Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SFM | ||
Entity Registrant Name | Sprouts Farmers Market, Inc. | ||
Entity Central Index Key | 0001575515 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 101,211,984 | ||
Entity Public Float | $ 3,732,015,340 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 001-36029 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 32-0331600 | ||
Entity Address, Address Line One | 5455 East High Street | ||
Entity Address, Address Line Two | Suite 111 | ||
Entity Address, City or Town | Phoenix | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85054 | ||
City Area Code | 480 | ||
Local Phone Number | 814-8016 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2024 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K where indicated. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2023 . | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Phoenix, Arizona | ||
Auditor Firm ID | 238 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 201,794 | $ 293,233 | |
Accounts receivable, net | 30,313 | 16,108 | |
Inventories | 323,198 | 310,545 | |
Prepaid expenses and other current assets | 48,467 | 53,918 | |
Total current assets | 603,772 | 673,804 | |
Property and equipment, net of accumulated depreciation | 798,707 | 722,241 | |
Operating lease assets, net | 1,322,854 | 1,106,524 | |
Intangible assets | 208,060 | 184,960 | |
Goodwill | 381,741 | 368,878 | |
Other assets | 12,294 | 13,973 | |
Total assets | 3,327,428 | 3,070,380 | |
Current liabilities: | |||
Accounts payable | 179,927 | 172,904 | |
Accrued liabilities | 164,887 | 151,306 | |
Accrued salaries and benefits | 74,752 | 61,574 | |
Current portion of operating lease liabilities | 126,271 | [1],[2] | 135,584 |
Current portion of finance lease liabilities | 1,032 | 1,012 | |
Total current liabilities | 546,869 | 522,380 | |
Long-term operating lease liabilities | 1,399,676 | [1],[2] | 1,145,173 |
Long-term debt and finance lease liabilities | 133,685 | 258,902 | |
Other long-term liabilities | 36,270 | 36,340 | |
Deferred income tax liability | 62,381 | 61,123 | |
Total liabilities | 2,178,881 | 2,023,918 | |
Commitments and contingencies (Note 19) | |||
Stockholders’ equity: | |||
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 | |
Common stock, $0.001 par value; 200,000,000 shares authorized, 101,211,984 shares issued and outstanding, December 31, 2023; 105,072,756 shares issued and outstanding, January 1, 2023 | 101 | 105 | |
Additional paid-in capital | 774,834 | 726,345 | |
Retained earnings | 373,612 | 320,012 | |
Total stockholders’ equity | 1,148,547 | 1,046,462 | |
Total liabilities and stockholders’ equity | $ 3,327,428 | $ 3,070,380 | |
[1] Operating lease payments include $ 62.5 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $ 584.1 million of legally binding minimum lease payments for leases executed but not yet commenced. These amounts include rental income related to subtenant agreements under which we will receive $ 1.1 million in 2024, $ 0.9 million in 2025, $ 0.8 million in 2026, $ 0.7 million in 2027, $ 0.3 million in 2028 and $ 0.1 million thereafter. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Jan. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Undesignated preferred stock, par value | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 101,211,984 | 105,072,756 |
Common stock, shares outstanding | 101,211,984 | 105,072,756 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 6,837,384 | $ 6,404,223 | $ 6,099,869 |
Cost of sales | 4,315,543 | 4,055,659 | 3,890,657 |
Gross profit | 2,521,841 | 2,348,564 | 2,209,212 |
Selling, general and administrative expenses | 2,000,437 | 1,855,649 | 1,748,205 |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 131,893 | 123,530 | 122,258 |
Store closure and other costs, net | 39,280 | 11,025 | 4,673 |
Income from operations | 350,231 | 358,360 | 334,076 |
Interest expense, net | 6,491 | 9,047 | 11,684 |
Income before income taxes | 343,740 | 349,313 | 322,392 |
Income tax provision | 84,884 | 88,149 | 78,235 |
Net income | $ 258,856 | $ 261,164 | $ 244,157 |
Net income per share: | |||
Basic | $ 2.53 | $ 2.41 | $ 2.12 |
Diluted | $ 2.5 | $ 2.39 | $ 2.1 |
Weighted average shares outstanding: | |||
Basic | 102,479 | 108,232 | 115,377 |
Diluted | 103,390 | 109,139 | 116,077 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 258,856 | $ 261,164 | $ 244,157 |
Other comprehensive income, net of tax | |||
Unrealized gains on cash flow hedging activities, net of income tax of $1,819, $3,116 in fiscal 2022 and fiscal 2021 | 0 | 5,259 | 9,009 |
Reclassification of net losses on cash flow hedges to net income, net of income tax of ($520) and ($1,485) in fiscal 2022 and fiscal 2021 | 0 | (1,501) | (4,293) |
Total other comprehensive income | 0 | 3,758 | 4,716 |
Comprehensive income | $ 258,856 | $ 264,922 | $ 248,873 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2023 | Jan. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Income tax expenses (Benefit) on cash flow hedging activities | $ 1,819 | $ 3,116 |
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges | $ (520) | $ 1,485 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | (Accumulated Deficit) Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Jan. 03, 2021 | $ 881,293 | $ 118 | $ 686,648 | $ 203,001 | $ (8,474) |
Beginning Balance, Shares at Jan. 03, 2021 | 117,953,435 | ||||
Net Income (Loss) | 244,157 | 244,157 | |||
Other comprehensive income (loss) | 4,716 | 4,716 | |||
Issuance of shares under stock plans | $ 2,170 | 2,170 | |||
Issuance of shares under stock plans, Shares | 115,123 | 577,296 | |||
Repurchase and retirement of common stock, including excise tax | $ (188,343) | $ (7) | (188,336) | ||
Repurchase and retirement of common stock, including excise tax, Shares | (7,416,357) | ||||
Share-based compensation | 15,883 | 15,883 | |||
Stock Issued During Period, Value, Acquisitions | 0 | ||||
Ending Balance at Jan. 02, 2022 | 959,876 | $ 111 | 704,701 | 258,822 | (3,758) |
Ending Balance, Shares at Jan. 02, 2022 | 111,114,374 | ||||
Net Income (Loss) | 261,164 | 261,164 | |||
Other comprehensive income (loss) | 3,758 | 3,758 | |||
Issuance of shares under stock plans | $ 5,041 | 5,041 | |||
Issuance of shares under stock plans, Shares | 218,509 | 855,464 | |||
Repurchase and retirement of common stock, including excise tax | $ (199,980) | $ (6) | (199,974) | ||
Repurchase and retirement of common stock, including excise tax, Shares | (6,897,082) | (6,897,082) | |||
Share-based compensation | $ 16,603 | 16,603 | |||
Stock Issued During Period, Value, Acquisitions | 0 | ||||
Ending Balance at Jan. 01, 2023 | 1,046,462 | $ 105 | 726,345 | 320,012 | 0 |
Ending Balance, Shares at Jan. 01, 2023 | 105,072,756 | ||||
Net Income (Loss) | 258,856 | 258,856 | 0 | ||
Other comprehensive income (loss) | 0 | ||||
Issuance of shares under stock plans | $ 11,454 | $ 1 | 11,453 | ||
Issuance of shares under stock plans, Shares | 637,387 | 1,449,116 | |||
Repurchase and retirement of common stock, including excise tax | $ (205,262) | $ (6) | (205,256) | ||
Repurchase and retirement of common stock, including excise tax, Shares | (5,864,246) | (5,864,246) | |||
Share-based compensation | $ 18,898 | 18,898 | |||
Stock Issued During Period, Value, Acquisitions | 18,139 | $ 1 | 18,138 | ||
Stock Issued During Period, Shares, Acquisitions | 554,358 | ||||
Ending Balance at Dec. 31, 2023 | $ 1,148,547 | $ 101 | $ 774,834 | $ 373,612 | $ 0 |
Ending Balance, Shares at Dec. 31, 2023 | 101,211,984 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Operating activities | |||
Net income | $ 258,856 | $ 261,164 | $ 244,157 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 137,811 | 127,067 | 125,541 |
Operating lease asset amortization | 127,208 | 117,315 | 108,517 |
Impairment of assets | 30,549 | 8,066 | 4,762 |
Share-based compensation | 18,898 | 16,603 | 15,883 |
Deferred income taxes | (4,915) | 3,228 | (178) |
Other non-cash items | 1,086 | 672 | 1,167 |
Changes in operating assets and liabilities, net of effects from acquisition: | |||
Accounts receivable | 3,173 | 13,381 | 16,928 |
Inventories | (10,857) | (45,158) | (11,417) |
Prepaid expenses and other current assets | 2,210 | (18,467) | (5,879) |
Other assets | 3,482 | 2,039 | (1,782) |
Accounts payable | 12,215 | 13,362 | 4,523 |
Accrued liabilities | 11,746 | 5,416 | 610 |
Accrued salaries and benefits | 12,880 | 2,831 | (17,951) |
Operating lease liabilities | (138,795) | (132,889) | (120,483) |
Other long-term liabilities | (479) | (3,301) | 401 |
Cash flows from operating activities | 465,068 | 371,329 | 364,799 |
Investing activities | |||
Purchases of property and equipment | (225,310) | (124,010) | (102,378) |
Payments for acquisition, net of cash acquired | (13,032) | 0 | 0 |
Cash flows used in investing activities | (238,342) | (124,010) | (102,378) |
Financing activities | |||
Proceeds from revolving credit facilities | 0 | 62,500 | 0 |
Payments on revolving credit facilities | (125,000) | (62,500) | 0 |
Payments on finance lease liabilities | (1,006) | (819) | (685) |
Payments of deferred financing costs | 0 | (3,373) | 0 |
Repurchase of common stock | (203,496) | (199,980) | (188,343) |
Proceeds from exercise of stock options | 11,454 | 5,041 | 2,170 |
Cash flows used in financing activities | (318,048) | (199,131) | (186,858) |
(Decrease)/Increase in cash, cash equivalents, and restricted cash | (91,322) | 48,188 | 75,563 |
Cash, cash equivalents, and restricted cash at beginning of the period | 295,192 | 247,004 | 171,441 |
Cash, cash equivalents, and restricted cash at the end of the period | 203,870 | 295,192 | 247,004 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 12,561 | 11,132 | 11,431 |
Cash paid for income taxes | 96,633 | 93,419 | 82,888 |
Supplemental disclosure of non-cash investing and financing activities | |||
Property and equipment in accounts payable and accrued liabilities | 29,592 | 36,177 | 25,166 |
Issuance of shares for acquisition | 18,139 | 0 | 0 |
Excise tax accrued on repurchase of common stock | 1,766 | 0 | 0 |
Leased assets obtained in exchange for new operating lease liabilities | 364,997 | 157,269 | 139,349 |
Leased assets obtained in exchange for new operating lease liabilities | $ 809 | $ 0 | $ 0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 258,856 | $ 261,164 | $ 244,157 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Sprouts Farmers Market, Inc., a Delaware corporation, through its subsidiaries, offers a unique specialty grocery experience featuring an open layout with fresh produce at the heart of the store. The Company continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. As of December 31, 2023 , the Company operated 407 stores in 23 states. For convenience, the “Company” is used to refer collectively to Sprouts Farmers Market, Inc. and, unless the context requires otherwise, its subsidiaries. The Company’s store operations are conducted by its subsidiaries. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All material intercompany accounts and transactions have been eliminated in consolidation. The Company has one operating segment, and therefore, one reportable segment: healthy grocery stores. The Company categorizes the varieties of products it sells as perishable and non-perishable. Perishable product categories include produce, meat and meat alternatives, seafood, deli, bakery, floral and dairy and dairy alternatives. Non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. The following is a breakdown of the Company’s perishable and non-perishable sales mix: 2023 2022 2021 Perishables 57.3 % 58.0 % 57.7 % Non-Perishables 42.7 % 42.0 % 42.3 % All dollar amounts are in thousands, unless otherwise indicated. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. Significant Accounting Policies Fiscal Years The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. Fiscal year 2023 ended on December 31, 2023 and included 52 weeks. Fiscal year 2022 ended on January 1, 2023 and included 52 weeks. Fiscal year 2021 ended on January 2, 2022 and included 52 weeks. Fiscal years 2023, 2022 and 2021 are referred to as 2023, 2022 and 2021, respectively. Significant Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s critical accounting estimates include inventories, lease assumptions, self-insurance reserves, goodwill and intangible assets, impairment of long-lived assets, and income taxes. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America. Deposits in transit include sales through the end of the period, the majority of which were paid with credit and debit cards and settle within a few days of the sales transactions. The amounts due from banks for these transactions at each reporting date were as follows: As Of December 31, 2023 January 1, 2023 Due from banks for debit and credit card transactions $ 85,116 $ 77,665 Restricted Cash Restricted cash relates to the Company’s defined benefit plan forfeitures and the Company’s healthcare, general liability and workers’ compensation plan benefits of approximately $ 2.1 million and $ 2.0 million as of December 31, 2023 and January 1, 2023 , respectively, and is included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. Accounts Receivable Accounts receivable primarily represents billings to vendors for scan, advertising and other rebates, receivables from ecommerce partners, billings to landlords for tenant allowances and receivables for manufacturer coupons. Accounts receivable also includes receivables from the Company’s insurance carrier for payments expected to be made in excess of self-insured retentions. The Company provides an allowance for doubtful accounts when a specific account is determined to be uncollectible. Inventories Inventories consist of merchandise purchased for resale, which are stated at the lower of cost or net realizable value. The cost method is used for distribution center and store perishable department inventories by assigning costs to each of these items based on a first-in, first-out (FIFO) basis (net of vendor discounts). The Company’s non-perishable inventory is valued at the lower of cost or net realizable value using weighted averaging, the use of which approximates the FIFO method. Inventories are reduced for estimated losses related to shrinkage. The Company believes that all inventories are saleable and no allowances or reserves for obsolescence were recorded as of December 31, 2023 and January 1, 2023 . Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Expenditures for major additions and improvements to facilities as well as significant component replacements are capitalized. All other maintenance and repairs are charged to expense as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of income. Depreciation expense, which includes the amortization of assets recorded as finance leases, is computed using the straight-line method over the estimated useful lives of the individual assets. Terms of leases used in the determination of estimated useful lives may include renewal options if the exercise of the renewal option is determined to be reasonably certain. The following table includes the estimated useful lives of certain of the Company’s asset classes: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 7 to 20 years Leasehold improvements up to 15 years Buildings 40 years Store development costs, which include costs associated with the selection and procurement of real estate sites, are also included in property and equipment. These costs are included in leasehold improvements and are amortized over the remaining lease term of the successful sites with which they are associated. Self-Insurance Reserves The Company uses a combination of insurance and self-insurance programs to provide for costs associated with general liability, workers’ compensation and team member health benefits. Liabilities for self-insurance reserves are estimated based on independent actuarial estimates, which are based on historical information and assumptions about future events. The Company utilizes various techniques, including analysis of historical trends and actuarial valuation methods, to estimate the cost to settle reported claims and claims incurred but not yet reported as of the balance sheet date. The actuarial valuation methods consider loss development factors, which include the development time frame and expected claim reporting and settlement patterns, and expected loss costs, which include the expected frequency and severity of claim activity. Amounts expected to be recovered from insurance companies are included in the liability, with a corresponding amount recorded in accounts receivable. Goodwill and Intangible Assets Goodwill represents the cost of acquired businesses in excess of the fair value of assets and liabilities acquired. The Company’s indefinite-lived intangible assets consist of trade names related to “Sprouts Farmers Market,” liquor licenses and reacquired rights recognized in connection with the acquisition of Ronald Cohn, Inc. in 2023. See Note 28, “Business Combination” for more information on this acquisition. Goodwill and indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth fiscal quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s impairment evaluation of goodwill consists of a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company’s qualitative assessment considered factors including changes in the competitive market, budget-to-actual performance, trends in market capitalization for the Company and its peers, turnover in key management personnel and overall changes in the macroeconomic environment. If this qualitative assessment indicates it is more likely than not that the estimated fair value of the reporting unit exceeds its carrying value, no further analysis is required, and goodwill is not impaired. Otherwise, the Company compares the estimated fair value of the reporting unit to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value. The impairment evaluation for the Company’s indefinite-lived intangible assets consists of a qualitative assessment, similar to that for goodwill. If the qualitative assessment indicates it is more likely than not that the estimated fair value exceeds its carrying value, no further analysis is required, and the asset is not impaired. Otherwise, the Company compares the estimated fair value of the asset to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value. The Company has determined its business consists of a single reporting unit. The Company has had no goodwill impairment charges for the past three fiscal years. See Note 8, “Intangible Assets” and Note 9, “Goodwill” for further discussion. Impairment of Long-Lived Assets The Company assesses its long-lived assets, including property and equipment and right-of-use assets, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. These events primarily include current period losses combined with a history of losses or a projection of continuing losses, a significant decrease in the market value of an asset or a decision to close or relocate a store. The Company groups and evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which independent identifiable cash flows are available. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the future undiscounted cash flows expected to be generated by that asset group. The Company’s impairment analysis contains management assumptions about key variables including sales growth rate, gross margin, payroll and other controllable expenses. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset group. The fair value of the asset group is estimated based on the discounted future cash flows using a discount rate commensurate with the related risk or comparable market values, if available. The Company recorded an impairment loss of $ 30.5 million in 2023 , of which $ 27.8 million was in connection with the decision to close certain underperforming stores (see Note 27, "Store Closures") and $ 2.7 million was in the normal course of business primarily related to the write-down of right-of-use assets and leasehold improvements. The Company recorded an impairment loss of $ 8.1 million and $ 4.8 million in 2022 and 2021, respectively, as part of the normal course of business primarily related to the write-down of right-of-use assets and leasehold improvements. These charges are recorded as a component of Store closure and other costs, net in the accompanying consolidated statements of income. Deferred Financing Costs The Company capitalizes certain fees and costs incurred in connection with the issuance of debt. Deferred financing costs are amortized to interest expense over the term of the debt using the effective interest method. For the Credit Agreement and Former Credit Facility (as defined in Note 13, “Long-Term Debt and Finance Lease Liabilities”), deferred financing costs are amortized on a straight-line basis over the term of the facility. Upon prepayment, redemption or conversion of debt, the Company accelerates the recognition of an appropriate amount of financing costs as loss on extinguishment of debt. The current and noncurrent portions of deferred financing costs are included in prepaid expenses and other current assets and other assets, respectively, in the accompanying consolidated balance sheets. Leases The Company leases its stores, distribution centers, and administrative offices. