Common Stock and Stock-Based Compensation

9 Months Ended

Sep. 25, 2021

Share-based Payment Arrangement [Abstract]

Common Stock and Stock-Based Compensation

O. 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 26, 2020		241,847		$	228.58
Granted		20,420			1,031.01
Forfeited		-			-
Expired		-			-
Exercised		(32,835	)		197.25
Outstanding at September 25, 2021		229,432		$	304.49		5.68	$	59,372
Exercisable at September 25, 2021		81,317		$	228.58		4.82	$	24,398
Vested and expected to vest at September 25, 2021		210,177		$	300.67		5.64	$	54,825

Of the total options outstanding at September 25, 2021, 30,049 shares were performance-based options for which the performance criteria had yet to be achieved.

On March 1, 2021, the Company granted options to purchase an aggregate of 8,063 shares of the Company’s Class A Common Stock to senior management with a weighted average fair value of $449.93 per share, of which all shares relate to performance-based stock options.

On March 1, 2021 the Company granted options to purchase an aggregate of 10,935 shares of the Company’s Class A Common Stock to the Chief Executive Officer with a weighted average fair value of $457.25 per share, of which all shares relate to service-based stock options.

On May 19, 2021, the Company granted options to purchase an aggregate of 1,422 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 $484.33 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:


	2021
Expected Volatility		36.1	%
Risk-free interest rate		1.5	%
Expected Dividends		0.0	%
Exercise factor	2.6 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 26, 2020		114,316		$	263.47
Granted		17,821			877.10
Vested		(42,019	)		227.46
Forfeited		(1,000	)		370.68
Non-vested at September 25, 2021		89,118		$	402.77

Of the total shares outstanding at September 25, 2021, 2,696 shares were performance-based shares for which the performance criteria had yet to be achieved.

On March 1, 2021, the Company granted a combined 7,817 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, 2020, the Company granted 4,861 shares of restricted stock units to the Chief Executive Officer, of which all shares vest over five years. On March 1, 2021, employees elected to purchase a combined 4,954 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 $1,028.71 and $502.32 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				Thirty-nine weeks ended
	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
	(in thousands)				(in thousands)
Amounts included in advertising, promotional and selling expenses	$	1,064	$	1,203	$	4,004	$	3,054
Amounts included in general and administrative expenses		2,647		2,429		9,998		7,681
Total stock-based compensation expense	$	3,711	$	3,632	$	14,002	$	10,735