v3.26.1
Derivative Instruments
 6 Months Ended
Jun. 28, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
Commodity Price Risk
The Company uses forward contracts to protect against the effects of commodity price fluctuations in the cost of ingredients of its products, of which flour, sugar, and shortening are the most significant, and the cost of gasoline used by its delivery vehicles. Management has not designated these forward contracts as hedges. As of June 28, 2026 and December 28, 2025, the total notional amount of these contracts was 0.7 million and 0.6 million gallons of fuel, respectively, and the Company recorded a liability of $0.2 million and an asset of less than $0.1 million, respectively. The contracts outstanding as of June 28, 2026 are scheduled to mature between July 2026 and March 2027, and the contracts outstanding as of December 28, 2025 matured between January 2026 and March 2026. The settlement of commodity derivative contracts is reported in the Condensed Consolidated Statements of Cash Flows as a cash flow from operating activities.
Interest Rate Risk
The Company uses interest rate swaps to manage its exposure to interest rate volatility from its debt arrangements. Management has designated the swap agreements as cash flow hedges and recognized the changes in the fair value of these swaps in other comprehensive income. As of both June 28, 2026 and December 28, 2025, the aggregate notional amount hedged by the swap agreements was $550.0 million of term loan principal. As of June 28, 2026 and December 28, 2025, the Company has recorded liabilities of $0.8 million and $8.4 million, respectively, related to the fair market values of its interest rate derivatives. The cash flows associated with the interest rate swaps are reflected in operating activities in the Condensed Consolidated Statements of Cash Flows, which is consistent with the classification as operating activities of the interest payments on the term loan.
The net effect of the interest rate swap arrangements is to fix the variable interest rate on the term loan under the 2023 Facility (as defined in Note 10, Long-Term Debt) up to the notional amount outstanding at the rates payable under the swap agreements plus the Applicable Rate (as defined by the 2023 Facility), through the swap maturity dates in March 2028.
Foreign Currency Exchange Rate Risk
The Company is exposed to foreign currency exchange rate risk primarily from its investments in consolidated subsidiaries that operate in Canada, the U.K., Ireland, Australia, New Zealand, and Mexico. In order to mitigate foreign exchange fluctuations, the Company enters into foreign exchange forward contracts. Management has not designated these forward contracts as hedges. As of June 28, 2026 and December 28, 2025, the total notional amount of foreign exchange derivatives was $76.4 million and $65.6 million, respectively. These contracts are short term in nature and are continually swapped at a notional value to offset the corresponding values. The majority of our foreign exchange derivatives matured in April 2026 and January 2026, respectively, but are continually swapped at maturity to track the underlying exposure. The Company recorded a liability of $0.1 million and a liability of less than $0.1 million as of June 28, 2026 and December 28, 2025, respectively, related to the fair market values of its foreign exchange derivatives.
Quantitative Summary of Derivative Positions and Their Effect on Results of Operations
The following tables present the fair values of derivative instruments included in the Condensed Consolidated Balance Sheets as of June 28, 2026 and December 28, 2025 for derivatives not designated as hedging instruments and derivatives designated as hedging instruments, respectively. Only the Company’s cash flow hedges are designated as hedging instruments.
Derivatives Fair Value
Derivatives Not Designated as Hedging
Instruments
June 28, 2026December 28,
2025
Balance Sheet Location
Foreign currency derivatives
$120 $— Prepaid expense and other current assets
Commodity derivatives
— 33 Prepaid expense and other current assets
Total Assets$120 $33 
Foreign currency derivatives
— 12 Accrued liabilities
Commodity derivatives 199 — Accrued liabilities
Total Liabilities$199 $12 
Derivatives Fair Value
Derivatives Designated as Hedging InstrumentsJune 28, 2026December 28,
2025		Balance Sheet Location
Interest rate derivatives (current)
$453 $3,741 
Accrued liabilities
Interest rate derivatives (noncurrent)
321 4,645 
Other long-term obligations and deferred credits
Total Liabilities$774 $8,386 
The effect of derivative instruments in the Condensed Consolidated Statements of Operations for the quarter and two quarters ended June 28, 2026 and June 29, 2025 is as follows:
Derivative Gain/(Loss) Recognized in Income for the Quarter Ended
Derivative Gain/(Loss) Recognized in Income for the Two Quarters Ended
Derivatives Designated as Hedging InstrumentsJune 28, 2026June 29, 2025June 28, 2026June 29, 2025
Location of Derivative Gain Recognized in Income
Loss/ (gain) on interest rate derivatives$(353)$336 $(643)$623 Interest expense, net
$(353)$336 $(643)$623 
Derivative Gain/(Loss) Recognized in Income for the Quarter Ended
Derivative Gain/(Loss) Recognized in Income for the Two Quarters Ended
Derivatives Not Designated as Hedging InstrumentsJune 28, 2026June 29, 2025June 28, 2026June 29, 2025
Location of Derivative (Loss)/Gain Recognized in Income
(Loss)/gain on foreign currency derivatives$379 $(220)$132 $(117)Other non-operating (income)/expense, net
Loss/(gain) on commodity derivatives(228)45 (33)140 Other non-operating (income)/expense, net
$151 $(175)$99 $23