v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 27, 2025
Income Tax Disclosure [Abstract]  
Schedule of (Loss) Income Before Income Taxes
The provision for income taxes was computed based on the following amounts of income before income taxes:
Year Ended
(in thousands)December 27, 2025December 28, 2024December 30,
2023
As RestatedAs Restated
Domestic$109,421 $49,912 $(46,052)
Foreign9,810 (24,819)4,906 
Income before income taxes$119,231 $25,093 $(41,146)
Schedule of Components of Income Tax (Benefit) Expense
The components of the income tax (benefit) expense were as follows:
Year Ended
(in thousands)December 27, 2025December 28, 2024December 30, 2023
As RestatedAs Restated
Current:
        Federal $16,473 $6,977 $4,835 
        State5,097 4,311 6,249 
        Foreign1,322 8,985 (670)
Deferred:
        Federal(35,738)18,111 (6,963)
        State2,013 2,261 1,233 
        Foreign(2,009)(16,098)952 
    Total income tax (benefit) expense$(12,842)$24,547 $5,636 
Schedule of Effective Income Tax Rate Reconciliation A reconciliation between the U.S. federal statutory tax rate and the effective tax rate reflected in the accompanying financial statements is as follows:
Year Ended
(in thousands)December 27, 2025
Federal income tax at statutory rate$25,039 21.0 %
State income taxes, net of federal tax benefits (1)
6,040 5.1 %
Foreign tax effects
Canada1,555 1.3 %
Germany
Change in tax law(4,137)(3.5)%
Other foreign jurisdictions1,290 1.1 %
Tax credits
Work opportunity tax credit(2,099)(1.8)%
Changes in valuation allowance(37,833)(31.7)%
Effect of cross-border tax laws
Dual taxed foreign earnings2,571 2.2 %
Unrealized foreign exchange(7,866)(6.6)%
Subpart f inclusion(629)(0.5)%
Non-taxable or non-deductible items
Non-deductible executive compensation3,354 2.8 %
Other non-deductible582 0.5 %
Other(709)(0.7)%
    Effective tax rate$(12,842)(10.8)%
(1)The state and local jurisdictions that make up 50% of this line item are: Florida, Louisiana, California, Georgia, Tennessee, Illinois, and Virginia.
In accordance with the guidance prior to the adoption of ASU 2023-09 for years ended December 28, 2024 and December 30, 2023, a reconciliation between the U.S. federal statutory tax rate and the effective tax rate reflected in the accompanying financial statements is as follows:
Year Ended
(in thousands)December 28, 2024December 30, 2023
As RestatedAs Restated
Federal income tax at statutory rate$5,269 21.0 %$(8,641)21.0 %
State income taxes, net of federal tax benefits 4,248 16.9 %2,027 (4.9)%
Changes in valuation allowance12,668 50.5 %5,113 (12.4)%
Taxable foreign source income295 1.2 %1,955 (4.8)%
Non-deductible compensation6,549 26.1 %1,959 (4.8)%
Foreign tax rate differential(1,947)(7.8)%76 (0.2)%
Other permanent differences(2,574)(10.3)%597 (1.4)%
Deferred tax adjustments(2,459)(9.8)%1,834 (4.5)%
Current tax adjustments2,498 10.0 %1,067 (2.6)%
Reserve for uncertain tax positions— — %(351)0.9 %
    Effective tax rate$24,547 97.8 %$5,636 (13.7)%
Schedule of Deferred Tax Assets and Liabilities
Deferred tax assets (liabilities) are comprised of the following:
(in thousands)December 27, 2025December 28, 2024
As Restated
Deferred tax asset
Accrued liabilities$2,741 $6,257 
Accounts receivable allowance5,562 6,824 
Net operating loss carryforwards58,595 21,059 
Lease liabilities134,347 329,079 
Interest expense limitation101,385 73,649 
Deferred revenue6,961 7,494 
Unrealized foreign exchange differences2,862 — 
Foreign tax credits2,508 — 
Subsidiary outside basis differences11,122 — 
Other deferred assets31,184 17,711 
Total deferred tax asset357,267 462,073 
Less valuation allowance(60,383)(78,651)
Net deferred tax asset296,884 383,422 
Deferred tax liabilities
Goodwill and intangible assets169,703 48,687 
Right-of-use assets124,608 319,486 
Fixed asset basis differences8,679 36,545 
Unrealized foreign exchange differences— 186 
Other deferred liabilities3,467 3,197 
Total deferred liabilities306,457 408,101 
Net deferred liabilities$9,573 $24,679 
Schedule of Deferred Tax Valuation Allowance
The following table presents the activity included in the deferred tax valuation allowance as follows:
(in thousands)December 27, 2025December 28, 2024December 30, 2023
As RestatedAs Restated
Balance at beginning of period$78,651 $22,606 $1,216 
Charged (credited) to income tax expense – continuing operations(36,923)12,668 5,113 
Charged to other accounts(1)
18,655 43,377 16,277 
Balance at end of period$60,383 $78,651 $22,606 
(1)Charges to other accounts include the effects of foreign currency translation and changes to valuation allowances as a result to intraperiod allocations, including income tax expenses of discontinued operations.
Schedule of Unrecognized Tax Benefits Roll Forward A reconciliation of the change in the accrual for unrecognized income tax benefits is as follows:
(in thousands)December 27, 2025December 28, 2024
Balance at beginning of period$342 $373 
Translation adjustments19 (31)
Balance at end of period$361 $342 
Schedule of Cash Flow, Supplemental Disclosures
In accordance with ASU 2023-09 cash paid for income taxes, net of refunds, and inclusive of continued and discontinued operations during the year ended December 27, 2025 was as follows:
in thousandsDecember 27, 2025
US federal$8,252 
US state and local
Texas$2,445 
Other states$3,017 
Foreign
Canada$4,161 
United Kingdom$7,685 
Other countries$(707)
Total cash paid for income taxes, net of refunds$24,853