

Reconciliation of Changes in Goodwill
(thousands)		2025		2024
Balance at beginning of period	$	736,435	$	736,457
Adjustments to prior fiscal year acquisitions		—		(22)
Balance at end of period	$	736,435	$	736,435



Intangible Assets	March 29, 2025				March 30, 2024
		Gross		Accumulated		Gross		Accumulated
(thousands)		Carrying Amount		Amortization		Carrying Amount		Amortization
Customer lists	$	31,043	$	27,114	$	31,043	$	25,654
Trade names		16,432		12,648		16,432		11,957
Franchise agreements and reacquired rights		8,800		6,123		8,800		5,366
Other intangible assets		50		50		50		50
Total	$	56,325	$	45,935	$	56,325	$	43,027

Amortization expense was $2.9 million, $3.3 million, and $3.7 million for 2025, 2024, and 2023, respectively.



Estimated Future Amortization Expense
(thousands)		Amortization
2026	$	2,667
2027		2,322
2028		2,177
2029		1,398
2030		967

When performing the quantitative analysis for goodwill impairment testing, we base the fair value of our reporting unit on consideration of various valuation methodologies, including projecting future cash flows discounted at rates commensurate with the risks involved (“DCF”). Assumptions used in a DCF require the exercise of significant judgment, including judgment about appropriate discount rate and terminal values, growth rates, and the amount and timing of expected future cash flows. The forecasted cash flows are based on current plans and assumed growth rates for future years. The calculation of fair value is based on estimates including revenue projections, EBITDA margin projections, estimated tax rates, estimated capital expenditures, estimated working capital, guideline public company revenue and EBITDA multiples, guideline transaction revenue multiples, market participation acquisition premiums and discount rate. We believe that our assumptions are consistent with the plans and estimates used to manage the underlying businesses. The discount rate, which is intended to reflect the risks inherent in future cash flow projections, used in a DCF are based on estimates of the weighted-average cost of capital of a market participant. Such estimates are derived from our analysis of peer companies and consider the industry weighted average return on debt and equity from a market participant perspective.

We perform the annual goodwill impairment test for our single-reporting unit segment as of October 1 of each year, or more frequently if impairment indicators exist. On October 1, 2024, we performed a qualitative annual goodwill impairment analysis for our single-unit reporting segment and we determined that it was not more likely than not that the fair value of the reporting unit was below its carrying amount and therefore, no impairment was required.

During the fourth quarter of 2025, we experienced a decline in our market capitalization as a result of a decrease in our stock price. Our stock price has a history of volatility, however, given the decrease was sustained throughout the quarter, we viewed this event as a triggering event during the quarter ended March 29, 2025. Our goodwill impairment testing concluded that no impairment was required at that time, and we have undertaken operational changes, including changes in management and strategy, that we believe will lead to improvements in the performance of the business and cash flows. Our forecast of future cash flows is based on our best estimate of projected revenue and projected operating margin, based primarily on pricing, material costs, market share, industry outlook, general economic conditions and strategic actions to improve our operating margin. Based on our impairment test, we had an estimated fair value that exceeded our carrying value, including goodwill, by approximately 25%.