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Common Stock and Stock-Based Compensation | 9 Months Ended
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Sep. 28, 2024
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 and upper management is summarized as follows:
|  | Shares |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term in Years |  |  | Aggregate Intrinsic Value (in thousands) |
Outstanding at December 30, 2023 |  |  | 207,810 |  |  | $ | 361.53 |  |  |  |  |  |  |
Granted |  |  | 25,635 |  |  |  | 299.57 |  |  |  |  |  |  |
Exercised |  |  | (6,164 | ) |  |  | 204.25 |  |  |  |  |  |  |
Forfeited/ Expired |  |  | (15,487 | ) |  |  | 383.46 |  |  |  |  |  |  |
Outstanding at September 28, 2024 |  |  | 211,794 |  |  | $ | 357.00 |  |  |  | 5.14 |  |  | $ | 5,004 |
Exercisable at September 28, 2024 |  |  | 128,930 |  |  | $ | 326.59 |  |  |  | 4.10 |  |  | $ | 4,756 |
Vested and expected to vest at September 28, 2024 |  |  | 191,971 |  |  | $ | 360.56 |  |  |  | 5.01 |  |  | $ | 4,965 |
Of the total options outstanding at September 28, 2024, 28,033 shares were performance-based options for which the performance criteria had yet to be achieved. On April 1, 2024, the Company granted options to purchase an aggregate of 21,205 shares of the Company’s Class A Common Stock to the Company’s Chief Executive Officer. These options have a fair value and exercise price per share of $141.48 and $304.42, respectively. On May 7, 2024, the Company granted options to purchase an aggregate of 2,840 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 and exercise price per share of $114.47 and $268.20, respectively. On July 29, 2024, the Company granted options to purchase an aggregate of 1,590 shares of the Company’s Class A Common Stock to the Company’s two new non-employee Directors. All of the options vested immediately on the date of the grant. These options have a fair value and exercise price per share of $143.23 and $290.91, respectively. Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows:
|  | 2024 |
Expected Volatility |  |  | 40.0 | %
Risk-free interest rate |  |  | 4.2 | %
Expected Dividends |  |  | 0.0 | %
Exercise factor |  |  | 2.1 |
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 units:
|  | Number of Shares |  |  | Weighted Average Fair Value |
Non-vested at December 30, 2023 |  |  | 114,797 |  |  | $ | 373.56 |
Granted |  |  | 86,601 |  |  |  | 290.19 |
Vested |  |  | (32,823 | ) |  |  | 381.95 |
Forfeited |  |  | (4,212 | ) |  |  | 320.93 |
Non-vested at September 28, 2024 |  |  | 164,363 |  |  | $ | 329.30 |
Of the total non-vested shares at September 28, 2024, 45,375 shares were performance-based shares for which the performance criteria had yet to be achieved. On March 1, 2024, the Company granted a combined 64,708 shares of restricted stock units to certain officers, senior managers and key employees. Of the restricted stock units granted, 8,384 had performance-based vesting criteria with potential achievement of 0% to 200% of the grant total and a three-year service period. Additionally, 20,000 of the restricted stock units granted had performance based vesting criteria with potential vesting over a seven year service period. The remainder of restricted stock units granted on March 1, 2024 vest ratably over service periods of four years. Additionally on March 1, 2024, employees elected to purchase a combined 12,007 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 $308.14 and $186.77 per share, respectively. On April 1, 2024, the Company granted a combined 6,570 shares of restricted stock units to the Chief Executive Officer, of which all shares vest in 3 years dependent on meeting performance criteria as well as continued employment with the company. The fair value of the restricted stock units was $304.42 per share, of which all shares were performance-based shares. On April 1, 2024, the Company granted a combined 1,069 shares of restricted stock units to a member of senior management, of which all shares vest ratably over service periods of up to four years. The fair value of the restricted stock units was $304.42 per share. On May 7, 2024, the Company granted a combined 1,215 shares of restricted stock units to the Company’s non-employee Directors, of which all shares vest one year from the grant date. The fair value of the restricted stock units was $268.20 per share. On July 29, 2024, the Company granted a combined 782 shares of restricted stock units to the Company’s two new non-employee Directors, of which all shares vest one year from the grant date. The fair value of the restricted stock units was $290.91 per share. On August 1, 2024, the Company granted a combined 250 shares of restricted stock units to a member of management, of which all shares vest ratably over service periods of up to four years. The fair value of the restricted stock units was $280.21 per share. 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 28, 2024 |  |  | September 30, 2023 |  |  | September 28, 2024 |  |  | September 30, 2023 |
|  | (in thousands) |  |  | (in thousands) |
Amounts included in advertising, promotional and selling expenses |  | $ | 1,310 |  |  | $ | 1,370 |  |  | $ | 5,241 |  |  | $ | 4,952 |
Amounts included in general and administrative expenses |  | $ | 2,368 |  |  | $ | 2,677 |  |  | $ | 9,445 |  |  | $ | 7,361 |
Total stock-based compensation expense |  | $ | 3,678 |  |  | $ | 4,047 |  |  | $ | 14,686 |  |  | $ | 12,313 |
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 the Company's Class A Stock. On October 2, 2024, the Board of Directors authorized an increase in the aggregate expenditure limit for the Company’s stock repurchase program by $400.0 million, increasing the limit from $1.2 billion to $1.6 billion. 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 and thirty-nine weeks ended September 28, 2024, the Company repurchased and subsequently retired 226,197 and 595,732 shares of its Class A Common Stock, respectively, for an aggregate purchase price of $63 million and $176 million, respectively. As of September 28, 2024, the Company had repurchased a cumulative total of approximately 14.7 millio n shares of its Class A Common Stock for an aggregate purchase price of approximately $1.1 billion and had approximately $90.5 million remaining on the $1.2 billion stock repurchase expenditure limit set by the Board of Directors.

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