Segments

3 Months Ended

Mar. 28, 2025

Segment Reporting [Abstract]

Segments

Segments

The Company evaluates segment reporting in accordance with FASB Accounting Standards Codification Topic 280, Segment Reporting, each reporting period, including evaluating the reporting package reviewed by the CODM. The Company has concluded the Chief Executive Officer, the Chief Operating Officer and the Chief Financial Officer, as a group, represent the CODM. Segment asset information is not provided to the CODM.

The Company has three operating segments, each identified by its unique products and services. Nonalcoholic Beverages represents the vast majority of the Company’s consolidated net sales and income from operations. The additional two operating segments, which include Data Ventures, Inc. and the Red Classic subsidiaries, do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate, and, therefore, have been combined into “All Other.” The accounting policies of the Nonalcoholic Beverages segment are the same as those described in the summary of significant accounting policies presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for 2024.

The CODM uses net sales, gross profit and income from operations in the annual budgeting and forecasting process. Monthly, the CODM considers budget-to-actual variances and current year to prior year variances for these profit measures when making strategic business decisions and allocating resources to Company operations.

The Company’s segment results are as follows:

	First Quarter 2025
(in thousands)	Nonalcoholic Beverages		All Other		Eliminations(1)		Total
Net sales	$	1,569,000	$	75,988	$	(65,011)	$	1,579,977
Cost of goods sold	954,935		45,293		(47,355)		952,873
Gross profit	614,065		30,695		(17,656)		627,104
Selling, delivery and administrative expenses:
Payroll costs(2)	$	265,933	$	12,772	$	—	$	278,705
Fleet costs(3)	23,827		7,683		—		31,510
Depreciation and amortization expense(4)	28,254		538		—		28,792
All other segment items(5)	108,808		7,125		(17,656)		98,277
Total selling, delivery and administrative expenses	426,822		28,118		(17,656)		437,284
Income from operations	$	187,243	$	2,577	$	—	$	189,820
Total depreciation and amortization expense(4)	$	48,048	$	5,325	$	—	$	53,373

	First Quarter 2024
(in thousands)	Nonalcoholic Beverages		All Other		Eliminations(1)		Total
Net sales	$	1,574,712	$	88,102	$	(71,188)	$	1,591,626
Cost of goods sold	946,456		56,761		(52,150)		951,067
Gross profit	628,256		31,341		(19,038)		640,559
Selling, delivery and administrative expenses:
Payroll costs(2)	$	262,697	$	13,276	$	—	$	275,973
Fleet costs(3)	26,078		8,115		—		34,193
Depreciation and amortization expense(4)	25,057		493		—		25,550
All other segment items(5)	102,282		6,193		(19,038)		89,437
Total selling, delivery and administrative expenses	416,114		28,077		(19,038)		425,153
Income from operations	$	212,142	$	3,264	$	—	$	215,406
Total depreciation and amortization expense(4)	$	43,098	$	3,653	$	—	$	46,751

(1)The entire net sales elimination represents net sales from the All Other segment to the Nonalcoholic Beverages segment. The entire cost of goods sold and SD&A eliminations represent costs incurred by the All Other segment in the generation of net sales to the Nonalcoholic Beverages segment.

(2)Payroll costs includes compensation, incentive plans, defined contribution plans, healthcare benefits and tax-advantaged spending accounts.

(3)Fleet costs includes fleet repairs, maintenance and fuel and oil costs.

(4)Total depreciation and amortization expense is included within both cost of goods sold and SD&A expenses. For segment reporting, the difference between total depreciation and amortization expense and the portion within SD&A expenses is the amount within cost of goods sold.

(5)All other segment items includes information technology costs, stewardship, insurance and other costs incurred in the selling and delivery of the Company’s products.