows as of January 1, 2019 (in thousands):



2019	$	42,652
2020	39,626
2021	35,609
2022	30,611
2023	24,440
Thereafter	54,414
	$	227,352

Lease term and discount rate as of December 31, 2019 are as follows:



Weighted average remaining lease term (years):
Operating	10.0
Finance	2.9
Weighted average discount rate:
Operating	8.6	%
Finance	7.2	%

Supplemental disclosures of cash flow information related to leases for the year ended December 31, 2019 are as follows (in thousands):



Cash paid for lease liabilities:
Operating leases	$	43,203
Finance leases	763
	$	43,966
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	11,211
Finance leases	253
	$	11,464

Supplemental Disclosures to Consolidated Statements of Cash Flows

12 Months Ended

Dec. 31, 2019

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosures to Consolidated Statements of Cash Flows

The following table presents the supplemental disclosures to the Consolidated Statements of Cash Flows for 2019, 2018 and 2017 (in thousands):



	2019			2018			2017
Interest paid (net of amounts capitalized)	$	2,800		$	3,800		$	3,482
Income taxes (refunded) paid	(98		)	42			(158		)
Changes in purchases of property and equipment accrued in accounts payable, net	1,149			(1,339		)	(842		)
Conversion of Series A convertible preferred stock to common stock	—			—			18,500

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Data Security Incident On June 28, 2016, the Company announced that a data security incident compromised the security of the payment information of some customers who used debit or credit cards at certain Noodles & Company locations between January 31, 2016 and June 2, 2016. In 2017, the Company made payments to two payment card companies of $4.0 million for data breach liabilities. In 2018, the Company received the final assessment of $11.0 million from the third of the three payment card companies to which it expected to owe data breach liabilities, recorded a charge of $3.4 million to increase its accrual to cover this final assessment amount, and paid the assessment. There are no further obligations for data breach liabilities outstanding. Other Matters In the normal course of business, the Company is subject to other proceedings, lawsuits and claims. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Consequently, the Company is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of December 31, 2019. These matters could affect the operating results of any one financial reporting period when resolved in future periods. The Company believes that an unfavorable outcome with respect to these matters is remote or a potential range of loss is not material to its consolidated financial statements. Significant increases in the number of these claims, or one or more successful claims that result in greater liabilities than the Company currently anticipates, could materially and adversely affect its business, financial condition, results of operations or cash flows.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Stockholders Agreement In connection with its initial public offering, the Company entered into a stockholders agreement (the “2013 Stockholders Agreement”) with L Catterton and Argentia Private Investments, Inc. which granted them the right, subject to certain conditions, to nominate representatives to the Company’s Board of Directors and committees of the Board of Directors. L Catterton retains the right to designate one member to the Company’s Board of Directors. If L Catterton’s ownership level falls below 10.0% of our outstanding common stock, it will no longer have a right to designate a nominee. Securities Purchase Agreements Under the securities purchase agreement with Mill Road, if at any time Mill Road owns 10.0% or more of our outstanding common stock, Mill Road has the right to designate one nominee for election to our Board of Directors. If Mill Road’s ownership level falls below 10.0% of our outstanding common stock, Mill Road will no longer have a right to designate a nominee.

Revenue Recognition	12 Months Ended
Revenue Recognition	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Revenue The Company adopted the revenue recognition standards under Topic 606 at the beginning of the first quarter of 2018 using the modified retrospective method. The adoption of these standards did not have an impact on the Company’s recognition of revenue from company-owned restaurants or its recognition of continuing royalty fees from franchisees, which are based on a percentage of restaurant revenues and are recognized in the period the related franchised restaurants’ sales occur. Additionally, the adoption of Topic 606 did not have an impact on the Company’s recognition of revenue from gift cards, including the recognition of gift card breakage, as the new standard requires the use of the “proportionate” method for recognizing breakage, which the Company has historically utilized. Gift Cards As of December 31, 2019 and January 1, 2019, the current portion of the gift card liability, $2.4 million and $3.3 million, respectively, is included in accrued expenses and other current liabilities, and the long-term portion, $0.9 million and $0.4 million, respectively, is included in other long-term liabilities in the Consolidated Balance Sheets. Revenue recognized in the Consolidated Statements of Operations for the redemption of gift cards was $5.3 million, $5.9 million and $5.5 million in 2019, 2018 and 2017, respectively. The Company recognized gift card breakage in restaurant revenue of approximately $0.4 million, $1.0 million and $0.3 million in 2019, 2018 and 2017, respectively. Franchise Fees The adoption of Topic 606 impacted the Company’s accounting for initial fees charged to franchisees. In the past, the Company recognized initial franchise fees when all material services or conditions relating to the sale of the franchise had been substantially performed or satisfied by the Company, which was generally when a new franchise restaurant opened. In accordance with the new guidance, the Company has determined that the initial franchise services are not distinct from the continuing rights or services offered during the term of the franchise agreement and should be treated as a single performance obligation. Therefore, initial fees received from franchisees will be recognized as revenue over the term of each respective franchise agreement, which is typically 20 years. An adjustment to beginning retained earnings and a corresponding contract liability of $1.5 million was established on the date of adoption, at the beginning of the first quarter of 2018, associated with the initial fees received through January 1, 2019 that would have been deferred and recognized over the term of each respective franchise agreement if the new guidance had been applied in the past. The Company recognized revenue of $0.2 million in 2019 related to initial fees from franchisees that were included in the contract liability balance at the beginning of the year. The Company expects to recognize approximately $0.1 million each fiscal year through fiscal 2024 and approximately $0.7 million thereafter related to performance obligations that are unsatisfied as of December 31, 2019.

Selected Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (unaudited)

The following table presents selected unaudited quarterly financial data for the periods indicated. Each fiscal quarter contained 13 weeks (in thousands, except per share data):



	Fiscal 2019
	December 31, 2019			October 1, 2019		July 2, 2019			April 2, 2019
Revenue	$	113,871		$	118,304	$	120,190		$	110,046
Income (loss) from operations ⁽¹⁾	$	247		$	5,044	$	1,238		$	(1,090	)
Net (loss) income	$	(1,183	)	$	4,243	$	438		$	(1,851	)
Basic (loss) income per share	$	(0.03	)	$	0.10	$	0.10		$	(0.04	)
Diluted (loss) income per share	$	(0.03	)	$	0.09	$	0.10		$	(0.04	)

	Fiscal 2018
	January 1, 2019			October 2, 2018		July 3, 2018			April 3, 2018
Revenue	$	113,193		$	116,727	$	117,395		$	110,526
Income (loss) from operations^(2)(3)(4)	$	950		$	2,132	$	(4,162	)	$	(2,678	)
Net income (loss)	$	19		$	1,050	$	(5,935	)	$	(3,575	)
Basic income (loss) per share	$	—		$	0.02	$	(0.14	)	$	(0.09	)
Diluted income (loss) per share	$	—		$	0.02	$	(0.14	)	$	(0.09	)

_____________


(1)	The second quarter of 2019 includes an impairment charge of $2.2 million. The Company did not impair any restaurants in the third and fourth quarters of 2019. The fourth quarter includes a write down of $3.6 million related to assets held for sale.


(2)	The second quarter of 2018 includes a $3.4 million charge for the final assessment related to data breach liabilities and a $0.3 million charge for the settlement of a Delaware gift card litigation.

(3)

Includes closure costs related to the seven restaurants that closed in the fourth quarter of 2018, three restaurants closed in the third quarter of 2018, seven restaurants that closed in the second quarter of 2018 and two restaurants that closed in the first quarter of 2018, most of which were approaching the expiration of their leases, as well as ongoing costs from restaurants closed in previous years. The closure costs recognized were $0.6 million in the fourth quarter of 2018, $1.5 million in the third quarter of 2018, $1.5 million in the second quarter of 2018 and $0.6 million in the first quarter of 2018. See Note 6, Restaurant Impairments, Closure Costs and Asset Disposals, for additional disclosure on closures.

(4)

The first quarter of 2018 includes an impairment charge of $0.4 million related to the impairment of one restaurant. The Company did not impair any restaurants in the second, third and fourth quarters of 2018.

Subsequent Event	12 Months Ended
Subsequent Event	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Event On January 29, 2020, the Company closed on a transaction to sell nine restaurants in Charlotte, North Carolina and Orlando, Florida to existing franchisee River City Restaurant Group (“RCRG”) and RCRG laid out plans to also develop 22 new Noodles & Company restaurants between 2021 and 2032. See Note 2 for further information regarding assets held for sale.

Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All intercompany balances and transactions are eliminated in consolidation.
Fiscal Year	Fiscal Year The Company operates on a 52- or 53-week fiscal year ending on the Tuesday closest to December 31. Fiscal years 2019, 2018 and 2017, which ended on December 31, 2019, January 1, 2019, and January 2, 2018, respectively, each contained 52 weeks.
Estimates	Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investment instruments with an initial maturity of three months or less when purchased to be cash equivalents. Amounts receivable from credit card processors are converted to cash shortly after the related sales transaction and are considered to be cash equivalents because they are both short-term and highly liquid in nature. Amounts receivable from credit card processors as of December 31, 2019 and January 1, 2019, which are included in cash and cash equivalents, were $1.0 million and $1.6 million, respectively. Additionally, the Company records “book overdrafts” when outstanding checks at year end are in excess of cash and cash equivalents. Such book overdrafts are recorded within accounts payable in the accompanying Consolidated Balance Sheets and within operating activities in the accompanying Consolidated Statements of Cash Flows.
Accounts Receivable	Accounts Receivable Accounts receivable consists primarily of franchise receivables and vendor rebates, as well insurance receivables and other miscellaneous receivables arising from the normal course of business.
Inventories	Inventories Inventories consist of food, beverages, supplies and smallwares, and are stated at the lower of cost (first-in, first-out method) or net realizable value. Smallwares inventory, which consist of the plates, silverware and cooking utensils used in the restaurants, are frequently replaced and are therefore considered current assets. Replacement costs of smallwares inventory are recorded as other restaurant operating costs in the Consolidated Statements of Operations and are expensed as incurred.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Expenditures for major renewals and improvements are capitalized, while expenditures for minor replacements and maintenance and repairs are expensed as incurred. Upon retirement or disposal of assets, the accounts are relieved of cost and accumulated depreciation and the related gain or loss is reflected in earnings. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful life or the lease term, which generally includes option periods that are reasonably assured to be exercised.
Goodwill	Goodwill Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired. Goodwill is not subject to amortization, but instead is tested for impairment at least annually (or more often, if necessary) as of the first day of the Company’s fourth fiscal quarter. Goodwill is evaluated at the level of the Company’s single operating segment, which also represents the Company’s only reporting unit. In 2019 and 2018, the Company performed a qualitative impairment assessment. Under this approach, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. If after performing the qualitative assessment, the Company determines there is less than a 50 percent chance that the fair value of its reporting unit is less than its carrying amount, then performing the two-step test is unnecessary. Based on the qualitative assessment performed, management did not believe that it is more likely than not that the Company’s goodwill has been impaired. In 2017, the Company performed the two-step quantitative analysis. Under the two-step approach, step one of the impairment test is based upon a comparison of the carrying value of net assets, including goodwill balances, to the fair value of net assets. Fair value is measured using a combination of the income approach and the market approach. The income approach consists of utilizing the discounted cash flow method that incorporates the Company’s estimates of future revenues and costs, discounted using a risk-adjusted discount rate. Based on the Company’s analysis, no impairment charges were recognized on goodwill in 2019, 2018 or 2017.
Intangibles, net	Intangibles, net Intangibles, net consists primarily of reacquired franchise rights, trademarks and transferable liquor licenses. The Company amortizes the fair value of reacquired franchise rights over the remaining contractual terms of the reacquired franchise area development agreements at the time of acquisition, which ranged from approximately six years to 13 years as of December 31, 2019. Trademark rights are considered indefinite-lived intangible assets, the carrying value of which are analyzed for impairment at least annually (or more often, if necessary). Transferable liquor licenses are carried at the lower of cost or fair value and are evaluated annually for impairment or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. If the assets are determined to be impaired, the amount of impairment recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Estimates of future cash flows are based on the Company’s experience and knowledge of local operations. During 2019, 2018 and 2017, the Company recorded impairment charges of certain long-lived assets which are included in restaurant impairments, closure costs and asset disposals in the Consolidated Statements of Operations. See Note 6, Restaurant Impairments, Closure Costs and Asset Disposals. Fair value of the restaurant assets was determined using Level 3 inputs (as described in Note 5, Fair Value Measurements).
Debt Issuance Costs	Debt Issuance Costs Certain fees and costs incurred to obtain long-term financing are capitalized and included as a reduction in the net carrying value of long-term debt, net of accumulated amortization. These costs are amortized to interest expense over the term of the related debt. When debt is extinguished prior to its maturity date, the amortization of the remaining unamortized debt issuance costs, or pro-rata portion thereof, is charged to loss on extinguishment of debt.
Self Insurance Programs	Self-Insurance Programs The Company self-insures for health, workers’ compensation, general liability and property damage. Predetermined loss limits have been arranged with insurance companies to limit the Company’s per occurrence cash outlay. Estimated costs to settle reported claims and incurred but unreported claims for health and workers’ compensation self-insured plans are recorded in accrued payroll and benefits and for general liability and property damage in accrued expenses and other liabilities in the Consolidated Balance Sheets.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company’s cash balances may exceed federally insured limits. Credit card transactions at the Company’s restaurants are processed by one service provider. Concentration of credit risk related to accounts receivable are limited, as the Company’s receivables are primarily amounts due from franchisees and the Company directly pulls the amounts owed from the franchisees bank accounts.
Revenue Recognition	Revenue Recognition Revenue consists of sales from restaurant operations and franchise royalties and fees. Revenue from the operation of company-owned restaurants are recognized when sales occur. The Company reports revenue net of sales and use taxes collected from customers and remitted to governmental taxing authorities. Gift Cards The Company sells gift cards which do not have an expiration date, and it does not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards when the gift card is redeemed by the customer or the Company determines the likelihood of the gift card being redeemed by the customer is remote (“gift card breakage”). The determination of the gift card breakage rate is based upon Company-specific historical redemption patterns. The Company has determined that approximately 9% of gift cards will not be redeemed, which is recognized ratably over the estimated redemption period of the gift card, approximately 24 months. Loyalty Program Beginning in 2019, Customers who register on the Noodles App are automatically enrolled in the Noodles Rewards program, which is primarily a spend-based loyalty program. With each purchase, Noodles Rewards members earn loyalty points that can be redeemed for rewards, including free products. Using an estimate of the value of reward redemptions, we defer revenue associated with points earned, net of estimated points that will not be redeemed. Points generally expire after six months. Revenue is recognized in a future period when the reward points are redeemed. Franchise Royalties Royalties from franchise restaurants are based on a percentage of restaurant revenues and are recognized in the period the related franchised restaurants’ sales occur. Development fees and franchise fees, portions of which are collected in advance, are nonrefundable. The Company has determined that the initial franchise services are not distinct from the continuing rights or services offered during the term of the franchise agreement and should be treated as a single performance obligation; therefore, such fees are recognized in income ratably over the term of the related franchise agreement or recognized upon the termination of the agreement between the Company and the franchisee.
Pre-Opening Costs	Pre-Opening Costs Pre-opening costs, including rent, wages, benefits and travel for the training and opening teams, food, beverage and other restaurant operating costs, are expensed as incurred prior to a restaurant opening for business.
Advertising and Marketing Costs	Advertising and Marketing Costs Advertising and marketing costs are expensed as incurred and were $6.1 million, $6.0 million and $5.7 million in 2019, 2018 and 2017, respectively. These costs are included in restaurant operating costs, general and administrative expenses and pre-opening costs based on the nature of the advertising and marketing costs incurred.
Rent	Rent Rent expense for the Company’s leases, which generally have escalating rentals over the term of the lease, is recorded on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce the right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term. Some of the Company’s leases include rent escalations based on inflation indexes and fair market value adjustments. Certain leases contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales in excess of stipulated amounts. Lease expense associated with rent escalation and contingent rental provisions is not material and is included within operating lease cost. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.
Provision (Benefit) for Income Taxes	Provision (Benefit) for Income Taxes Provision (benefit) for income taxes is accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those deferred amounts are expected to be recovered or settled. Valuation allowances are recorded for deferred tax assets that more likely than not will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s policy is to recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in provision (benefit) for income taxes in the Consolidated Statements of Operations.
Stock-Based Compensation Expense	Stock-Based Compensation Expense Stock-based compensation expense is measured at the grant date based upon the estimated fair value of the portion of the award that is ultimately expected to vest and is recognized as expense over the applicable vesting period of the award generally using the straight-line method (see Note 9, Stock-Based Compensation for more information).
Foreign Currency Translation	Foreign Currency Translation In 2017, the Company ceased its Canadian operations and liquidated the related assets. The Canadian dollar was the functional currency for the Company’s Canadian restaurant operations. Assets and liabilities denominated in Canadian dollars were translated into U.S. dollars at exchange rates in effect as of the balance sheet dates. Income and expense accounts were translated using the average exchange rates prevailing throughout the period. Translation adjustments from currency exchange were recorded in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Gains or losses from foreign currency transactions were recognized in the Consolidated Statements of Operations.
Recent Accounting Pronouncements	Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 was issued as a means to reduce the complexity of accounting for income taxes for those entities that fall within the scope of the accounting standard. The guidance is to be applied using a prospective method, excluding amendments related to franchise taxes, which should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. We are currently evaluating the impacts of adoption of the new guidance to our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, followed by other related ASUs that provided targeted improvements (collectively “ASU 2016-13”). ASU 2016-13 provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The guidance is to be applied using a modified retrospective method and is effective for fiscal years beginning after December 15, 2022 for smaller reporting companies, with early adoption permitted. The Company adopted ASU 2016-13 on January 1, 2020. The adoption of ASU 2016-13 is not expected to result in a material impact to the Company’s consolidated financial statements or disclosures. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification 605, “Revenue Recognition.” This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company adopted Topic 606 at the beginning of the first quarter of 2018 using the modified retrospective method. The comparative information for fiscal 2017 has not been restated and continues to be reported under the accounting standards then in effect for those periods. The adoption of these standards did not have a material impact on the Company’s Consolidated Statements of Operations in 2018. The primary impact of adoption was the enhancement of the Company’s disclosures related to contracts with customers and revenue recognized from those performance obligations, which includes revenue related to initial fees charged to franchisees and revenue recognized related to gift cards. See Note 16, Revenue Recognition. Further, the Company implemented internal controls related to the recognition and presentation of the Company’s revenues under this new standard. On January 2, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842),” along with related clarifications and improvements. This pronouncement requires a lessee to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. The Company elected the alternative transition method to apply the standard as of the beginning of the period of adoption; therefore, the Company has not applied the standard to the comparative periods presented on its condensed consolidated financial statements. The adoption of this lease guidance did have a material impact on the Company’s Consolidated Balance Sheets by materially increasing its non-current assets and current and non-current liabilities due to the recognition of the right-of-use assets and related lease liabilities primarily related to the Company’s restaurant operating leases and corporate office space. Upon adoption, the right-of-use assets were based upon the operating lease liabilities adjusted for prepaid and deferred rent, liabilities associated with lease termination costs and impairment of right-of-use assets. The impairment of right-of-use assets upon adoption was recognized in retained earnings as of January 2, 2019.

Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of Property Plant and Equipment, Useful Life

The estimated useful lives for property and equipment are:



Property and Equipment		Estimated Useful Lives
Leasehold improvements		Shorter of lease term or estimated useful life, not to exceed 20 years
Furniture and fixtures		3 to 15 years
Equipment		3 to 7 years

Supplemental Financial Information (Tables)

12 Months Ended

Dec. 31, 2019

Supplemental Financial Information [Abstract]

Schedule of Accounts Receivable

Accounts receivable consist of the following (in thousands):



	2019		2018
Tenant improvement receivables	$	—	$	82
Insurance receivable	744		69
Vendor rebate receivables	788		639
Franchise and other receivables	1,971		1,601
	$	3,503	$	2,391

Schedule of Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following (in thousands):



	2019		2018
Prepaid occupancy related costs	$	834	$	4,053
Other prepaid expenses	2,799		2,416
Other current assets	1,753		5
	$	5,386	$	6,474

Schedule of Property and Equipment

Property and equipment, net, consist of the following (in thousands):



	2019			2018
Leasehold improvements	$	200,580		$	197,571
Furniture, fixtures and equipment	122,752			121,479
Construction in progress	2,890			3,620
	326,222			322,670
Accumulated depreciation and amortization	(197,355		)	(183,896		)
	$	128,867		$	138,774

Schedule of Net Assets Held For Sale

The following table presents the carrying amounts of the major classes of assets and liabilities classified as held for sale (in thousands):



	2019
Assets
Current assets, total	$	339
Current operating lease assets	1,408
Current assets held for sale	1,747
Liabilities
Current operating lease liabilities	1,710
Net assets held for sale	$	37

Schedule of Accrued Liabilities and Other Liabilities

Accrued payroll and benefits consist of the following (in thousands):



	2019		2018
Accrued payroll and related liabilities	$	6,364	$	6,333
Accrued bonus	3,505		4,250
Insurance liabilities	3,610		2,808
	$	13,479	$	13,391

Accrued expenses and other current liabilities consist of the following (in thousands):



	2019		2018
Gift card liability	$	2,398	$	3,284
Occupancy related	1,458		2,600
Utilities	1,379		1,582
Deferred revenue	555		—
Current portion of finance lease liability	510		264
Other current liabilities	5,379		3,453
	$	11,679	$	11,183

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table presents goodwill as of December 31, 2019 and January 1, 2019, (in thousands):



	2019		2018
Balance at beginning of year	$	6,400	$	6,400
Acquisition⁽¹⁾	754		—
Balance at end of year	$	7,154	$	6,400

____________________

(1) During the first quarter of 2019, we acquired one franchise restaurant.

Schedule of Intangible Assets

The following table presents intangible assets subject to amortization as of December 31, 2019 and January 1, 2019, (in thousands):



	2019			2018
Amortized intangible assets:
Reacquired franchise rights	$	992		$	1,125
Favorable leases	—			150
	992			1,275
Accumulated Amortization	(388		)	(436		)
	604			839
Non-amortized intangible assets:
Trademark rights and transferable liquor licenses	279			452
	$	883		$	1,291

Schedule of Future Amortization Expense

asset. The estimated aggregate future amortization expense as of December 31, 2019 is as follows, (in th

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Aggregate Annual Maturities

Aggregate maturities for debt outstanding as of December 31, 2019 are as follows (in thousands):



Year 1	$	750
Year 2	938
Year 3	1,656
Year 4	2,219
Year 5	37,055
Total	$	42,618

Restaurant Impairments, Closure Costs and Asset Disposals (Tables)

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Schedule of Impairments, Closure Costs, and Asset Disposals

The following table presents restaurant impairments, closure costs and asset disposals for fiscal years 2019, 2018 and 2017 (in thousands):



	2019			2018		2017
Restaurant impairments⁽¹⁾	$	6,218		$	1,453	$	16,154
Closure costs⁽¹⁾	(54		)	4,149		20,052
Loss on disposal of assets and other	1,583			1,540		1,240
	$	7,747		$	7,142	$	37,446

_____________________

(1)

Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) before Income Tax, Domestic and Foreign

The following table presents the domestic and foreign components of income (loss) before income taxes for 2019, 2018 and 2017 (in thousands):



	2019		2018			2017
Domestic income (loss)	$	1,751	$	(8,689	)	$	(42,047	)
Foreign income	—		—			4,358
	$	1,751	$	(8,689	)	$	(37,689	)

Schedule of Provision for Income Taxes

The components of the provision (benefit) for income taxes are as follows for 2019, 2018 and 2017 (in thousands):



	2019		2018			2017
Current tax provision:
Federal	$	—	$	—		$	—
State	36		35			21
Foreign	—		—			—
	36		35			21
Deferred tax provision (benefit):
Federal	52		(202		)	(252		)
State	16		(81		)	24
Foreign	—		—			—
	68		(283		)	(228		)
Total provision (benefit) for income taxes	$	104	$	(248	)	$	(207	)

Schedule of Effective Income Tax Rate Reconciliation



	2019			2018			2017
Federal income tax provision (benefit) at federal rate	$	368		$	(1,825	)	$	(12,814	)
State income tax provision (benefit), net of federal tax	168			(623		)	(1,790		)
Other permanent differences	327			70			674
Foreign rate differential	—			—			(463		)
Tax credits	(408		)	(602		)	(808		)
Change in valuation allowance	(913		)	2,600			(159		)
Tax rate change	23			(248		)	13,632
Deferred tax asset write-off	566			212			2,618
Other items, net	(27		)	168			(1,097		)
Provision (benefit) for income taxes	$	104		$	(248	)	$	(207	)
Effective income tax rate	5.9		%	2.9		%	0.5		%

