Income Taxes |
6 Months Ended |
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Jun. 28, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company’s current quarter provision for income taxes was prepared using the annual effective tax rate adjusted to remove discrete items, as those items will impact the quarter in which those items were reflected. The Company’s effective tax rate for the fiscal three-month periods ended June 28, 2026 and June 29, 2025 was 50.0% and 43.4%, respectively, and for the fiscal six months ended June 28, 2026 and June 29, 2025 was 32.6% and 41.4%, respectively. For the fiscal three and six months ended June 28, 2026, discrete tax items impacting the effective tax rate were primarily due to the City of Chicago reversal and differences in tax deductible stock-based compensation compared to GAAP stock-based compensation expense. There were no material discrete items in the fiscal three or six months ended June 29, 2025. Effective tax rates for all periods were impacted by the disproportionate amount of non-deductible expenses in relation to income (loss) before income taxes. The Company regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain, including in connection with changes in tax laws. The Company maintains a valuation allowance on certain state net operating loss carryforwards and for Canadian capital losses. Such valuation allowances are released as the related tax benefits are realized or when sufficient evidence exists to conclude that it is more likely than not the deferred tax assets will be realized. There were no unrecognized tax benefits recorded relating to uncertain tax positions as of June 28, 2026 or December 28, 2025. As of June 28, 2026, with certain exceptions, the Company is no longer subject to U.S. federal, state, local, or Canadian examinations for years before fiscal year 2019.
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