Property and Equipment

12 Months Ended

Dec. 27, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 3 – Property and Equipment

Property and equipment consist of the following:

	December 27, 2024		December 29, 2023
Machinery	$	123,509	$	113,529
Leasehold improvements	48,487		46,129
Computer software, hardware, and equipment	8,707		10,316
Office furniture, fixtures, and equipment	1,593		1,320
Vehicles	395		396
Construction-in-process	12,612		4,216
	195,303		175,906
Less accumulated depreciation	(100,436)		(83,151)
Total property and equipment, net	$	94,867	$	92,755

Depreciation expense for 2024, 2023, and 2022 was $21.0 million, $18.8 million, and $17.2 million, respectively.

Cloud Computing Implementation Costs

The Company incurs costs to implement cloud computing arrangements that are service contracts. In accordance with ASC 350-40, Goodwill and other, Internal-Use Software, for cloud computing arrangements that meet the definition of a service contract, we capitalize qualifying implementation costs incurred during the application development stage which are recorded in other non-current assets. To-date, these costs are those incurred to implement a new company-wide ERP system. The balance of capitalized cloud computing implementation costs, net of accumulated amortization, was $11.2 million and $8.1 million as of December 27, 2024 and December 29, 2023, respectively, and is included in other non-current assets on our consolidated balance sheets. The related amortization expense was $1.2 million, $1.1 million, and $0.9 million during 2024, 2023, and 2022, respectively, and is included in selling, general, and administrative expense on our consolidated statements of operations.