Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.24.3
Stock-based Compensation
 9 Months Ended
Sep. 26, 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:
Thirty-nine Weeks Ended
in thousands September 26, 2024 September 28, 2023
General and administrative $ 22,338  $ 18,927 
Selling and store operating 3,280  1,409 
Total stock-based compensation expense $ 25,618  $ 20,336 
Stock Options
The table below summarizes stock option activity for the thirty-nine weeks ended September 26, 2024:
Options Weighted Average Exercise Price
Outstanding at December 29, 2023
 1,607,341  $ 28.51 
Exercised (331,778) $ 18.72 
Forfeited or expired (2,518) $ 68.82 
Outstanding at September 26, 2024
 1,273,045  $ 30.97 
Vested and exercisable at September 26, 2024
 1,258,196  $ 30.21 
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 thirty-nine weeks ended September 26, 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 two to four years from the grant date for employees and executive officers.
The following table summarizes restricted stock unit activity during the thirty-nine weeks ended September 26, 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 252,692  50,855  —  303,547 
Vested (214,620) —  —  (214,620)
Forfeited (38,539) (13,838) (4,204) (56,581)
Unvested at September 26, 2024 607,673  225,560  54,650  887,883 
The aggregate fair value for all restricted stock units granted during the thirty-nine weeks ended September 26, 2024 was $33.9 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 thirty-nine weeks ended September 26, 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 September 26, 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.