v3.26.1
Income Taxes
 12 Months Ended
Jun. 25, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 8 — INCOME TAXES

The provision for income taxes is based entirely on income before income taxes from continuing operations earned in the United States, thus there are no foreign amounts to separately disaggregate, and is as follows for the last three fiscal years:

 

For the Year Ended

 

 

June 25,
2026

 

 

June 26,
2025

 

 

June 27,
2024

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

8,496

 

 

$

16,736

 

 

$

15,405

 

State

 

 

4,420

 

 

 

4,687

 

 

 

4,987

 

Total current expense

 

 

12,916

 

 

 

21,423

 

 

 

20,392

 

Deferred:

 

 

 

 

 

 

 

 

 

Deferred federal

 

 

8,430

 

 

 

(2,009

)

 

 

209

 

Deferred state

 

 

(305

)

 

 

(483

)

 

 

(913

)

Total deferred tax benefit

 

 

8,125

 

 

 

(2,492

)

 

 

(704

)

Total income tax expense

 

$

21,041

 

 

$

18,931

 

 

$

19,688

 

 

The following table presents the differences between the Company's income tax provision and the amounts computed at the federal statutory income tax rate, on a dollar and percentage basis, since the adoption of ASU 2023-09 in the current fiscal year, for the last three fiscal years:

 

 

June 25,
2026

 

 

June 26,
2025

 

 

June 27,
2024

 

U.S. federal statutory income tax rate

 

$

17,425

 

 

21.0

%

 

$

16,352

 

 

21.0

%

 

$

16,802

 

 

21.0

%

State and local income taxes, net of federal
   tax effect (a)

 

 

3,310

 

 

4.0

 

 

 

3,131

 

 

4.0

 

 

 

2,887

 

 

3.6

 

Tax credits

 

 

(855

)

 

(1.0

)

 

 

(755

)

 

(1.0

)

 

 

(748

)

 

(0.9

)

Nontaxable and nondeductible items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Section 162(m) limitation

 

 

1,095

 

 

1.3

 

 

 

164

 

 

0.2

 

 

 

1,127

 

 

1.4

 

Other

 

 

3

 

 

—

 

 

 

(166

)

 

(0.2

)

 

 

(843

)

 

(1.1

)

Changes in unrecognized tax benefits

 

 

125

 

 

0.2

 

 

 

319

 

 

0.4

 

 

 

358

 

 

0.5

 

Other adjustments

 

 

(62

)

 

(0.1

)

 

 

(114

)

 

(0.1

)

 

 

105

 

 

0.1

 

Effective tax rate

 

$

21,041

 

 

25.4

%

 

$

18,931

 

 

24.3

%

 

$

19,688

 

 

24.6

%

 

(a)
Illinois and California made up the majority (greater than 50%) of the tax effect within this category for all periods presented.

 

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement basis and the tax basis of assets and liabilities using enacted statutory tax rates applicable to future years. Deferred tax assets and liabilities are comprised of the following:

 

June 25,
2026

 

 

June 26,
2025

 

Deferred tax (liabilities) assets:

 

 

 

 

 

 

Accounts receivable

 

$

451

 

 

$

405

 

Employee compensation

 

 

2,465

 

 

 

2,558

 

Inventory

 

 

490

 

 

 

621

 

Depreciation

 

 

(19,172

)

 

 

(15,902

)

Capitalized leases

 

 

995

 

 

 

1,064

 

Goodwill and intangible assets

 

 

(44

)

 

 

240

 

Retirement plan

 

 

7,488

 

 

 

7,185

 

Workers’ compensation

 

 

1,854

 

 

 

1,746

 

Share based compensation

 

 

2,072

 

 

 

2,085

 

Research related expenditures

 

 

356

 

 

 

5,035

 

Other

 

 

609

 

 

 

745

 

Net deferred tax (liability) asset

 

$

(2,436

)

 

$

5,782

 

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the character necessary during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. If or when recognized, the tax benefits relating to any reversal of any valuation allowance will be recognized as a reduction of income tax expense.

For the years ending June 25, 2026 and June 26, 2025, unrecognized tax benefits and accrued interest and penalties were $825 and $780. Accrued interest and penalties related to uncertain tax positions are not material for any periods presented. Interest and penalties within income tax expense were not material for any period presented. The total gross amounts of unrecognized tax benefits were $823 and $807 at June 25, 2026 and June 26, 2025, respectively.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

 

June 25,
2026

 

 

June 26,
2025

 

 

June 27,
2024

 

Beginning balance

 

$

807

 

 

$

733

 

 

$

463

 

Gross (decreases) increases — tax positions in prior year

 

 

(14

)

 

 

52

 

 

 

146

 

Settlements

 

 

(118

)

 

 

(141

)

 

 

(104

)

Gross increases — tax positions in current year

 

 

237

 

 

 

251

 

 

 

311

 

Lapse of statute of limitations

 

 

(89

)

 

 

(88

)

 

 

(83

)

Ending balance

 

$

823

 

 

$

807

 

 

$

733

 

 

Unrecognized tax benefits, that if recognized, would affect the annual effective tax rate on income from continuing operations, are as follows:

 

June 25,
2026

 

 

June 26,
2025

 

 

June 27,
2024

 

Unrecognized tax benefits that would affect annual effective
   tax rate

 

$

818

 

 

$

770

 

 

$

682

 

 

The total cash paid for income taxes, net of refunds received, for the last three fiscal years is as follows:

 

 

June 25,
2026

 

 

June 26,
2025

 

 

June 27,
2024

 

U.S. federal

 

$

9,795

 

 

$

16,540

 

 

$

17,598

 

State

 

 

 

 

 

 

 

 

 

Illinois

 

 

2,096

 

 

 

2,199

 

 

 

2,069

 

California

 

 

500

 

 

 

1,125

 

 

 

482

 

Other states

 

 

1,537

 

 

 

1,348

 

 

 

1,936

 

Total cash paid for income taxes (net of refunds)

 

$

13,928

 

 

$

21,212

 

 

$

22,085

 

We file income tax returns with federal and state tax authorities within the United States of America. Our federal tax returns are open for audit for fiscal 2023 through 2025. Our Illinois tax return for fiscal 2025 is open for audit. Our California tax returns for fiscal 2022 through 2025 are open for audit. No other tax jurisdictions are material to us.

Public Law No. 119-21, commonly known as the One, Big, Beautiful Bill Act (the “Act”) was signed into law on July 4, 2025. The Act contains significant tax law changes with various effective dates affecting business taxpayers. Among the tax law changes that will impact the Company relate to the timing of certain tax deductions including depreciation expense and research and development expenditures. This has led to lower cash tax payments in the near term combined with an increase in our deferred tax liability. The Company implemented the Act’s tax law changes in the first quarter of fiscal 2026. The Act did not have any impact to our overall tax expense but impacted the timing of cash taxes paid and the allocation of tax expense between current and deferred.