Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 29, 2023 | Nov. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 29, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35249 | |
Entity Registrant Name | CHEFS’ WAREHOUSE, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3031526 | |
Entity Address, Address Line One | 100 East Ridge Road | |
Entity Address, City or Town | Ridgefield | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06877 | |
City Area Code | 203 | |
Local Phone Number | 894-1345 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | CHEF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,665,229 | |
Entity Central Index Key | 0001517175 | |
Current Fiscal Year End Date | --12-30 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 33,058 | $ 158,800 |
Accounts receivable, net of allowance of $24,792 in 2023 and $20,733 in 2022 | 316,138 | 260,167 |
Inventories, net | 312,222 | 245,693 |
Prepaid expenses and other current assets | 60,199 | 56,200 |
Total current assets | 721,617 | 720,860 |
Property and equipment, net | 208,927 | 185,728 |
Operating lease right-of-use assets | 177,092 | 156,629 |
Goodwill | 344,526 | 287,120 |
Intangible assets, net | 199,618 | 155,703 |
Other assets | 6,262 | 3,256 |
Total assets | 1,658,042 | 1,509,296 |
Current liabilities: | ||
Accounts payable | 209,299 | 163,397 |
Accrued liabilities | 75,437 | 54,325 |
Short-term operating lease liabilities | 22,765 | 19,428 |
Accrued compensation | 30,747 | 34,167 |
Current portion of long-term debt | 11,970 | 12,428 |
Total current liabilities | 350,218 | 283,745 |
Long-term debt, net of current portion | 689,207 | 653,504 |
Operating lease liabilities | 171,207 | 151,406 |
Deferred taxes, net | 9,317 | 6,098 |
Other liabilities and deferred credits | 3,311 | 13,034 |
Total liabilities | 1,223,260 | 1,107,787 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred Stock - $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding at September 29, 2023 and December 30, 2022 | 0 | 0 |
Common Stock - $0.01 par value, 100,000,000 shares authorized, 39,667,165 and 38,599,390 shares issued and outstanding at September 29, 2023 and December 30, 2022, respectively | 397 | 386 |
Additional paid-in capital | 352,576 | 337,947 |
Accumulated other comprehensive loss | (2,142) | (2,185) |
Retained earnings | 83,951 | 65,361 |
Total stockholders’ equity | 434,782 | 401,509 |
Total liabilities and stockholders’ equity | $ 1,658,042 | $ 1,509,296 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 30, 2022 |
Current assets: | ||
Accounts receivable, allowance for credit loss, current | $ 24,792 | $ 20,733 |
Stockholders’ equity: | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, issued (in shares) | 0 | 0 |
Preferred Stock, outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 39,667,165 | 38,599,390 |
Common Stock, outstanding (in shares) | 39,667,165 | 38,599,390 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 881,825 | $ 661,856 | $ 2,483,290 | $ 1,822,063 |
Cost of sales | 674,127 | 504,068 | 1,897,440 | 1,390,758 |
Gross profit | 207,698 | 157,788 | 585,850 | 431,305 |
Selling, general and administrative expenses | 179,614 | 130,255 | 514,793 | 364,828 |
Other operating expenses, net | 2,535 | 5,458 | 8,269 | 10,504 |
Operating income | 25,549 | 22,075 | 62,788 | 55,973 |
Interest expense | 11,379 | 10,737 | 33,391 | 19,567 |
Income before income taxes | 14,170 | 11,338 | 29,397 | 36,406 |
Provision for income tax expense | 6,848 | 3,061 | 10,807 | 9,829 |
Net income | 7,322 | 8,277 | 18,590 | 26,577 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (231) | (156) | 43 | (105) |
Comprehensive income | $ 7,091 | $ 8,121 | $ 18,633 | $ 26,472 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.19 | $ 0.22 | $ 0.49 | $ 0.72 |
Diluted (in dollars per share) | $ 0.19 | $ 0.21 | $ 0.49 | $ 0.68 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 37,692,588 | 37,120,926 | 37,611,179 | 37,047,653 |
Diluted (in shares) | 45,717,496 | 42,044,053 | 39,143,774 | 41,942,676 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance, beginning (in shares) at Dec. 24, 2021 | 37,887,675 | ||||
Balance, beginning at Dec. 24, 2021 | $ 350,211 | $ 380 | $ 314,242 | $ (2,022) | $ 37,611 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,385 | 1,385 | |||
Stock compensation (in shares) | 433,115 | ||||
Stock compensation | 3,043 | $ 4 | 3,039 | ||
Shares issued for acquisitions | 1,701 | 1,701 | |||
Cumulative translation adjustment | 125 | 125 | |||
Shares surrendered to pay tax withholding (in shares) | (64,329) | ||||
Shares surrendered to pay tax withholding | (2,040) | $ (1) | (2,039) | ||
Balance, ending (in shares) at Mar. 25, 2022 | 38,256,461 | ||||
Balance, ending at Mar. 25, 2022 | 354,425 | $ 383 | 316,943 | (1,897) | 38,996 |
Balance, beginning (in shares) at Dec. 24, 2021 | 37,887,675 | ||||
Balance, beginning at Dec. 24, 2021 | 350,211 | $ 380 | 314,242 | (2,022) | 37,611 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 26,577 | ||||
Cumulative translation adjustment | (105) | ||||
Balance, ending (in shares) at Sep. 23, 2022 | 38,270,107 | ||||
Balance, ending at Sep. 23, 2022 | 384,949 | $ 383 | 322,505 | (2,127) | 64,188 |
Balance, beginning (in shares) at Mar. 25, 2022 | 38,256,461 | ||||
Balance, beginning at Mar. 25, 2022 | 354,425 | $ 383 | 316,943 | (1,897) | 38,996 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 16,915 | 16,915 | |||
Stock compensation (in shares) | 16,131 | ||||
Stock compensation | 2,939 | 2,939 | |||
Cumulative translation adjustment | (74) | (74) | |||
Shares surrendered to pay tax withholding (in shares) | (15,137) | ||||
Shares surrendered to pay tax withholding | (518) | (518) | |||
Balance, ending (in shares) at Jun. 24, 2022 | 38,257,455 | ||||
Balance, ending at Jun. 24, 2022 | 373,687 | $ 383 | 319,364 | (1,971) | 55,911 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 8,277 | 8,277 | |||
Stock compensation (in shares) | 9,986 | ||||
Stock compensation | 3,099 | 3,099 | |||
Exercise of stock options (in shares) | 3,407 | ||||
Exercise of stock options | 69 | 69 | |||
Cumulative translation adjustment | (156) | (156) | |||
Shares surrendered to pay tax withholding (in shares) | (741) | ||||
Shares surrendered to pay tax withholding | (27) | (27) | |||
Balance, ending (in shares) at Sep. 23, 2022 | 38,270,107 | ||||
Balance, ending at Sep. 23, 2022 | $ 384,949 | $ 383 | 322,505 | (2,127) | 64,188 |
Balance, beginning (in shares) at Dec. 30, 2022 | 38,599,390 | 38,599,390 | |||
Balance, beginning at Dec. 30, 2022 | $ 401,509 | $ 386 | 337,947 | (2,185) | 65,361 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,401 | 1,401 | |||
Stock compensation (in shares) | 998,777 | ||||
Stock compensation | 4,790 | $ 10 | 4,780 | ||
Cumulative translation adjustment | 81 | 81 | |||
Shares surrendered to pay tax withholding (in shares) | (54,036) | ||||
Shares surrendered to pay tax withholding | (1,829) | $ (1) | (1,828) | ||
Balance, ending (in shares) at Mar. 31, 2023 | 39,544,131 | ||||
Balance, ending at Mar. 31, 2023 | $ 405,952 | $ 395 | 340,899 | (2,104) | 66,762 |
Balance, beginning (in shares) at Dec. 30, 2022 | 38,599,390 | 38,599,390 | |||
Balance, beginning at Dec. 30, 2022 | $ 401,509 | $ 386 | 337,947 | (2,185) | 65,361 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 18,590 | ||||
Exercise of stock options (in shares) | 2,705 | ||||
Cumulative translation adjustment | $ 43 | ||||
Balance, ending (in shares) at Sep. 29, 2023 | 39,667,165 | 39,667,165 | |||
Balance, ending at Sep. 29, 2023 | $ 434,782 | $ 397 | 352,576 | (2,142) | 83,951 |
Balance, beginning (in shares) at Mar. 31, 2023 | 39,544,131 | ||||
Balance, beginning at Mar. 31, 2023 | 405,952 | $ 395 | 340,899 | (2,104) | 66,762 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 9,867 | 9,867 | |||
Stock compensation (in shares) | 53,543 | ||||
Stock compensation | 4,704 | 4,704 | |||
Shares issued for acquisitions (in shares) | 75,008 | ||||
Shares issued for acquisitions | 2,496 | $ 1 | 2,495 | ||
Cumulative translation adjustment | 193 | 193 | |||
Shares surrendered to pay tax withholding (in shares) | (6,991) | ||||
Shares surrendered to pay tax withholding | (237) | (237) | |||
Balance, ending (in shares) at Jun. 30, 2023 | 39,665,691 | ||||
Balance, ending at Jun. 30, 2023 | 422,975 | $ 396 | 347,861 | (1,911) | 76,629 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 7,322 | 7,322 | |||
Stock compensation (in shares) | 936 | ||||
Stock compensation | $ 4,730 | $ 1 | 4,729 | ||
Exercise of stock options (in shares) | 2,705 | ||||
Exercise of stock options | $ 55 | ||||
Cumulative translation adjustment | (231) | (231) | |||
Shares surrendered to pay tax withholding (in shares) | (2,167) | ||||
Shares surrendered to pay tax withholding | $ (69) | (69) | |||
Balance, ending (in shares) at Sep. 29, 2023 | 39,667,165 | 39,667,165 | |||
Balance, ending at Sep. 29, 2023 | $ 434,782 | $ 397 | $ 352,576 | $ (2,142) | $ 83,951 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2023 | Sep. 23, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 18,590 | $ 26,577 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 24,167 | 17,667 |
Amortization of intangible assets | 16,924 | 10,289 |
Provision for allowance for doubtful accounts | 5,216 | 3,138 |
Non-cash operating lease expense | 2,663 | 1,329 |
Provision for deferred income taxes | 3,018 | 7,121 |
Amortization of deferred financing fees | 3,421 | 1,621 |
Loss on extinguishment of debt | 0 | 142 |
Stock compensation | 15,855 | 9,081 |
Change in fair value of contingent earn-out liabilities | 2,850 | 8,358 |
Intangible asset impairment | 1,838 | 0 |
(Gain) loss on asset disposal | (44) | 17 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | (27,387) | (25,402) |
Inventories | (56,350) | (40,519) |
Prepaid expenses and other current assets | (3,460) | (9,848) |
Accounts payable, accrued liabilities and accrued compensation | 18,740 | 21,938 |
Other assets and liabilities | (5,996) | 238 |
Net cash provided by operating activities | 20,045 | 31,747 |
Cash flows from investing activities: | ||
Capital expenditures | (35,130) | (31,666) |
Cash paid for acquisitions, net of cash acquired | (120,600) | (62,007) |
Net cash used in investing activities | (155,730) | (93,673) |
Cash flows from financing activities: | ||
Payment of debt, finance lease and other financing obligations | (33,444) | (171,434) |
Proceeds from debt issuance | 0 | 300,000 |
Payment of deferred financing fees | (354) | (11,258) |
Proceeds from exercise of stock options | 55 | 69 |
Surrender of shares to pay withholding taxes | (2,134) | (2,584) |
Cash paid for contingent earn-out liability | (3,650) | (2,538) |
Borrowings under asset-based loan facility | 50,000 | 0 |
Payments under asset-based loan facility | 0 | (20,000) |
Net cash provided by financing activities | 10,473 | 92,255 |
Effect of foreign currency on cash and cash equivalents | (530) | (59) |
Net change in cash and cash equivalents | (125,742) | 30,270 |
Cash and cash equivalents-beginning of period | 158,800 | 115,155 |
Cash and cash equivalents-end of period | $ 33,058 | $ 145,425 |
Operations and Basis of Present
Operations and Basis of Presentation | 9 Months Ended |
Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations and Basis of Presentation | Operations and Basis of Presentation Description of Business and Basis of Presentation The financial statements include the condensed consolidated accounts of The Chefs’ Warehouse, Inc. (the “Company”), and its wholly-owned subsidiaries. The Company’s quarterly periods end on the thirteenth Friday of each quarter. Every six to seven years, the Company will add a fourteenth week to its fourth quarter to more closely align its year-end to the calendar year. Fiscal 2022 contained a fourteenth week in the fourth quarter. The Company’s business consists of three operating segments: East, Midwest and West that aggregate into one reportable segment, foodservice distribution, which is concentrated primarily in the United States. The Company’s customer base consists primarily of menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos, specialty food stores, grocers and warehouse clubs. Consolidation The unaudited condensed consolidated financial statements include all the accounts of the Company and its direct and indirect wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Unaudited Interim Financial Statements The accompanying unaudited condensed consolidated financial statements and the related interim information contained within the notes to such unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules of the Securities and Exchange Commission (“SEC”) for interim information and quarterly reports on Form 10-Q. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended December 30, 2022 filed as part of the Company’s Annual Report on Form 10-K, as filed with the SEC on February 28, 2023. The unaudited condensed consolidated financial statements appearing in this Form 10-Q have been prepared on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, as filed with the SEC on February 28, 2023, and in the opinion of management, include all normal recurring adjustments that are necessary for the fair statement of the Company’s interim period results. The year-end consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by GAAP. Due to seasonal fluctuations and other factors, the results of operations for the thirteen and thirty-nine weeks ended September 29, 2023 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from management’s estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition Revenues from product sales are recognized at the point at which control of each product is transferred to the customer. The Company’s contracts contain performance obligations which are satisfied when customers have physical possession of each product. The majority of customer orders are fulfilled within a day and customer payment terms are typically 14 to 60 days from delivery. Shipping and handling activities are costs to fulfill the Company’s performance obligations. These costs are expensed as incurred and presented within selling, general and administrative expenses on the condensed consolidated statements of operations. The Company offers certain sales incentives to customers in the form of rebates or discounts. These sales incentives are accounted for as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and records a corresponding reduction in revenue. The Company does not expect a significant reversal in the amount of cumulative revenue recognized. Sales tax billed to customers is not included in revenue but rather recorded as a liability owed to the respective taxing authorities at the time the sale is recognized. The following table presents the Company’s net sales disaggregated by principal product category: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Center-of-the-Plate $ 333,809 37.9 % $ 280,272 42.3 % $ 980,120 39.5 % $ 803,334 44.1 % Specialty: Dry Goods 134,398 15.2 % 97,323 14.7 % 395,723 15.9 % 257,971 14.2 % Pastry 102,562 11.6 % 71,145 10.7 % 300,814 12.1 % 188,948 10.4 % Cheese and Charcuterie 64,639 7.3 % 54,989 8.3 % 185,303 7.5 % 146,155 8.0 % Produce 137,760 15.6 % 74,379 11.2 % 310,313 12.5 % 204,422 11.2 % Dairy and Eggs 56,849 6.4 % 38,719 5.9 % 163,600 6.6 % 102,405 5.6 % Oils and Vinegars 34,097 3.9 % 29,778 4.5 % 96,607 3.9 % 78,645 4.3 % Kitchen Supplies 17,711 2.1 % 15,251 2.4 % 50,810 2.0 % 40,183 2.2 % Total Specialty $ 548,016 62.1 % $ 381,584 57.7 % $ 1,503,170 60.5 % $ 1,018,729 55.9 % Total net sales $ 881,825 100 % $ 661,856 100 % $ 2,483,290 100 % $ 1,822,063 100 % The Company determines its product category classification based on how the Company currently markets its products to its customers. The Company’s definition of its principal product categories may differ from the way in which other companies present similar information. Net sales by product category includes estimates of product mix for certain locations that are not yet fully integrated into the Company’s information technology systems as of the reporting date. The table above includes the correction of an immaterial error to revise the Specialty principal product category revenue for the thirteen weeks ended September 23, 2022 and the thirty-nine weeks ended September 23, 2022 related to its Capital Seaboard acquisition. Total Specialty revenue was not impacted but aggregate revenue of $35,077 and $100,009 was adjusted from other Specialty product categories to Produce for the thirteen weeks ended September 23, 2022 and the thirty-nine weeks ended September 23, 2022, respectively. Food Processing Costs Food processing costs include but are not limited to direct labor and benefits, applicable overhead and depreciation of equipment and facilities used in food processing activities. Food processing costs included in cost of sales were $19,081 and $10,089 for the thirteen weeks ended September 29, 2023 and September 23, 2022, respectively, and $47,370 and $28,523 for the thirty-nine weeks ended September 29, 2023 and September 23, 2022, respectively. Immaterial Correction of Prior Period Errors and Disclosures During the third quarter of fiscal 2023, immaterial errors were identified in the calculation of the provision for income tax expense (benefit) for fiscal 2022, 2021 and 2020. The Company recorded an out of period adjustment of $2,135 to the provision for income tax expense during the thirteen and thirty-nine weeks ended September 29, 2023. The impact of these errors on prior periods would be to increase the provision for income tax expense by $1,308 for fiscal 2022 and to reduce the provision for income tax benefit by $719 and $108 for fiscal 2021 and 2020, respectively. During the first quarter of fiscal 2023 and subsequent to the issuance of the fiscal year 2022 consolidated financial statements, immaterial errors were identified in the weighted average remaining amortization period of intangible assets, the intangible asset amortization schedule and the debt maturity schedule. The weighted average remaining amortization period for customer relationships, non-compete agreements and trademarks were previously disclosed as 232 months, 73 months and 250 months instead of 117 months, 25 months and 165 months, respectively. This had a corresponding immaterial impact on the intangible asset amortization schedule. In addition, the debt maturity schedule previously included the $40,000 due upon maturity of the asset-based loan facility in the thereafter total instead of in the 2027 total. Further, the Company omitted that the asset-based loan facility and term loan are classified as Level 2 within the fair value hierarchy. These immaterial errors and omissions have been corrected in Note 4 “Fair Value Measurements”, Note 8 “Goodwill and Other Intangible Assets” and Note 9 “Debt Obligations”, within these condensed consolidated financial statements. |
Net Income per Share
Net Income per Share | 9 Months Ended |
Sep. 29, 2023 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The following table sets forth the computation of basic and diluted net income per common share: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Net income per share: Basic $ 0.19 $ 0.22 $ 0.49 $ 0.72 Diluted $ 0.19 $ 0.21 $ 0.49 $ 0.68 Weighted average common shares: Basic 37,692,588 37,120,926 37,611,179 37,047,653 Diluted 45,717,496 42,044,053 39,143,774 41,942,676 Reconciliation of net income per common share: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Numerator: Net income $ 7,322 $ 8,277 $ 18,590 $ 26,577 Add effect of dilutive securities Interest on convertible notes, net of tax 1,369 683 403 2,048 Net income available to common shareholders $ 8,691 $ 8,960 $ 18,993 $ 28,625 Denominator: Weighted average basic common shares outstanding 37,692,588 37,120,926 37,611,179 37,047,653 Dilutive effect of unvested common shares 594,416 316,358 580,675 304,391 Dilutive effect of stock options and warrants 37,675 81,789 54,073 65,652 Dilutive effect of convertible notes 7,392,817 4,524,980 897,847 4,524,980 Weighted average diluted common shares outstanding 45,717,496 42,044,053 39,143,774 41,942,676 Potentially dilutive securities that have been excluded from the calculation of diluted net income per common share because the effect is anti-dilutive are as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Restricted share awards (“RSAs”) 292,778 80,844 37,236 68,784 Stock options and warrants 300,000 — — — Convertible notes — 91,053 6,494,970 91,053 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value The Company’s contingent earn-out liabilities are measured at fair value. These liabilities were estimated using Level 3 inputs. Long-term earn-out liabilities were $1,757 and $10,483 as of September 29, 2023 and December 30, 2022, respectively, and are reflected as other liabilities and deferred credits on the condensed consolidated balance sheets. The remaining short-term earn-out liabilities are reflected as accrued liabilities on the condensed consolidated balance sheets. The fair value of contingent consideration was determined based on a probability-based approach which includes projected results, percentage probability of occurrence and the application of a discount rate to present value the payments. A significant change in projected results, discount rate, or probabilities of occurrence could result in a significantly higher or lower fair value measurement. Changes in the fair value of contingent earn-out liabilities are reflected in other operating expenses, net on the condensed consolidated statements of operations. The following table presents the changes in Level 3 contingent earn-out liabilities: Total Balance December 30, 2022 $ 17,294 Acquisition value 5,765 Cash payments (4,625) Changes in fair value 2,850 Balance September 29, 2023 $ 21,284 Fair Value of Financial Instruments The carrying amounts reported in the Company’s condensed consolidated balance sheets for accounts receivable and accounts payable approximate fair value due to the immediate to short-term nature of these financial instruments. The fair values of the asset-based loan facility and term loan approximated their book values as of September 29, 2023 and December 30, 2022 as these instruments had variable interest rates that reflected current market rates available to the Company and are classified as Level 2 fair value measurements. The following table presents the carrying value and fair value of the Company’s convertible notes and GreenLeaf Note. The fair value of the Company’s 2028 Convertible Senior Notes was based on Level 1 inputs. In estimating the fair value of its 2024 Convertible Senior Notes and Convertible Unsecured Note, the Company utilized Level 3 inputs including prevailing market interest rates to estimate the debt portion of the instrument and a Black Scholes valuation model to estimate the fair value of the conversion option. The Black Scholes model utilizes the market price of the Company’s common stock, estimates of the stock’s volatility and the prevailing risk-free interest rate in calculating the fair value