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Income Taxes | 12 Months Ended
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Dec. 27, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the Company’s income before income taxes consist of the following:
|  | Fiscal Years Ended
|  | December 27, 2024 |  | December 29, 2023 |  | December 30, 2022
Domestic |  | $ | 59,023 |  |  | $ | 40,171 |  |  | $ | 40,428 |
Foreign |  | 20,509 |  |  | 15,298 |  |  | 1,461 |
Total |  | $ | 79,532 |  |  | $ | 55,469 |  |  | $ | 41,889 |
The provision for income taxes consists of the following:
|  | Fiscal Years Ended
|  | December 27, 2024 |  | December 29, 2023 |  | December 30, 2022
Current income tax expense: |  |  |  |  |  |
Federal |  | $ | 13,420 |  |  | $ | 9,913 |  |  | $ | 1,665 |
Foreign |  | 2,488 |  |  | 838 |  |  | 208 |
State |  | 6,681 |  |  | 2,014 |  |  | 2,665 |
Total current income tax expense |  | 22,589 |  |  | 12,765 |  |  | 4,538 |
Deferred income tax expense (benefit): |  |  |  |  |  |
Federal |  | 4,712 |  |  | 4,320 |  |  | 9,571 |
Foreign |  | (2,173) |  |  | (48) |  |  | (4) |
State |  | (1,075) |  |  | 3,842 |  |  | 34 |
Total deferred income tax expense |  | 1,464 |  |  | 8,114 |  |  | 9,601 |
Total income tax expense |  | $ | 24,053 |  |  | $ | 20,879 |  |  | $ | 14,139 |
The Organization for Economic Co-operation and Development (the “OECD”) introduced a framework under Pillar Two which includes a global corporate minimum tax rate of 15%. Some jurisdictions in which the Company operates have started to enact laws implementing Pillar Two, including Canada which enacted the rule in June 2024. The rules did not have a material impact on its consolidated financial statements in fiscal 2024. The Company is monitoring any future developments. As a result of a five year carryback allowed under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the Company carried back its 2020 federal income tax loss, which resulted in a income tax refund receivable of $25,945 and $22,966 as of December 27, 2024 and December 29, 2023, respectively. The receivable is reflected in prepaid expenses and other current assets on the Company’s consolidated balance sheets. The IRS is experiencing significant processing delays driven by an increase in net operating loss carryback requests as a result of the CARES Act, along with other factors. As a result, the processing and expected receipt of the federal income tax refund receivable has been significantly delayed. The Company is currently working with IRS Taxpayer’s Advocate Services and consultants to resolve the processing issue. While progress has been made with the IRS and the Company expects to receive the refunds within one year, the exact timing of receipt is difficult to predict. Income tax expense differed from amounts computed using the statutory federal income tax rate due to the following reasons:
|  | Fiscal Years Ended
|  | December 27, 2024 |  | December 29, 2023 |  | December 30, 2022
Statutory U.S. Federal tax |  | $ | 16,702 |  |  | $ | 11,648 |  |  | $ | 8,797 |
Differences due to: |  |  |  |  |  |
State and local taxes, net of federal benefit |  | 5,865 |  |  | 3,497 |  |  | 3,251 |
Change in valuation allowance |  | (2,119) |  |  | 478 |  |  | (405) |
Foreign rate differential |  | (2,019) |  |  | (2,254) |  |  | (560) |
Loss on debt extinguishment |  | — |  |  | — |  |  | 2,982 |
Acquisition costs |  | — |  |  | 509 |  |  | 472 |
Compensation limitation |  | 2,501 |  |  | 4,504 |  |  | — |
US tax on international operations |  | 2,031 |  |  | 929 |  |  | 190 |
Stock compensation |  | (212) |  |  | 913 |  |  | (170) |
Other |  | 1,304 |  |  | 655 |  |  | (418) |
Income tax expense |  | $ | 24,053 |  |  | $ | 20,879 |  |  | $ | 14,139 |
Deferred tax assets and liabilities at December 27, 2024 and December 29, 2023 consist of the following:
|  | December 27, 2024 |  | December 29, 2023
Deferred tax assets: |  |  |  |
Receivables and inventory |  | $ | 11,753 |  |  | $ | 11,197 |
Self-insurance reserves |  | 4,819 |  |  | 3,730 |
Net operating loss carryforwards |  | 3,171 |  |  | 3,420 |
Interest expense carryforward |  | 16,955 |  |  | 12,855 |
Stock compensation |  | 4,416 |  |  | 5,122 |
Intangible assets |  | 4,006 |  |  | 525 |
Charitable contribution carryforward |  | — |  |  | 2,271 |
Operating lease liabilities |  | 54,272 |  |  | 55,319 |
Other |  | 329 |  |  | 930 |
Total deferred tax assets |  | 99,721 |  |  | 95,369 |
Deferred tax liabilities: |  |  |  |
Property & equipment |  | (23,627) |  |  | (22,483) |
Goodwill |  | (34,861) |  |  | (27,660) |
Intangible assets |  | (2,956) |  |  | (3,292) |
Prepaid expenses and other |  | (4,647) |  |  | (3,391) |
Operating lease right-of-use assets |  | (49,521) |  |  | (50,842) |
Total deferred tax liabilities |  | (115,612) |  |  | (107,668) |
Valuation allowance |  | — |  |  | (2,119) |
Total net deferred tax liability |  | $ | (15,891) |  |  | $ | (14,418) |
The deferred tax provision results from the effects of net changes during the year in deferred tax assets and liabilities arising from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company files Federal and various state and local income tax returns in the U.S and various foreign jurisdictions. For Federal income tax purposes, the 2021 through 2024 tax years remain open for examination. For state tax purposes, the 2020 through 2024 tax years remain open for examination. For foreign income tax purposes, the 2014 through 2024 tax years remain open for examination. The Company records interest and penalties, if any, in income tax expense. The Company’s Canada tax-effected net operating loss carryforward of $1,962 expires at various dates between fiscal 2037 and 2043. The Company’s state tax-effected net operating loss carryforward of $1,209 expires at various dates, the earliest of which expire in fiscal 2027, while others are indefinite-lived. The Company is permanently reinvesting the earnings of its foreign operations. The accumulated undistributed earnings of its foreign subsidiaries are immaterial, as a majority of such earnings have been taxed in the U.S. As of December 27, 2024 and December 29, 2023, the Company did not have any material uncertain tax positions.

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