Common Stock and Stock-Based Compensation

3 Months Ended

Mar. 26, 2022

Share-based Payment Arrangement [Abstract]

Common Stock and Stock-Based Compensation

. Common Stock and Stock-Based Compensation

Option Activity

Information related to stock options under the Restated Employee Equity Incentive Plan and the Stock Option Plan for Non-Employee Directors is summarized as follows:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term in Years		Aggregate Intrinsic Value (in thousands)
Outstanding at December 25, 2021		221,354		$	310.38
Granted		17,114			383.46
Exercised		(12,014	)		198.13
Outstanding at March 26, 2022		226,454		$	321.86		5.71	$	27,690
Exercisable at March 26, 2022		111,689		$	240.29		4.84	$	17,493
Vested and expected to vest at March 26, 2022		204,649		$	313.40		5.62	$	25,752

Of the total options outstanding at March 26, 2022, 8,057 shares were performance-based options for which the performance criteria had yet to be achieved.

On March 1, 2022, the Company granted options to purchase an aggregate of 17,114 shares of the Company’s Class A Common Stock to senior management with a weighted average fair value of $178.10 per share and a weighted average exercise price of $383.46 per share, of which all shares relate to performance-based stock options.

Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows:

	2022
Expected Volatility		37.9	%
Risk-free interest rate		1.9	%
Expected Dividends		0.0	%
Exercise factor	2.8
Discount for post-vesting restrictions		1.0	%

Non-Vested Shares Activity

The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards:

	Number of Shares			Weighted Average Fair Value
Non-vested at December 25, 2021		88,848		$	401.70
Granted		41,946			344.41
Vested		(24,308	)		310.66
Forfeited		(1,829	)		496.86
Non-vested at March 26, 2022		104,657		$	403.50

Of the total shares outstanding at March 26, 2022, 1,348 shares were performance-based shares for which the performance criteria had yet to be achieved.

On March 1, 2022, the Company granted a combined 31,101 shares of restricted stock units to certain officers, senior managers and key employees, of which all shares vest ratably over service periods of four years. Additionally on March 1, 2022, employees elected to purchase a combined 10,845 shares under the Company’s investment share program. The weighted average fair value of the restricted stock units and investment shares, which are sold to employees at discount under its investment share program, was $383.46 and $232.41 per share, respectively.

Stock-Based Compensation

The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying condensed consolidated statements of comprehensive operations:

	Thirteen weeks ended
	March 26, 2022		March 27 2021
	(in thousands)
Amounts included in advertising, promotional and selling expenses	$	1,227	$	1,672
Amounts included in general and administrative expenses		1,695		3,285
Total stock-based compensation expense	$	2,922	$	4,957