Stock-based Compensation

3 Months Ended

Mar. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based Compensation

Stock-based Compensation

Stock-based compensation expense for the thirteen weeks ended March 30, 2024 and April 1, 2023 was $19.1 million and $0.9 million, respectively.

Time-based options

Stock option awards containing only a service condition (“time-based options”) generally vest in equal annual installments over five years from the date of grant, provided the participant continues to be employed by, or provide service to, the Company through each vesting date.

The following table summarizes the activity related to time-based options as of March 30, 2024:

(in thousands, except per share and remaining term amounts)	Number of options	Weighted average exercise price per share		Weighted average remaining contractual term (in years)	Aggregate intrinsic value
Outstanding at December 30, 2023	7,530	$	5.99	6.93	$	85,774
Granted	475	19.70
Exercised	(1,183)	2.37
Outstanding at March 30, 2024	6,822	7.57		7.12	80,079
Exercisable at March 30, 2024	3,463	3.57		6.11	54,413

Performance-based options

Stock option awards containing a performance condition (“performance-based options”) vest in 25% increments as performance conditions are achieved through the term of the options. Twenty-five percent of the outstanding performance-based options vested upon completion of the Company's IPO, with the remainder scheduled to vest in equal increments over three years starting on June 30, 2024, provided market-specific conditions are achieved. Performance-based options are subject to continued employment through the vesting date.

Upon completion of our IPO on July 3, 2023, we commenced recognition of stock-based compensation for our performance-based options as the underlying performance-based condition was satisfied. During the thirteen weeks ended March 30, 2024, we recognized $16.8 million of expense related to amortization of the remaining outstanding performance-based options that are recognized on a graded vesting basis over their expected vesting period.

The following table summarizes the activity related to performance-based options as of March 30, 2024:

(in thousands, except per share and remaining term amounts)	Number of Options	Weighted average exercise price per share		Weighted average remaining contractual term (in years)	Aggregate intrinsic value
Outstanding at December 30, 2023	7,948	$	2.05	5.78	$	121,750
Exercised	(93)	1.61
Forfeited or expired	(277)	1.61
Outstanding at March 30, 2024	7,578	2.08		5.80	130,314
Exercisable at March 30, 2024	1,895	2.08		5.80	32,579

Restricted Stock Units

Restricted stock units (“RSUs”) containing only a service condition generally vest in equal annual installments over a one-year or three-year period from the date of grant, provided the participant continues to be employed by, or provides service to, the Company through each vesting date.

The following table summarizes the activity related to RSUs as of March 30, 2024:

(in thousands, except per share amounts)	Number of units	Weighted average grant-date fair value per share
Unvested at December 30, 2023	547	$	22.81
Granted	469	19.70
Forfeited	(5)	22.59
Unvested at March 30, 2024	1,011	21.37