Income Taxes (Tables)

12 Months Ended

Dec. 28, 2024

Schedule of Income before Income Tax Expense (Benefit)

Income before income taxes consisted of the following:


	Fiscal Year
(in thousands)	2024		2023		2022
U.S. operations	$	32,767	$	(2,940)	$	103,902
Foreign operations	16,667		50,019		20,396
Income before income taxes	$	49,434	$	47,079	$	124,298

Schedule of Components of Income Tax Expense (Benefit)

Components of income tax expense (benefit) are summarized as follows:


	Fiscal Year
(in thousands)	2024		2023		2022
Current:
U.S. - federal	$	21,749	$	8,280	$	354
U.S. - state	5,579		6,232		3,279
Foreign	24,360		14,838		15,401
Deferred:
U.S. - federal	(18,733)		(19,480)		16,934
U.S. - state	(4,476)		(13,156)		4,074
Foreign	(8,075)		(2,750)		(464)
Income tax expense (benefit)	$	20,404	$	(6,036)	$	39,578

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows for the consolidated taxable entities at December 28, 2024 and December 30, 2023:


(in thousands)	December 28, 2024		December 30, 2023
Deferred tax assets:
Lease liability	$	147,676	$	129,486
Deferred interest	20,366		16,116
Deferred payroll	14,148		13,062
Unrealized foreign exchange loss	8,940		4,033
Sec. 267 deferred basis	8,466		8,493
Insurance reserves	5,141		4,935
Partnership tax deferral	4,601		—
Capitalized research and development	4,413		2,894
Net operating loss carryforwards	1,281		1,142
Other	6,430		3,653
Deferred tax assets, exclusive of valuation allowance	221,462		183,814
Less: valuation allowance	10,263		5,927
Deferred tax assets, net of valuation allowance	211,199		177,887
Deferred tax liabilities:
ROU lease asset	142,245		125,937
Trade names and trademarks	28,556		28,753
Property and equipment depreciation	17,197		19,407
Charity licensing agreements	10,490		12,418
Inventory	3,397		3,116
Leasehold interests	2,386		3,856
Unrealized foreign exchange gain	113		4,405
Partnership tax deferral	—		2,037
Other	3,014		5,867
Deferred tax liabilities	207,398		205,796
Deferred tax assets (liabilities), net	$	3,801	$	(27,909)

Schedule of Effective Income Tax Reconciliation

The differences between income taxes expected by applying the 21% U.S. federal statutory tax rate and the amount of income taxes provided for are as follows:


	Fiscal Year
(in thousands)	2024		2023		2022

Tax expense at statutory rate	$	10,381	$	9,887	$	26,103
Increase (decrease) in income taxes resulting from:
Change in valuation allowance	7,348		(2,996)		4,068
Section 162(m) limitation	6,648		11,229		—
Foreign rate differential	3,720		2,623		—
Withholding taxes	1,619		2,279		1,687
State taxes net of federal benefit	871		4,519		5,844
Tax impact of restructuring(1)	—		(31,340)		—
Impact of foreign currency translations	(619)		(1)		(67)
Change in tax rate	(878)		4		—
Stock-based compensation	(1,130)		1,590		(140)
GILTI / FDII(2)	(1,493)		(1,603)		(1,114)
Change in uncertain tax positions	(1,681)		—		—
Prior year true-up	(2,236)		4,205		(509)
Tax credits	(2,492)		(3,741)		(2,571)
Other	346		(2,691)		6,277
Income tax expense (benefit)	$	20,404	$	(6,036)	$	39,578

(1)In October 2023 the Company underwent an internal legal entity restructuring.

(2)GILTI and FDII refer to Global Intangible Low-Taxed Income and Foreign-Derived Intangible Income, respectively.

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits:


	Fiscal Year
(in thousands)	2024		2023		2022
Beginning gross unrecognized tax benefits	$	1,912	$	1,912	$	1,912
Increase related to prior year tax position	138		—		—
Decrease related to prior year tax position	(1,819)		—		—
Ending gross unrecognized tax benefits	$	231	$	1,912	$	1,912