(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company | ||||||||||||||
Class | Outstanding at February 13, 2023 | |||||||
Common Stock, $.01 par value per share |
Document | Parts Into Which Incorporated | |||||||
Proxy Statement for the Annual Meeting of Stockholders expected to be held on May 19, 2023 (“Proxy Statement”) | Part III |
Description | Page Number | |||||||||||||
Part I | ||||||||||||||
Part II | ||||||||||||||
Part III | ||||||||||||||
Part IV | ||||||||||||||
Market Name | Geographies Served | Year Entered | ||||||||||||
New York | New York to Atlantic City | 1985 | ||||||||||||
Washington, D.C. | Baltimore to Richmond | 1999 | ||||||||||||
Los Angeles | Santa Barbara to San Diego and Phoenix | 2005 | ||||||||||||
San Francisco | Napa Valley to Monterey Bay | 2005 | ||||||||||||
Las Vegas | Las Vegas | 2005 | ||||||||||||
Miami | Orlando to Miami | 2010 | ||||||||||||
Portland | Portland | 2011 | ||||||||||||
Columbus | Midwest | 2012 | ||||||||||||
Cincinnati | Dayton to Lexington | 2013 | ||||||||||||
Chicago | Chicago | 2013 | ||||||||||||
Vancouver | Vancouver and Western Canada | 2013 | ||||||||||||
Edmonton | Edmonton and Calgary | 2013 | ||||||||||||
Toronto | Toronto | 2013 | ||||||||||||
Seattle | Seattle | 2013 | ||||||||||||
Sacramento | Sacramento | 2015 | ||||||||||||
Philadelphia | Philadelphia | 2018 | ||||||||||||
Texas | Texas | 2018 | ||||||||||||
New England | New England | 2020 | ||||||||||||
Denver | Denver | 2021 | ||||||||||||
Middle East | Dubai, Abu Dhabi, Qatar, and Oman | 2022 |
Name & Position | Age | Business Experience | ||||||||||||
Christopher Pappas President, Chief Executive Officer and Chairman of the Board of Directors | 63 | Christopher Pappas is our founder and has served as our Chief Executive Officer since 1985 and has been our chairman since March 1, 2011. He has been our President since April 11, 2009 and before that was our President from our formation to January 1, 2007. Prior to founding our company, Mr. Pappas played basketball professionally in Europe for several years following his graduation from Adelphi University in 1981 with a Bachelor of Arts degree in Business Administration. Mr. Pappas currently oversees all of our business activities, with a focus on product procurement, sales, marketing and strategy development. Mr. Pappas's qualifications to serve on our board of directors include his extensive knowledge of our company and the specialty food products distribution business and his years of leadership at the Company. | ||||||||||||
John Pappas Vice Chairman and Director | 59 | John Pappas is a founder of our company and currently serves as our Vice Chairman, a position he has held since March 1, 2011. From our founding in 1985 to March 1, 2011, he served as our Chief Operating Officer. He has 25 years of experience in logistics, facility management and global procurement and oversees our network of distribution centers nationwide. Mr. Pappas is also active in the development of our corporate strategy. Mr. Pappas's qualifications to serve on our board of directors include his extensive knowledge of our company and the specialty food products distribution industry and his years of leadership at the Company. | ||||||||||||
James Leddy Chief Financial Officer | 59 | James“Jim” Leddy is our Chief Financial Officer and assistant secretary, positions he has held since his appointment as of November 11, 2017. Prior to his appointment, Mr. Leddy served as our Executive Vice President of Finance since joining the Company in September 2017. Mr. Leddy previously served as interim Chief Financial Officer at JetBlue Airways from November 2016 to February 2017 and served as Senior Vice President and Treasurer from 2012 to November 2016. Prior to joining JetBlue, Mr. Leddy served as Senior Vice President, Treasury and Cash Management at NBCUniversal from 2008 until 2012, and as a Senior Technical Advisor at General Electric from 2003 until 2008. Previously, Mr. Leddy held corporate risk and treasury management positions at First Union National Bank and Dai-ichi Kangyo Bank. Mr. Leddy holds an M.B.A. in Finance and Management of Technology from the University of Connecticut and a B.A. in Economics from Fordham University. |
Alexandros Aldous General Counsel, Corporate Secretary & Chief Government Relations Officer | 42 | Alexandros Aldous is our General Counsel, Corporate Secretary, Chief Government Relations Officer & Chief Administrative Officer, positions he has held since joining us in March 2011, our IPO on July 27, 2011, March 8, 2017, and September 16, 2021, respectively. Mr. Aldous is also an adjunct Professor of Law at the Washington College of Law, American University. Mr. Aldous's prior work experience includes working as an attorney with Barclays Capital, the investment banking division of Barclays Bank PLC, in London, where he focused primarily on mergers and acquisitions and capital markets, and prior to that, working as an attorney with Shearman & Sterling LLP, in New York, where he focused primarily on mergers and acquisitions. Mr. Aldous is a member of both the Government Relations Leadership Committee and General Counsel Committee of the International Foodservice Distributors Association; a member of the Board of Directors of World Trade Center Miami, including chairperson of its Government Relations Committee; a member of the Board of Trustees of the American College of Greece, including a member of both its Audit Committee and Pierce College Committee; co-chairperson of the Global Alumni Advisory Board of the American College of Greece; and a member of the Board of Advisors of American University's School of International Service. Mr. Aldous earned a B.A. in Classics and Government from Colby College, a Juris Doctor and M.A. from American University and an LL.M. from the London School of Economics and Political Science. Mr. Aldous is licensed to practice law in the State of New York, District of Columbia, and England and Wales. | ||||||||||||
Timothy McCauley Chief Accounting Officer | 58 | Timothy McCauley has served as our Chief Accounting Officer, since his appointment on February 16, 2018 and previously served as our Controller since joining the Company in May 2015. Mr. McCauley has over 30 years of experience in accounting and finance roles across a variety of industries. Mr. McCauley’s prior work experience includes serving as Vice President – Finance at MacDermid Inc., Corporate Controller at Northern Tier Energy LP, Director of Financial Reporting and Investor Relations at Presstek, Inc. and Finance Director at Eastman Kodak Company. Prior to joining Eastman Kodak Company, Mr. McCauley worked with PricewaterhouseCoopers for eleven years in their assurance and business advisory practice. Mr. McCauley holds a Bachelor of Science degree in Business - Accounting from the University of Connecticut and is a registered certified public accountant in the state of Connecticut. | ||||||||||||
State / Country | Number of Facilities | Total Square Footage | ||||||||||||
California | 10 | 701,400 | ||||||||||||
Maryland | 4 | 324,500 | ||||||||||||
United Arab Emirates | 2 | 299,300 | ||||||||||||
Massachusetts | 6 | 287,300 | ||||||||||||
Florida(2) | 6 | 273,700 | ||||||||||||
New York | 2 | 246,100 | ||||||||||||
Texas | 4 | 234,700 | ||||||||||||
Oregon | 3 | 211,300 | ||||||||||||
New Jersey | 2 | 206,900 | ||||||||||||
Illinois | 3 | 144,200 | ||||||||||||
Ohio | 2 | 120,400 | ||||||||||||
Nevada | 3 | 117,600 | ||||||||||||
Canada | 4 | 94,300 | ||||||||||||
Qatar | 1 | 43,200 | ||||||||||||
Connecticut(1) | 1 | 29,200 | ||||||||||||
Arizona | 1 | 14,500 | ||||||||||||
Oman | 2 | 11,800 | ||||||||||||
Washington | 1 | 10,500 | ||||||||||||
Colorado | 1 | 3,600 | ||||||||||||
Total | 58 | 3,374,500 |
December 29, 2017 | December 28, 2018 | December 27, 2019 | December 25, 2020 | December 24, 2021 | December 30, 2022 | |||||||||||||||||||||||||||||||||
The Chefs’ Warehouse, Inc. | $ | 100.00 | $ | 152.83 | $ | 185.22 | $ | 116.54 | $ | 158.88 | $ | 162.34 | ||||||||||||||||||||||||||
NASDAQ Composite Index | $ | 100.00 | $ | 95.38 | $ | 130.47 | $ | 185.48 | $ | 226.75 | $ | 151.61 | ||||||||||||||||||||||||||
S&P Smallcap Food Distributor Index | $ | 100.00 | $ | 63.50 | $ | 59.46 | $ | 63.45 | $ | 122.95 | $ | 112.92 |
Total Number of Shares Repurchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||||||
September 24, 2022 to October 21, 2022 | — | $ | — | — | — | |||||||||||||||||||||
October 22, 2022 to November 18, 2022 | 2,371 | 37.21 | — | — | ||||||||||||||||||||||
November 19, 2022 to December 30, 2022 | — | — | — | — | ||||||||||||||||||||||
Total | 2,371 | $ | 37.21 | — | — |
Fiscal Years Ended | |||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Net sales | $ | 2,613,399 | $ | 1,745,757 | $ | 1,111,631 | |||||||||||
Cost of sales | 1,994,763 | 1,355,272 | 863,480 | ||||||||||||||
Gross profit | 618,636 | 390,485 | 248,151 | ||||||||||||||
Selling, general and administrative expenses | 518,219 | 379,252 | 336,394 | ||||||||||||||
Other operating expenses | 14,679 | 422 | 14,417 | ||||||||||||||
Operating income (loss) | 85,738 | 10,811 | (102,660) | ||||||||||||||
Interest and other expense, net | 43,849 | 17,587 | 20,946 | ||||||||||||||
Income (loss) before income taxes | 41,889 | (6,776) | (123,606) | ||||||||||||||
Provision for income tax expense (benefit) | 14,139 | (1,853) | (40,703) | ||||||||||||||
Net income (loss) | $ | 27,750 | $ | (4,923) | $ | (82,903) |
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
Net sales | $ | 2,613,399 | $ | 1,745,757 | $ | 867,642 | 49.7 | % |
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
Gross profit | $ | 618,636 | $ | 390,485 | $ | 228,151 | 58.4 | % | |||||||||||||||
Gross profit margin | 23.7 | % | 22.4 | % | |||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
Selling, general and administrative expenses | 518,219 | 379,252 | 138,967 | 36.6 | % | ||||||||||||||||||
Percentage of net sales | 19.8 | % | 21.7 | % | |||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
Other operating expenses | 14,679 | 422 | 14,257 | 3,378.4 | % | ||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
Interest expense | 43,849 | 17,587 | $ | 26,262 | 149.3 | % | |||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
Provision for income tax expense (benefit) | 14,139 | (1,853) | $ | 15,992 | (863.0) | % | |||||||||||||||||
Effective tax rate | 33.8 | % | 27.3 | % | |||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Net sales | $ | 1,745,757 | $ | 1,111,631 | $ | 634,126 | 57.0 | % |
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Gross profit | 390,485 | 248,151 | $ | 142,334 | 57.4 | % | |||||||||||||||||
Gross profit margin | 22.4 | % | 22.3 | % | |||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Selling, general and administrative expenses | 379,252 | 336,394 | 42,858 | 12.7 | % | ||||||||||||||||||
Percentage of net sales | 21.7 | % | 30.3 | % | |||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Other operating expenses | 422 | 14,417 | (13,995) | (97.1) | % | ||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Interest expense | 17,587 | 20,946 | $ | (3,359) | (16.0) | % | |||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Provision for income tax benefit | (1,853) | (40,703) | $ | 38,850 | (95.4) | % | |||||||||||||||||
Effective tax rate | 27.3 | % | 32.9 | % | |||||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Senior secured term loan | $ | 299,250 | $ | 168,675 | $ | 201,553 | |||||||||||
Total convertible debt | $ | 333,184 | $ | 204,000 | $ | 154,000 | |||||||||||
Borrowings outstanding on asset-based loan facility and revolving credit facilities | $ | 42,217 | $ | 20,000 | $ | 40,000 | |||||||||||
Finance leases and other financing obligations | $ | 11,331 | $ | 11,602 | $ | 15,798 |
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Cash and cash equivalents | $ | 158,800 | $ | 115,155 | $ | 193,281 | |||||||||||
Working capital,(1) excluding cash and cash equivalents | $ | 278,315 | $ | 157,787 | $ | 94,279 | |||||||||||
Availability under asset-based loan facility | $ | 135,827 | $ | 109,459 | $ | 50,282 |
Fiscal Year Ended | |||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Net income (loss) | $ | 27,750 | $ | (4,923) | $ | (82,903) | |||||||||||
Non-cash charges | $ | 93,325 | $ | 47,372 | $ | 62,509 | |||||||||||
Changes in working capital | $ | (97,941) | $ | (62,348) | $ | 63,275 | |||||||||||
Cash provided by (used in) operating activities | $ | 23,134 | $ | (19,899) | $ | 42,881 | |||||||||||
Cash used in investing activities | $ | (232,023) | $ | (48,991) | $ | (67,968) | |||||||||||
Cash provided by (used in) financing activities | $ | 253,215 | $ | (9,222) | $ | 78,056 |
Index to the Consolidated Financial Statements | Page | ||||
December 30, 2022 | December 24, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance of $ | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred taxes, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Short-term operating lease liabilities | |||||||||||
Accrued compensation | |||||||||||
Current portion of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of current portion | |||||||||||
Operating lease liabilities | |||||||||||
Deferred taxes, net | |||||||||||
Other liabilities and deferred credits | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred Stock - $ | |||||||||||
Common Stock, - $ | |||||||||||
Additional paid in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Fiscal Years Ended | |||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Net sales | $ | $ | $ | ||||||||||||||
Cost of sales | |||||||||||||||||
Gross profit | |||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||
Other operating expenses, net | |||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||
Interest expense | |||||||||||||||||
Income (loss) before income taxes | ( | ( | |||||||||||||||
Provision for income tax expense (benefit) | ( | ( | |||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | ||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | ( | ||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | $ | ( | $ | ( | ||||||||||||
Diluted | $ | $ | ( | $ | ( | ||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted |
Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance December 27, 2019 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock compensation | — | — | |||||||||||||||||||||||||||||||||
Public offering of common stock | — | — | |||||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Shares surrendered to pay withholding taxes | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance December 25, 2020 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock compensation | — | — | |||||||||||||||||||||||||||||||||
Shares issued for acquisition | — | — | — | — | |||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||
Shares surrendered to pay withholding taxes | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance December 24, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Stock compensation | — | — | |||||||||||||||||||||||||||||||||
Conversion of debt to common stock | — | — | |||||||||||||||||||||||||||||||||
Warrants issued for acquisition | — | — | — | — | |||||||||||||||||||||||||||||||
Option exercises | — | — | — | ||||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Shares surrendered to pay withholding taxes | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance December 30, 2022 | $ | $ | $ | ( | $ | $ |
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | ||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Amortization of intangible assets | |||||||||||||||||
Provision for allowance for doubtful accounts | ( | ||||||||||||||||
Non-cash operating lease expense | |||||||||||||||||
Provision (benefit) for deferred income taxes | ( | ( | |||||||||||||||
Amortization of deferred financing fees | |||||||||||||||||
Loss on debt extinguishment | |||||||||||||||||
Stock compensation | |||||||||||||||||
Change in fair value of contingent earn-out liabilities | ( | ( | |||||||||||||||
Intangible asset impairment | |||||||||||||||||
Loss on asset disposal | |||||||||||||||||
Changes in assets and liabilities, net of acquisitions: | |||||||||||||||||
Accounts receivable | ( | ( | |||||||||||||||
Inventories | ( | ( | |||||||||||||||
Prepaid expenses and other current assets | ( | ( | ( | ||||||||||||||
Accounts payable, accrued liabilities and accrued compensation | ( | ||||||||||||||||
Other assets and liabilities | ( | ( | |||||||||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Capital expenditures | ( | ( | ( | ||||||||||||||
Cash paid for acquisitions | ( | ( | ( | ||||||||||||||
Net cash used in investing activities | ( | ( | ( | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Payment of debt, finance lease and other financing obligations | ( | ( | ( | ||||||||||||||
Proceeds from the issuance of common stock, net of issuance costs | |||||||||||||||||
Proceeds from debt issuance | |||||||||||||||||
Payment of deferred financing fees | ( | ( | ( | ||||||||||||||
Proceeds from exercise of stock options | |||||||||||||||||
Surrender of shares to pay withholding taxes | ( | ( | ( | ||||||||||||||
Cash paid for contingent earn-out liabilities | ( | ( | ( | ||||||||||||||
Borrowings under asset based loan facility and revolving credit facilities | |||||||||||||||||
Payments under asset based loan facility | ( | ( | ( | ||||||||||||||
Net cash provided by (used in ) financing activities | ( | ||||||||||||||||
Effect of foreign currency on cash and cash equivalents | ( | ( | |||||||||||||||
Net change in cash and cash equivalents | ( | ||||||||||||||||
Cash and cash equivalents at beginning of year | |||||||||||||||||
Cash and cash equivalents at end of year | $ | $ | $ |
Fiscal Year Ended | |||||||||||||||||||||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||||||||||||||||||||
Center-of-the-Plate | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||
Dry Goods | % | % | % | ||||||||||||||||||||||||||||||||
Pastry | % | % | % | ||||||||||||||||||||||||||||||||
Cheeses and Charcuterie | % | % | % | ||||||||||||||||||||||||||||||||
Produce | % | % | % | ||||||||||||||||||||||||||||||||
Dairy and Eggs | % | % | % | ||||||||||||||||||||||||||||||||
Oils and Vinegars | % | % | % | ||||||||||||||||||||||||||||||||
Kitchen Supplies | % | % | % | ||||||||||||||||||||||||||||||||
Total | $ | % | $ | % | $ | % |
Fiscal Year Ended | |||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | $ | ( | $ | ( | ||||||||||||
Diluted | $ | $ | ( | $ | ( | ||||||||||||
Weighted average common shares: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted |
Fiscal Year Ended | |||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | ||||||||||||
Add effect of dilutive securities: | |||||||||||||||||
Interest on convertible notes, net of tax | |||||||||||||||||
Adjusted net income (loss) | $ | $ | ( | $ | ( | ||||||||||||
Denominator: | |||||||||||||||||
Weighted average basic common shares outstanding | |||||||||||||||||
Dilutive effect of unvested common shares | |||||||||||||||||
Dilutive effect of stock options and warrants | |||||||||||||||||
Dilutive effect of convertible notes | |||||||||||||||||
Weighted average diluted common shares outstanding |
Fiscal Year Ended | |||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Restricted share awards | |||||||||||||||||
Stock options and warrants | |||||||||||||||||
Convertible notes |
Balance December 25, 2020 | $ | |||||||
Acquisition value | ||||||||
Cash payments | ( | |||||||
Changes in fair value | ( | |||||||
Balance December 24, 2021 | ||||||||
Acquisition value | ||||||||
Cash payments | ( | |||||||
Changes in fair value | ||||||||
Balance December 30, 2022 | $ |
December 30, 2022 | December 24, 2021 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
2028 Convertible Senior Notes | $ | $ | $ | $ | |||||||||||||||||||
2024 Convertible Senior Notes | $ | $ | $ | $ | |||||||||||||||||||
Convertible Unsecured Note | $ | $ | $ | $ |
Fiscal Year Ended | |||||
December 30, 2022 | |||||
Net sales | $ | ||||
Loss before income taxes | $ |
Fiscal Year Ended | |||||||||||
December 30, 2022 | December 24, 2021 | ||||||||||
Net sales | $ | $ | |||||||||
Income before income taxes | $ | $ |
Chef Middle East | Capital Seaboard | Other Acquisitions | |||||||||||||||
Current assets | $ | $ | $ | ||||||||||||||
Customer relationships | |||||||||||||||||