estimate. The fair value of the GreenLeaf Note was determined based upon observable market prices of similar debt instruments. The Convertible Unsecured Note matured on June 29, 2023 and was repaid in full. September 29, 2023 December 30, 2022 Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value 2028 Convertible Senior Notes Level 1 $ 287,500 $ 233,421 $ 287,500 $ 292,531 2024 Convertible Senior Notes Level 3 $ 39,684 $ 37,270 $ 41,684 $ 43,723 GreenLeaf Note Level 2 $ 10,000 $ 9,821 $ — $ — Convertible Unsecured Note Level 3 $ — $ — $ 4,000 $ 4,345 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 29, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions GreenLeaf On May 1, 2023, the Company entered into a stock purchase agreement to acquire substantially all of the equity interests of Oakville Produce Partners, LLC (“GreenLeaf”), a leading produce and specialty food distributor in Northern California. The final purchase price was $86,124 consisting of $72,157 paid in cash at closing, $1,471 paid upon settlement of a net working capital true-up, the issuance of a $10,000 unsecured note and 75,008 shares of the Company’s common stock with an approximate value of $2,496 based on the trading price of the Company’s common stock on the date of acquisition. The acquisition was partially funded by a $40,000 incremental draw on the Company’s asset-based loan facility. The Company’s purchase price allocation is preliminary and is subject to revision pending the valuation of goodwill and intangible assets acquired. This valuation is incomplete as of September 29, 2023 as the Company is currently in the process of completing its assessment of valuation inputs and assumptions. When applicable, these valuations require the use of Level 3 inputs. All goodwill for the GreenLeaf acquisition will be amortized over 15 years for tax purposes. The goodwill recorded primarily reflects the value of acquiring an established specialty produce distributor to leverage the Company’s existing products in the markets served by GreenLeaf and any intangible assets that do not qualify for separate recognition, including assembled workforce. The intangible assets acquired consisted of customer relationships, trademarks and non-compete agreements valued at $38,900, $1,500, and $400 respectively, as of the acquisition date. The customer relationships are being amortized over an average of 7.5 years, the trademarks are being amortized over 5 years and the non-compete agreements are being amortized over 2 years. Hardie’s Fresh Foods On March 20, 2023, pursuant to an asset purchase agreement, the Company acquired substantially all of the assets of Hardie’s F&V, LLC (“Hardie’s Fresh Foods”), a specialty produce distributor with operations in Texas. The final purchase price was approximately $42,000, consisting of $38,000 paid in cash at closing, subject to customary net working capital adjustments, and an earn-out liability valued at approximately $4,000 as of the acquisition date. If earned, the earn-out liability could total up to $10,000 over a two-year period. The payment of the earn-out liability is subject to the successful achievement of certain EBITDA targets. The Company’s purchase price allocation is preliminary and is subject to revision pending the valuation of goodwill and intangible assets acquired. The valuation of tangible and intangible assets acquired is incomplete as of September 29, 2023. All goodwill for the Hardie’s Fresh Foods acquisition will be amortized over 15 years for tax purposes. The goodwill recorded primarily reflects the value of acquiring an established specialty produce distributor to leverage the Company’s existing products in the markets served by Hardie’s Fresh Foods and any intangible assets that do not qualify for separate recognition, including assembled workforce. The intangible assets acquired consisted of customer relationships and trademarks valued at $14,000 and $3,600, respectively, as of the acquisition date. The customer relationships and trademarks are being amortized over 10 years and 5 years, respectively. Other Fiscal 2023 Acquisitions During the thirty-nine weeks ended September 29, 2023, the Company completed three other acquisitions for an aggregate initial purchase price of approximately $17,744, consisting of $12,971 paid in cash at closing, $893 paid upon settlement of a net working capital adjustment, earn-out liabilities valued at approximately of $1,665 as of the dates of acquisition, and $2,215 of deferred payments. If earned, these earn-out liabilities could total up to $2,562 in the aggregate. The Company’s aggregate purchase price allocations are preliminary and is subject to revision pending the valuations of goodwill and intangible assets acquired. This valuation is incomplete as of September 29, 2023 as the Company is currently in the process of completing its assessment of valuation inputs and assumptions as well as opening working capital. When applicable, these valuations require the use of Level 3 inputs. All goodwill of $6,933 will be amortized over 15 years for tax purposes. The intangible assets acquired consisted of customer relationships valued at $4,276 as of the acquisition dates. The customer relationships are being amortized over 10 years. The Company reflected net sales and income before income taxes in its condensed consolidated statement of operations related to the fiscal 2023 acquisitions as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 29, 2023 Net sales $ 109,973 $ 230,376 Income before income taxes $ 4,164 $ 10,528 Chef Middle East On November 1, 2022, pursuant to a share sale and purchase agreement, the Company acquired substantially all of the shares of Chef Middle East LLC (“CME”), a specialty food distributor with operations in the United Arab Emirates, Qatar and Oman. The final purchase price was approximately $116,515, consisting of $108,749 paid in cash at closing, $166 paid upon settlement of a net working capital true-up, and an earn-out liability valued at $7,600 as of the date of acquisition. If earned, the earn-out liability could total up to $10,000 over a two-year period. The measurement period adjustments recorded through the second quarter of fiscal 2023 resulted in a goodwill increase of $735, a decrease in inventories of $735, an increase in the earn-out liability of $100, an increase in accrued liabilities of $313, a decrease in other assets of $82, and a decrease in deferred tax liabilities of $35. The valuation of tangible and intangible assets acquired has been completed as of September 29, 2023. The intangible assets acquired consisted of customer relationships, trademarks and non-compete agreements valued at $25,800, $11,400, and $320, respectively, as of the acquisition date. The customer relationships, trademarks and non-compete agreements are being amortized over 10, 15 and 3 years, respectively. The table below sets forth the total assets acquired and liabilities assumed: Chef Middle East Hardie’s Fresh Foods GreenLeaf Other Acquisitions Current assets $ 84,076 $ 26,475 $ 16,069 $ 9,697 Customer relationships 25,800 14,000 38,900 4,276 Trademarks 11,400 3,600 1,500 — Non-compete agreements 320 — 400 — Goodwill 24,548 12,346 36,155 6,933 Fixed assets 16,953 4,986 2,231 434 Other assets 859 146 109 — Deferred tax liability (3,600) — — (241) Right-of-use assets 5,321 13,303 2,026 3,258 Lease liabilities (5,321) (13,303) (2,026) (3,258) Current liabilities (43,841) (19,553) (9,240) (3,336) Other long-term liabilities — — — (19) Total $ 116,515 $ 42,000 $ 86,124 $ 17,744 The Company recognized professional fees related to acquisition activities of $710 and $728 during the thirteen weeks ended September 29, 2023 and September 23, 2022, respectively, and $3,338 and $1,747 during the thirty-nine weeks ended September 29, 2023 and September 23, 2022, respectively, presented within other operating expenses, net on the condensed consolidated statements of operations. Unaudited Pro forma Financial Information The table below presents unaudited pro forma condensed consolidated income statement information of the Company as if the GreenLeaf and Hardie’s Fresh Foods acquisitions had occurred on December 25, 2021, and the CME acquisition had occurred on December 26, 2020. The pro forma results were prepared from financial information obtained from the sellers of the business, as well as information obtained during the due diligence process associated with the acquisitions. The pro forma information is not necessarily indicative of the Company’s results of operations had the acquisitions been completed on the above date, nor is it necessarily indicative of the Company’s future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisitions, any incremental costs for transitioning to become a public company, and also does not reflect additional revenue opportunities following the acquisitions. The pro forma information reflects amortization and depreciation of the acquisitions at their respective fair value. The pro forma information also reflects additional interest expense that would have been incurred by the Company to finance the acquisitions. Pro forma interest expense was estimated based on the prevailing interest rates charged on the Company’s senior secured term loan during fiscal 2022. CME did not have a pro forma impact during the thirteen and thirty-nine weeks ended September 29, 2023 as it was included in the condensed consolidated results of operations for the entire period. Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Net sales $ 881,825 $ 800,158 $ 2,577,474 $ 2,238,390 Income before income taxes $ 14,170 $ 12,752 $ 30,479 $ 45,836 |
Inventories
Inventories | 9 Months Ended |
Sep. 29, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist primarily of finished product and are reflected net of adjustments for shrinkage, excess and obsolescence to approximate their net realizable value totaling $10,415 and $9,198 at September 29, 2023 and December 30, 2022, respectively. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment as of September 29, 2023 and December 30, 2022 consisted of the following: Useful Lives September 29, 2023 December 30, 2022 Land Indefinite $ 5,542 $ 5,542 Buildings 20 years 40,695 39,893 Machinery and equipment 5 - 10 years 36,655 32,107 Computers, data processing and other equipment 3 - 7 years 21,547 18,475 Software 3 - 7 years 48,814 42,609 Leasehold improvements 1 - 40 years 129,845 94,245 Furniture and fixtures 7 years 4,097 3,825 Vehicles 5 - 10 years 34,665 31,462 Construction-in-process 24,050 36,583 345,910 304,741 Less: accumulated depreciation and amortization (136,983) (119,013) Property and equipment, net $ 208,927 $ 185,728 Construction-in-process at September 29, 2023 related primarily to the build-out of the Company’s Richmond, CA and Miami, FL distribution facilities and at December 30, 2022 related primarily to the build-out of the Company’s Miami, Dallas and Richmond, CA distribution facilities and the implementation of the Company’s Enterprise Resource Planning system. The net book value of equipment financed under finance leases at September 29, 2023 and December 30, 2022 was $11,821 and $11,579, respectively. The components of depreciation and amortization expense were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Depreciation expense $ 7,017 $ 4,455 $ 19,691 $ 13,255 Software amortization $ 1,468 $ 1,457 $ 4,476 $ 4,412 $ 8,485 $ 5,912 $ 24,167 $ 17,667 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill are presented as follows: Carrying amount as of December 30, 2022 $ 287,120 Goodwill adjustments (1) 1,986 Acquisitions 55,434 Foreign currency translation (14) Carrying amount as of September 29, 2023 $ 344,526 (1) The goodwill adjustments represent measurement period adjustments related to certain acquisitions completed in the current and prior year. Other intangible assets as of September 29, 2023 and December 30, 2022 consisted of the following: September 29, 2023 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Amount Customer relationships 103 months $ 260,948 $ (98,590) $ 162,358 Trademarks 148 months 56,236 (19,640) 36,596 Non-compete agreements 20 months 9,299 (8,635) 664 Total $ 326,483 $ (126,865) $ 199,618 December 30, 2022 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Amount Customer relationships 117 months $ 205,608 $ (85,447) $ 120,161 Trademarks 165 months 51,137 (16,201) 34,936 Non-compete agreements 25 months 8,899 (8,293) 606 Total $ 265,644 $ (109,941) $ 155,703 Amortization expense for other intangibles was $6,468 and $3,470 for the thirteen weeks ended September 29, 2023 and September 23, 2022, respectively, and $16,924 and $10,289 for the thirty-nine weeks ended September 29, 2023 and September 23, 2022, respectively. The Company recognized a customer relationships intangible asset impairment charge of $1,838 related to the loss of a significant Hardie’s Fresh Foods customer post acquisition. The Company’s valuation of the Hardie’s Fresh Foods’ customer list intangible asset as of the acquisition date, a Level 3 measurement, was based on an income approach using the excess earnings method which requires significant assumptions including future sales forecasts and a discount rate. The impairment charge was measured by reducing its assumption of future sales for the significant customer lost post-acquisition to zero . The impairment charge is presented within other operating expenses, net on the condensed consolidated statements of operations. Estimated amortization expense for other intangible assets for the remainder of the fiscal year ending December 29, 2023 and each of the next four fiscal years and thereafter is as follows: 2023 $ 6,289 2024 24,939 2025 24,400 2026 24,204 2027 23,635 Thereafter 96,151 Total $ 199,618 |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 29, 2023 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations as of September 29, 2023 and December 30, 2022 consisted of the following: Weighted Average Effective Interest Rate at September 29, 2023 Maturity September 29, 2023 December 30, 2022 Senior secured term loans 10.83 % August 2029 $ 277,000 $ 299,250 2028 Convertible senior notes 2.77 % December 2028 287,500 287,500 2024 Convertible senior notes 2.34 % December 2024 39,684 41,684 Asset-based loan facility 7.25 % March 2027 90,000 40,000 Finance leases and other financing obligations 5.44 % Various 23,779 13,548 Convertible unsecured note — % June 2023 — 4,000 Unamortized deferred costs and premium (16,786) (20,050) Total debt obligations 701,177 665,932 Less: current installments (11,970) (12,428) Total debt obligations excluding current installments $ 689,207 $ 653,504 In connection with the GreenLeaf acquisition, the Company issued a $10,000 unsecured note bearing interest of 4.47%. The principal on the unsecured note is due in two equal installments on April 30, 2024 and 2025 and is presented under the caption “Finance leases and other financing obligations” in the table above. The convertible unsecured note matured on June 29, 2023 and was repaid in full, including all accrued interest, for $4,049 in cash. On July 7, 2023, the Company entered into a sixth amendment to the ABL Credit Agreement which increased the aggregate commitments to $300,000, up from $200,000, maturing on March 11, 2027. The sixth amendment to the ABL was accounted for as a debt modification. The Company incurred transaction costs of $354 which were capitalized as deferred financing fees to be amortized over the term of the ABL, presented in other non-current assets in the Company’s consolidated balance sheet. On August 31, 2023, the Company made a voluntary prepayment of $20,000 towards the senior secured term loan. In connection with the prepayment the Company wrote off unamortized deferred financing fees of $770 which are included in interest expense within the statement of operations. Maturities of the Company’s debt, excluding finance leases, for the remainder of the fiscal year ending December 29, 2023 and each of the next four fiscal years and thereafter is as follows: 2023 $ 750 2024 47,684 2025 8,000 2026 3,000 2027 93,000 Thereafter 551,750 Total $ 704,184 The net carrying value of the Company’s convertible notes as of September 29, 2023 and December 30, 2022 was: September 29, 2023 December 30, 2022 Principal Amount Unamortized Deferred Costs and Premium Net Amount Principal Amount Unamortized Deferred Costs and Premium Net Amount 2028 Convertible Senior Notes $ 287,500 $ (6,016) $ 281,484 $ 287,500 $ (6,876) $ 280,624 2024 Convertible Senior Notes 39,684 (232) 39,452 41,684 (373) 41,311 Convertible Unsecured Note — — — 4,000 — 4,000 Total $ 327,184 $ (6,248) $ 320,936 $ 333,184 $ (7,249) $ 325,935 The components of interest expense on the Company’s convertible notes were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Coupon interest $ 1,893 $ 938 $ 5,685 $ 2,813 Amortization of deferred costs and premium 333 224 1,001 672 Total interest $ 2,226 $ 1,162 $ 6,686 $ 3,485 As of September 29, 2023, the Company had reserved $27,970 of the asset-based loan facility for the issuance of letters of credit and funds totaling $149,757 were available for borrowing. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 29, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Equity Awards The following table reflects the activity of RSAs during the thirty-nine weeks ended September 29, 2023: Time-based Performance-based Market-based Shares Weighted Average Shares Weighted Average Shares Weighted Average Unvested at December 30, 2022 464,972 $ 31.74 335,425 $ 32.25 333,114 $ 30.30 Granted 234,070 32.23 742,744 33.17 87,942 28.84 Vested (215,726) 31.84 — — — — Forfeited (11,500) 34.31 — — — — Unvested at September 29, 2023 471,816 $ 31.87 1,078,169 $ 32.88 421,056 $ 30.00 The Company granted 1,064,756 RSAs to its employees at a weighted average grant date fair value of $32.60 during the thirty-nine weeks ended September 29, 2023. These awards are a mix of time-, market- and performance-based grants that generally vest over a range of periods up to five years. The Company recognized expense totaling $4,730 and $3,099 on its RSAs during the thirteen weeks ended September 29, 2023 and September 23, 2022, respectively, and $14,224 and $9,081 during the thirty-nine weeks ended September 29, 2023 and September 23, 2022, respectively. At September 29, 2023, the total unrecognized compensation cost for unvested RSAs was $30,006 and the weighted-average remaining period was approximately 2.5 years. Of this total, $10,915 related to RSAs with time-based vesting provisions and $19,091 related to RSAs with performance- and market-based vesting provisions. At September 29, 2023, the weighted-average remaining period for time-based vesting and performance-based vesting RSAs were approximately 2.2 years and 2.7 years, respectively. No share-based compensation expense related to the Company’s RSAs or stock options has been capitalized. As of September 29, 2023, there were 1,087,180 shares available for grant under the 2019 Omnibus Equity Incentive Plan. The following table summarizes stock option activity during the thirty-nine weeks ended September 29, 2023: Shares Weighted Aggregate Weighted Average Outstanding December 30, 2022 112,232 $ 20.23 $ 1,465 3.2 Exercised (2,705) 20.23 Outstanding September 29, 2023 109,527 $ 20.23 $ 104 2.4 Exercisable at September 29, 2023 109,527 20.23 $ 104 2.4 In connection with the CME acquisition, the Company issued stock awards to certain members of the CME management team which were classified as liabilities. These awards vest over a period of up to 4 years. Stock-based compensation expense for these awards was $544 and $0 during the thirteen weeks ended September 29, 2023 and September 23, 2022, respectively, and $1,631 and $0 during the thirty-nine weeks ended September 29, 2023 and September 23, 2022, respectively. The fair value of these awards was $1,994 and $362 as of September 29, 2023 and December 30, 2022, respectively, and is presented within Other liabilities and deferred credits on the Company’s condensed consolidated balance sheets. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 29, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties The Chefs’ Warehouse Mid-Atlantic, LLC, a subsidiary of the Company, leases a distribution facility that is 100% owned by entities controlled by Christopher Pappas, the Company’s Chairman, President and Chief Executive Officer, and John Pappas, the Company’s Vice Chairman and one of its directors, and are deemed to be affiliates of these individuals. Expense related to this facility totaled $123 during the thirteen weeks ended September 29, 2023 and September 23, 2022, and $369 during the thirty-nine weeks ended September 29, 2023 and September 23, 2022. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate was 48.3% and 27.0% for the thirteen weeks ended September 29, 2023 and September 23, 2022, respectively, and 36.8% and 27.0% for the thirty-nine weeks-ended September 29, 2023 and September 23, 2022, respectively. The higher effective tax rate for the thirteen and thirty-nine weeks ended September 29, 2023 is primarily due to a discrete $2,135 charge in the current period for return-to-provision adjustments related to certain nondeductible costs identified in the completion of the Company’s fiscal 2022 tax return and the impact of those adjustments on the fiscal 2023 estimated annual effective tax rate. The effective tax rate otherwise varies from the 21% statutory rate primarily due to state taxes. The Company’s income tax provision reflects the impact of an expected income tax refund receivable of $22,475 as of September 29, 2023 which is reflected in prepaid expenses and other current assets on the Company’s consolidated balance sheet. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 9 Months Ended |
Sep. 29, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 Supplemental cash flow disclosures: Cash paid for income taxes $ 17,574 $ 3,483 Cash paid for interest, net of cash received $ 28,339 $ 17,636 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28,203 $ 20,835 Operating cash flows from finance leases $ 524 $ 325 Other non-cash investing and financing activities ROU assets obtained in exchange for lease liabilities: Operating leases $ 42,991 $ 21,779 Finance leases $ 3,963 $ 791 Other non-cash investing and financing activities: Warrants issued for acquisitions $ — $ 1,701 Common stock issued for acquisitions $ 2,496 $ — Unsecured notes issued for acquisitions $ 10,000 $ — Contingent earn-out liabilities for acquisitions $ 5,765 $ 1,200 |
Operations and Basis of Prese_2
Operations and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period | The Company’s quarterly periods end on the thirteenth Friday of each quarter. Every six to seven years, the Company will add a fourteenth week to its fourth quarter to more closely align its year-end to the calendar year. |
Segment Reporting | The Company’s business consists of three operating segments: East, Midwest and West that aggregate into one reportable segment, foodservice distribution, which is concentrated primarily in the United States. |
