Stock-based compensation includes stock options, restricted stock units, performance stock unit awards, and stock appreciation rights, which are awarded to employees, directors, and consultants of the Company. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award based on its grant date fair value. Stock-based compensation expense is included within General and administrative expense, which is the same financial statement caption where the recipient’s other compensation is reported.

For the fifty-two weeks ended August 30, 2025, and the fifty-three weeks ended August 31, 2024, and fifty-two weeks ended August 26, 2023, the Company recorded stock-based compensation expense of $15.3 million, $18.4 million, and $14.5 million, respectively.

In July 2017, the Company’s stockholders approved the 2017 Omnibus Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the issuance of a maximum of 9,067,917 shares of stock-denominated awards to directors, employees, officers and agents of the Company. As of August 30, 2025, there were 2.5 million shares available for grant under the Incentive Plan.

Stock options granted under the Incentive Plan are granted at a price equal to or more than the fair value of common stock on the date the option is granted. Stock options under the Incentive Plan generally become exercisable ratably over three years from the date of grant and must be exercised within ten years from the date of grant.


(In thousands, except share and per share data)	Shares underlying options	Weighted average exercise price		Weighted average remaining life (years)	Aggregate intrinsic value
Outstanding as of August 31, 2024	2,410,567	$	20.75	4.39	$	29,826
Granted	34,035	36.49
Exercised	(948,665)	13.62
Forfeited	(19,694)	40.07
Outstanding as of August 30, 2025	1,476,243	$	25.44	4.61	$	10,147
Vested and expected to vest as of August 30, 2025	1,476,243	$	25.44	4.61	$	10,147
Exercisable as of August 30, 2025	1,245,609	$	23.31	4.01	$	10,147


Range of Exercise Prices				Number outstanding	Weighted average exercise price		Weighted average remaining life (years)	Number exercisable	Weighted average exercise price
$	12.00	-	17.77	442,434	$	12.54	1.98	442,434	$	12.54
$	17.78	-	23.55	286,940	20.17		4.19	286,940	20.17
$	23.56	-	29.33	141,527	24.40		4.16	141,527	24.40
$	29.34	-	35.11	17,633	33.02		8.03	5,877	33.02
$	35.12	-	40.88	587,709	37.74		6.79	368,831	38.10
				1,476,243	$	25.44	4.61	1,245,609	$	23.31

The weighted average fair value of options granted during the fifty-two weeks ended August 30, 2025, and the fifty-three weeks ended August 31, 2024, and fifty-two weeks ended August 26, 2023, were $16.47, $14.36, and $16.58, respectively.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes Option Pricing Model based on the following assumptions:


	52-Weeks Ended	53-Weeks Ended	52-Weeks Ended
	August 30, 2025	August 31, 2024	August 26, 2023
Expected volatility	37.58%	37.00%	39.00%
Expected dividend yield	—%	—%	—%
Expected option term	6.5	6	6
Risk-free rate of return	4.00%	4.39%	4.27%

As the Company has now been listed for more than six years for the years presented above, which is broadly consistent with the expected term of the options, the Company has based its Black-Scholes valuation model’s expected volatility assumption on the actual volatility of its daily closing share price over the period since listing to the valuation date. The risk-free rates are based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term. Future annual dividends over the expected term are estimated to be nil.

As of August 30, 2025, the Company had $1.1 million of total unrecognized compensation cost related to stock option plans that will be recognized over a weighted average period of 0.9 years. During the fifty-two weeks ended August 30, 2025, fifty-three weeks ended August 31, 2024, and fifty-two weeks ended August 26, 2023, the Company received $12.9 million, $4.3 million, and $5.2 million in cash from stock option exercises, respectively.

Restricted stock units granted under the Incentive Plan are granted at a price equal to closing market price of the Company’s common stock on the date of grant. Restricted stock units under the Incentive Plan generally vest over three years.


	Units	Weighted average grant-date fair value
Non-vested as of August 31, 2024	546,271	$	37.38
Granted	420,481	35.50
Vested	(302,325)	37.37
Forfeited	(25,412)	37.53
Non-vested as of August 30, 2025	639,015	$	36.14

As of August 30, 2025, the Company had $14.5 million of total unrecognized compensation cost related to restricted stock units that will be recognized over a weighted average period of 1.7 years.

