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Income Taxes
 6 Months Ended
Jun. 28, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

J. Income Taxes

 

The following table provides a summary of the income tax provision for the thirteen weeks and twenty-six weeks ended June 28, 2025 and June 29, 2024:

 

 

 

Thirteen weeks ended

 

Twenty-six weeks ended

 

 

June 28,
2025

 

June 29,
2024

 

June 28,
2025

 

June 29,
2024

Effective tax rate

 

28.1%

 

28.6%

 

29.2%

 

29.5%

 

The decrease in the tax rate for the thirteen and twenty-six weeks ended June 28, 2025 as compared to the thirteen and twenty-six weeks ended June 29, 2024 is primarily due to a change in the impact of non-deductible stock compensation expense.


As of both June 28, 2025 and December 28, 2024, the Company had approximately $0.5 million of unrecognized income tax benefits.

 

The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. As of June 28, 2025 and December 28, 2024, the Company had approximately $0.1 million accrued for interest and penalties recorded in other liabilities.


The Company's federal income tax returns remain subject to examination for three years. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. The Company is not currently under any income tax audits as of June 28, 2025.

 

On July 4, 2025, President Trump signed into law the legislation commonly referred to as the One Big Beautiful Bill Act (the “Act”). Under ASU 2023-09—Income Taxes (Topic 740) entities are required to recognize the effects of new income tax legislation in the interim period in which the law was enacted, which for the Company will be the thirteen weeks ending September 27, 2025. The Company is currently evaluating the impact this legislation will have on its consolidated financial statements.