Income Taxes

6 Months Ended

Jul. 13, 2024

Income Tax Disclosure [Abstract]

Income Taxes

19. INCOME TAXES

The company’s effective tax rate for the twelve weeks ended July 13, 2024 was 25.9% compared to 24.4% for the twelve weeks ended July 15, 2023. The increase in the rate was primarily due to net unfavorable discrete items related to state income taxes during the current year quarter. During the twelve weeks ended July 13, 2024 and July 15, 2023, the primary differences in the effective rate and the statutory rate were state income taxes.

The company’s effective tax rate for the twenty-eight weeks ended July 13, 2024 was 24.9% compared to 22.9% for the twenty-eight weeks ended July 15, 2023. The increase in the rate was primarily due to year-over-year differences in state income taxes and stock-based compensation recorded discretely. During the twenty-eight weeks ended July 13, 2024 and July 15, 2023, the primary differences in the effective rate and the statutory rate were state income taxes.

During the twenty-eight weeks ended July 13, 2024, the company’s activity with respect to its uncertain tax positions and related interest expense accrual was not significant to the Condensed Consolidated Financial Statements. As of July 13, 2024, we do not anticipate significant changes to the amount of gross unrecognized tax benefits over the next twelve months.