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Stock-based Compensation Plans | 9 Months Ended
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Sep. 24, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-based Compensation Plans | Stock-based Compensation Plans The Company recognized stock-based compensation expense, net of capitalized expense, as follows for the periods indicated:
| THIRTEEN WEEKS ENDED |  | THIRTY-NINE WEEKS ENDED
(dollars in thousands) | SEPTEMBER 24, 2023 |  | SEPTEMBER 25, 2022 |  | SEPTEMBER 24, 2023 |  | SEPTEMBER 25, 2022
Performance-based share units (1) | $ | 2,298 |  |  | $ | 67 |  |  | $ | 5,518 |  |  | $ | 5,526 |
Restricted stock units | 2,094 |  |  | 1,872 |  |  | 6,042 |  |  | 5,709 |
Stock options | — |  |  | 38 |  |  | 835 |  |  | 470 |
Total stock-based compensation expense, net | $ | 4,392 |  |  | $ | 1,977 |  |  | $ | 12,395 |  |  | $ | 11,705 |
____________ (1)The thirteen and thirty-nine weeks ended September 25, 2022 include a cumulative life-to-date adjustment to decrease expense for PSUs granted in fiscal year 2020 based on revised Company projections of performance criteria set forth in the award agreements. In February 2023, the Company granted performance-based share units (“PSUs”) subject to final payout modification by a Relative Total Shareholder Return (“Relative TSR”) modifier. This Relative TSR modifier can adjust the final payout outcome by 75%, 100% or 125% of the achieved performance metric, with the overall payout capped at 200% of the annual target grant. These PSUs have a three-year cliff vesting period and their fair value was estimated using the Monte Carlo simulation model. The following table presents a summary of the Company’s PSU activity:
(in thousands, except per unit data) | PERFORMANCE-BASED SHARE UNITS |  | WEIGHTED AVERAGE GRANT DATE FAIR VALUE PER UNIT |  | AGGREGATE INTRINSIC VALUE (1)
Outstanding as of December 25, 2022 | 874 |  |  | $ | 24.83 |  |  | $ | 18,323 |
Granted | 301 |  |  | $ | 29.01 |  |  |
Performance adjustment (2) | 154 |  |  | $ | 19.84 |  |  |
Vested | (470) |  |  | $ | 19.84 |  |  |
Forfeited | (32) |  |  | $ | 26.39 |  |  |
Outstanding as of September 24, 2023 | 827 |  |  | $ | 26.92 |  |  | $ | 20,101 |
Expected to vest as of September 24, 2023 (3) | 1,067 |  |  |  |  | $ | 25,928 |
________________ (1)Based on the $20.96 and $24.30 share price of the Company’s common stock on December 23, 2022 and September 22, 2023, the last trading day of the year ended December 25, 2022 and the thirty-nine weeks ended September 24, 2023, respectively. (2)Represents adjustment to 148% payout for PSUs granted during 2020. (3)Estimated number of units to be issued upon the vesting of outstanding PSU awards based on Company performance projections of performance criteria set forth in the 2021, 2022 and 2023 PSU award agreements. Assumptions used in the Monte Carlo simulation model and the grant date fair value of PSUs granted were as follows for the periods indicated:
| THIRTY-NINE WEEKS ENDED |
| SEPTEMBER 24, 2023 |  | SEPTEMBER 25, 2022 |  |  |  |
Assumptions: |  |  |  |  |  |  |
Risk-free interest rate (1) | 4.26 | % |  | 1.64 | % |  |  |  |
Dividend yield (2) | 3.47 | % |  | 2.31 | % |  |  |  |
Volatility (3) | 51.02 | % |  | 49.11 | % |  |  |  |
Grant date fair value per unit (4) | $ | 29.01 |  |  | $ | 26.10 |  |  |  |  |
________________ (1)Risk-free interest rate is the U.S. Treasury yield curve in effect as of the grant date for the performance period of the unit. (2)Dividend yield is the level of dividends expected to be paid on the Company’s common stock over the expected term. (3)Based on the historical volatility of the Company’s stock over the last seven years. (4)Represents a premium above the grant date per share value of the Company’s common stock for the Relative TSR modifier of 2.7% and 7.9% during the thirty-nine weeks ended September 24, 2023 and September 25, 2022, respectively. The following represents unrecognized stock-based compensation expense and the remaining weighted average vesting period as of September 24, 2023:
| UNRECOGNIZED COMPENSATION EXPENSE (dollars in thousands) |  | REMAINING WEIGHTED AVERAGE VESTING PERIOD (in years)
Performance-based share units | $ | 11,995 |  |  | 1.5
Restricted stock units | $ | 10,306 |  |  | 1.9

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