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets, current portion of operating lease liabilities and noncurrent portion of operating lease liabilities in the accompanying consolidated balance sheets. Finance leases are included in property, plant, equipment, net, current portion of finance lease liabilities, and long-term debt and finance lease liabilities in the accompanying consolidated balance sheets. Operating lease payments are charged on a straight-line basis to rent expense, a component of selling, general and administrative expenses, over the lease term and finance lease payments are charged to interest expense and depreciation and amortization expense using a debt model over the lease term. The Company’s lease assets represent a right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities and the related rent expense are recognized at the lease commencement date (date on which the Company gains access to the property) based on the estimated present value of lease payments over the lease term, net of landlord allowances expected to be received. The Company accounts for the lease and non-lease components as a single lease component for all current classes of leases. Most of the Company’s lease agreements include variable payments related to pass-through costs for common area maintenance ("CAM"), property taxes, and insurance. Additionally, some of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels. These variable payments are not included in the measurement of the lease liability or asset and are expensed as incurred. As most of the Company’s lease agreements do not provide an implicit rate, the Company uses an estimated incremental borrowing rate, which is derived from third-party information available at the lease commencement date, in determining the present value of lease payments. The rate used is for a secured borrowing of a similar term as the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to twenty years or more. The exercise of lease renewal options is at the Company’s sole discretion. The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less (“short-term leases”) are not recorded on the balance sheet. The Company does not currently have any material short-term leases. Additionally, the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. The Company subleases certain real estate to third parties, which have all been classified as operating leases. The Company recognizes sublease income on a straight-line basis. Fair Value Measurements The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with ASC 820. This framework establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the impairment analysis of goodwill, intangible assets, and long-lived assets. Impairment losses related to store-level assets are calculated using significant unobservable inputs including the present value of future cash flows expected to be generated using a risk-adjusted market based weighted-average cost of capital, comparable store sales growth assumptions, and third party property appraisal data. Therefore, these inputs are classified as a level 3 measurement in the fair value hierarchy. Derivative Financial Instruments The Company records derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how the Company reflects the change in fair value of the derivative instrument in its financial statements. A derivative qualifies for hedge accounting if, at inception, the derivative is expected to be highly effective in offsetting the underlying hedged cash flows, and the Company fulfills the hedge documentation standards at the time it enters into the derivative contract. The Company designates its hedge based on the exposure it is hedging. For qualifying cash flow hedges, the Company records changes in fair value in other comprehensive income (“OCI”). The Company releases the derivative’s gain or loss from OCI to match the timing of the underlying hedged item’s effect on earnings. The Company reviews the effectiveness of its hedging instruments quarterly. The Company recognizes changes in the fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. The Company discontinues hedge accounting for any hedge that is no longer evaluated to be highly effective. The Company does not enter into derivative financial instruments for trading or speculative purposes, and it monitors the financial stability and credit standing of its counterparties in these transactions. The Company had no active derivative financial instruments as of December 31, 2023 or January 1, 2023 . Share-Based Compensation The Company measures share-based compensation cost at the grant date based on the fair value of the award and recognizes share-based compensation cost as expense over the vesting period. As share-based compensation expense recognized in the consolidated statements of income is based on awards ultimately expected to vest, the amount of expense has been reduced for actual forfeitures as they occur. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value for each option grant. See Note 26, “Share-Based Compensation” for a discussion of assumptions used in the calculation of fair values. Application of alternative assumptions could produce different estimates of the fair value of share-based compensation and, consequently, the related amounts recognized in the accompanying consolidated statements of income. The grant date fair value of restricted stock units (“RSUs”) and performance share awards (“PSAs”) is based on the closing price per share of the Company’s common stock on the grant date. The Company recognizes compensation expense for time-based awards on a straight-line basis and for performance-based awards on the graded-vesting method over the vesting period of the awards. Revenue Recognition The Company’s performance obligations are satisfied upon the transfer of goods to the customer, which occurs at the point of sale, and payment from customers is also due at the time of sale. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as sales when they are redeemed by the customer and the performance obligation is satisfied by the Company. The Company’s gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. A summary of the activity and balances in the gift card liability, net is as follows : Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Beginning Balance $ 10,906 $ 12,586 $ 15,888 Gift cards issued during the period but not redeemed (1) 4,271 4,291 5,711 Revenue recognized from beginning liability ( 4,611 ) ( 5,971 ) ( 9,013 ) Ending Balance $ 10,566 $ 10,906 $ 12,586 (1) net of estimated breakage The nature of goods the Company transfers to customers at the point of sale are inventories, consisting of merchandise purchased for resale. The Company does not have any material contract assets or receivables from contracts with customers, any revenue recognized in the current period from performance obligations satisfied in previous periods, any contract performance obligations, or any material costs to obtain or fulfill a contract as of December 31, 2023 . Cost of Sales Cost of sales includes the cost of inventory sold during the period, including the direct costs of purchased merchandise (net of discounts and allowances), distribution and supply chain costs, and depreciation and amortization for distribution centers and supply chain related assets. The Company recognizes vendor allowances and merchandise volume related rebate allowances as a reduction of inventories during the period when earned and reflects the allowances as a component of cost of sales as the inventory is sold. The Company’s largest supplier accounted for approximately 47 %, 45 % and 44 % of total purchases during 2023, 2022 and 2021, respectively. Selling, General and Administrative Expenses Selling, general and administrative expenses primarily consist of salaries, wages and benefits costs, share-based compensation, occupancy costs (including rent, property taxes, utilities, CAM and insurance), advertising costs, buying costs, pre-opening and other administrative costs. The Company charges certain vendors to place advertisements in the Company’s in-store guide and circulars under a cooperative advertising program. The Company records rebates received from vendors in connection with cooperative advertising programs as a reduction to advertising costs when the allowance represents a reimbursement of a specific incremental and identifiable cost. Advertising costs are expensed as incurred. Advertising expense, net of rebates, was $ 45.8 million, $ 49.2 million and $ 45.9 million for 2023, 2022 and 2021, respectively. Depreciation and amortization Depreciation and amortization expense (exclusive of depreciation included in cost of sales) primarily consists of depreciation and amortization for buildings, store leasehold improvements, and equipment. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income offset by deferred tax liabilities. Changes in recognition or measurement are reflected in the period in which the judgment occurs. The Company files income tax returns for federal purposes and in many states. The Company’s tax filings remain subject to examination by applicable tax authorities for a certain length of time, generally three years, following the tax year to which those filings relate. The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 % likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as part of income tax expense. Share Repurchases The Company has elected to retire shares repurchased to date. Shares retired become part of the pool of authorized but unissued shares. The Company has elected to record the purchase price of the retired shares in excess of par value directly as a reduction of retained earnings. The cost of common shares repurchased includes a 1% excise tax imposed as part of the Inflation Reduction Act of 2022. Net Income per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the fiscal period. Diluted net income per share is based on the weighted average number of shares outstanding, plus, where applicable, shares that would have been outstanding related to dilutive options, PSAs and RSUs. Comprehensive Income Comprehensive income consists of net income and the unrealized gains or losses on derivative instruments that qualify for and have been designated as cash flow hedges, for all periods presented. Recently Adopted Accounting Pronouncements Reference Rate Reform In March 2020 and January 2021, the FASB issued ASU no. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and ASU 2021-01, “Reference Rate Reform (Topic 848): Scope,” respectively. The amendments in these updates provide optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for contracts, hedging relationships, and other transactions affected by reference rate reform. During 2022, the Company adopted certain optional expedients provided under Topic 848 that permitted its hedging relationships to continue without de-designation upon changes due to reference rate reform. The adoption of this guidance resulted in no material impact to the Company’s consolidated financial statements. See Note 22, “Derivative Financial Instruments” for more information on our hedging activities. Income Taxes –Accounting for Income Taxes In December 2019, the FASB issued ASU no. 2019-12, “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes.” Among other things, the amendment removes certain exceptions for periods with operating losses, and reduces the complexity surrounding franchise tax, step up in tax basis of goodwill in conjunction with a business combination, and timing of enacting changes in tax laws during interim periods. The Company adopted this standard effective January 4, 2021 on a prospective basis. There was no impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Segment Reporting – Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU no. 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures." The amendments in this update increase required disclosures about a public entity's reportable segments, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM. The guidance will be effective for the Company for its fiscal year 2024 and for interim periods starting in the first quarter of its fiscal year 2025. Early adoption is permitted, and the guidance is required to be applied retrospectively. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures. Income Taxes – Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU no. 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures." The amendments in this update enhance a public entity's annual income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance will be effective for the Company for its fiscal year 2025. Early adoption is permitted, and the guidance should be applied prospectively, with an option to apply it retrospectively. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures. No other new accounting pronouncements issued or effective during 2023 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | 4. Accounts Receivable A summary of accounts receivable is as follows: As Of December 31, 2023 January 1, 2023 Landlords $ 5,451 $ 232 Vendors 3,168 3,544 Insurance 2,884 2,320 Ecommerce 7,682 6,988 Other 11,128 3,024 Total $ 30,313 $ 16,108 The Company recorded allowances for certain vendor receivables of $ 1.3 million and $ 1.4 million at December 31, 2023 and January 1, 2023 , respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets A summary of prepaid expenses and other current assets is as follows: As Of December 31, 2023 January 1, 2023 Prepaid expenses $ 22,062 $ 33,034 Restricted cash 2,076 1,959 Income tax receivable 23,559 18,155 Other current assets 770 770 Total $ 48,467 $ 53,918 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment A summary of property and equipment, net is as follows: As Of December 31, 2023 January 1, 2023 Land and finance lease assets $ 16,562 $ 15,753 Furniture, fixtures and equipment 1,002,824 850,357 Leasehold improvements 715,489 679,880 Construction in progress 92,066 110,106 Total property and equipment 1,826,941 1,656,096 Accumulated depreciation and amortization ( 1,028,234 ) ( 933,855 ) Property and equipment, net $ 798,707 $ 722,241 Depreciation expense was $ 136.6 million, $ 125.7 million and $ 124.1 million for 2023, 2022 and 2021, respectively. Depreciation expense is primarily reflected in Depreciation and amortization on the consolidated statements of income. Impairment expense was $ 30.5 million, $ 8.1 million and $ 4.8 million for 2023, 2022 and 2021, respectively. Impairment expense is reflected in Store closure and other costs, net on the consolidated statements of income. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 7. Leases Lease cost includes both the fixed and variable expenses recorded for leases. The components of lease cost are as follows: Year Ended Classification December 31, 2023 January 1, 2023 January 2, 2022 Operating lease cost Selling, general and administrative expenses (1), (2) $ 232,745 $ 204,559 $ 196,602 Finance lease cost: Amortization of Property Depreciation and amortization 1,062 966 966 Interest on lease liabilities Interest expense 816 852 906 Variable lease cost Selling, general and administrative expenses (1), (2) 70,197 65,979 60,763 Sublease income Selling, general and administrative expenses ( 832 ) ( 833 ) ( 839 ) Total net lease cost $ 303,988 $ 271,523 $ 258,398 (1) Supply chain-related amounts of $ 18.2 million, $ 12.4 million and $ 10.6 million were included in cost of sales for 2023, 2022 and 2021, respectively. (2) Lease cost related to closed store locations of $ 6.3 million, $ 1.3 million and $ 0.7 million were included in Store closure and other costs, net for 2023, 2022 and 2021, respectively. Supplemental balance sheet information related to leases is as follows: As Of Classification December 31, 2023 January 1, 2023 Assets Operating Operating lease assets $ 1,322,854 $ 1,106,524 Finance Property and equipment, net 7,127 7,285 Total lease assets $ 1,329,981 $ 1,113,809 Liabilities Current: Operating Current portion of operating lease liabilities $ 126,271 $ 135,584 Finance Current portion of finance lease liabilities 1,032 1,012 Noncurrent: Operating Long-term operating lease liabilities 1,399,676 1,145,173 Finance Long-term debt and finance lease liabilities 8,685 8,902 Total lease liabilities $ 1,535,664 $ 1,290,671 2023 2022 2021 Weighted average remaining lease term (years): Operating leases 10.0 9.4 9.6 Finance leases 6.7 7.8 8.8 Weighted average discount rate: Operating leases 7.2 % 7.1 % 6.7 % Finance leases 8.3 % 8.4 % 8.4 % Supplemental cash flow and other information related to leases is as follows: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows for operating leases $ 228,411 $ 207,516 $ 182,926 Operating cash flows for finance leases 816 852 906 Lease assets obtained in exchange for lease liabilities: Finance leases $ 809 $ — $ — Operating leases 364,997 157,269 139,349 A summary of maturities of lease liabilities is as follows: Operating Leases (1), (2) Finance Leases Total 2024 $ 208,602 $ 1,780 $ 210,382 2025 267,082 2,107 269,189 2026 231,900 1,945 233,845 2027 215,856 2,032 217,888 2028 185,758 1,766 187,524 Thereafter 1,072,847 3,241 1,076,088 Total lease payments 2,182,045 12,871 2,194,916 Less: Imputed interest ( 656,098 ) ( 3,154 ) ( 659,252 ) Total lease liabilities 1,525,947 9,717 1,535,664 Less: Current portion ( 126,271 ) ( 1,032 ) ( 127,303 ) Long-term lease liabilities $ 1,399,676 $ 8,685 $ 1,408,361 (1) Operating lease payments include $ 62.5 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $ 584.1 million of legally binding minimum lease payments for leases executed but not yet commenced. (2) These amounts include rental income related to subtenant agreements under which we will receive $ 1.1 million in 2024, $ 0.9 million in 2025, $ 0.8 million in 2026, $ 0.7 million in 2027, $ 0.3 million in 2028 and $ 0.1 million thereafter. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible Assets A summary of the activity and balances in intangible assets is as follows: Balance at January 2, 2022 Additions/Adjustments Balance at January 1, 2023 Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived liquor licenses 2,023 — 2,023 Total intangible assets $ 184,960 $ — $ 184,960 Balance at January 1, 2023 Additions/Adjustments Balance at December 31, 2023 Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived reacquired rights — 23,100 23,100 Indefinite-lived liquor licenses 2,023 — 2,023 Total intangible assets $ 184,960 $ 23,100 $ 208,060 There was no amortization expense in 2023, 2022 and 2021. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. Goodwill The Company’s goodwill balance was $ 381.7 million and $ 368.9 million as of December 31, 2023 and January 1, 2023, respectively. As of December 31, 2023 and January 1, 2023 , the Company had no accumulated goodwill impairment losses. The goodwill was related to the acquisitions of Henry’s Farmers Market and Sunflower Farmers Market in 2011 and 2012, respectively, and the acquisition of Ronald Cohn, Inc. in 2023. For further details, see Note 28, "Business Combination." A summary of the activity and balances in goodwill is as follows: Balance at January 1, 2023 Additions Balance at December 31, 2023 Goodwill $ 368,878 $ 12,863 $ 381,741 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 10. Other Assets As of December 31, 2023 and January 1, 2023 , other assets of $ 12.3 million and $ 14.0 million, respectively, primarily consisted of deferred software as a service, capitalized durable supplies, deferred financing costs, utilities deposits and miscellaneous other assets. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 11. Accrued Liabilities A summary of accrued liabilities is as follows: As Of December 31, 2023 January 1, 2023 Self-insurance reserves $ 25,012 $ 23,954 Accrued occupancy related (CAM, property taxes, etc.) 23,935 24,981 Gift cards, net of breakage 10,566 10,906 Accrued sales, use and excise tax 14,296 13,820 Other accrued liabilities 91,078 77,645 Total $ 164,887 $ 151,306 |
Accrued Salaries and Benefits
Accrued Salaries and Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Salaries and Benefits | 12. Accrued Salaries and Benefits A summary of accrued salaries and benefits is as follows: As Of December 31, 2023 January 1, 2023 Bonuses $ 33,890 $ 23,679 Payroll 20,652 19,873 Vacation 18,050 16,732 Severance and other 2,160 1,290 Total $ 74,752 $ 61,574 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Long Term Debt And Finance Lease Liabilities [Abstract] | |
