STOCK - BASED COMPENSATION

12 Months Ended

Dec. 29, 2024

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

2021 Equity Incentive Plan

During the fiscal year ended December 26, 2021, the Company adopted the 2021 Equity Incentive Plan (the “2021 Plan”), which allows for issuance of stock options (including incentive stock options and non-qualified stock options), restricted stock units (“RSUs”), including performance-based awards, and other types of awards. The maximum number of shares of common stock that may be issued under the 2021 Plan is 35,166,753, which is the sum of (i) 11,500,000 new shares, plus (ii) an additional number of shares consisting of (a) shares that were available for the issuance of awards under any prior equity incentive plans in place (which shall include the Prior Stock Plans (as defined below) prior to the time the Company’s 2021 Plan became effective and (b) any shares of the Company’s common stock subject to outstanding stock options or other stock awards granted under the Prior Stock Plans that on or after the Company’s 2021 Plan became effective, terminate or expire prior to the exercise or settlement; are not issued because the award is settled in cash; are forfeited because of the failure to vest; or are reacquired or withheld (or not issued) to satisfy a tax withholding obligation or the purchase or exercise price. The total number of shares available for grant as of December 29, 2024, was

8,516,216. Options granted generally have vesting terms between twelve months and four years and have a contractual life of 10 years.

The Company issues shares of Class A common stock upon the vesting and settlement of RSUs and upon the exercises of stock options under the 2021 Plan. The 2021 Plan is administered by the board of directors, or a duly authorized committee of the Company’s board of directors. Options granted to members of the Company’s board of directors generally vest immediately.

All stock options, RSUs and performance based restricted stock awards (“PSUs”) granted prior to the 2021 Plan were rolled into the 2021 Plan. Awards granted prior to the adoption of the 2021 Plan had similar terms with each award vesting between one and 4 year period, and have a contractual life of 10 years.

Spyce Acquisition

In conjunction with the Spyce acquisition, the Company issued shares of restricted stock that were issued to certain Spyce employees. As the value is fixed, the grant date fair value of these shares represents the fair value of the shares on the acquisition date. For the fiscal years ended December 31, 2023 and December 25, 2022, the Company recognized stock-based compensation expense of $2.4 million and $3.4 million, respectively, related to the vested portion of such shares.

2021 Employee Stock Purchase Plan

In conjunction with the IPO, the Company’s board of directors adopted, and the Company’s stockholders approved the Company’s 2021 employee stock purchase plan (the “ESPP”). The Company’s ESPP authorizes the issuance of 3,000,000 shares of common stock under purchase rights granted to the Company’s employees or to the employees of any of its designated affiliates. The number of shares of the Company’s common stock reserved for issuance will automatically increase on January 1 of each year for a period of 10 years, beginning January 1, 2023, by the lesser of (i) 1% of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year; and (ii) 4,300,000 shares, except before the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). On January 1, 2023, the ESPP authorized shares increased by 1,111,331 shares to 4,111,331 in accordance with the above.

As of December 29, 2024, there had been no offering period or purchase period under the ESPP, and no such period will begin unless and until determined by the administrator.

Stock Options

The Company grants stock options to its employees, as well as nonemployees (including directors and others who provide substantial services to the Company) under the 2021 Plan.

The following table summarizes the Company’s stock option activity for the fiscal years ended December 29, 2024 and December 31, 2023, including options assumed pursuant to the Spyce Plan, as described above:


(dollar amounts in thousands except share and per share amounts)	Number of Shares	Weighted- Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
Balance—December 25, 2022	13,813,922	$	7.86	6.63	$	34,454
Options granted	1,588,094	8.66
Options exercised	(929,963)	5.79
Options forfeited	(1,081,299)	11.25
Options expired	(171,366)	11.71
Balance—December 31, 2023	13,219,388	$	7.77	5.97	$	53,758

Options granted	2,367,980	19.81
Options exercised	(1,990,576)	6.42
Options forfeited	(374,453)	15.71
Options expired	(52,470)	17.65
Balance—December 29, 2024	13,169,869	9.88		6.04	$	297,037
Exercisable—December 29, 2024	10,057,794	7.77		5.18	$	247,434
Vested and expected to vest—December 29, 2024	13,169,869	9.88		6.04	$	297,037

The total intrinsic value of options exercised in fiscal years 2024, 2023 and 2022 was $50.8 million, $7.5 million and $13.6 million, respectively. The weighted-average fair value of options granted in fiscal years 2024, 2023 and 2022 was $9.72, $9.07, and $8.02, respectively, all of which were granted to employees.

