Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

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Stock-based Compensation
 3 Months Ended
Mar. 28, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
In accordance with ASC 718, 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.
The table below presents components of stock-based compensation expense within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income:
Thirteen Weeks Ended
in thousands March 28, 2024 March 30, 2023
General and administrative $ 6,273  $ 6,367 
Selling and store operating 959  374 
Total stock-based compensation expense $ 7,232  $ 6,741 
Stock Options
The table below summarizes stock option activity for the thirteen weeks ended March 28, 2024.
Options Weighted Average Exercise Price
Outstanding at December 29, 2023
 1,607,341  $ 28.51 
Exercised (170,713) $ 22.58 
Forfeited or expired (1,132) $ 92.56 
Outstanding at March 28, 2024
 1,435,496  $ 29.16 
Vested and exercisable at March 28, 2024
 1,419,169  $ 28.43 
Restricted Stock Units
The Company periodically grants restricted stock units (“RSUs”) that represent an unfunded, unsecured right to receive a share of the Company’s Class A common stock upon vesting. During the thirteen weeks ended March 28, 2024, 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 periods for RSUs granted during the period varies by grantee and is one year from the grant date for non-employee directors and ranges between three to four years from the grant date for employees and executive officers.
The following table summarizes restricted stock unit activity during the thirteen weeks ended March 28, 2024:
Restricted Stock Units
Service-based Performance-based Total shareholder return Total Restricted Stock Units
Unvested at December 29, 2023 608,140  188,543  58,854  855,537 
Granted 236,678  50,855  —  287,533 
Vested (183,689) —  —  (183,689)
Forfeited (17,655) (13,001) (4,204) (34,860)
Unvested at March 28, 2024 643,474  226,397  54,650  924,521 
The aggregate fair value for all restricted stock units granted during the thirteen weeks ended March 28, 2024 was $33.3 million. 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.
Restricted Stock Awards
The following table summarizes restricted stock award activity during the thirteen weeks ended March 28, 2024:
Restricted Stock Awards
Service-based Performance-based (1) Total shareholder return (1) Total Restricted Stock Awards
Unvested at December 29, 2023 34,783  47,662  31,056  113,501 
Vested (30,680) (47,662) (31,056) (109,398)
Forfeited (395) —  —  (395)
Unvested at March 28, 2024 3,708  —  —  3,708 
(1) The performance-based and total shareholder return restricted stock awards that vested during the period were issued at 100% of target based on achievement of the predetermined performance and total shareholder return criteria as specified in the underlying grant agreements.