Long-Term Debt and Finance Lease Liabilities | 13. Long-Term Debt and Finance Lease Liabilities A summary of long-term debt and finance lease liabilities is as follows: As Of Facility Maturity Interest Rate December 31, 2023 January 1, 2023 Senior secured debt $ 700.0 million Credit Agreement March 25, 2027 Variable $ 125,000 $ 250,000 Finance lease liabilities Various n/a 8,685 8,902 Long-term debt and finance lease liabilities $ 133,685 $ 258,902 A summary of maturities of long-term debt is as follows: $700 million Credit Agreement 2024 $ — 2025 — 2026 — 2027 125,000 2028 — Thereafter — Total $ 125,000 Credit Agreement The Company’s subsidiary, Sprouts Farmers Markets Holdings, LLC (“Intermediate Holdings”), is the borrower under a credit agreement entered into on March 25, 2022 (the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility (the "Revolving Credit Facility") with an initial aggregate commitment of $ 700.0 million. Amounts outstanding under the Credit Agreement may be increased from time to time in accordance with an expansion feature set forth in the Credit Agreement. The Company capitalized debt issuance costs of $ 3.4 million related to the Credit Agreement, which, combined with the remaining $ 0.5 million debt issuance costs in respect of that certain amended and restated credit agreement entered into on March 27, 2018, by and among the Company, Intermediate Holdings, certain lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (the “Former Credit Facility”), which remained outstanding as of the time of Intermediate Holdings’ entry into the Credit Agreement, are being amortized on a straight-line basis to interest expense over the five-year term of the Credit Agreement. The Credit Agreement provides for a $ 70.0 million letter of credit sub-facility (the "Letter of Credit Sub-Facility") and a $ 50.0 million swingline facility. Letters of credit issued under the Credit Agreement reduce the capacity of Intermediate Holdings to borrow under the Revolving Credit Facility. Letters of credit totaling $ 21.5 million have been issued as of December 31, 2023 under the Letter of Credit Sub-Facility, primarily to support the Company’s insurance programs. Guarantees Obligations under the Credit Agreement are guaranteed by the Company and substantially all of its existing and future wholly-owned material domestic subsidiaries, and are secured by first-priority security interests in substantially all of the assets of the Company, Intermediate Holdings, and the subsidiary guarantors, including, without limitation, a pledge by the Company of its equity interest in Intermediate Holdings. Interest and Fees L oans under the Credit Agreement will initially bear interest, at the Company's option, either at the Term SOFR (with a floor of 0.00%) plus a 0.10 % SOFR adjustment and 1.00 % per annum or base rate (with a floor of 0.00%) plus 0.00 % per annum . The interest rate margins are subject to upward adjustments pursuant to a pricing grid based on the Company’s total net leverage ratio as set forth in the Credit Agreement and to upward or downward adjustments of up to 0.05 % based upon the achievement of certain diversity and sustainability-linked metric thresholds, as set forth in the Credit Agreement. Under the terms of the Credit Agreement, the Company is obligated to pay a commitment fee on the available unused amount of the commitments, which commitment fee ranges between 0.10 % to 0.225 % per annum, pursuant to a pricing grid based on the Company’s total net leverage ratio. The commitment fees are subject to upward or downward adjustments of up to 0.01 % based upon the achievement of certain diversity and sustainability-linked metric thresholds, as set forth in the Credit Agreement. As of December 31, 2023 , loans outstanding under the Credit Agreement bore interest at Term SOFR (as defined in the Credit Agreement) plus a 0.10 % SOFR adjustment and 0.95 % per annum. As of December 31, 2023 , outstanding letters of credit issued under the Credit Agreement were subject to a participation fee of 0.95 % per annum and an issuance fee of 0.125 % per annum. Payments and Borrowings The Credit Agreement is scheduled to mature, and the commitments thereunder will terminate on March 25, 2027 , subject to extensions as set forth therein. The Company may prepay loans and permanently reduce commitments under the Credit Agreement at any time in agreed-upon minimum principal amounts, without premium or penalty (except SOFR breakage costs, if applicable). In connection with the execution of the Credit Agreement, the Company's obligations under the Former Credit Facility were prepaid and terminated. During 2023 , the Company made no additional borrowings and made principal payments of $ 125.0 million , resulting in total outstanding debt under the Credit Agreement of $ 125.0 million as of December 31, 2023 . During 2022, the Company made no additional borrowings or principal payments, other than the net change of $ 62.5 million in the composition of the lending syndicate associated with a modification of the Company's revolving credit facility on March 25, 2022, resulting in total outstanding debt under the Credit Agreement of $ 250.0 million as of January 1, 2023. Covenants The Credit Agreement contains financial, affirmative and negative covenants. The negative covenants include, among other things, limitations on the Company’s ability to: • incur additional indebtedness; • grant additional liens; • enter into sale-leaseback transactions; • make loans or investments; • merge, consolidate or enter into acquisitions; • pay dividends or distributions; • enter into transactions with affiliates; • enter into new lines of business; • modify the terms of debt or other material agreements; and • change its fiscal year. Each of these covenants is subject to customary and other agreed-upon exceptions. In addition, the Credit Agreement requires that the Company and its subsidiaries maintain a maximum total net leverage ratio not to exceed 3.75 to 1.00 , which ratio may be increased from time to time in connection with certain permitted acquisitions pursuant to conditions as set forth in the Credit Agreement, and a minimum interest coverage ratio not to be less than 3.00 to 1.00 . Each of these covenants is tested on the last day of each fiscal quarter. The Company was in compliance with all applicable covenants under the Credit Agreement as of December 31, 2023 . |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 14. Other Long-Term Liabilities A summary of other long-term liabilities is as follows: As Of December 31, 2023 January 1, 2023 Long-term portion of self-insurance reserves $ 22,826 $ 23,658 Other 13,444 12,682 Total $ 36,270 $ 36,340 |
Self-Insurance Programs
Self-Insurance Programs | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Self-Insurance Programs | 15. Self-Insurance Programs The Company is self-insured for costs related to workers’ compensation, general liability and employee health benefits up to certain self-insured retentions and stop-loss limits. The Company establishes reserves for the ultimate obligation of reported and incurred but not reported (“IBNR”) claims. IBNR claims are estimated using various techniques, including analysis of historical trends and actuarial valuation methods. The Company purchases coverage from third-party insurers for exposures in excess of certain stop-loss limits and recorded receivables of $ 1.3 million and $ 1.2 million from its insurance carriers for payments expected to be made in excess of self-insured retentions at December 31, 2023 and January 1, 2023 , respectively. The Company recorded amounts for general liability, workers' compensation and team member health benefit liabilities of $ 47.8 million and $ 47.6 million at December 31, 2023 and January 1, 2023, respectively. The following table summarizes the changes in the Company's self-insurance reserves through December 31, 2023: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Beginning Balance $ 47,612 $ 50,529 $ 48,518 Expenses, net of actuarial adjustments 85,148 76,720 85,892 Claim Payments ( 84,922 ) ( 79,637 ) ( 83,881 ) Ending Balance 47,838 47,612 50,529 Less: Current portion ( 25,012 ) ( 23,954 ) ( 27,136 ) Long-term portion $ 22,826 $ 23,658 $ 23,393 The current portion of the self-insurance reserves is included in "Accrued Liabilities" and the long-term portion is included in "Other Long-Term Liabilities" in the accompanying consolidated balance sheets. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2023 | |
Postemployment Benefits [Abstract] | |
Defined Contribution Plan | 16. Defined Contribution Plan The Company maintains the Sprouts Farmers Market, Inc. Employee 401(k) Savings Plan (the “Plan”), which is a defined contribution plan covering all eligible team members. Under the provisions of the Plan, participants may direct the Company to defer a portion of their compensation to the Plan, subject to the Internal Revenue Code limitations. The Company provides for an employer matching contribution equal to 50 % of each dollar contributed by the participants up to 6 % of their eligible compensation. The following table outlines the t otal expense recorded for the matching under the Plan, which is reflected in Selling, general and administrative expenses on the consolidated statements of income: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 $ 8,496 $ 7,820 $ 7,517 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes Income Tax Provision The income tax provision consists of the following: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 U.S. Federal—current $ 67,898 $ 66,398 $ 60,329 U.S. Federal—deferred ( 5,927 ) 1,028 ( 1,663 ) U.S. Federal—total 61,971 67,426 58,666 State—current 21,902 19,823 19,715 State—deferred 1,011 900 ( 146 ) State—total 22,913 20,723 19,569 Total provision $ 84,884 $ 88,149 $ 78,235 Tax Rate Reconciliation Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pre-tax income as a result of the following: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 5.4 4.7 4.8 Enhanced charitable contribution impact ( 1.0 ) ( 0.9 ) ( 1.5 ) Non-deductible Executive Compensation 1.4 0.9 0.3 Benefit of federal tax credit ( 0.7 ) ( 0.5 ) ( 0.4 ) Excess tax benefits from share based payments ( 1.2 ) ( 0.4 ) ( 0.1 ) Other, net ( 0.2 ) 0.4 0.2 Effective income tax rate 24.7 % 25.2 % 24.3 % The effective income tax rate decreased to 24.7 % in 2023 from 25.2 % in 2022 primarily due to excess tax benefits related to the exercise or vesting of share-based awards partially offset by an increase in nondeductible executive compensation The effective income tax rate increased to 25.2 % in 2022 from 24.3 % in 2021 primarily due to decreased charitable contribution deductions in 2022 from the lapsing of benefits initially provided for in the CARES Act. Excess tax benefits or detriments associated with share-based payment awards are recognized as income tax benefits or expense in the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The income tax benefit resulting from share-based awards was $ 5.0 million, $ 1.7 million and $ 0.2 million for 2023, 2022 and 2021, respectively, and is reflected as a reduction to the 2023, 2022 and 2021 income tax provision. Deferred Taxes Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows: As Of December 31, 2023 January 1, 2023 Deferred tax assets Employee benefits $ 18,329 $ 16,052 Tax credits 105 166 Operating leases 392,168 329,154 Other lease related 6,137 5,740 Other accrued liabilities 4,320 4,004 Charitable contribution carryforward 3,343 2,819 Inventories and other 2,905 2,605 Total gross deferred tax assets 427,307 360,540 Less: Valuation Allowance ( 3,343 ) ( 917 ) Total deferred tax assets, net of valuation allowance 423,964 359,623 Deferred tax liabilities Depreciation and amortization ( 80,765 ) ( 83,091 ) Intangible assets ( 64,668 ) ( 52,413 ) Operating leases ( 339,973 ) ( 284,377 ) Asset retirement obligations ( 939 ) ( 865 ) Total gross deferred tax liabilities ( 486,345 ) ( 420,746 ) Net deferred tax liability $ ( 62,381 ) $ ( 61,123 ) A valuation allowance is established for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits, or that the realization of future deductions is uncertain. Management performs an assessment over future taxable income to analyze whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The valuation allowance was $ 3.3 million and $ 0.9 million as of December 31, 2023 and January 1, 2023, respectively, related to contribution carryforwards that management does not believe will ultimately be realized. The Company has evaluated all available positive and negative evidence and believes it is probable that all other the deferred tax assets will be realized and has not recorded any other valuation allowance against the Company’s deferred tax assets as of December 31, 2023 and January 1, 2023. The Company applies the authoritative accounting guidance under ASC 740 for the recognition, measurement, classification and disclosure of uncertain tax positions taken or expected to be taken in a tax return. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: As Of December 31, 2023 January 1, 2023 January 2, 2022 Beginning balance $ 1,119 $ 1,770 $ 1,803 Additions based on tax positions related to the 58 43 16 Additions based on tax positions related to prior years — — 31 Reductions for settlements with taxing authorities — ( 694 ) — Reduction due to lapse of applicable statute of limitations ( 700 ) — — Reductions for tax positions for prior years — — ( 80 ) Ending balance $ 477 $ 1,119 $ 1,770 The Company had unrecognized tax benefits (tax effected) of $ 0.5 million and $ 1.1 million as of December 31, 2023 and January 1, 2023, respectively. These would impact the effective tax rate if recognized. The Company’s policy is to recognize accrued interest and penalties as a component of income tax expense. The Company anticipates a decrease in the total amount of unrecognized tax benefits in the amount of $ 0.2 million during the next twelve months related to the passing of the applicable statute of limitations for a tax position taken for executive compensation. The Company files income tax returns with federal and state tax authorities within the United States. The general statute of limitations for income tax examinations remains open for federal tax returns for tax years 2017 through 2022 and state tax returns for the tax years 2018 through 2022 . |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 18. Related Party Transactions During 2023 , the Company did no t have any material related party transactions. On May 24, 2022, the Company appointed a new member to its board of directors who served as an executive officer of a company that is a supplier of nutrition bars and related products to the Company for resale. The director departed employment from this supplier on February 28, 2023. The cost of sales recognized from this supplier was $ 3.4 million from the beginning of the second quarter of 2022 through January 1, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies Commitments Real estate obligations, which include legally binding minimum lease payments for leases executed but not yet commenced, were $ 584.1 million as of December 31, 2023. In addition to its lease obligations, the Company maintains certain purchase commitments with various vendors to ensure its operational needs are fulfilled. As of December 31, 2023 , total future purchase commitments under noncancelable service and supply contracts were $ 28.6 million. Commitments related to the Company’s business operations cover varying periods of time and are not individually significant. These commitments are expected to be fulfilled with no adverse consequences to the Company’s operations or financial conditions. Contingencies The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters that are believed to best serve the interests of the Company’s stakeholders. The Company’s primary contingencies are associated with self-insurance obligations and litigation matters. Self-insurance liabilities require significant judgments, and actual claim settlements and associated expenses may differ from the Company’s current provisions for loss. See Note 15, “Self-Insurance Programs” for more information. Proposition 65 Coffee Action On April 13, 2010, an organization named Council for Education and Research on Toxics (“CERT”) filed a lawsuit in the Superior Court of the State of California, County of Los Angeles, against nearly 80 defendants who manufacture, package, distribute or sell brewed coffee, including the Company. CERT alleged that the defendants failed to provide warnings for their coffee products of exposure to the chemical acrylamide as required under California Health and Safety Code section 25249.5, the California Safe Drinking Water and Toxic Enforcement Act of 1986, better known as Proposition 65. CERT seeks equitable relief, i ncluding providing warnings to consumers of coffee products, as well as civil penalties. The Company, as part of a joint defense group, asserted multiple defenses against the lawsuit. On May 7, 2018, the trial court issued a ruling adverse to defendants on these defenses to liability. On October 1, 2019, before the court tried damages, remedies and attorneys' fees, California’s Office of Environmental Health Hazard Assessment adopted a regulation that exempted “Exposures to listed chemicals in coffee created by and inherent in the processes of roasting coffee beans or brewing coffee” from Proposition 65’s warning requirement. On August 25, 2020, the trial court granted the defense motion for summary judgment on the affirmative defense, and the case was dismissed. On November 20, 2020, CERT filed a notice of appeal to appeal the ruling on the defense motion for summary judgment. On October 26, 2022, the appellate court affirmed the trial court’s decision. In December 2022, CERT appealed this ruling to the Supreme Court of the State of California, which denied the petition for review in February 2023, concluding the matter. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Capital Stock | . Capital Stock Common stock As of December 31, 2023 , 101,211,984 shares of the Company’s common stock were issued and outstanding after the repurchase and retirement of 5,864,246 shares during 2023, as described below. As of December 31, 2023 , 5,874,286 shares of common stock are reserved for issuance under the 2022 Incentive Plan (see Note 26, “Share-Based Compensation”). The following table outlines the options exercised in exchange for the issuance of shares of common stock during 2023, 2022 and 2021: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Options exercised 637,387 218,509 115,123 Other share issuances under stock plans 811,729 636,955 462,173 Share Repurchases On March 2, 2022, the Company's board of directors authorized a new $ 600 million share repurchase program for its common stock. The new authorization replaced the Company's then-existing share repurchase authorization of $ 300 million that was due to expire on March 3, 2024, of which $ 99.8 million remained available upon its replacement. No further shares may be repurchased under the $ 300 million authorization. The following table outlines the common stock share repurchase programs authorized by the Company’s board of directors and the related repurchase activity and available authorization as of December 31, 2023: Effective date Expiration date Amount Cost of Authorization March 2, 2022 December 31, 2024 $ 600,000 $ 391,619 $ 208,381 The shares under the Company’s repurchase programs may be purchased on a discretionary basis from time to time through the applicable expiration date, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The board’s authorization of the share repurchase programs does not obligate the Company to acquire any particular amount of common stock, and the repurchase programs may be commenced, suspended, or discontinued at any time. Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Year Ended December 31, 2023 January 1, 2023 Number of common shares acquired 5,864,246 6,897,082 Average price per common share acquired $ 35.00 $ 28.99 Total cost of common shares acquired $ 205,262 $ 199,980 Shares purchased under the Company’s repurchase programs were subsequently retired and the excess of the repurchase price over par value was charged to retained earnings. The cost of common shares repurchased during 2023 included the 1% excise tax imposed as part of the Inflation Reduction Act of 2022. Preferred Stock The Company’s board of directors is authorized, subject to limitations prescribed by Delaware law, to issue up to 10,000,000 shares of the Company’s preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, to fix the designation, powers, preferences, and rights of the shares of each series and any of its qualifications, limitations, or restrictions, in each case without further action by the Company’s stockholders. The Company’s board of directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding. The Company’s board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in control of the Company and might adversely affect the market price of the Company’s common stock and the voting and other rights of the holders of the Company’s common stock. The Company has no current plan to issue any shares of preferred stock. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 21. Net Income per Share The computation of basic net income per share is based on the number of weighted average shares outstanding during the period. The computation of diluted net income per share includes the dilutive effect of share equivalents consisting of incremental shares deemed outstanding from the assumed exercise of options and unvested RSUs. PSAs are included in the computation of diluted net income per share only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be satisfied if the end of the reporting period were the end of the related performance period, and if the effect would be dilutive . A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts): Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Basic net income per share: Net income $ 258,856 $ 261,164 $ 244,157 Weighted average shares outstanding - basic 102,479 108,232 115,377 Basic net income per share $ 2.53 $ 2.41 $ 2.12 Diluted net income per share: Net income $ 258,856 $ 261,164 $ 244,157 Weighted average shares outstanding - basic 102,479 108,232 115,377 Dilutive effect of share-based awards: Assumed exercise of options to purchase shares 343 337 215 RSUs 524 394 390 PSAs 44 176 95 Weighted average shares and 103,390 109,139 116,077 Diluted net income per share $ 2.50 $ 2.39 $ 2.10 For the year ended December 31, 2023 , the Company had 0.2 million options and 0.4 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the year ended January 1, 2023 the Company had 0.2 million options and 0.3 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the year ended January 2, 2022 , the Company had 0.5 million options and 0.3 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 22. Derivative Financial Instruments The Company did no t have any outstanding interest rate swap agreements as of December 31, 2023 and January 1, 2023. In December 2017, the Company entered into an interest rate swap agreement to manage its cash flow associated with variable interest rates. This forward contract was designated and qualified as a cash flow hedge, and its change in fair value was recorded as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the forecasted transaction occurred. The forward contract consisted of five cash flow hedges with a notional dollar amount of $ 250.0 million, and each had a length of one year and matured annually from 2018 to 2022 . The gain or loss on these derivative instruments was recognized in other comprehensive income, net of tax, with the portion related to current period interest payments reclassified to Interest expense, net on the consolidated statements of income. The following table summarizes these losses classified on the consolidated statements of income: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Consolidated Statements of Interest expense, net $ — $ 2,021 $ 5,778 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Comprehensive Income | 23. Comprehensive Income The following table presents the changes in accumulated other comprehensive income (loss) for the year ended January 1, 2023: Cash Flow Balance at January 2, 2022 $ ( 3,758 ) Other comprehensive income, net of tax Unrealized gains on cash flow hedging activities, net of income tax of $ 1,819 5,259 Reclassification of net losses on cash flow hedges to net income, net of income 520 ) ( 1,501 ) Total other comprehensive income 3,758 Balance at January 1, 2023 $ — Amounts reclassified from accumulated other comprehensive income (loss) to net income were included within Interest expense, net on the consolidated statements of income. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 24. Fair Value Measurements The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with GAAP. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the impairment analysis of goodwill, intangible assets, and long-lived assets. The following tables present the Company’s fair value hierarchy for the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and January 1, 2023: December 31, 2023 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 125,000 $ — $ 125,000 Total financial liabilities $ — $ 125,000 $ — $ 125,000 January 1, 2023 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 250,000 $ — $ 250,000 Total financial liabilities $ — $ 250,000 $ — $ 250,000 The determination of fair values of certain tangible and intangible assets for purposes of the Company’s goodwill or long-lived asset impairment evaluation as described above is based upon Level 3 inputs. When necessary, the Company uses third party market data and market participant assumptions to derive the fair value of its asset groupings, which primarily include right-of-use lease assets and property and equipment. For further details, see Note 3, “Significant Accounting Policies – Impairment of Long-lived Assets”. Cash, cash equivalents, and restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, and accrued salaries and benefits approximate fair value because of the short maturity of those instruments. Based on comparable open market transactions, the fair value of the long-term debt approximated carrying value as of December 31, 2023 and January 1, 2023 . |
