v3.26.1
Segments
 3 Months Ended
Apr. 03, 2026
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 Chief Operation Decision Maker (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 two 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 accounting policies of the Nonalcoholic Beverages operating 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 2025. The additional operating segment, which includes the Red Classic subsidiaries, does not meet the quantitative threshold for separate reporting and, therefore, has been reported as “All Other.”

Previously, the Company had three operating segments, Nonalcoholic Beverages and two additional operating segments, which included Data Ventures, Inc. and the Red Classic subsidiaries. Since the two additional operating segments did not meet the quantitative thresholds for separate reporting, either individually or in the aggregate, they were combined into “All Other.” As of December 31, 2025, the Data Ventures, Inc. operating segment was liquidated, dissolved and merged into the Nonalcoholic
Beverages operating segment. For reporting purposes, all prior periods presented have been retroactively adjusted to reflect the dissolution of the Data Ventures, Inc. operating segment within the All Other operating segment and the merger of the Data Ventures, Inc. operating segment with the Nonalcoholic Beverages operating segment.

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:

First Quarter 2026
(in thousands)Nonalcoholic BeveragesAll Other
Eliminations(1)
Total
Net sales$1,833,819 $89,480 $(76,631)$1,846,668 
Cost of goods sold1,124,213 53,453 (58,078)1,119,588 
Gross profit709,606 36,027 (18,553)727,080 
Selling, delivery and administrative expenses:
Payroll costs(2)
$312,904 $13,830 $— $326,734 
Fleet costs(3)
14,633 8,752 — 23,385 
Depreciation and amortization expense(4)
30,534 578 — 31,112 
All other segment items(5)
120,157 6,721 (18,553)108,325 
Total selling, delivery and administrative expenses478,228 29,881 (18,553)489,556 
Income from operations$231,378 $6,146 $— $237,524 
Total depreciation and amortization expense(4)
$51,590 $5,312 $— $56,902 

First Quarter 2025
(in thousands)Nonalcoholic BeveragesAll Other
Eliminations(1)
Total
Net sales$1,569,097 $75,110 $(64,230)$1,579,977 
Cost of goods sold954,935 45,293 (47,355)952,873 
Gross profit614,162 29,817 (16,875)627,104 
Selling, delivery and administrative expenses:
Payroll costs(2)
$266,679 $12,026 $— $278,705 
Fleet costs(3)
23,827 7,683 — 31,510 
Depreciation and amortization expense(4)
28,256 536 — 28,792 
All other segment items(5)
108,157 6,995 (16,875)98,277 
Total selling, delivery and administrative expenses426,919 27,240 (16,875)437,284 
Income from operations$187,243 $2,577 $— $189,820 
Total depreciation and amortization expense(4)
$48,050 $5,323 $— $53,373 

(1)The entire net sales elimination represents net sales from the All Other operating segment to the Nonalcoholic Beverages operating segment. The entire cost of goods sold and SD&A eliminations represent costs incurred by the All Other operating segment in the generation of net sales to the Nonalcoholic Beverages operating 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.