Consolidation | The unaudited condensed consolidated financial statements include all the accounts of the Company and its direct and indirect wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Unaudited Interim Financial Statements | The accompanying unaudited condensed consolidated financial statements and the related interim information contained within the notes to such unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules of the Securities and Exchange Commission (“SEC”) for interim information and quarterly reports on Form 10-Q. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended December 30, 2022 filed as part of the Company’s Annual Report on Form 10-K, as filed with the SEC on February 28, 2023. The unaudited condensed consolidated financial statements appearing in this Form 10-Q have been prepared on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, as filed with the SEC on February 28, 2023, and in the opinion of management, include all normal recurring adjustments that are necessary for the fair statement of the Company’s interim period results. The year-end consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by GAAP. Due to seasonal fluctuations and other factors, the results of operations for the thirteen and thirty-nine weeks ended September 29, 2023 are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from management’s estimates. |
Revenue Recognition and Food Processing Costs | Revenues from product sales are recognized at the point at which control of each product is transferred to the customer. The Company’s contracts contain performance obligations which are satisfied when customers have physical possession of each product. The majority of customer orders are fulfilled within a day and customer payment terms are typically 14 to 60 days from delivery. Shipping and handling activities are costs to fulfill the Company’s performance obligations. These costs are expensed as incurred and presented within selling, general and administrative expenses on the condensed consolidated statements of operations. The Company offers certain sales incentives to customers in the form of rebates or discounts. These sales incentives are accounted for as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and records a corresponding reduction in revenue. The Company does not expect a |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table presents the Company’s net sales disaggregated by principal product category: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Center-of-the-Plate $ 333,809 37.9 % $ 280,272 42.3 % $ 980,120 39.5 % $ 803,334 44.1 % Specialty: Dry Goods 134,398 15.2 % 97,323 14.7 % 395,723 15.9 % 257,971 14.2 % Pastry 102,562 11.6 % 71,145 10.7 % 300,814 12.1 % 188,948 10.4 % Cheese and Charcuterie 64,639 7.3 % 54,989 8.3 % 185,303 7.5 % 146,155 8.0 % Produce 137,760 15.6 % 74,379 11.2 % 310,313 12.5 % 204,422 11.2 % Dairy and Eggs 56,849 6.4 % 38,719 5.9 % 163,600 6.6 % 102,405 5.6 % Oils and Vinegars 34,097 3.9 % 29,778 4.5 % 96,607 3.9 % 78,645 4.3 % Kitchen Supplies 17,711 2.1 % 15,251 2.4 % 50,810 2.0 % 40,183 2.2 % Total Specialty $ 548,016 62.1 % $ 381,584 57.7 % $ 1,503,170 60.5 % $ 1,018,729 55.9 % Total net sales $ 881,825 100 % $ 661,856 100 % $ 2,483,290 100 % $ 1,822,063 100 % |
Net Income per Share (Tables)
Net Income per Share (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net income per common share: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Net income per share: Basic $ 0.19 $ 0.22 $ 0.49 $ 0.72 Diluted $ 0.19 $ 0.21 $ 0.49 $ 0.68 Weighted average common shares: Basic 37,692,588 37,120,926 37,611,179 37,047,653 Diluted 45,717,496 42,044,053 39,143,774 41,942,676 |
Schedule of reconciliation of net income (loss) per common share | Reconciliation of net income per common share: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Numerator: Net income $ 7,322 $ 8,277 $ 18,590 $ 26,577 Add effect of dilutive securities Interest on convertible notes, net of tax 1,369 683 403 2,048 Net income available to common shareholders $ 8,691 $ 8,960 $ 18,993 $ 28,625 Denominator: Weighted average basic common shares outstanding 37,692,588 37,120,926 37,611,179 37,047,653 Dilutive effect of unvested common shares 594,416 316,358 580,675 304,391 Dilutive effect of stock options and warrants 37,675 81,789 54,073 65,652 Dilutive effect of convertible notes 7,392,817 4,524,980 897,847 4,524,980 Weighted average diluted common shares outstanding 45,717,496 42,044,053 39,143,774 41,942,676 |
Schedule of dilutive securities that have been excluded from the calculation of diluted net income (loss) per common share | Potentially dilutive securities that have been excluded from the calculation of diluted net income per common share because the effect is anti-dilutive are as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Restricted share awards (“RSAs”) 292,778 80,844 37,236 68,784 Stock options and warrants 300,000 — — — Convertible notes — 91,053 6,494,970 91,053 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of changes in Level 3 contingent consideration liability | The following table presents the changes in Level 3 contingent earn-out liabilities: Total Balance December 30, 2022 $ 17,294 Acquisition value 5,765 Cash payments (4,625) Changes in fair value 2,850 Balance September 29, 2023 $ 21,284 |
Schedule of carrying value and fair value of the Company's convertible subordinated notes | The following table presents the carrying value and fair value of the Company’s convertible notes and GreenLeaf Note. The fair value of the Company’s 2028 Convertible Senior Notes was based on Level 1 inputs. In estimating the fair value of its 2024 Convertible Senior Notes and Convertible Unsecured Note, the Company utilized Level 3 inputs including prevailing market interest rates to estimate the debt portion of the instrument and a Black Scholes valuation model to estimate the fair value of the conversion option. The Black Scholes model utilizes the market price of the Company’s common stock, estimates of the stock’s volatility and the prevailing risk-free interest rate in calculating the fair value estimate. The fair value of the GreenLeaf Note was determined based upon observable market prices of similar debt instruments. The Convertible Unsecured Note matured on June 29, 2023 and was repaid in full. September 29, 2023 December 30, 2022 Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value 2028 Convertible Senior Notes Level 1 $ 287,500 $ 233,421 $ 287,500 $ 292,531 2024 Convertible Senior Notes Level 3 $ 39,684 $ 37,270 $ 41,684 $ 43,723 GreenLeaf Note Level 2 $ 10,000 $ 9,821 $ — $ — Convertible Unsecured Note Level 3 $ — $ — $ 4,000 $ 4,345 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of pro forma consolidated statement of operations information | The Company reflected net sales and income before income taxes in its condensed consolidated statement of operations related to the fiscal 2023 acquisitions as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 29, 2023 Net sales $ 109,973 $ 230,376 Income before income taxes $ 4,164 $ 10,528 Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Net sales $ 881,825 $ 800,158 $ 2,577,474 $ 2,238,390 Income before income taxes $ 14,170 $ 12,752 $ 30,479 $ 45,836 |
Schedule of purchase price allocation | The table below sets forth the total assets acquired and liabilities assumed: Chef Middle East Hardie’s Fresh Foods GreenLeaf Other Acquisitions Current assets $ 84,076 $ 26,475 $ 16,069 $ 9,697 Customer relationships 25,800 14,000 38,900 4,276 Trademarks 11,400 3,600 1,500 — Non-compete agreements 320 — 400 — Goodwill 24,548 12,346 36,155 6,933 Fixed assets 16,953 4,986 2,231 434 Other assets 859 146 109 — Deferred tax liability (3,600) — — (241) Right-of-use assets 5,321 13,303 2,026 3,258 Lease liabilities (5,321) (13,303) (2,026) (3,258) Current liabilities (43,841) (19,553) (9,240) (3,336) Other long-term liabilities — — — (19) Total $ 116,515 $ 42,000 $ 86,124 $ 17,744 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of equipment, leasehold improvements and software | Property and equipment as of September 29, 2023 and December 30, 2022 consisted of the following: Useful Lives September 29, 2023 December 30, 2022 Land Indefinite $ 5,542 $ 5,542 Buildings 20 years 40,695 39,893 Machinery and equipment 5 - 10 years 36,655 32,107 Computers, data processing and other equipment 3 - 7 years 21,547 18,475 Software 3 - 7 years 48,814 42,609 Leasehold improvements 1 - 40 years 129,845 94,245 Furniture and fixtures 7 years 4,097 3,825 Vehicles 5 - 10 years 34,665 31,462 Construction-in-process 24,050 36,583 345,910 304,741 Less: accumulated depreciation and amortization (136,983) (119,013) Property and equipment, net $ 208,927 $ 185,728 The components of depreciation and amortization expense were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Depreciation expense $ 7,017 $ 4,455 $ 19,691 $ 13,255 Software amortization $ 1,468 $ 1,457 $ 4,476 $ 4,412 $ 8,485 $ 5,912 $ 24,167 $ 17,667 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill are presented as follows: Carrying amount as of December 30, 2022 $ 287,120 Goodwill adjustments (1) 1,986 Acquisitions 55,434 Foreign currency translation (14) Carrying amount as of September 29, 2023 $ 344,526 |
Schedule of other intangible assets | Other intangible assets as of September 29, 2023 and December 30, 2022 consisted of the following: September 29, 2023 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Amount Customer relationships 103 months $ 260,948 $ (98,590) $ 162,358 Trademarks 148 months 56,236 (19,640) 36,596 Non-compete agreements 20 months 9,299 (8,635) 664 Total $ 326,483 $ (126,865) $ 199,618 December 30, 2022 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Amount Customer relationships 117 months $ 205,608 $ (85,447) $ 120,161 Trademarks 165 months 51,137 (16,201) 34,936 Non-compete agreements 25 months 8,899 (8,293) 606 Total $ 265,644 $ (109,941) $ 155,703 |
Schedule of estimated future amortization expense | Estimated amortization expense for other intangible assets for the remainder of the fiscal year ending December 29, 2023 and each of the next four fiscal years and thereafter is as follows: 2023 $ 6,289 2024 24,939 2025 24,400 2026 24,204 2027 23,635 Thereafter 96,151 Total $ 199,618 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | Debt obligations as of September 29, 2023 and December 30, 2022 consisted of the following: Weighted Average Effective Interest Rate at September 29, 2023 Maturity September 29, 2023 December 30, 2022 Senior secured term loans 10.83 % August 2029 $ 277,000 $ 299,250 2028 Convertible senior notes 2.77 % December 2028 287,500 287,500 2024 Convertible senior notes 2.34 % December 2024 39,684 41,684 Asset-based loan facility 7.25 % March 2027 90,000 40,000 Finance leases and other financing obligations 5.44 % Various 23,779 13,548 Convertible unsecured note — % June 2023 — 4,000 Unamortized deferred costs and premium (16,786) (20,050) Total debt obligations 701,177 665,932 Less: current installments (11,970) (12,428) Total debt obligations excluding current installments $ 689,207 $ 653,504 |
Schedule of debt maturities | Maturities of the Company’s debt, excluding finance leases, for the remainder of the fiscal year ending December 29, 2023 and each of the next four fiscal years and thereafter is as follows: 2023 $ 750 2024 47,684 2025 8,000 2026 3,000 2027 93,000 Thereafter 551,750 Total $ 704,184 |
