Leases

6 Months Ended

Jun. 27, 2026

The Company has certain manufacturing facilities, warehouse, office, and retail space that are accounted for as operating leases. The Company’s lease terms may include options to extend or terminate the lease and are, therefore, included in the operating lease right-of-use assets and operating lease liabilities when such options are reasonably certain to be exercised. Rent expense is recorded on a straight-line basis over the term of the lease (“operating lease cost”) and is included in cost of goods sold and selling, general, and administrative expenses on the condensed consolidated statements of operations and comprehensive income (loss).

The following table presents the Company’s total lease cost:


	13 Weeks Ended				26 Weeks Ended
(in thousands)	June 27, 2026		June 28, 2025		June 27, 2026		June 28, 2025

Operating lease expense	$	8,397	$	7,048	$	16,274	$	13,553
Short term lease expense	-		76		-		76
Variable lease expense	1,540		1,371		2,706		2,302
Total lease expense	$	9,938	$	8,495	$	18,980	$	15,931

Other information related to leases are as follows:


	As of
	June 27, 2026		December 27, 2025

Weighted average remaining lease term (in years)
Operating leases	9.2		9.4

Weighted average discount rate
Operating leases	5.0	%	4.8	%

Future minimum lease payments for operating leases are as follows:


(in thousands)	Operating Lease Liability

Fiscal year
Remainder of 2026	$	11,501
2027	30,458
2028	29,556
2029	27,367
2030	24,457
Thereafter	125,390
Total undiscounted lease payments	248,729
Less: Imputed interest	(54,946)
Present value of future minimum lease payments	$	193,783