Common Stock and Stock-Based Compensation

3 Months Ended

Apr. 01, 2023

Share-Based Payment Arrangement [Abstract]

Common Stock and Stock-Based Compensation

L. 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 31, 2022		204,245	$	334.26
Granted		24,769		323.80
Exercised		-		-
Forfeited		-		-
Outstanding at April 1, 2023		229,014	$	333.13		5.53	$	15,387
Exercisable at April 1, 2023		140,402	$	267.68		4.36	$	12,763
Vested and expected to vest at April 1, 2023		197,600	$	320.34		5.13	$	14,862

Of the total options outstanding at April 1, 2023, 41,883 shares were performance-based options for which the performance criteria had yet to be achieved.

On March 1, 2023, the Company granted options to purchase an aggregate of 24,769 shares of the Company’s Class A Common Stock to senior management with a weighted average fair value of $161.52 per share and a weighted average exercise price of $323.80 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:


	2023
Expected Volatility		39.8	%
Risk-free interest rate		3.9	%
Expected Dividends		0.0	%
Exercise factor		2.6
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 31, 2022		91,211		$	410.22
Granted		44,404			292.28
Vested		(26,308	)		343.57
Forfeited		(1,444	)		367.62
Non-vested at April 1, 2023		107,863		$	379.32

Of the total non-vested shares outstanding at April 1, 2023, 1,348 shares were performance-based shares for which the performance criteria had yet to be achieved.

On March 1, 2023, the Company granted a combined 33,810 shares of restricted stock units to certain officers, senior managers and key employees, of which all shares vest ratably over service periods of up to four years. Additionally on March 1, 2023, employees elected to purchase a combined 10,594 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 $323.80 and $200.08 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
	April 1, 2023		March 26 2022
	(in thousands)
Amounts included in advertising, promotional and selling expenses	$	2,042	$	1,227
Amounts included in general and administrative expenses		2,031		1,695
Total stock-based compensation expense	$	4,073	$	2,922

Stock Repurchases

In 1998, the Company began a share repurchase program. Under this program, the Company's Board of Directors has authorized the repurchase of up to an aggregate amount of $931.0 million of the Company's Class A Stock. The Board of Directors did not specify a date upon which the total authorization would expire and in the future can further increase the authorized amount. Share repurchases under this program for the periods included herein were effected through open market transactions.

During the thirteen weeks ended April 1, 2023, the Company repurchased and subsequently retired 65,029 shares of its Class A Common Stock for an aggregate purchase price of $21.9 million. As of April 1, 2023, the Company had repurchased a cumulative total of approximately 13.9 million shares of its Class A Common Stock for an aggregate purchase price of approximately $862.6 million and had approximately $68.4 million remaining on the $931.0 million stock repurchase expenditure limit set by the Board of Directors.