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Derivative Instruments | 9 Months Ended
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Sep. 28, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments Commodity Price Risk The Company uses forward contracts to protect against the effects of commodity price fluctuations in the cost of ingredients of its products, of which flour, sugar, and shortening are the most significant, and the cost of gasoline used by its delivery vehicles. Management has not designated these forward contracts as hedges. As of September 28, 2025 and December 29, 2024, the total notional amount of commodity derivatives was 0.9 million and 1.5 million gallons of fuel, respectively. They are scheduled to mature between October 2025 and March 2026 and January 2025 and October 2025, respectively. As of September 28, 2025 and December 29, 2024, the Company recorded an asset of $0.2 million and a liability of less than $0.1 million, respectively, related to the fair market values of its commodity derivatives. The settlement of commodity derivative contracts is reported in the Condensed Consolidated Statements of Cash Flows as a cash flow from operating activities. Interest Rate Risk The Company uses interest rate swaps to manage its exposure to interest rate volatility from its debt arrangements. Management has designated the swap agreements as cash flow hedges and recognized the changes in the fair value of these swaps in other comprehensive income. As of September 28, 2025 and December 29, 2024, the aggregate notional amount hedged by the swap agreements was $550.0 million and $500.0 million of term loan principal, respectively. As of September 28, 2025 and December 29, 2024, the Company has recorded a liability of $8.4 million and an asset of $0.4 million, respectively, related to the fair market values of its interest rate derivatives. The cash flows associated with the interest rate swaps are reflected in operating activities in the Condensed Consolidated Statements of Cash Flows, which is consistent with the classification as operating activities of the interest payments on the term loan. The net effect of the interest rate swap arrangements is to fix the variable interest rate on the term loan under the 2023 Facility (as defined in Note 9, Long-Term Debt) up to the notional amount outstanding at the rates payable under the swap agreements plus the Applicable Rate (as defined by the 2023 Facility), through the swap maturity dates in March 2028. Foreign Currency Exchange Rate Risk The Company is exposed to foreign currency exchange rate risk primarily from its investments in consolidated subsidiaries that operate in Canada, the U.K., Ireland, Australia, New Zealand, Mexico, and Japan. In order to mitigate foreign exchange fluctuations, the Company enters into foreign exchange forward contracts. Management has not designated these forward contracts as hedges. As of September 28, 2025 and December 29, 2024, the total notional amount of foreign exchange derivatives was $72.0 million and $152.6 million, respectively. The majority matured in October 2025 and January 2025, respectively. The Company recorded an asset of $0.2 million and a liability of $0.7 million as of September 28, 2025 and December 29, 2024, respectively, related to the fair market values of its foreign exchange derivatives. Quantitative Summary of Derivative Positions and Their Effect on Results of Operations The following tables present the fair values of derivative instruments included in the Condensed Consolidated Balance Sheets as of September 28, 2025 and December 29, 2024, for derivatives not designated as hedging instruments and derivatives designated as hedging instruments, respectively. The Company only has cash flow hedges that are designated as hedging instruments.
| Derivatives Fair Value |  |
Derivatives Not Designated as Hedging Instruments | September 28, 2025 |  | December 29, 2024 |  | Balance Sheet Location
Foreign currency derivatives | $ | 237 |  |  | $ | — |  |  | Prepaid expense and other current assets
Commodity derivatives | 193 |  |  | — |  |  | Prepaid expense and other current assets
Total Assets | $ | 430 |  |  | $ | — |  |  |
Foreign currency derivatives | $ | — |  |  | $ | 749 |  |  | Accrued liabilities
Commodity derivatives | — |  |  | 6 |  |  | Accrued liabilities
Total Liabilities | $ | — |  |  | $ | 755 |  |  |
| Derivatives Fair Value |  |
Derivatives Designated as Hedging Instruments | September 28, 2025 |  | December 29, 2024 |  | Balance Sheet Location
Interest rate derivatives (current) | $ | — |  |  | $ | 112 |  |  | Prepaid expense and other current assets
Interest rate derivatives (noncurrent) | — |  |  | 250 |  |  | Other assets
Total Assets | $ | — |  |  | $ | 362 |  |  |
Interest rate derivatives (current) | $ | 3,372 |  |  | $ | — |  |  | Accrued liabilities
Interest rate derivatives (noncurrent) | 4,984 |  |  | — |  |  | Other long-term obligations and deferred credits
Total Liabilities | $ | 8,356 |  |  | $ | — |  |  |
The effect of derivative instruments in the Condensed Consolidated Statements of Operations for the quarter and three quarters ended September 28, 2025 and September 29, 2024 is as follows:
| Derivative Gain Recognized in Income for the Quarter Ended |  | Derivative Gain Recognized in Income for the Three Quarters Ended |  |
Derivatives Designated as Hedging Instruments | September 28, 2025 |  | September 29, 2024 |  | September 28, 2025 |  | September 29, 2024 |  | Location of Derivative Gain Recognized in Income
Gain on interest rate derivatives | $ | 378 |  |  | $ | 903 |  |  | $ | 1,001 |  |  | $ | 6,970 |  |  | Interest expense, net
| $ | 378 |  |  | $ | 903 |  |  | $ | 1,001 |  |  | $ | 6,970 |  |  |
| Derivative Gain/(Loss) Recognized in Income for the Quarter Ended |  | Derivative Gain Recognized in Income for the Three Quarters Ended |  |
Derivatives Not Designated as Hedging Instruments | September 28, 2025 |  | September 29, 2024 |  | September 28, 2025 |  | September 29, 2024 |  | Location of Derivative (Loss)/Gain Recognized in Income
Gain on foreign currency derivatives | $ | 1,103 |  |  | $ | 700 |  |  | $ | 986 |  |  | $ | 637 |  |  | Other non-operating (income)/expense, net
Gain/(loss) on commodity derivatives | 59 |  |  | (263) |  |  | 199 |  |  | 3 |  |  | Other non-operating (income)/expense, net
| $ | 1,162 |  |  | $ | 437 |  |  | $ | 1,185 |  |  | $ | 640 |  |  |

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