FIESTA RESTAURANT GROUP, INC., 10-Q filed on 11/5/2013
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 29, 2013
Oct. 31, 2013
Document And Entity Information [Abstract]
 
 
Entity Registrant Name
FIESTA RESTAURANT GROUP, INC. 
 
Entity Central Index Key
0001534992 
 
Current Fiscal Year End Date
--12-29 
 
Entity Filer Category
Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 29, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q3 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
23,638,885 
Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2013
Dec. 30, 2012
Current assets:
 
 
Cash
$ 5,886 
$ 15,533 
Trade receivables
6,997 
5,935 
Inventories
2,457 
2,750 
Prepaid rent
2,388 
2,094 
Prepaid expenses and other current assets
4,617 
2,596 
Deferred income taxes
2,424 
2,049 
Total current assets
24,769 
30,957 
Property and equipment, net
144,407 
126,516 
Goodwill
123,484 
123,484 
Intangible assets, net
141 
202 
Deferred income taxes
12,642 
13,101 
Deferred financing costs, net
4,511 
5,690 
Other assets
3,308 
3,779 
Total assets
313,262 
303,729 
Current liabilities:
 
 
Current portion of long-term debt
56 
60 
Accounts payable
8,966 
10,411 
Accrued interest
2,303 
6,761 
Accrued payroll, related taxes and benefits
12,871 
14,719 
Accrued real estate taxes
4,648 
3,366 
Other liabilities
5,968 
5,961 
Total current liabilities
34,812 
41,278 
Long-term debt, net of current portion
200,847 
200,889 
Lease financing obligations
3,035 
3,029 
Deferred income--sale-leaseback of real estate
34,696 
36,096 
Other liabilities
11,957 
11,933 
Total liabilities
285,347 
293,225 
Commitments and contingencies
   
   
Stockholder's equity:
 
 
Common stock, par value $.01; authorized 100,000,000 shares; issued 23,643,983 and 23,514,437 shares, respectively, and outstanding 22,999,917 and 22,748,241 shares, respectively
230 
227 
Additional paid-in capital
12,852 
10,254 
Retained earnings
14,833 
23 
Total stockholder's equity
27,915 
10,504 
Total liabilities and stockholder's equity
$ 313,262 
$ 303,729 
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
Sep. 29, 2013
Dec. 30, 2012
Statement of Financial Position [Abstract]
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
23,643,983 
23,514,437 
Common stock, shares outstanding
22,999,917 
22,748,241 
Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2013
Sep. 30, 2012
Sep. 29, 2013
Sep. 30, 2012
Revenues:
 
 
 
 
Restaurant sales
$ 140,069 
$ 127,648 
$ 413,435 
$ 381,422 
Franchise royalty revenues and fees
609 
525 
1,747 
1,726 
Total revenues
140,678 
128,173 
415,182 
383,148 
Costs and expenses:
 
 
 
 
Cost of sales
45,162 
41,021 
132,891 
123,106 
Restaurant wages and related expenses (including stock-based compensation expense of $1, $1, $2 and $9, respectively)
36,979 1
33,860 1
107,914 1
101,821 1
Restaurant rent expense
6,853 
6,224 
19,699 
15,421 
Other restaurant operating expenses
18,283 
16,529 
51,786 
48,119 
Advertising expense
4,271 
3,757 
13,275 
11,923 
General and administrative (including stock-based compensation expense of $657, $379, $1,677 and $1,594, respectively)
11,685 2
11,198 2
35,895 2
32,800 2
Depreciation and amortization
5,129 
4,486 
15,117 
13,703 
Pre-opening costs
590 
232 
2,379 
1,056 
Impairment and other lease charges
(312)
(45)
239 
6,816 
Other income
(57)
(554)
Total operating expenses
128,583 
117,262 
378,641 
354,765 
Income from operations
12,095 
10,911 
36,541 
28,383 
Interest expense
4,457 
5,036 
14,475 
19,334 
Income before income taxes
7,638 
5,875 
22,066 
9,049 
Provision for income taxes
2,596 
2,226 
7,256 
3,344 
Net income
$ 5,042 
$ 3,649 
$ 14,810 
$ 5,705 
Basic and diluted net income per share
$ 0.21 
$ 0.16 
$ 0.63 
$ 0.25 
Basic and diluted weighted average common shares outstanding
22,986,615 
22,747,044 
22,921,233 
22,937,270 
Consolidated Statements of Operations (Unaudited) (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2013
Sep. 30, 2012
Sep. 29, 2013
Sep. 30, 2012
Stock-based compensation
$ 700 
$ 400 
$ 1,700 
$ 1,600 
Restaurant Wages And Related Expenses [Member]
 
 
 
 
Stock-based compensation
General and Administrative Expense [Member]
 
 
 
 
Stock-based compensation
$ 657 
$ 379 
$ 1,677 
$ 1,594 
Consolidated Statement of Changes in Stockholder's Equity Statement (USD $)
In Thousands, except Share data, unless otherwise specified
Total
USD ($)
Number of Common Stock Shares [Member]
Common Stock [Member]
USD ($)
Additional Paid-in Capital [Member]
USD ($)
Retained Earnings [Member]
USD ($)
Beginning balance at Jan. 01, 2012
$ (4,672)
 
$ 227 
$ 3,345 
$ (8,244)
Beginning shares at Jan. 01, 2012
 
23,161,822 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Capital contributions
4,154 
 
 
4,154 
 
Stock-based compensation
1,400 
 
 
1,400 
 
Issuance of non-vested shares at spin-off
 
(434,397)
 
 
 
Vesting of restricted shares
 
20,799 
 
 
 
Net income
5,705 
 
 
 
5,705 
Ending balance at Sep. 30, 2012
6,587 
 
227 
8,899 
(2,539)
Ending shares at Sep. 30, 2012
 
22,748,224 
 
 
 
Beginning balance at Dec. 30, 2012
10,504 
 
227 
10,254 
23 
Beginning shares at Dec. 30, 2012
22,748,241 
22,748,241 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Capital contributions
96 
 
 
96 
 
Stock-based compensation
1,679 
 
 
1,679 
 
Vesting of restricted shares
 
 
 
 
Vesting of restricted shares
 
251,676 
 
 
 
Vesting of restricted shares and related tax benefit
826 
 
 
823 
 
Net income
14,810 
 
 
 
14,810 
Ending balance at Sep. 29, 2013
$ 27,915 
 
$ 230 
$ 12,852 
$ 14,833 
Ending shares at Sep. 29, 2013
22,999,917 
22,999,917 
 
 
 
Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 29, 2013
Sep. 30, 2012
Cash flows from operating activities:
 
 
Net income
$ 14,810 
$ 5,705 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
Loss (gain) on disposals of property and equipment
(261)
101 
Stock-based compensation
1,679 
1,401 
Impairment and other lease charges
239 
6,816 
Loss on settlements of lease financing obligations
120 
Depreciation and amortization
15,117 
13,703 
Amortization of deferred financing costs
1,194 
1,234 
Amortization of deferred gains from sale-leaseback transactions
(2,588)
(1,493)
Accretion of interest on lease financing obligations
220 
Deferred income taxes
34 
(1,221)
Changes in other operating assets and liabilities
(9,921)
(5,308)
Net cash provided by operating activities
20,309 
21,278 
Capital expenditures:
 
 
New restaurant development
(28,442)
(16,790)
Restaurant remodeling
(2,602)
(5,931)
Other restaurant capital expenditures
(4,152)
(5,300)
Corporate and restaurant information systems
(3,595)
(849)
Total capital expenditures
38,791 
28,870 
Properties purchased for sale-leaseback
(4,438)
(2,082)
Proceeds from sale-leaseback transactions
10,774 
1,491 
Proceeds from sales of other properties
1,734 
934 
Net cash used in investing activities
(30,721)
(28,527)
Cash flows from financing activities:
 
 
Borrowings from Carrols Restaurant Group, Inc., net
500 
Capital contribution from Carrols Restaurant Group, Inc.
2,500 
Excess tax benefit from vesting of restricted shares
826 
Borrowings on revolving credit facility
 
2,100 
Repayments on revolving credit facility
 
(2,100)
Principal payments on capital leases
(46)
(45)
Deferred financing costs
(231)
Settlement of lease financing obligations
(6,047)
Other
(15)
Net cash provided by (used in) fnancing activities
765 
(3,323)
Net increase (decrease) in cash
(9,647)
(10,572)
Cash, beginning of period
15,533 
13,670 
Cash, end of period
5,886 
3,098 
Supplemental disclosures:
 
 
Interest paid on long-term debt
18,172 
18,668 
Interest paid on lease financing obligations
191 
4,143 
Accruals for capital expenditures
2,123 
579 
Income tax payments, net
7,106 
2,601 
Non-cash reduction of lease financing obligations
114,165 
Non-cash reduction of assets subject to lease financing obligations
80,419 
Non-cash capital contribution from former parent
96 
1,654 
Elimination of LFO Requirement During Period [Member]
 
 
Supplemental disclosures:
 
 
Non-cash reduction of lease financing obligations
 
114,200 
Non-cash reduction of assets subject to lease financing obligations
 
80,400 
Transfer of income tax related assets and liabilities [Member] |
Carrols Restaurant Group [Member]
 
 
Supplemental disclosures:
 
 
Non-cash capital contribution from former parent
$ 100 
$ 1,700 
Basis of Presentation
Basis of Presentation
Basis of Presentation
Business Description. Fiesta Restaurant Group, Inc. ("Fiesta Restaurant Group" or "Fiesta") owns, operates and franchises two fast-casual restaurant brands through its wholly-owned subsidiaries Pollo Operations, Inc., and its subsidiaries, and Pollo Franchise, Inc., (collectively “Pollo Tropical”) and Taco Cabana, Inc. and its subsidiaries (collectively “Taco Cabana”). Unless the context otherwise requires, Fiesta and its subsidiaries, Pollo Tropical and Taco Cabana, are collectively referred to as the “Company”. At September 29, 2013, Fiesta operated 100 Pollo Tropical® restaurants, of which 94 were located in Florida, four were located in Georgia and two were located in Tennessee, and franchised a total of 38 Pollo Tropical restaurants, including 18 in Puerto Rico, one in Ecuador, two in Honduras, one in the Bahamas, two in Trinidad & Tobago, three in Venezuela, three in Costa Rica, two in Panama, one in the Dominican Republic, one in India and four on college campuses in Florida. At September 29, 2013, the Company also owned and operated 164 Taco Cabana® restaurants, of which 161 were located in Texas and three were located in Oklahoma, and franchised a total of eight Taco Cabana restaurants, including four in New Mexico, one in Georgia and three non-traditional locations (two college campuses and one sports arena) in Texas.
Spin-Off from Carrols Restaurant Group, Inc. On May 7, 2012, Carrols Restaurant Group, Inc. ("Carrols Restaurant Group" or "Carrols") completed the spin-off of Fiesta through the distribution of all of the outstanding shares of Fiesta Restaurant Group's common stock to the stockholders of Carrols Restaurant Group (the "Spin-off"). As a result of the Spin-off, Fiesta Restaurant Group is now an independent public company whose common stock is traded on The NASDAQ Global Select Market under the symbol “FRGI.”
In connection with the Spin-off, Fiesta and Carrols entered into several agreements that govern Carrols' post Spin-off relationship with Fiesta, including a Separation and Distribution Agreement, Employee Matters Agreement, Tax Matters Agreement and Transition Services Agreement ("TSA"). See Note 4—Former Related Party Transactions.
Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. The condensed consolidated financial statements have been prepared as if the Company was in existence for all periods presented.
Through the date of the Spin-off, these unaudited condensed consolidated financial statements have been prepared on a stand-alone basis from the separate records maintained by Carrols and may not necessarily be indicative of the results of operations or cash flows that would have resulted had allocations and other related-party transactions been consummated with unrelated parties or had the Company been an independent, publicly traded company during all of the periods presented. The unaudited interim condensed consolidated financial statements reflect the historical financial position, results of operations and cash flows of the Company as it has historically operated, in conformity with U.S. Generally Accepted Accounting Principles ("GAAP"). All intercompany transactions have been eliminated in consolidation.
In connection with the Spin-off, the board of directors of the Company authorized a 23,161.8 for one split of its outstanding common stock that was effective on April 19, 2012. Accordingly, all references to share and per share amounts related to common stock included in the unaudited condensed consolidated financial statements and accompanying notes have been adjusted to reflect the stock split and change in the number of authorized shares. The stock split has been retroactively applied to the Company’s financial statements.
Fiscal Year. The Company uses a 52-53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended December 30, 2012 contained 52 weeks. The three and nine months ended September 29, 2013 and September 30, 2012 each contained thirteen and thirty-nine weeks, respectively.
Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and nine months ended September 29, 2013 and September 30, 2012 have been prepared without an audit pursuant to the rules and regulations of the Securities Exchange Commission and do not include certain information and footnotes required by GAAP for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three and nine months ended September 29, 2013 and September 30, 2012 are not necessarily indicative of the results to be expected for the full year.
These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 30, 2012 included in the Company's 2012 Annual Report on Form 10-K. The December 30, 2012 balance sheet data is derived from those audited financial statements.
Allocations. Through the date of the Spin-off, Carrols provided administrative support to the Company for executive management, information systems and certain accounting, legal and other administrative functions. The cost of these services were allocated to the Company based primarily on a pro-rata share of either the Company’s revenues, number of restaurants or number of employees. The allocations may not reflect the expenses the Company would have incurred as an independent, publicly traded company for the periods presented. Following the Spin-off, certain of these functions continue to be provided by Carrols under the TSA, and the Company is performing certain functions using its own resources or purchased services from third parties. Refer to Note 4—Former Related Party Transactions for further discussion related to agreements entered into effective as of the Spin-off.
Management believes that its allocations are reasonable and based on a systematic and rational method; however, they are not necessarily indicative of the actual financial results of the Company, including such expenses that would have been incurred by the Company had it been operating as a separate, stand-alone entity for the periods presented. As a stand-alone entity, the Company expects to incur expenses that may not be comparable in future periods to what is presented for the historical periods presented in the condensed consolidated financial statements. Consequently, the financial information herein may not reflect the financial position, results of operations and cash flows of the Company in the future or if the Company had been an independent stand-alone entity during all periods presented. In our opinion, the condensed consolidated financial statements include all adjustments necessary for a fair presentation of its results of operations.
  Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value:
Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments.
Senior Secured Second Lien Notes. The fair value of outstanding senior secured second lien notes, which was approximately $212.5 million at September 29, 2013, is based on recent trading values, which are considered Level 1. The senior secured second lien notes are recorded in Long-term debt, net of current portion and had a carrying value of $200.0 million at September 29, 2013.
See Note 2 for discussion of the fair value measurement of non-financial assets.
Use of Estimates. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: allocations of Carrols' general and administrative expenses and interest expense on amounts due to Carrols prior to the Spin-off, accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill and long-lived assets and lease accounting matters. Actual results could differ from those estimates.
Reclassifications. Certain amounts have been reclassified from Restaurant rent expense, Advertising expense and Other restaurant operating expenses to Pre-opening costs in order to conform to the current year presentation.
Impairment of Long-Lived Assets and Other Lease Charges
Impairment of Long Lived Assets and Other Lease Charges [Text Block]
Impairment of Long-Lived Assets and Other Lease Charges
The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries.
The Company determined the fair value of restaurant equipment, for those restaurants reviewed for impairment, based on current economic conditions and the Company’s history of using these assets in the operation of its business. For those restaurants reviewed for impairment where the Company owns the land and building, the Company also utilized third-party information such as a broker market price opinion to determine the fair value of the property. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. The Level 3 assets measured at fair value associated with impairment charges recorded during the nine months ended September 29, 2013 totaled less than $0.1 million.
Impairment of long-lived assets for the Company’s segments and other lease charges recorded were as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 29, 2013
 