Schedule of Deferred Tax Assets and Liabilities

The Company’s total deferred tax assets and liabilities are as follows (in thousands):



	2019			2018
Deferred tax assets	$	104,931		$	50,851
Deferred tax liabilities	(65,715		)	(12,212		)
Total deferred tax assets	39,216			38,639
Valuation allowance	(39,416		)	(38,772		)
Net deferred tax liabilities	$	(200	)	$	(133	)

Deferred income taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Deferred income tax liabilities and assets consist of the following (in thousands):



	2019			2018
Deferred tax assets (liabilities):
Loss carry forwards	$	30,255		$	32,896
Deferred rent and franchise revenue	909			10,433
Property, equipment and intangible assets	(8,242		)	(10,472		)
Stock-based compensation	1,376			1,242
Tax credit carry forwards	3,936			3,528
Interest expense	—			998
Inventory smallwares	(1,748		)	(1,740		)
Other accrued expenses	533			959
Operating lease assets	(55,725		)	—
Operating lease liabilities	67,166			—
Other	756			795
Total net deferred tax assets	39,216			38,639
Valuation allowance	(39,416		)	(38,772		)
Net deferred tax liabilities	$	(200	)	$	(133	)

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Valuation Assumptions

The weighted-average assumptions used in the model were as follows:



	2019			2018			2017
Risk-free interest rate	1.8		%	2.7		%	2.0		%
Expected term (average in years)	6.2			6.2			6.1
Expected dividend yield	—			—			—
Expected volatility	55.7		%	51.0		%	39.6		%
Weighted-average Black-Scholes fair value per share at date of grant	$	4.16		$	5.11		$	1.74

Schedule of Share-based Compensation, Stock Options, Activity

A summary of aggregate option award activity under the Plan as of December 31, 2019, and changes during the fiscal year then ended is presented below:



	Awards		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value (1) (in thousands)
Outstanding—January 1, 2019	1,174,256		$	11.78
Granted	222,067		7.68
Forfeited or expired	(182,252	)	7.51
Exercised	(2,000	)	4.58
Outstanding—December 31, 2019	1,212,071		$	11.67	5.88	$	152
Vested and expected to vest	1,170,681		$	11.80	5.77	$	150
Exercisable as of December 31, 2019	829,273		$	13.45	4.53	$	73

_____________

(1)

Aggregate intrinsic value represents the amount by which fair value of the Company’s stock exceeds the exercise price of the option as of December 31, 2019.

A summary of the status of the Company’s non-vested restricted share units as of December 31, 2019 and changes during the year then ended is presented below:



	Awards		Weighted- Average Grant Date Fair Value
Outstanding—January 1, 2019	908,082		$	7.48
Granted	396,552		7.65
Vested	(231,161	)	7.37
Forfeited	(330,892	)	7.48
Non-vested at December 31, 2019	742,581		$	7.60

Earnings (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

The following table sets forth the computations of basic and diluted EPS (in thousands, except share and per share data):



	2019		2018			2017
Net income (loss) attributable to common stockholders	$	1,647	$	(8,441	)	$	(45,449	)
Shares:
Basic weighted average shares outstanding	44,036,947		42,329,556			37,759,497
Effect of dilutive securities	939,489		—			—
Diluted weighted average number of shares outstanding	44,976,436		42,329,556			37,759,497
Earnings (loss) per share:
Basic earnings (loss) per share	$	0.04	$	(0.20	)	$	(1.20	)
Diluted earnings (loss) per share	$	0.04	$	(0.20	)	$	(1.20	)

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of Lease Costs and Supplemental Information

Lease term and discount rate as of December 31, 2019 are as follows:



Weighted average remaining lease term (years):
Operating	10.0
Finance	2.9
Weighted average discount rate:
Operating	8.6	%
Finance	7.2	%

Supplemental disclosures of cash flow information related to leases for the year ended December 31, 2019 are as follows (in thousands):



Cash paid for lease liabilities:
Operating leases	$	43,203
Finance leases	763
	$	43,966
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	11,211
Finance leases	253
	$	11,464

Supplemental balance sheet information related to leases is as follows (in thousands):



Classification		December 31, 2019
Assets
Operating	Operating lease assets, net	$	209,717
Finance	Finance lease assets, net ⁽¹⁾	771
Total leased assets		$	210,488
Liabilities
Current lease liabilities
Operating	Current operating lease liabilities	$	22,775
Finance	Current finance lease liabilities ⁽²⁾	510
Long-term lease liabilities
Operating	Long-term operating lease liabilities	225,014
Finance	Long-term finance lease liabilities ⁽²⁾	281
Total lease liabilities		$	248,580

_____________________


(1)	The finance lease assets are included in property and equipment, net in the Consolidated Balance Sheets.


(2)	The current portion of the finance lease liabilities is included in accrued expenses and other current liabilities, and the long-term portion is included in other long-term liabilities in the Consolidated Balance Sheets.

The components of lease costs are as follows (in thousands):



		Year Ended
Classification		December 31, 2019
Operating lease cost	Occupancy, other restaurant operating costs, and general and administrative expenses	$	40,753
Finance lease cost
Amortization of lease assets	Depreciation and amortization	661
Interest on lease liabilities	Interest expense, net	73
		41,487
Sublease income	Franchising royalties and fees, and other	(651		)
Total lease cost, net		$	40,836

Schedule of Future Minimum Lease Payments for Finance Leases

Future minimum lease payments required under existing leases as of December 31, 2019 are as follows (in thousands):



	Operating Leases		Finance Leases		Total
2020	$	43,236	$	546	$	43,782
2021	42,530		225		42,755
2022	42,340		51		42,391
2023	40,988		14		41,002
2024	38,986		8		38,994
Thereafter	152,721		1		152,722
Total lease payments	360,801		845		361,646
Less: Imputed interest	113,012		54		113,066
Present value of lease liabilities	$	247,789	$	791	$	248,580

Schedule of Future Minimum Lease Payments for Operating Leases

Future minimum lease payments required under existing leases as of December 31, 2019 are as follows (in thousands):



	Operating Leases		Finance Leases		Total
2020	$	43,236	$	546	$	43,782
2021	42,530		225		42,755
2022	42,340		51		42,391
2023	40,988		14		41,002
2024	38,986		8		38,994
Thereafter	152,721		1		152,722
Total lease payments	360,801		845		361,646
Less: Imputed interest	113,012		54		113,066
Present value of lease liabilities	$	247,789	$	791	$	248,580

Schedule of Future Minimum Lease Payments Required under Existing Leases

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting, maturities of lease liabilities were as follows as of January 1, 2019 (in thousands):



2019	$	42,652
2020	39,626
2021	35,609
2022	30,611
2023	24,440
Thereafter	54,414
	$	227,352

Supplemental Disclosures to Consolidated Statements of Cash Flows (Tables)

12 Months Ended

Dec. 31, 2019

Supplemental Cash Flow Elements [Abstract]

Schedule of Cash Flow Supplemental Disclosures

The following table presents the supplemental disclosures to the Consolidated Statements of Cash Flows for 2019, 2018 and 2017 (in thousands):



	2019			2018			2017
Interest paid (net of amounts capitalized)	$	2,800		$	3,800		$	3,482
Income taxes (refunded) paid	(98		)	42			(158		)
Changes in purchases of property and equipment accrued in accounts payable, net	1,149			(1,339		)	(842		)
Conversion of Series A convertible preferred stock to common stock	—			—			18,500

Selected Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Data

The following table presents selected unaudited quarterly financial data for the periods indicated. Each fiscal quarter contained 13 weeks (in thousands, except per share data):



	Fiscal 2019
	December 31, 2019			October 1, 2019		July 2, 2019			April 2, 2019
Revenue	$	113,871		$	118,304	$	120,190		$	110,046
Income (loss) from operations ⁽¹⁾	$	247		$	5,044	$	1,238		$	(1,090	)
Net (loss) income	$	(1,183	)	$	4,243	$	438		$	(1,851	)
Basic (loss) income per share	$	(0.03	)	$	0.10	$	0.10		$	(0.04	)
Diluted (loss) income per share	$	(0.03	)	$	0.09	$	0.10		$	(0.04	)

	Fiscal 2018
	January 1, 2019			October 2, 2018		July 3, 2018			April 3, 2018
Revenue	$	113,193		$	116,727	$	117,395		$	110,526
Income (loss) from operations^(2)(3)(4)	$	950		$	2,132	$	(4,162	)	$	(2,678	)
Net income (loss)	$	19		$	1,050	$	(5,935	)	$	(3,575	)
Basic income (loss) per share	$	—		$	0.02	$	(0.14	)	$	(0.09	)
Diluted income (loss) per share	$	—		$	0.02	$	(0.14	)	$	(0.09	)

_____________


(1)	The second quarter of 2019 includes an impairment charge of $2.2 million. The Company did not impair any restaurants in the third and fourth quarters of 2019. The fourth quarter includes a write down of $3.6 million related to assets held for sale.


