Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

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Stock-based Compensation
 6 Months Ended
Jun. 27, 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:
Twenty-six Weeks Ended
in thousands June 27, 2024 June 29, 2023
General and administrative $ 13,458  $ 14,212 
Selling and store operating 2,129  835 
Total stock-based compensation expense $ 15,587  $ 15,047 
Stock Options
The table below summarizes stock option activity for the twenty-six weeks ended June 27, 2024:
Options Weighted Average Exercise Price
Outstanding at December 29, 2023
 1,607,341  $ 28.51 
Exercised (283,357) $ 19.21 
Forfeited or expired (2,041) $ 71.17 
Outstanding at June 27, 2024
 1,321,943  $ 30.43 
Vested and exercisable at June 27, 2024
 1,306,746  $ 29.68 
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 twenty-six weeks ended June 27, 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 period 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 twenty-six weeks ended June 27, 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 240,892  50,855  —  291,747 
Vested (196,636) —  —  (196,636)
Forfeited (24,403) (13,001) (4,204) (41,608)
Unvested at June 27, 2024 627,993  226,397  54,650  909,040 
The aggregate fair value for all restricted stock units granted during the twenty-six weeks ended June 27, 2024 was $33.5 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 twenty-six weeks ended June 27, 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 June 27, 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.