During the fifty-two weeks ended August 30, 2025, the Board of Directors granted performance stock units under the Company’s 2017 Omnibus Incentive Plan. The number of shares issuable as a result of grants of performance stock units is determined based on market-based criteria, performance-based criteria, or a combination of market-based criteria and performance-based criteria. The number of shares may be increased or decreased based on the results of these metrics in accordance with the terms established at the date of grant.

For market-based criteria awards, the Company’s relative total shareholder return, or relative TSR, is measured for the Company and each company in the Russell 3000 Food & Beverage index using the immediately preceding 30-day average share price at the beginning and end of the applicable three-year performance period. The percentile rank of the Company’s TSR relative to that of the peer group determines the percent of the target award earned, ranging between 0% and 200%. The related compensation expense is recognized ratably over the term regardless of whether or not the market condition is satisfied, provided the requisite service is rendered. These units are valued using a Monte Carlo simulation.

For Company financial performance-based criteria awards, we estimate the probability that the Company’s internally established performance criteria will be achieved at each reporting period and adjust compensation expense accordingly. The performance metrics achieved determines the percent of the target award earned, ranging between 0% and 200%. These units are valued using the closing market price of the Company’s common stock on the date of grant.

For market-based criteria and Company financial performance-based criteria awards, the Company’s TSR within the peer group and the performance metrics achieved determines the percent of the target award earned, ranging between 0% and 275%. We estimate the probability that the performance criteria will be achieved at each reporting period and adjust compensation expense accordingly. Should the performance-based criteria not be probable of being achieved, the compensation expense for the value of the award incorporating the market-based criteria is recognized ratably over the term, provided the requisite service is rendered. These units are valued using a Monte Carlo simulation.


	Units	Weighted average grant-date fair value
Non-vested as of August 31, 2024	179,791	$	59.08
Granted	154,089	48.03
Vested	(12,175)	63.42
Forfeited	(43,512)	59.76
Non-vested as of August 30, 2025	278,193	$	52.66

Performance stock units are generally granted to employees as a part of the annual grant in November of the associated fiscal year, although the Board of Directors reserves the right to administer mid-year grants from time to time as they see fit. The fair value of each performance stock unit grant with a market-based TSR component is estimated on the date of grant using a Monte-Carlo simulation based on the following assumptions presented below which are associated with each year’s annual grant:


	52-Weeks Ended	53-Weeks Ended	52-Weeks Ended
	August 30, 2025	August 31, 2024	August 26, 2023
Expected volatility	31.38%	33.96%	45.00%
Expected dividend yield	—%	—%	—%
Expected performance term	2.93	2.93	3
Risk-free rate of return	4.14%	4.62%	4.55%
Fair value	$54.41	$57.43	$62.55

As of August 30, 2025, the Company had $5.1 million of total unrecognized compensation cost related to performance stock units that will be recognized over a weighted average period of 1.4 years.

Stock appreciation rights (“SARs”) permit the holder to participate in the appreciation of the Company’s common stock price and are awarded to non-employee consultants of the Company. The Company’s SARs settle in shares of its common stock if and when the applicable vesting criteria has been met. The SARs outstanding as of August 30, 2025 cliff vested two years from the date of grant and must be exercised within five years from the date of grant.


	Shares Underlying SARs	Weighted average exercise price
Outstanding as of August 31, 2024	150,000	$	37.67
Granted	—	—
Exercised	—	—
Forfeited	—	—
Outstanding as of August 30, 2025	150,000	$	37.67
Vested as of August 30, 2025	150,000	$	37.67
Exercisable as of August 30, 2025	150,000	$	37.67

The SARs exercised in the fifty-two weeks ended August 26, 2023, resulted in a net issuance of 38,850 shares of the Company’s common stock. The SARs outstanding as of the fifty-two weeks ended August 30, 2025 are liability-classified; therefore, the related stock-based compensation expense is based on the vesting provisions and the fair value of the awards.