Stock-based Compensation

9 Months Ended

Sep. 28, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based compensation expense for the thirty-nine weeks ended September 28, 2024 and September 30, 2023 was $51.1 million and $51.0 million, respectively.

Time-based options

Stock option awards containing only a service condition (“time-based options”) generally vest in equal annual installments over a three-year or five-year period 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 activity related to time-based options:


(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	520	19.18
Exercised	(1,305)	2.29
Forfeited or expired	(426)	14.66
Outstanding at September 28, 2024	6,319	7.25		6.23	32,306
Exercisable at September 28, 2024	3,646	4.42		5.22	25,157

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 initial public offering (“IPO”), with the remainder scheduled to vest in equal increments over three years starting on June 30, 2024 provided market-specific conditions are achieved. The vesting of performance-based options is subject to continued employment through the vesting date. To the extent that the requisite service is rendered, compensation cost for accounting purposes is not reversed; rather, it is recognized regardless of whether or not the market-specific conditions are achieved.

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 thirty-nine weeks ended September 28, 2024 and September 30, 2023, we recognized $43.4 million and $19.2 million, respectively, 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. During the thirty-nine weeks ended September 30, 2023, we also recognized $28.0 million of expense related to performance-based options that vested upon completion of our IPO.

The following table summarizes activity related to performance-based options:


(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	(283)	1.74
Forfeited or expired	(323)	1.62
Outstanding at September 28, 2024	7,342	2.09		5.30	63,110
Exercisable at September 28, 2024	3,599	2.10		5.29	30,912

Restricted stock units

Restricted stock units (“RSUs”) contain a service condition and 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 provide service to, the Company through each vesting date.

The following table summarizes activity related to RSUs:


(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	557	18.70
Vested	(186)	22.67
Forfeited	(73)	21.73
Unvested at September 28, 2024	845	20.23