Segments
Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments | 25. Segments The Company has one operating segment, and therefore, one reportable segment: healthy grocery stores. The Company categorizes the varieties of products it sells as perishable and non-perishable. Perishable product categories include produce, meat and meat alternatives, seafood, deli, bakery, floral and dairy and dairy alternatives. Non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. In accordance with ASC 606, the following table represents a disaggregation of revenue for 2023, 2022 and 2021: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Perishables $ 3,915,971 57.3 % $ 3,717,642 58.0 % $ 3,518,181 57.7 % Non-Perishables 2,921,413 42.7 % 2,686,581 42.0 % 2,581,688 42.3 % Net Sales $ 6,837,384 100.0 % $ 6,404,223 100.0 % $ 6,099,869 100.0 % |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 26. Share-Based Compensation 2022 Incentive Plan In March 2022, the Company’s board of directors adopted the Sprouts Farmers Market, Inc. 2022 Omnibus Incentive Compensation Plan (the “2022 Incentive Plan”), which became effective May 25, 2022, upon approval by the Company’s stockholders. The 2022 Incentive Plan provides team members of the Company, certain consultants and advisors who perform services for the Company, and non-employee members of the Company's board of directors with the opportunity to receive grants of equity awards, including stock options, RSUs, PSAs, and other stock-based awards. The 2022 Incentive Plan replaced the 2013 Incentive Plan (as described below). Awards Granted under the 2022 Incentive Plan The Company granted the following awards during 2023 and 2022 under the 2022 Incentive Plan: Grant Date RSUs PSAs Options March 14, 2023 491,729 172,059 221,085 May 1, 2023 2,931 — — June 7, 2023 1,271 — — September 5, 2023 6,408 — — September 11, 2023 10,204 — — October 30, 2023 1,512 — — Total 514,055 172,059 221,085 Weighted-average grant date fair value $ 33.21 $ 32.95 $ 12.63 Weighted-average exercise price — — $ 32.95 Grant Date RSUs PSAs Options June 7, 2022 58,057 — — September 7, 2022 21,598 — — October 10, 2022 6,506 — — Total 86,161 — — Weighted-average grant date fair value $ 27.74 $ — $ — Weighted-average exercise price — — — The aggregate number of shares of common stock that may be issued to team members and directors under the 2022 Incentive Plan may not exceed 6,600,000 , subject to the following adjustments. If any awards granted under the 2022 Incentive Plan, terminate, expire, or are cancelled, forfeited, exchanged, or surrendered without having been exercised, vested or paid in shares, the shares will again be available for purposes of the 2022 Incentive Plan. In addition, the number of shares subject to outstanding awards under the Sprouts Farmers Market, Inc. 2013 Incentive Plan (the “2013 Incentive Plan”) that terminate, expire, are paid in cash, or are cancelled, forfeited, exchanged, or surrendered without having been exercised, vested, or paid in shares under the 2013 Incentive Plan after the effective date of the 2022 Incentive Plan will be available for issuance under the 2022 Incentive Plan. As of December 31, 2023 , there were 855,911 stock awards outstanding and 5,874,286 shares remaining available for issuance under the 2022 Incentive Plan. 2013 Incentive Plan Prior to the adoption of the 2022 Incentive Plan, the 2013 Incentive Plan served as the umbrella plan for the Company’s share-based and cash-based incentive compensation programs for its directors, officers and other team members. Upon stockholder approval of the 2022 Incentive Plan on May 25, 2022, no further awards will be granted under the 2013 Incentive Plan, but awards outstanding under the 2013 Incentive Plan will remain outstanding in accordance with their terms and the terms of the 2013 Incentive Plan. The Company granted the following awards during 2022 under the 2013 Incentive Plan: Grant Date RSUs PSAs Options March 15, 2022 370,177 147,846 211,352 March 21, 2022 104,913 14,260 20,270 Total 475,090 162,106 231,622 Weighted-average grant date fair value $ 31.60 $ 31.52 $ 10.58 Weighted-average exercise price — — $ 31.52 The RSUs generally vest either one-third each year for three years or one-half each year for two years for team members. RSUs granted to independent members of the Company’s board of directors cliff vest in one year . The options expire seven years from grant date. The PSAs are described below. Stock Options Outstanding options only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the grants are not continued or assumed by the acquirer on a substantially equivalent basis. If the options and awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such options or awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable award agreement. Shares issued for option exercises are newly issued shares. The estimated weighted average fair values of options granted during 2023, 2022 and 2021 were $ 12.63 , $ 10.58 and $ 7.66 , respectively, and were calculated using the following assumptions in the table below: 2023 2022 2021 Dividend yield 0.00 % 0.00 % 0.00 % Expected volatility 39.48 % 36.59 % 36.35 % Risk free interest rate 3.78 % 2.12 % 0.83 % Expected term, in years 4.50 4.50 4.50 The grant date weighted average fair value of the 0.4 million options issued but not vested as of December 31, 2023 was $ 10.84 . The grant date weighted average fair value of the 1.0 million options issued but not vested as of January 1, 2023 was $ 6.66 . The grant date weighted average fair value of the 1.1 million options issued but not vested as of January 2, 2022 was $ 5.81 . The following table summarizes grant date weighted average fair value of options granted and options forfeited: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Grant date weighted average fair value of options granted $ 12.63 $ 10.58 $ 7.66 Grant date weighted average fair value of options forfeited $ 10.98 $ 8.66 $ 7.10 Expected volatility for option grants and modifications are calculated based upon the Company’s historical volatility data over a time frame consistent with the expected life of the awards. The expected term is estimated based on the expected period that the options are anticipated to be outstanding after initial grant until exercise or expiration based upon various factors including the contractual terms of the awards and vesting schedules. The expected risk-free rate is based on the U.S. Treasury yield curve rates in effect at the time of the grant using the term most consistent with the expected life of the award. Dividend yield was estimated at zero as the Company does not anticipate making regular future distributions to stockholders. The total intrinsic value of options exercised was $ 12.2 million, $ 1.8 million, and $ 0.7 million for 2023, 2022 and 2021, respectively. The following table summarizes option activity during 2023: Number of Weighted Weighted Aggregate Outstanding at January 1, 2023 1,318,158 $ 20.93 Granted 221,085 32.95 Forfeited ( 47,481 ) 30.87 Exercised ( 637,387 ) 17.97 $ 12,151 Outstanding at December 31, 2023 854,375 25.70 4.53 $ 19,938 Exercisable—December 31, 2023 424,598 20.82 3.61 $ 11,983 Vested/Expected to vest—December 31, 2023 854,375 $ 25.70 4.53 $ 19,938 RSUs Outstanding RSUs only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the awards are not continued or assumed by the acquirer on a substantially equivalent basis. If the awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable award agreement. Shares issued for RSU vesting are newly issued shares. The fair value for restricted stock units is calculated based on the closing stock price on the date of grant. The total grant date fair value of RSUs vested during 2023, 2022 and 2021 was $ 13.3 million, $ 9.2 million and $ 8.8 million, respectively. The following table summarizes the weighted average grant date fair value of RSUs awarded during 2023, 2022 and 2021: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 RSUs awarded $ 33.21 $ 31.01 $ 24.11 The following table summarizes RSU activity during 2023: Number of Weighted Outstanding at January 1, 2023 972,583 $ 26.94 Awarded 514,055 33.21 Vested ( 543,030 ) 24.44 Forfeited ( 75,412 ) 31.84 Outstanding at December 31, 2023 868,196 $ 31.79 PSAs PSAs granted in 2019 were subject to the Company achieving certain earnings before interest and taxes ("EBIT") performance targets for the 2021 fiscal year. The criteria was based on a range of performance targets in which grantees may earn 0 % to 200 % of the base number of awards granted. The performance conditions with respect to fiscal year 2021 EBIT were deemed to have been met, and the PSAs vested at the maximum pay out level on the third anniversary of the grant date (March 2022). During the year ended January 1, 2023 , 208,172 of the 2019 PSAs vested. There were no outstanding 2019 PSAs as of December 31, 2023. PSAs granted in 2020 were subject to the Company achieving certain earnings before taxes (“EBT”) performance targets for the 2022 fiscal year. The criteria was based on a range of performance targets in which grantees may earn 0 % to 200 % of the base number of awards granted . The performance conditions with respect to fiscal year 2022 EBT were deemed to have been met, and the PSAs vested at the maximum pay out level on the third anniversary of the grant date (March 2023). During the year ended December 31, 2023 , 268,699 of the 2020 PSAs vested. There were no outstanding 2020 PSAs as of December 31, 2023. PSAs granted in 2021 are subject to the Company achieving certain EBIT performance targets for the 2023 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0 % to 200 % of the base number of awards granted. Subsequent to December 31, 2023, the performance conditions with respect to 2023 EBIT were deemed not to have been met. Accordingly, no performance shares will vest on the third anniversary of the grant date (March 2024). PSAs granted in 2022 are subject to the Company achieving certain EBIT performance targets for the 2024 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0 % to 200 % of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2025). PSAs granted in 2023 are subject to the Company achieving certain EBIT performance targets for the 2025 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0 % to 200 % of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2026). The PSAs only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the awards are not continued or assumed by the acquirer on a substantially equivalent basis. If the awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable team member award agreement. Shares issued for PSA vesting are newly issued shares. The fair value for PSAs is calculated based on the closing stock price on the date of grant. The total grant date fair value of PSAs granted during 2023 was $ 5.7 million. The total grant date fair value of PSAs vested during 2023 was $ 4.5 million. The total grant date fair value of performance shares forfeited or not earned during 2023 was $ 1.1 million. The total grant date fair value of the 0.4 million PSAs issued but not released as of December 31, 2023 was $ 12.9 million. The total grant date fair value of PSAs granted during 2022 was $ 5.1 million. The total grant date fair value of PSAs vested during 2022 was $ 4.1 million. The total grant date fair value of performance shares forfeited or not earned during 2022 was $ 0.8 million. The total grant date fair value of the 0.5 million PSAs issued but not released as of January 1, 2023 was $ 11.1 million. The total grant date fair value of PSAs granted during 2021 was $ 4.8 million. The total grant date fair value of PSAs vested during 2021 was $ 0.8 million. The total grant date fair value of performance shares forfeited or not earned during 2021 was $ 1.0 million. The total grant date fair value of the 0.4 million PSAs issued but not released as of January 2, 2022 was $ 8.9 million. The following table summarizes PSA activity during 2023: Number of Weighted Outstanding at January 1, 2023 460,106 $ 24.12 Awarded 172,059 32.95 Vested ( 268,699 ) 16.83 Forfeited ( 34,954 ) 32.18 PSAs earned 107,998 16.91 PSAs not earned — — Outstanding at December 31, 2023 436,510 $ 29.66 Share-Based Compensation Expense The Company presents share-based compensation expense in Selling, general and administrative expenses on the Company’s consolidated statements of income. The amount recognized was as follows: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Share-based compensation expense $ 18,898 $ 16,603 $ 15,883 Income tax benefit ( 3,007 ) ( 2,495 ) ( 2,450 ) Net share-based compensation expense $ 15,891 $ 14,108 $ 13,433 As of December 31, 2023, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards were as follows: Unrecognized Remaining Options $ 2,845 1.4 RSUs 15,667 1.4 PSAs 4,611 1.2 Total unrecognized compensation expense at December 31, 2023 $ 23,123 During 2023, 2022 and 2021, the Company received $ 11.5 million, $ 5.0 million and $ 2.2 million in cash proceeds from the exercise of options, respectively. The Company recorded tax benefits of $ 5.0 million, $ 1.7 million and $ 0.2 million during 2023, 2022 and 2021, respectively, resulting from share-based awards. |
Store Closures
Store Closures | 12 Months Ended |
Dec. 31, 2023 | |
Store Closures [Abstract] | |
Store Closure | 27. Store Closures I n February 2023, the Company's board of directors approved the closing of 11 stores, all of which were closed during 2023. These stores, on average, were approximately 30 % larger than the Company's current prototype format and were underperforming financially. The closure of these stores resulted in a charge of $ 27.8 million in 2023 related to the impairment of leasehold improvements and right-of-use assets and is reflected in Store closure and other costs, net on the consolidated statements of income. The impairment charge represented the excess of the carrying value over the estimated fair value of each store's asset group. Accelerated depreciation on the closed stores' assets during 2023 was $ 5.9 million, and is reflected in Depreciation and amortiz ation on the consolidated statements of income. Severance expense was immaterial. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination, Description [Abstract] | |
Business Combination | 28. Business Combination On March 20, 2023 , the Company completed its acquisition of Ronald Cohn, Inc ., a corporation that owned two stores located in California operating under the ‘Sprouts Farmers Market’ name pursuant to a legacy trademark license arrangement. The aggregate consideration paid in the transaction consisted of 0.6 million of the Company’s common shares valued at $ 18.1 million using the closing price of the Company's common stock on March 20, 2023 and cash consideration of $ 13.0 million, subject to customary post-closing adjustments. The Company accounted for this transaction as a business combination in accordance with the acquisition method of accounting, which requires that the purchase price be allocated to the assets and liabilities acquired based on their estimated fair values as of the acquisition date. Acquisition-related costs were immaterial and were expensed as incurred. The financial results of the acquired stores have been included in the Company’s consolidated financial statements from the date of acquisition. The acquired stores' results of operations were not material to the Company's consolidated results during the fiscal year ended December 31, 2023. The net purchase price was allocated to the net tangible assets of ($ 4.9 ) million and a reacquired right intangible asset of $ 23.1 million based on their preliminary fair values on the acquisition date. The remaining unallocated net purchase price of $ 12.9 million was recorded as goodwill. Goodwill represents the future economic benefits to the Company from the acquisition, which include the Company's ability to fully control the Sprouts Farmers Market brand by termination of the legacy trademark license agreement and allowing further expansion opportunities in Southern California. The goodwill is not expected to be deductible for tax purposes. There have been no material changes to the purchase price allocation originally recorded in the first quarter of 2023. The provisional fair value estimates are subject to adjustment as additional information is obtained within the measurement period, which may not exceed twelve months from the acquisition date. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Years | Fiscal Years The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. Fiscal year 2023 ended on December 31, 2023 and included 52 weeks. Fiscal year 2022 ended on January 1, 2023 and included 52 weeks. Fiscal year 2021 ended on January 2, 2022 and included 52 weeks. Fiscal years 2023, 2022 and 2021 are referred to as 2023, 2022 and 2021, respectively. |
Significant Accounting Estimates | Significant Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s critical accounting estimates include inventories, lease assumptions, self-insurance reserves, goodwill and intangible assets, impairment of long-lived assets, and income taxes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America. Deposits in transit include sales through the end of the period, the majority of which were paid with credit and debit cards and settle within a few days of the sales transactions. The amounts due from banks for these transactions at each reporting date were as follows: As Of December 31, 2023 January 1, 2023 Due from banks for debit and credit card transactions $ 85,116 $ 77,665 |
Restricted Cash | Restricted Cash Restricted cash relates to the Company’s defined benefit plan forfeitures and the Company’s healthcare, general liability and workers’ compensation plan benefits of approximately $ 2.1 million and $ 2.0 million as of December 31, 2023 and January 1, 2023 , respectively, and is included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. |
Accounts Receivable | Accounts Receivable Accounts receivable primarily represents billings to vendors for scan, advertising and other rebates, receivables from ecommerce partners, billings to landlords for tenant allowances and receivables for manufacturer coupons. Accounts receivable also includes receivables from the Company’s insurance carrier for payments expected to be made in excess of self-insured retentions. The Company provides an allowance for doubtful accounts when a specific account is determined to be uncollectible. |