Schedule of convertible senior notes | The net carrying value of the Company’s convertible notes as of September 29, 2023 and December 30, 2022 was: September 29, 2023 December 30, 2022 Principal Amount Unamortized Deferred Costs and Premium Net Amount Principal Amount Unamortized Deferred Costs and Premium Net Amount 2028 Convertible Senior Notes $ 287,500 $ (6,016) $ 281,484 $ 287,500 $ (6,876) $ 280,624 2024 Convertible Senior Notes 39,684 (232) 39,452 41,684 (373) 41,311 Convertible Unsecured Note — — — 4,000 — 4,000 Total $ 327,184 $ (6,248) $ 320,936 $ 333,184 $ (7,249) $ 325,935 |
Schedule of components of interest expense | The components of interest expense on the Company’s convertible notes were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 September 29, 2023 September 23, 2022 Coupon interest $ 1,893 $ 938 $ 5,685 $ 2,813 Amortization of deferred costs and premium 333 224 1,001 672 Total interest $ 2,226 $ 1,162 $ 6,686 $ 3,485 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of restricted stock awards activity | The following table reflects the activity of RSAs during the thirty-nine weeks ended September 29, 2023: Time-based Performance-based Market-based Shares Weighted Average Shares Weighted Average Shares Weighted Average Unvested at December 30, 2022 464,972 $ 31.74 335,425 $ 32.25 333,114 $ 30.30 Granted 234,070 32.23 742,744 33.17 87,942 28.84 Vested (215,726) 31.84 — — — — Forfeited (11,500) 34.31 — — — — Unvested at September 29, 2023 471,816 $ 31.87 1,078,169 $ 32.88 421,056 $ 30.00 |
Share-based payment arrangement, option, activity | The following table summarizes stock option activity during the thirty-nine weeks ended September 29, 2023: Shares Weighted Aggregate Weighted Average Outstanding December 30, 2022 112,232 $ 20.23 $ 1,465 3.2 Exercised (2,705) 20.23 Outstanding September 29, 2023 109,527 $ 20.23 $ 104 2.4 Exercisable at September 29, 2023 109,527 20.23 $ 104 2.4 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash flow information | Thirty-Nine Weeks Ended September 29, 2023 September 23, 2022 Supplemental cash flow disclosures: Cash paid for income taxes $ 17,574 $ 3,483 Cash paid for interest, net of cash received $ 28,339 $ 17,636 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28,203 $ 20,835 Operating cash flows from finance leases $ 524 $ 325 Other non-cash investing and financing activities ROU assets obtained in exchange for lease liabilities: Operating leases $ 42,991 $ 21,779 Finance leases $ 3,963 $ 791 Other non-cash investing and financing activities: Warrants issued for acquisitions $ — $ 1,701 Common stock issued for acquisitions $ 2,496 $ — Unsecured notes issued for acquisitions $ 10,000 $ — Contingent earn-out liabilities for acquisitions $ 5,765 $ 1,200 |
Operations and Basis of Prese_3
Operations and Basis of Presentation - Narrative (Details) | 9 Months Ended |
Sep. 29, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | Dec. 30, 2022 | Dec. 24, 2021 | Dec. 25, 2020 | |
Disaggregation of Revenue [Line Items] | |||||||
Net sales | $ 881,825 | $ 661,856 | $ 2,483,290 | $ 1,822,063 | |||
Cost of food processing | 19,081 | 10,089 | 47,370 | 28,523 | |||
Provision for income tax expense (benefit) | 6,848 | 3,061 | 10,807 | 9,829 | |||
Total Specialty | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Net sales | 548,016 | 381,584 | 1,503,170 | 1,018,729 | |||
Revision of prior period, error correction, adjustment | Immaterial correction of prior period errors | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Prior period reclassification adjustment | $ 2,135 | $ 2,135 | |||||
Provision for income tax expense (benefit) | $ 1,308 | $ (719) | $ (108) | ||||
Revision of prior period, error correction, adjustment | Immaterial correction of prior period errors | Capital Seaboard | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Net sales | $ 100,009 | ||||||
Revision of prior period, error correction, adjustment | Immaterial correction of prior period errors | Total Specialty | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Net sales | $ 35,077 | ||||||
Asset-based loan facility | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Long-term debt, maturity, year five | 40,000 | ||||||
Asset-based loan facility | As Reported | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Long-term debt, maturity, after year five | $ 40,000 | ||||||
Customer relationships | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Weighted-average remaining amortization period (in months) | 103 months | 103 months | 117 months | ||||
Customer relationships | As Reported | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Weighted-average remaining amortization period (in months) | 232 months | ||||||
Non-compete agreements | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Weighted-average remaining amortization period (in months) | 20 months | 20 months | 25 months | ||||
Non-compete agreements | As Reported | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Weighted-average remaining amortization period (in months) | 73 months | ||||||
Trademarks | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Weighted-average remaining amortization period (in months) | 148 months | 148 months | 165 months | ||||
Trademarks | As Reported | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Weighted-average remaining amortization period (in months) | 250 months | ||||||
Minimum | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Payment term for contracts with customers (in days) | 14 days | ||||||
Maximum | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Payment term for contracts with customers (in days) | 60 days |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 881,825 | $ 661,856 | $ 2,483,290 | $ 1,822,063 |
Net Sales | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total net sales | 100% | 100% | 100% | 100% |
Total Specialty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 548,016 | $ 381,584 | $ 1,503,170 | $ 1,018,729 |
Total Specialty | Net Sales | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total net sales | 62.10% | 57.70% | 60.50% | 55.90% |
Center-of-the-Plate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 333,809 | $ 280,272 | $ 980,120 | $ 803,334 |
Center-of-the-Plate | Net Sales | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total net sales | 37.90% | 42.30% | 39.50% | 44.10% |
Dry Goods | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 134,398 | $ 97,323 | $ 395,723 | $ 257,971 |
Dry Goods | Net Sales | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total net sales | 15.20% | 14.70% | 15.90% | 14.20% |
Pastry | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 102,562 | $ 71,145 | $ 300,814 | $ 188,948 |
Pastry | Net Sales | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total net sales | 11.60% | 10.70% | 12.10% | 10.40% |
Cheese and Charcuterie | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 64,639 | $ 54,989 | $ 185,303 | $ 146,155 |
Cheese and Charcuterie | Net Sales | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total net sales | 7.30% | 8.30% | 7.50% | 8% |
Produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 137,760 | $ 74,379 | $ 310,313 | $ 204,422 |
Produce | Net Sales | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total net sales | 15.60% | 11.20% | 12.50% | 11.20% |
Dairy and Eggs | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 56,849 | $ 38,719 | $ 163,600 | $ 102,405 |
Dairy and Eggs | Net Sales | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total net sales | 6.40% | 5.90% | 6.60% | 5.60% |
Oils and Vinegars | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 34,097 | $ 29,778 | $ 96,607 | $ 78,645 |
Oils and Vinegars | Net Sales | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total net sales | 3.90% | 4.50% | 3.90% | 4.30% |
Kitchen Supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 17,711 | $ 15,251 | $ 50,810 | $ 40,183 |
Kitchen Supplies | Net Sales | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total net sales | 2.10% | 2.40% | 2% | 2.20% |
Net Income per Share - Computat
Net Income per Share - Computation of Basic and Diluted Earnings per Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.19 | $ 0.22 | $ 0.49 | $ 0.72 |
Diluted (in dollars per share) | $ 0.19 | $ 0.21 | $ 0.49 | $ 0.68 |
Weighted average common shares: | ||||
Basic (in shares) | 37,692,588 | 37,120,926 | 37,611,179 | 37,047,653 |
Diluted (in shares) | 45,717,496 | 42,044,053 | 39,143,774 | 41,942,676 |
Net Income per Share - Schedule
Net Income per Share - Schedule of Reconciliation of Earnings per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 23, 2022 | Jun. 24, 2022 | Mar. 25, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Numerator: | ||||||||
Net income | $ 7,322 | $ 9,867 | $ 1,401 | $ 8,277 | $ 16,915 | $ 1,385 | $ 18,590 | $ 26,577 |
Add effect of dilutive securities | ||||||||
Interest on convertible notes, net of tax | 1,369 | 683 | 403 | 2,048 | ||||
Net income available to common shareholders | $ 8,691 | $ 8,960 | $ 18,993 | $ 28,625 | ||||
Denominator: | ||||||||
Weighted average basic common shares outstanding (in shares) | 37,692,588 | 37,120,926 | 37,611,179 | 37,047,653 | ||||
Dilutive effect of unvested common shares (in shares) | 594,416 | 316,358 | 580,675 | 304,391 | ||||
Dilutive effect of stock options and warrants (in shares) | 37,675 | 81,789 | 54,073 | 65,652 | ||||
Dilutive effect of convertible notes (in shares) | 7,392,817 | 4,524,980 | 897,847 | 4,524,980 | ||||
Weighted average diluted common shares outstanding (in shares) | 45,717,496 | 42,044,053 | 39,143,774 | 41,942,676 |
Net Income per Share - Schedu_2
Net Income per Share - Schedule of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Restricted share awards (“RSAs”) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 292,778 | 80,844 | 37,236 | 68,784 |
Stock options and warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 300,000 | 0 | 0 | 0 |
Convertible notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 0 | 91,053 | 6,494,970 | 91,053 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 30, 2022 |
Fair Value Disclosures [Abstract] | ||
Long-term earn-out liabilities | $ 1,757 | $ 10,483 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Level 3 Contingent Consideration Liability (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2023 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at beginning of period | $ 17,294 |
Acquisition value | 5,765 |
Cash payments | (4,625) |
Changes in fair value | 2,850 |
Balance at end of period | $ 21,284 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of the Carrying Value and Fair Value of Convertible Subordinated Notes (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 30, 2022 |
Senior Notes | Carrying Value | Level 1 | 2028 Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes | $ 287,500 | $ 287,500 |
Senior Notes | Carrying Value | Level 3 | 2024 Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes | 39,684 | 41,684 |
Senior Notes | Fair Value | Level 1 | 2028 Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes | 233,421 | 292,531 |
Senior Notes | Fair Value | Level 3 | 2024 Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes | 37,270 | 43,723 |
Unsecured Notes | Carrying Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
GreenLeaf Note | 10,000 | |
Unsecured Notes | Carrying Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes | 4,000 | |
Unsecured Notes | Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
GreenLeaf Note | $ 9,821 | |
Unsecured Notes | Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes | $ 4,345 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
