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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 28, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of the Provision for Income Taxes | The components of the provision for income taxes for the fiscal year ended December 28, 2025, December 29, 2024, and December 31, 2023 are as follows (in thousands):
(dollar amounts in thousands) | Fiscal Year Ended December 28, 2025 |  | Fiscal Year Ended December 29, 2024 |  | Fiscal Year Ended December 31, 2023
Current: |  |  |  |  |
State | $ | 134 |  |  | $ | 111 |  |  | $ | 21 |
Total Current | 134 |  |  | 111 |  |  | 21 |
Deferred: |  |  |  |  |
Federal | (103) |  |  | (1,432) |  |  | 323 |
State | 15 |  |  | 20 |  |  | 35 |
Total deferred | (88) |  |  | (1,412) |  |  | 358 |
Total provision for income taxes (benefit) expense | $ | 46 |  |  | $ | (1,301) |  |  | $ | 379 |
Schedule of Reconciliation of Statutory Income Tax Rate to Effective Income Tax Rate | The effective income tax rate for the fiscal year ended December 28, 2025 differs from the statutory federal income tax rate as follows (dollars in thousands):
(dollar amounts in thousands) | December 28, 2025
U.S. federal income tax at statutory rate | $ | (28,320) |  |  | 21.0 | %
State and local income taxes, net of federal income tax effect(1) | (342) |  |  | 0.3 | %
Changes in valuation allowance | 29,020 |  |  | (21.5 | %)
Nontaxable or nondeductible items |  |  |
Officer compensation | 4,072 |  |  | (3.0 | %)
Other, net | 1,099 |  |  | (0.8 | %)
Changes in unrecognized tax benefits | 1,897 |  |  | (1.4 | %)
Other Adjustments |  |  |
Federal net operating loss true-up | (1,437) |  |  | 1.1 | %
Outside basis difference in Spyce Foods | (6,990) |  |  | 5.2 | %
Other, net | 1,047 |  |  | (0.8 | %)
Effective income tax rate | $ | 46 |  |  | — | %
(1)For the fiscal year ended December 28, 2025, t he state of Texas contributes to the majority (greater than 50%) of the tax effect in this category. As previously disclosed for the fiscal years ended December 29, 2024 and December 31, 2023, prior to the adoption of ASU 2023-09, the Company’s effective income tax rate differs from the statutory federal income tax rate as follows:
| December 29, 2024 |  | December 31, 2023
Federal statutory rate | 21.0 | % |  | 21.0 | %
Effect of: |  |  |
State taxes, net of federal benefit | 4.2 | % |  | 6.7 | %
Permanent differences | (1.9 | %) |  | (0.8 | %)
Change in valuation allowance | (19.5 | %) |  | (18.5 | %)
Nondeductible executive compensation | (20.0 | %) |  | (8.2 | %)
Stock compensation and related items | 15.8 | % |  | — | %
Other | 1.8 | % |  | (0.5 | %)
Total | 1.4 | % |  | (0.3 | %)
Schedule of Components of the Company’s Net Deferred Tax (Liabilities)/Assets | Components of the Company’s net deferred tax assets/(liabilities) consisted of the following:
(dollar amounts in thousands) | December 28, 2025 |  | December 29, 2024
Deferred tax assets: |  |  |
Net operating loss carryforward | $ | 244,898 |  |  | $ | 219,918 |
Charitable contributions | 99 |  |  | 178 |
Stock-based compensation expense | 5,611 |  |  | 5,458 |
Accrued expenses | 440 |  |  | 614 |
Deferred revenue | 1,078 |  |  | 1,331 |
Operating lease liabilities(1) | 106,738 |  |  | 99,861 |
Outside tax basis in Spyce Foods | 9,831 |  |  | — |
Other | 4,637 |  |  | 6,627 |
Total deferred tax assets | 373,332 |  |  | 333,987 |
Valuation allowance | (240,676) |  |  | (202,709) |
Total deferred tax assets, net of valuation allowance | 132,656 |  |  | 131,278 |
Deferred tax (liabilities): |  |  |
Depreciation and amortization differences | (32,015) |  |  | (39,580) |
Operating lease assets(1) | (84,122) |  |  | (77,639) |
State deferred taxes | (16,793) |  |  | (14,420) |
Total deferred tax liabilities | (132,930) |  |  | (131,639) |
Net deferred tax (liability) asset | $ | (274) |  |  | $ | (361) |
(1) Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations or the consolidated balance sheets.
Schedule of Activity Related to Gross Uncertain Tax Positions | The following table summarizes the activity related to the Company’s gross uncertain tax positions for the fiscal years ended December 28, 2025 and December 29, 2024:
(dollar amounts in thousands) | December 28, 2025 |  | December 29, 2024 |
Uncertain Tax Positions |  |  |  |
Beginning of year balance | $ | 93 |  |  | $ | 431 |  |
Increases (decreases) related to current year tax positions | 2,019 |  |  | (338) |  |
End of year balance | $ | 2,112 |  |  | $ | 93 |  |
Schedule of Cash Flow, Supplemental Disclosures | Income taxes paid (net of refunds) are as follows:
(dollar amounts in thousands) | December 28, 2025
Federal | $ | — |
State | — |
Texas | (67) |
Other States | — |
Total | $ | (67) |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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