Inventories | Inventories Inventories consist of merchandise purchased for resale, which are stated at the lower of cost or net realizable value. The cost method is used for distribution center and store perishable department inventories by assigning costs to each of these items based on a first-in, first-out (FIFO) basis (net of vendor discounts). The Company’s non-perishable inventory is valued at the lower of cost or net realizable value using weighted averaging, the use of which approximates the FIFO method. Inventories are reduced for estimated losses related to shrinkage. The Company believes that all inventories are saleable and no allowances or reserves for obsolescence were recorded as of December 31, 2023 and January 1, 2023 . |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Expenditures for major additions and improvements to facilities as well as significant component replacements are capitalized. All other maintenance and repairs are charged to expense as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of income. Depreciation expense, which includes the amortization of assets recorded as finance leases, is computed using the straight-line method over the estimated useful lives of the individual assets. Terms of leases used in the determination of estimated useful lives may include renewal options if the exercise of the renewal option is determined to be reasonably certain. The following table includes the estimated useful lives of certain of the Company’s asset classes: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 7 to 20 years Leasehold improvements up to 15 years Buildings 40 years Store development costs, which include costs associated with the selection and procurement of real estate sites, are also included in property and equipment. These costs are included in leasehold improvements and are amortized over the remaining lease term of the successful sites with which they are associated. |
Self-Insurance Reserves | Self-Insurance Reserves The Company uses a combination of insurance and self-insurance programs to provide for costs associated with general liability, workers’ compensation and team member health benefits. Liabilities for self-insurance reserves are estimated based on independent actuarial estimates, which are based on historical information and assumptions about future events. The Company utilizes various techniques, including analysis of historical trends and actuarial valuation methods, to estimate the cost to settle reported claims and claims incurred but not yet reported as of the balance sheet date. The actuarial valuation methods consider loss development factors, which include the development time frame and expected claim reporting and settlement patterns, and expected loss costs, which include the expected frequency and severity of claim activity. Amounts expected to be recovered from insurance companies are included in the liability, with a corresponding amount recorded in accounts receivable. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the cost of acquired businesses in excess of the fair value of assets and liabilities acquired. The Company’s indefinite-lived intangible assets consist of trade names related to “Sprouts Farmers Market,” liquor licenses and reacquired rights recognized in connection with the acquisition of Ronald Cohn, Inc. in 2023. See Note 28, “Business Combination” for more information on this acquisition. Goodwill and indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth fiscal quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s impairment evaluation of goodwill consists of a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company’s qualitative assessment considered factors including changes in the competitive market, budget-to-actual performance, trends in market capitalization for the Company and its peers, turnover in key management personnel and overall changes in the macroeconomic environment. If this qualitative assessment indicates it is more likely than not that the estimated fair value of the reporting unit exceeds its carrying value, no further analysis is required, and goodwill is not impaired. Otherwise, the Company compares the estimated fair value of the reporting unit to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value. The impairment evaluation for the Company’s indefinite-lived intangible assets consists of a qualitative assessment, similar to that for goodwill. If the qualitative assessment indicates it is more likely than not that the estimated fair value exceeds its carrying value, no further analysis is required, and the asset is not impaired. Otherwise, the Company compares the estimated fair value of the asset to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value. The Company has determined its business consists of a single reporting unit. The Company has had no goodwill impairment charges for the past three fiscal years. See Note 8, “Intangible Assets” and Note 9, “Goodwill” for further discussion. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses its long-lived assets, including property and equipment and right-of-use assets, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. These events primarily include current period losses combined with a history of losses or a projection of continuing losses, a significant decrease in the market value of an asset or a decision to close or relocate a store. The Company groups and evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which independent identifiable cash flows are available. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the future undiscounted cash flows expected to be generated by that asset group. The Company’s impairment analysis contains management assumptions about key variables including sales growth rate, gross margin, payroll and other controllable expenses. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset group. The fair value of the asset group is estimated based on the discounted future cash flows using a discount rate commensurate with the related risk or comparable market values, if available. The Company recorded an impairment loss of $ 30.5 million in 2023 , of which $ 27.8 million was in connection with the decision to close certain underperforming stores (see Note 27, "Store Closures") and $ 2.7 million was in the normal course of business primarily related to the write-down of right-of-use assets and leasehold improvements. The Company recorded an impairment loss of $ 8.1 million and $ 4.8 million in 2022 and 2021, respectively, as part of the normal course of business primarily related to the write-down of right-of-use assets and leasehold improvements. These charges are recorded as a component of Store closure and other costs, net in the accompanying consolidated statements of income. |
Deferred Financing Costs | Deferred Financing Costs The Company capitalizes certain fees and costs incurred in connection with the issuance of debt. Deferred financing costs are amortized to interest expense over the term of the debt using the effective interest method. For the Credit Agreement and Former Credit Facility (as defined in Note 13, “Long-Term Debt and Finance Lease Liabilities”), deferred financing costs are amortized on a straight-line basis over the term of the facility. Upon prepayment, redemption or conversion of debt, the Company accelerates the recognition of an appropriate amount of financing costs as loss on extinguishment of debt. The current and noncurrent portions of deferred financing costs are included in prepaid expenses and other current assets and other assets, respectively, in the accompanying consolidated balance sheets. |
Lease | Leases The Company leases its stores, distribution centers, and administrative offices. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets, current portion of operating lease liabilities and noncurrent portion of operating lease liabilities in the accompanying consolidated balance sheets. Finance leases are included in property, plant, equipment, net, current portion of finance lease liabilities, and long-term debt and finance lease liabilities in the accompanying consolidated balance sheets. Operating lease payments are charged on a straight-line basis to rent expense, a component of selling, general and administrative expenses, over the lease term and finance lease payments are charged to interest expense and depreciation and amortization expense using a debt model over the lease term. The Company’s lease assets represent a right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities and the related rent expense are recognized at the lease commencement date (date on which the Company gains access to the property) based on the estimated present value of lease payments over the lease term, net of landlord allowances expected to be received. The Company accounts for the lease and non-lease components as a single lease component for all current classes of leases. Most of the Company’s lease agreements include variable payments related to pass-through costs for common area maintenance ("CAM"), property taxes, and insurance. Additionally, some of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels. These variable payments are not included in the measurement of the lease liability or asset and are expensed as incurred. As most of the Company’s lease agreements do not provide an implicit rate, the Company uses an estimated incremental borrowing rate, which is derived from third-party information available at the lease commencement date, in determining the present value of lease payments. The rate used is for a secured borrowing of a similar term as the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to twenty years or more. The exercise of lease renewal options is at the Company’s sole discretion. The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less (“short-term leases”) are not recorded on the balance sheet. The Company does not currently have any material short-term leases. Additionally, the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. The Company subleases certain real estate to third parties, which have all been classified as operating leases. The Company recognizes sublease income on a straight-line basis. |
Fair Value Measurements | Fair Value Measurements The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with ASC 820. This framework establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the impairment analysis of goodwill, intangible assets, and long-lived assets. Impairment losses related to store-level assets are calculated using significant unobservable inputs including the present value of future cash flows expected to be generated using a risk-adjusted market based weighted-average cost of capital, comparable store sales growth assumptions, and third party property appraisal data. Therefore, these inputs are classified as a level 3 measurement in the fair value hierarchy. |
Derivative Financial Instruments | Derivative Financial Instruments The Company records derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how the Company reflects the change in fair value of the derivative instrument in its financial statements. A derivative qualifies for hedge accounting if, at inception, the derivative is expected to be highly effective in offsetting the underlying hedged cash flows, and the Company fulfills the hedge documentation standards at the time it enters into the derivative contract. The Company designates its hedge based on the exposure it is hedging. For qualifying cash flow hedges, the Company records changes in fair value in other comprehensive income (“OCI”). The Company releases the derivative’s gain or loss from OCI to match the timing of the underlying hedged item’s effect on earnings. The Company reviews the effectiveness of its hedging instruments quarterly. The Company recognizes changes in the fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. The Company discontinues hedge accounting for any hedge that is no longer evaluated to be highly effective. The Company does not enter into derivative financial instruments for trading or speculative purposes, and it monitors the financial stability and credit standing of its counterparties in these transactions. The Company had no active derivative financial instruments as of December 31, 2023 or January 1, 2023 . |
Share-Based Compensation | Share-Based Compensation The Company measures share-based compensation cost at the grant date based on the fair value of the award and recognizes share-based compensation cost as expense over the vesting period. As share-based compensation expense recognized in the consolidated statements of income is based on awards ultimately expected to vest, the amount of expense has been reduced for actual forfeitures as they occur. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value for each option grant. See Note 26, “Share-Based Compensation” for a discussion of assumptions used in the calculation of fair values. Application of alternative assumptions could produce different estimates of the fair value of share-based compensation and, consequently, the related amounts recognized in the accompanying consolidated statements of income. The grant date fair value of restricted stock units (“RSUs”) and performance share awards (“PSAs”) is based on the closing price per share of the Company’s common stock on the grant date. The Company recognizes compensation expense for time-based awards on a straight-line basis and for performance-based awards on the graded-vesting method over the vesting period of the awards. |
Revenue Recognition | Revenue Recognition The Company’s performance obligations are satisfied upon the transfer of goods to the customer, which occurs at the point of sale, and payment from customers is also due at the time of sale. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as sales when they are redeemed by the customer and the performance obligation is satisfied by the Company. The Company’s gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. A summary of the activity and balances in the gift card liability, net is as follows : Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Beginning Balance $ 10,906 $ 12,586 $ 15,888 Gift cards issued during the period but not redeemed (1) 4,271 4,291 5,711 Revenue recognized from beginning liability ( 4,611 ) ( 5,971 ) ( 9,013 ) Ending Balance $ 10,566 $ 10,906 $ 12,586 (1) net of estimated breakage The nature of goods the Company transfers to customers at the point of sale are inventories, consisting of merchandise purchased for resale. The Company does not have any material contract assets or receivables from contracts with customers, any revenue recognized in the current period from performance obligations satisfied in previous periods, any contract performance obligations, or any material costs to obtain or fulfill a contract as of December 31, 2023 . |
Cost of Sales | Cost of Sales Cost of sales includes the cost of inventory sold during the period, including the direct costs of purchased merchandise (net of discounts and allowances), distribution and supply chain costs, and depreciation and amortization for distribution centers and supply chain related assets. The Company recognizes vendor allowances and merchandise volume related rebate allowances as a reduction of inventories during the period when earned and reflects the allowances as a component of cost of sales as the inventory is sold. The Company’s largest supplier accounted for approximately 47 %, 45 % and 44 % of total purchases during 2023, 2022 and 2021, respectively. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses primarily consist of salaries, wages and benefits costs, share-based compensation, occupancy costs (including rent, property taxes, utilities, CAM and insurance), advertising costs, buying costs, pre-opening and other administrative costs. The Company charges certain vendors to place advertisements in the Company’s in-store guide and circulars under a cooperative advertising program. The Company records rebates received from vendors in connection with cooperative advertising programs as a reduction to advertising costs when the allowance represents a reimbursement of a specific incremental and identifiable cost. Advertising costs are expensed as incurred. Advertising expense, net of rebates, was $ 45.8 million, $ 49.2 million and $ 45.9 million for 2023, 2022 and 2021, respectively. |
Depreciation and amortization | Depreciation and amortization Depreciation and amortization expense (exclusive of depreciation included in cost of sales) primarily consists of depreciation and amortization for buildings, store leasehold improvements, and equipment. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income offset by deferred tax liabilities. Changes in recognition or measurement are reflected in the period in which the judgment occurs. The Company files income tax returns for federal purposes and in many states. The Company’s tax filings remain subject to examination by applicable tax authorities for a certain length of time, generally three years, following the tax year to which those filings relate. The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 % likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as part of income tax expense. |
Share Repurchases | Share Repurchases The Company has elected to retire shares repurchased to date. Shares retired become part of the pool of authorized but unissued shares. The Company has elected to record the purchase price of the retired shares in excess of par value directly as a reduction of retained earnings. The cost of common shares repurchased includes a 1% excise tax imposed as part of the Inflation Reduction Act of 2022. |
Net Income per Share | Net Income per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the fiscal period. Diluted net income per share is based on the weighted average number of shares outstanding, plus, where applicable, shares that would have been outstanding related to dilutive options, PSAs and RSUs. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and the unrealized gains or losses on derivative instruments that qualify for and have been designated as cash flow hedges, for all periods presented. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Reference Rate Reform In March 2020 and January 2021, the FASB issued ASU no. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and ASU 2021-01, “Reference Rate Reform (Topic 848): Scope,” respectively. The amendments in these updates provide optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for contracts, hedging relationships, and other transactions affected by reference rate reform. During 2022, the Company adopted certain optional expedients provided under Topic 848 that permitted its hedging relationships to continue without de-designation upon changes due to reference rate reform. The adoption of this guidance resulted in no material impact to the Company’s consolidated financial statements. See Note 22, “Derivative Financial Instruments” for more information on our hedging activities. Income Taxes –Accounting for Income Taxes In December 2019, the FASB issued ASU no. 2019-12, “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes.” Among other things, the amendment removes certain exceptions for periods with operating losses, and reduces the complexity surrounding franchise tax, step up in tax basis of goodwill in conjunction with a business combination, and timing of enacting changes in tax laws during interim periods. The Company adopted this standard effective January 4, 2021 on a prospective basis. There was no impact on the Company’s consolidated financial statements. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted Segment Reporting – Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU no. 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures." The amendments in this update increase required disclosures about a public entity's reportable segments, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM. The guidance will be effective for the Company for its fiscal year 2024 and for interim periods starting in the first quarter of its fiscal year 2025. Early adoption is permitted, and the guidance is required to be applied retrospectively. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures. Income Taxes – Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU no. 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures." The amendments in this update enhance a public entity's annual income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance will be effective for the Company for its fiscal year 2025. Early adoption is permitted, and the guidance should be applied prospectively, with an option to apply it retrospectively. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements and disclosures. No other new accounting pronouncements issued or effective during 2023 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Sales by as Perishable and Non-Perishable | The following is a breakdown of the Company’s perishable and non-perishable sales mix: 2023 2022 2021 Perishables 57.3 % 58.0 % 57.7 % Non-Perishables 42.7 % 42.0 % 42.3 % |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Amounts Due from Banks | The amounts due from banks for these transactions at each reporting date were as follows: As Of December 31, 2023 January 1, 2023 Due from banks for debit and credit card transactions $ 85,116 $ 77,665 |
Estimated Useful Lives of Asset Classes | The following table includes the estimated useful lives of certain of the Company’s asset classes: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 7 to 20 years Leasehold improvements up to 15 years Buildings 40 years |
