Common Stock and Stock-Based Compensation

6 Months Ended

Jun. 25, 2022

Share-based Payment Arrangement [Abstract]

Common Stock and Stock-Based Compensation

M. 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		20,924			378.55
Exercised		(17,592	)		193.12
Forfeited		(6,457	)		299.16
Outstanding at June 25, 2022		218,229		$	326.70		5.61	$	19,011
Exercisable at June 25, 2022		115,834		$	250.18		4.94	$	12,577
Vested and expected to vest at June 25, 2022		198,774		$	318.23		5.53	$	17,789

Of the total options outstanding at June 25, 2022, 25,171 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.

On May 18, 2022, the Company granted options to purchase an aggregate of 3,810 shares of the Company’s Class A Common Stock to the Company’s non-employee Directors. All of the options vested immediately on the date of the grant. These options have a fair value of $181.14 per share and an exercise price of $356.52 per share.

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

	2022
Expected Volatility		38.0	%
Risk-free interest rate		2.1	%
Expected Dividends		0.0	%
Exercise factor	3
Discount for post-vesting restrictions		0.8	%

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		42,560			344.62
Vested		(32,081	)		293.84
Forfeited		(6,092	)		545.46
Non-vested at June 25, 2022		93,235		$	409.29

Of the total shares outstanding at June 25, 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				Twenty-six weeks ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021
	(in thousands)				(in thousands)
Amounts included in advertising, promotional and selling expenses	$	1,494	$	1,268	$	2,721	$	2,940
Amounts included in general and administrative expenses		3,314		4,066		5,009		7,351
Total stock-based compensation expense	$	4,808	$	5,334	$	7,730	$	10,291