(2)	The second quarter of 2018 includes a $3.4 million charge for the final assessment related to data breach liabilities and a $0.3 million charge for the settlement of a Delaware gift card litigation.

(3)

(4)

Business and Summary of Significant Accounting Policies (Business) (Details)	12 Months Ended
	Dec. 31, 2019 segment restaurant state	Jan. 01, 2019 restaurant	Jan. 02, 2018 restaurant
Description of business and summary of significant accoutning policies
Number of states in which Noodles & Company operates \| state	29
Number of operating segments \| segment	1
Number of reportable segments \| segment	1
Company-Owned [Member]
Description of business and summary of significant accoutning policies
Number of restaurants \| restaurant	389
Franchise
Description of business and summary of significant accoutning policies
Number of restaurants \| restaurant	68	65	66

Business and Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019
Credit Card Receivable
Cash and Cash Equivalents [Line Items]
Cash equivalents	$ 1.0	$ 1.6

Business and Summary of Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Inventory [Line Items]
Inventories	$ 9,871	$ 9,646
Smallwares Inventory
Inventory [Line Items]
Inventories	$ 6,600	$ 6,500

Business and Summary of Significant Accounting Policies (Property & Equipment) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Property, Plant and Equipment [Line Items]
Depreciation	$ 22.0	$ 22.7	$ 24.5
Internal payroll costs capitalized	0.4	0.2	0.9
Interest costs capitalized	$ 0.3	$ 0.1	$ 0.2
Leasehold Improvements \| Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	20 years
Furniture and Fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	15 years
Furniture and Fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	7 years
Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years

Business and Summary of Significant Accounting Policies (Intangibles, net) (Details) - Franchise Rights	12 Months Ended
	Dec. 31, 2019
Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average remaining contractual term (in years)	6 years
Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average remaining contractual term (in years)	13 years

Business and Summary of Significant Accounting Policies (Debt Issuance Costs) (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019
Accounting Policies [Abstract]
Debt issuance costs	$ 1.4	$ 1.7

Business and Summary of Significant Accounting Policies (Revenue Recognition) (Details) - restaurant	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Franchisor Disclosure [Line Items]
Percent of gift cards expected to be unredeemed (percent)	9.00%
Gift card estimated redemption period	24 months
Franchise
Franchisor Disclosure [Line Items]
Number of restaurants	68	65	66
Number of restaurants opened during period	1	0	3
Number of company-owned restaurants acquired by franchisees	5

Business and Summary of Significant Accounting Policies (Advertising and Marketing Costs) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Accounting Policies [Abstract]
Advertising and marketing costs	$ 6.1	$ 6.0	$ 5.7

Business and Summary of Significant Accounting Policies (Adoption of New Lease Standard) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 02, 2019	Jan. 01, 2019	Jan. 02, 2018	Jan. 03, 2017
Assets
Cash and cash equivalents	$ 10,459		$ 4,655
Accounts receivable	3,503		2,391
Inventories	9,871		9,646
Prepaid expenses and other assets	5,386		6,474
Income tax receivable	103		185
Total current assets	29,322		23,351
Property and equipment, net	128,867		138,774
Operating lease assets, net	209,717		0
Goodwill	7,154		6,400	$ 6,400
Intangibles, net	883		1,291
Other assets, net	2,576		2,216
Total long-term assets	349,197		148,681
Total assets	378,519		172,032
Liabilities and Stockholders’ Equity
Accounts payable	9,351		7,854
Accrued payroll and benefits	13,479		13,391
Accrued expenses and other current liabilities	11,679		11,183
Current operating lease liabilities	22,775		0
Current portion of long-term debt	750		719
Total current liabilities	58,034		33,147
Long-term debt, net	40,497		44,183
Long-term operating lease liabilities, net	225,014		0
Deferred rent	0		37,334
Deferred tax liabilities, net	200		133
Other long-term liabilities	4,203		4,554
Total liabilities	327,948		119,351
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of December 31, 2019 and January 1, 2019; no shares issued or outstanding	0		0
Common stock—$0.01 par value, 180,000,000 shares authorized as of December 31, 2019 and January 1, 2019; 46,557,934 issued and 44,134,063 outstanding as of December 31, 2019 and 46,353,309 issued and 43,929,438 outstanding as of January 1, 2019	466		464
Treasury stock, at cost, 2,423,871 shares as of December 31, 2019 and January 1, 2019, respectively	(35,000)		(35,000)
Additional paid-in capital	200,585		198,352
Accumulated deficit	(115,480)		(111,135)
Total stockholders’ equity	50,571		52,681	$ 35,861	$ 25,818
Total liabilities and stockholders’ equity	$ 378,519		$ 172,032
ASU No. 2016-02
Assets
Cash and cash equivalents		$ 4,655
Accounts receivable		2,616
Inventories		9,646
Prepaid expenses and other assets		3,231
Income tax receivable		185
Total current assets		20,333
Property and equipment, net		139,618
Operating lease assets, net		219,883
Goodwill		6,400
Intangibles, net		1,224
Other assets, net		2,216
Total long-term assets		369,341
Total assets		389,674
Liabilities and Stockholders’ Equity
Accounts payable		7,854
Accrued payroll and benefits		13,391
Accrued expenses and other current liabilities		10,630
Current operating lease liabilities		0
Current portion of long-term debt		719
Total current liabilities		32,594
Long-term debt, net		44,183
Long-term operating lease liabilities, net		260,931
Deferred rent		148
Deferred tax liabilities, net		133
Other long-term liabilities		4,996
Total liabilities		342,985
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of December 31, 2019 and January 1, 2019; no shares issued or outstanding		0
Common stock—$0.01 par value, 180,000,000 shares authorized as of December 31, 2019 and January 1, 2019; 46,557,934 issued and 44,134,063 outstanding as of December 31, 2019 and 46,353,309 issued and 43,929,438 outstanding as of January 1, 2019		464
Treasury stock, at cost, 2,423,871 shares as of December 31, 2019 and January 1, 2019, respectively		(35,000)
Additional paid-in capital		198,352
Accumulated deficit		(117,127)
Total stockholders’ equity		46,689
Total liabilities and stockholders’ equity		389,674
ASU No. 2016-02 \| Adjustments Due to the Adoption of Topic 842
Assets
Cash and cash equivalents		0
Accounts receivable		225
Inventories		0
Prepaid expenses and other assets		(3,243)
Income tax receivable		0
Total current assets		(3,018)
Property and equipment, net		844
Operating lease assets, net		219,883
Goodwill		0
Intangibles, net		(67)
Other assets, net		0
Total long-term assets		220,660
Total assets		217,642
Liabilities and Stockholders’ Equity
Accounts payable		0
Accrued payroll and benefits		0
Accrued expenses and other current liabilities		(553)
Current operating lease liabilities		0
Current portion of long-term debt		0
Total current liabilities		(553)
Long-term debt, net		0
Long-term operating lease liabilities, net		260,931
Deferred rent		(37,186)
Deferred tax liabilities, net		0
Other long-term liabilities		442
Total liabilities		223,634
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of December 31, 2019 and January 1, 2019; no shares issued or outstanding		0
Common stock—$0.01 par value, 180,000,000 shares authorized as of December 31, 2019 and January 1, 2019; 46,557,934 issued and 44,134,063 outstanding as of December 31, 2019 and 46,353,309 issued and 43,929,438 outstanding as of January 1, 2019		0
Treasury stock, at cost, 2,423,871 shares as of December 31, 2019 and January 1, 2019, respectively		0
Additional paid-in capital		0
Accumulated deficit		(5,992)
Total stockholders’ equity		(5,992)
Total liabilities and stockholders’ equity		$ 217,642

Supplemental Financial Information (Accounts Receivable) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 3,503	$ 2,391
Tenant improvement receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	0	82
Insurance receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	744	69
Vendor rebate receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	788	639
Franchise and other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 1,971	$ 1,601

