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INCOME TAXES (Tables)

12 Months Ended

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, the 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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