v3.25.2
Segments
 6 Months Ended
Jun. 27, 2025
Segment Reporting [Abstract]  
Segments Segments
The Company evaluates segment reporting in accordance with FASB Accounting Standards Codification Topic 280, Segment Reporting, each reporting period, including evaluating the reporting package reviewed by the CODM. The Company has concluded the Chief Executive Officer, the Chief Operating Officer and the Chief Financial Officer, as a group, represent the CODM. Segment asset information is not provided to the CODM.

The Company has three operating segments, each identified by its unique products and services. Nonalcoholic Beverages represents the vast majority of the Company’s consolidated net sales and income from operations. The additional two operating segments, which include Data Ventures, Inc. and the Red Classic subsidiaries, do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate, and, therefore, have been combined into “All Other.” The accounting policies of the Nonalcoholic Beverages segment are the same as those described in the summary of significant accounting policies presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for 2024.

The CODM uses net sales, gross profit and income from operations in the annual budgeting and forecasting process. Monthly, the CODM considers budget-to-actual variances and current year to prior year variances for these profit measures when making strategic business decisions and allocating resources to Company operations.

The Company’s segment results are as follows:

Second Quarter 2025
(in thousands)Nonalcoholic BeveragesAll Other
Eliminations(1)
Total
Net sales$1,845,061 $81,210 $(70,752)$1,855,519 
Cost of goods sold1,121,401 44,880 (53,258)1,113,023 
Gross profit723,660 36,330 (17,494)742,496 
Selling, delivery and administrative expenses:
Payroll costs(2)
$294,939 $13,151 $— $308,090 
Fleet costs(3)
23,262 6,690 — 29,952 
Depreciation and amortization expense(4)
29,126 547 — 29,673 
All other segment items(5)
112,469 7,722 (17,494)102,697 
Total selling, delivery and administrative expenses459,796 28,110 (17,494)470,412 
Income from operations$263,864 $8,220 $— $272,084 
Total depreciation and amortization expense(4)
$49,386 $5,379 $— $54,765 

Second Quarter 2024
(in thousands)Nonalcoholic BeveragesAll Other
Eliminations(1)
Total
Net sales$1,780,152 $86,598 $(70,807)$1,795,943 
Cost of goods sold1,077,535 54,485 (52,787)1,079,233 
Gross profit702,617 32,113 (18,020)716,710 
Selling, delivery and administrative expenses:
Payroll costs(2)
$283,052 $13,392 $— $296,444 
Fleet costs(3)
25,701 7,671 — 33,372 
Depreciation and amortization expense(4)
25,482 495 — 25,977 
All other segment items(5)
113,357 6,440 (18,020)101,777 
Total selling, delivery and administrative expenses447,592 27,998 (18,020)457,570 
Income from operations$255,025 $4,115 $— $259,140 
Total depreciation and amortization expense(4)
$43,723 $3,935 $— $47,658 
First Half 2025
(in thousands)Nonalcoholic BeveragesAll Other
Eliminations(1)
Total
Net sales$3,414,061 $157,198 $(135,763)$3,435,496 
Cost of goods sold2,076,336 90,173 (100,613)2,065,896 
Gross profit1,337,725 67,025 (35,150)1,369,600 
Selling, delivery and administrative expenses:
Payroll costs(2)
$560,872 $25,923 $— $586,795 
Fleet costs(3)
47,089 14,373 — 61,462 
Depreciation and amortization expense(4)
57,380 1,085 — 58,465 
All other segment items(5)
221,277 14,847 (35,150)200,974 
Total selling, delivery and administrative expenses886,618 56,228 (35,150)907,696 
Income from operations$451,107 $10,797 $— $461,904 
Total depreciation and amortization expense(4)
$97,434 $10,704 $— $108,138 

First Half 2024
(in thousands)Nonalcoholic BeveragesAll Other
Eliminations(1)
Total
Net sales$3,354,864 $174,700 $(141,995)$3,387,569 
Cost of goods sold2,023,991 111,246 (104,937)2,030,300 
Gross profit1,330,873 63,454 (37,058)1,357,269 
Selling, delivery and administrative expenses:
Payroll costs(2)
$545,749 $26,668 $— $572,417 
Fleet costs(3)
51,779 15,786 — 67,565 
Depreciation and amortization expense(4)
50,539 989 — 51,528 
All other segment items(5)
215,639 12,632 (37,058)191,213 
Total selling, delivery and administrative expenses863,706 56,075 (37,058)882,723 
Income from operations$467,167 $7,379 $— $474,546 
Total depreciation and amortization expense(4)
$86,821 $7,588 $— $94,409 

(1)The entire net sales elimination represents net sales from the All Other segment to the Nonalcoholic Beverages segment. The entire cost of goods sold and SD&A eliminations represent costs incurred by the All Other segment in the generation of net sales to the Nonalcoholic Beverages segment.
(2)Payroll costs includes compensation, incentive plans, defined contribution plans, healthcare benefits and tax-advantaged spending accounts.
(3)Fleet costs includes fleet repairs, maintenance and fuel and oil costs.
(4)Total depreciation and amortization expense is included within both cost of goods sold and SD&A expenses. For segment reporting, the difference between total depreciation and amortization expense and the portion within SD&A expenses is the amount within cost of goods sold.
(5)All other segment items includes information technology costs, stewardship, insurance and other costs incurred in the selling and delivery of the Company’s products.