Schedule of Estimated Breakage Revenue Recognized | A summary of the activity and balances in the gift card liability, net is as follows : Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Beginning Balance $ 10,906 $ 12,586 $ 15,888 Gift cards issued during the period but not redeemed (1) 4,271 4,291 5,711 Revenue recognized from beginning liability ( 4,611 ) ( 5,971 ) ( 9,013 ) Ending Balance $ 10,566 $ 10,906 $ 12,586 (1) net of estimated breakage |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | A summary of accounts receivable is as follows: As Of December 31, 2023 January 1, 2023 Landlords $ 5,451 $ 232 Vendors 3,168 3,544 Insurance 2,884 2,320 Ecommerce 7,682 6,988 Other 11,128 3,024 Total $ 30,313 $ 16,108 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | A summary of prepaid expenses and other current assets is as follows: As Of December 31, 2023 January 1, 2023 Prepaid expenses $ 22,062 $ 33,034 Restricted cash 2,076 1,959 Income tax receivable 23,559 18,155 Other current assets 770 770 Total $ 48,467 $ 53,918 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | A summary of property and equipment, net is as follows: As Of December 31, 2023 January 1, 2023 Land and finance lease assets $ 16,562 $ 15,753 Furniture, fixtures and equipment 1,002,824 850,357 Leasehold improvements 715,489 679,880 Construction in progress 92,066 110,106 Total property and equipment 1,826,941 1,656,096 Accumulated depreciation and amortization ( 1,028,234 ) ( 933,855 ) Property and equipment, net $ 798,707 $ 722,241 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Cost | Lease cost includes both the fixed and variable expenses recorded for leases. The components of lease cost are as follows: Year Ended Classification December 31, 2023 January 1, 2023 January 2, 2022 Operating lease cost Selling, general and administrative expenses (1), (2) $ 232,745 $ 204,559 $ 196,602 Finance lease cost: Amortization of Property Depreciation and amortization 1,062 966 966 Interest on lease liabilities Interest expense 816 852 906 Variable lease cost Selling, general and administrative expenses (1), (2) 70,197 65,979 60,763 Sublease income Selling, general and administrative expenses ( 832 ) ( 833 ) ( 839 ) Total net lease cost $ 303,988 $ 271,523 $ 258,398 (1) Supply chain-related amounts of $ 18.2 million, $ 12.4 million and $ 10.6 million were included in cost of sales for 2023, 2022 and 2021, respectively. (2) Lease cost related to closed store locations of $ 6.3 million, $ 1.3 million and $ 0.7 million were included in Store closure and other costs, net for 2023, 2022 and 2021, respectively. |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: As Of Classification December 31, 2023 January 1, 2023 Assets Operating Operating lease assets $ 1,322,854 $ 1,106,524 Finance Property and equipment, net 7,127 7,285 Total lease assets $ 1,329,981 $ 1,113,809 Liabilities Current: Operating Current portion of operating lease liabilities $ 126,271 $ 135,584 Finance Current portion of finance lease liabilities 1,032 1,012 Noncurrent: Operating Long-term operating lease liabilities 1,399,676 1,145,173 Finance Long-term debt and finance lease liabilities 8,685 8,902 Total lease liabilities $ 1,535,664 $ 1,290,671 2023 2022 2021 Weighted average remaining lease term (years): Operating leases 10.0 9.4 9.6 Finance leases 6.7 7.8 8.8 Weighted average discount rate: Operating leases 7.2 % 7.1 % 6.7 % Finance leases 8.3 % 8.4 % 8.4 % |
Supplemental Cash Flow and Other Information Related to Leases | Supplemental cash flow and other information related to leases is as follows: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows for operating leases $ 228,411 $ 207,516 $ 182,926 Operating cash flows for finance leases 816 852 906 Lease assets obtained in exchange for lease liabilities: Finance leases $ 809 $ — $ — Operating leases 364,997 157,269 139,349 |
Summary of Maturities of Lease Liabilities | A summary of maturities of lease liabilities is as follows: Operating Leases (1), (2) Finance Leases Total 2024 $ 208,602 $ 1,780 $ 210,382 2025 267,082 2,107 269,189 2026 231,900 1,945 233,845 2027 215,856 2,032 217,888 2028 185,758 1,766 187,524 Thereafter 1,072,847 3,241 1,076,088 Total lease payments 2,182,045 12,871 2,194,916 Less: Imputed interest ( 656,098 ) ( 3,154 ) ( 659,252 ) Total lease liabilities 1,525,947 9,717 1,535,664 Less: Current portion ( 126,271 ) ( 1,032 ) ( 127,303 ) Long-term lease liabilities $ 1,399,676 $ 8,685 $ 1,408,361 (1) Operating lease payments include $ 62.5 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $ 584.1 million of legally binding minimum lease payments for leases executed but not yet commenced. (2) These amounts include rental income related to subtenant agreements under which we will receive $ 1.1 million in 2024, $ 0.9 million in 2025, $ 0.8 million in 2026, $ 0.7 million in 2027, $ 0.3 million in 2028 and $ 0.1 million thereafter. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Activity and Balances in Intangible Assets | A summary of the activity and balances in intangible assets is as follows: Balance at January 2, 2022 Additions/Adjustments Balance at January 1, 2023 Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived liquor licenses 2,023 — 2,023 Total intangible assets $ 184,960 $ — $ 184,960 Balance at January 1, 2023 Additions/Adjustments Balance at December 31, 2023 Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived reacquired rights — 23,100 23,100 Indefinite-lived liquor licenses 2,023 — 2,023 Total intangible assets $ 184,960 $ 23,100 $ 208,060 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Activity and Balance in Goodwill | A summary of the activity and balances in goodwill is as follows: Balance at January 1, 2023 Additions Balance at December 31, 2023 Goodwill $ 368,878 $ 12,863 $ 381,741 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Liabilities | A summary of accrued liabilities is as follows: As Of December 31, 2023 January 1, 2023 Self-insurance reserves $ 25,012 $ 23,954 Accrued occupancy related (CAM, property taxes, etc.) 23,935 24,981 Gift cards, net of breakage 10,566 10,906 Accrued sales, use and excise tax 14,296 13,820 Other accrued liabilities 91,078 77,645 Total $ 164,887 $ 151,306 |
Accrued Salaries and Benefits (
Accrued Salaries and Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Salaries and Benefits | A summary of accrued salaries and benefits is as follows: As Of December 31, 2023 January 1, 2023 Bonuses $ 33,890 $ 23,679 Payroll 20,652 19,873 Vacation 18,050 16,732 Severance and other 2,160 1,290 Total $ 74,752 $ 61,574 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long Term Debt And Finance Lease Liabilities [Abstract] | |
Summary of Long-Term Debt and Finance Lease Liabilities | A summary of long-term debt and finance lease liabilities is as follows: As Of Facility Maturity Interest Rate December 31, 2023 January 1, 2023 Senior secured debt $ 700.0 million Credit Agreement March 25, 2027 Variable $ 125,000 $ 250,000 Finance lease liabilities Various n/a 8,685 8,902 Long-term debt and finance lease liabilities $ 133,685 $ 258,902 |
Summary of Maturities of Long-term Debt | A summary of maturities of long-term debt is as follows: $700 million Credit Agreement 2024 $ — 2025 — 2026 — 2027 125,000 2028 — Thereafter — Total $ 125,000 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Long-Term Liabilities | A summary of other long-term liabilities is as follows: As Of December 31, 2023 January 1, 2023 Long-term portion of self-insurance reserves $ 22,826 $ 23,658 Other 13,444 12,682 Total $ 36,270 $ 36,340 |
Self-Insurance Programs (Tables
Self-Insurance Programs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Schedule of Changes in Self-insurance Reserves | The following table summarizes the changes in the Company's self-insurance reserves through December 31, 2023: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Beginning Balance $ 47,612 $ 50,529 $ 48,518 Expenses, net of actuarial adjustments 85,148 76,720 85,892 Claim Payments ( 84,922 ) ( 79,637 ) ( 83,881 ) Ending Balance 47,838 47,612 50,529 Less: Current portion ( 25,012 ) ( 23,954 ) ( 27,136 ) Long-term portion $ 22,826 $ 23,658 $ 23,393 |
Defined Contribution Plan (Tabl
Defined Contribution Plan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Postemployment Benefits [Abstract] | |
Total Expense Recorded for Matching under Defined Contribution Plans | otal expense recorded for the matching under the Plan, which is reflected in Selling, general and administrative expenses on the consolidated statements of income: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 $ 8,496 $ 7,820 $ 7,517 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | The income tax provision consists of the following: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 U.S. Federal—current $ 67,898 $ 66,398 $ 60,329 U.S. Federal—deferred ( 5,927 ) 1,028 ( 1,663 ) U.S. Federal—total 61,971 67,426 58,666 State—current 21,902 19,823 19,715 State—deferred 1,011 900 ( 146 ) State—total 22,913 20,723 19,569 Total provision $ 84,884 $ 88,149 $ 78,235 |
Tax Rate Reconciliation | Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pre-tax income as a result of the following: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 5.4 4.7 4.8 Enhanced charitable contribution impact ( 1.0 ) ( 0.9 ) ( 1.5 ) Non-deductible Executive Compensation 1.4 0.9 0.3 Benefit of federal tax credit ( 0.7 ) ( 0.5 ) ( 0.4 ) Excess tax benefits from share based payments ( 1.2 ) ( 0.4 ) ( 0.1 ) Other, net ( 0.2 ) 0.4 0.2 Effective income tax rate 24.7 % 25.2 % 24.3 % |
Components of Deferred Tax Assets and Deferred Tax Liabilities | Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows: As Of December 31, 2023 January 1, 2023 Deferred tax assets Employee benefits $ 18,329 $ 16,052 Tax credits 105 166 Operating leases 392,168 329,154 Other lease related 6,137 5,740 Other accrued liabilities 4,320 4,004 Charitable contribution carryforward 3,343 2,819 Inventories and other 2,905 2,605 Total gross deferred tax assets 427,307 360,540 Less: Valuation Allowance ( 3,343 ) ( 917 ) Total deferred tax assets, net of valuation allowance 423,964 359,623 Deferred tax liabilities Depreciation and amortization ( 80,765 ) ( 83,091 ) Intangible assets ( 64,668 ) ( 52,413 ) Operating leases ( 339,973 ) ( 284,377 ) Asset retirement obligations ( 939 ) ( 865 ) Total gross deferred tax liabilities ( 486,345 ) ( 420,746 ) Net deferred tax liability $ ( 62,381 ) $ ( 61,123 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: As Of December 31, 2023 January 1, 2023 January 2, 2022 Beginning balance $ 1,119 $ 1,770 $ 1,803 Additions based on tax positions related to the 58 43 16 Additions based on tax positions related to prior years — — 31 Reductions for settlements with taxing authorities — ( 694 ) — Reduction due to lapse of applicable statute of limitations ( 700 ) — — Reductions for tax positions for prior years — — ( 80 ) Ending balance $ 477 $ 1,119 $ 1,770 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Options Exercised and Other Shares in Exchange for Issuance of Shares of Common Stock | The following table outlines the options exercised in exchange for the issuance of shares of common stock during 2023, 2022 and 2021: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Options exercised 637,387 218,509 115,123 Other share issuances under stock plans 811,729 636,955 462,173 |
Schedule of Share Repurchase Activity under Share Repurchase Programs | Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Year Ended December 31, 2023 January 1, 2023 Number of common shares acquired 5,864,246 6,897,082 Average price per common share acquired $ 35.00 $ 28.99 Total cost of common shares acquired $ 205,262 $ 199,980 |
Schedule of Share Repurchase Activiy | The following table outlines the common stock share repurchase programs authorized by the Company’s board of directors and the related repurchase activity and available authorization as of December 31, 2023: Effective date Expiration date Amount Cost of Authorization March 2, 2022 December 31, 2024 $ 600,000 $ 391,619 $ 208,381 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share | A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts): Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Basic net income per share: Net income $ 258,856 $ 261,164 $ 244,157 Weighted average shares outstanding - basic 102,479 108,232 115,377 Basic net income per share $ 2.53 $ 2.41 $ 2.12 Diluted net income per share: Net income $ 258,856 $ 261,164 $ 244,157 Weighted average shares outstanding - basic 102,479 108,232 115,377 Dilutive effect of share-based awards: Assumed exercise of options to purchase shares 343 337 215 RSUs 524 394 390 PSAs 44 176 95 Weighted average shares and 103,390 109,139 116,077 Diluted net income per share $ 2.50 $ 2.39 $ 2.10 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Gains and Losses of Derivative Instruments | Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Consolidated Statements of Interest expense, net $ — $ 2,021 $ 5,778 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive income (loss) for the year ended January 1, 2023: Cash Flow Balance at January 2, 2022 $ ( 3,758 ) Other comprehensive income, net of tax Unrealized gains on cash flow hedging activities, net of income tax of $ 1,819 5,259 Reclassification of net losses on cash flow hedges to net income, net of income 520 ) ( 1,501 ) Total other comprehensive income 3,758 Balance at January 1, 2023 $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the Company’s fair value hierarchy for the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and January 1, 2023: December 31, 2023 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 125,000 $ — $ 125,000 Total financial liabilities $ — $ 125,000 $ — $ 125,000 January 1, 2023 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 250,000 $ — $ 250,000 Total financial liabilities $ — $ 250,000 $ — $ 250,000 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Disaggregation of Revenue | In accordance with ASC 606, the following table represents a disaggregation of revenue for 2023, 2022 and 2021: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Perishables $ 3,915,971 57.3 % $ 3,717,642 58.0 % $ 3,518,181 57.7 % Non-Perishables 2,921,413 42.7 % 2,686,581 42.0 % 2,581,688 42.3 % Net Sales $ 6,837,384 100.0 % $ 6,404,223 100.0 % $ 6,099,869 100.0 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Estimated Fair Values of Options Granted | The estimated weighted average fair values of options granted during 2023, 2022 and 2021 were $ 12.63 , $ 10.58 and $ 7.66 , respectively, and were calculated using the following assumptions in the table below: 2023 2022 2021 Dividend yield 0.00 % 0.00 % 0.00 % Expected volatility 39.48 % 36.59 % 36.35 % Risk free interest rate 3.78 % 2.12 % 0.83 % Expected term, in years 4.50 4.50 4.50 | |
Summary of Grant Date Weighted Average Fair Value of Options Granted and Options Forfeited | The following table summarizes grant date weighted average fair value of options granted and options forfeited: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Grant date weighted average fair value of options granted $ 12.63 $ 10.58 $ 7.66 Grant date weighted average fair value of options forfeited $ 10.98 $ 8.66 $ 7.10 | |
Summary of Option Activity | The following table summarizes option activity during 2023: Number of Weighted Weighted Aggregate Outstanding at January 1, 2023 1,318,158 $ 20.93 Granted 221,085 32.95 Forfeited ( 47,481 ) 30.87 Exercised ( 637,387 ) 17.97 $ 12,151 Outstanding at December 31, 2023 854,375 25.70 4.53 $ 19,938 Exercisable—December 31, 2023 424,598 20.82 3.61 $ 11,983 Vested/Expected to vest—December 31, 2023 854,375 $ 25.70 4.53 $ 19,938 | |
Summary of Weighted Average Grant Date Fair Value of RSUs Awarded | The following table summarizes the weighted average grant date fair value of RSUs awarded during 2023, 2022 and 2021: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 RSUs awarded $ 33.21 $ 31.01 $ 24.11 | |
Summary of RSUs Activity | The following table summarizes RSU activity during 2023: Number of Weighted Outstanding at January 1, 2023 972,583 $ 26.94 Awarded 514,055 33.21 Vested ( 543,030 ) 24.44 Forfeited ( 75,412 ) 31.84 Outstanding at December 31, 2023 868,196 $ 31.79 | |
Summary of PSA Activity | The following table summarizes PSA activity during 2023: Number of Weighted Outstanding at January 1, 2023 460,106 $ 24.12 Awarded 172,059 32.95 Vested ( 268,699 ) 16.83 Forfeited ( 34,954 ) 32.18 PSAs earned 107,998 16.91 PSAs not earned — — Outstanding at December 31, 2023 436,510 $ 29.66 | |
Summary of Share-Based Compensation Expense in Selling, General and Administrative Expenses | The Company presents share-based compensation expense in Selling, general and administrative expenses on the Company’s consolidated statements of income. The amount recognized was as follows: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Share-based compensation expense $ 18,898 $ 16,603 $ 15,883 Income tax benefit ( 3,007 ) ( 2,495 ) ( 2,450 ) Net share-based compensation expense $ 15,891 $ 14,108 $ 13,433 | |
Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards | As of December 31, 2023, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards were as follows: Unrecognized Remaining Options $ 2,845 1.4 RSUs 15,667 1.4 PSAs 4,611 1.2 Total unrecognized compensation expense at December 31, 2023 $ 23,123 | |
Awards Granted Under the 2022 Incentive Plan [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Summary of Share-Based Compensation Awards Granted | The Company granted the following awards during 2023 and 2022 under the 2022 Incentive Plan: Grant Date RSUs PSAs Options March 14, 2023 491,729 172,059 221,085 May 1, 2023 2,931 — — June 7, 2023 1,271 — — September 5, 2023 6,408 — — September 11, 2023 10,204 — — October 30, 2023 1,512 — — Total 514,055 172,059 221,085 Weighted-average grant date fair value $ 33.21 $ 32.95 $ 12.63 Weighted-average exercise price — — $ 32.95 Grant Date RSUs PSAs Options June 7, 2022 58,057 — — September 7, 2022 21,598 — — October 10, 2022 6,506 — — Total 86,161 — — Weighted-average grant date fair value $ 27.74 $ — $ — Weighted-average exercise price — — — | |
Awards Granted Under the 2013 Incentive Plan [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Summary of Share-Based Compensation Awards Granted | The Company granted the following awards during 2022 under the 2013 Incentive Plan: Grant Date RSUs PSAs Options March 15, 2022 370,177 147,846 211,352 March 21, 2022 104,913 14,260 20,270 Total 475,090 162,106 231,622 Weighted-average grant date fair value $ 31.60 $ 31.52 $ 10.58 Weighted-average exercise price — — $ 31.52 |
Organization and Description _2
Organization and Description of Business - Additional Information (Detail) | Dec. 31, 2023 Store State |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operating stores | Store | 407 |
Number of states entity operates | State | 23 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segment | 1 |
Basis of Presentation - Summary
Basis of Presentation - Summary of Sales by as Perishable and Non-Perishable (Detail) - Sales Revenue, Goods, Net [Member] - Product Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Revenue from External Customer [Line Items] | |||
Percentage of supplier accountability on total purchase | 100% | 100% | 100% |
Perishables [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of supplier accountability on total purchase | 57.30% | 58% | 57.70% |
Non-Perishables [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of supplier accountability on total purchase | 42.70% | 42% | 42.30% |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | ||
Summary Of Significant Accounting Policy [Line Items] | ||||
Fiscal period duration | 364 days | 364 days | 364 days | |
Impairment, goodwill | $ 0 | $ 0 | $ 0 | |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Increase (Decrease) in Other Operating Assets | |||
Impairment, long lived assets | $ 30,500,000 | 8,100,000 | 4,800,000 | |
Option to extend lease term, Description | The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. | |||
Advertising expense, net of rebates | $ 45,800,000 | 49,200,000 | 45,900,000 | |
Percentage of income tax to be realized | 50% | |||
Store closing charges | $ 30,500,000 | 8,100,000 | $ 4,800,000 | |
Leasehold Improvements, Gross | 715,489,000 | 679,880,000 | ||
Operating lease assets | 1,322,854,000 | 1,106,524,000 | ||
Operating lease liabilities | [1],[2] | 1,525,947,000 | ||
Increased retained earnings | $ 373,612,000 | $ 320,012,000 | ||
Minimum [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Renewal term of lease | 1 year | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Renewal term of lease | 20 years | |||
Underperforming Stores [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Impairment, long lived assets | $ 27,800,000 | |||
Operating Segments [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Impairment, long lived assets | $ 2,700,000 | |||
Operating Segments [Member] | Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Percentage of supplier accountability on total purchase | 47% | 45% | 44% | |
Inventory Valuation Reserve [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Allowances or reserves for inventories | $ 0 | $ 0 | ||
Prepaid Expenses and Other Current Assets [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Restricted cash related to defined benefit plan forfeitures and healthcare, general liability and workers’ compensation plan benefits | $ 2,100,000 | $ 2,000,000 | ||
[1] Operating lease payments include $ 62.5 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $ 584.1 million of legally binding minimum lease payments for leases executed but not yet commenced. These amounts include rental income related to subtenant agreements under which we will receive $ 1.1 million in 2024, $ 0.9 million in 2025, $ 0.8 million in 2026, $ 0.7 million in 2027, $ 0.3 million in 2028 and $ 0.1 million thereafter. |
Significant Accounting Polici_5
Significant Accounting Policies - Amounts Due from Banks (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Cash and Cash Equivalents [Abstract] | ||
Due from banks for debit and credit card transactions | $ 85,116 | $ 77,665 |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives of Asset Classes (Detail) | Dec. 31, 2023 |
Computer hardware and software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer hardware and software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Estimated Breakage Revenue Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | ||
