v3.25.4
Segment Reporting
12 Months Ended
Dec. 27, 2025
Segment Reporting  
Segment Reporting

Note 8Segment Reporting

The Company manages the business activities on a consolidated basis and has one operating segment: retail. The Company derives all its revenue from sales within Pennsylvania and surrounding states. The Company’s retail segment derives revenues from customers through the retail sale of a range of products including grocery, pharmacy and fuel from company owned supermarkets. See Note 7 for the disaggregation of revenue by product category. The accounting policies of the Company’s single segment are the same as those described in the Company’s Significant Accounting Policies.

Note 8Segment Reporting (continued)

The Company’s chief operating decision maker is the Chief Operating Officer. The chief operating decision maker assesses performance for the segment and decides how to allocate resources based on operating income and net income that is also reported on the accompanying Consolidated Statements of Income. The measure of segment assets used to assess performance and allocate resources is reported on the Consolidated Balance Sheets as total assets. The chief operating decision maker uses operating income and net income to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment, such as for acquisitions. Operating income and net income are used to monitor budget versus actual results. The chief operating decision maker also uses operating income and net income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment.

The following table presents the retail segment’s revenue, significant segment expenses, and segment operating and net income for the years ended December 27, 2025, December 28, 2024, and December 30, 2023:

2024

2023

(amounts in thousands)

  ​ ​ ​

2025

  ​ ​ ​

(As restated)

  ​ ​ ​

(As restated)

Net sales

$

4,939,373

$

4,773,880

$

4,696,950

Other revenue (1)

18,336

17,850

17,623

Total revenue

4,957,709

4,791,730

4,714,573

Less:

Cost of sales - stores

3,629,431

3,508,283

3,491,616

Labor - stores

445,036

425,333

410,681

Depreciation and amortization - stores (2)

97,012

90,890

88,508

Occupancy - stores

88,094

85,872

84,345

All other expense - stores (3)

328,644

312,690

276,197

Administration, manufacturing, and property management expense

135,522

131,114

122,458

Distribution and transportation

120,317

111,161

107,626

Income from operations

113,653

126,386

133,141

Other income (expense) (4)

(4,403)

(3,409)

(3,652)

Investment income (loss) and interest expense

14,697

21,970

13,162

Provision for income taxes

30,256

38,923

41,797

Net income

$

93,691

$

106,024

$

100,854

(1)Other revenue represents commission income as described in Note 1.
(2)Segment depreciation and amortization expense, for stores and non-stores, for the years ended December 27, 2025, December 28, 2024, and December 30, 2023, was $125 million, $114 million and $108 million, respectively. Segment additions of long-lived assets for the years ended December 27, 2025, December 28, 2024, and December 30, 2023, was $205 million, $169 million and $104 million, respectively.
(3)All other expense consists of all other store controllable and fixed expenses, such as financial services fees, utilities, and outside services.
(4)Other income (expenses) consists of gains (losses) on SERP investments.