Supplemental Financial Information (Prepaid Expenses and Other Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Supplemental Financial Information [Abstract]
Prepaid occupancy related costs	$ 834	$ 4,053
Other prepaid expenses	2,799	2,416
Other current assets	1,753	5
Prepaid expenses and other assets	$ 5,386	$ 6,474

Supplemental Financial Information (Property and Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 326,222	$ 322,670
Accumulated depreciation and amortization	(197,355)	(183,896)
Property and equipment, net	128,867	138,774
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	200,580	197,571
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	122,752	121,479
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,890	$ 3,620

Supplemental Financial Information (Assets and Liabilities Held for Sale) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Assets
Current assets, total	$ 339
Current operating lease assets	1,710
Current assets held for sale	1,747
Liabilities
Current operating lease liabilities	1,408
Net assets held for sale	$ 37

Supplemental Financial Information (Accrued Payroll and Benefits) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Supplemental Financial Information [Abstract]
Accrued payroll and related liabilities	$ 6,364	$ 6,333
Accrued bonus	3,505	4,250
Insurance liabilities	3,610	2,808
Accrued payroll and benefits	$ 13,479	$ 13,391

Supplemental Financial Information (Accrued Expense and Other Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Jul. 03, 2018
Supplemental Financial Information [Abstract]
Gift card liability	$ 2,398	$ 3,284	$ 300
Occupancy related	1,458	2,600
Utilities	1,379	1,582
Deferred revenue	555	0
Current portion of finance lease liability	510	264
Other current liabilities	5,379	3,453
Accrued expenses and other current liabilities	$ 11,679	$ 11,183

Goodwill and Intangible Assets (Goodwill Roll-forward) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 6,400	$ 6,400
Goodwill, Acquisition	754	0
Goodwill, ending balance	$ 7,154	$ 6,400

Goodwill and Intangible Assets (Schedule of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Amortized intangible assets	$ 992	$ 1,275
Accumulated Amortization	(388)	(436)
Amortized intangible assets net	604	839
Non-amortized intangible assets:
Intangibles, net	883	1,291
Reacquired franchise rights
Acquired Finite-Lived Intangible Assets [Line Items]
Reacquired franchise rights	992	1,125
Favorable leases
Acquired Finite-Lived Intangible Assets [Line Items]
Intangibles	0	150
Non-amortized intangible assets:
Trademark rights and transferable liquor licenses	0	150
Trademark rights and transferable liquor licenses
Acquired Finite-Lived Intangible Assets [Line Items]
Intangibles	279	452
Non-amortized intangible assets:
Trademark rights and transferable liquor licenses	$ 279	$ 452

Goodwill and Intangible Assets (Schedule of Intangible Amortization Expense) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 70
2021	70
2022	72
2023	70
2024	70
Thereafter	252
Total	$ 604	$ 839

Goodwill and Intangible Assets (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018	Jan. 02, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment charges	$ 0	$ 0	$ 0
Impairment charges related to non-amortizable intangible assets	$ 0	$ 0	$ 0
ASU No. 2016-02
Finite-Lived Intangible Assets [Line Items]
Net favorable lease intangible reclassified to right-of-use asset				$ 100,000

Long-Term Debt (Narrative) (Details) - USD ($)		12 Months Ended					14 Months Ended	21 Months Ended
Long-Term Debt (Narrative) (Details) - USD ($)	May 09, 2018	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018	Nov. 20, 2024	Sep. 30, 2021	Nov. 20, 2019
Debt Instrument [Line Items]
Amount outstanding				$ 42,600,000
Unamortized debt issuance costs				1,400,000
Letters of credit outstanding				3,200,000
Interest expense				2,942,000	$ 4,305,000	$ 3,839,000
Amortization of Debt Issuance Costs				474,000	607,000	465,000
Loss on extinguishment of debt				$ 746,000	626,000	$ 0
Minimum
Debt Instrument [Line Items]
Interest rate during period				4.24%
Maximum
Debt Instrument [Line Items]
Interest rate during period				7.25%
2018 Credit Subfacility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 15,000,000.0
2018 Swingline Subfacility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 10,000,000.0
Debt instrument, term	4 years
Amended 2018 Credit Facility \| Minimum
Debt Instrument [Line Items]
Commitment fee percentage	0.20%
Amended 2018 Credit Facility \| Maximum
Debt Instrument [Line Items]
Commitment fee percentage	0.35%
Amended 2018 Credit Facility \| LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Amended 2018 Credit Facility \| LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%
Amended 2018 Credit Facility \| Base Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Amended 2018 Credit Facility \| Base Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Amended 2018 Credit Facility \| Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Amended 2018 Credit Facility \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Revolving Credit Facility \| 2018 Term Loan Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 25,000,000.0
Revolving Credit Facility \| 2018 Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 65,000,000.0
Revolving Credit Facility \| Amended 2018 Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity									$ 75,000,000.0
Capital expenditure limit in 2020 per agreement									37,000,000.0
Capital expenditure limit in 2021 through 2024 per agreement									$ 45,000,000.0
Letter of Credit \| Prior Credit Facility
Debt Instrument [Line Items]
Loss on extinguishment of debt					$ 600,000
Scenario, Forecast
Debt Instrument [Line Items]
Quarterly principal payments due		$ 531,250	$ 375,000				$ 625,000	$ 187,500

Long-Term Debt (Debt Maturities) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Debt Disclosure [Abstract]
Year 1	$ 750
Year 2	938
Year 3	1,656
Year 4	2,219
Year 5	37,055
Total	$ 42,618

Restaurant Impairments, Closure Costs and Asset Disposals (Impairments, Closure Costs, and Asset Disposals) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Restructuring and Related Activities [Abstract]
Restaurant impairments	$ 6,218	$ 1,453	$ 16,154
Closure costs	(54)	4,149	20,052
Loss on disposal of assets and other	1,583	1,540	1,240
Loss on impairments, closure costs, and disposals	$ 7,747	$ 7,142	$ 37,446

Restaurant Impairments, Closure Costs and Asset Disposals (Narrative) (Details) $ in Thousands	3 Months Ended							12 Months Ended
	Dec. 31, 2019 restaurant	Oct. 01, 2019 restaurant	Jan. 01, 2019 restaurant	Oct. 02, 2018 restaurant	Jul. 03, 2018 restaurant	Apr. 03, 2018 restaurant	Apr. 04, 2017 restaurant	Dec. 31, 2019 USD ($) restaurant	Jan. 01, 2019 USD ($) restaurant	Jan. 02, 2018 USD ($) restaurant
Restructuring and Related Activities [Abstract]
Number of restaurants impaired	0	0	0	0	0			2	1	34
Number of restaurants closed			7	3	7	2	55	5	19
Closure costs \| $								$ (54)	$ 4,149	$ 20,052

Income Taxes (Domestic and foreign components of (loss) income before income taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Income Tax Examination [Line Items]
Income (loss) before income taxes	$ 1,751	$ (8,689)	$ (37,689)
Domestic
Income Tax Examination [Line Items]
Income (loss) before income taxes	1,751	(8,689)	(42,047)
Foreign
Income Tax Examination [Line Items]
Income (loss) before income taxes	$ 0	$ 0	$ 4,358

Income Taxes (Components of Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Current tax provision:
Federal	$ 0	$ 0	$ 0
State	36	35	21
Foreign	0	0	0
Total current tax provision	36	35	21
Deferred tax provision (benefit):
Federal	52	(202)	(252)
State	16	(81)	24
Foreign	0	0	0
Total deferred tax provision (benefit)	68	(283)	(228)
Total provision (benefit) for income taxes	$ 104	$ (248)	$ (207)

Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Income Tax Disclosure [Abstract]
Federal income tax provision (benefit) at federal rate	$ 368	$ (1,825)	$ (12,814)
State income tax provision (benefit), net of federal tax	168	(623)	(1,790)
Other permanent differences	327	70	674
Foreign rate differential	0	0	(463)
Tax credits	(408)	(602)	(808)
Change in valuation allowance	(913)	2,600	(159)
Tax rate change	23	(248)	13,632
Deferred tax asset write-off	566	212	2,618
Other items, net	(27)	168	(1,097)
Total provision (benefit) for income taxes	$ 104	$ (248)	$ (207)
Effective income tax rate	5.90%	2.90%	0.50%

Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 104,931	$ 50,851
Deferred tax liabilities	(65,715)	(12,212)
Total deferred tax assets	39,216	38,639
Valuation allowance	(39,416)	(38,772)
Net deferred tax liabilities	$ (200)	$ (133)

