Red Robin Gourmet Burgers, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock Incentive Plans

Stock Incentive Plans

6 Months Ended

Jul. 12, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Under the Company’s Second Amended and Restated 2007 Performance Incentive Plan (the “2007 Stock Plan”), various stock options and stock awards may be granted to employees of the Company and any of the Company’s subsidiaries, directors of the Company, and certain consultants and advisors to the Company or any of its subsidiaries.

Stock options are granted with an exercise price equal to the fair market value of shares of the Company’s common stock at the grant date. We account for stock-based compensation in accordance with fair value recognition provisions, calculated using the Black-Scholes option pricing model (“the pricing model”). The weighted-average fair value of non-qualified stock options and the related assumptions used in the pricing model were as follows:



	Twelve Weeks Ended						Twenty-eight Weeks Ended
	July 12, 2015			July 13, 2014			July 12, 2015			July 13, 2014
Risk-free interest rate	1.6		%	1.5		%	1.4		%	1.7		%
Expected years until exercise	4.8			5.0			4.8			5.8
Expected stock volatility	39.4		%	46.1		%	40.6		%	44.8		%
Dividend yield	—		%	—		%	—		%	—		%
Weighted average Black-Scholes fair value per share at date of grant	$	30.86		$	30.05		$	29.71		$	31.43

The following table presents a summary of the Company’s stock-based compensation activity for the twenty-eight weeks ended July 12, 2015 (in thousands):



	Stock Options		Restricted Stock Units
Outstanding, December 28, 2014	462		101
Granted	72		32
Forfeited/expired	(38	)	(11	)
Exercised/vested	(89	)	(41	)
Outstanding, July 12, 2015	407		81

We recognized expense from stock-based compensation for the twelve and twenty-eight weeks ended July 12, 2015 and July 13, 2014 as follows (in thousands):



	Twelve Weeks Ended				Twenty-eight Weeks Ended
	July 12, 2015		July 13, 2014		July 12, 2015		July 13, 2014
Restaurant related	$	27	$	18	$	62	$	49
Selling, general, and administrative related	1,376		1,003		2,787		1,981
Total stock-based compensation	$	1,403	$	1,021	$	2,849	$	2,030