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Derivative Instruments
 12 Months Ended
Dec. 28, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company is exposed to certain risks relating to its ongoing business operations. Management evaluates various strategies in managing its exposure to market-based risks, such as entering into transactions to manage its exposure to commodity price fluctuation, floating interest rate volatility, and foreign currency exchange rate fluctuations. The Company does not hold or issue derivative instruments for trading purposes. The Company is exposed to credit-related losses in the event of non-performance by the counterparties to its derivative instruments. The Company mitigates this risk of nonperformance by dealing with highly rated counterparties.
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 fuel used by its delivery vehicles. Management has not designated these forward contracts as hedges. As of December 28, 2025 and December 29, 2024 the total notional amount of commodity derivatives was 0.6 million and 1.5 million gallons of fuel, respectively. They were scheduled to mature between January 2026 and March 2026, and January 2025 and October 2025, respectively. As of December 28, 2025 and December 29, 2024, the Company recorded an asset of less than $0.1 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 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 December 28, 2025 and December 29, 2024, the Company 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 Consolidated Statements of Cash Flows, which is consistent with the classification as operating activities of the interest payments on the term loan.
In the second quarter of fiscal 2024, existing interest rate swap agreements (the “prior agreements”) with an aggregate notional amount of $505.0 million matured. Since then, the Company entered into new interest rate swap agreements (the “new agreements”) with an aggregate notional amount of $550.0 million as of December 28, 2025. The new agreements are substantially similar to the prior agreements with a higher notional amount and new rates on the fixed component of the swaps (weighted average of approximately of 4.0%). The new agreements have a benchmark rate on the floating component of the swaps of one-month SOFR and are scheduled to mature in March 2028.
The net effect of the interest rate swap arrangements will be to fix the variable interest rate on the term loan under the 2023 Facility (as defined in Note 9, Long-Term Debt, to the audited Consolidated Financial Statements) 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.
All of the interest rate swap derivatives have certain early termination triggers caused by an event of default or termination. The events of default include failure to make payments when due, failure to give notice of a termination event, failure to comply with or perform obligations under the agreements, bankruptcy or insolvency, and defaults under other agreements (cross-default provisions).
In the first quarter of fiscal 2023, the Company cancelled certain interest rate swap agreements with an aggregate notional amount of $265.0 million, collecting $7.7 million in cash proceeds, and entered into new agreements with the same counterparties. The cash flows are reflected in operating activities in the Consolidated Statements of Cash Flows.
Foreign Currency Exchange Rate Risk
The Company is exposed to foreign currency 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 December 28, 2025 and December 29, 2024, the total notional amount of foreign exchange derivatives was $65.6 million and $152.6 million, respectively. The majority matured in January 2026 and January 2025, respectively. As of December 28, 2025 and December 29, 2024, the Company has recorded liabilities of less than $0.1 million and $0.7 million, 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 Consolidated Balance Sheets as of December 28, 2025 and December 29, 2024 for derivatives not designated as hedging instruments and derivatives designed 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 InstrumentsDecember 28, 2025December 29, 2024Balance Sheet Location
Commodity derivatives$33 $— Prepaid expense and other current assets
Total Assets$33 $— 
Foreign currency derivatives$12 $749 Accrued liabilities
Commodity derivatives— 6 Accrued liabilities
Total Liabilities$12 $755 
Derivatives Fair Value
Derivatives Designated as Hedging InstrumentsDecember 28, 2025December 29, 2024Balance Sheet Location
Interest rate derivatives (current)$— $112 Prepaid expense and other current assets
Interest rate derivatives (noncurrent)— 250 Other assets
Total Assets$— $362 
Interest rate derivatives (current)$3,741 $— Accrued liabilities
Interest rate derivatives (noncurrent)4,645 — Other long-term obligations and deferred credits
Total Liabilities$8,386 $— 
The effect of derivative instruments on the Consolidated Statements of Operations for the fiscal years ended December 28, 2025, December 29, 2024, and December 31, 2023 is as follows:
Derivative Gain/(Loss) Recognized in Income in Fiscal Years Ended
Derivatives Designated as Hedging InstrumentsDecember 28, 2025December 29, 2024December 31, 2023Location of Derivative Gain Recognized in Income
Gain on interest rate derivatives$1,064 $7,663 $8,624 Interest expense, net
$1,064 $7,663 $8,624 
Derivative (Loss)/Gain Recognized in Income in Fiscal Years Ended
Derivatives Not Designated as Hedging InstrumentsDecember 28, 2025December 29, 2024December 31, 2023Location of Derivative Gain/(Loss) Recognized in Income
Gain/(loss) on foreign currency derivatives$737 $(404)$(175)Other non-operating (income)/expense, net
Gain/(loss) on commodity derivatives39 107 (627)Other non-operating (income)/expense, net
$776 $(297)$(802)