Annual report [Section 13 and 15(d), not S-K Item 405]

Derivatives and Risk Management

v3.25.4
Derivatives and Risk Management
 12 Months Ended
Dec. 25, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Risk Management Derivatives and Risk Management
Interest Rate Risk
The Company’s exposure to market risk from adverse changes in interest rates is primarily associated with its long-term debt obligations, which carry variable interest rates. Market risk associated with the Company’s variable interest rate long-term debt relates to the potential negative impact to future earnings and cash flows from an increase in interest rates.
In an effort to manage exposure to the risk associated with variable interest rate long-term debt, the Company periodically enters into interest rate derivative contracts. These interest rate derivative contracts are used to convert the interest rate exposure on a portion of the Company’s debt portfolio from a floating rate to a capped rate and are designated as cash flow hedges.
Cash Flow Hedge
As of December 25, 2025 and December 26, 2024, the Company’s outstanding interest rate cap contract was designated as a cash flow hedge. The contract has a notional value of $150.0 million and effectively caps Secured Overnight Financing Rate (“SOFR”) based interest payments on a portion of the Company’s Term Loan Facility at 5.50% beginning in May 2024 and will continue until the interest rate cap contract expires in April 2026. The table below presents the location and fair value of the interest rate cap on the Consolidated Balance Sheets as of December 25, 2025 and December 26, 2024:
in thousands
Balance Sheet Location
 December 25,
2025		 December 26,
2024
Interest rate cap
Prepaid expenses and other current assets
 $ —  $ 11 
Interest rate cap
Other assets
 $ —  $ 42 
Effects of the Company’s designated hedge contracts are as follows:
Effective Portion Reclassified
From AOCI to Earnings		 Effective Portion Recognized in
Other Comprehensive Income
Fiscal Year Ended Fiscal Year Ended
in thousands
 December 25,
2025		 December 26,
2024		 December 28,
2023		 December 25,
2025		 December 26,
2024		 December 28,
2023
Interest rate caps (cash flow hedges) $ —  $ 1,877  $ 5,069  $ 62  $ 415  $ 2,154 
Credit Risk
The counterparty to the Company’s derivative contract is a financial institution with an investment grade credit rating. The Company periodically monitors the credit risk of its counterparty. The impact of credit risk, as well as the ability of each party to fulfill its obligation under the derivative financial instrument, is considered in determining the fair value of the contract. Credit risk has not had a significant effect on the fair value of the Company’s derivative contract. The Company’s derivative financial instrument does not have any credit risk-related contingent features or collateral requirements.