v3.26.1
Leases
 6 Months Ended
Jun. 27, 2026
Leases [Abstract]  
Finance Leases
Lessee
The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both 1) the right to obtain substantially all of the economic benefits from the use of the asset and 2) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2042. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or
terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees, nor material restrictive covenants.
The components of operating and finance lease costs for the thirteen and twenty-six weeks ended June 27, 2026 and thirteen and twenty-six weeks ended June 28, 2025 were as follows:
Thirteen Weeks Ended
June 27, 2026		Thirteen Weeks Ended
June 28, 2025		Twenty-six Weeks Ended
June 27, 2026		Twenty-six Weeks Ended
June 28, 2025
Operating lease costs$7,061 $5,706 $13,353 $11,354 
Short term lease costs724 609 1,999 1,322 
Variable lease costs489 667 596 1,269 
Finance lease costs:
Amortization of right of use assets1,695 1,408 3,195 2,680 
Interest on lease liabilities316 260 597 483 
Rent expense is recognized on a straight-line basis over the expected lease term. Rent expense totaled $8,275 and $15,949 in the thirteen and twenty-six weeks ended June 27, 2026, respectively, and $6,982 and $13,945 in the thirteen and twenty-six weeks ended June 28, 2025, respectively. Rent expense includes operating lease costs as well as expenses for non-lease components such as common area maintenance, real estate taxes, real estate insurance, variable costs related to our leased vehicles, and short-term rental expenses.
The implicit rate is not determinable in most of the Company’s leases, as such management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.
The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of June 27, 2026 and December 27, 2025:
June 27, 2026December 27, 2025
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted average remaining lease term7.473.954.844.00
Weighted average discount rate6.01 %5.59 %6.18 %5.82 %
Supplemental balance sheet information related to the Company's finance leases was as follows as of June 27, 2026 and December 27, 2025:
June 27, 2026December 27, 2025
Finance lease assets, net, included in property plant and equipment$21,699 $18,778 
Current portion of long-term debt6,371 5,599 
Long-term debt, less current portion15,781 13,619 
Total principal payable on finance leases$22,152 $19,218 
Supplemental cash flow information related to the Company's operating and finance leases was as follows for the twenty-six weeks ended June 27, 2026 and twenty-six weeks ended June 28, 2025:
Twenty-six Weeks Ended
June 27, 2026		Twenty-six Weeks Ended
June 28, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases$12,477 $11,017 
Operating cash outflow from finance leases585 459 
Financing cash outflow from finance leases3,193 2,653 
Maturities of our lease liabilities for all operating and finance leases are as follows as of June 27, 2026:
Operating LeasesFinance Leases
Remaining 2026
$13,222 $3,810 
2027
25,423 6,708 
2028
23,029 5,643 
2029
18,443 4,860 
2030
12,850 3,174 
Thereafter42,486 338 
Total future minimum rental commitments135,453 24,533 
Less - amounts representing interest(27,798)(2,381)
Present value of lease liabilities$107,655 $22,152 
In July 2025, the Company entered into one additional operating lease for a new property located in Forest Park, Ohio for the purpose of consolidating office, warehouse, and distribution in the Cincinnati area. Occupancy has not yet commenced and the estimated future minimum rental commitments for the Forest Park lease are approximately $4.5 million per year beginning in late summer 2027 and increasing 3.25% per year thereafter for 15 years.

In 2026, the Company entered into two additional finance leases for equipment to be used at the new Forest Park facility. The leases have not yet commenced. The future minimum rent payments for the equipment leases are approximately $11.5 million per year beginning in 2028 for seven year terms.
Lessor
The Company has certain arrangements for key duplication equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material.
Operating Leases
Lessee
The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both 1) the right to obtain substantially all of the economic benefits from the use of the asset and 2) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2042. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or
terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees, nor material restrictive covenants.
The components of operating and finance lease costs for the thirteen and twenty-six weeks ended June 27, 2026 and thirteen and twenty-six weeks ended June 28, 2025 were as follows:
Thirteen Weeks Ended
June 27, 2026		Thirteen Weeks Ended
June 28, 2025		Twenty-six Weeks Ended
June 27, 2026		Twenty-six Weeks Ended
June 28, 2025
Operating lease costs$7,061 $5,706 $13,353 $11,354 
Short term lease costs724 609 1,999 1,322 
Variable lease costs489 667 596 1,269 
Finance lease costs:
Amortization of right of use assets1,695 1,408 3,195 2,680 
Interest on lease liabilities316 260 597 483 
Rent expense is recognized on a straight-line basis over the expected lease term. Rent expense totaled $8,275 and $15,949 in the thirteen and twenty-six weeks ended June 27, 2026, respectively, and $6,982 and $13,945 in the thirteen and twenty-six weeks ended June 28, 2025, respectively. Rent expense includes operating lease costs as well as expenses for non-lease components such as common area maintenance, real estate taxes, real estate insurance, variable costs related to our leased vehicles, and short-term rental expenses.
The implicit rate is not determinable in most of the Company’s leases, as such management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.
The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of June 27, 2026 and December 27, 2025:
June 27, 2026December 27, 2025
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted average remaining lease term7.473.954.844.00
Weighted average discount rate6.01 %5.59 %6.18 %5.82 %
Supplemental balance sheet information related to the Company's finance leases was as follows as of June 27, 2026 and December 27, 2025:
June 27, 2026December 27, 2025
Finance lease assets, net, included in property plant and equipment$21,699 $18,778 
Current portion of long-term debt6,371 5,599 
Long-term debt, less current portion15,781 13,619 
Total principal payable on finance leases$22,152 $19,218 
Supplemental cash flow information related to the Company's operating and finance leases was as follows for the twenty-six weeks ended June 27, 2026 and twenty-six weeks ended June 28, 2025:
Twenty-six Weeks Ended
June 27, 2026		Twenty-six Weeks Ended
June 28, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases$12,477 $11,017 
Operating cash outflow from finance leases585 459 
Financing cash outflow from finance leases3,193 2,653 
Maturities of our lease liabilities for all operating and finance leases are as follows as of June 27, 2026:
Operating LeasesFinance Leases
Remaining 2026
$13,222 $3,810 
2027
25,423 6,708 
2028
23,029 5,643 
2029
18,443 4,860 
2030
12,850 3,174 
Thereafter42,486 338 
Total future minimum rental commitments135,453 24,533 
Less - amounts representing interest(27,798)(2,381)
Present value of lease liabilities$107,655 $22,152 
In July 2025, the Company entered into one additional operating lease for a new property located in Forest Park, Ohio for the purpose of consolidating office, warehouse, and distribution in the Cincinnati area. Occupancy has not yet commenced and the estimated future minimum rental commitments for the Forest Park lease are approximately $4.5 million per year beginning in late summer 2027 and increasing 3.25% per year thereafter for 15 years.

In 2026, the Company entered into two additional finance leases for equipment to be used at the new Forest Park facility. The leases have not yet commenced. The future minimum rent payments for the equipment leases are approximately $11.5 million per year beginning in 2028 for seven year terms.
Lessor
The Company has certain arrangements for key duplication equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material.