Trademarks | |||||||||||||||||
Non-compete agreements | |||||||||||||||||
Goodwill | |||||||||||||||||
Fixed assets | |||||||||||||||||
Other assets | |||||||||||||||||
Deferred tax liability | ( | ( | |||||||||||||||
Right-of-use assets | |||||||||||||||||
Lease liabilities | ( | ( | ( | ||||||||||||||
Current liabilities | ( | ( | ( | ||||||||||||||
Earn-out liability | ( | ( | |||||||||||||||
Total consideration | $ | $ | $ |
Useful Lives | December 30, 2022 | December 24, 2021 | ||||||||||||||||||
Land | Indefinite | $ | $ | |||||||||||||||||
Buildings | ||||||||||||||||||||
Machinery and equipment | ||||||||||||||||||||
Computers, data processing and other equipment | ||||||||||||||||||||
Software | ||||||||||||||||||||
Leasehold improvements | ||||||||||||||||||||
Furniture and fixtures | ||||||||||||||||||||
Vehicles | ||||||||||||||||||||
Construction-in-process | ||||||||||||||||||||
Less: accumulated depreciation and amortization | ( | ( | ||||||||||||||||||
Equipment, leasehold improvements and software, net | $ | $ |
Fiscal Year Ended | |||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Depreciation expense | $ | $ | $ | ||||||||||||||
Software amortization | $ | $ | $ |
Carrying amount as of December 25, 2020 | $ | ||||
Acquisitions | |||||
Foreign currency translation | |||||
Carrying amount as of December 24, 2021 | |||||
Goodwill adjustments | ( | ||||
Acquisitions | |||||
Foreign currency translation | ( | ||||
Carrying amount as of December 30, 2022 | $ |
Weighted Average Remaining Amortization Period | Gross Carrying Amount | Accumulated Amortization | Net Amount | |||||||||||||||||||||||
December 30, 2022 | ||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | ||||||||||||||||||||||
Non-compete agreements | ( | |||||||||||||||||||||||||
Trademarks | ( | |||||||||||||||||||||||||
Total | $ | $ | ( | $ | ||||||||||||||||||||||
December 24, 2021 | ||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | ||||||||||||||||||||||
Non-compete agreements | ( | |||||||||||||||||||||||||
Trademarks | ( | |||||||||||||||||||||||||
Total | $ | $ | ( | $ | ||||||||||||||||||||||
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total | $ |
Weighted Average Effective Interest Rate at December 30, 2022 | Maturity | December 30, 2022 | December 24, 2021 | ||||||||||||||||||||
Senior secured term loan | % | August 2029 | $ | $ | |||||||||||||||||||
2028 Convertible senior notes | % | December 2028 | |||||||||||||||||||||
2024 Convertible senior notes | % | December 2024 | |||||||||||||||||||||
Asset-based loan facility | % | March 2027 | |||||||||||||||||||||
Finance leases | % | Various | |||||||||||||||||||||
Convertible unsecured note | % | June 2023 | |||||||||||||||||||||
Other revolving credit facilities | % | April 2023 | |||||||||||||||||||||
Unamortized deferred costs and premium | ( | ( | |||||||||||||||||||||
Total debt obligations | |||||||||||||||||||||||
Less: current installments | ( | ( | |||||||||||||||||||||
Total long-term debt | $ | $ |
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total | $ |
December 30, 2022 | December 24, 2021 | |||||||||||||||||||||||||||||||||||||
Principal Amount | Unamortized Deferred Costs and Premium | Net Amount | Principal Amount | Unamortized Deferred Costs and Premium | Net Amount | |||||||||||||||||||||||||||||||||
2028 Convertible Senior Notes | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
2024 Convertible Senior Notes | ( | ( | ||||||||||||||||||||||||||||||||||||
Convertible Unsecured Note | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ( | $ |
Fiscal Year Ended | |||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Coupon interest | $ | $ | $ | ||||||||||||||
Amortization of deferred costs and premium | |||||||||||||||||
Loss on extinguishment of debt | |||||||||||||||||
Total interest | $ | $ | $ |
Time-based | Performance-based | Market-based | ||||||||||||||||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||||||||||||
Unvested at December 24, 2021 | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||||||||||||||
Vested | ( | |||||||||||||||||||||||||||||||||||||
Forfeited | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Unvested at December 30, 2022 | $ | $ | $ |
Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | |||||||||||||||||||||||
Outstanding December 24, 2021 | $ | $ | ||||||||||||||||||||||||
Exercised | ( | |||||||||||||||||||||||||
Outstanding December 30, 2022 | $ | $ | ||||||||||||||||||||||||
Exercisable at December 30, 2022 | $ |
Fiscal Year Ended | |||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | |||||||||||||||
Operating lease cost | $ | $ | $ | ||||||||||||||
Finance lease cost: | |||||||||||||||||
Amortization of right-of-use asset | |||||||||||||||||
Interest expense on lease liabilities | |||||||||||||||||
Total finance lease cost | $ | $ | $ | ||||||||||||||
Short-term lease cost | |||||||||||||||||
Variable lease cost | |||||||||||||||||
Sublease income | ( | ( | ( | ||||||||||||||
Total lease cost, net | $ | $ | $ |
Operating Leases | Finance Leases | ||||||||||||||||||||||||||||
Related Party Real Estate | Third Party Real Estate | Vehicles and Equipment | Total | Vehicles and Equipment | |||||||||||||||||||||||||
2023 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
2024 | |||||||||||||||||||||||||||||
2025 | |||||||||||||||||||||||||||||
2026 | |||||||||||||||||||||||||||||
2027 | |||||||||||||||||||||||||||||
Thereafter | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Less imputed interest | ( | ( | |||||||||||||||||||||||||||
Present value of lease obligations | $ | $ |
Balance Sheet Location | December 30, 2022 | December 24, 2021 | ||||||||||||
Short-term finance lease liabilities | $ | $ | ||||||||||||
Long-term finance lease liabilities | $ | $ |
Fiscal Year Ended | ||||||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | ||||||||||||||||||
Domestic | $ | $ | ( | $ | ( | |||||||||||||||
Foreign | ( | ( | ||||||||||||||||||
Total | $ | $ | ( | $ | ( |
Fiscal Year Ended | ||||||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | ||||||||||||||||||
Current income tax expense (benefit): | ||||||||||||||||||||
Federal | $ | $ | ( | $ | ( | |||||||||||||||
Foreign | ||||||||||||||||||||
State | ( | |||||||||||||||||||
Total current income tax expense (benefit) | ( | ( | ||||||||||||||||||
Deferred income tax expense (benefit): | ||||||||||||||||||||
Federal | ( | ( | ||||||||||||||||||
Foreign | ( | ( | ||||||||||||||||||
State | ( | |||||||||||||||||||
Total deferred income tax expense (benefit) | ( | ( | ||||||||||||||||||
Total income tax expense (benefit) | $ | $ | ( | $ | ( |
Fiscal Year Ended | ||||||||||||||||||||
December 30, 2022 | December 24, 2021 | December 25, 2020 | ||||||||||||||||||
Statutory U.S. Federal tax | $ | $ | ( | $ | ( | |||||||||||||||
Differences due to: | ||||||||||||||||||||
State and local taxes, net of federal benefit | ( | ( | ||||||||||||||||||
Change in valuation allowance | ( | ( | ||||||||||||||||||
Foreign rate differential | ( | |||||||||||||||||||
Loss on debt extinguishment | ||||||||||||||||||||
Acquisition costs | ||||||||||||||||||||
Federal NOL rate differential | ( | |||||||||||||||||||
Stock compensation | ( | ( | ( | |||||||||||||||||
Other | ( | ( | ||||||||||||||||||
Income tax expense (benefit) | $ | $ | ( | $ | ( |
December 30, 2022 | December 24, 2021 | |||||||||||||
Deferred tax assets: | ||||||||||||||
Receivables and inventory | $ | $ | ||||||||||||
Self-insurance reserves | ||||||||||||||
Net operating loss carryforwards | ||||||||||||||
Interest expense carryforward | ||||||||||||||
Stock compensation | ||||||||||||||
Intangible assets | ||||||||||||||
Charitable contribution carryforward | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Other | ||||||||||||||
Total deferred tax assets | ||||||||||||||
Deferred tax liabilities: | ||||||||||||||
Property & equipment | ( | ( | ||||||||||||
Goodwill | ( | ( | ||||||||||||
Intangible assets | ( | |||||||||||||
Prepaid expenses and other | ( | ( | ||||||||||||
Operating lease right-of-use assets | ( | ( | ||||||||||||
Total deferred tax liabilities | ( | ( | ||||||||||||
Valuation allowance | ( | ( | ||||||||||||
Total net deferred tax (liability) asset | $ | ( | $ |
December 30, 2022 | December 24, 2021 | December 25, 2020 | ||||||||||||||||||
Cash paid for income taxes, net of cash received | $ | $ | ( | $ | ||||||||||||||||
Cash paid for interest | $ | $ | $ | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
Operating cash flows from operating leases | $ | $ | $ | |||||||||||||||||
Operating cash flows from finance leases | $ | $ | $ | |||||||||||||||||
ROU assets obtained in exchange for lease liabilities: | ||||||||||||||||||||
Operating leases | $ | $ | $ | |||||||||||||||||
Finance leases | $ | $ | $ | |||||||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||||||
Warrants issued for acquisition | $ | $ | $ | |||||||||||||||||
Conversion of debt into common stock | $ | $ | $ | |||||||||||||||||
Contingent earn-out liabilities for acquisitions | $ | $ | $ | |||||||||||||||||
Balance at Beginning of Period | Additions (Recoveries) Charged to Expense | Deductions | Balance at End of Period | |||||||||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||||||||||
December 30, 2022 | $ | $ | $ | ( | $ | |||||||||||||||||||||
December 24, 2021 | ( | ( | ||||||||||||||||||||||||
December 25, 2020 | ( |
Allowance for deferred tax assets | ||||||||||||||||||||||||||
December 30, 2022 | $ | $ | ( | $ | $ | |||||||||||||||||||||
December 24, 2021 | ( | |||||||||||||||||||||||||
December 25, 2020 |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the second column) | ||||||||||||||
Plans approved by stockholders | 112,232 | $ | 20.23 | 1,934,020 | |||||||||||||
Plans not approved by stockholders | — | — | — | ||||||||||||||
Total | 112,232 | $ | 20.23 | 1,934,020 |
Exhibit No. | Description | |||||||
2.1 | ||||||||
2.2 | ||||||||
2.3 | ||||||||
2.4 | ||||||||
2.5 | ||||||||
2.6 | ||||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 |
4.0 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5* | ||||||||
10.6* | ||||||||
10.7* | ||||||||
10.8* |
10.9* | ||||||||
10.10* | ||||||||
10.11 | ||||||||
10.12 | ||||||||
10.13 | ||||||||
10.14 | ||||||||
10.15 | ||||||||
10.16 | ||||||||
10.17 | ||||||||
10.18† | ||||||||
10.19 | ||||||||
10.20† | ||||||||
10.21 | ||||||||
10.22 | ||||||||
10.23† | ||||||||
10.24 | ||||||||
10.25 | ||||||||
10.26† | ||||||||
10.27* | ||||||||
10.28* | ||||||||
10.29 | ||||||||
10.30* | ||||||||
10.31* | ||||||||
10.32* | ||||||||
10.33* | ||||||||
10.34* | ||||||||
10.35* | ||||||||
10.36* | ||||||||
10.37* | ||||||||
10.38* | ||||||||
10.39* | ||||||||
10.40† | ||||||||
14.1 | ||||||||
21† | ||||||||
23.1† | ||||||||
31.1† | ||||||||
31.2† | ||||||||
32.1† | ||||||||
32.2† | ||||||||
101.INS† | XBRL Instance Document – the instance document does not appear on the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH† | XBRL Schema Document | |||||||
101.CAL† | XBRL Calculation Linkbase Document | |||||||
101.DEF† | XBRL Definition Linkbase Document | |||||||
101.LAB† | XBRL Label Linkbase Document | |||||||
101.PRE† | XBRL Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
* | Management Contract or Compensatory Plan or Arrangement | |||||||
† | Filed herewith |
THE CHEFS’ WAREHOUSE, INC. | |||||
February 28, 2023 | /s/ Christopher Pappas | ||||
Christopher Pappas | |||||
Chairman, President and Chief Executive Officer | |||||
Signature | Capacity | Date | |||||||||||||||||||||
/s/ Christopher Pappas | Chairman, President and | February 28, 2023 | |||||||||||||||||||||
Christopher Pappas | Chief Executive Officer (Principal Executive Officer) | ||||||||||||||||||||||
/s/ James Leddy | Chief Financial Officer | February 28, 2023 | |||||||||||||||||||||
James Leddy | (Principal Financial Officer) | ||||||||||||||||||||||
/s/ Timothy McCauley | Chief Accounting Officer | February 28, 2023 | |||||||||||||||||||||
Timothy McCauley | (Principal Accounting Officer) | ||||||||||||||||||||||
/s/ John Pappas | Director and Vice Chairman | February 28, 2023 | |||||||||||||||||||||
John Pappas | |||||||||||||||||||||||
/s/ Alan Guarino | Director | February 28, 2023 | |||||||||||||||||||||
Alan Guarino | |||||||||||||||||||||||
/s/ Dominick C. Cerbone | Director | February 28, 2023 | |||||||||||||||||||||
Dominick C. Cerbone | |||||||||||||||||||||||
/s/ Joseph Cugine | Director | February 28, 2023 | |||||||||||||||||||||
Joseph Cugine | |||||||||||||||||||||||
/s/ Stephen Hanson | Director | February 28, 2023 | |||||||||||||||||||||
Stephen Hanson | |||||||||||||||||||||||
/s/ Katherine Oliver | Director | February 28, 2023 | |||||||||||||||||||||
Katherine Oliver | |||||||||||||||||||||||
/s/ Steven F. Goldstone | Director | February 28, 2023 | |||||||||||||||||||||
Steven F. Goldstone | |||||||||||||||||||||||
/s/ Ivy Brown | Director | February 28, 2023 | |||||||||||||||||||||
Ivy Brown | |||||||||||||||||||||||
/s/ Aylwin Lewis | Director | February 28, 2023 | |||||||||||||||||||||
Aylwin Lewis |
US-DOCS\121341851.8 |
US-DOCS\121341851.8 |
US-DOCS\121341851.8 |
US-DOCS\121341851.8 |
US-DOCS\121341851.8 |
US-DOCS\121341851.8 |
US-DOCS\121341851.8 |
US-DOCS\121341851.8 |
Entity Name | State of Organization | |||||||||||||||||||||||||
Dairyland USA Corporation | New York | |||||||||||||||||||||||||
Dairyland HP LLC (1) | Delaware | |||||||||||||||||||||||||
Bel Canto Foods, LLC (1) | New York | |||||||||||||||||||||||||
Chefs’ Warehouse Transportation, LLC (2) | Delaware | |||||||||||||||||||||||||
Chefs’ Warehouse Parent, LLC | Delaware | |||||||||||||||||||||||||
The Chefs’ Warehouse Mid-Atlantic, LLC (3) | Delaware | |||||||||||||||||||||||||
The Chefs’ Warehouse West Coast, LLC (3) | Delaware | |||||||||||||||||||||||||
The Chefs’ Warehouse of Florida, LLC (3) | Delaware | |||||||||||||||||||||||||
The Chefs’ Warehouse Midwest, LLC (3) | Delaware | |||||||||||||||||||||||||
Michael’s Finer Meats Holdings, LLC (3) | Delaware | |||||||||||||||||||||||||
Michael’s Finer Meats, LLC (4) | Delaware | |||||||||||||||||||||||||
The Chefs’ Warehouse Pastry Division, Inc. (3) | Delaware | |||||||||||||||||||||||||
The Chefs’ Warehouse Pastry Division Canada ULC (5) | British Columbia, Canada | |||||||||||||||||||||||||
QZ Acquisition (USA), Inc. (3) | Delaware | |||||||||||||||||||||||||
Qzina Specialty Foods North America (USA), Inc. (6) | Delaware | |||||||||||||||||||||||||
Qzina Specialty Foods, Inc. (7) | Florida | |||||||||||||||||||||||||
Qzina Specialty Foods, Inc. (7) | Washington | |||||||||||||||||||||||||
Qzina Specialty Foods (Ambassador), Inc. (7) | California | |||||||||||||||||||||||||
CW LV Real Estate LLC (8) | Delaware | |||||||||||||||||||||||||
Allen Brothers 1893, LLC (9) | Delaware | |||||||||||||||||||||||||
Del Monte Capitol Meat Company Holdings, LLC (3) | Delaware | |||||||||||||||||||||||||
Del Monte Capitol Meat Company, LLC (10) | Delaware | |||||||||||||||||||||||||
The Great Steakhouse Steaks, LLC (11) | Delaware | |||||||||||||||||||||||||
Fells Point Holdings, LLC (3) | Delaware | |||||||||||||||||||||||||
Fells Point, LLC (12) | Delaware | |||||||||||||||||||||||||
Cambridge Protein Holdings, LLC (3) | Delaware | |||||||||||||||||||||||||
Cambridge, LLC (13) | Delaware | |||||||||||||||||||||||||
Dairyland Produce Holdings, LLC (3) | Delaware | |||||||||||||||||||||||||
Dairyland Produce, LLC (14) | Delaware | |||||||||||||||||||||||||
Chefs’ Warehouse Middle East Holdings, LLC (3) | Delaware | |||||||||||||||||||||||||
Chefs’ Warehouse Middle East, LLC (15) | Delaware | |||||||||||||||||||||||||
CME Investments Limited (16) | Cayman Islands | |||||||||||||||||||||||||
Chef Middle East LLC (17) | United Arab Emirates | |||||||||||||||||||||||||
Chef Innovations Food Processing LLC (17) | United Arab Emirates | |||||||||||||||||||||||||
Chef Middle East W.L.L (17) | Qatar | |||||||||||||||||||||||||
Chef Middle East LLC (18) | Oman |
Dated: February 28, 2023 | /s/ Christopher Pappas | |||||||
By: | Christopher Pappas | |||||||
Chairman, President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Dated: February 28, 2023 | /s/ James Leddy | |||||||
By: | James Leddy | |||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: February 28, 2023 | By: | /s/ Christopher Pappas | ||||||
Christopher Pappas | ||||||||
Chairman, President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: February 28, 2023 | By: | /s/ James Leddy | ||||||
James Leddy | ||||||||
Chief Financial Officer (Principal Financial Officer) |
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Audit Information |
12 Months Ended |
---|---|
Dec. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Name | BDO USA, LLP |
Auditor Location | Stamford, Connecticut |
Auditor Firm ID | 243 |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 24, 2021 |
---|---|---|
Current assets: | ||
Cash and cash equivalents | $ 158,800 | $ 115,155 |
Accounts receivable, net of allowance of $20,733 in 2022 and $20,260 in 2021 | 260,167 | 172,540 |
Inventories, net | 245,693 | 144,491 |
Prepaid expenses and other current assets | 56,200 | 37,774 |
Total current assets | 720,860 | 469,960 |
Property and equipment, net | 185,728 | 133,622 |
Operating lease right-of-use assets | 156,629 | 130,701 |
Goodwill | 287,120 | 221,775 |
Intangible assets, net | 155,703 | 104,743 |
Deferred taxes, net | 0 | 9,380 |
Other assets | 3,256 | 3,614 |
Total assets | 1,509,296 | 1,073,795 |
Current liabilities: | ||
Accounts payable | 163,397 | 118,284 |
Accrued liabilities | 54,325 | 35,390 |
Short-term operating lease liabilities | 19,428 | 15,882 |
Accrued compensation | 34,167 | 22,321 |
Current portion of long-term debt | 12,428 | 5,141 |
Total current liabilities | 283,745 | 197,018 |
Long-term debt, net of current portion | 653,504 | 394,160 |
Operating lease liabilities | 151,406 | 127,296 |
Deferred taxes, net | 6,098 | 0 |
Other liabilities and deferred credits | 13,034 | 5,110 |
Total liabilities | 1,107,787 | 723,584 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred Stock - $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding at December 30, 2022 and December 24, 2021, respectively | 0 | 0 |
Common Stock, - $0.01 par value, 100,000,000 shares authorized, 38,599,390 and 37,887,675 shares issued and outstanding at December 30, 2022 and December 24, 2021, respectively | 386 | 380 |
Additional paid in capital | 337,947 | 314,242 |
Accumulated other comprehensive loss | (2,185) | (2,022) |
Retained earnings | 65,361 | 37,611 |
Total stockholders’ equity | 401,509 | 350,211 |
Total liabilities and stockholders’ equity | $ 1,509,296 | $ 1,073,795 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 24, 2021 |
---|---|---|
Current assets: | ||
Allowance for accounts receivable | $ (20,733) | $ (20,260) |
Stockholders’ equity: | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, issued (in shares) | 0 | 0 |
Preferred Stock, outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 38,599,390 | 37,887,675 |
Common Stock, outstanding (in shares) | 38,599,390 | 37,887,675 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Income Statement [Abstract] | |||
Net sales | $ 2,613,399 | $ 1,745,757 | $ 1,111,631 |
Cost of sales | 1,994,763 | 1,355,272 | 863,480 |
Gross profit | 618,636 | 390,485 | 248,151 |
Selling, general and administrative expenses | 518,219 | 379,252 | 336,394 |
Other operating expenses, net | 14,679 | 422 | 14,417 |
Operating income (loss) | 85,738 | 10,811 | (102,660) |
Interest expense | 43,849 | 17,587 | 20,946 |
Income (loss) before income taxes | 41,889 | (6,776) | (123,606) |
Provision for income tax expense (benefit) | 14,139 | (1,853) | (40,703) |
Net income (loss) | 27,750 | (4,923) | (82,903) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (163) | 29 | (3) |
Comprehensive income (loss) | $ 27,587 | $ (4,894) | $ (82,906) |
Net income (loss) per share: | |||
Basic (in dollars per share) | $ 0.75 | $ (0.13) | $ (2.46) |
Diluted (in dollars per share) | $ 0.73 | $ (0.13) | $ (2.46) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 37,094,220 | 36,744,304 | 33,716,157 |
Diluted (in shares) | 38,742,328 | 36,744,304 | 33,716,157 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid in Capital |
Accumulated Other Comprehensive Loss |
Retained Earnings |
---|---|---|---|---|---|
Balance, beginning (in shares) at Dec. 27, 2019 | 30,341,941 | ||||
