The Company uses interest rate swaps to manage its interest rate exposure on its Term Loan B and its Real Estate Term Loan. The interest rate swaps are recorded in the Company’s Consolidated Balance Sheets at fair value. See Note 10. Term Debt, Revolving Credit Facility, and Other Notes Payable. The interest rate swaps are designated as cash flow hedges under ASC 815-20 and are included in the Company’s Consolidated Balance Sheets at fair value. Changes in the fair value of the effective portion of the hedges are recorded in Accumulated Other Comprehensive Income and reclassified into Interest Expense in the same period the hedged items affect earnings. Any portion of the derivative that is no longer designated as a hedge is accounted for at fair value with mark-to-market adjustments recorded immediately in earnings. Cash flows associated with derivatives are reported in Net cash provided by operating activities in the Consolidated Statements of Cash Flows.

In June 2026, the Company terminated its previously existing swap agreement associated with the Term Loan B and received cash proceeds of $8.4 million. The proceeds were recorded in other comprehensive income (loss) and will be amortized into earnings over the remaining term of the swap. In addition, on the same date, the Company entered into a new interest rate swap agreement with a notional amount of $425.0 million. The agreement is scheduled to mature on December 31, 2029.

During the thirteen weeks ended June 28, 2026, in connection with the paydown of the Real Estate Term Loan related to the sale of a property discussed in Note 5. Property, Plant and Equipment, Net, and the estimated future paydowns anticipated upon the sale of assets held for sale, the Company determined that the forecasted interest payments associated with $8.7 million of the notional amount of its Real Estate Term Loan interest rate swap were no longer probable of occurring. Accordingly, effective June 15, 2026, the Company de-designated that $8.7 million portion of the hedging relationship while continuing to apply cash flow hedge accounting to the remaining $34.0 million notional amount, which remains designated as a cash flow hedge. The de-designated $8.7 million notional amount is carried at fair value, with subsequent mark-to-market adjustments recognized immediately in earnings.

The Company evaluated the effect of the pending Merger (as defined in Note 2. Pending Merger), including the expected amendment and restatement or repayment of certain of the Company’s existing debt agreements in connection with the closing of the Merger, on its designated hedging relationships. Because the Company expects to continue to have variable rate indebtedness following the closing of the Merger, the Company determined that the hedged forecasted interest payments remained probable of occurring as of September 27, 2026. Accordingly, no portion of the Company’s hedging relationships was de-designated as a result of the pending Merger during the thirteen weeks ended September 27, 2026.

The Company has outstanding purchase commitments for specific quantities at fixed prices for certain key ingredients to economically hedge commodity input prices. These purchase commitments totaled $76.9 million as of September 27, 2026 and $66.9 million as of December 28, 2025. The Company accrues for losses on firm purchase commitments in a loss position at the end of each reporting period to the extent that there is an active observable market. The Company has recorded losses (gains) related to purchase commitments and mark-to-market adjustments on commodities options totaling $(0.2) million for both the thirteen weeks ended September 27, 2026 and September 28, 2025, and $9.0 million and $1.5 million for the thirty-nine weeks ended September 27, 2026 and September 28, 2025, respectively.

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of September 27, 2026:


(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	70.1	$	—	$	—	$	70.1
Commodity contracts	—		0.4		—		0.4
Interest rate swaps	—		10.8		—		10.8
Total assets	$	70.1	$	11.2	$	—	$	81.3
Liabilities:
Commodity contracts	$	—	$	0.7	$	—	$	0.7


Debt	—		875.6		—		875.6
Total liabilities	$	—	$	876.3	$	—	$	876.3


(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	120.4	$	—	$	—	$	120.4

Interest rate swaps	—		0.8		—		0.8
Total assets	$	120.4	$	0.8	$	—	$	121.2
Liabilities:
Commodity contracts	$	—	$	1.2	$	—	$	1.2
Interest rate swaps	—		1.1		—		1.1

Debt	—		849.6		—		849.6
Total liabilities	$	—	$	851.9	$	—	$	851.9