Income Taxes (Components of Deferred Income Taxes) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Deferred tax assets (liabilities):
Loss carry forwards	$ 30,255	$ 32,896
Deferred rent and franchise revenue	909	10,433
Property, equipment and intangible assets	(8,242)	(10,472)
Stock-based compensation	1,376	1,242
Tax credit carry forwards	3,936	3,528
Interest expense	0	998
Inventory smallwares	(1,748)	(1,740)
Other accrued expenses	533	959
Operating lease assets	(55,725)	0
Operating lease liabilities	67,166	0
Other	756	795
Total net deferred tax assets	39,216	38,639
Valuation allowance	(39,416)	(38,772)
Net deferred tax liabilities	$ (200)	$ (133)

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Operating Loss Carryforwards [Line Items]
Valuation allowance	$ (39,416)	$ (38,772)
Federal
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	115,500	$ 124,500
Operating loss carryforwards subject to expiration	97,900
Operating loss carryforwards indefinite lived	$ 17,700

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Jul. 31, 2018	May 24, 2018	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Class of Stock [Line Items]
Shares authorized			181,000,000
Common stock, shares authorized			180,000,000	180,000,000
Common stock, par value			$ 0.01	$ 0.01
Preferred stock, shares authorized			1,000,000	1,000,000
Preferred stock, par value			$ 0.01	$ 0.01
Issuance of common stock, net of transaction expenses			$ 0	$ 22,992	$ 29,110
Loss recognized in operations					$ 200
Class A common stock
Class of Stock [Line Items]
Common stock, shares authorized			150,000,000
Common stock, par value			$ 0.01
Common shares sold (in shares)	2,500,000
Price per share (USD per share)	$ 10.00
Issuance of common stock, net of transaction expenses	$ 23,000
Class B common stock
Class of Stock [Line Items]
Common stock, shares authorized			30,000,000
Common stock, par value		$ 0.01	$ 0.01
Shares converted (in shares)		1,522,098
Preferred stock
Class of Stock [Line Items]
Preferred stock, shares authorized			1,000,000
Preferred stock, par value			$ 0.01
Minimum \| Equity Sponsors
Class of Stock [Line Items]
Registration rights, percentage of common stock shares			10.00%

Stock-Based Compensation (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares available for grant	3,500,000
Unrecognized compensation cost	$ 5,600,000
Period for recognition	2 years 8 months 12 days
General and Administrative Expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based compensation expense	$ 2,400,000	$ 3,000,000.0	$ 1,700,000
Stock Option
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Weighted average fair value (in dollars per share)	$ 4.16	$ 5.11	$ 1.74
Exercises in period, intrinsic value	$ 0	$ 400,000	$ 0
Options vested (in shares)	(203,254)	(204,399)	(177,491)
Estimated fair value	$ 1,400,000	$ 1,900,000	$ 800,000
Restricted Stock Units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Restricted stock units vested (in shares)	231,161
Estimated fair value	$ 1,100,000
Minimum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Estimated forfeiture rate (percentage)	16.00%
Maximum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Estimated forfeiture rate (percentage)	18.00%
Stock Incentive Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock option term	10 years
Vesting period	4 years

Stock-Based Compensation (Fair Value Assumptions) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Share-based Payment Arrangement [Abstract]
Risk-free interest rate	1.80%	2.70%	2.00%
Expected term (average in years)	6 years 2 months 12 days	6 years 2 months 12 days	6 years 1 month 6 days
Expected dividend yield	0.00%	0.00%	0.00%
Expected volatility	55.70%	51.00%	39.60%
Weighted-average Black-Scholes fair value per share at date of grant	$ 4.16	$ 5.11	$ 1.74

Stock-Based Compensation (Stock Option Activity) (Details) - Stock Option $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Options, Outstanding
Outstanding, beginning of period \| shares	1,174,256
Granted \| shares	222,067
Forfeited \| shares	(182,252)
Exercised \| shares	(2,000)
Outstanding, end of period \| shares	1,212,071
Vested and expected to vest \| shares	1,170,681
Exercisable \| shares	829,273
Weighted Average Exercise Price
Weighted- average exercise price, beginning balance (USD per share) \| $ / shares	$ 11.78
Granted (USD per share) \| $ / shares	7.68
Forfeited (USD per share) \| $ / shares	7.51
Exercised (USD per share) \| $ / shares	4.58
Weighted- average exercise price, ending balance (USD per share) \| $ / shares	11.67
Vested and expected to vest (USD per share) \| $ / shares	11.80
Exercisable (USD per share) \| $ / shares	$ 13.45
Weighted- Average Remaining Years of Contractual Life
Outstanding	5 years 10 months 17 days
Vested and expected to vest	5 years 9 months 7 days
Exercisable	4 years 6 months 10 days
Aggregate Intrinsic Value
Outstanding \| $	$ 152
Vested and expected to vest \| $	150
Exercisable \| $	$ 73

Stock-Based Compensation (Non-vested Restricted Share Unit Activity) (Details) - Restricted Stock Units	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Awards
Beginning balance (in shares) \| shares	908,082
Granted (in shares) \| shares	396,552
Vested (in shares) \| shares	(231,161)
Forfeited (in shares) \| shares	(330,892)
Ending balance (in shares) \| shares	742,581
Weighted- Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 7.48
Granted (in dollars per share) \| $ / shares	7.65
Vested (in dollars per share) \| $ / shares	7.37
Forfeited (in dollars per share) \| $ / shares	7.48
Ending balance (in dollars per share) \| $ / shares	$ 7.60

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Oct. 01, 2019	Jul. 02, 2019	Apr. 02, 2019	Jan. 01, 2019	Oct. 02, 2018	Jul. 03, 2018	Apr. 03, 2018	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018	Apr. 04, 2017
Earnings Per Share [Abstract]
Net income (loss) attributable to common stockholders									$ 1,647	$ (8,441)	$ (45,449)
Shares:
Basic weighted average shares outstanding (in shares)									44,036,947	42,329,556	37,759,497
Dilutive stock options and warrants (in shares)									939,489	0	0
Diluted weighted average number of shares outstanding (in shares)									44,976,436	42,329,556	37,759,497
Earnings per share:
Basic EPS (USD per share)	$ (0.03)	$ 0.10	$ 0.10	$ (0.04)	$ 0	$ 0.02	$ (0.14)	$ (0.09)	$ 0.04	$ (0.20)	$ (1.20)
Diluted EPS (USD per share)	$ (0.03)	$ 0.09	$ 0.10	$ (0.04)	$ 0	$ 0.02	$ (0.14)	$ (0.09)	$ 0.04	$ (0.20)	$ (1.20)
Antidilutive securities excluded from computation of earnings per share									1,513,552	2,829,630	4,154,778
Shares issued upon conversion (shares)												18,500

Employee Benefit Plans (Details)	12 Months Ended				55 Months Ended
Employee Benefit Plans (Details)	Dec. 31, 2019 USD ($) $ / shares shares	Jan. 01, 2019 USD ($) $ / shares	Jan. 02, 2018 USD ($) $ / shares	Dec. 31, 2013 shares	Jan. 02, 2018 shares
Multiemployer Plans [Line Items]
Required employee age	21 years
Percentage of participants contributions vested	100.00%
Employer matching contribution	25.00%
Participant deferred compensation percentage for match	4.00%
Matching contribution expense	$ 400,000	$ 0	$ 0
Weighted-average fair value per share at date of grant \| $ / shares	$ 4.16	$ 5.11	$ 1.74
Employee Stock Purchase Plan
Multiemployer Plans [Line Items]
Maximum employee salary percentage				15.00%
Offering date percentage				85.00%
Purchase date percentage				85.00%
Number of shares authorized \| shares				750,000
Shares issued \| shares	33,912				174,463
Reserved for future issuance \| shares	575,537
Weighted-average fair value per share at date of grant \| $ / shares	$ 1.16
Employee stock purchase plan, compensation expense	$ 41,000
Other assets
Multiemployer Plans [Line Items]
Deferred compensation plan asset	2,000,000.0	$ 1,800,000
Accrued expenses and other current liabilities
Multiemployer Plans [Line Items]
Deferred compensation plan liability	$ 600,000	$ 1,000,000.0
Measurement Input, Risk Free Interest Rate \| Employee Stock Purchase Plan
Multiemployer Plans [Line Items]
Expected volatility rate	0.0189
Measurement Input, Expected Term \| Employee Stock Purchase Plan
Multiemployer Plans [Line Items]
Expected volatility rate	0.25
Measurement Input, Price Volatility \| Employee Stock Purchase Plan
Multiemployer Plans [Line Items]
Expected volatility rate	0.465
Measurement Input, Expected Dividend Rate \| Employee Stock Purchase Plan
Multiemployer Plans [Line Items]
Expected volatility rate	0

