Quarterly report [Sections 13 or 15(d)]

Stock-based Compensation

v3.25.3
Stock-based Compensation
 9 Months Ended
Sep. 25, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
In accordance with ASC 718, Compensation – Stock Compensation, the Company measures compensation cost for all stock-based awards at fair value on the date of grant and recognizes compensation expense, net of forfeitures, using the straight-line method over the requisite service period of awards expected to vest, which for each of the awards is the service vesting period. Stock-based compensation expense within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the thirty-nine weeks ended September 25, 2025 and September 26, 2024 was $22.4 million and $25.6 million, respectively.
Stock Options
The table below summarizes stock option activity for the thirty-nine weeks ended September 25, 2025:
Options Weighted Average Exercise Price
Outstanding at December 27, 2024
 1,147,400  $ 30.93 
Exercised (132,665) $ 23.07 
Forfeited or expired (2,725) $ 95.09 
Outstanding at September 25, 2025
 1,012,010  $ 31.79 
Vested and exercisable at September 25, 2025
 1,012,010  $ 31.79 
Restricted Stock Units
The Company periodically grants restricted stock units (“RSUs”), each of which represents an unfunded, unsecured right to receive a share of the Company’s Class A common stock upon vesting. During the thirty-nine weeks ended September 25, 2025, the Company granted RSUs to certain employees, executive officers, and non-employee directors comprised of service-based RSUs and performance-based RSUs. Service-based RSUs vest based on the grantee’s continued service through the vesting date. The performance-based RSUs cliff vest based on (i) the Company’s achievement of predetermined financial metrics at the end of a three-year performance period and (ii) the grantee’s continued service through the vesting date. Depending on the extent to which the relevant performance goals are achieved, the number of common shares earned upon vesting may range from 0% to 200% of the award granted. The Company assesses the probability of achieving all performance goals on a quarterly basis. The service period for RSUs granted during the period varies by grantee and is one year from the grant date for non-employee directors and two to three years from the grant date for employees and executive officers. The grant-date fair value of service-based RSUs and performance-based RSUs is based on the closing market price of the Company’s Class A common stock on the date of grant.
The following table summarizes RSU activity during the thirty-nine weeks ended September 25, 2025:
Restricted Stock Units
Service-based Performance-based Total shareholder return
Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value
Unvested at December 27, 2024 589,061  $ 101.03  224,168  $ 96.09  54,650  $ 104.67 
Granted 351,620  $ 94.74  101,483  $ 91.73  —  $ — 
Vested (268,746) $ 99.93  —  $ —  —  $ — 
Forfeited (64,884) $ 98.63  (56,113) $ 94.50  (16,815) $ 104.67 
Unvested at September 25, 2025 607,051  $ 98.14  269,538  $ 94.78  37,835  $ 104.67 
Restricted Stock Awards
The following table summarizes restricted stock award activity during the thirty-nine weeks ended September 25, 2025:
Service-based Restricted Stock Awards
Shares Weighted Average Grant Date Fair Value
Unvested at December 27, 2024 3,499  $ 95.68 
Vested (3,499) $ 95.68 
Unvested at September 25, 2025 —  $ —