Employee Awards

9 Months Ended

Sep. 27, 2025

Share-Based Payment Arrangement [Abstract]

Employee Awards

Employee Awards

Prior to our IPO, we issued time-vested and performance-vested cash awards to certain employees. The time-vested cash awards vest over a time period of three years, and the performance-vested cash awards vest upon the achievement of a certain performance target measured after a time period of three years. The performance condition for the cash awards for grants to management is based on earnings growth. Cumulative compensation expense for cash awards is recognized as a liability. Each cash award has a fixed fair value of $1.00. We recognize these compensation costs, net of an estimated forfeiture rate, over the requisite service period of the award, which is the vesting term of the outstanding cash award. We estimate the forfeiture rate based on our historical experience.

In connection with our IPO, our board of directors adopted, and our stockholders approved, the 2024 Stock Incentive Plan (the “2024 Plan”) as more fully described in Note 2, “Significant Accounting Policies” to the Consolidated Financial Statements included in our Annual Report. During the Thirty-Nine Weeks Ended September 27, 2025, we granted time-vesting restricted stock units that vest over a time period of three years and performance-vesting restricted stock units that vest upon the achievement of certain performance targets measured after a time period of three years. For stock-based awards, we account for forfeitures as they occur.

Cash-based awards

Activity related to the cash awards is as follows:

	Number of Cash Awards (in thousands)
Non-vested at December 28, 2024	72,646
Granted	280
Vested	(20,327)
Forfeited	(10,701)
Non-vested at September 27, 2025	41,898

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Compensation expense - cash awards	$	3,925	$	6,087	$	13,893	$	18,332
Related income tax benefit	$	981	$	1,522	$	3,473	$	4,583

As of September 27, 2025, the unrecognized compensation costs related to the cash awards were $19,341. We expect these costs to be recognized over a remaining weighted-average period of approximately 1.1 years.

Stock-based awards

Activity related to the time-vesting restricted stock units granted under the 2024 Plan was as follows:

	Number of Awards (in thousands)	Weighted-Average Grant Date Fair Value
Non-vested at December 28, 2024	1,134	$	22.01
Granted	1,361	18.94
Vested	(18)	22.89
Forfeited	(58)	20.57
Non-vested at September 27, 2025	2,419	$	20.31

	Thirteen Weeks Ended		Thirty-Nine Weeks Ended
	September 27, 2025		September 27, 2025
Compensation expense	$	4,048	$	11,637
Related income tax benefit	$	541	$	1,809

As of September 27, 2025, the unrecognized compensation costs related to the time-vesting restricted stock units was $36,285. We expect this cost to be recognized over a remaining weighted-average period of approximately 1.4 years.

Activity related to the performance-vesting restricted stock units granted under the 2024 Plan was as follows:

	Number of Awards (in thousands)	Weighted-Average Grant Date Fair Value
Non-vested at December 28, 2024	2,468	$	17.42
Granted	1,297	18.82
Forfeited	(81)	17.61
Non-vested at September 27, 2025	3,684	$	17.91

	Thirteen Weeks Ended		Thirty-Nine Weeks Ended
	September 27, 2025		September 27, 2025
Compensation expense	$	1,970	$	3,470
Related income tax benefit	$	178	$	374

As of September 27, 2025, the unrecognized compensation costs related to the performance-vesting restricted stock units was $20,519. We expect this cost to be recognized over a remaining weighted-average period of approximately 2.6 years. We have not recognized any compensation costs related to the performance-vesting restricted stock units issued in connection with the IPO as the performance condition depends on the occurrence of a qualifying event, which is not deemed probable until it occurs.