September 30, 2012
 
September 29, 2013
 
September 30, 2012
Pollo Tropical
$
(37
)
 
$
94

 
$
(99
)
 
$
5,931

Taco Cabana
(275
)
 
(139
)
 
338

 
885

 
$
(312
)
 
$
(45
)
 
$
239

 
$
6,816


During the three and nine months ended September 29, 2013, the Company recorded lease charge recoveries, net of other lease charges, of $(0.3) million and $(0.2) million, respectively, related to previously closed locations. The Company also recorded an impairment charge of $0.4 million related to a Taco Cabana restaurant during the nine months ended September 29, 2013.
During the nine months ended September 30, 2012, the Company recorded other lease charges, net of recoveries, of $1.5 million and impairment charges of $4.1 million associated with the closure of the Company’s five Pollo Tropical restaurants in New Jersey in the first quarter of 2012. The Company also recorded an impairment charge of $0.5 million related to a Pollo Tropical restaurant and $1.0 million related to two Taco Cabana restaurants and a recovery of other lease charges of $(0.2) million related to a non-operating Pollo Tropical restaurant during the nine months ended September 30, 2012.
Other Liabilities, Long-Term
Other Liabilities Disclosure [Text Block]
Other Liabilities, Long-Term
Other liabilities, long-term, consisted of the following:
 
September 29, 2013
 
December 30, 2012
Accrued occupancy costs
$
9,288

 
$
8,493

Accrued workers’ compensation and general liability claims
935

 
1,270

Deferred compensation
487

 
812

Other
1,247

 
1,358

 
$
11,957

 
$
11,933


Accrued occupancy costs include obligations pertaining to closed restaurant locations and accruals to expense operating lease rental payments on a straight-line basis over the lease term.
The following table presents the activity in the closed-store reserve, of which $1.2 million and $1.7 million are included in long-term accrued occupancy costs above at September 29, 2013 and December 30, 2012, respectively, with the remainder in other current liabilities:
 
Nine Months Ended September 29, 2013
 
Year Ended December 30, 2012
Balance, beginning of period
$
2,432

 
$
2,246

Provisions for restaurant closures

 
1,796

Recoveries, net of additional lease charges
(158
)
 
(377
)
Payments, net
(834
)
 