May 01, 2023 USD ($) shares | Mar. 20, 2023 USD ($) | Nov. 01, 2022 USD ($) | Sep. 29, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 23, 2022 USD ($) | Sep. 29, 2023 USD ($) acquisition | Sep. 23, 2022 USD ($) | Dec. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 344,526 | $ 344,526 | $ 287,120 | ||||||
Increase in goodwill | 1,986 | ||||||||
Professional fees | 710 | $ 728 | 3,338 | $ 1,747 | |||||
Asset-based loan facility | |||||||||
Business Acquisition [Line Items] | |||||||||
Long-term debt | $ 90,000 | $ 90,000 | $ 40,000 | ||||||
GreenLeaf | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price | $ 86,124 | ||||||||
Cash amount paid | 72,157 | ||||||||
Net working capital adjustment | 1,471 | ||||||||
Deferred payments | $ 10,000 | ||||||||
Shares of common stock acquired (in shares) | shares | 75,008 | ||||||||
Goodwill, useful life | 15 years | 15 years | |||||||
Other acquisitions, aggregate initial purchase price | $ 86,124 | ||||||||
Goodwill | 36,155 | ||||||||
GreenLeaf | Trademarks | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | 1,500 | ||||||||
Finite-lived intangible asset, useful life | 5 years | 5 years | |||||||
GreenLeaf | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | 38,900 | ||||||||
GreenLeaf | Non-compete agreements | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | 400 | ||||||||
Finite-lived intangible asset, useful life | 2 years | 2 years | |||||||
GreenLeaf | Customer relationships and trademark | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible asset, useful life | 7 years 6 months | 7 years 6 months | |||||||
GreenLeaf | Common Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Approximate value of common stock acquired | 2,496 | ||||||||
GreenLeaf | Asset-based loan facility | |||||||||
Business Acquisition [Line Items] | |||||||||
Long-term debt | $ 40,000 | ||||||||
Hardie’s Fresh Foods | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price | $ 42,000 | ||||||||
Cash amount paid | 38,000 | ||||||||
Goodwill, useful life | 15 years | 15 years | |||||||
Business combination, contingent consideration, liability | 4,000 | ||||||||
Estimated fair value of contingent earn-out liability | $ 10,000 | ||||||||
Business combination, contingent consideration, liability, term | 2 years | ||||||||
Other acquisitions, aggregate initial purchase price | $ 42,000 | ||||||||
Goodwill | 12,346 | ||||||||
Hardie’s Fresh Foods | Trademarks | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | $ 3,600 | ||||||||
Finite-lived intangible asset, useful life | 5 years | ||||||||
Hardie’s Fresh Foods | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | $ 14,000 | ||||||||
Finite-lived intangible asset, useful life | 10 years | ||||||||
Hardie’s Fresh Foods | Non-compete agreements | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | $ 0 | ||||||||
Other Acquisitions | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash amount paid | $ 12,971 | ||||||||
Net working capital adjustment | 893 | ||||||||
Deferred payments | $ 2,215 | ||||||||
Goodwill, useful life | 15 years | 15 years | |||||||
Estimated fair value of contingent earn-out liability | $ 2,562 | ||||||||
Number of acquisitions | acquisition | 3 | ||||||||
Other acquisitions, aggregate initial purchase price | $ 17,744 | $ 17,744 | |||||||
Goodwill | 6,933 | 6,933 | |||||||
Other Acquisitions | Trademarks | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | 0 | 0 | |||||||
Other Acquisitions | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | $ 4,276 | $ 4,276 | |||||||
Finite-lived intangible asset, useful life | 10 years | 10 years | |||||||
Other Acquisitions | Non-compete agreements | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | $ 0 | $ 0 | |||||||
Other Acquisitions | Other Fiscal 2023 Acquisition Date Earn-Out Liability | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination, contingent consideration, liability | $ 1,665 | $ 1,665 | |||||||
Chef Middle East | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price | $ 116,515 | ||||||||
Cash amount paid | 108,749 | ||||||||
Net working capital adjustment | 166 | ||||||||
Business combination, contingent consideration, liability | 7,600 | ||||||||
Estimated fair value of contingent earn-out liability | $ 10,000 | ||||||||
Business combination, contingent consideration, liability, term | 2 years | ||||||||
Other acquisitions, aggregate initial purchase price | $ 116,515 | ||||||||
Goodwill | 24,548 | ||||||||
Increase in goodwill | $ 735 | ||||||||
Decrease in inventory | 735 | ||||||||
Increase in earn-out liability | 100 | ||||||||
Increase in accrued liabilities | 313 | ||||||||
Decrease in other assets | 82 | ||||||||
Decrease in deferred tax liabilities | $ 35 | ||||||||
Chef Middle East | Trademarks | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | $ 11,400 | ||||||||
Finite-lived intangible asset, useful life | 15 years | ||||||||
Chef Middle East | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | $ 25,800 | ||||||||
Finite-lived intangible asset, useful life | 10 years | ||||||||
Chef Middle East | Non-compete agreements | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets | $ 320 | ||||||||
Finite-lived intangible asset, useful life | 3 years |
Acquisitions - Pro Forma Consol
Acquisitions - Pro Forma Consolidated Statement of Operations Information (Details) - Other Acquisitions - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Business Acquisition [Line Items] | ||||
Net sales | $ 109,973 | $ 230,376 | ||
Income before income taxes | 4,164 | 10,528 | ||
Net sales | 881,825 | $ 800,158 | 2,577,474 | $ 2,238,390 |
Income before income taxes | $ 14,170 | $ 12,752 | $ 30,479 | $ 45,836 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | May 01, 2023 | Mar. 20, 2023 | Dec. 30, 2022 | Nov. 01, 2022 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 344,526 | $ 287,120 | |||
Chef Middle East | |||||
Business Acquisition [Line Items] | |||||
Current assets | $ 84,076 | ||||
Goodwill | 24,548 | ||||
Fixed assets | 16,953 | ||||
Other assets | 859 | ||||
Deferred tax liability | (3,600) | ||||
Right-of-use assets | 5,321 | ||||
Lease liabilities | (5,321) | ||||
Current liabilities | (43,841) | ||||
Other long-term liabilities | 0 | ||||
Total | 116,515 | ||||
Chef Middle East | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | 25,800 | ||||
Chef Middle East | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | 11,400 | ||||
Chef Middle East | Non-compete agreements | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 320 | ||||
Hardie’s Fresh Foods | |||||
Business Acquisition [Line Items] | |||||
Current assets | $ 26,475 | ||||
Goodwill | 12,346 | ||||
Fixed assets | 4,986 | ||||
Other assets | 146 | ||||
Deferred tax liability | 0 | ||||
Right-of-use assets | 13,303 | ||||
Lease liabilities | (13,303) | ||||
Current liabilities | (19,553) | ||||
Other long-term liabilities | 0 | ||||
Total | 42,000 | ||||
Hardie’s Fresh Foods | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | 14,000 | ||||
Hardie’s Fresh Foods | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | 3,600 | ||||
Hardie’s Fresh Foods | Non-compete agreements | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 0 | ||||
GreenLeaf | |||||
Business Acquisition [Line Items] | |||||
Current assets | $ 16,069 | ||||
Goodwill | 36,155 | ||||
Fixed assets | 2,231 | ||||
Other assets | 109 | ||||
Deferred tax liability | 0 | ||||
Right-of-use assets | 2,026 | ||||
Lease liabilities | (2,026) | ||||
Current liabilities | (9,240) | ||||
Other long-term liabilities | 0 | ||||
Total | 86,124 | ||||
GreenLeaf | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | 38,900 | ||||
GreenLeaf | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | 1,500 | ||||
GreenLeaf | Non-compete agreements | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 400 | ||||
Other Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Current assets | 9,697 | ||||
Goodwill | 6,933 | ||||
Fixed assets | 434 | ||||
Other assets | 0 | ||||
Deferred tax liability | (241) | ||||
Right-of-use assets | 3,258 | ||||
Lease liabilities | (3,258) | ||||
Current liabilities | (3,336) | ||||
Other long-term liabilities | (19) | ||||
Total | 17,744 | ||||
Other Acquisitions | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | 4,276 | ||||
Other Acquisitions | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | 0 | ||||
Other Acquisitions | Non-compete agreements | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 0 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Reserves for shrinkage, excess and obsolescence | $ 10,415 | $ 9,198 |
Property and Equipment - Equipm
Property and Equipment - Equipment, Leasehold Improvements, and Software (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 345,910 | $ 304,741 |
Less: accumulated depreciation and amortization | (136,983) | (119,013) |
Property and equipment, net | 208,927 | 185,728 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 5,542 | 5,542 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 20 years | |
Equipment, leasehold improvements and software, gross | $ 40,695 | 39,893 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 36,655 | 32,107 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 5 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 10 years | |
Computers, data processing and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 21,547 | 18,475 |
Computers, data processing and other equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 3 years | |
Computers, data processing and other equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 7 years | |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 48,814 | 42,609 |
Software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 3 years | |
Software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 7 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 129,845 | 94,245 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 1 year | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 40 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 7 years | |
Equipment, leasehold improvements and software, gross | $ 4,097 | 3,825 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 34,665 | 31,462 |
Vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 5 years | |
Vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 10 years | |
Construction-in-process | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 24,050 | $ 36,583 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Net book value of equipment | $ 208,927 | $ 185,728 |
Assets held under finance leases | ||
Property, Plant and Equipment [Line Items] | ||
Net book value of equipment | $ 11,821 | $ 11,579 |
Property and Equipment - Compon
Property and Equipment - Components of Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense and amortization | $ 8,485 | $ 5,912 | $ 24,167 | $ 17,667 |
Depreciation expense | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense and amortization | 7,017 | 4,455 | 19,691 | 13,255 |
Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense and amortization | $ 1,468 | $ 1,457 | $ 4,476 | $ 4,412 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 287,120 |
Goodwill adjustments | 1,986 |
Acquisitions | 55,434 |
Foreign currency translation | (14) |
Ending balance | $ 344,526 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 326,483 | $ 265,644 |
Accumulated Amortization | (126,865) | (109,941) |
Net Amount | $ 199,618 | $ 155,703 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Amortization Period (in months) | 103 months | 117 months |