Balance, beginning at Dec. 27, 2019 | $ 335,933 | $ 304 | $ 212,240 | $ (2,048) | $ 125,437 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (82,903) | (82,903) | |||
Stock compensation (in shares) | 500,100 | ||||
Stock compensation | 9,292 | $ 5 | 9,287 | ||
Public offering (in shares) | 6,634,615 | ||||
Conversion of debt to common stock | 85,941 | $ 66 | 85,875 | ||
Cumulative translation adjustment | (3) | (3) | |||
Shares surrendered to pay withholding taxes (in shares) | (201,888) | ||||
Shares surrendered to pay withholding taxes | (3,670) | $ (2) | (3,668) | ||
Balance, ending (in shares) at Dec. 25, 2020 | 37,274,768 | ||||
Balance, ending at Dec. 25, 2020 | 344,590 | $ 373 | 303,734 | (2,051) | 42,534 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (4,923) | (4,923) | |||
Stock compensation (in shares) | 679,330 | ||||
Stock compensation | 11,479 | $ 7 | 11,472 | ||
Warrants issued for acquisition | 1,120 | 1,120 | |||
Cumulative translation adjustment | 29 | 29 | |||
Shares surrendered to pay withholding taxes (in shares) | (66,423) | ||||
Shares surrendered to pay withholding taxes | $ (2,084) | (2,084) | |||
Balance, ending (in shares) at Dec. 24, 2021 | 37,887,675 | 37,887,675 | |||
Balance, ending at Dec. 24, 2021 | $ 350,211 | $ 380 | 314,242 | (2,022) | 37,611 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 27,750 | 27,750 | |||
Stock compensation (in shares) | 466,820 | ||||
Stock compensation | 13,240 | $ 4 | 13,236 | ||
Conversion of debt to common stock (in shares) | 324,066 | ||||
Conversion of debt to common stock | $ 11,375 | $ 3 | 11,372 | ||
Option exercises (in shares) | 3,407 | 3,407 | |||
Option exercises | $ 69 | 69 | |||
Warrants issued for acquisition | 1,701 | 1,701 | |||
Cumulative translation adjustment | (163) | (163) | |||
Shares surrendered to pay withholding taxes (in shares) | (82,578) | ||||
Shares surrendered to pay withholding taxes | $ (2,674) | $ (1) | (2,673) | ||
Balance, ending (in shares) at Dec. 30, 2022 | 38,599,390 | 38,599,390 | |||
Balance, ending at Dec. 30, 2022 | $ 401,509 | $ 386 | $ 337,947 | $ (2,185) | $ 65,361 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Cash flows from operating activities: | |||
Net income (loss) | $ 27,750 | $ (4,923) | $ (82,903) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 24,332 | 21,998 | 19,774 |
Amortization of intangible assets | 13,913 | 12,967 | 13,502 |
Provision for allowance for doubtful accounts | 6,048 | (422) | 21,372 |
Non-cash operating lease expense | 1,730 | 1,402 | 689 |
Provision (benefit) for deferred income taxes | 9,601 | (1,845) | (18,418) |
Amortization of deferred financing fees | 1,290 | 2,299 | 3,426 |
Loss on debt extinguishment | 14,287 | 0 | 0 |
Stock compensation | 13,602 | 11,479 | 9,292 |
Change in fair value of contingent earn-out liabilities | 8,505 | (1,296) | (11,479) |
Intangible asset impairment | 0 | 597 | 24,200 |
Loss on asset disposal | 17 | 193 | 151 |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | (48,229) | (70,777) | 77,590 |
Inventories | (49,931) | (60,799) | 49,050 |
Prepaid expenses and other current assets | (17,603) | (2,183) | (18,240) |
Accounts payable, accrued liabilities and accrued compensation | 19,163 | 71,519 | (46,442) |
Other assets and liabilities | (1,341) | (108) | 1,317 |
Net cash provided by (used in) operating activities | 23,134 | (19,899) | 42,881 |
Cash flows from investing activities: | |||
Capital expenditures | (45,848) | (38,801) | (7,036) |
Cash paid for acquisitions | (186,175) | (10,190) | (60,932) |
Net cash used in investing activities | (232,023) | (48,991) | (67,968) |
Cash flows from financing activities: | |||
Payment of debt, finance lease and other financing obligations | (331,073) | (37,610) | (40,432) |
Proceeds from the issuance of common stock, net of issuance costs | 0 | 0 | 85,941 |
Proceeds from debt issuance | 587,500 | 51,750 | 0 |
Payment of deferred financing fees | (19,039) | (1,450) | (856) |
Proceeds from exercise of stock options | 69 | 0 | 0 |
Surrender of shares to pay withholding taxes | (2,674) | (1,829) | (3,670) |
Cash paid for contingent earn-out liabilities | (3,788) | (83) | (2,927) |
Borrowings under asset based loan facility and revolving credit facilities | 42,220 | 0 | 100,000 |
Payments under asset based loan facility | (20,000) | (20,000) | (60,000) |
Net cash provided by (used in ) financing activities | 253,215 | (9,222) | 78,056 |
Effect of foreign currency on cash and cash equivalents | (681) | (14) | 79 |
Net change in cash and cash equivalents | 43,645 | (78,126) | 53,048 |
Cash and cash equivalents at beginning of year | 115,155 | 193,281 | 140,233 |
Cash and cash equivalents at end of year | $ 158,800 | $ 115,155 | $ 193,281 |
Operations and Basis of Presentation |
12 Months Ended |
---|---|
Dec. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations and Basis of Presentation | Operations and Basis of Presentation Description of Business and Basis of Presentation The financial statements include the consolidated accounts of The Chefs’ Warehouse, Inc. (the “Company”), and its wholly-owned subsidiaries. The Company’s quarterly periods end on the thirteenth Friday of each quarter. Every six to seven years the Company will add a fourteenth week to its fourth quarter to more closely align its year end to the calendar year. The consolidated statement of operations for the fiscal year ended December 30, 2022 contained a 53rd week while all other years presented contained 52 weeks. The Company’s business consists of three operating segments: East, Midwest and West that aggregate into one reportable segment, food product distribution, which is concentrated primarily in the United States. The Company’s customer base consists primarily of menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos and specialty food stores. Consolidation The consolidated financial statements include all the accounts of the Company and its direct and indirect wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Guidance Not Yet Adopted There is no recent accounting guidance not yet adopted that is expected to have a material impact on the Company’s consolidated financial statements when adopted. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with generally accepted accounting principles requires it to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. Estimates are used in determining, among other items, the allowance for doubtful accounts, inventory valuation adjustments, self-insurance reserves for group medical insurance, workers’ compensation insurance and automobile liability insurance, future cash flows associated with impairment testing for intangible assets (including goodwill) and long-lived assets, useful lives for intangible assets, stock-based compensation, contingent earn-out liabilities and tax reserves. Actual results could differ from estimates.
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition Revenues from product sales are recognized at the point at which control of each product is transferred to the customer. The Company’s contracts contain performance obligations which are satisfied when customers have physical possession of each product. The majority of customer orders are fulfilled within a day and customer payment terms are typically 14 to 60 days from delivery. Shipping and handling activities are costs to fulfill the Company’s performance obligations. These costs are expensed as incurred and presented within selling, general and administrative expenses on the consolidated statements of operations. The Company offers certain sales incentives to customers in the form of rebates or discounts. These sales incentives are accounted as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and records a corresponding reduction in revenue. The Company does not expect a significant reversal in the amount of cumulative revenue recognized. Sales tax billed to customers is not included in revenue but rather recorded as a liability owed to the respective taxing authorities at the time the sale is recognized. The following table presents the Company’s net sales disaggregated by principal product category:
The Company determines its product category classification based on how the Company currently markets its products to its customers. The Company’s definition of its principal product categories may differ from the way in which other companies present similar information. Deferred Revenue Certain customer arrangements in the Company’s direct-to-consumer business, prepaid gift plans and gift card purchases, result in deferred revenues when cash payments are received in advance of performance. The Company recognizes revenue on its prepaid gift plans when control of each product is transferred to the customer. Performance obligations under the Company’s prepaid gift plans are satisfied within a period of twelve months or less. Gift cards issued by the Company do not have expiration dates. The Company records a liability for unredeemed gift cards at the time gift cards are sold and the liability is reduced when the card is redeemed, the value of the card is escheated to the appropriate government agency, or through breakage. Gift card breakage is estimated based on the Company’s historical redemption experience and expected trends in redemption patterns. Amounts recognized through breakage represent the portion of the gift card liability that is not subject to unclaimed property laws and for which the likelihood of redemption is remote. The Company recorded deferred revenues, reflected as accrued liabilities on the Company’s consolidated balance sheets, of $2,206 and $2,294 as of December 30, 2022 and December 24, 2021, respectively. Right of Return The Company’s standard terms and conditions provide customers with a right of return if the goods received are not merchantable. Customers are either issued a replacement order at no cost, or are issued a credit for the returned goods. The Company recorded a refund liability of $713 and $389 as of December 30, 2022 and December 24, 2021, respectively. Refund liabilities are reflected as accrued liabilities on the Company’s consolidated balance sheets. The Company recognized a corresponding asset of $442 and $238 as of December 30, 2022 and December 24, 2021, respectively, for its right to recover products from customers on settling its refund liabilities. This asset is reflected as inventories, net on the Company’s consolidated balance sheets. Contract Costs Sales commissions are expensed when incurred because the amortization period is one year or less. These costs are presented within selling, general and administrative expenses on the Company’s consolidated statements of operations. Cost of Sales The Company records cost of sales based upon the net purchase price paid for a product, including applicable freight charges incurred to deliver the product to the Company’s warehouse, and food processing costs. Food processing costs include but are not limited to direct labor and benefits, applicable overhead and depreciation of equipment and facilities used in food processing activities. Food processing costs included in cost of sales were $40,185, $28,374 and $18,682 for fiscal 2022, 2021 and 2020, respectively. Selling, General and Administrative Expenses Selling, general and administrative expenses include facilities costs, product shipping and handling costs, warehouse costs, and other selling, general and administrative costs. Shipping and handling costs included in selling, general and administrative expenses were $143,435, $98,697 and $78,152 for fiscal 2022, 2021 and 2020, respectively. Other Operating Expenses Other operating expenses includes expenses primarily related to changes in the fair value of the Company’s contingent earn-out liabilities, gains and losses on asset disposals, asset impairments, certain third-party deal costs incurred in connection with business acquisitions or financing arrangements and certain other costs. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of less than three months to be cash equivalents. The Company periodically maintains balances at financial institutions which may exceed Federal Deposit Insurance Corporation insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. Accounts Receivable Accounts receivable consist of trade receivables from customers and are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined based upon a number of specific criteria, such as whether a customer has filed for or been placed into bankruptcy, has had accounts referred to outside parties for collections or has had accounts significantly past due. The allowance also covers short paid invoices the Company deems to be uncollectible as well as a portion of trade accounts receivable balances projected to become uncollectible based upon historic patterns and macro-economic factors in existence as of the balance sheet date that may impact the food-away-from-home industry and/or its customers, and specifically, beginning in the first quarter of fiscal 2020, the impact of the Pandemic and the subsequent recovery. Inventories Inventories consist primarily of finished goods, food and related food products held for resale and are valued at the lower of cost or market. Our different entities record inventory using a mixture of first-in, first-out and average cost, which we believe approximates first-in, first-out. The Company adjusts inventory balances for excess and obsolete inventories to approximate their net realizable value. Vendor Rebates and Other Promotional Incentives The Company receives consideration and product purchase credits from certain vendors that the Company accounts for as a reduction of cost of sales. There are several types of cash consideration received from vendors. The purchase incentive is primarily in the form of a specified amount per pound or per case, or an amount for year-over-year growth. For the fiscal years ended December 30, 2022, December 24, 2021 and December 25, 2020, the recorded purchase incentives totaled approximately $30,805, $20,296 and $12,678, respectively. Concentrations of Credit Risks Financial instruments that subject the Company to concentrations of credit risk consist of cash, temporary cash investments and trade receivables. The Company’s policy is to deposit its cash and temporary cash investments with major financial institutions. The Company distributes its food and related products to a customer base that consists primarily of leading menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos and specialty food stores. To reduce credit risk, the Company performs ongoing credit evaluations of its customers’ financial conditions. The Company generally does not require collateral. However, the Company, in certain instances, has obtained personal guarantees from certain customers. There is no significant balance with any individual customer. Property and Equipment Property and equipment are recorded at cost and are depreciated on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. Property and equipment are reviewed for impairment in accordance with ASC 360-10-35-15, “Impairment or Disposal of Long-Lived Assets” which only requires testing whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If any indicators are present, a recoverability test is performed by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If the net undiscounted cash flows do not exceed the carrying amount (i.e., the asset is not recoverable), an additional step is performed that determines the fair value of the asset and the Company records an impairment, if any. The adverse impact to the Company’s customer base and market capitalization at the onset of the Pandemic were considered triggering events during the first quarter of fiscal 2020, and accordingly, the Company performed a long-lived asset recoverability test as of March 27, 2020 the results of which indicated no impairment. The Company has not recorded any impairment of equipment and leasehold improvements in fiscal 2022, 2021 or 2020. Leases The Company leases various distribution centers, office facilities, vehicles and equipment. The Company determines if an arrangement contains a lease at contract inception. An arrangement is or contains a lease if the agreement identifies an asset, implicitly or explicitly, that the Company has the right to use over a period of time. If an arrangement contains a lease, the Company classifies the lease as either an operating lease or as a finance lease based on the five criteria defined in ASC 842, “Leases”. Lease liabilities are recognized at commencement date based on the present value of the remaining lease payments over the lease term. The corresponding right-of-use (“ROU”) asset is recognized for the same amount as the lease liability adjusted for any payments made at or before the commencement date, any lease incentives received, and any initial direct costs. The Company’s lease agreements may include options to renew, extend or terminate the lease. These clauses are included in the initial measurement of the lease liability when at lease commencement the Company is reasonably certain that it will exercise such options. The discount rate used is based on the Company’s incremental borrowing rate since the implicit rate in the Company’s leases is not readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term and presented within selling, general and administrative expenses on the Company’s consolidated statements of operations. Finance lease ROU assets are amortized on a straight-line basis over the shorter of the useful life of the asset or the lease term. Interest expense on the finance lease liability is recognized using the effective interest rate method and is presented within interest expense on the Company’s consolidated statements of operations. Variable rent payments related to both operating and finance leases are expensed as incurred. The Company’s variable lease payments primarily consist of real estate taxes, maintenance and usage charges. The Company made an accounting policy election to combine lease and non-lease components (maintenance, taxes and insurance) when measuring lease liabilities for vehicle and equipment leases. The Company has elected to exclude short-term leases from the recognition requirements of ASC 842. A lease is short-term if, at the commencement date, it has a term of less than or equal to one year. Lease expense related to short-term leases is recognized on a straight-line basis over the lease term. Software Costs The Company capitalizes certain computer software licenses and software implementation costs that are included in software costs in its consolidated balance sheets. These costs were incurred in connection with developing or obtaining computer software for internal use if it has a useful life in excess of one year, in accordance with Accounting Standards Codification (“ASC”) 350-40 “Internal-Use Software.” Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task that it previously did not perform. Internal use software is amortized on a straight-line basis over a to seven year period. Capitalized costs include direct acquisitions as well as software and software development acquired under capitalized leases and internal labor where appropriate. Capitalized software purchases and related development costs, net of accumulated amortization, were $11,805 at December 30, 2022 and $14,780 at December 24, 2021. Convertible Debt The Company evaluates debt instruments with embedded conversion features in accordance with ASC 815 “Derivatives and Hedging” and ASC 470 “Debt” both of which provide several criteria that determine whether a conversion feature must be bifurcated from its debt host and accounted as a separate financial instrument. An entity is not required to bifurcate if the conversion feature is indexed to its own stock, meets all equity classification criteria and does not contain a beneficial conversion feature. The Company determined that bifurcation of its convertible debt instruments was not required and recognized the principal amount of these instruments as debt in its consolidated balance sheets. Debt Issuance Costs Certain up-front costs associated with the Company’s asset based loan facility are capitalized and included in other non-current assets in the Company’s consolidated balance sheets. The Company had $448 and $460 of such unamortized costs as of December 30, 2022 and December 24, 2021, respectively. Costs associated with the issuance of other debt instruments are capitalized and presented as a direct deduction from the carrying amount of the underlying debt liability. The Company had $20,050 and $4,976 of such unamortized costs as of December 30, 2022 and December 24, 2021, respectively. These costs are amortized over the terms of the related debt instruments by the effective interest rate method. Amortization of debt issuance costs was $1,290 for the fiscal year ended December 30, 2022, $2,299 for the fiscal year ended December 24, 2021 and $3,426 for the fiscal year ended December 25, 2020. Business Combinations The Company accounts for acquisitions in accordance with ASC 805 “Business Combinations.” Assets acquired and liabilities assumed are recorded in the accompanying consolidated balance sheets at their estimated fair values, as of the acquisition date. The excess of the purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred and presented in other operating expenses in the Company’s consolidated statements of operations. Results of operations are included in the Company’s financial statements from the date of acquisition. Intangible Assets The intangible assets recorded by the Company consist of customer relationships, covenants not to compete and trademarks which are amortized over their useful lives on a schedule that approximates the pattern in which economic benefits of the intangible assets are consumed. Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If any indicators are present, a recoverability test is performed by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. Undiscounted cash flows expected to be generated by the related assets are estimated over the assets’ useful lives based on updated projections. If the evaluation indicates that the carrying amount of the asset may not be recoverable, the potential impairment is measured based on a projected discounted cash flow model. The adverse impact to the Company’s customer base and market capitalization at the onset of the Pandemic were considered triggering events during the first quarter of fiscal 2020, and, accordingly, the Company performed a long-lived asset recoverability test as of March 27, 2020, the results of which indicated no impairment. During the second quarter of fiscal 2021, the Company recorded a $597 impairment charge, $433 net of tax, to fully write-down the net book value of its Cambridge trademark. During the fourth quarter of fiscal 2020, the Company recorded a $24,200 impairment charge, $17,545 net of tax, to write-down the value of its Del Monte and Bassian Farms trademarks. These impairment charges are presented within other operating expenses on the consolidated statements of operations. See Note 8 for more information. There have been no other events or changes in circumstances during fiscal 2022, 2021 or 2020, indicating that the carrying value of the Company’s finite-lived intangible assets are not recoverable. Goodwill Goodwill is the excess of the acquisition cost of businesses over the fair value of identifiable net assets acquired in accordance with ASC 350, “Intangibles-Goodwill and Other.” The Company’s maintains four reporting units. The Company evaluates the recoverability of goodwill at each of its reporting units annually in the fourth quarter, or more frequently when circumstances indicate an impairment may have occurred. A goodwill impairment loss, if any, would be recognized for the amount by which a reporting unit’s carrying value exceeded its fair value. The Company has the option to evaluate goodwill impairment using a qualitative or quantitative analysis. The adverse impact to the Company’s customer base and market capitalization at the onset of the Pandemic were considered triggering events during the first quarter of fiscal 2020, and accordingly, the Company performed an interim goodwill impairment test as of March 27, 2020, the results of which indicated no impairment. For its annual goodwill impairment test performed during the fourth quarter of fiscal 2020, the Company tested goodwill for impairment using a quantitative analysis. The Company estimated the fair value of its reporting units using an income approach and determined the fair value of its reporting units substantially exceeded their respective carry values. The Company’s income approach incorporates the use of a discounted cash flow methodology that involves many management assumptions that are based upon future growth projections. Assumptions include estimates of future revenue based upon budget projections and growth rates. The Company develops estimates of future levels of gross and operating profits and projected capital expenditures. This methodology includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. The Company also performed a reconciliation of its market capitalization and the estimate of the aggregate fair value of its reporting units, including consideration of a control premium. For the fiscal years ended December 30, 2022 and December 24, 2021, the Company assessed the recoverability of goodwill using a qualitative analysis and determined that it is more likely than not that the fair value of its reporting units exceeded their respective carry values. The qualitative analysis considered various factors including macroeconomic conditions, market conditions, industry trends, cost factors and financial performance, among others. There have been no events or changes in circumstances, other than the onset of the Pandemic, during fiscal 2022, 2021 or 2020, indicating that goodwill may be impaired. Employee Benefit Programs The Company sponsors a defined contribution plan covering substantially all full-time employees (the “401(k) Plan”). The Company recognized expense related to the 401(k) Plan totaling $1,714, $683 and $720, respectively, for fiscal 2022, 2021 and 2020. Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes.” Deferred tax assets or liabilities are recorded to reflect the future tax consequences of temporary differences between the financial reporting basis of assets and liabilities and their tax basis at each year-end. These amounts are adjusted, as appropriate, to reflect enacted changes in tax rates expected to be in effect when the temporary differences reverse. The Company estimates its ability to recover deferred tax assets within the jurisdiction from which they arise. This evaluation considers several factors, including results of recent operations, future taxable income, scheduled reversal of deferred tax liabilities, and tax planning strategies. As of December 30, 2022 and December 24, 2021, the Company had valuation allowances of $1,641 and $2,046, respectively, relating to certain net operating losses that may not be realizable in the future based on taxable income forecasts and certain state net operating loss limitations. ASC 740, “Income Taxes” established a single model to address accounting for uncertain tax positions and clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. The Company evaluates uncertain tax positions, if any, by determining if it is more likely than not to be sustained upon examination by the tax authorities. The Company records uncertain tax positions when it is more likely than not that such liabilities have been incurred. The Company, when required, will accrue interest and penalties related to income tax matters in income tax expense. The Company releases disproportionate tax effects from accumulated other comprehensive income as individual items are liquidated. Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, taxes and environmental matters, as well as commitments under contractual and other commercial obligations. The Company recognizes liabilities for contingencies and commitments when a loss is probable and can be reasonably estimated. Contingent Earn-out Liabilities The Company accounts for contingent consideration relating to business combinations as a liability and an increase to goodwill at the date of the acquisition and continually remeasures the liability at each balance sheet date by recording changes in the fair value through the consolidated statements of operations. The Company determines the fair value of contingent consideration based on future operating projections under various potential scenarios, including the use of Monte Carlo simulations, and weighs the probability of these outcomes. The ultimate settlement of contingent earn-out liabilities relating to business combinations may be for amounts which are materially different from the amounts initially recorded and may cause volatility in the Company’s results of operations. Stock-Based Compensation The Company determines the accounting classification of stock awards as either a liability or equity in accordance with ASC 480 “Distinguishing Liabilities from Equity” and ASC 718 “Compensation - Stock Compensation.” Stock awards are classified as liabilities when, among other considerations, they require settlement by issuing a variable number of shares. Stock-based compensation for stock awards classified as liabilities is initially measured at the grant date based on the estimated fair value of the ultimate award liability and remeasured each reporting period until settlement, considering the estimable probable outcome at the end of the performance period. The Company measures stock-based compensation for stock awards classified as equity at the grant date based on the fair value of the award. Restricted stock awards (“RSAs”) and performance share units are valued based on the fair value of the stock on the grant date. The related compensation expense is recognized over the service period on a straight-line basis and reduced by forfeitures when they occur. Stock-based compensation expense is presented within selling, general and administrative expenses on the Company’s consolidated statements of operations. Compensation expense on performance share units reflects the estimated probable outcome at the end of the performance period. The fair value of stock options and RSAs with market conditions is determined based on a Monte Carlo simulation in order to simulate a range of possible future stock prices for the Company’s common stock. For awards subject to graded vesting, the Company ensures that the compensation expense recognized is at least equal to the vested portion of the award. Self-Insurance Reserves The Company maintains a self-insured group medical program. The program contains individual stop loss thresholds of $300 per incident and aggregate stop loss thresholds based upon the average number of employees enrolled in the program throughout the year. The amount in excess of the self-insured levels is fully insured by third party insurers. Liabilities associated with this program are estimated in part by considering historical claims experience and medical cost trends. Projections of future loss expenses are inherently uncertain because of the random nature of insurance claims occurrences and could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. The Company maintains an insurance program for its automobile liability and workers’ compensation insurance subject to deductibles or self-insured retentions of $500 per occurrence. The amounts in excess of the deductibles are fully insured by third party insurers. Liabilities associated with this program are estimated in part by considering historical claims experience and cost trends. Projections of future loss expenses are inherently uncertain because of the random nature of insurance claims occurrences and could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. Assets and Liabilities Measured at Fair Value The Company accounts for certain assets and liabilities at fair value. The Company categorizes each of its fair value measurements in one of the following three levels based on the lowest level input that is significant to the fair value measurement in its entirety: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities include the following: a)quoted prices for similar assets in active markets; b)quoted prices for identical or similar assets in inactive markets; c)inputs other than quoted prices that are observable for the asset; and d)inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset. Level 3 - Inputs to the valuation methodology are unobservable (i.e., supported by little or no market activity) and significant to the fair value measure.
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Net Income (Loss) per Share |
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Net Income (Loss) per Share | Net Income (Loss) per Share The following table sets forth the computation of basic and diluted net income (loss) per common share:
Reconciliation of net income (loss) per common share:
Potentially dilutive securities that have been excluded from the calculation of diluted net income (loss) per common share because the effect is anti-dilutive are as follows:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value The Company’s contingent earn-out liabilities are measured at fair value. These liabilities were estimated using Level 3 inputs. The fair value of contingent consideration are predominantly determined based on a probability-based approach which includes projected results, percentage probability of occurrence and the application of a discount rate to present value the payments. A significant change in projected results, discount rate, or probabilities of occurrence could result in a significantly higher or lower fair value measurement. Changes in the fair value of contingent earn-out liabilities are reflected in other operating expenses on the Company’s consolidated statements of operations. The following table presents the changes in Level 3 contingent earn-out liabilities:
The long-term portion of contingent earn-out liabilities was $10,483 and $3,252 as of December 30, 2022 and December 24, 2021, respectively, and are reflected as other liabilities and deferred credits on the Company’s consolidated balance sheets. The remaining short-term portion of earn-out liabilities are reflected as accrued liabilities on the Company’s consolidated balance sheets. Contingent earn-out liability payments in excess of the acquisition date fair value of the underlying contingent earn-out liability are classified as operating activities on the Company’s consolidated statements of cash flows and all other such payments are classified as financing activities. Fair Value of Financial Instruments The carrying amounts reported in the Company’s consolidated balance sheets for accounts receivable and accounts payable approximate fair value due to the immediate to short-term nature of these financial instruments. The fair values of the asset based loan facility and term loan approximated their book values as of December 30, 2022 and December 24, 2021 as these instruments had variable interest rates that reflected current market rates available to the Company. The following table presents the carrying value and fair value of the Company’s convertible notes (more fully described in Note 9). The fair value of the Company’s 2028 Convertible Senior Notes was based on Level 1 inputs. In estimating the fair value of its 2024 Convertible Senior Notes and Convertible Unsecured Note, the Company utilized Level 3 inputs including prevailing market interest rates to estimate the debt portion of the instrument and a Black Scholes valuation model to estimate the fair value of the conversion options. The Black Scholes model utilizes the market price of the Company’s common stock, estimates of the stock’s volatility and the prevailing risk free interest rate in calculating the fair value estimates.
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Acquisitions |
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Acquisitions | Acquisitions Chef Middle East On November 1, 2022, pursuant to a share sale and purchase agreement, the Company acquired substantially all of the shares of Chef Middle East LLC (“CME”), a specialty food distributor with operations in the United Arab Emirates, Qatar and Oman. The purchase price was approximately $108,749, paid in cash at closing. The Company will also pay additional contingent consideration, if earned, in the form of an earn-out amount which could total $10,000 over a two-year period. The payment of the earn-out liability is subject to the successful achievement of certain gross profit targets. The Company estimated the fair value of this contingent earn-out liability to be $7,500 as of November 1, 2022 and December 30, 2022. The Company is in the process of finalizing a valuation of tangible and intangible assets of CME as of the acquisition date. When applicable, these valuations require the use of Level 3 inputs. The goodwill recorded primarily reflects the value of acquiring an established specialty seafood and produce distributor and any intangible assets that do not qualify for separate recognition. Capital Seaboard On December 28, 2021, pursuant to an asset purchase agreement, the Company acquired substantially all of the assets of CGC Holdings, Inc. (“Capital Seaboard”), a specialty seafood and produce distributor in Maryland. The purchase price was approximately $31,036, consisting of $28,000 paid in cash at closing, common stock warrants valued at $1,701, and $1,335 paid upon settlement of a net working capital true-up. Customer relationships and trademarks were valued at fair value using Level 3 inputs and are being amortized over 15 and 5 years, respectively. Goodwill for the Capital Seaboard acquisition will be amortized over 15 years for tax purposes. The goodwill recorded primarily reflects the value of acquiring an established specialty seafood and produce distributor to leverage the Company’s existing products in the markets served by Capital Seaboard, to supply Capital Seaboard’s product offerings to our East Coast markets and any intangible assets that do not qualify for separate recognition. Other Acquisitions During fiscal 2022, the Company completed six other acquisitions for an aggregate purchase price of approximately $55,300, consisting of $55,300 paid in cash, subject to customary working capital adjustments. The Company will also pay additional contingent consideration, if earned, in the form of earn-out amounts which could total $2,000 in the aggregate. The Company is in the process of finalizing valuations of tangible and intangible assets as of the acquisition dates. When applicable, these valuations require the use of Level 3 inputs. Goodwill for these acquisitions will be amortized over 15 years for tax purposes. The Company recognized professional fees of $4,357, $450 and $435 in other operating expenses related to acquisition activities in fiscal 2022, 2021 and 2020, respectively. The Company reflected net sales and loss before taxes in its consolidated statement of operations related to the acquisitions as follows:
The table below presents unaudited pro forma consolidated income statement information of the Company as if the acquisitions completed during fiscal 2022 had occurred on December 26, 2020. The pro forma results were prepared from financial information obtained from the sellers of the business, as well as information obtained during the due diligence process associated with the acquisitions. The pro forma information is not necessarily indicative of the Company’s results of operations had the acquisitions been completed on the above date, nor is it necessarily indicative of the Company’s future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisitions, any incremental costs for transitioning to become a public company, and also does not reflect additional revenue opportunities following the acquisitions. The pro forma information reflects amortization and depreciation of the acquisitions at their respective fair values.
The table below sets forth the purchase price allocation of these acquisitions:
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Inventories |
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Dec. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist primarily of finished product. Our entities record inventory using a mixture of first-in, first-out and average cost, which we believe approximates first-in, first-out. Inventory is reflected net of adjustments for shrinkage, excess and obsolescence to approximate their net realizable value totaling $9,198 and $8,312 at December 30, 2022 and December 24, 2021, respectively.