(1,496
)
Other adjustments
105

 
263

Balance, end of period
$
1,545

 
$
2,432

Lease Financing Obligations
Lease Financing Obligations [Text Block]
Lease Financing Obligations
The Company entered into sale-leaseback transactions in various years that did not qualify for sale-leaseback accounting due to certain forms of continuing involvement and, as a result, the leases were classified as financing transactions in the Company’s consolidated financial statements.
Under the financing method, the assets remain on the consolidated balance sheet and the net proceeds received by the Company from these transactions are recorded as a lease financing liability. Payments under these leases are applied as payments of imputed interest and deemed principal on the underlying financing obligations.
These leases generally provide for an initial term of 20 years plus renewal options. The rent payable under such leases includes a minimum rent provision and in some cases, includes rent based on a percentage of sales. These leases also require payment of property taxes, insurance and utilities.
During the second quarter of 2012, the Company exercised its purchase options under the leases for five restaurant properties previously accounted for as lease financing obligations and purchased these properties from the lessor. As a result, the Company reduced its lease financing obligations by $6.0 million in the second quarter of 2012. Subsequently, four of the five properties have been sold in qualifying sale-leaseback transactions.
For certain of the Company’s historical sale-leaseback transactions, Carrols has guaranteed the lease payments on an unsecured basis or is the primary lessee on the leases associated with certain of the Company’s sale-leaseback transactions. Prior to the Spin-off, Accounting Standards Codification 840-40 “Sale-Leaseback Transactions” required the Company to classify these leases as lease financing transactions in the Company’s consolidated financial statements because the guarantee from a related party constituted continuing involvement and caused the sale to not qualify for sale-leaseback accounting.
At the time of the Spin-off, these sale-leaseback transactions qualified for sale-leaseback accounting (and the treatment of such related leases as operating leases) due to the cure or elimination of the provisions that previously precluded sale-leaseback accounting in the Company's financial statements. As a result of the qualification for sale-leaseback accounting during the second quarter of 2012, the Company removed the associated lease financing obligations, property and equipment, and deferred financing costs from its balance sheet, and recognized deferred gains on sale-leaseback transactions related to the qualification of $32.1 million that is being amortized as a reduction of rent expense over the individual remaining lease terms. This resulted in a decrease in lease financing obligations of $114.2 million, a decrease in assets under lease financing obligations of $80.4 million, and a decrease of $1.6 million in deferred financing fees.
The interest rates on the remaining lease financing obligations ranged from 8.6% to 8.8% at September 29, 2013. Interest expense associated with lease financing obligations was $0.1 million for the three months ended September 29, 2013 and September 30, 2012 and $0.2 million and $4.4 million, respectively, for the nine months ended September 29, 2013 and September 30, 2012.
Income Taxes
Income Tax Disclosure [Text Block]
Income Taxes
Prior to the Spin-off, the Company’s taxable income was included in the consolidated U.S. federal income tax return of Carrols and in income tax returns filed by Carrols on a consolidated basis with certain state taxing jurisdictions. Subsequent to the Spin-off, the Company is responsible for filing its own consolidated U.S. federal and state tax returns. Prior to the Spin-off, the Company determined its provision for income taxes on a separate return basis.
The Tax Matters Agreement governs the methodology for allocating responsibility for federal, state, local and foreign income and other taxes related to taxable periods prior to and subsequent to the Spin-off. Under the Tax Matters Agreement, Carrols is generally responsible for Federal income taxes related to the Company for all periods prior to the date of the Spin-off and the Company is responsible for Federal income taxes for periods after the date of the Spin-off. The Company is also responsible for all state taxes that were filed on a consolidated basis both before and after the date of Spin-off, specifically Florida and Texas, and any other states where the Company was filing or will file separate state tax returns.
The Company’s income tax provision was comprised of the following for the three and nine months ended September 29, 2013 and September 30, 2012:
 
Three Months Ended
 
Nine Months Ended
 
September 29, 2013
 
September 30, 2012
 
September 29, 2013
 
September 30, 2012
Current
$
2,539

 
$
683

 
$
7,222

 
$
4,565

Deferred
57

 
1,543

 
34

 
(1,221
)
 
$
2,596

 
$
2,226

 
$
7,256

 
$
3,344


The American Taxpayer Relief Act of 2013 (the "Act") was signed into law on January 2, 2013. The Act included a provision to retroactively restore several expired business tax provisions, including the Work Opportunity Tax Credit, as of January 1, 2012, with a new expiration date of December 31, 2013.  Because a change in tax law is accounted for in the period of enactment, and the Act was enacted after Fiesta's fiscal year-end, the retroactive effect of renewing the Work Opportunity Tax Credit was recorded as a discrete item in the first quarter of 2013.   
The provision for income taxes for the three and nine months ended September 29, 2013 was derived using an estimated effective annual income tax rate for 2013 of 36.5%, which excludes any discrete tax adjustments. The discrete tax adjustment for the retroactive effect of renewing the Work Opportunity Tax Credit decreased the provision for income taxes by $0.6 million in the nine months ended September 29, 2013. Other discrete tax adjustments decreased the provision for income taxes by $0.2 million in the three and nine months ended September 29, 2013.
The provision for income taxes for the three and nine months ended September 30, 2012 was derived using an estimated effective annual income tax rate for 2012 of 39.3%, which excludes any discrete tax adjustments. Discrete tax adjustments increased the provision for income taxes by $25 thousand for three months ended September 30, 2012 and decreased the provision for income taxes by $0.2 million in the nine months ended September 30, 2012.
Stock-based Compensation
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Stock-Based Compensation
Prior to the Spin-off, certain of the Company's employees participated in the Carrols Restaurant Group, Inc. 2006 Stock Incentive Plan, as amended (the "Carrols Plan"). In conjunction with the Spin-off, the Company established the Fiesta Restaurant Group, Inc. 2012 Stock Incentive Plan (the "Fiesta Plan") in order to be able to compensate its employees and directors by issuing stock options, stock appreciation rights, or stock awards to them under this plan. For the three and nine months ended September 29, 2013 and the period May 7, 2012 through September 30, 2012, the condensed consolidated statements of operations include expenses related to the Company's employees' and directors' participation in both the Carrols Plan and the Fiesta Plan. For the period from January 2, 2012 through the Spin-off, the condensed consolidated statement of operations includes expenses related to the Company's employees' and directors' participation in the Carrols Plan.
Effective as of the completion of the Spin-off, all holders of Carrols non-vested restricted stock (awarded under the Carrols Plan) on April 26, 2012, the record date of the Spin-off, received one share of Fiesta Restaurant Group non-vested restricted stock for every one share of Carrols non-vested restricted stock held, with terms and conditions substantially similar to the terms and conditions applicable to the Carrols non-vested restricted stock. Future stock compensation expense on all non-vested restricted Carrols and Fiesta stock awards held by the Company's employees will be recorded by the Company.
During the three months ended March 31, 2013, the Company granted in the aggregate 152,703 non-vested restricted shares under the Fiesta Plan to certain employees. These shares vest and become non-forfeitable over a four year vesting period and will be expensed according to the vesting period. The weighted average fair value at the grant date for restricted non-vested shares issued during the three months ended March 31, 2013 was $20.54. During the three months ended June 30, 2013, the Company granted 8,843 non-vested restricted shares to directors. The weighted average fair value at the grant date was $35.36. These shares vest and become non-forfeitable over a one year vesting period.
Stock-based compensation expense for the three and nine months ended September 29, 2013 was $0.7 million and $1.7 million, respectively. Stock-based compensation expense for the three and nine months ended September 30, 2012 was $0.4 million and $1.6 million, respectively, and included $0.4 million of expense in the nine months ended September 30, 2012 related to the accelerated vesting of the non-vested restricted shares of the former Chairman of the Company's board of directors upon his departure from the Company's board of directors in the first quarter of 2012. As of September 29, 2013, the total unrecognized stock-based compensation expense relating to non-vested restricted shares was approximately $6.6 million. At September 29, 2013, the remaining weighted average vesting period for non-vested restricted shares was 2.3 years.
 