The fair value of each option granted has been estimated as of the date of the grant using the Black-Scholes option-pricing model with the assumptions during the fiscal years ended December 29, 2024, December 31, 2023 and December 25, 2022 included in the table below. The Company has elected to account for forfeitures as they occur.


Input	Fiscal Year Ended December 29, 2024	Fiscal Year Ended December 31, 2023		Fiscal Year Ended December 25, 2022
Risk-free interest rate	3.43%-4.69%	3.50%-4.90%		1.59%-3.95%
Expected term	5.79-6.21 years	5.81-6.22 years		5.08-6.60 years
Expected Volatility	45.38%	45.11	%	44.25	%
Dividend yield	0%	0	%	0	%

Fair Value of Common Stock—The Company’s board of directors determines the fair market value of its common stock based on its closing price as reported on close of business the day immediately preceding the date of grant on the New York Stock Exchange.

Risk-Free Interest Rate—The yield on actively traded non-inflation indexed U.S. Treasury notes with the same maturity as the expected term of the underlying options was used as the average risk-free interest rate.

Expected Term—The expected term of options granted to was determined based on management’s expectations of the options granted, which are expected to remain outstanding. The Company calculated the expected term using the simplified method for “plain vanilla” stock option awards.

Expected Volatility—Given the timing of the IPO occurring in 2021, there is not sufficient share price history that extends through the expected term of the options, as such, the Company has elected to use an approximation based on the volatility of other comparable public companies, which compete directly with the Company, over the expected term of the options.

Dividend Yield—The Company has not issued regular dividends on common shares in the past nor does the Company expect to issue dividends in the foreseeable future. As such, the dividend yield has been estimated to be zero.

As of December 29, 2024, there was $21.6 million in unrecognized compensation expense related to unvested stock options arrangements and is expected to be recognized over a weighted average period 2.08 years.

Restricted Stock Units and Performance Stock Units

Restricted stock units

During the fiscal years ended December 29, 2024 and December 31, 2023, the Company issued 535,789 and 428,428 RSUs, respectively, to certain employees, which vest upon the satisfaction of certain service periods. The fair value of these RSUs was determined based on the Company’s closing stock price the business day immediately preceding the date of grant. The service period of these RSUs is satisfied over a range of 0 to 4 years. The RSUs are excluded from common stock issued and outstanding until the satisfaction of these vesting conditions and are not considered a participating security for purposes of calculating net loss per share attributable to common stockholders.

The following table summarizes the Company’s RSU activity for fiscal year ended December 29, 2024:


(dollar amounts in thousands except per share amounts)	Number of Shares	Weighted- Average Grant Date Fair Value








Balance—December. 31, 2023	951,517	$	17.41
Granted	535,789	20.81
Released	(479,078)	20.39
Forfeited, cancelled, or expired	(98,204)	18.70
Balance—December. 29, 2024	910,024	$	17.72

The weighted-average grant date fair value per RSU granted during the fiscal years ended December 31, 2023 and December 25, 2022 was $9.07 and $19.45, respectively. As of December 29, 2024, unrecognized compensation expense related to RSUs was $9.1 million and is expected to be recognized over a weighted average period of 1.67 years. The fair value of shares earned as of the vesting date during the fiscal years ended December 29, 2024, December 31, 2023 and December 25, 2022 was $13.7 million, $6.3 million, and $15.3 million, respectively.

Performance stock units

In October 2021, the Company granted 2,100,000 PSUs to each founder (the “founder PSUs”) for a total of 6,300,000 PSUs, under the 2019 Equity Incentive Plan. The founder PSUs vest upon the satisfaction of a service condition and the achievement of certain stock price goals. The founder PSUs are excluded from common stock issued and outstanding until the satisfaction of these vesting conditions and are not considered a participating security for purposes of calculating net loss per share attributable to common stockholders.

The founder PSUs are eligible to vest beginning on the one-year anniversary of the effective date of the registration statement of the Company’s IPO, and expire ten years after the IPO date. The founder PSUs are comprised of seven tranches that are eligible to vest based on the achievement of stock price goals, ranging from $30.0 - $75.0 per share, measured over a consecutive 90-calendar day trailing trading period during the performance period as set forth below.