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment as of December 30, 2022 and December 24, 2021 consisted of the following:
Construction-in-process at December 30, 2022 related primarily to the build-out of the Company’s Miami, Dallas and Richmond, CA distribution facilities and the implementation of the Company’s Enterprise Resource Planning system. Construction-in-process at December 24, 2021 related primarily related primarily to the build-outs of the Company’s Los Angeles and Miami distribution facilities. The net book value of equipment financed under finance leases at December 30, 2022 and December 24, 2021 was $11,579 and $10,874, respectively. No interest expense was capitalized during the fiscal years ended December 30, 2022, December 24, 2021 and December 25, 2020. The components of depreciation and amortization expense were as follows:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill are presented as follows:
Other intangible assets as of December 30, 2022 and December 24, 2021 consisted of the following:
During the second quarter of fiscal 2021, the Company recorded a $597 impairment charge, $433 net of tax, to fully write-down the net book value of its Cambridge trademark. During fourth quarter of fiscal 2020, the Company committed to a plan to shift its brand strategy, to commence in the second quarter of fiscal 2021, to leverage its Allen Brothers brand in its west region and determined its Del Monte, Ports Seafood and Bassian Farms trademarks did not fit the Company’s long-term strategic objectives. The Company assessed these trademarks for impairment and used the relief of royalty method to determine fair value. Significant assumptions used include future sales forecasts, royalty rates and discount rates. As a result of the assessment, the Company recorded a $24,200 impairment charge, $17,545 net of tax, to write-down the value of its Del Monte and Bassian Farms trademarks. This impairment charge is presented within other operating expenses on the consolidated statements of operations. Amortization expense for other intangibles was $13,913, $12,967 and $13,502 for the fiscal years ended December 30, 2022, December 24, 2021 and December 25, 2020, respectively. As of December 30, 2022, estimated amortization expense for other intangible assets for each of the next five fiscal years and thereafter is as follows:
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Debt Obligations |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations | Debt Obligations Debt obligations as of December 30, 2022 and December 24, 2021 consisted of the following:
Maturities of the Company’s debt, excluding finance leases, for each of the next five years and thereafter at December 30, 2022 are as follows:
Senior Secured Term Loan Credit Facility On June 22, 2016, the Company entered into a credit agreement (the “Term Loan Credit Agreement”) with a group of lenders for which Jefferies Finance LLC acts as administrative agent and collateral agent. The Term Loan Credit Agreement provides for a senior secured term loan B facility (the “Term Loan Facility”). On August 23, 2022, the Company entered into an eight amendment (“Eighth Amendment”) in an aggregate principal amount of $300,000 maturing on August 23, 2029 (“2029 Term Loans”), comprising of a refinancing of the then existing term loans balance under the Term Loan Credit Agreement of $167,391 and an incremental borrowing of $132,609. The incremental funds are to be used for capital expenditures, permitted acquisitions, working capital, and general corporate purposes of the Company. Substantially all of the Company’s assets are pledged as collateral. The Company is required to make scheduled principal payments of 0.25% of the original principal amount per quarter. Additionally, the Term Credit Agreement includes an accordion which permits the Company to request that the lenders extend additional Term Loans based on certain performance, leverage ratio and other restrictions. The Term Loan Credit Agreement includes a springing maturity of the earlier of August 23, 2029 and the date that is 181 days prior to the schedule maturity date of any individual trance of unsecured indebtedness of which a principal amount in excess of $40,000 remains outstanding on such date. The interest charged on the 2029 Term Loans is equal to, at the Company’s option, either the Alternate Base Rate (as defined in the Eighth Agreement) plus 375 basis points or the secured overnight financing rate (“SOFR”) for one-, two-, three- or six -month interest periods chosen by the Company. The Eight Amendment involved multiple members of a loan syndicate. The Company performed an analysis for each lender in accordance with ASC 470 “Debt” to determine whether the Eighth Amendment resulted in a substantial change to the remaining cash flows which is defined as a change in present value of remaining cash flows of 10% or more. As a result of the analysis, the Company incurred a loss on debt extinguishment of $142 which represents the portion of unamortized deferred financing fees attributable to lenders that exited the loan syndicate. The transaction was accounted for as a modification for existing lenders that participated in the 2029 Term Loans. The Company deferred lender and third-party fees of $10,852 as debt issuance costs to be amortized over the term of the loan. Arrangement and third-party transaction costs of $4,498 were expensed as incurred. The Term Loan Facility contains affirmative covenants, negative covenants and events of default customary for a term loan B facility of this type, as more particularly described in the Term Loan Credit Agreement. The Eight Amendment removed a minimum liquidity covenant which required the Company to maintain certain liquidity levels as of the last day of any fiscal quarter where EBITDA did not meet a predefined target. Asset-Based Loan Facility On June 29, 2018, the Company entered into a credit agreement (the “ABL Credit Agreement”) with a group of lenders for which BMO Harris Bank, N.A. acts as administrative agent. The ABL Credit Agreement provides for an asset-based loan facility (the “ABL”) in the aggregate amount of up to $150,000. On March 11, 2022 the Company entered into a third amendment to the ABL Credit Agreement which increased the aggregate commitments to $200,000 maturing on March 11, 2027. Borrowings under the ABL will be used, and are expected to be used, for capital expenditures, permitted acquisitions, working capital and general corporate purposes of the Company. Availability under the ABL will be limited to a borrowing base equal to the lesser of: (i) the aggregate amount of commitments or (ii) the sum of specified percentages of eligible receivables and eligible inventory, minus certain availability reserves. The Company under the ABL is entitled on one or more occasions, subject to the satisfaction of certain conditions, to request an increase in the commitments under the ABL in an aggregate principal amount of up to $25,000. The ABL includes a springing maturity date that occurs 90 days prior to the earliest maturity under the Company’s senior secured term loan facility and the date that is 181 days prior to the scheduled maturity date of any individual tranche of unsecured indebtedness of which a principal amount in excess of $40,000 remains outstanding on such date and March 11, 2027. The third amendment of the ABL was accounted for as a debt modification. The Company incurred transaction costs of $406 which were capitalized as deferred financing fees to be amortized over the term of the ABL. The interest rate charged on borrowings under the ABL is equal to a spread plus, at the Company’s option, either the Base Rate (as defined in the ABL Credit Agreement) or a forward-looking term rate based on SOFR for one-, three-, or six-month interest periods chosen by the Company. The Company will pay certain recurring fees with respect to the ABL, including fees on unused lender commitments. The ABL Credit Agreement contains customary affirmative covenants, negative covenants and events of default as more particularly described in the ABL Credit Agreement. If the amount of availability under the ABL falls below $14,000 or 10% of the borrowing base,the Company is required to comply with a minimum consolidated fixed charge coverage ratio of 1:1. The Company had reserved $24,173 of the ABL for the issuance of letters of credit. As of December 30, 2022, funds totaling $135,827 were available for borrowing under the ABL. 2028 Convertible Senior Notes On December 13, 2022, the Company issued $287,500 aggregate principal amount of 2.375% Convertible Senior Notes (the “2028 Convertible Notes”). The 2028 Senior Notes were issued pursuant to an indenture, dated as of December 13, 2022 (the “2028 Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. Concurrently with the issuance of the 2028 Convertible Notes, the Company entered into separate, privately negotiated transactions (the “Exchange Transactions”) with a limited number of holders of its 1.875% Convertible Senior Notes ( the “2024 Convertible Notes) to exchange or repurchase approximately $158,316 principal amount of 2024 Convertible Notes for an aggregate consideration consisting of approximately $159,709 in cash, which includes accrued interest on the 2024 Convertible Notes, and approximately 324,066 shares of the Company’s common stock. Net proceeds are are expected to be used for capital expenditures, permitted acquisitions, working capital and general corporate purposes of the Company. The Company performed an analysis for each lender in accordance with ASC 470 “Debt” to determine whether the Exchange Transactions resulted in a substantial change to the remaining cash flows which is defined as a change in present value of remaining cash flows or a change in the fair value of the conversion option of more than 10%. As a result of the analysis, the Exchange Transaction was recorded as an extinguishment and the Company incurred a loss on debt extinguishment of $14,145 which is reflected in interest expense on the Company’s consolidated statements of operations. The Company incurred third party transaction costs of approximately $6,971 which were capitalized as deferred financing fees to be amortized over the term of the 2028 Senior Notes. The 2028 Convertible Notes bear interest of 2.375% per annum payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2023. The initial conversion price is approximately $44.27 per share together with cash in lieu of any fractional share. The conversion price is subject to adjustments upon the occurrence of certain events. The 2028 Convertible Notes will mature on December 15, 2028, unless earlier converted or repurchased in accordance with their terms. Before September 15, 2028, holders of the 2028 Convertible Notes will have the right to convert only upon the occurrence of certain events. From and after September 15, 2028, holders may convert at any time at their election until the close of business on the scheduled trading day immediately before the maturity date. The Company will settle conversions by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election. In addition, if the Company undergoes a fundamental change, as described in the 2028 Indenture, holders may require the Company to repurchase for cash all or part of their 2028 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2028 Convertible Notes to be repurchased, plus accrued and unpaid interest up to, but excluding, the required repurchase date. 2024 Convertible Senior Notes On November 22, 2019, the Company issued $150,000 aggregate principal amount of 2024 Convertible Notes pursuant to an indenture, dated as of November 22, 2019 (the “2024 Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. Approximately $43,225 of the net proceeds were used to repay all borrowings then outstanding under the ABL and the remainder was used for working capital, general corporate purposes and acquisitions. The Company incurred transaction costs of approximately $5,082 which were capitalized as deferred financing fees to be amortized over the term of the 2024 Convertible Notes. On March 1, 2021, the Company issued $50,000 aggregate principal amount of 2024 Convertible Notes at a premium which were offered as an additional issuance and under the same terms as the 2024 Convertible Notes initially issued on November 22, 2019. Net proceeds were used to repay all outstanding borrowings under the Company's 2022 tranche of senior secured term loans of $31,166 and repay a portion of borrowings outstanding under the Company’s ABL. The Company incurred transaction costs of approximately $1,350 which were capitalized as deferred financing fees to be amortized over the term of the 2024 Senior Notes. The 2024 Convertible Notes bear interest of 1.875% per annum payable semiannually in arrears on June 1 and December 1 of each year, beginning on June 1, 2020. At any time before the close of business on the scheduled trading day immediately before the maturity date, the 2024 Convertible Notes will be convertible at the option of holders into shares of the Company’s common stock, together with cash in lieu of any fractional share, at an initial conversion price of approximately $44.20 per share. The conversion price is subject to adjustments upon the occurrence of certain events. The 2024 Convertible Notes will mature on December 1, 2024, unless earlier converted or repurchased in accordance with their terms. The Company may not redeem the 2024 Convertible Notes at its option prior to maturity. In addition, if the Company undergoes a fundamental change, as described in the 2024 Indenture, holders may require the Company to repurchase for cash all or part of their 2024 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2024 Convertible Notes to be repurchased, plus accrued and unpaid interest up to, but excluding, the required repurchase date. Convertible Unsecured Note On February 25, 2019, the Company issued a $4,000 convertible unsecured note (the “Unsecured Note”), maturing on June 29, 2023, to Bassian Farms, Inc. (the “Holder”) as partial consideration in the Bassian acquisition. The interest rate charged on the Unsecured Note was 4.5% per annum and increased to 5.0% after the two-year anniversary of the closing date. The Company may, in certain instances beginning eighteen months after issuance of the Unsecured Note, redeem the Unsecured Note in whole or in part for cash or convert the Unsecured Note into shares of the Company’s common stock at the conversion price of $43.93 per share. After the two-year anniversary of the closing date, the Holder may convert the Unsecured Note into shares of the Company’s common stock at the conversion price. Upon a change of control event, the Holder may convert the Unsecured Note into shares of the Company’s common stock at the conversion price or redeem the Unsecured Note for cash. The net carry value of the Company’s convertible notes as of December 30, 2022 and December 24, 2021 was:
The components of interest expense on the Company’convertible notes were as follows:
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Stockholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Warrants In connection with an acquisition during the second quarter of fiscal 2021, the Company issued warrants with a fair value of $1,120 to purchase up to 150,000 shares of the Company’s common stock at an exercise price of $31.96 per share. These warrants expire on April 22, 2024. In connection with the acquisition of Capital Seaboard during the first quarter of fiscal 2022, the Company issued warrants with a fair value of $1,701 to purchase up to 150,000 shares of the Company’s common stock at an exercise price of $31.55 per share. These warrants expire on December 26, 2025. Public Common Stock Offering On May 14, 2020, the Company completed a public offering of 5,769,231 shares of its common stock at a price of $13.00 per share to the underwriters, to be reoffered by the underwriters at variable prices per share, which resulted in net proceeds of approximately $74,691 after deducting underwriters’ fees, commissions and transaction expenses. In addition, the Company granted a 30-day option to purchase up to an additional 865,384 shares of its common stock at a price of $13.00 per share to the underwriters, to be reoffered by the underwriters at variable prices per share. The option was fully exercised on June 2, 2020 and resulted in additional proceeds of $11,250. Equity Incentive Plan On May 17, 2019, the Company’s stockholders approved the 2019 Omnibus Equity Incentive Plan (the “2019 Plan”). Concurrently, the 2011 Omnibus Equity Incentive Plan (the “2011 Plan”) was terminated and any shares remaining available for new grants under the 2011 Plan share reserve were extinguished. The purpose of the 2019 Plan is to promote the interests of the Company and its stockholders by (i) attracting and retaining key officers, employees and directors of, and consultants to, the Company and its Subsidiaries and Affiliates; (ii) motivating such individuals by means of performance-related incentives to achieve long-range performance goals; (iii) enabling such individuals to participate in the long-term growth and financial success of the Company; (iv) encouraging ownership of stock in the Company by such individuals; and (v) linking their compensation to the long-term interests of the Company and its stockholders. The 2019 Plan is administered by the Compensation and Human Capital Committee (the “Committee”) of the Board of Directors and allows for the issuance of stock options, stock appreciation rights (“SARs”), RSAs, restricted share units, performance awards, or other stock-based awards. Stock option exercise prices are fixed by the Committee but shall not be less than the fair market value of a common share on the date of the grant of the option, except in the case of substitute awards. Similarly, the grant price of an SAR may not be less than the fair market value of a common share on the date of the grant. The Committee will determine the expiration date of each stock option and SAR, but in no case shall the stock option or SAR be exercisable after the expiration of 10 years from the date of the grant. The 2019 Plan provides for 2,600,000 shares available for grant. As of December 30, 2022, there were 2,046,252 shares available for grant. Stock compensation expense was $13,602, $11,479 and $9,292 for the fiscal years ended December 30, 2022, December 24, 2021 and December 25, 2020, respectively. The related tax benefit for stock-based compensation was $22, $49 and $133 for the fiscal years ended December 30, 2022, December 24, 2021 and December 25, 2020, respectively. The following table reflects the activity of RSAs during the fiscal year ended December 30, 2022:
The fair value of RSAs vested during the fiscal years ended December 30, 2022, December 24, 2021 and December 25, 2020, was $8,719, $7,848 and $8,109, respectively. These awards are a mix of time-, market- and performance-based grants awarded to key employees and non-employee directors that generally vest over a range of periods up to four-years. The market- and performance-based RSAs generally cliff vest, if at all, after the conclusion of a three-year performance period and vesting is subject to the award recipient’s continued service to the Company as of the vesting date. The number of performance-based RSAs that ultimately vest is based on the Company’s attainment of certain profitability and return on invested capital targets. During the fourth quarter of fiscal 2020, the Company modified its 2018 performance-awards and certain 2018 time-based awards such that they vested on December 17, 2020. The modifications affected seventeen employees and resulted in incremental stock compensation expense of $1,999. Concurrent with these modifications, the Company also cancelled its 2020 and 2019 performance-based awards and its 2020 market-based equity awards. At December 30, 2022, the total unrecognized compensation cost for the Company’s unvested RSAs was $20,080 to be recognized over a weighted-average period of approximately 1.9 years. Of this total, $9,281 related to RSAs with time-based vesting provisions to be recognized over a weighted average period of 2.0 years and $10,799 related to RSAs with performance- or market-based vesting provisions to be recognized over a weighted average period of 1.8 years. The following table summarizes stock option activity during the fiscal year ended December 30, 2022:
The Company issues new shares upon the exercise of stock options. No stock option expense was recognized during the fiscal years ended December 30, 2022 and December 24, 2021. No compensation expense related to the Company’s RSAs or stock options has been capitalized. In connection with the CME acquisition, the Company issued stock awards to certain members of the CME management team which were classified as liabilities. These awards vest over a period of up to four years. Stock-based compensation expense for these awards was $362 during the fiscal year ended December 30, 2022. As of December 30, 2022, the fair value of these awards was $362 and is presented within Other liabilities and deferred credits on the Company’s consolidated balance sheets.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The components of net lease cost were as follows:
The maturities of the Company’s lease liabilities for each of the next five fiscal years and thereafter at December 30, 2022 were as follows:
Supplemental balance sheet information related to finance leases was as follows:
At December 30, 2022, the weighted-average lease term for operating and finance leases was 11.0 years and 4.0 years, respectively. At December 30, 2022, the weighted-average discount rate for operating and finance leases was 6.7% and 4.6%, respectively. As of December 30, 2022, the Company is contractually obligated to make payments over the next 14 years of approximately $44,593 related to long-term leases for a distribution facility, vehicles and material handling equipment that have not commenced. Accordingly, the Company has not recognized ROU assets or lease liabilities associated with these leases.
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Leases | Leases The components of net lease cost were as follows:
The maturities of the Company’s lease liabilities for each of the next five fiscal years and thereafter at December 30, 2022 were as follows:
Supplemental balance sheet information related to finance leases was as follows:
At December 30, 2022, the weighted-average lease term for operating and finance leases was 11.0 years and 4.0 years, respectively. At December 30, 2022, the weighted-average discount rate for operating and finance leases was 6.7% and 4.6%, respectively. As of December 30, 2022, the Company is contractually obligated to make payments over the next 14 years of approximately $44,593 related to long-term leases for a distribution facility, vehicles and material handling equipment that have not commenced. Accordingly, the Company has not recognized ROU assets or lease liabilities associated with these leases.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The components of the Company’s operating income (loss) before income taxes consist of the following:
The provision for income taxes consists of the following:
In response to the Pandemic, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. Among other provisions it allows for the carryback of federal net operating losses generated in 2020 to five preceding years and a refundable Employee Retention Tax Credit (“ERTC”) to eligible employers. The Company’s fiscal 2020 income tax provision reflects the impact of an expected income tax refund receivable of $21,250 which is reflected in prepaid expenses and other current assets on the Company’s consolidated balance sheets as of December 30, 2022 and December 24, 2021, as a result of the five year carryback allowed under the CARES Act. During the second quarter of fiscal 2021, the Company recognized a receivable of $1,418 related to the ERTC which is presented within prepaid expenses and other current assets on the consolidated balance sheet and the related expense reduction is presented within selling, general and administrative expenses on the consolidated statements of operations. The IRS is experiencing significant processing delays driven by an increase in net operating loss carryback requests as a result of the CARES Act, along with other factors. As a result, the processing and expected receipt of the federal income tax refund receivable and ERTC receivable have been significantly delayed. The Company is currently working with IRS Taxpayer’s Advocate Services and consultants to resolve the processing issue. While progress has been made with the IRS and the Company expects to receive the refunds within one year, the exact timing of receipt is difficult to predict. Income tax expense (benefit) differed from amounts computed using the statutory federal income tax rate due to the following reasons:
Deferred tax assets and liabilities at December 30, 2022 and December 24, 2021 consist of the following:
The deferred tax provision results from the effects of net changes during the year in deferred tax assets and liabilities arising from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company files income tax returns in the U.S. Federal and various state and local jurisdictions as well as the Canadian Federal and provincial districts. For Federal income tax purposes, the 2019 through 2022 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations and the fact that we have not yet filed our tax return for 2022. For state tax purposes, the 2018 through 2022 tax years remain open for examination by the tax authorities under a four-year statute of limitations. The Company records interest and penalties, if any, in income tax expense. The Company considered all available positive and negative evidence to determine if based on the weight of such evidence, a valuation allowance is needed. At December 30, 2022, the Company had a valuation allowance of $1,641, which consisted of foreign net operating loss carryforwards as it is not expected to be fully realizable in the future. The Company’s Canada net operating loss carryforward of $1,770 expires at various dates between fiscal 2038 and 2040. The Company’s state net operating loss carryforwards of $3,604 expire at various dates, the earliest of which expire in fiscal 2026 while others are indefinite-lived. The Company’s charitable contributions carry forward of $2,569 expire between fiscal 2025 and 2027. The Company is permanently reinvesting the earnings of it’s foreign operations. The accumulated undistributed earnings of its foreign subsidiaries are immaterial, as a majority of such earnings have been taxed in the U.S. As of December 30, 2022 and December 24, 2021, the Company did not have any material uncertain tax positions.