Leases (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
Leases (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Lessee, Lease, Description [Line Items]
Base lease term (in years)	10 years
Operating lease rent expense	$ 40.8	$ 41.7	$ 43.9
Options to extend lease term included in operating lease payments	158.8
Minimum lease payments for leases signed but not yet commenced	$ 11.0
Minimum
Lessee, Lease, Description [Line Items]
Lease extension term (in years)	5 years
Maximum
Lessee, Lease, Description [Line Items]
Lease extension term (in years)	15 years

Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Assets
Operating lease assets, net	$ 209,717	$ 0
Finance lease assets, net	771
Total leased assets	210,488
Liabilities
Current operating lease liabilities	22,775	0
Current portion of finance lease liability	510	264
Long-term operating lease liabilities	225,014	$ 0
Long-term finance lease liabilities	281
Total lease liabilities	$ 248,580

Leases (Components of Lease Costs) (Details) $ in Thousands	12 Months Ended
Leases (Components of Lease Costs) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Lease Cost
Operating lease cost	$ 40,753
Finance lease cost - Amortization of lease assets	661
Finance lease cost - Interest on lease liabilities	73
Operating and finance lease costs	41,487
Sublease income	(651)
Total lease cost, net	$ 40,836

Leases (Future Minimum Lease Payments) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Operating Leases
2020	$ 43,236
2021	42,530
2022	42,340
2023	40,988
2024	38,986
Thereafter	152,721
Total lease payments	360,801
Less: Imputed interest	113,012
Present value of lease liabilities	247,789
Finance Leases
2020	546
2021	225
2022	51
2023	14
2024	8
Thereafter	1
Total lease payments	845
Less: Imputed interest	54
Present value of lease liabilities	791
Total
2020	43,782
2021	42,755
2022	42,391
2023	41,002
2024	38,994
Thereafter	152,722
Total lease payments	361,646
Less: Imputed interest	113,066
Present value of lease liabilities	$ 248,580

Leases (Maturities of Lease Liabilities Under Previous Lease Accounting) (Details) $ in Thousands	Jan. 01, 2019 USD ($)
Leases [Abstract]
2019	$ 42,652
2020	39,626
2021	35,609
2022	30,611
2023	24,440
Thereafter	54,414
Total future minimum lease payments due	$ 227,352

Leases (Lease Term and Discount Rate) (Details)	Dec. 31, 2019
Leases [Abstract]
Weighted average remaining lease term - operating leases (in years)	10 years
Weighted average remaining lease term - finance leases (in years)	2 years 10 months 24 days
Weighted average discount rate - operating leases (percent)	8.60%
Weighted average discount rate - finance leases (percent)	7.20%

Leases (Supplemental Cash Flow Information) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Leases [Abstract]
Cash paid for lease operating liabilities	$ 43,203
Cash paid for lease finance liabilities	763
Cash paid for lease liabilities	43,966
Right-of-use assets obtained in exchange for new operating lease liabilities	11,211
Right-of-use assets obtained in exchange for new finance lease liabilities	253
Right-of-use assets obtained in exchange for new lease liabilities	$ 11,464

Supplemental Disclosures to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018
Class of Stock [Line Items]
Interest paid (net of amounts capitalized)	$ 2,800	$ 3,800	$ 3,482
Income taxes (refunded) paid	(98)	42	(158)
Changes in purchases of property and equipment accrued in accounts payable, net	1,149	(1,339)	(842)
Common Stock \| Class A common stock
Class of Stock [Line Items]
Conversion of Series A convertible preferred stock to common stock	$ 0	$ 0	$ 18,500

Commitments and Contingencies (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2019	Jan. 02, 2018	Jun. 07, 2018
Commitments and Contingencies Disclosure [Abstract]
Payments made		$ 4.0
Loss contingency accrual			$ 11.0
Increase to accrual for final assessment	$ 3.4

Related Party Transactions (Details)	12 Months Ended
Related Party Transactions (Details)	Dec. 31, 2019
Stockholders Agreement \| L Catterton
Related Party Transaction [Line Items]
Stock ownership threshold for board member designation (percent)	10.00%
Securities Purchase Agreement \| Mill Road
Related Party Transaction [Line Items]
Stock ownership threshold for board member designation (percent)	10.00%

Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Jan. 02, 2018	Jul. 03, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Gift card liability	$ 2,398	$ 3,284		$ 300
Revenue recognized	5,300	5,900	$ 5,500
Gift card breakage	$ 400	1,000	$ 300
Period in which initial fees received from franchisees will be recognized as revenue	20 years
Retained earnings	$ (115,480)	(111,135)
Accrued expenses and other current liabilities
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Gift card liability	2,400	3,300
Other long-term liabilities
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Gift card liability, non-current	900	400
Calculated under Revenue Guidance in Effect on Adoption of Topic 606 \| ASU No. 2014-09
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized	$ 200
Retained earnings		$ 1,500

Revenue Recognition (Performance Obligation) (Details) $ in Millions	Dec. 31, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 0.1
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 0.1
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 0.1
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 0.1
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 0.1
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 0.7
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Performance obligation, period

Selected Quarterly Financial Data (unaudited) (Details) $ / shares in Units, $ in Thousands	3 Months Ended									12 Months Ended
	Dec. 31, 2019 USD ($) restaurant $ / shares	Oct. 01, 2019 USD ($) restaurant $ / shares	Jul. 02, 2019 USD ($) $ / shares	Apr. 02, 2019 USD ($) $ / shares	Jan. 01, 2019 USD ($) restaurant $ / shares	Oct. 02, 2018 USD ($) restaurant $ / shares	Jul. 03, 2018 USD ($) restaurant $ / shares	Apr. 03, 2018 USD ($) restaurant $ / shares	Apr. 04, 2017 restaurant	Dec. 31, 2019 USD ($) restaurant $ / shares	Jan. 01, 2019 USD ($) restaurant $ / shares	Jan. 02, 2018 USD ($) restaurant $ / shares
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 113,871	$ 118,304	$ 120,190	$ 110,046	$ 113,193	$ 116,727	$ 117,395	$ 110,526		$ 462,411	$ 457,841	$ 456,492
Income (loss) from operations	247	5,044	1,238	(1,090)	950	2,132	(4,162)	(2,678)		5,439	(3,758)	(33,850)
Net income (loss)	$ (1,183)	$ 4,243	$ 438	$ (1,851)	$ 19	$ 1,050	$ (5,935)	$ (3,575)		$ 1,647	$ (8,441)	$ (37,482)
Basic EPS (USD per share) \| $ / shares	$ (0.03)	$ 0.10	$ 0.10	$ (0.04)	$ 0	$ 0.02	$ (0.14)	$ (0.09)		$ 0.04	$ (0.20)	$ (1.20)
Diluted EPS (USD per share) \| $ / shares	$ (0.03)	$ 0.09	$ 0.10	$ (0.04)	$ 0	$ 0.02	$ (0.14)	$ (0.09)		$ 0.04	$ (0.20)	$ (1.20)
Impairment of restaurants			$ 2,200					$ 400
Number of restaurants impaired \| restaurant	0	0			0	0	0			2	1	34
Write down related to assets held for sale	$ 3,600
Data breach liabilities							$ 3,400
Gift card liability	$ 2,398				$ 3,284		$ 300			$ 2,398	$ 3,284
Number of restaurants closed \| restaurant					7	3	7	2	55	5	19
Closure costs					$ 600	$ 1,500	$ 1,500	$ 600

Subsequent Event (Details) - Subsequent Event - RCRG	Jan. 29, 2020 restaurant
Subsequent Event [Line Items]
Number of restaurants to be sold	9
Number of restaurants to be developed between 2021 and 2032	22

Label	Element	Value
Shareholders Equity, Conversion Of Class B Common Stock To Class A Common Stock On One-To-One Basis, Shares	ndls_ShareholdersEquityConversionOfClassBCommonStockToClassACommonStockOnOneToOneBasisShares	1,522,098
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (1,506,000)
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(5,992,000)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(1,506,000)
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (5,992,000)