 Non-vested Shares
 A summary of all non-vested restricted share activity for the nine months ended September 29, 2013 was as follows:
 
 
 
Weighted
 
 
 
Average
 
 
 
Grant Date
 
Shares
 
Price
Non-vested at December 30, 2012
766,196

 
$
12.49

Granted
161,546

 
21.35

Vested
(251,676
)
 
12.07

Forfeited
(32,000
)
 
12.98

Non-vested at September 29, 2013
644,066

 
$
14.85


The fair value of the non-vested restricted shares is based on the closing price on the date of grant.
Business Segment Information
Business Segment Information
Business Segment Information
The Company is engaged in the fast-casual restaurant industry, with two restaurant concepts (each of which is an operating segment): Pollo Tropical and Taco Cabana. Pollo Tropical is a fast-casual restaurant brand offering a wide variety of freshly prepared Caribbean inspired food, while our Taco Cabana restaurants offer a broad selection of hand-made, fresh and authentic Mexican food.
The accounting policies of each segment are the same as those described in the summary of significant accounting policies discussed in Note 1. The Company reports more than one measure of segment profit or loss to the chief operating decision maker for the purposes of allocating resources to the segments and assessing their performance. Prior to January 2013, the primary measure of segment profit or loss used to assess performance and allocate resources was Adjusted EBITDA, which is defined as earnings attributable to the applicable operating segment before interest, income taxes, depreciation and amortization, impairment and other lease charges, stock-based compensation expense, other income and expense and gains and losses on extinguishment of debt. Beginning in January 2013, the primary measures of segment profit or loss used to assess performance and allocate resources are income before taxes and Adjusted EBITDA. Although the chief operating decision maker continues to use Adjusted EBITDA as a measure of segment profitability, in accordance with Accounting Standards Codification 280, Segment Reporting, the following table includes segment income before taxes, which is the measure of segment profit or loss determined in accordance with the measurement principles that are most consistent with the principles used in measuring the corresponding amounts in the consolidated financial statements. The Company has included the presentation of income before tax for all periods presented.
The “Other” column includes corporate related items not allocated to reportable segments and consists primarily of corporate owned property and equipment and capitalized costs associated with the issuance of indebtedness.
 
Three Months Ended
 
Pollo Tropical
 
Taco Cabana
 
Other
 
Consolidated
September 29, 2013:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
65,994

 
$
74,075

 
$

 
$
140,069

Franchise revenue
 
484

 
125

 

 
609

Cost of sales
 
21,960

 
23,202

 

 
45,162

Restaurant wages and related expenses (1)
 
14,966

 
22,013

 

 
36,979

Restaurant rent expense
 
2,625

 
4,228

 

 
6,853

Other restaurant operating expenses
 
8,236

 
10,047

 

 
18,283

Advertising expense
 
1,710

 
2,561

 

 
4,271

General and administrative expense (2)
 
6,106

 
5,579

 

 
11,685

Depreciation and amortization
 
2,367

 
2,762

 

 
5,129

Pre-opening costs
 
476

 
114

 

 
590

Impairment and other lease charges
 
(37
)
 
(275
)
 

 
(312
)
Interest expense
 
1,937

 
2,520

 

 
4,457

Income before taxes
 
6,132

 
1,506

 

 
7,638

Capital expenditures
 
6,832

 
2,892

 
1,298

 
11,022

September 30, 2012:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
57,354

 
$
70,294

 
$

 
$
127,648

Franchise revenue
 
430

 
95

 

 
525

Cost of sales
 
18,998

 
22,023

 

 
41,021

Restaurant wages and related expenses (1)
 
13,254

 
20,606

 

 
33,860

Restaurant rent expense
 
2,298

 
3,926

 

 
6,224

Other restaurant operating expenses
 
6,893

 
9,636

 

 
16,529

Advertising expense
 
1,846

 
1,911

 

 
3,757

General and administrative expense (2)
 
5,550

 
5,648

 

 
11,198

Depreciation and amortization
 
2,008

 
2,473

 
5

 
4,486

Pre-opening costs
 
48

 
184

 

 
232

Impairment and other lease charges
 
94

 
(139
)
 

 
(45
)
Interest expense
 
2,274

 
2,762

 

 
5,036

Income before taxes
 
4,523

 
1,357

 
(5
)
 
5,875

Capital expenditures
 
4,149

 
7,045

 
252

 
11,446

Nine Months Ended
 
Pollo Tropical
 
Taco Cabana
 
Other
 
Consolidated
September 29, 2013:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
192,372

 
$
221,063

 
$

 
$
413,435

Franchise revenue
 
1,380

 
367

 

 
1,747

Cost of sales
 
63,803

 
69,088

 

 
132,891

Restaurant wages and related expenses (1)
 
43,466

 
64,448

 

 
107,914

Restaurant rent expense
 
7,220

 
12,479

 

 
19,699

Other restaurant operating expenses
 
22,849

 
28,937

 

 
51,786

Advertising expense
 
4,432

 
8,843

 

 
13,275

General and administrative expense (2)
 
18,573

 
17,322

 

 
35,895

Depreciation and amortization
 
6,780

 
8,337

 

 
15,117

Pre-opening costs
 
1,706

 
673

 

 
2,379

Impairment and other lease charges
 
(99
)
 
338

 

 
239

Interest expense
 
6,436

 
8,039

 

 
14,475

Income before taxes
 
19,083

 
2,983

 

 
22,066

Capital expenditures
 
21,527

 
13,985

 
3,279

 
38,791

September 30, 2012:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
171,327

 
$
210,095

 
$

 
$
381,422

Franchise revenue
 
1,481

 
245

 

 
1,726

Cost of sales
 
56,895

 
66,211

 

 
123,106

Restaurant wages and related expenses (1)
 
39,745

 
62,076

 

