The 2019 Plan is administered by the Compensation Committee of the Company’s Board of Directors, which determines the terms of the options granted, including exercise price, number of options granted, and vesting period of such options. Under the 2019 Plan, the exercise price of options may not be less than the fair market value of the Company’s common stock at the date of grant. Options have a term of no more than ten years from the date of grant and are generally cancelled 90 days after termination of employment or other service.

Prior to March 27, 2026, the Company granted 50% of its options with a service condition (“time-based option”) and 50% of the options with both market and an implied performance condition (“performance-based option”) (collectively, the “Options”). The time-based options generally vest over a four-year period with 25% of the shares vesting one year after the service date and the remaining 75% of shares vesting in equal installments monthly for the following 36 months. The performance-based options were originally set to vest when the Company’s controlling stockholder achieves a multiple of invested capital (“MOIC”) ranging from 175% to 250% of invested capital, based on cash proceeds received by the investor. At the grant date, the performance-based awards had a service condition, the MOIC condition, and an implied performance condition because the MOIC condition was not deemed to be achievable without the occurrence of a Change in Control or an IPO. Prior to March 27, 2026, no compensation cost was recognized for the performance-based options as the implied performance condition was not considered probable.

On March 27, 2026, the Company’s Board of Directors removed the non-service conditions on all outstanding performance-based options, thereby converting such options to time-based vesting awards. Following the modification, the former performance-based options are subject to the same time-based vesting conditions and other key terms as the time-based options originally granted to the same participant under the same option agreement.

The modification was determined to be an improbable-to-probable modification and, accordingly, was accounted for as new equity awards for accounting purposes, with compensation cost measured based on the fair value of the modified awards as of the modification date. The aggregate fair value of modified awards was $25.3 million at the date of modification, determined using the Black-Scholes option-pricing model with the following weighted-average assumptions: expected term of 0.9 years, expected volatility of 45%, risk-free interest rate of 3.76%, and expected dividend yield of 0%. Compensation cost for the modified awards is measured at the modification-date fair value and recognized over the requisite service period of the modified awards. For awards that were already

vested as of the modification date, the related compensation cost was recognized immediately. During the 13 weeks ended March 28, 2026, the Company recognized compensation expense of $23.8 million in connection with this modification since the majority of these options were vested at the modification date.


	Time-Based Options
	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 27, 2025	2,987,853	$	7.22	5.2	$	24,660
Options exercised	(8,658)	7.75
Options forfeited or expired	(76,641)	10.21
Options modified (a)	2,935,624	7.23
Outstanding at June 27, 2026	5,838,178	$	6.86	4.6	$	48,499
Exercisable at June 27, 2026	5,584,765	$	6.83	4.5	$	46,657
Vested at June 27, 2026	5,584,765	$	6.83	4.5	$	46,657

For the 13 weeks ended June 27, 2026 and June 28, 2025, stock-based compensation expense was $1.8 million and $0.3 million, respectively. For the 26 weeks ended June 27, 2026 and June 28, 2025, stock-based compensation expense was $25.9 million and $0.6 million, respectively. Stock-based compensation expense was recognized almost entirely in selling, general and administrative expense except for an immaterial amount recorded in cost of goods sold.

As of June 27, 2026, total unrecognized compensation cost for all time-based options was 1.5 million and was recognized in full in July 2026 as a result of an acceleration of the vesting of all outstanding time-based options. The accelerated vesting was triggered by the Company’s controlling stockholder beneficially owning less than 50% of the Company’s issued and outstanding shares upon completion of the IPO.

The awards contain both a service condition and a performance-based condition. Under the service condition, the awards vest over a period of 3 or 4 years. The performance condition accelerates vesting at a Change in Control or an IPO and the awards would be forfeited if no Change in Control or IPO event occurs within 7 years of the grant date. No expense has been recognized for the RSUs for the 13 weeks ended June 27, 2026 and June 28, 2025 and for the 26 weeks ended June 27, 2026 and June 28, 2025, respectively, as the performance condition is not deemed probable.