The single & is a bitwise 'and' operator (as opposed to &&, which acts on booleans).
So when you use & on two integers, the result is the logical 'and' of their binary representations.
This code works because any power of 2 will be a 1 followed by some number of 0s in binary (eg, 4 is 100, 8 is 1000, etc). Any power of 2, less one, will just be all 1s (eg. 3 is 11, 7 is 111).
So, if you take a power of 2, and bitwise and it with itself minus 1, you should just have 0. However, anything other than a power of 2 would give a non-zero answer.
Example:
1000 = 8
0111 = 7 (8-1), and '&'ing these gives
0000 = 0
However, if you had something like 6 (which isnt a power of 2):
110 = 6
101 = 5 (6-1), and '&'ing these gives
100 = 4 (which isnt equal to 0, so the code would return false).
I hope that makes it clear!