Income taxes (Tables)

12 Months Ended

Jan. 03, 2026

Schedule of Components of Income Tax (Benefit) Provision

The income tax provision (benefit) consists of:


In thousands	Fiscal Year 2025		Fiscal Year 2024		Fiscal Year 2023
Current income tax:
Federal	$	3,190	$	9,333	$	8,278
State	2,502		2,123		3,717
Deferred income tax:
Federal	5,839		(8,869)		(3,878)
State	550		(1,106)		(2,111)
Income tax provision (benefit) from continuing operations	$	12,081	$	1,481	$	6,006

Schedule of Effective Income Tax Rate Reconciliation

Our income tax provision (benefit) differs from the amounts computed by multiplying earnings (loss) before income taxes by the statutory federal income tax rate.


In thousands	Fiscal Year 2025				Fiscal Year 2024				Fiscal Year 2023
Earnings (loss) from continuing operations before income taxes	$	41,681			$	(25,684)			$	9,552
Federal income tax provision at statutory rate	8,753		21.0	%	(5,394)		21.0	%	2,006		21.0	%
State income tax provision, net of federal income tax (a)	2,422		5.8	%	895		(3.5)	%	1,686		17.7	%
Tax credits:
Work opportunity tax credit	(899)		(2.2)	%	(747)		2.9	%	(1,143)		(12.0)	%
Increase (decrease) in deferred tax asset valuation allowance	(912)		(2.2)	%	(1,272)		5.0	%	2,238		23.4	%
Nontaxable or nondeductible items:
Executive compensation limitation	623		1.5	%	994		(3.9)	%	354		3.7	%
Goodwill impairment	—		—	%	3,539		(13.8)	%	—		—	%
Tax provision (benefit) of equity-based compensation deductions	876		2.1	%	1,240		(4.8)	%	1,133		11.9	%
Meals and entertainment	327		0.8	%	369		(1.4)	%	433		4.5	%
Other	14		—	%	(22)		0.1	%	(64)		(0.7)	%

Other adjustments:
Net operating loss limitation	467		1.1	%	—		—	%	—		—	%
Other, net	410		1.1	%	1,879		(7.4)	%	(637)		(6.6)	%
Net income tax provision (benefit) from continuing operations / Effective tax rate	$	12,081	29.0	%	$	1,481	(5.8)	%	$	6,006	62.9	%

Note: Percentages reflect line item as a percentage of earnings (loss) from continuing operations before income taxes, adjusted for rounding.
(a) State taxes in Texas, Florida, California, New Jersey and Illinois made up the majority (greater than 50 percent) of the tax effect in this category.

Schedule of Income Tax Paid (Net of Refunds)

Incomes taxes paid (net of refunds) are as follows:


In thousands	Fiscal Year 2025		Fiscal Year 2024		Fiscal Year 2023
Federal	$	17,844	$	4,200	$	2,795
State	3,302		2,132		4,776
Total income taxes paid	$	21,146	$	6,332	$	7,571

Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:

In thousands

Fiscal Year 2025

Fiscal Year 2024

Fiscal Year 2023

Texas

606

578

* Jurisdiction below the threshold for the period presented.

Schedule of Deferred Tax Assets and Liabilities

The sources of the differences between the financial accounting and tax bases of our assets and liabilities that give rise to the deferred tax assets and deferred tax liabilities and the tax effects of each are as follows:


In thousands	As of January 3, 2026		As of December 28, 2024
Deferred tax assets:
NOL carry-forwards	$	6,454	$	8,017

Credit carryforwards	289		274
Deferred revenue	6,126		5,999
Accrued expenses and reserves	12,425		13,811
Loss on equity and other investments	878		886
Stock-based compensation	7,936		6,191

Operating lease liabilities	114,237		120,990

Subtotal	148,345		156,168
Valuation allowances	(5,458)		(5,961)
Total net deferred tax assets	142,887		150,207
Deferred tax liabilities:
Depreciation of property and equipment	(58,634)		(57,150)
Amortization of intangible assets	(65,051)		(65,168)

Right of use asset	(98,716)		(102,446)
Other	(3,058)		(3,352)
Total deferred tax liabilities	(225,459)		(228,116)
Net deferred tax liabilities	$	(82,572)	$	(77,909)