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Supplemental Disclosures of Cash Flow Information |
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Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information
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Employee Benefit Plans |
12 Months Ended |
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Dec. 30, 2022 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Employee Tax-Deferred Savings Plan The Company offers a 401(k) Plan to eligible employees that provides for tax-deferred salary deductions for eligible employees. Employees may choose to make voluntary contributions of their annual compensation to the 401(k) Plan, limited to an annual maximum amount as set periodically by the Internal Revenue Service. The Company provides discretionary matching contributions equal to 50 percent of the employee’s contribution amount, up to a maximum of six of the employee’s annual salary, capped at $2.5 per employee per year. Matching contributions begin vesting after one year and are fully vested after five years. Employee contributions are fully vested when made. As a result of the Pandemic, the Company’s matching contributions were temporarily suspended from March 31, 2020 through August 31, 2021. Under the 401(k) Plan there is no option available to the employee to receive or purchase the Company’s common stock. Matching contributions under the 401(k) Plan were $1,714, $683 and $720, respectively, for fiscal 2022, 2021 and 2020.
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Related Parties |
12 Months Ended |
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Dec. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | Related PartiesThe Chefs’ Warehouse Mid-Atlantic, LLC, a subsidiary of the Company, leases a distribution facility that is 100% owned by entities controlled by Christopher Pappas, the Company’s chairman, president and chief executive officer, and John Pappas, the Company’s vice chairman and one of its directors, and are deemed to be affiliates of these individuals. Expense related to this facility was $493 for fiscal 2022, $493 for fiscal 2021 and $488 for fiscal 2020. This lease was amended during the first quarter of fiscal 2020 and expires on September 30, 2023. |
Commitments and Contingencies |
12 Months Ended |
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Dec. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Contingencies The Company is involved in various legal proceedings. The Company establishes reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. Management has also identified certain other legal matters where the Company believes an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. The Company does not believe that there is a reasonable possibility of material loss or loss in excess of the amount that the Company has accrued. The Company recognizes legal fees related to any ongoing legal proceeding as incurred. Audits The Company is involved in various matters, with respect to some of which the outcome is uncertain. These audits may result in the assessment of additional taxes or other costs that are subsequently resolved with authorities or potentially through the courts. Risk Management Programs The Company’s self-insurance reserves for its medical program totaled $2,310 and $2,373 at December 30, 2022 and December 24, 2021, respectively. The Company’s self-insurance reserves for its automobile liability program totaled $3,830 and $3,980 at December 30, 2022 and December 24, 2021, respectively. Self-insurance reserves for workers’ compensation totaled $10,544 and $7,053 at December 30, 2022 and December 24, 2021, respectively. Workforce As of December 30, 2022, approximately 4.4% of the Company’s employees are represented by unions, all of whom are operating under collective bargaining agreements which expire at various times between fiscal 2024 and 2025. Approximately 0.8% of the Company’s employees are under a collective bargaining agreement that expires in fiscal 2024.
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Valuation Reserves |
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SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Reserves | Valuation Reserves The following tables summarize the activity in our valuation accounts during the fiscal years ended December 30, 2022, December 24, 2021 and December 25, 2020:
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Subsequent Events |
12 Months Ended |
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Dec. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn January 23, 2023, the Company entered into an asset purchase agreement to acquire substantially all of the assets of a specialty food and produce distributor in California. The purchase price was $10,000 paid in cash at closing and is subject to a customary working capital true-up. The Company will also pay additional contingent consideration, if earned, in the form of earn-out amounts which could total $2,000. The Company has not provided the preliminary purchase price allocation for this acquisition as the initial accounting is incomplete. |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 30, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Period | The Company’s quarterly periods end on the thirteenth Friday of each quarter. Every six to seven years the Company will add a fourteenth week to its fourth quarter to more closely align its year end to the calendar year. |
Revenue Recognition, Deferred Revenue, Right of Return, Cost of Sales, and Vendor Rebates and Other Promotional Incentives | Revenues from product sales are recognized at the point at which control of each product is transferred to the customer. The Company’s contracts contain performance obligations which are satisfied when customers have physical possession of each product. The majority of customer orders are fulfilled within a day and customer payment terms are typically 14 to 60 days from delivery. Shipping and handling activities are costs to fulfill the Company’s performance obligations. These costs are expensed as incurred and presented within selling, general and administrative expenses on the consolidated statements of operations. The Company offers certain sales incentives to customers in the form of rebates or discounts. These sales incentives are accounted as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and records a corresponding reduction in revenue. The Company does not expect a significant reversal in the amount of cumulative revenue recognized. Sales tax billed to customers is not included in revenue but rather recorded as a liability owed to the respective taxing authorities at the time the sale is recognized.The Company determines its product category classification based on how the Company currently markets its products to its customers. The Company’s definition of its principal product categories may differ from the way in which other companies present similar information.Certain customer arrangements in the Company’s direct-to-consumer business, prepaid gift plans and gift card purchases, result in deferred revenues when cash payments are received in advance of performance. The Company recognizes revenue on its prepaid gift plans when control of each product is transferred to the customer. Performance obligations under the Company’s prepaid gift plans are satisfied within a period of twelve months or less. Gift cards issued by the Company do not have expiration dates. The Company records a liability for unredeemed gift cards at the time gift cards are sold and the liability is reduced when the card is redeemed, the value of the card is escheated to the appropriate government agency, or through breakage. Gift card breakage is estimated based on the Company’s historical redemption experience and expected trends in redemption patterns. Amounts recognized through breakage represent the portion of the gift card liability that is not subject to unclaimed property laws and for which the likelihood of redemption is remote.The Company’s standard terms and conditions provide customers with a right of return if the goods received are not merchantable. Customers are either issued a replacement order at no cost, or are issued a credit for the returned goods.The Company records cost of sales based upon the net purchase price paid for a product, including applicable freight charges incurred to deliver the product to the Company’s warehouse, and food processing costs. Food processing costs include but are not limited to direct labor and benefits, applicable overhead and depreciation of equipment and facilities used in food processing activities.The Company receives consideration and product purchase credits from certain vendors that the Company accounts for as a reduction of cost of sales. There are several types of cash consideration received from vendors. The purchase incentive is primarily in the form of a specified amount per pound or per case, or an amount for year-over-year growth. |
Contract Costs and Selling, General and Administrative Expenses | Sales commissions are expensed when incurred because the amortization period is one year or less. These costs are presented within selling, general and administrative expenses on the Company’s consolidated statements of operations.Selling, general and administrative expenses include facilities costs, product shipping and handling costs, warehouse costs, and other selling, general and administrative costs. |
Other Operating Expenses | Other operating expenses includes expenses primarily related to changes in the fair value of the Company’s contingent earn-out liabilities, gains and losses on asset disposals, asset impairments, certain third-party deal costs incurred in connection with business acquisitions or financing arrangements and certain other costs. |
Segment Reporting | The Company’s business consists of three operating segments: East, Midwest and West that aggregate into one reportable segment, food product distribution, which is concentrated primarily in the United States. |
Consolidation | The consolidated financial statements include all the accounts of the Company and its direct and indirect wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Guidance Adopted and Not Yet Adopted | Guidance Not Yet Adopted There is no recent accounting guidance not yet adopted that is expected to have a material impact on the Company’s consolidated financial statements when adopted.
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Use of Estimates | The preparation of the Company’s consolidated financial statements in conformity with generally accepted accounting principles requires it to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. Estimates are used in determining, among other items, the allowance for doubtful accounts, inventory valuation adjustments, self-insurance reserves for group medical insurance, workers’ compensation insurance and automobile liability insurance, future cash flows associated with impairment testing for intangible assets (including goodwill) and long-lived assets, useful lives for intangible assets, stock-based compensation, contingent earn-out liabilities and tax reserves. Actual results could differ from estimates. |
Cash and Cash Equivalents | The Company considers all highly liquid investments with an original maturity of less than three months to be cash equivalents. The Company periodically maintains balances at financial institutions which may exceed Federal Deposit Insurance Corporation insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. |
Accounts receivable | Accounts receivable consist of trade receivables from customers and are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined based upon a number of specific criteria, such as whether a customer has filed for or been placed into bankruptcy, has had accounts referred to outside parties for collections or has had accounts significantly past due. The allowance also covers short paid invoices the Company deems to be uncollectible as well as a portion of trade accounts receivable balances projected to become uncollectible based upon historic patterns and macro-economic factors in existence as of the balance sheet date that may impact the food-away-from-home industry and/or its customers, and specifically, beginning in the first quarter of fiscal 2020, the impact of the Pandemic and the subsequent recovery. |
Inventories | Inventories consist primarily of finished goods, food and related food products held for resale and are valued at the lower of cost or market. Our different entities record inventory using a mixture of first-in, first-out and average cost, which we believe approximates first-in, first-out. The Company adjusts inventory balances for excess and obsolete inventories to approximate their net realizable value. |
Concentrations of Credit Risks | Financial instruments that subject the Company to concentrations of credit risk consist of cash, temporary cash investments and trade receivables. The Company’s policy is to deposit its cash and temporary cash investments with major financial institutions. The Company distributes its food and related products to a customer base that consists primarily of leading menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos and specialty food stores. To reduce credit risk, the Company performs ongoing credit evaluations of its customers’ financial conditions. The Company generally does not require collateral. However, the Company, in certain instances, has obtained personal guarantees from certain customers. There is no significant balance with any individual customer. |
Property and Equipment | Property and equipment are recorded at cost and are depreciated on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. Property and equipment are reviewed for impairment in accordance with ASC 360-10-35-15, “Impairment or Disposal of Long-Lived Assets” which only requires testing whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If any indicators are present, a recoverability test is performed by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If the net undiscounted cash flows do not exceed the carrying amount (i.e., the asset is not recoverable), an additional step is performed that determines the fair value of the asset and the Company records an impairment, if any. The adverse impact to the Company’s customer base and market capitalization at the onset of the Pandemic were considered triggering events during the first quarter of fiscal 2020, and accordingly, the Company performed a long-lived asset recoverability test as of March 27, 2020 the results of which indicated no impairment. The Company has not recorded any impairment of equipment and leasehold improvements in fiscal 2022, 2021 or 2020. |
Leases | The Company leases various distribution centers, office facilities, vehicles and equipment. The Company determines if an arrangement contains a lease at contract inception. An arrangement is or contains a lease if the agreement identifies an asset, implicitly or explicitly, that the Company has the right to use over a period of time. If an arrangement contains a lease, the Company classifies the lease as either an operating lease or as a finance lease based on the five criteria defined in ASC 842, “Leases”. Lease liabilities are recognized at commencement date based on the present value of the remaining lease payments over the lease term. The corresponding right-of-use (“ROU”) asset is recognized for the same amount as the lease liability adjusted for any payments made at or before the commencement date, any lease incentives received, and any initial direct costs. The Company’s lease agreements may include options to renew, extend or terminate the lease. These clauses are included in the initial measurement of the lease liability when at lease commencement the Company is reasonably certain that it will exercise such options. The discount rate used is based on the Company’s incremental borrowing rate since the implicit rate in the Company’s leases is not readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term and presented within selling, general and administrative expenses on the Company’s consolidated statements of operations. Finance lease ROU assets are amortized on a straight-line basis over the shorter of the useful life of the asset or the lease term. Interest expense on the finance lease liability is recognized using the effective interest rate method and is presented within interest expense on the Company’s consolidated statements of operations. Variable rent payments related to both operating and finance leases are expensed as incurred. The Company’s variable lease payments primarily consist of real estate taxes, maintenance and usage charges. The Company made an accounting policy election to combine lease and non-lease components (maintenance, taxes and insurance) when measuring lease liabilities for vehicle and equipment leases. The Company has elected to exclude short-term leases from the recognition requirements of ASC 842. A lease is short-term if, at the commencement date, it has a term of less than or equal to one year. Lease expense related to short-term leases is recognized on a straight-line basis over the lease term.
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Software Costs | The Company capitalizes certain computer software licenses and software implementation costs that are included in software costs in its consolidated balance sheets. These costs were incurred in connection with developing or obtaining computer software for internal use if it has a useful life in excess of one year, in accordance with Accounting Standards Codification (“ASC”) 350-40 “Internal-Use Software.” Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task that it previously did not perform. Internal use software is amortized on a straight-line basis over a | to seven year period. Capitalized costs include direct acquisitions as well as software and software development acquired under capitalized leases and internal labor where appropriate.
Convertible Debt and Debt Issuance Costs | The Company evaluates debt instruments with embedded conversion features in accordance with ASC 815 “Derivatives and Hedging” and ASC 470 “Debt” both of which provide several criteria that determine whether a conversion feature must be bifurcated from its debt host and accounted as a separate financial instrument. An entity is not required to bifurcate if the conversion feature is indexed to its own stock, meets all equity classification criteria and does not contain a beneficial conversion feature. The Company determined that bifurcation of its convertible debt instruments was not required and recognized the principal amount of these instruments as debt in its consolidated balance sheets.Certain up-front costs associated with the Company’s asset based loan facility are capitalized and included in other non-current assets in the Company’s consolidated balance sheets. |
Business Combinations | The Company accounts for acquisitions in accordance with ASC 805 “Business Combinations.” Assets acquired and liabilities assumed are recorded in the accompanying consolidated balance sheets at their estimated fair values, as of the acquisition date. The excess of the purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred and presented in other operating expenses in the Company’s consolidated statements of operations. Results of operations are included in the Company’s financial statements from the date of acquisition. |
Intangible Assets | The intangible assets recorded by the Company consist of customer relationships, covenants not to compete and trademarks which are amortized over their useful lives on a schedule that approximates the pattern in which economic benefits of the intangible assets are consumed. Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If any indicators are present, a recoverability test is performed by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. Undiscounted cash flows expected to be generated by the related assets are estimated over the assets’ useful lives based on updated projections. If the evaluation indicates that the carrying amount of the asset may not be recoverable, the potential impairment is measured based on a projected discounted cash flow model. The adverse impact to the Company’s customer base and market capitalization at the onset of the Pandemic were considered triggering events during the first quarter of fiscal 2020, and, accordingly, the Company performed a long-lived asset recoverability test as of March 27, 2020, the results of which indicated no impairment. |
Goodwill | Goodwill is the excess of the acquisition cost of businesses over the fair value of identifiable net assets acquired in accordance with ASC 350, “Intangibles-Goodwill and Other.” The Company’s maintains four reporting units. The Company evaluates the recoverability of goodwill at each of its reporting units annually in the fourth quarter, or more frequently when circumstances indicate an impairment may have occurred. A goodwill impairment loss, if any, would be recognized for the amount by which a reporting unit’s carrying value exceeded its fair value. The Company has the option to evaluate goodwill impairment using a qualitative or quantitative analysis. The adverse impact to the Company’s customer base and market capitalization at the onset of the Pandemic were considered triggering events during the first quarter of fiscal 2020, and accordingly, the Company performed an interim goodwill impairment test as of March 27, 2020, the results of which indicated no impairment. For its annual goodwill impairment test performed during the fourth quarter of fiscal 2020, the Company tested goodwill for impairment using a quantitative analysis. The Company estimated the fair value of its reporting units using an income approach and determined the fair value of its reporting units substantially exceeded their respective carry values. The Company’s income approach incorporates the use of a discounted cash flow methodology that involves many management assumptions that are based upon future growth projections. Assumptions include estimates of future revenue based upon budget projections and growth rates. The Company develops estimates of future levels of gross and operating profits and projected capital expenditures. This methodology includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. The Company also performed a reconciliation of its market capitalization and the estimate of the aggregate fair value of its reporting units, including consideration of a control premium. For the fiscal years ended December 30, 2022 and December 24, 2021, the Company assessed the recoverability of goodwill using a qualitative analysis and determined that it is more likely than not that the fair value of its reporting units exceeded their respective carry values. The qualitative analysis considered various factors including macroeconomic conditions, market conditions, industry trends, cost factors and financial performance, among others.
