The Company uses interest rate swaps to manage its interest rate exposure on its Term Loan B and its Real Estate Term Loan. The interest rate swaps are recorded in the Company’s Consolidated Balance Sheets at fair value. See Note 9. Term Debt, Revolving Credit Facility, and Other Notes Payable. The interest rate swaps are designated as cash flow hedges under ASC 815-20 and are included in the Company’s Consolidated Balance Sheets at fair value. Changes in the fair value of the effective portion of the hedges are recorded in Accumulated Other Comprehensive Income and reclassified into Interest Expense in the same period the hedged items affect earnings. Any portion of the derivative that is no longer designated as a hedge is accounted for at fair value with mark-to-market adjustments recorded immediately in earnings. Cash flows associated with derivatives are reported in Net cash provided by operating activities in the Consolidated Statements of Cash Flows.

The Company has outstanding purchase commitments for specific quantities at fixed prices for certain key ingredients to economically hedge commodity input prices. These purchase commitments totaled $126.5 million as of March 29, 2026 and $66.9 million as of December 28, 2025. The Company accrues for losses on firm purchase commitments in a loss position at the end of each reporting period to the extent that there is an active observable market. The Company has recorded purchase commitment gains totaling $7.6 million and $0.6 million for the thirteen weeks ended March 29, 2026 and March 30, 2025, respectively.

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of March 29, 2026:


(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	73.7	$	—	$	—	$	73.7
Commodity contracts	—		3.0		—		3.0
Interest rate swaps	—		5.2		—		5.2
Total assets	$	73.7	$	8.2	$	—	$	81.9
Liabilities:
Commodity contracts	$	—	$	0.3	$	—	$	0.3
Interest rate swaps	—		0.2		—		0.2

Debt	—		842.3		—		842.3
Total liabilities	$	—	$	842.8	$	—	$	842.8


(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	120.4	$	—	$	—	$	120.4

Interest rate swaps	—		0.8		—		0.8
Total assets	$	120.4	$	0.8	$	—	$	121.2
Liabilities:
Commodity contracts	$	—	$	1.2	$	—	$	1.2
Interest rate swaps	—		1.1		—		1.1

Debt	—		849.6		—		849.6
Total liabilities	$	—	$	851.9	$	—	$	851.9