Gross Carrying Amount | $ 260,948 | $ 205,608 |
Accumulated Amortization | (98,590) | (85,447) |
Net Amount | $ 162,358 | $ 120,161 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Amortization Period (in months) | 148 months | 165 months |
Gross Carrying Amount | $ 56,236 | $ 51,137 |
Accumulated Amortization | (19,640) | (16,201) |
Net Amount | $ 36,596 | $ 34,936 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Amortization Period (in months) | 20 months | 25 months |
Gross Carrying Amount | $ 9,299 | $ 8,899 |
Accumulated Amortization | (8,635) | (8,293) |
Net Amount | $ 664 | $ 606 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 6,468 | $ 3,470 | $ 16,924 | $ 10,289 |
Intangible asset impairment | $ 1,838 | $ 0 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Future amortization (Details) $ in Thousands | Sep. 29, 2023 USD ($) |
Estimated amortization in fiscal year: | |
2023 | $ 6,289 |
2024 | 24,939 |
2025 | 24,400 |
2026 | 24,204 |
2027 | 23,635 |
Thereafter | 96,151 |
Total | $ 199,618 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | May 01, 2023 | Dec. 30, 2022 |
Debt Instrument [Line Items] | |||
Finance leases and other financing obligations, weighted-average discount rate | 5.44% | ||
Finance leases and other financing obligations | $ 23,779 | $ 13,548 | |
Unamortized deferred costs and premium | (16,786) | (20,050) | |
Total debt obligations | 701,177 | 665,932 | |
Less: current installments | (11,970) | (12,428) | |
Total debt obligations excluding current installments | $ 689,207 | 653,504 | |
Senior secured term loans | Senior secured term loans | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 10.83% | ||
Long-term debt | $ 277,000 | 299,250 | |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | 327,184 | 333,184 | |
Unamortized deferred costs and premium | $ (6,248) | (7,249) | |
Convertible Debt | 2028 Convertible senior notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 2.77% | ||
Long-term debt | $ 287,500 | 287,500 | |
Unamortized deferred costs and premium | $ (6,016) | (6,876) | |
Convertible Debt | 2024 Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 2.34% | ||
Long-term debt | $ 39,684 | 41,684 | |
Unamortized deferred costs and premium | $ (232) | (373) | |
Asset-based loan facility | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 7.25% | ||
Long-term debt | $ 90,000 | 40,000 | |
Asset-based loan facility | GreenLeaf | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 40,000 | ||
Convertible unsecured note | |||
Debt Instrument [Line Items] | |||
Convertible unsecured note, interest rate | 0% | ||
Long-term debt | $ 0 | $ 4,000 | |
Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.47% |
Debt Obligations - Narrative (D
Debt Obligations - Narrative (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Jun. 29, 2023 | May 01, 2023 | Sep. 29, 2023 | Jul. 07, 2023 | Jul. 06, 2023 |
Asset-based loan facility | Senior secured term loans | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 300,000 | $ 200,000 | ||||
Debt issuance costs, net | $ 354 | |||||
Senior secured term loans | Senior secured term loans | ||||||
Debt Instrument [Line Items] | ||||||
Voluntary prepayment | $ 20,000 | |||||
Unamortized deferred financing fees written off | $ 770 | |||||
Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 4.47% | |||||
Convertible unsecured note | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of long-term debt | $ 4,049 | |||||
GreenLeaf | ||||||
Debt Instrument [Line Items] | ||||||
Deferred payments | $ 10,000 |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Maturities of the Company's Debt (Details) $ in Thousands | Sep. 29, 2023 USD ($) |
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | |
2023 | $ 750 |
2024 | 47,684 |
2025 | 8,000 |
2026 | 3,000 |
2027 | 93,000 |
Thereafter | 551,750 |
Total | $ 704,184 |
Debt Obligations - Schedule o_3
Debt Obligations - Schedule of Convertible Senior Notes (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 30, 2022 |
Debt Instrument [Line Items] | ||
Deferred Costs and Premiums | $ (16,786) | $ (20,050) |
Total | 704,184 | |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Principal Amount | 327,184 | 333,184 |
Deferred Costs and Premiums | (6,248) | (7,249) |
Total | 320,936 | 325,935 |
Convertible Debt | 2028 Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Amount | 287,500 | 287,500 |
Deferred Costs and Premiums | (6,016) | (6,876) |
Total | 281,484 | 280,624 |
Convertible Debt | 2024 Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Amount | 39,684 | 41,684 |
Deferred Costs and Premiums | (232) | (373) |
Total | 39,452 | 41,311 |
Convertible Debt | Convertible unsecured note | ||
Debt Instrument [Line Items] | ||
Principal Amount | 0 | 4,000 |
Deferred Costs and Premiums | 0 | 0 |
Total | $ 0 | $ 4,000 |
Debt Obligations - Schedule o_4
Debt Obligations - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Debt Instrument [Line Items] | ||||
Amounts reserved for issuance of letters of credit | $ 27,970 | $ 27,970 | ||
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Coupon interest | 1,893 | $ 938 | 5,685 | $ 2,813 |
Amortization of deferred costs and premium | 333 | 224 | 1,001 | 672 |
Total interest | 2,226 | $ 1,162 | 6,686 | $ 3,485 |
Senior secured term loans | Asset-based loan facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, current borrowing capacity | $ 149,757 | $ 149,757 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Awards (Details) | 9 Months Ended |
Sep. 29, 2023 $ / shares shares | |
Time-based | |
Shares | |
Unvested at beginning balance (in shares) | shares | 464,972 |
Granted (in shares) | shares | 234,070 |
Vested (in shares) | shares | (215,726) |
Forfeited (in shares) | shares | (11,500) |
Unvested at ending balance (in shares) | shares | 471,816 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning balance (in usd per shares) | $ / shares | $ 31.74 |
Granted (in usd per share) | $ / shares | 32.23 |
Vested (in usd per share) | $ / shares | 31.84 |
Forfeited (in usd per share) | $ / shares | 34.31 |
Unvested at ending balance (in usd per shares) | $ / shares | $ 31.87 |
Performance-based | |
Shares | |
Unvested at beginning balance (in shares) | shares | 335,425 |
Granted (in shares) | shares | 742,744 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Unvested at ending balance (in shares) | shares | 1,078,169 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning balance (in usd per shares) | $ / shares | $ 32.25 |
Granted (in usd per share) | $ / shares | 33.17 |
Vested (in usd per share) | $ / shares | 0 |
Forfeited (in usd per share) | $ / shares | 0 |
Unvested at ending balance (in usd per shares) | $ / shares | $ 32.88 |
Market-based | |
Shares | |
Unvested at beginning balance (in shares) | shares | 333,114 |
Granted (in shares) | shares | 87,942 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Unvested at ending balance (in shares) | shares | 421,056 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning balance (in usd per shares) | $ / shares | $ 30.30 |
Granted (in usd per share) | $ / shares | 28.84 |
Vested (in usd per share) | $ / shares | 0 |
Forfeited (in usd per share) | $ / shares | 0 |
Unvested at ending balance (in usd per shares) | $ / shares | $ 30 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | Dec. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense, capitalized | $ 0 | ||||
Number of shares available for grant (in shares) | 1,087,180 | 1,087,180 | |||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 1,064,756 | ||||
Weighted average grant date fair value (in usd per share) | $ 32.60 | ||||
Recognized expense | $ 4,730,000 | $ 3,099,000 | $ 14,224,000 | $ 9,081,000 | |
Total unrecognized compensation cost, RSAs | $ 30,006,000 | $ 30,006,000 | |||
Weighted average remaining term (in years) | 2 years 6 months | ||||
Time , Market, And Performance Based Grants | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 5 years | ||||
Time-based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 234,070 | ||||
Weighted average grant date fair value (in usd per share) | $ 32.23 | ||||
Total unrecognized compensation cost, RSAs | $ 10,915,000 | $ 10,915,000 | |||
Weighted average remaining term (in years) | 2 years 2 months 12 days | ||||
Performance-based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 742,744 | ||||
Weighted average grant date fair value (in usd per share) | $ 33.17 | ||||
Total unrecognized compensation cost, RSAs | 19,091,000 | $ 19,091,000 | |||
Weighted average remaining term (in years) | 2 years 8 months 12 days | ||||
Stock options and warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Recognized expense | 544,000 | $ 0 | $ 1,631,000 | $ 0 | |
Share-based payment award, vested in period, fair value | $ 1,994,000 | $ 362,000 | |||
Stock options and warrants | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 29, 2023 | Sep. 29, 2023 | Dec. 30, 2022 | |
Shares | |||
Outstanding, beginning balance (in shares) | 112,232 | ||
Exercised (in shares) | (2,705) | (2,705) | |
Outstanding, ending balance (in shares) | 109,527 | 109,527 | 112,232 |
Exercisable, ending balance (in shares) | 109,527 | 109,527 | |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning balance (in usd per share) | $ 20.23 | ||
Exercised (in usd per share) | 20.23 | ||
Outstanding, ending balance (in usd per share) | $ 20.23 | 20.23 | $ 20.23 |
Exercisable, ending balance (in usd per share) | $ 20.23 | $ 20.23 | |
Aggregate Intrinsic Value | |||
Outstanding, beginning balance | $ 1,465 | ||
Outstanding, ending balance | $ 104 | 104 | $ 1,465 |
Exercisable, ending balance | $ 104 | $ 104 | |
Weighted Average Remaining Contractual Term (in years) | |||
Outstanding, ending balance | 2 years 4 months 24 days | 3 years 2 months 12 days | |
Exercisable, ending balance | 2 years 4 months 24 days |
Related Parties - Narrative (De
Related Parties - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Related Party | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Ownership interest in facilities owned by entities controlled by company's stockholders (as a percent) | 100% | |||
Leased Distribution Facility Owned by CEO | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expense related to affiliate distribution facility | $ 123 | $ 123 | $ 369 | $ 369 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 23, 2022 | Sep. 29, 2023 | Sep. 23, 2022 | |
Income Tax Examination [Line Items] | ||||
Effective income tax rate (as a percent) | 48.30% | 27% | 36.80% | 27% |
Income tax refund receivable | $ 22,475 | $ 22,475 | ||
Revision of prior period, error correction, adjustment | Immaterial correction of prior period errors | ||||
Income Tax Examination [Line Items] | ||||
Prior period reclassification adjustment | $ 2,135 | $ 2,135 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information - Summary of Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2023 | Sep. 23, 2022 | |
Supplemental cash flow disclosures: | ||
Cash paid for income taxes | $ 17,574 | $ 3,483 |
Cash paid for interest, net of cash received | 28,339 | 17,636 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 28,203 | 20,835 |
Operating cash flows from finance leases | 524 | 325 |
ROU assets obtained in exchange for lease liabilities: | ||
Operating leases | 42,991 | 21,779 |
Finance leases | 3,963 | 791 |
Warrants issued for acquisitions | 0 | 1,701 |
Common stock issued for acquisitions | 2,496 | 0 |
Unsecured notes issued for acquisitions | 10,000 | 0 |
Contingent earn-out liabilities for acquisitions | $ 5,765 | $ 1,200 |