 
101,821

Restaurant rent expense
 
5,386

 
10,035

 

 
15,421

Other restaurant operating expenses
 
20,234

 
27,885

 

 
48,119

Advertising expense
 
3,963

 
7,960

 

 
11,923

General and administrative expense (2)
 
15,852

 
16,948

 

 
32,800

Depreciation and amortization
 
6,191

 
7,507

 
5

 
13,703

Pre-opening costs
 
735

 
321

 

 
1,056

Impairment and other lease charges
 
5,931

 
885

 

 
6,816

Interest expense
 
8,249

 
11,085

 

 
19,334

Income (loss) before taxes
 
9,626

 
(572
)
 
(5
)
 
9,049

Capital expenditures
 
13,409

 
15,034

 
427

 
28,870

Identifiable Assets:
 
 
 
 
 
 
 
 
September 29, 2013:
 
$
139,505

 
$
162,393

 
$
11,364

 
$
313,262

December 30, 2012
 
128,593

 
167,348

 
7,788

 
303,729



(1) Includes stock-based compensation expense of $1 and $2 for the three and nine months ended September 29, 2013, respectively, and $1 and $9 for the three and nine months ended September 30, 2012, respectively.
(2) Includes stock-based compensation expense of $657 and $1,677 for the three and nine months ended September 29, 2013, respectively, and $379 and $1,594 for the three and nine months ended September 30, 2012, respectively.
Net Income per Share
Earnings Per Share [Text Block]
Net Income per Share
 We compute basic net income per share by dividing net income applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares and are thus considered participating securities. The impact of the participating securities is included in the computation of basic net income per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings attributable to common shares and participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Net income per common share was computed by dividing undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and non-vested restricted shares based on the weighted average shares outstanding during the period.
For 2012, in determining the weighted average number of shares outstanding for basic net income per share, the 23.2 million shares distributed from Carrols on May 7, 2012 were assumed to be outstanding for the period from January 2, 2012 through May 7, 2012.
The computation of basic and diluted net income per share for the three and nine months ended September 29, 2013 and September 30, 2012 is as follows:
 
  
Three Months Ended
 
Nine Months Ended
 
  
September 29, 2013
 
September 30, 2012
 
September 29, 2013
 
September 30, 2012
Basic and diluted net income per share:
  
 
 
 
 
 
 
 
Net income
  
$
5,042

 
$
3,649

 
$
14,810

 
$
5,705

Less: income allocated to participating securities
  
(140
)
 
(82
)
 
(451
)
 
(96
)
Net income available to common stockholders
  
$
4,902

 
$
3,567

 
$
14,359

 
$
5,609

Basic and diluted weighted average common shares outstanding
  
22,986,615

 
22,747,044

 
22,921,233

 
22,937,270

Basic and diluted net income per share
  
$
0.21

 
$
0.16

 
$
0.63

 
$
0.25

Commitments and Contingencies
Commitments Disclosure [Text Block]
Commitments and Contingencies
The Company is a party to various litigation matters incidental to the conduct of business. The Company does not believe that the outcome of any of these matters will have a material effect on its consolidated financial statements.
Basis of Presentation Accounting Policies (Policies)
Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. The condensed consolidated financial statements have been prepared as if the Company was in existence for all periods presented.
Through the date of the Spin-off, these unaudited condensed consolidated financial statements have been prepared on a stand-alone basis from the separate records maintained by Carrols and may not necessarily be indicative of the results of operations or cash flows that would have resulted had allocations and other related-party transactions been consummated with unrelated parties or had the Company been an independent, publicly traded company during all of the periods presented. The unaudited interim condensed consolidated financial statements reflect the historical financial position, results of operations and cash flows of the Company as it has historically operated, in conformity with U.S. Generally Accepted Accounting Principles ("GAAP"). All intercompany transactions have been eliminated in consolidation.
In connection with the Spin-off, the board of directors of the Company authorized a 23,161.8 for one split of its outstanding common stock that was effective on April 19, 2012. Accordingly, all references to share and per share amounts related to common stock included in the unaudited condensed consolidated financial statements and accompanying notes have been adjusted to reflect the stock split and change in the number of authorized shares. The stock split has been retroactively applied to the Company’s financial statements.
Fiscal Year. The Company uses a 52-53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended December 30, 2012 contained 52 weeks. The three and nine months ended September 29, 2013 and September 30, 2012 each contained thirteen and thirty-nine weeks, respectively.
Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and nine months ended September 29, 2013 and September 30, 2012 have been prepared without an audit pursuant to the rules and regulations of the Securities Exchange Commission and do not include certain information and footnotes required by GAAP for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three and nine months ended September 29, 2013 and September 30, 2012 are not necessarily indicative of the results to be expected for the full year.
These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 30, 2012 included in the Company's 2012 Annual Report on Form 10-K. The December 30, 2012 balance sheet data is derived from those audited financial statements.
Allocations. Through the date of the Spin-off, Carrols provided administrative support to the Company for executive management, information systems and certain accounting, legal and other administrative functions. The cost of these services were allocated to the Company based primarily on a pro-rata share of either the Company’s revenues, number of restaurants or number of employees. The allocations may not reflect the expenses the Company would have incurred as an independent, publicly traded company for the periods presented. Following the Spin-off, certain of these functions continue to be provided by Carrols under the TSA, and the Company is performing certain functions using its own resources or purchased services from third parties. Refer to Note 4—Former Related Party Transactions for further discussion related to agreements entered into effective as of the Spin-off.
Management believes that its allocations are reasonable and based on a systematic and rational method; however, they are not necessarily indicative of the actual financial results of the Company, including such expenses that would have been incurred by the Company had it been operating as a separate, stand-alone entity for the periods presented. As a stand-alone entity, the Company expects to incur expenses that may not be comparable in future periods to what is presented for the historical periods presented in the condensed consolidated financial statements. Consequently, the financial information herein may not reflect the financial position, results of operations and cash flows of the Company in the future or if the Company had been an independent stand-alone entity during all periods presented. In our opinion, the condensed consolidated financial statements include all adjustments necessary for a fair presentation of its results of operations.
Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value:
Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments.
Senior Secured Second Lien Notes. The fair value of outstanding senior secured second lien notes, which was approximately $212.5 million at September 29, 2013, is based on recent trading values, which are considered Level 1. The senior secured second lien notes are recorded in Long-term debt, net of current portion and had a carrying value of $200.0 million at September 29, 2013.
See Note 2 for discussion of the fair value measurement of non-financial assets.
Use of Estimates. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: allocations of Carrols' general and administrative expenses and interest expense on amounts due to Carrols prior to the Spin-off, accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill and long-lived assets and lease accounting matters. Actual results could differ from those estimates.
Reclassifications. Certain amounts have been reclassified from Restaurant rent expense, Advertising expense and Other restaurant operating expenses to Pre-opening costs in order to conform to the current year presentation.
Impairment of Long-Lived Assets and Other Lease Charges Impairment Accounting Policy (Policies)
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]
The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries.
Lease Financing Obligations (Policies)
Lease Financing Obligations [Policy Text Block]
The Company entered into sale-leaseback transactions in various years that did not qualify for sale-leaseback accounting due to certain forms of continuing involvement and, as a result, the leases were classified as financing transactions in the Company’s consolidated financial statements.
Under the financing method, the assets remain on the consolidated balance sheet and the net proceeds received by the Company from these transactions are recorded as a lease financing liability. Payments under these leases are applied as payments of imputed interest and deemed principal on the underlying financing obligations.
These leases generally provide for an initial term of 20 years plus renewal options. The rent payable under such leases includes a minimum rent provision and in some cases, includes rent based on a percentage of sales. These leases also require payment of property taxes, insurance and utilities
Impairment of Long-Lived Assets and Other Lease Charges Impairment by segment (Tables)
Impairment of long lived assets and other lease charge [Table Text Block]
Impairment of long-lived assets for the Company’s segments and other lease charges recorded were as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 29, 2013
 