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Employee Benefit Programs | The Company sponsors a defined contribution plan covering substantially all full-time employees (the “401(k) Plan”). |
Income Taxes | The Company accounts for income taxes in accordance with ASC 740, “Income Taxes.” Deferred tax assets or liabilities are recorded to reflect the future tax consequences of temporary differences between the financial reporting basis of assets and liabilities and their tax basis at each year-end. These amounts are adjusted, as appropriate, to reflect enacted changes in tax rates expected to be in effect when the temporary differences reverse. The Company estimates its ability to recover deferred tax assets within the jurisdiction from which they arise. This evaluation considers several factors, including results of recent operations, future taxable income, scheduled reversal of deferred tax liabilities, and tax planning strategies.ASC 740, “Income Taxes” established a single model to address accounting for uncertain tax positions and clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. The Company evaluates uncertain tax positions, if any, by determining if it is more likely than not to be sustained upon examination by the tax authorities. The Company records uncertain tax positions when it is more likely than not that such liabilities have been incurred. The Company, when required, will accrue interest and penalties related to income tax matters in income tax expense. The Company releases disproportionate tax effects from accumulated other comprehensive income as individual items are liquidated. |
Commitments and Contingencies | The Company is subject to various claims and contingencies related to lawsuits, taxes and environmental matters, as well as commitments under contractual and other commercial obligations. The Company recognizes liabilities for contingencies and commitments when a loss is probable and can be reasonably estimated. |
Contingent Earn-out Liabilities | The Company accounts for contingent consideration relating to business combinations as a liability and an increase to goodwill at the date of the acquisition and continually remeasures the liability at each balance sheet date by recording changes in the fair value through the consolidated statements of operations. The Company determines the fair value of contingent consideration based on future operating projections under various potential scenarios, including the use of Monte Carlo simulations, and weighs the probability of these outcomes. The ultimate settlement of contingent earn-out liabilities relating to business combinations may be for amounts which are materially different from the amounts initially recorded and may cause volatility in the Company’s results of operations. |
Stock-Based Compensation | The Company measures stock-based compensation for stock awards classified as equity at the grant date based on the fair value of the award. Restricted stock awards (“RSAs”) and performance share units are valued based on the fair value of the stock on the grant date. The related compensation expense is recognized over the service period on a straight-line basis and reduced by forfeitures when they occur. Stock-based compensation expense is presented within selling, general and administrative expenses on the Company’s consolidated statements of operations. Compensation expense on performance share units reflects the estimated probable outcome at the end of the performance period. The fair value of stock options and RSAs with market conditions is determined based on a Monte Carlo simulation in order to simulate a range of possible future stock prices for the Company’s common stock. For awards subject to graded vesting, the Company ensures that the compensation expense recognized is at least equal to the vested portion of the award. |
Self-insurance Reserves | The Company maintains a self-insured group medical program. The program contains individual stop loss thresholds of $300 per incident and aggregate stop loss thresholds based upon the average number of employees enrolled in the program throughout the year. The amount in excess of the self-insured levels is fully insured by third party insurers. Liabilities associated with this program are estimated in part by considering historical claims experience and medical cost trends. Projections of future loss expenses are inherently uncertain because of the random nature of insurance claims occurrences and could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. |
Assets and Liabilities Measured at Fair Value | The Company accounts for certain assets and liabilities at fair value. The Company categorizes each of its fair value measurements in one of the following three levels based on the lowest level input that is significant to the fair value measurement in its entirety: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities include the following: a)quoted prices for similar assets in active markets; b)quoted prices for identical or similar assets in inactive markets; c)inputs other than quoted prices that are observable for the asset; and d)inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset. Level 3 - Inputs to the valuation methodology are unobservable (i.e., supported by little or no market activity) and significant to the fair value measure.
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Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disaggregation of revenue | The following table presents the Company’s net sales disaggregated by principal product category:
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Net Income (Loss) per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net income (loss) per share | The following table sets forth the computation of basic and diluted net income (loss) per common share:
Reconciliation of net income (loss) per common share:
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Schedule of dilutive securities that have been excluded from the calculation of diluted net (loss) income per common share | Potentially dilutive securities that have been excluded from the calculation of diluted net income (loss) per common share because the effect is anti-dilutive are as follows:
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in level 3 contingent consideration liability | The following table presents the changes in Level 3 contingent earn-out liabilities:
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Schedule of carrying value and fair value of the company's convertible subordinated notes | The following table presents the carrying value and fair value of the Company’s convertible notes (more fully described in Note 9). The fair value of the Company’s 2028 Convertible Senior Notes was based on Level 1 inputs. In estimating the fair value of its 2024 Convertible Senior Notes and Convertible Unsecured Note, the Company utilized Level 3 inputs including prevailing market interest rates to estimate the debt portion of the instrument and a Black Scholes valuation model to estimate the fair value of the conversion options. The Black Scholes model utilizes the market price of the Company’s common stock, estimates of the stock’s volatility and the prevailing risk free interest rate in calculating the fair value estimates.
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Acquisitions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of pro forma consolidated income statement information | The Company reflected net sales and loss before taxes in its consolidated statement of operations related to the acquisitions as follows:
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Schedule of assets acquired and liabilities assumed | The table below sets forth the purchase price allocation of these acquisitions:
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Property and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property and equipment | Property and equipment as of December 30, 2022 and December 24, 2021 consisted of the following:
The components of depreciation and amortization expense were as follows:
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Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | The changes in the carrying amount of goodwill are presented as follows:
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Schedule of other intangible assets | Other intangible assets as of December 30, 2022 and December 24, 2021 consisted of the following:
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Schedule of estimated future amortization expense | As of December 30, 2022, estimated amortization expense for other intangible assets for each of the next five fiscal years and thereafter is as follows:
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Debt Obligations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt obligations | Debt obligations as of December 30, 2022 and December 24, 2021 consisted of the following:
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Schedule of maturities of the company's debt | Maturities of the Company’s debt, excluding finance leases, for each of the next five years and thereafter at December 30, 2022 are as follows:
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Schedule of convertible senior notes | The net carry value of the Company’s convertible notes as of December 30, 2022 and December 24, 2021 was:
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Schedule of components of interest expense | The components of interest expense on the Company’convertible notes were as follows:
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Stockholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restricted stock activity | The following table reflects the activity of RSAs during the fiscal year ended December 30, 2022:
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Summary of stock option activity | The following table summarizes stock option activity during the fiscal year ended December 30, 2022:
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of lease expense | The components of net lease cost were as follows:
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Maturities of lease liabilities, operating leases | The maturities of the Company’s lease liabilities for each of the next five fiscal years and thereafter at December 30, 2022 were as follows:
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Maturities of lease liabilities, finance leases | The maturities of the Company’s lease liabilities for each of the next five fiscal years and thereafter at December 30, 2022 were as follows:
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Supplemental balance sheet information | Supplemental balance sheet information related to finance leases was as follows:
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Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of provision for income taxes | The provision for income taxes consists of the following:
In response to the Pandemic, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. Among other provisions it allows for the carryback of federal net operating losses generated in 2020 to five preceding years and a refundable Employee Retention Tax Credit (“ERTC”) to eligible employers. The Company’s fiscal 2020 income tax provision reflects the impact of an expected income tax refund receivable of $21,250 which is reflected in prepaid expenses and other current assets on the Company’s consolidated balance sheets as of December 30, 2022 and December 24, 2021, as a result of the five year carryback allowed under the CARES Act. During the second quarter of fiscal 2021, the Company recognized a receivable of $1,418 related to the ERTC which is presented within prepaid expenses and other current assets on the consolidated balance sheet and the related expense reduction is presented within selling, general and administrative expenses on the consolidated statements of operations. The IRS is experiencing significant processing delays driven by an increase in net operating loss carryback requests as a result of the CARES Act, along with other factors. As a result, the processing and expected receipt of the federal income tax refund receivable and ERTC receivable have been significantly delayed. The Company is currently working with IRS Taxpayer’s Advocate Services and consultants to resolve the processing issue. While progress has been made with the IRS and the Company expects to receive the refunds within one year, the exact timing of receipt is difficult to predict.
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Schedule of income tax reconciliation | Income tax expense (benefit) differed from amounts computed using the statutory federal income tax rate due to the following reasons:
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Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities at December 30, 2022 and December 24, 2021 consist of the following:
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Schedule of operating (loss) income before income taxes for foreign subsidiaries | The components of the Company’s operating income (loss) before income taxes consist of the following:
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Supplemental Disclosures of Cash Flow Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental disclosures of cash flow information |
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Valuation Reserves (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of allowance for doubtful accounts | The following tables summarize the activity in our valuation accounts during the fiscal years ended December 30, 2022, December 24, 2021 and December 25, 2020:
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Schedule of allowance for deferred tax assets |
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Operations and Basis of Presentation (Details) |
12 Months Ended |
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Dec. 30, 2022
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 1 |
Summary of Significant Accounting Policies - Narrative (Details) |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 25, 2021
USD ($)
|
Dec. 25, 2020
USD ($)
|
Dec. 30, 2022
USD ($)
unit
|
Dec. 24, 2021
USD ($)
|
Dec. 25, 2020
USD ($)
|
Dec. 27, 2019
USD ($)
|
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Disaggregation of Revenue [Line Items] | ||||||
Deferred revenues | $ 2,206,000 | $ 2,294,000 | ||||
Refund liability | (713,000) | (389,000) | ||||
Right to recover product | $ 442,000 | 238,000 | ||||
Contract costs, amortization period (in years) | 1 year | |||||
Cost of sales | $ 1,994,763,000 | 1,355,272,000 | $ 863,480,000 | |||
Purchase incentives | 30,805,000 | 20,296,000 | 12,678,000 | |||
Capitalized software costs, net of accumulated amortization | 11,805,000 | 14,780,000 | ||||
Unamortized costs of certain up-front costs | 448,000 | 460,000 | ||||
Unamortized costs if issuance of other debt instruments | 20,050,000 | 4,976,000 | ||||
Amortization of debt issuance costs | 1,290,000 | 2,299,000 | 3,426,000 | |||
Intangible asset impairment | $ 597,000 | $ 24,200,000 | $ 0 | 597,000 | 24,200,000 | |
Intangible asset impairment, net of tax | $ 433,000 | 17,545,000 | ||||
Number of reporting units | unit | 4 | |||||
Matching contribution under 401k plan | $ 1,714,000 | 683,000 | 720,000 | |||
Self-insurance stop loss threshold | 300,000 | |||||
Allowance for deferred tax assets | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Valuation allowances | $ 2,261,000 | 1,641,000 | 2,046,000 | 2,261,000 | $ 907,000 | |
Workers Compensation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Self insured retention amount per claim | 500,000 | |||||
Automobiles | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Self insured retention amount per claim | 500,000 | |||||
Equipment and Leasehold Improvements | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Asset impairment charges | 0 | 0 | 0 | |||
Food Processing | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Cost of sales | 40,185,000 | 28,374,000 | 18,682,000 | |||
Shipping and Handling | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Cost of sales | $ 143,435,000 | $ 98,697,000 | $ 78,152,000 | |||
Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Payment terms for contracts with customers (in days) | 14 days | |||||
Minimum | Software and Software Development Costs | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Useful life of computer software (in years) | 3 years | |||||
Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Payment terms for contracts with customers (in days) | 60 days | |||||
Maximum | Software and Software Development Costs | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Useful life of computer software (in years) | 7 years |
Summary of Significant Accounting Policies - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,613,399 | $ 1,745,757 | $ 1,111,631 |
Net Sales | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total net sales | 100.00% | 100.00% | 100.00% |
Center-of-the-Plate | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,126,227 | $ 877,060 | $ 533,813 |
Center-of-the-Plate | Net Sales | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total net sales | 43.10% | 50.20% | 48.00% |
Dry Goods | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 379,802 | $ 238,758 | $ 150,631 |
Dry Goods | Net Sales | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total net sales | 14.50% | 13.70% | 13.60% |
Pastry | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 286,035 | $ 178,352 | $ 135,913 |
Pastry | Net Sales | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total net sales | 10.90% | 10.20% | 12.20% |
Cheeses and Charcuterie | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 216,173 | $ 143,048 | $ 107,915 |
Cheeses and Charcuterie | Net Sales | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total net sales | 8.30% | 8.20% | 9.70% |
Produce | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 279,097 | $ 120,759 | $ 80,920 |
Produce | Net Sales | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total net sales | 10.70% | 6.90% | 7.30% |
Dairy and Eggs | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 153,334 | $ 79,512 | $ 38,172 |
Dairy and Eggs | Net Sales | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total net sales | 5.90% | 4.60% | 3.40% |
Oils and Vinegars | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 113,386 | $ 71,369 | $ 40,389 |
Oils and Vinegars | Net Sales | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total net sales | 4.30% | 4.10% | 3.60% |
Kitchen Supplies | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 59,345 | $ 36,899 | $ 23,878 |
Kitchen Supplies | Net Sales | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of total net sales | 2.30% | 2.10% | 2.20% |
Net Income (Loss) per Share - Schedule of earnings per share (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Net income (loss) per share: | |||
Basic (in dollars per share) | $ 0.75 | $ (0.13) | $ (2.46) |
Diluted (in dollars per share) | $ 0.73 | $ (0.13) | $ (2.46) |
Weighted average common shares: | |||
Basic (in shares) | 37,094,220 | 36,744,304 | 33,716,157 |
Diluted (in shares) | 38,742,328 | 36,744,304 | 33,716,157 |
Net Income (Loss) per Share - Schedule of reconciliation of earnings per share (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | |||
Net income (loss) | $ 27,750 | $ (4,923) | $ (82,903) |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | |||
Interest on convertible notes, net of tax | 580 | 0 | 0 |
Adjusted net income (loss) | $ 28,330 | $ (4,923) | $ (82,903) |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Weighted average basic common shares outstanding (in shares) | 37,094,220 | 36,744,304 | 33,716,157 |
Dilutive effect of unvested common shares (in shares) | 638,293 | 0 | 0 |
Dilutive effect of stock options and warrants (in shares) | 66,719 | 0 | 0 |
Dilutive effect of convertible notes (in shares) | 943,096 | 0 | 0 |
Weighted average diluted common shares outstanding (in shares) | 38,742,328 | 36,744,304 | 33,716,157 |
Net Income (Loss) per Share - Schedule of dilutive securities that have been excluded from the calculation of diluted net income (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Restricted share awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares (in shares) | 906 | 306,084 | 505,568 |
Stock options and warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares (in shares) | 0 | 139,198 | 115,639 |
Convertible notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares (in shares) | 392,732 | 4,410,639 | 3,484,788 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 24, 2021 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Long-term liability value | $ 10,483 | $ 3,252 |
Fair Value Measurements - Summary of Changes in Level 3 Contingent Consideration Liability (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning | $ 6,877 | $ 2,756 |
Acquisition value | 8,700 | 5,500 |
Cash payments | (6,788) | (83) |
Changes in fair value | 8,505 | (1,296) |
Balance at ending | $ 17,294 | $ 6,877 |
Fair Value Measurements - Summary of the Carrying Value and Fair Value of Convertible Subordinated Notes (Details) - Fair Value Inputs Level 3 - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 24, 2021 |
---|---|---|
Convertible Debt | Carrying Value | 2028 Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Senior Notes | $ 287,500 | $ 0 |
Convertible Unsecured Note | 287,500 | 0 |
Convertible Debt | Carrying Value | 2024 Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Senior Notes | 41,684 | 200,000 |
Convertible Unsecured Note | 41,684 | 200,000 |
Convertible Debt | Fair Value | 2028 Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Senior Notes | 292,531 | 0 |
Convertible Unsecured Note | 292,531 | 0 |
Convertible Debt | Fair Value | 2024 Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Senior Notes | 43,723 | 206,182 |
Convertible Unsecured Note | 43,723 | 206,182 |
Unsecured Debt | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Senior Notes | 4,000 | 4,000 |
Convertible Unsecured Note | 4,000 | 4,000 |
Unsecured Debt | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Senior Notes | 4,345 | 4,102 |
Convertible Unsecured Note | $ 4,345 | $ 4,102 |
Acquisitions - Narrative (Details) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Nov. 01, 2022
USD ($)
|
Dec. 28, 2021
USD ($)
|
Dec. 30, 2022
USD ($)
employee
|
Dec. 24, 2021
USD ($)
|
Dec. 25, 2020
USD ($)
|
|
Business Acquisition [Line Items] | |||||
Professional fees | $ 4,357 | $ 450 | $ 435 | ||
Chef Middle East | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 108,749 | ||||
Estimated fair value of contingent earn-out liability | $ 10,000 | ||||
Estimated fair value of contingent earn-out liability, term | 2 years | ||||