Disaggregation Of Revenue [Line Items] | ||||
Beginning Balance | $ 10,906 | $ 12,586 | $ 15,888 | |
Gift cards issued during the period but not redeemed | [1] | 4,271 | 4,291 | 5,711 |
Revenue recognized from beginning liability | (4,611) | (5,971) | (9,013) | |
Ending Balance | $ 10,566 | $ 10,906 | $ 12,586 | |
[1] net of estimated breakage |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Receivables [Abstract] | ||
Landlords | $ 5,451 | $ 232 |
Vendors | 3,168 | 3,544 |
Insurance | 2,884 | 2,320 |
Ecommerce | 7,682 | 6,988 |
Other | 11,128 | 3,024 |
Total | $ 30,313 | $ 16,108 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for vendor receivables | $ 1.3 | $ 1.4 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 22,062 | $ 33,034 |
Restricted cash | 2,076 | 1,959 |
Income tax receivable | 23,559 | 18,155 |
Other current assets | 770 | 770 |
Total | $ 48,467 | $ 53,918 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Property, Plant and Equipment, Net [Abstract] | ||
Land and finance lease assets | $ 16,562 | $ 15,753 |
Furniture, fixtures and equipment | 1,002,824 | 850,357 |
Leasehold improvements | 715,489 | 679,880 |
Construction in progress | 92,066 | 110,106 |
Total property and equipment | 1,826,941 | 1,656,096 |
Accumulated depreciation and amortization | (1,028,234) | (933,855) |
Property and equipment, net | $ 798,707 | $ 722,241 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation expense | $ 136.6 | $ 125.7 | $ 124.1 |
Assets Impairment expense | $ 30.5 | $ 8.1 | $ 4.8 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | ||
Finance lease cost: | ||||
Total net lease cost | $ 303,988 | $ 271,523 | $ 258,398 | |
Selling, General and Administrative Expenses [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease cost | [1],[2] | 232,745 | 204,559 | 196,602 |
Finance lease cost: | ||||
Variable lease cost | [1],[2] | 70,197 | 65,979 | 60,763 |
Sublease income | (832) | (833) | (839) | |
Depreciation and Amortization [Member] | ||||
Finance lease cost: | ||||
Amortization of Property and Equipment | 1,062 | 966 | 966 | |
Interest Expense [Member] | ||||
Finance lease cost: | ||||
Interest on lease liabilities | $ 816 | $ 852 | $ 906 | |
[1] Lease cost related to closed store locations of $ 6.3 million, $ 1.3 million and $ 0.7 million were included in Store closure and other costs, net for 2023, 2022 and 2021, respectively. Supply chain-related amounts of $ 18.2 million, $ 12.4 million and $ 10.6 million were included in cost of sales for 2023, 2022 and 2021, respectively. |
Leases - Components of Lease _2
Leases - Components of Lease Cost (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Cost of Sales [Member] | |||
Lessee Lease Description [Line Items] | |||
Supply chain-related amounts | $ 18.2 | $ 12.4 | $ 10.6 |
Store closure and other costs [Member] | |||
Lessee Lease Description [Line Items] | |||
Lease Cost Related To Closed Stores | $ 6.3 | $ 1.3 | $ 0.7 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Leases [Abstract] | ||||
Operating lease assets | $ 1,322,854 | $ 1,106,524 | ||
Finance, Assets | $ 7,127 | $ 7,285 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net of accumulated depreciation | Property and equipment, net of accumulated depreciation | ||
Total lease assets | $ 1,329,981 | $ 1,113,809 | ||
Operating, Current | 126,271 | [1],[2] | 135,584 | |
Finance, Current | 1,032 | 1,012 | ||
Operating, Noncurrent | 1,399,676 | [1],[2] | 1,145,173 | |
Finance, Noncurrent | $ 8,685 | $ 8,902 | ||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt and finance lease liabilities | Long-term debt and finance lease liabilities | ||
Total lease liabilities | $ 1,535,664 | $ 1,290,671 | ||
Weighted average remaining lease term (years) | ||||
Operating leases | 10 years | 9 years 4 months 24 days | 9 years 7 months 6 days | |
Finance leases | 6 years 8 months 12 days | 7 years 9 months 18 days | 8 years 9 months 18 days | |
Weighted average discount rate | ||||
Operating leases | 7.20% | 7.10% | 6.70% | |
Finance leases | 8.30% | 8.40% | 8.40% | |
[1] Operating lease payments include $ 62.5 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $ 584.1 million of legally binding minimum lease payments for leases executed but not yet commenced. These amounts include rental income related to subtenant agreements under which we will receive $ 1.1 million in 2024, $ 0.9 million in 2025, $ 0.8 million in 2026, $ 0.7 million in 2027, $ 0.3 million in 2028 and $ 0.1 million thereafter. |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Other Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Cash paid for amounts included in measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ 228,411 | $ 207,516 | $ 182,926 |
Operating cash flows for finance leases | 816 | 852 | 906 |
Lease assets obtained in exchange for lease liabilities: | |||
Finance leases | 809 | 0 | 0 |
Operating leases | $ 364,997 | $ 157,269 | $ 139,349 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | ||
Operating Leases | ||||
2024 | [1],[2] | $ 208,602 | ||
2025 | [1],[2] | 267,082 | ||
2026 | [1],[2] | 231,900 | ||
2027 | [1],[2] | 215,856 | ||
2028 | [1],[2] | 185,758 | ||
Thereafter | [1],[2] | 1,072,847 | ||
Total lease payments | [1],[2] | 2,182,045 | ||
Less: Imputed interest | [1],[2] | (656,098) | ||
Total lease liabilities | [1],[2] | 1,525,947 | ||
Less: Current portion | (126,271) | [1],[2] | $ (135,584) | |
Long-term operating lease liabilities | 1,399,676 | [1],[2] | 1,145,173 | |
Finance Leases | ||||
2024 | 1,780 | |||
2025 | 2,107 | |||
2026 | 1,945 | |||
2027 | 2,032 | |||
2028 | 1,766 | |||
Thereafter | 3,241 | |||
Total lease payments | 12,871 | |||
Less: Imputed interest | (3,154) | |||
Total lease liabilities | 9,717 | |||
Less: Current portion | (1,032) | (1,012) | ||
Finance lease liabilities | 8,685 | $ 8,902 | ||
Total | ||||
2024 | 210,382 | |||
2025 | 269,189 | |||
2026 | 233,845 | |||
2027 | 217,888 | |||
2028 | 187,524 | |||
Thereafter | 1,076,088 | |||
Total lease payments | 2,194,916 | |||
Less: Imputed interest | 659,252 | |||
Total lease liabilities | 1,535,664 | |||
Less: Current portion | 127,303 | |||
Long-term lease liabilities | $ 1,408,361 | |||
[1] Operating lease payments include $ 62.5 million related to periods covered by options to extend lease terms that are reasonably certain of being exercised and exclude $ 584.1 million of legally binding minimum lease payments for leases executed but not yet commenced. These amounts include rental income related to subtenant agreements under which we will receive $ 1.1 million in 2024, $ 0.9 million in 2025, $ 0.8 million in 2026, $ 0.7 million in 2027, $ 0.3 million in 2028 and $ 0.1 million thereafter. |
Leases - Summary of Maturitie_2
Leases - Summary of Maturities of Lease Liabilities (Parenthetical) (Detail) $ in Millions | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
Operating lease option to extend reasonably certain of being exercised | $ 62.5 |
Operating lease legally binding minimum payments for leases that have not yet commenced | 584.1 |
Lessee Operating Lease Liability Subtenant Due Next Twelve Months | 1.1 |
Lessee Operating Lease Liability Subtenant Due YearTwo | 0.9 |
Lessee Operating Lease Liability Subtenant Due Year Three | 0.8 |
Lessee Operating Lease Liability Subtenant Due Year Four | 0.7 |
Lessee Operating Lease Liability Subtenant Due Year Five | 0.3 |
Lessee Operating Lease Liability Subtenant Due After Year Five | $ 0.1 |
Intangible Assets - Summary of
Intangible Assets - Summary of Activity and Balances in Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Intangible Assets [Line Items] | ||
Indefinite-lived Gross Intangible Assets, Beginning Balance | $ 184,960 | |
Indefinite-lived Gross Intangible Assets, Additions/Adjustments | 23,100 | $ 0 |
Indefinite-lived Gross Intangible Assets, Ending Balance | 208,060 | 184,960 |
Gross Intangible Assets, Beginning Balance | 184,960 | 184,960 |
Gross Intangible Assets, Ending Balance | 184,960 | |
Indefinite-lived trade names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Gross Intangible Assets, Beginning Balance | 182,937 | 182,937 |
Indefinite-lived Gross Intangible Assets, Additions/Adjustments | 0 | 0 |
Indefinite-lived Gross Intangible Assets, Ending Balance | 182,937 | 182,937 |
Indefinite-lived reacquired rights [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Gross Intangible Assets, Beginning Balance | 0 | |
Indefinite-lived Gross Intangible Assets, Additions/Adjustments | 23,100 | |
Indefinite-lived Gross Intangible Assets, Ending Balance | 23,100 | 0 |
Indefinite-lived liquor licenses [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Gross Intangible Assets, Beginning Balance | 2,023 | 2,023 |
Indefinite-lived Gross Intangible Assets, Additions/Adjustments | 0 | 0 |
Indefinite-lived Gross Intangible Assets, Ending Balance | $ 2,023 | $ 2,023 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization expense | $ 0 | $ 0 | $ 0 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 381,741,000 | $ 368,878,000 |
Accumulated goodwill impairment losses | $ 0 | $ 0 |
Goodwill - Summary of Activity
Goodwill - Summary of Activity and Balance in Goodwill (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill beginning balance | $ 368,878 |
Additions | 12,863 |
Goodwill ending balance | $ 381,741 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets | $ 12,294 | $ 13,973 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 |
Payables and Accruals [Abstract] | ||||
Self-insurance reserves | $ 25,012 | $ 23,954 | $ 27,136 | |
Accrued occupancy related (CAM, property taxes, etc.) | 23,935 | 24,981 | ||
Gift cards, net of breakage | 10,566 | 10,906 | $ 12,586 | $ 15,888 |
Accrued Sales Use And Excise Tax | 14,296 | 13,820 | ||
Other accrued liabilities | 91,078 | 77,645 | ||
Total | $ 164,887 | $ 151,306 |
Accrued Salaries and Benefits -
Accrued Salaries and Benefits - Summary of Accrued Salaries and Benefits (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Payables and Accruals [Abstract] | ||
Bonuses | $ 33,890 | $ 23,679 |
Payroll | 20,652 | 19,873 |
Vacation | 18,050 | 16,732 |
Severance and other | 2,160 | 1,290 |
Total | $ 74,752 | $ 61,574 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt and Finance Lease Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Long Term Debt And Finance Lease Liabilities [Line Items] | ||
Long-term debt | $ 125,000 | |
Finance lease liabilities | 8,685 | $ 8,902 |
Long-term debt and finance lease liabilities | 133,685 | 258,902 |
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Agreement [Member] | ||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||
Long-term debt | $ 125,000 | $ 250,000 |
Debt instrument maturity | Mar. 25, 2027 | |
Debt instrument, Interest Rate | Variable |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt and Finance Lease Liabilities (Parenthetical) (Detail) $ in Millions | Dec. 31, 2023 USD ($) |
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Agreement [Member] | |
Long Term Debt And Finance Lease Liabilities [Line Items] | |
Debt instrument face amount | $ 700 |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Liabilities - Summary of Maturities of long -term debt (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Long Term Debt And Finance Lease Liabilities [Abstract] | |
2024 | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 125,000 |
2028 | 0 |
Thereafter | 0 |
Total | $ 125,000 |
Long-Term Debt and Finance Le_6
Long-Term Debt and Finance Lease Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Mar. 25, 2022 | Mar. 27, 2018 | |
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Borrowings during the period | $ 0 | $ 62,500 | $ 0 | ||
Change in line of credit during period | 62,500 | ||||
Amended And Restated Credit Agreement [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Borrowings under credit facilities | 125,000 | 250,000 | |||
Borrowings during the period | $ 0 | $ 0 | |||
Participation fee | 0.95% | ||||
Issuance fee | 0.125% | ||||
Credit facility termination date | Mar. 25, 2027 | ||||
Principal payments on the Credit Facility | $ 125,000 | ||||
Amended And Restated Credit Agreement [Member] | Minimum [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Total net leverage ratio | 100% | ||||
Interest coverage ratio | 1% | ||||
Amended And Restated Credit Agreement [Member] | Maximum [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Total net leverage ratio | 375% | ||||
Interest coverage ratio | 3% | ||||
Secured Debt [Member] | Current Credit Facility Agreement [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Interest rate spread on base rate | 1% | ||||
Secured Debt [Member] | Amended And Restated Credit Agreement [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Interest rate spread on base rate | 0.10% | ||||
Senior Lien [Member] | Secured Debt [Member] | Current Credit Facility Agreement [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Interest rate spread on base rate | 0.10% | ||||
Senior Lien [Member] | Secured Debt [Member] | Current Credit Facility Agreement [Member] | Secured Overnight Financing Rate [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Interest rate spread on base rate | 0.95% | ||||
Senior Lien [Member] | Secured Debt [Member] | Amended And Restated Credit Agreement [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Debt instrument face amount | $ 70,000 | ||||
Letters of credit issued | $ 21,500 | ||||
Interest rate spread on base rate | 0.05% | ||||
Line of Credit Facility Commitment Fee Percentage Subject to Upward or Downward Adjustments | 0.01% | ||||
Senior Lien [Member] | Secured Debt [Member] | Amended And Restated Credit Agreement [Member] | Prime Plus [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Interest rate spread on base rate | 0% | ||||
Senior Lien [Member] | Secured Debt [Member] | Amended And Restated Credit Agreement [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Line of credit interest rate terms | at the Company's option, either at the Term SOFR (with a floor of 0.00%) plus a 0.10% SOFR adjustment and 1.00% per annum or base rate (with a floor of 0.00%) plus 0.00% per annum | ||||
Senior Lien [Member] | Secured Debt [Member] | Amended And Restated Credit Agreement [Member] | Minimum [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Credit facility unused commitment fee percentage | 0.10% | ||||
Senior Lien [Member] | Secured Debt [Member] | Amended And Restated Credit Agreement [Member] | Maximum [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Credit facility unused commitment fee percentage | 0.225% | ||||
Senior Lien [Member] | Secured Debt [Member] | Amended And Restated Credit Agreement [Member] | Swingline Loan Subfacility [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Debt instrument face amount | $ 50,000 | ||||
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Facility [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Debt instrument face amount | $ 700,000 | ||||
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 700,000 | ||||
Capitalized debt issuance costs | $ 3,400 | ||||
Senior Lien [Member] | Secured Debt [Member] | Former Credit Facility [Member] | |||||
Long Term Debt And Finance Lease Liabilities [Line Items] | |||||
Capitalized debt issuance costs | $ 500 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Summary of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 |
Other Liabilities Disclosure [Abstract] | |||
Long-term portion | $ 22,826 | $ 23,658 | $ 23,393 |
Other | 13,444 | 12,682 | |
Total | $ 36,270 | $ 36,340 |
Self-Insurance Programs - Addit
Self-Insurance Programs - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 |
Insurance [Line Items] | ||||
Accounts receivables | $ 30,313 | $ 16,108 | ||
General liability, worker’s compensation and team member health benefit liabilities | 47,838 | 47,612 | $ 50,529 | $ 48,518 |
Insurance Receivable [Member] | ||||
Insurance [Line Items] | ||||
Accounts receivables | 1,300 | 1,200 | ||
General liability, worker’s compensation and team member health benefit liabilities | $ 47,800 | $ 47,600 |
Self-Insurance Programs - (Deta
Self-Insurance Programs - (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Insurance [Abstract] | |||
Self insurance reserve beginning balance | $ 47,612 | $ 50,529 | $ 48,518 |
Expenses, net of actuarial adjustments | 85,148 | 76,720 | 85,892 |
Claim Payments | (84,922) | (79,637) | (83,881) |
Self insurance reserve ending balance | 47,838 | 47,612 | 50,529 |
Less: Current portion | (25,012) | (23,954) | (27,136) |
Long-term portion | $ 22,826 | $ 23,658 | $ 23,393 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Matching contribution by employer | 50% |
Percentage of eligible compensation for which employer makes matching contribution | 6% |
Defined Contribution Plan - Tot
Defined Contribution Plan - Total Expense Recorded for Matching under Defined Contribution Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Retirement Benefits [Abstract] | |||
Total expenses for matching under defined contribution plans | $ 8,496 | $ 7,820 | $ 7,517 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Tax Contingency [Line Items] | |||
Corporate federal income tax rate | 21% | 21% | 21% |
Effective income tax rate | 24.70% | 25.20% | 24.30% |
Tax benefit resulting from shares-based awards | $ 5,000 | $ 1,700 | $ 200 |
Valuation allowance | 3,343 | 917 | |
Unrecognized tax benefits (tax effected) that would impact the effective tax rate if recognized | 500 | $ 1,100 | |
Anticipated decrease in total unrecognized tax benefits during next twelve months | $ 200 | ||
Federal [Member] | Earliest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open year for general statute of limitations | 2017 | ||
Federal [Member] | Latest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open year for general statute of limitations | 2022 | ||
State [Member] | Earliest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open year for general statute of limitations | 2018 | ||
State [Member] | Latest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open year for general statute of limitations | 2022 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal—current | $ 67,898 | $ 66,398 | $ 60,329 |
U.S. Federal—deferred | (5,927) | 1,028 | (1,663) |
U.S. Federal—total | 61,971 | 67,426 | 58,666 |
State—current | 21,902 | 19,823 | 19,715 |
State—deferred | 1,011 | 900 | (146) |
State—total | 22,913 | 20,723 | 19,569 |
Total provision | $ 84,884 | $ 88,149 | $ 78,235 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 5.40% | 4.70% | 4.80% |
Enhanced charitable contribution impact | (1.00%) | (0.90%) | (1.50%) |
Excess tax benefits from share based payments | (1.20%) | (0.40%) | (0.10%) |
Non-deductible Executive Compensation | 1.40% | 0.90% | 0.30% |
Benefit of federal tax credit | (0.70%) | (0.50%) | (0.40%) |
Other, net | 0.20% | 0.40% | 0.20% |
Effective income tax rate | 24.70% | 25.20% | 24.30% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Deferred tax assets | ||
Employee benefits | $ 18,329 | $ 16,052 |
Tax credits | 105 | 166 |
Operating leases | 392,168 | 329,154 |
Other lease related | 6,137 | 5,740 |
Other accrued liabilities | 4,320 | 4,004 |
Charitable contribution carryforward | 3,343 | 2,819 |
Inventories and other | 2,905 | 2,605 |
Total gross deferred tax assets | 427,307 | 360,540 |
Less: Valuation Allowance | (3,343) | (917) |
Total deferred tax assets, net of valuation allowance | 423,964 | 359,623 |
Deferred tax liabilities | ||
Depreciation and amortization | (80,765) | (83,091) |
Intangible assets | (64,668) | (52,413) |
Operating leases | (339,973) | (284,377) |
Asset retirement obligations | (939) | (865) |
Total gross deferred tax liabilities | (486,345) | (420,746) |
Net deferred tax liability | $ (62,381) | $ (61,123) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 1,119 | $ 1,770 | $ 1,803 |
Additions based on tax positions related to the current year | 58 | 43 | 16 |
Additions based on tax positions related to prior years | 0 | 0 | 31 |
Reductions for settlements with taxing authorities | 0 | (694) | 0 |
Reduction due to lapse of applicable statute of limitations | (700) | 0 | 0 |
Reductions for tax positions for prior years | 0 | 0 | (80) |
Ending balance | $ 477 | $ 1,119 | $ 1,770 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Related Party Transaction [Line Items] | ||
Related Party Transactions | $ 0 | |
Purchases from supplier | $ 3,400 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Apr. 13, 2010 Defendant | Dec. 31, 2023 USD ($) |
Other Commitments [Line Items] | ||
Operating lease legally binding minimum payments for leases that have not yet commenced | $ 584.1 | |
Total future purchase commitments | $ 28.6 | |
Superior Court of State of California and County of Los Angeles [Member] | ||
Other Commitments [Line Items] | ||
Number of defendants | Defendant | 80 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Mar. 02, 2022 | |
Class of Stock [Line Items] | ||||
Common stock issued | 101,211,984 | 105,072,756 | ||
Common stock shares outstanding | 101,211,984 | 105,072,756 | ||
Common stock shares repurchased and retired | 5,864,246 | 6,897,082 | ||
Common stock repurchased, value | $ 205,262 | $ 199,980 | $ 188,343 | |
Preferred stock shares authorized | 10,000,000 | 10,000,000 | ||
March 2, 2022 Share Repurchase Program [Member] | ||||
Class of Stock [Line Items] | ||||
Shares authorized to be repurchased | $ 600,000 | |||
Shares remained available for repurchase | 208,381 | |||
March 3, 2021 Share Repurchase Program [Member] | ||||
Class of Stock [Line Items] | ||||
Shares authorized to be repurchased | $ 300,000 | $ 300,000 | ||
Shares remained available for repurchase | $ 99,800 | |||
Awards Granted Under the 2022 Incentive Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock reserved for issuance | 5,874,286 |
Capital Stock - Schedule of Opt
