Stock-Based Compensation

6 Months Ended

Jul. 12, 2025

Share-Based Payment Arrangement [Abstract]

Note 13 – Stock-Based Compensation

Stock-Based Employee Awards

The Company sponsors shareholder-approved stock incentive plans that provide for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance share units, dividend equivalent rights, and other stock-based and stock-related awards to directors, employees, or contractors of the Company, as determined by the Compensation Committee of the Board of Directors.

Stock-based compensation expense recognized and included in "Selling, general and administrative expenses" in the condensed consolidated statements of earnings, and related tax impacts were as follows:


	12 Weeks Ended						28 Weeks Ended
(In thousands)	July 12, 2025			July 13, 2024			July 12, 2025			July 13, 2024
Restricted stock expense	$	471		$	1,179		$	1,583		$	3,261
Restricted stock unit expense		1,630			874			4,977			3,664
Performance share unit expense (benefit)		1,024			(197	)		2,210			(1,349	)
Income tax benefit		(850	)		(517	)		(2,301	)		(1,442	)
Stock-based compensation expense, net of tax	$	2,275		$	1,339		$	6,469		$	4,134

The following table summarizes activity in the stock incentive plans for the 28 weeks ended July 12, 2025:


				Weighted					Weighted					Weighted
	Restricted			Average		Restricted			Average		Performance			Average
	Stock			Grant-Date		Stock			Grant-Date		Share			Grant-Date
	Awards			Fair Value		Units			Fair Value		Units			Fair Value
Outstanding at December 28, 2024		325,228		$	27.32		563,471		$	20.27		678,565		$	23.18
Granted		—			—		637,132			19.57		490,887			19.52
Vested		(210,378	)		27.52		(213,464	)		20.32		—			—
Cancelled/Forfeited		(15,023	)		27.00		(130,143	)		19.74		(134,604	)		21.37
Outstanding at July 12, 2025		99,827		$	26.93		856,996		$	19.82		1,034,848		$	21.68

The following table summarizes the unrecognized compensation cost and weighted average recognition period for awards granted under the Company's stock incentive plans as of July 12, 2025:


			Weighted
	Unrecognized		Average
	Compensation		Recognition
	Cost		Period
	(In thousands)		(in years)
Restricted stock awards	$	1,190		0.6
Restricted stock units		11,304		1.9
Performance share units		11,497		2.0
Total	$	23,991

Stock Warrant

On October 7, 2020, in connection with its entry into a commercial agreement with Amazon.com, Inc. (“Amazon”), the Company issued Amazon.com NV Investment Holdings LLC, a subsidiary of Amazon, a warrant to acquire up to an aggregate of 5,437,272 shares of the Company’s common stock (the “Warrant”), subject to certain vesting conditions. Warrant shares totaling 1,087,455 shares vested upon the signing of the commercial agreement and had a grant date fair value of $5.51 per share. Warrant shares totaling up to 4,349,817 shares may vest in connection with conditions defined by the terms of the Warrant, as Amazon makes payments to the Company in connection with the commercial supply agreement, in increments of $200 million, and had a grant date fair value of $5.33 per share. Upon vesting, shares may be acquired at an exercise price of $17.7257. The Warrant contains customary anti-dilution, down-round and change-in-control provisions. The right to purchase shares in connection with the Warrant expires on October 7, 2027. Non-cash share-based payment expense associated with the Warrant is recognized as vesting conditions are achieved, based on the grant date fair value of the Warrant.

Warrant expense recognized as a reduction of "Net sales" in the condensed consolidated statements of earnings, and related tax benefits were as follows:


	12 Weeks Ended						28 Weeks Ended
(In thousands)	July 12, 2025			July 13, 2024			July 12, 2025			July 13, 2024
Warrant expense	$	110		$	190		$	298		$	516
Income tax benefit		(7	)		(13	)		(33	)		(55	)
Warrant expense, net of tax	$	103		$	177		$	265		$	461

The following table summarizes stock warrant activity for the 28 weeks ended July 12, 2025:


	Warrant
Outstanding and nonvested at December 28, 2024		3,044,865
Vested		(108,746	)
Outstanding and nonvested at July 12, 2025		2,936,119

As of July 12, 2025, total unrecognized cost related to nonvested warrant shares was $15.6 million, which may be expensed as vesting conditions are satisfied over the remaining term of the agreement, or 2.2 years. Warrants representing 2,501,153 shares are vested and exercisable. As of July 12, 2025, nonvested warrant shares had an intrinsic value of $26.0 million, and vested warrant shares had an intrinsic value of $22.1 million.