Income taxes (Tables)
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12 Months Ended |
Jun. 28, 2026 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Components of Income Tax Provision |
Significant components of the income tax provision are as follows: | | | | | | | | | | | | | | | | | | | Years Ended | | June 28, 2026 | | June 29, 2025 | | June 30, 2024 | | | | | | | | (in thousands) | | Current provision (benefit): | | | | | | | Federal | $ | 143 | | | $ | (1,942) | | | $ | 11,774 | | | State | 546 | | | 1,125 | | | 161 | | | Foreign | — | | | 176 | | | — | | | Current income tax expense (benefit) | 689 | | | (641) | | | 11,935 | | | Deferred provision (benefit): | | | | | | | Federal | (558) | | | (12,880) | | | (14,246) | | | State | (135) | | | 131 | | | 2,514 | | | Foreign | — | | | 26 | | | — | | | Deferred income tax benefit | (693) | | | (12,723) | | | (11,732) | | | | | | | | | Income tax (benefit) expense | $ | (4) | | | $ | (13,364) | | | $ | 203 | |
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| Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate |
The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the U.S. federal statutory tax amount and rate to the Company’s actual effective amount and rate for the year ended June 28, 2026: | | | | | | | | | | | | | | | | | | | | | Year Ended June 28, 2026 | | | | Amount | | Percent | | | | (in thousands) | | | | U.S. federal statutory rate | | $ | (28,301) | | | 21.0 | % | | State and local income tax, net of federal income tax effect (1) | | 296 | | (0.2) | | | Tax Credits: | | | | | | Research and development credit | | (1,905) | | | 1.4 | | | Work opportunity tax credits | | (329) | | | 0.2 | | | Changes in valuation allowances | | 26,293 | | | (19.5) | | | Non-taxable or non-deductible items: | | | | | | Share-based compensation | | 2,947 | | | (2.2) | | | Executive compensation | | 133 | | (0.1) | | | Changes in unrecognized tax benefits | | 523 | | (0.4) | | | Other adjustments | | 339 | | (0.2) | | | Effective tax rate | | $ | (4) | | | 0.0 | % |
(1) State taxes in Texas and New York, and local taxes in Ohio accounted for the majority (greater than 50%) of the tax effect in this category.
The following table presents the required disclosures prior to the Company’s adoption of ASU 2023-09 and reconciles the U.S. federal statutory tax rate to the Company’s effective tax rate for the years ended June 29, 2025 and June 30, 2024 as follows: | | | | | | | | | | | | | | | | Years Ended | | | June 29, 2025 | | June 30, 2024 | | | | | | | Tax at U.S. statutory rates | | 21.0 | % | | 21.0 | % | | State income taxes, net of federal tax benefit | | 3.4 | | | (8.1) | | | Non-deductible impairment charge | | (1.4) | | | - | | | Valuation allowance change | | (16.8) | | | (28.5) | | | Non-deductible compensation | | (0.1) | | | (0.6) | | | Excess tax benefit/shortfalls from stock-based compensation | | (0.2) | | | (11.9) | | | Tax credits | | 0.3 | | | 16.9 | | | Enhanced deductions | | - | | | 11.8 | | | Other, net | | 0.1 | | | (4.0) | | | Effective tax rate | | 6.3 | % | | (3.4 | %) |
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| Schedule of Deferred Income Tax Assets (Liabilities) |
The significant components of the Company's deferred income tax assets (liabilities) are as follows: | | | | | | | | | | | | | June 28, 2026 | | June 29, 2025 | | | | | | (in thousands) | | Deferred income tax assets: | | | | | Loss and carryforwards | $ | 32,265 | | | $ | 17,508 | | | Accrued expenses and reserves | 7,631 | | | 2,315 | | | Inventory | 3,762 | | | 4,366 | | | Stock-based compensation | 1,102 | | | 2,613 | | | Deferred compensation | 7,986 | | | 7,242 | | | Operating lease liabilities | 28,140 | | | 29,002 | | | Interest limitation carryforward | 5,313 | | | 2,634 | | | Other intangibles | 27,362 | | | 20,604 | | | Gross deferred income tax assets | 113,561 | | | 86,284 | | | Less: Valuation allowance | (71,767) | | | (40,581) | | | Deferred tax assets, net | 41,794 | | | 45,703 | | | | | | | Deferred income tax liabilities: | | | | | | | | | Tax in excess of book depreciation | (22,067) | | | (25,409) | | | Operating lease right-of-use assets | (25,713) | | | (26,973) | | | Deferred tax liabilities | (47,780) | | | (52,382) | | | Deferred tax liabilities, net | $ | (5,986) | | | $ | (6,679) | |
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| Schedule of Changes in the Valuation Allowance |
The below table presents the changes in the Company's valuation allowance: | | | | | | | | | | | | | | | | | Years Ended | | | June 28, 2026 | | June 29, 2025 | | | (in thousands) | | Valuation allowance - beginning balance | | $ | 40,581 | | | $ | 4,868 | | | Additions charged to income tax benefit | | 31,201 | | | 35,958 | | | Allowances taken or written off | | (15) | | | (245) | | | Valuation allowance - ending balance | | $ | 71,767 | | | $ | 40,581 | |
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| Schedule of Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | | | | | | | | | | | | | | | | | | | Years Ended | | June 28, 2026 | | June 29, 2025 | | June 30, 2024 | | | | | | | | (in thousands) | | Beginning balance | $ | 2,760 | | | $ | 2,780 | | | $ | 1,724 | | | Increases on tax positions for prior years | 280 | | | 72 | | | 1,100 | | | Increases on tax positions for current year | 472 | | | 209 | | | 387 | | | Settlements | - | | | (166) | | | - | | | Statute of limitation expirations | (210) | | | (135) | | | (431) | | | Ending balance | $ | 3,302 | | | $ | 2,760 | | | $ | 2,780 | |
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| Schedule of Reconciliation of Cash Paid for Income Taxes Net of Refunds Received |
A reconciliation of cash paid for income taxes, net of refunds received, is as follows: | | | | | | | | | | | | Year Ended | | | | June 28, 2026 | | | | (in thousands) | | | U.S. federal | | $ | (2,421) | | | | U.S. state and local | | | | | California (1) | | (135) | | | | Illinois (1) | | (176) | | | | Texas (1) | | 144 | | | | Other | | 12 | | | | Income taxes paid, net of refunds | | $ | (2,576) | | |
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