September 30, 2012
 
September 29, 2013
 
September 30, 2012
Pollo Tropical
$
(37
)
 
$
94

 
$
(99
)
 
$
5,931

Taco Cabana
(275
)
 
(139
)
 
338

 
885

 
$
(312
)
 
$
(45
)
 
$
239

 
$
6,816

Other Liabilities, Long-Term Other Liabilities (Tables)
Other liabilities, long-term, consisted of the following:
 
September 29, 2013
 
December 30, 2012
Accrued occupancy costs
$
9,288

 
$
8,493

Accrued workers’ compensation and general liability claims
935

 
1,270

Deferred compensation
487

 
812

Other
1,247

 
1,358

 
$
11,957

 
$
11,933

The following table presents the activity in the closed-store reserve, of which $1.2 million and $1.7 million are included in long-term accrued occupancy costs above at September 29, 2013 and December 30, 2012, respectively, with the remainder in other current liabilities:
 
Nine Months Ended September 29, 2013
 
Year Ended December 30, 2012
Balance, beginning of period
$
2,432

 
$
2,246

Provisions for restaurant closures

 
1,796

Recoveries, net of additional lease charges
(158
)
 
(377
)
Payments, net
(834
)
 
(1,496
)
Other adjustments
105

 
263

Balance, end of period
$
1,545

 
$
2,432

Income Taxes (Tables)
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
The Company’s income tax provision was comprised of the following for the three and nine months ended September 29, 2013 and September 30, 2012:
 
Three Months Ended
 
Nine Months Ended
 
September 29, 2013
 
September 30, 2012
 
September 29, 2013
 
September 30, 2012
Current
$
2,539

 
$
683

 
$
7,222

 
$
4,565

Deferred
57

 
1,543

 
34

 
(1,221
)
 
$
2,596

 
$
2,226

 
$
7,256

 
$
3,344

Stock-based Compensation Stock-based Compensation (Tables)
Schedule of Nonvested Share Activity [Table Text Block]
Non-vested Shares
 A summary of all non-vested restricted share activity for the nine months ended September 29, 2013 was as follows:
 
 
 
Weighted
 
 
 
Average
 
 
 
Grant Date
 
Shares
 
Price
Non-vested at December 30, 2012
766,196

 
$
12.49

Granted
161,546

 
21.35

Vested
(251,676
)
 
12.07

Forfeited
(32,000
)
 
12.98

Non-vested at September 29, 2013
644,066

 
$
14.85


The fair value of the non-vested restricted shares is based on the closing price on the date of grant.

Business Segment Information Business Segment (Tables)
Schedule of Segment Reporting Information, by Segment [Table Text Block]
The “Other” column includes corporate related items not allocated to reportable segments and consists primarily of corporate owned property and equipment and capitalized costs associated with the issuance of indebtedness.
 
Three Months Ended
 
Pollo Tropical
 
Taco Cabana
 
Other
 
Consolidated
September 29, 2013:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
65,994

 
$
74,075

 
$

 
$
140,069

Franchise revenue
 
484

 
125

 

 
609

Cost of sales
 
21,960

 
23,202

 

 
45,162

Restaurant wages and related expenses (1)
 
14,966

 
22,013

 

 
36,979

Restaurant rent expense
 
2,625

 
4,228

 

 
6,853

Other restaurant operating expenses
 
8,236

 
10,047

 

 
18,283

Advertising expense
 
1,710

 
2,561

 

 
4,271

General and administrative expense (2)
 
6,106

 
5,579

 

 
11,685

Depreciation and amortization
 
2,367

 
2,762

 

 
5,129

Pre-opening costs
 
476

 
114

 

 
590

Impairment and other lease charges
 
(37
)
 
(275
)
 

 
(312
)
Interest expense
 
1,937

 
2,520

 

 
4,457

Income before taxes
 
6,132

 
1,506

 

 
7,638

Capital expenditures
 
6,832

 
2,892

 
1,298

 
11,022

September 30, 2012:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
57,354

 
$
70,294

 
$

 
$
127,648

Franchise revenue
 
430

 
95

 

 
525

Cost of sales
 
18,998

 
22,023

 

 
41,021

Restaurant wages and related expenses (1)
 
13,254

 
20,606

 

 
33,860

Restaurant rent expense
 
2,298

 
3,926

 

 
6,224

Other restaurant operating expenses
 
6,893

 
9,636

 

 
16,529

Advertising expense
 
1,846

 
1,911

 

 
3,757

General and administrative expense (2)
 
5,550

 
5,648

 

 
11,198

Depreciation and amortization
 
2,008

 
2,473

 
5

 
4,486

Pre-opening costs
 
48

 
184

 

 
232

Impairment and other lease charges
 
94

 
(139
)
 

 
(45
)
Interest expense
 
2,274

 
2,762

 

 
5,036

Income before taxes
 
4,523

 
1,357

 
(5
)
 
