INCOME TAXES (Tables)

12 Months Ended

Dec. 27, 2023

INCOME TAXES

Schedule of Provision for Income Taxes

The provision for income taxes is based on the following components (in thousands):

	December 27,		December 28,		December 29,
For the Years Ended	2023		2022		2021
Current income taxes:
Federal	$	6,572	$	2,366	$	7,163
State		1,846		1,112		2,158
Total current		8,418		3,478		9,321
Deferred income taxes:
Federal		(29)		2,958		93
State		935		1,642		918
Total deferred		906		4,600		1,011
Tax provision for income taxes	$	9,324	$	8,078	$	10,332

Schedule of Effective Income Tax rate

The provision for income taxes differs from the amount computed by applying the federal income tax rate of 21.0% for fiscal 2023, 2022 and 2021 as follows:

	December 27,		December 28,		December 29,
For the Years Ended	2023		2022		2021
Statutory federal income tax rate applied to earnings before income taxes and extraordinary items	21.0	%	21.0	%	21.0	%
State income tax expense (net of federal benefit)	6.4		7.7		5.9
Change in valuation allowance	(19.3)		—		0.1
State credit expiration	19.1		—		—
TRA expense (income)	0.1		(0.3)		—
162(m)	0.6		0.5		0.8
WOTC Credit	(0.7)		(0.9)		(0.5)
Stock option exercises	0.1		0.3		(1.4)
Deferred tax liability true up	(1.1)		—		—
Other	0.5		(0.3)		0.3
Total	26.7	%	28.0	%	26.2	%

Schedule of Deferred Tax Assets and Liabilities

The Company’s deferred tax assets and liabilities as of December 27, 2023 and December 28, 2022 are summarized below.

	December 27,		December 28,
	2023		2022
Deferred assets:
Capital leases	$	62	$	55
Accrued vacation		470		508
Accrued workers’ compensation		2,352		2,201
Enterprise zone and other credits		—		7,258
Net operating losses		5		5
Fixed assets		2,705		2,392
ROU liabilities		50,735		50,112
Other		5,560		4,397
Total deferred tax assets		61,889		66,928
Valuation allowance		—		(6,727)
Net deferred tax assets		61,889		60,201
Deferred liabilities:
Goodwill		(5,938)		(6,420)
Trademark		(16,740)		(16,721)
Prepaid expense		(1,128)		(595)
ROU assets		(45,445)		(44,737)
Fixed assets		(1,470)		—
Other		(46)		267
Deferred tax liabilities		(70,767)		(68,206)
Net deferred tax liability	$	(8,878)	$	(8,005)

Schedule of Deferred Tax Assets Classification

The net deferred tax asset/(liability) amounts above as of December 27, 2023 and December 28, 2022 have been classified in the accompanying consolidated balance sheets as noncurrent assets/(liabilities) and are as follows (in thousands):

	December 27,		December 28,
	2023		2022
Noncurrent:
(Liabilities) assets - state	$	(416)	$	512
Liabilities - federal		(8,462)		(8,517)
Net deferred tax liability	$	(8,878)	$	(8,005)