v3.26.1
Segments
 6 Months Ended
Jul. 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 Operating 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:

Second Quarter 2026
(in thousands)Nonalcoholic BeveragesAll Other
Eliminations(1)
Total
Net sales$2,038,945 $92,343 $(78,868)$2,052,420 
Cost of goods sold1,277,498 57,939 (61,430)1,274,007 
Gross profit761,447 34,404 (17,438)778,413 
Selling, delivery and administrative expenses:
Payroll costs(2)
$320,542 $13,628 $— $334,170 
Fleet costs(3)
27,127 7,337 — 34,464 
Depreciation and amortization expense(4)
31,153 585 — 31,738 
All other segment items(5)
116,518 7,622 (17,438)106,702 
Total selling, delivery and administrative expenses495,340 29,172 (17,438)507,074 
Income from operations$266,107 $5,232 $— $271,339 
Total depreciation and amortization expense(4)
$52,634 $5,517 $— $58,151 

Second Quarter 2025
(in thousands)Nonalcoholic BeveragesAll Other
Eliminations(1)
Total
Net sales$1,845,061 $80,402 $(69,944)$1,855,519 
Cost of goods sold1,121,401 44,880 (53,258)1,113,023 
Gross profit723,660 35,522 (16,686)742,496 
Selling, delivery and administrative expenses:
Payroll costs(2)
$295,639 $12,451 $— $308,090 
Fleet costs(3)
23,262 6,690 — 29,952 
Depreciation and amortization expense(4)
29,128 545 — 29,673 
All other segment items(5)
111,767 7,616 (16,686)102,697 
Total selling, delivery and administrative expenses459,796 27,302 (16,686)470,412 
Income from operations$263,864 $8,220 $— $272,084 
Total depreciation and amortization expense(4)
$49,387 $5,378 $— $54,765 
First Half 2026
(in thousands)Nonalcoholic BeveragesAll Other
Eliminations(1)
Total
Net sales$3,872,764 $181,823 $(155,499)$3,899,088 
Cost of goods sold2,401,711 111,392 (119,508)2,393,595 
Gross profit1,471,053 70,431 (35,991)1,505,493 
Selling, delivery and administrative expenses:
Payroll costs(2)
$633,446 $27,458 $— $660,904 
Fleet costs(3)
41,760 16,089 — 57,849 
Depreciation and amortization expense(4)
61,687 1,163 — 62,850 
All other segment items(5)
236,675 14,343 (35,991)215,027 
Total selling, delivery and administrative expenses973,568 59,053 (35,991)996,630 
Income from operations$497,485 $11,378 $— $508,863 
Total depreciation and amortization expense(4)
$104,224 $10,829 $— $115,053 

First Half 2025
(in thousands)Nonalcoholic BeveragesAll Other
Eliminations(1)
Total
Net sales$3,414,158 $155,512 $(134,174)$3,435,496 
Cost of goods sold2,076,336 90,173 (100,613)2,065,896 
Gross profit1,337,822 65,339 (33,561)1,369,600 
Selling, delivery and administrative expenses:
Payroll costs(2)
$562,318 $24,477 $— $586,795 
Fleet costs(3)
47,089 14,373 — 61,462 
Depreciation and amortization expense(4)
57,384 1,081 — 58,465 
All other segment items(5)
219,924 14,611 (33,561)200,974 
Total selling, delivery and administrative expenses886,715 54,542 (33,561)907,696 
Income from operations$451,107 $10,797 $— $461,904 
Total depreciation and amortization expense(4)
$97,437 $10,701 $— $108,138 

(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.