5,875

Capital expenditures
 
4,149

 
7,045

 
252

 
11,446

Nine Months Ended
 
Pollo Tropical
 
Taco Cabana
 
Other
 
Consolidated
September 29, 2013:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
192,372

 
$
221,063

 
$

 
$
413,435

Franchise revenue
 
1,380

 
367

 

 
1,747

Cost of sales
 
63,803

 
69,088

 

 
132,891

Restaurant wages and related expenses (1)
 
43,466

 
64,448

 

 
107,914

Restaurant rent expense
 
7,220

 
12,479

 

 
19,699

Other restaurant operating expenses
 
22,849

 
28,937

 

 
51,786

Advertising expense
 
4,432

 
8,843

 

 
13,275

General and administrative expense (2)
 
18,573

 
17,322

 

 
35,895

Depreciation and amortization
 
6,780

 
8,337

 

 
15,117

Pre-opening costs
 
1,706

 
673

 

 
2,379

Impairment and other lease charges
 
(99
)
 
338

 

 
239

Interest expense
 
6,436

 
8,039

 

 
14,475

Income before taxes
 
19,083

 
2,983

 

 
22,066

Capital expenditures
 
21,527

 
13,985

 
3,279

 
38,791

September 30, 2012:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
171,327

 
$
210,095

 
$

 
$
381,422

Franchise revenue
 
1,481

 
245

 

 
1,726

Cost of sales
 
56,895

 
66,211

 

 
123,106

Restaurant wages and related expenses (1)
 
39,745

 
62,076

 

 
101,821

Restaurant rent expense
 
5,386

 
10,035

 

 
15,421

Other restaurant operating expenses
 
20,234

 
27,885

 

 
48,119

Advertising expense
 
3,963

 
7,960

 

 
11,923

General and administrative expense (2)
 
15,852

 
16,948

 

 
32,800

Depreciation and amortization
 
6,191

 
7,507

 
5

 
13,703

Pre-opening costs
 
735

 
321

 

 
1,056

Impairment and other lease charges
 
5,931

 
885

 

 
6,816

Interest expense
 
8,249

 
11,085

 

 
19,334

Income (loss) before taxes
 
9,626

 
(572
)
 
(5
)
 
9,049

Capital expenditures
 
13,409

 
15,034

 
427

 
28,870

Identifiable Assets:
 
 
 
 
 
 
 
 
September 29, 2013:
 
$
139,505

 
$
162,393

 
$
11,364

 
$
313,262

December 30, 2012
 
128,593

 
167,348

 
7,788

 
303,729



(1) Includes stock-based compensation expense of $1 and $2 for the three and nine months ended September 29, 2013, respectively, and $1 and $9 for the three and nine months ended September 30, 2012, respectively.
(2) Includes stock-based compensation expense of $657 and $1,677 for the three and nine months ended September 29, 2013, respectively, and $379 and $1,594 for the three and nine months ended September 30, 2012, respectively.

Net Income per Share (Tables)
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block]
The computation of basic and diluted net income per share for the three and nine months ended September 29, 2013 and September 30, 2012 is as follows:
 
  
Three Months Ended
 
Nine Months Ended
 
  
September 29, 2013
 
September 30, 2012
 
September 29, 2013
 
September 30, 2012
Basic and diluted net income per share:
  
 
 
 
 
 
 
 
Net income
  
$
5,042

 
$
3,649

 
$
14,810

 
$
5,705

Less: income allocated to participating securities
  
(140
)
 
(82
)
 
(451
)
 
(96
)
Net income available to common stockholders
  
$
4,902

 
$
3,567

 
$
14,359

 
$
5,609

Basic and diluted weighted average common shares outstanding
  
22,986,615

 
22,747,044

 
22,921,233

 
22,937,270

Basic and diluted net income per share
  
$
0.21

 
$
0.16

 
$
0.63

 
$
0.25

Basis of Presentation Fair Value Disclosures (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Fiesta Restaurant Group 8.875% Senior Secured Second Lien Notes, Carrying Value
$ 200.0 
Fair Value, Inputs, Level 1 [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Fiesta Restaurant Group 8.875% Senior Secured Second Lien Notes, Fair Value Disclosure
$ 212.5 
Basis of Presentation Basis of Presentation Narrative (Details)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 29, 2013
Sep. 30, 2012
Sep. 29, 2013
Sep. 30, 2012
Dec. 30, 2012
Entity Information [Line Items]
 
 
 
 
 
Weeks In Fiscal Period
13 
13 
39 
39 
52 
Taco Cabana [Member]
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Entity Operated Units [Member] |
Pollo Tropical [Member]
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
100 
 
100 
 
 
Entity Operated Units [Member] |
Pollo Tropical [Member] |
FLORIDA
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
94 
 
94 
 
 
Entity Operated Units [Member] |
Pollo Tropical [Member] |
GEORGIA
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Entity Operated Units [Member] |
Pollo Tropical [Member] |
TENNESSEE
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Entity Operated Units [Member] |
Taco Cabana [Member]
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
164 
 
164 
 
 
Entity Operated Units [Member] |
Taco Cabana [Member] |
TEXAS
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
161 
 
161 
 
 
Entity Operated Units [Member] |
Taco Cabana [Member] |
OKLAHOMA
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Pollo Tropical [Member]
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
38 
 
38 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
FLORIDA
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
PUERTO RICO
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
18 
 
18 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
ECUADOR
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
HONDURAS
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
BAHAMAS
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
TRINIDAD AND TOBAGO
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
VENEZUELA
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
COSTA RICA
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
PANAMA
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
DOMINICAN REPUBLIC
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Pollo Tropical [Member] |
INDIA
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Taco Cabana [Member]
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Taco Cabana [Member] |
GEORGIA
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Taco Cabana [Member] |
NEW MEXICO
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Franchised Units [Member] |
Taco Cabana [Member] |
TEXAS
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Number of Restaurants
 
 
 
Maximum [Member]
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Weeks In Fiscal Period
 
 
 
 
53 
Stock Split, Conversion Ratio
 
23,161.8 
 
 
 
Minimum [Member]
 
 
 
 
 
Entity Information [Line Items]
 
 
 
 
 
Weeks In Fiscal Period
 
 
 
 
52 
Stock Split, Conversion Ratio
1.0 
 
 
 
 
Impairment of Long-Lived Assets and Other Lease Charges Impairment Table (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 29, 2013
Sep. 30, 2012
Sep. 29, 2013
Sep. 30, 2012
Impairment and Other Lease Charges [Line Items]