	Company Stock Price Target		Number of PSUs Eligible to Vest
1	$	30.00	900,000
2	$	37.50	900,000
3	$	45.00	900,000
4	$	52.50	900,000
5	$	60.00	900,000
6	$	67.50	900,000
7	$	75.00	900,000

The Company estimated the grant date fair value of the founder PSUs based on multiple stock price paths developed through the use of a Monte Carlo simulation model within a hybrid framework with two possible scenarios (IPO and Change of Control). A Monte Carlo simulation model also calculates a derived service period for each of the seven vesting tranches, which is the measure of the expected time to achieve each Company stock price target, as described above. A Monte Carlo simulation model requires the use of various assumptions, including the underlying stock price, volatility, expiration term, and the risk-free interest rate as of the valuation date, corresponding to the length of time remaining in the performance period, and expected dividend yield. The derived service period calculation also requires the cost of equity assumption to be used in the Monte Carlo simulation model. Term and volatility are typically the primary drivers of this valuation. An expiration term of 10 years (as defined in the grant agreements) was considered in the IPO scenario while an expiration term of 3 years was considered in the Change of Control scenario. A volatility of 52.0 percent was considered within the IPO scenario consistent with the maximum term to expiration; whereas, a common stock volatility of 90.5 percent was considered in the Change of Control scenario, which is based on the ASC 718 analysis. The weighted-average grant date fair value of the founders PSUs was $16.35 per share. The Company will recognize total stock-based compensation expense of $103.0 million over the derived service period of each tranche, which is between 1.7 to 4.4 years, using the accelerated attribution method as long as the founders satisfy the service-based vesting condition. As of December 29, 2024 unrecognized compensation expense related to PSUs was $9.8 million and is expected to be recognized over a weighted average period of 0.72 years.

During the fiscal year ended December 29, 2024, the service condition and stock price goal for the first two tranches were met, resulting in 600,000 PSUs vesting and being released for each founder during that period (for a total of 1,800,000 PSUs vesting). The fair value of the total shares released as of the vesting date during the fiscal year ended December 29, 2024 was $67.8 million, solely related to the founder PSUs, and the Company incurred $1.1 million in payroll taxes associated with the transactions which are included in general and administrative expenses within the accompanying consolidated statement of operations.

Subsequent to the Company’s IPO, the Company issued 321,428 PSUs to the Spyce founders (“Spyce PSUs”) based on three separate performance-based milestone targets. The Company will recognize stock compensation expense related to each performance-based milestone target as it becomes probable of occurring, based on the stock price on the date of grant. During the fiscal year ended December 29, 2024, the Company modified the number of shares underlying these grants and the vesting terms to remove the performance-based component, resulting in the total number of shares decreasing to 85,395, all of which are scheduled to vest on March 15, 2025. The expense related to these RSUs is included within the RSU section above.

During the fiscal years ended December 29, 2024 and December 31, 2023 the Company did not issue any PSUs. As described above, the Company granted a total of 6,621,248 PSUs during the fiscal year ended December 26, 2021 with a weighted average grant date fair value of $15.56. There were no grants, forfeitures, cancellations, or expirations since the grant date, and the founder PSUs released during the fiscal year ended December 29, 2024 are described above and summarized below.

The following table summarizes the Company’s PSU activity for the fiscal year ended December 29, 2024:


(dollar amounts in thousands except per share amounts)	Number of Shares	Weighted- Average Grant Date Fair Value








Balance—December. 31, 2023	6,621,428	$	15.56
Granted	—	—
Released	(1,800,000)	18.19
Forfeited, cancelled, or expired	(321,428)	—
Balance—December. 29, 2024	4,500,000	$	15.62

A summary of stock-based compensation expense recognized fiscal years ended December 29, 2024, December 31, 2023 and December 25, 2022 is as follows:


(dollar amounts in thousands)	Fiscal Year Ended December 29, 2024	Fiscal Year Ended December 31, 2023	Fiscal Year Ended December 25, 2022
Stock-options	$11,773	$8,878	$10,505
Restricted stock units	8,546	8,557	32,037
Performance stock units	18,705	32,097	36,194
Total stock-based compensation	$39,024	$49,532	$78,736