Capital Stock - Schedule of Options Exercised in Exchange for Issuance of Shares of Common Stock (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Equity [Abstract] | |||
Options exercised | 637,387 | 218,509 | 115,123 |
Other share issuances under stock plans | 811,729 | 636,955 | 462,173 |
Capital Stock - Schedule of Sha
Capital Stock - Schedule of Share Repurchase Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Mar. 02, 2022 | |
March 3, 2021 Share Repurchase Program [Member] | ||
Class of Stock [Line Items] | ||
Authorised amount of share | $ 300,000 | $ 300,000 |
Authorization available | $ 99,800 | |
March 2, 2022 Share Repurchase Program [Member] | ||
Class of Stock [Line Items] | ||
Authorised amount of share | 600,000 | |
Cost of Repurchases | 391,619 | |
Authorization available | $ 208,381 | |
Expiration date | Dec. 31, 2024 | |
Effective date | Mar. 02, 2022 |
Capital Stock - Schedule of S_2
Capital Stock - Schedule of Share Repurchase Activity under Share Repurchase Programs (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Equity [Abstract] | |||
Number of common shares acquired | 5,864,246 | 6,897,082 | |
Average price per common share acquired | $ 35 | $ 28.99 | |
Total cost of common shares acquired | $ 205,262 | $ 199,980 | $ 188,343 |
Net Income Per Share - Summary
Net Income Per Share - Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Basic net income per share: | |||
Net Income (Loss) | $ 258,856 | $ 261,164 | $ 244,157 |
Weighted average shares outstanding - basic | 102,479 | 108,232 | 115,377 |
Basic net income per share | $ 2.53 | $ 2.41 | $ 2.12 |
Diluted net income per share: | |||
Net Income (Loss) | $ 258,856 | $ 261,164 | $ 244,157 |
Weighted average shares outstanding - basic | 102,479 | 108,232 | 115,377 |
Dilutive effect of equity-based awards: | |||
Assumed exercise of options to purchase shares | 343 | 337 | 215 |
Weighted average shares and equivalent shares outstanding - diluted | 103,390 | 109,139 | 116,077 |
Diluted net income per share | $ 2.5 | $ 2.39 | $ 2.1 |
Restricted Stock Units [Member] | |||
Dilutive effect of equity-based awards: | |||
Dilutive effect | 524 | 394 | 390 |
Performance Share Awards [Member] | |||
Dilutive effect of equity-based awards: | |||
Dilutive effect | 44 | 176 | 95 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 0.2 | 0.2 | 0.5 |
PSAs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 0.4 | 0.3 | 0.3 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - Forward Contract [Member] $ in Millions | 1 Months Ended | ||
Dec. 31, 2017 USD ($) Hedge | Dec. 31, 2023 Swap | Jan. 01, 2023 Swap | |
Derivative [Line Items] | |||
Derivative, number of cash flow hedges | Hedge | 5 | ||
Number of outstanding swaps | Swap | 0 | 0 | |
Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount of outstanding swaps | $ | $ 250 | ||
Derivative, cash flow swaps length period | 1 year | ||
Cash flow swaps mature annually, starting year | 2018 | ||
Cash flow swaps mature annually, ending year | 2022 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Gains and Losses of Derivative Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Net | Interest Income (Expense), Net | Interest Income (Expense), Net |
Interest expense, net | $ 0 | $ 2,021 | $ 5,778 |
Comprehensive Income - Changes
Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 1,046,462 | $ 959,876 | $ 881,293 |
Other comprehensive income, net of tax | |||
Unrealized gains on cash flow hedging activities, net of income tax of $1,819 and $3,116 in fiscal 2022 and fiscal 2021 | 0 | 5,259 | 9,009 |
Reclassification of net losses on cash flow hedges to net income, net of income tax of ($520) and ($1,485) in fiscal 2022 and fiscal 2021 | 0 | (1,501) | (4,293) |
Total other comprehensive income | 0 | 3,758 | 4,716 |
Ending Balance | 1,148,547 | 1,046,462 | 959,876 |
Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 0 | (3,758) | |
Other comprehensive income, net of tax | |||
Unrealized gains on cash flow hedging activities, net of income tax of $1,819 and $3,116 in fiscal 2022 and fiscal 2021 | 5,259 | ||
Reclassification of net losses on cash flow hedges to net income, net of income tax of ($520) and ($1,485) in fiscal 2022 and fiscal 2021 | (1,501) | ||
Total other comprehensive income | 3,758 | ||
Ending Balance | $ 0 | $ (3,758) |
Comprehensive Income - Change_2
Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2023 | Jan. 02, 2022 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Income tax expenses (Benefit) on cash flow hedging activities | $ 1,819 | $ 3,116 |
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges | (520) | $ 1,485 |
Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Income tax expenses (Benefit) on cash flow hedging activities | 1,819 | |
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges | $ (520) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 125,000 | $ 250,000 |
Total financial liabilities | 125,000 | 250,000 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | 125,000 | 250,000 |
Total financial liabilities | $ 125,000 | $ 250,000 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segments - Summary of Disaggreg
Segments - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Disaggregation Of Revenue [Line Items] | |||
Net Sales, amount | $ 6,837,384 | $ 6,404,223 | $ 6,099,869 |
Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales, percentage | 100% | 100% | 100% |
Perishables [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales, amount | $ 3,915,971 | $ 3,717,642 | $ 3,518,181 |
Perishables [Member] | Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales, percentage | 57.30% | 58% | 57.70% |
Non-Perishables [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales, amount | $ 2,921,413 | $ 2,686,581 | $ 2,581,688 |
Non-Perishables [Member] | Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales, percentage | 42.70% | 42% | 42.30% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock-Based Compensation Awards Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 12.63 | $ 10.58 | $ 7.66 |
Weighted-average exercise price | 32.95 | ||
Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 12.63 | $ 10.58 | $ 7.66 |
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 514,055 | 86,161 | |
Weighted-average grant date fair value | $ 33.21 | $ 27.74 | |
Weighted-average exercise price | $ 0 | $ 0 | |
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | June 7, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 58,057 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | September 7, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 21,598 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | October 10, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 6,506 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | March 14, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 491,729 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | May 1, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 2,931 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | June 7, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 1,271 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | September 5, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 6,408 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | September 11, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 10,204 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | October 30, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 1,512 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 172,059 | 0 | |
Weighted-average grant date fair value | $ 32.95 | $ 0 | |
Weighted-average exercise price | $ 0 | $ 0 | |
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | June 7, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | September 7, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | October 10, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | March 14, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 172,059 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | May 1, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | June 7, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | September 5, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | September 11, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | October 30, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 221,085 | 0 | |
Weighted-average grant date fair value | $ 12.63 | $ 0 | |
Weighted-average exercise price | $ 32.95 | $ 0 | |
Awards Granted Under the 2022 Incentive Plan [Member] | Options [Member] | June 7, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | Options [Member] | September 7, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | Options [Member] | October 10, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | Options [Member] | March 14, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 221,085 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | Options [Member] | May 1, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | Options [Member] | June 7, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | Options [Member] | September 5, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | Options [Member] | September 11, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2022 Incentive Plan [Member] | Options [Member] | October 30, 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 0 | ||
Awards Granted Under the 2013 Incentive Plan [Member] | RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 475,090 | ||
Weighted-average grant date fair value | $ 31.6 | ||
Weighted-average exercise price | $ 0 | ||
Awards Granted Under the 2013 Incentive Plan [Member] | RSUs [Member] | March 15, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 370,177 | ||
Awards Granted Under the 2013 Incentive Plan [Member] | RSUs [Member] | March 21, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 104,913 | ||
Awards Granted Under the 2013 Incentive Plan [Member] | PSAs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 162,106 | ||
Weighted-average grant date fair value | $ 31.52 | ||
Weighted-average exercise price | $ 0 | ||
Awards Granted Under the 2013 Incentive Plan [Member] | PSAs [Member] | March 15, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 147,846 | ||
Awards Granted Under the 2013 Incentive Plan [Member] | PSAs [Member] | March 21, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 14,260 | ||
Awards Granted Under the 2013 Incentive Plan [Member] | Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 231,622 | ||
Weighted-average grant date fair value | $ 10.58 | ||
Weighted-average exercise price | $ 31.52 | ||
Awards Granted Under the 2013 Incentive Plan [Member] | Options [Member] | March 15, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 211,352 | ||
Awards Granted Under the 2013 Incentive Plan [Member] | Options [Member] | March 21, 2022 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 20,270 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value | $ 12.63 | $ 10.58 | $ 7.66 | ||
Aggregate Intrinsic Value, Exercised | $ 12,151 | ||||
Proceeds from exercise of stock options | 11,454 | $ 5,041 | $ 2,170 | ||
Tax benefit resulting from shares-based awards | $ 5,000 | 1,700 | 200 | ||
Employee Termination [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 24 months | ||||
RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total grant date fair value vested | $ 13,300 | $ 9,200 | $ 8,800 | ||
Number of Shares, Vested | 543,030 | ||||
Number of shares, outstanding | 868,196 | 972,583 | |||
Number of shares forfeited | 75,412 | ||||
RSUs [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
RSUs [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value | $ 12.63 | $ 10.58 | $ 7.66 | ||
Grant date weighted average options issued | 400,000 | 1,000,000 | 1,100,000 | ||
Grant date weighted average fair value of options issued but not vested | $ 10.84 | $ 6.66 | $ 5.81 | ||
Aggregate Intrinsic Value, Exercised | $ 12,200 | $ 1,800 | $ 700 | ||
PSAs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total grant date fair value vested | $ 4,500 | $ 4,100 | 800 | ||
Number of Shares, Vested | 268,699 | ||||
Number of shares, outstanding | 436,510 | 460,106 | |||
Total grant date fair value granted | $ 5,700 | $ 5,100 | 4,800 | ||
Total grant date fair value forfeited or not earned | $ 1,100 | $ 800 | $ 1,000 | ||
Total grant date fair value issued | 400,000 | 500,000 | 400,000 | ||
Total grant date fair value issued but not released | $ 12,900 | $ 11,100 | $ 8,900 | ||
Number of shares forfeited | 34,954 | ||||
PSAs [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock awards payout percentage of shares granted | 0% | 0% | 0% | 0% | 0% |
PSAs [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock awards payout percentage of shares granted | 200% | 200% | 200% | 200% | 200% |
PSAs [Member] | 2019 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock awards description | The criteria was based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | ||||
Number of Shares, Vested | 208,172 | ||||
Number of shares, outstanding | 0 | ||||
PSAs [Member] | 2020 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock awards description | The criteria was based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted | ||||
Number of Shares, Vested | 268,699 | ||||
Number of shares, outstanding | 0 | ||||
PSAs [Member] | 2021 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock awards description | The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | ||||
PSAs [Member] | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock awards description | The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | ||||
PSAs [Member] | 2023 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock awards description | The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | ||||
PSAs [Member] | Employee Termination [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 24 months | ||||
Officers, Directors and Team Members [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options expire period from grant date | 7 years | ||||
Independent Directors [Member] | RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Awards Granted Under the 2022 Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance under plan | 6,600,000 | ||||
Stock awards outstanding | 855,911 | ||||
Remaining shares available for issuance | 5,874,286 | ||||
Awards Granted Under the 2022 Incentive Plan [Member] | RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value | $ 33.21 | $ 27.74 | |||
Awards Granted Under the 2022 Incentive Plan [Member] | Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value | 12.63 | 0 | |||
Awards Granted Under the 2022 Incentive Plan [Member] | PSAs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value | $ 32.95 | 0 | |||
Awards Granted Under the 2013 Incentive Plan [Member] | RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value | 31.6 | ||||
Awards Granted Under the 2013 Incentive Plan [Member] | Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value | 10.58 | ||||
Awards Granted Under the 2013 Incentive Plan [Member] | PSAs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value | $ 31.52 |
Share-Based Compensation - Esti
Share-Based Compensation - Estimated Fair Values of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Dividend yield | 0% | 0% | 0% |
Expected volatility | 39.48% | 36.59% | 36.35% |
Risk free interest rate | 3.78% | 2.12% | 0.83% |
Expected term, in years | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Grant Date Weighted Average Fair Value of Options Granted and Options Forfeited (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Grant date weighted average fair value of options granted | $ 12.63 | $ 10.58 | $ 7.66 |
Grant date weighted average fair value of options forfeited | $ 10.98 | $ 8.66 | $ 7.1 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Number of Options, Outstanding, Beginning Balance | 1,318,158 | ||
Number of Options, Granted | 221,085 | ||
Number of Options, Forfeited | (47,481) | ||
Number of Options, Exercised | (637,387) | (218,509) | (115,123) |
Number of Options, Outstanding, Ending balance | 854,375 | 1,318,158 | |
Number of Options, Exercisable | 424,598 | ||
Number of Options, Vested/Expected to vest | 854,375 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 20.93 | ||
Weighted Average Exercise Price, Granted | 32.95 | ||
Weighted Average Exercise Price, Forfeited | 30.87 | ||
Weighted Average Exercise Price, Exercised | 17.97 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | 25.7 | $ 20.93 | |
Weighted Average Exercise Price, Exercisable | 20.82 | ||
Weighted Average Exercise Price, Vested/Expected to vest | $ 25.7 | ||
Weighted Average Remaining Contractual Life (In Years), Outstanding | 4 years 6 months 10 days | ||
Weighted Average Remaining Contractual Life (In Years), Exercisable | 3 years 7 months 9 days | ||
Weighted Average Remaining Contractual Life (In Years), Vested/Expected to vest | 4 years 6 months 10 days | ||
Aggregate Intrinsic Value, Exercised | $ 12,151 | ||
Aggregate Intrinsic Value, Outstanding | 19,938 | ||
Aggregate Intrinsic Value, Exercisable | 11,983 | ||
Aggregate Intrinsic Value, Vested/Expected to vest | $ 19,938 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Weighted Average Grant Date Fair Value of RSUs Awarded (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs awarded | $ 33.21 | $ 31.01 | $ 24.11 |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary of RSUs Activity (Detail) - RSUs [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 972,583 | ||
Number of Shares, Awarded | 514,055 | ||
Number of Shares, Vested | (543,030) | ||
Number of Shares, Forfeited | (75,412) | ||
Number of Shares, Outstanding, Ending Balance | 868,196 | 972,583 | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 26.94 | ||
Weighted Average Grant Date Fair Value, Awarded | 33.21 | $ 31.01 | $ 24.11 |
Weighted Average Grant Date Fair Value, Vested | 24.44 | ||
Weighted Average Grant Date Fair Value, Forfeited | 31.84 | ||
Weighted Average Grant Date Fair Value, Ending balance | $ 31.79 | $ 26.94 |
Share-Based Compensation - Su_6
Share-Based Compensation - Summary of PSAs Activity (Detail) - PSAs [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | shares | 460,106 |
Number of Shares, Awarded | shares | 172,059 |
Number of Shares, Vested | shares | (268,699) |
Number of Shares, Forfeited | shares | (34,954) |
Number of Shares, Earned | shares | 107,998 |
Number of Shares, Not Earned | shares | 0 |
Number of Shares, Outstanding, Ending Balance | shares | 436,510 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 24.12 |
Weighted Average Grant Date Fair Value, Awarded | $ / shares | 32.95 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 16.83 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 32.18 |
Weighted Average Grant Date Fair Value, Earned | $ / shares | 16.91 |
Weighted Average Grant Date Fair Value, Not Earned | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 29.66 |
Share-Based Compensation - Su_7
Share-Based Compensation - Summary of Share-Based Compensation Expense in Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Share-based compensation expense | $ 18,898 | $ 16,603 | $ 15,883 |
Income tax benefit | (3,007) | (2,495) | (2,450) |
Net share-based compensation expense | $ 15,891 | $ 14,108 | $ 13,433 |
Share-Based Compensation - Su_8
Share-Based Compensation - Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation expense at January 1, 2023 | $ 23,123 |
Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding options | $ 2,845 |
Remaining weighted average recognition period | 1 year 4 months 24 days |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding equity-based awards other than options | $ 15,667 |
Remaining weighted average recognition period | 1 year 4 months 24 days |
PSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding equity-based awards other than options | $ 4,611 |
Remaining weighted average recognition period | 1 year 2 months 12 days |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Quarterly Financial Information [Line Items] | |||
Proceeds from revolving credit facilities | $ 0 | $ 62,500 | $ 0 |
Payments on revolving credit facilities | 125,000 | 62,500 | $ 0 |
Amended and Restated Credit Agreement [Member] | |||
Quarterly Financial Information [Line Items] | |||
Proceeds from revolving credit facilities | $ 0 | $ 0 |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) | 12 Months Ended |
Dec. 31, 2023 Store | |
Subsequent Event [Line Items] | |
Number of store closures | 11 |
Store Closures (Additional Info
Store Closures (Additional Information) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | Dec. 31, 2023 USD ($) Store | Jan. 01, 2023 USD ($) | Jan. 02, 2022 USD ($) | |
Store Closures [Line Items] | ||||
Number of store closures | Store | 11 | |||
Store Performance Capacity Rate | 30% | |||
Assets Impairment expense | $ 30.5 | $ 8.1 | $ 4.8 | |
Other Depreciation and Amortization | 5.9 | |||
Underperforming Stores [Member] | ||||
Store Closures [Line Items] | ||||
Assets Impairment expense | $ 27.8 |
Business Combination (Additiona
Business Combination (Additional Information) (Details) - USD ($) $ in Thousands, shares in Millions | Mar. 20, 2023 | Dec. 31, 2023 | Jan. 01, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 381,741 | $ 368,878 | |
Ronald Cohn, Inc | |||
Business Acquisition [Line Items] | |||
Date of Acquisition | Mar. 20, 2023 | ||
Business Acquisition, Name of Acquired Entity | Ronald Cohn, Inc | ||
Business combination, Common shares, Value | $ 18,100 | ||
Cash consideration | 13,000 | ||
Allocation to Net Tangible Assets | (4,900) | ||
Reacquired right of intangible asset | 23,100 | ||
Goodwill | $ 12,900 | ||
Ronald Cohn, Inc | Common Stock [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, Common shares, Aggregate consideration paid | 0.6 |