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 28, 2019		315,678		$	186.53
Granted		25,870			383.22
Forfeited		(2,595	)		241.84
Expired		—			—
Exercised		(91,606	)		137.55

Outstanding at September 26, 2020		247,347		$	224.66		6.08	$	161,050

Exercisable at September 26, 2020		59,138		$	196.52		5.05	$	40,170

Vested and expected to vest at September 26, 2020		223,104		$	223.63		6.04	$	145,495

Of the total options outstanding at September 26, 2020, 40,000 shares were performance-based options for which the performance criteria had yet to be achieved.

On January 31, 2020, the Company granted options to purchase an aggregate of 978 shares of the Company’s Class A Common Stock to the Company’s

newly appointed non-employee Director, of which all shares vest immediately.

These options have a weighted average fair value of $146.87 per share

On March 1, 2020, the Company granted

performance-based stock

options to purchase an aggregate of 14,962 shares of the Company’s Class A Common Stock with a weighted average fair value of $142.25

per share to senior management.

On March 2, 2020, the Company granted

performance-based stock

options to purchase an aggregate of 7,030 shares of the Company’s Class A Common Stock with a weighted average fair value of $142.23 per

share to the Company’s newly appointed Chief People Officer.

On May 14, 2020, the Company granted options to purchase an aggregate of 2,900 shares of the Company’s Class A Common Stock to the Company’s

non-employee

Directors. These options have a weighted average fair value of $198.14 per share. All of the options vested immediately on the date of the grant.

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


		2020
Expected Volatility		32.6%
Risk-free interest rate		1.1%
Expected Dividends		0.0%
Exercise factor		2.1 times
Discount for post-vesting restrictions		0.0%

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 28, 2019		122,142		$	213.52
Granted		42,455			349.95
Vested		(45,860	)		214.23
Forfeited		(4,488	)		236.78

Non-vested at September 26, 2020		114,249		$	263.02

Of the total shares outstanding at September 26, 2020, 3,000 shares were performance-based shares for which the performance criteria had yet to be achieved.

On March 1, 2020, the Company granted 15,011 shares of restricted stock units to certain officers, senior managers and key employees,

all

of which vest ratably over service periods of four years.

Additionally,

on March 1, 2020, the Company granted a combined 13,482 shares of restricted stock units to select senior management employees with various service and

performance-based

vesting conditions. On March 1, 2020, employees elected to purchase 9,127 shares under the Company’s investment

share program,

under which shares of the Company’s Class A Common Stock are sold to employees at a discount.

The

weighted average fair value of the restricted stock units and investment shares

was $370.79 and $169.43 per share, respectively.

On March 2, 2020, the Company granted its newly appointed Chief People Officer 2,696 shares of restricted stock units with a weighted-average fair value of $370.79 per share with service based vesting through 2024.

On July 28, 2020, the Company granted an officer 1,842 shares of restricted stock units with a weighted-average fair value of $814.19 per share with service based vesting in 2023. Also on July 28, 2020, the Company granted a senior manager 184 shares of restricted stock units with a weighted-average fair value of $814.19 per share with service based vesting through 2024.

On September 1, 2020, the Company granted a senior manager 113 shares of restricted stock units with a weighted-average fair value of $881.98 per share with service passed vesting through 2024.

Stock-Based Compensation

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


	Thirteen weeks ended				Thirty-nine weeks ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
	(in thousands)				(in thousands)
Amounts included in advertising, promotional and selling expenses	$	1,203	$	1,180	$	3,054	$	2,778
Amounts included in general and administrative expenses		2,429		2,053		7,681		6,265

Total stock-based compensation expense	$	3,632	$	3,233	$	10,735	$	9,043