Share Based Compensation

9 Months Ended

Sep. 26, 2024

Share-Based Payment Arrangement [Abstract]

During the 39 weeks ended September 26, 2024, the Company granted restricted stock, restricted stock units (RSUs) and performance stock units (PSUs) to certain executives and associates.

Restricted Stock and Restricted Stock Units

During the 39 weeks ended September 26, 2024, the Company granted (i) an annual award of restricted stock and RSUs with a vesting period of 50% after two years and 100% after three years, and (ii) a special long-term incentive and retention award of restricted stock to certain executives with a vesting period of 100% after four years, or upon retirement after three years. Restricted stock awards are issued and outstanding common stock at the time of the grant and become unrestricted upon the vesting date. RSU awards are payable in common stock upon vesting. The Company expenses the cost of restricted stock and RSU awards over the vesting period based on the fair value of the award at the date of grant.

Performance Stock Units

During the 39 weeks ended September 26, 2024, the Company granted PSUs with vesting subject to the Company’s achievement of performance goals expressed in terms of (i) earnings before interest, taxes, depreciation and amortization, or EBITDA, growth rate ranking relative to the Russell 2000 Index with respect to 25% of the total number of performance stock unit awards, and (ii) the Company’s average return on invested capital, or ROIC, ranking relative to the Russell 2000 Index with respect to 75% of the total number of performance stock unit awards. For grants awarded in fiscal 2024, the PSU performance goals relate to the three-year performance period from fiscal 2024-2026. PSUs are payable at the end of their respective performance period in common stock, and the number of PSUs awarded can range from zero to 150% depending on the Company’s achievement of the relative performance metrics. The Company expenses the cost of PSUs based on the fair value of the awards at the date of grant and the estimated achievement of the performance metric, ratable over the performance period of three fiscal years.

A summary of the Company’s stock option, restricted stock and RSU and PSU activity and related information follows, with PSUs reflected at the target achievement percentage until the completion of the performance period (shares in thousands):


	Stock Options			Restricted Stock & RSUs			PSUs
	Options	Weighted-Average Exercise Price		Shares / Units	Weighted-Average Fair Value		Units	Weighted-Average Fair Value
December 28, 2023	3,173	$	22.69	238	$	17.41	—	$	—
Granted	—	—		503	14.83		143	14.84
Exercised (1)	—	—		—	—		—	—
Vested (2)	—	—		(47)	21.35		—	—
Forfeited	(156)	18.92		(4)	14.84		(4)	14.84
September 26, 2024	3,017	$	22.88	690	$	15.28	139	$	14.84

(1)Exercise activity only applicable to stock options.

(2)Vesting activity not applicable to stock options.

Share-based compensation expense was $2,225 and $7,157, respectively, during the 13 and 39 weeks ended September 26, 2024, and $1,313 and $5,000, respectively, during the 13 and 39 weeks ended September 28, 2023. As of September 26, 2024, total unrecognized share-based compensation expense related to stock options was $1,909, which will be amortized to expense over the weighted-average remaining life of 1.9 years. As of September 26, 2024, total unrecognized share-based compensation expense related to non-vested restricted stock, RSUs and PSUs was $6,645, which will be amortized over the weighted-average remaining service period of 2.9 years.

At September 26, 2024, there were 117,441 shares available for grants of additional stock options, restricted stock, RSUs, PSUs and other types of equity awards under the current plan.