Estimated fair value of contingent earn-out liability | $ 7,500 | $ 7,500 | |||
Capital Seaboard | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 31,036 | ||||
Cash amount paid | 28,000 | ||||
Common stock warrants issued for acquisition | 1,701 | ||||
Net working capital adjustment | $ 1,335 | ||||
Capital Seaboard | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Useful life of computer software (in years) | 15 years | ||||
Capital Seaboard | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Useful life of computer software (in years) | 5 years | ||||
Other Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 55,300 | ||||
Estimated fair value of contingent earn-out liability | 2,000 | ||||
Cash amount paid | $ 55,300 | ||||
Number of acquisitions | employee | 6 |
Acquisitions - Pro Forma Consolidated Income Statement Information (Details) - Other Acquisitions - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
|
Business Acquisition [Line Items] | ||
Net sales | $ 245,670 | |
Loss before income taxes | 15,377 | |
Net sales | 2,843,207 | $ 2,211,208 |
Income before income taxes | $ 56,293 | $ 4,146 |
Acquisitions - Summary of Cash Price for Acquisition (Details) - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 28, 2021 |
Dec. 24, 2021 |
Dec. 25, 2020 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 287,120 | $ 221,775 | $ 214,864 | |
Chef Middle East | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 84,811 | |||
Goodwill | 23,814 | |||
Fixed assets | 16,953 | |||
Other assets | 941 | |||
Deferred tax liability | (3,635) | |||
Right-of-use assets | 5,321 | |||
Lease liabilities | (5,321) | |||
Current liabilities | (44,155) | |||
Earn-out liability | (7,500) | |||
Total consideration | 108,749 | |||
Chef Middle East | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 25,800 | |||
Chef Middle East | Trademarks | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 11,400 | |||
Chef Middle East | Non-compete agreements | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 320 | |||
Capital Seaboard | ||||
Business Acquisition [Line Items] | ||||
Current assets | 10,130 | |||
Goodwill | 8,334 | |||
Fixed assets | 9,552 | |||
Other assets | 122 | |||
Deferred tax liability | 0 | |||
Right-of-use assets | 16,427 | |||
Lease liabilities | (16,427) | |||
Current liabilities | (6,632) | |||
Earn-out liability | 0 | |||
Total consideration | 31,036 | |||
Capital Seaboard | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 7,250 | |||
Capital Seaboard | Trademarks | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 2,280 | |||
Capital Seaboard | Non-compete agreements | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | $ 0 | |||
Other Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Current assets | 14,743 | |||
Goodwill | 34,101 | |||
Fixed assets | 701 | |||
Other assets | 17 | |||
Deferred tax liability | (2,365) | |||
Right-of-use assets | 1,491 | |||
Lease liabilities | (1,491) | |||
Current liabilities | (8,397) | |||
Earn-out liability | (1,200) | |||
Total consideration | 55,300 | |||
Other Acquisitions | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 16,700 | |||
Other Acquisitions | Trademarks | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 1,000 | |||
Other Acquisitions | Non-compete agreements | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | $ 0 |
Inventories - Narrative (Details) - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 24, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Reserves for shrinkage, excess and obsolescence | $ 9,198 | $ 8,312 |
Property and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
|
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 304,741 | $ 233,478 |
Less: accumulated depreciation and amortization | (119,013) | (99,856) |
Equipment, leasehold improvements and software, net | 185,728 | 133,622 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 5,542 | 5,020 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 20 years | |
Equipment, leasehold improvements and software, gross | $ 39,893 | 18,406 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | 32,107 | 28,099 |
Computers, data processing and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | 18,475 | 15,480 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | 42,609 | 39,799 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 94,245 | 69,105 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Equipment, leasehold improvements and software, gross | $ 3,825 | 3,582 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | 31,462 | 29,632 |
Construction-in-process | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, leasehold improvements and software, gross | $ 36,583 | $ 24,355 |
Minimum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 5 years | |
Minimum | Computers, data processing and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Minimum | Software | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Minimum | Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Minimum | Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 5 years | |
Maximum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years | |
Maximum | Computers, data processing and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Maximum | Software | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Maximum | Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 40 years | |
Maximum | Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years |
Property and Equipment - Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Property, Plant and Equipment [Line Items] | |||
Equipment, leasehold improvements and software, gross | $ 304,741,000 | $ 233,478,000 | |
Book value of equipment under finance leases | 185,728,000 | 133,622,000 | |
Capitalized interest expense | 0 | 0 | $ 0 |
Assets held under finance leases | |||
Property, Plant and Equipment [Line Items] | |||
Book value of equipment under finance leases | 11,579,000 | 10,874,000 | |
Construction-in-process | |||
Property, Plant and Equipment [Line Items] | |||
Equipment, leasehold improvements and software, gross | $ 36,583,000 | $ 24,355,000 |
Property and Equipment - Depreciation and Amortization (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 24,332 | $ 21,998 | $ 19,774 |
Software amortization | 24,332 | 21,998 | 19,774 |
Excluding assets held under finance leases | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 18,572 | 15,918 | 14,984 |
Software amortization | 18,572 | 15,918 | 14,984 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 5,760 | 6,080 | 4,790 |
Software amortization | $ 5,760 | $ 6,080 | $ 4,790 |
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 221,775 | $ 214,864 |
Goodwill adjustments | (792) | |
Acquisitions | 66,249 | 6,845 |
Foreign currency translation | (112) | 66 |
Ending balance | $ 287,120 | $ 221,775 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 25, 2021 |
Dec. 25, 2020 |
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Intangible asset impairment | $ 597 | $ 24,200 | $ 0 | $ 597 | $ 24,200 |
Intangible asset impairment, net of tax | $ 433 | $ 17,545 | |||
Amortization expense | $ 13,913 | $ 12,967 | $ 13,502 |
Goodwill and Other Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 265,644 | $ 200,771 |
Accumulated Amortization | (109,941) | (96,028) |
Net Amount | $ 155,703 | $ 104,743 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (in months) | 232 months | 120 months |
Gross Carrying Amount | $ 205,608 | $ 155,678 |
Accumulated Amortization | (85,447) | (74,644) |
Net Amount | $ 120,161 | $ 81,034 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (in months) | 73 months | 26 months |
Gross Carrying Amount | $ 8,899 | $ 8,579 |
Accumulated Amortization | (8,293) | (8,018) |
Net Amount | $ 606 | $ 561 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (in months) | 250 months | 179 months |
Gross Carrying Amount | $ 51,137 | $ 36,514 |
Accumulated Amortization | (16,201) | (13,366) |
Net Amount | $ 34,936 | $ 23,148 |
Goodwill and Other Intangible Assets - Future amortization (Details) $ in Thousands |
Dec. 30, 2022
USD ($)
|
---|---|
Estimated amortization in fiscal year: | |
2023 | $ 16,664 |
2024 | 15,811 |
2025 | 15,388 |
2026 | 15,286 |
2027 | 14,706 |
Thereafter | 77,848 |
Total | $ 155,703 |
Debt Obligations - Schedule of Debt Obligations (Details) - USD ($) |
Dec. 30, 2022 |
Aug. 23, 2022 |
Dec. 24, 2021 |
Feb. 25, 2019 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Finance leases | $ 11,331,000 | $ 11,602,000 | ||
Unamortized deferred costs and premium | (20,050,000) | (4,976,000) | ||
Total debt obligations | 665,932,000 | 399,301,000 | ||
Less: current installments | (12,428,000) | (5,141,000) | ||
Total long-term debt | $ 653,504,000 | 394,160,000 | ||
Finance leases, weighted-average discount rate | 4.63% | |||
Asset-based loan facility | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 4.50% | |||
Convertible unsecured note | ||||
Debt Instrument [Line Items] | ||||
Convertible unsecured debt, interest rate | 5.00% | |||
Other revolving credit facilities | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 7.72% | |||
Other revolving credit facilities | Credit facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 2,217,000 | 0 | ||
Credit facility | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 7.93% | |||
Credit facility | Senior secured term loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 299,250,000 | $ 300,000,000 | 168,675,000 | |
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 333,184,000 | 204,000,000 | ||
Unamortized deferred costs and premium | (7,249,000) | (2,686,000) | ||
Convertible Debt | 2024 Convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 41,684,000 | 200,000,000 | ||
Unamortized deferred costs and premium | $ (373,000) | (2,686,000) | ||
Effective interest rate | 2.32% | |||
Convertible Debt | Convertible unsecured note | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 4,000,000 | 4,000,000 | $ 4,000,000 | |
Unamortized deferred costs and premium | 0 | 0 | ||
Convertible Debt | 2028 Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 287,500,000 | 0 | ||
Unamortized deferred costs and premium | $ (6,876,000) | 0 | ||
Effective interest rate | 2.78% | |||
Asset-based loan facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 40,000,000 | 20,000,000 | ||
Convertible unsecured note | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 4,000,000 | $ 4,000,000 |
Debt Obligations - Schedule of Maturities of the Company's Debt (Details) $ in Thousands |
Dec. 30, 2022
USD ($)
|
---|---|
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | |
2023 | $ 9,217 |
2024 | 44,684 |
2025 | 3,000 |
2026 | 3,000 |
2027 | 3,000 |
Thereafter | 611,750 |
Long-Term Debt, Total | $ 674,651 |
Debt Obligations - Senior Secured Term Loan Credit Facility (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Aug. 23, 2022 |
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Debt Instrument [Line Items] | ||||
Loss on debt extinguishment | $ (14,287) | $ 0 | $ 0 | |
Payments of debt financing costs | 19,039 | 1,450 | $ 856 | |
Credit facility | Senior secured term loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 300,000 | $ 299,250 | $ 168,675 | |
Debt instrument, springing maturity, maximum maturity date, period prior to scheduled maturity date | 181 days | |||
Principal amount | $ 40,000 | |||
Basis points | 3.75% | |||
Loss on debt extinguishment | $ (142) | |||
Payments of debt financing costs | 10,852 | |||
Debt transaction costs | 4,498 | |||
Credit facility | Senior Secured Term Loans 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 167,391 | |||
Debt instrument, incremental borrowing, amount | $ 132,609 | |||
Credit facility | 2025 Tranche | ||||
Debt Instrument [Line Items] | ||||
Scheduled Principal Payments (as a percent) | 0.25% |
Debt Obligations - Asset-Based Loan Facility (Details) - USD ($) |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 11, 2022 |
Dec. 30, 2022 |
Aug. 23, 2022 |
Dec. 24, 2021 |
Mar. 01, 2021 |
Nov. 22, 2019 |
Jun. 29, 2018 |
|
Debt Instrument [Line Items] | |||||||
Deferred financing fees | $ 20,050,000 | $ 4,976,000 | |||||
Asset-based loan facility | ABL Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum debt borrowing capacity | $ 200,000,000 | $ 150,000,000 | |||||
Potential principal amount increase | 25,000,000 | ||||||
Debt instrument, springing maturity, maximum maturity date, period prior to scheduled maturity date | 90 days | ||||||
Deferred financing fees | 406,000 | ||||||
Minimum borrowing base | $ 14,000,000 | ||||||
Minimum borrowing base, percentage | 10.00% | ||||||
Minimum consolidated fixed charge coverage ratio | 1 | ||||||
Amounts reserved for issuance of letters of credit | $ 24,173,000 | ||||||
Line of credit facility, current borrowing capacity | $ 135,827,000 | ||||||
Asset-based loan facility | Senior secured term loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, springing maturity, maximum maturity date, period prior to scheduled maturity date | 181 days | ||||||
Principal amount | $ 40,000,000 | ||||||
Convertible Debt | 2024 Convertible senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 50,000,000 | $ 150,000,000 |
Debt Obligations - Convertible Senior Notes (Details) - USD ($) |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 13, 2022 |
Nov. 22, 2019 |
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
Mar. 01, 2021 |
|
Debt Instrument [Line Items] | ||||||
Loss on debt extinguishment | $ (14,287,000) | $ 0 | $ 0 | |||
Payments under revolving credit line | 20,000,000 | 20,000,000 | 60,000,000 | |||
Unamortized costs of certain up-front costs | 448,000 | 460,000 | ||||
Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Loss on debt extinguishment | $ (14,145,000) | $ 0 | $ 0 | |||
Convertible Debt | 2024 Convertible senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 150,000,000 | $ 50,000,000 | ||||
Interest rate | 1.875% | 1.875% | ||||
Debt issuance costs | $ 1,350,000 | |||||
Conversion price (in dollars per share) | $ 44.20 | |||||
Redemption price, percentage of principal amount (as a percent) | 100.00% | |||||
Unamortized costs of certain up-front costs | $ 5,082,000 | |||||
Convertible Debt | 2028 Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 287,500,000 | |||||
Interest rate | 2.375% | |||||
Repayment of outstanding borrowings | $ 158,316,000 | |||||
Repayments of convertible debt | $ 159,709,000 | |||||
Public offering (in shares) | 324,066 | |||||
Loss on debt extinguishment | $ (14,145,000) | |||||
Debt issuance costs | $ 6,971,000 | |||||
Conversion price (in dollars per share) | $ 44.27 | |||||
Redemption price, percentage of principal amount (as a percent) | 100.00% | |||||
Asset-based loan facility | ABL Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Payments under revolving credit line | 43,225,000 | |||||
Senior secured term loan | Senior Secured Term Loans, 2022 Tranche | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of outstanding borrowings | $ 31,166,000 |
Debt Obligations - Convertible Unsecured Debt (Details) - USD ($) $ / shares in Units, $ in Thousands |
Feb. 25, 2019 |
Dec. 30, 2022 |
Dec. 24, 2021 |
---|---|---|---|
Convertible unsecured note | |||
Debt Instrument [Line Items] | |||
Interest rate, after two-year anniversary | 5.00% | ||
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 333,184 | $ 204,000 | |
Convertible Debt | Convertible unsecured note | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 4,000 | $ 4,000 | $ 4,000 |
Interest rate | 4.50% | ||
Earliest date term (in years) | 2 years | ||
Term after issuance to redeem or convert (in months) | 18 months | ||
Conversion price (in dollars per share) | $ 43.93 |
Debt Obligations - Schedule of Convertible Senior Notes (Details) - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 24, 2021 |
Feb. 25, 2019 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Unamortized Deferred Costs and Premium | $ (20,050) | $ (4,976) | |
Long-Term Debt, Total | 674,651 | ||
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Long-Term Debt, Gross | 333,184 | 204,000 | |
Unamortized Deferred Costs and Premium | (7,249) | (2,686) | |
Long-Term Debt, Total | 325,935 | 201,314 | |
Convertible Debt | 2028 Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-Term Debt, Gross | 287,500 | 0 | |
Unamortized Deferred Costs and Premium | (6,876) | 0 | |
Long-Term Debt, Total | 280,624 | 0 | |
Convertible Debt | 2024 Convertible senior notes | |||
Debt Instrument [Line Items] | |||
Long-Term Debt, Gross | 41,684 | 200,000 | |
Unamortized Deferred Costs and Premium | (373) | (2,686) | |
Long-Term Debt, Total | 41,311 | 197,314 | |
Convertible Debt | Convertible unsecured note | |||
Debt Instrument [Line Items] | |||
Long-Term Debt, Gross | 4,000 | 4,000 | $ 4,000 |
Unamortized Deferred Costs and Premium | 0 | 0 | |
Long-Term Debt, Total | $ 4,000 | $ 4,000 |
Debt Obligations - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Debt Instrument [Line Items] | |||
Loss on debt extinguishment | $ 14,287 | $ 0 | $ 0 |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Coupon interest | 4,272 | 3,763 | 2,993 |
Amortization of deferred costs and premium | 932 | 913 | 1,000 |
Loss on debt extinguishment | 14,145 | 0 | 0 |
Total interest | $ 19,349 | $ 4,676 | $ 3,993 |
Stockholders' Equity - Narrative (Details) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 02, 2020
USD ($)
|
May 14, 2020
USD ($)
$ / shares
shares
|
Jun. 24, 2022
USD ($)
|
Mar. 25, 2022
USD ($)
$ / shares
shares
|
Dec. 25, 2020
USD ($)
employee
|
Dec. 30, 2022
USD ($)
shares
|
Dec. 24, 2021
USD ($)
|
Dec. 25, 2020
USD ($)
|
Jun. 25, 2021
$ / shares
shares
|
Mar. 22, 2020
shares
|
May 17, 2019
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Warrants issued for acquisitions | $ 1,120,000 | $ 1,701,000 | |||||||||
Number of shares callable by warrants (in shares) | shares | 150,000 | 150,000 | |||||||||
Exercise price of right (in dollars per share) | $ / shares | $ 31.55 | $ 31.96 | |||||||||
Weighted average remaining term (in years) | 10 years | ||||||||||
Number of shares available for grant (in shares) | shares | 2,046,252 | 2,600,000 | |||||||||
Stock compensation expense | $ 13,602,000 | $ 11,479,000 | $ 9,292,000 | ||||||||
Tax benefit for stock compensation | 22,000 | 49,000 | 133,000 | ||||||||
Number of employees affected by award plan modifications | employee | 17 | ||||||||||
Incremental stock compensation expense resulting from award plan modifications | $ 1,999,000 | ||||||||||
Compensation expense capitalized | $ 0 | ||||||||||
Series A Preferred Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares that can be purchased by each right (in shares) | shares | 0.001 | ||||||||||
Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Weighted average remaining term (in years) | 1 year 10 months 24 days | ||||||||||
Fair value of RSAs vested | $ 8,719,000 | 7,848,000 | 8,109,000 | ||||||||
Total unrecognized compensation cost | $ 20,080,000 | ||||||||||
Time and Performance Based Grants | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period (in years) | 4 years | ||||||||||
Time-Based Restricted Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Weighted average remaining term (in years) | 2 years | ||||||||||
Total unrecognized compensation cost | $ 9,281,000 | ||||||||||
Performance-Based Restricted Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Weighted average remaining term (in years) | 1 year 9 months 18 days | ||||||||||
Vesting period (in years) | 3 years | ||||||||||
Total unrecognized compensation cost | $ 10,799,000 | ||||||||||
Stock options and warrants | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period (in years) | 4 years | ||||||||||
Stock or unit option plan expense | $ 0 | $ 0 | $ 362,000 | ||||||||
Fair value of awards | $ 362,000 | ||||||||||
Public Stock Offering | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares sold in offering (in shares) | shares | 5,769,231 | ||||||||||
Offering price per share (in dollars per share) | $ / shares | $ 13.00 | ||||||||||
Aggregate net proceeds from stock offering | $ 74,691,000 | ||||||||||
Over-Allotment Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares sold in offering (in shares) | shares | 865,384 | ||||||||||
Offering price per share (in dollars per share) | $ / shares | $ 13.00 | ||||||||||
Aggregate net proceeds from stock offering | $ 11,250,000 |
Stockholders' Equity - Schedule of restricted stock activity (Details) |
12 Months Ended |
---|---|
Dec. 30, 2022
$ / shares
shares
| |
Time-based | |
Shares | |
Unvested at beginning (in shares) | shares | 617,996 |
Granted (in shares) | shares | 187,153 |
Vested (in shares) | shares | (323,871) |
Forfeited (in shares) | shares | (16,306) |
Unvested at ending (in shares) | shares | 464,972 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning (in dollars per share) | $ / shares | $ 28.33 |
Granted (in dollars per share) | $ / shares | 33.69 |
Vested (in dollars per share) | $ / shares | 26.49 |
Forfeited (in dollars per share) | $ / shares | 29.20 |
Unvested at ending (in dollars per share) | $ / shares | $ 31.74 |
Performance-based | |
Shares | |
Unvested at beginning (in shares) | shares | 187,437 |
Granted (in shares) | shares | 169,408 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (21,420) |
Unvested at ending (in shares) | shares | 335,425 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning (in dollars per share) | $ / shares | $ 32.04 |
Granted (in dollars per share) | $ / shares | 32.47 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 32.14 |
Unvested at ending (in dollars per share) | $ / shares | $ 32.25 |
Market-based | |
Shares | |
Unvested at beginning (in shares) | shares | 185,129 |
Granted (in shares) | shares | 169,408 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (21,423) |
Unvested at ending (in shares) | shares | 333,114 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning (in dollars per share) | $ / shares | $ 31.44 |
Granted (in dollars per share) | $ / shares | 29.13 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 30.82 |
Unvested at ending (in dollars per share) | $ / shares | $ 30.30 |
Stockholders' Equity - Summary of stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
|
Shares | ||
Outstanding (in shares) | 115,639 | |
Exercised (in shares) | (3,407) | |
Outstanding (in shares) | 112,232 | 115,639 |
Exercisable (in shares) | 112,232 | |
Weighted Average Exercise Price | ||
Outstanding (in usd per share) | $ 20.23 | |
Exercised (in usd per share) | 20.23 | |
Outstanding (in usd per share) | 20.23 | $ 20.23 |
Exercisable (in usd per share) | $ 20.23 | |
Aggregate Intrinsic Value | ||
Outstanding | $ 1,465 | $ 2,051 |
Exercisable | $ 1,465 | |
Weighted Average Remaining Contractual Term (in years) | ||
Outstanding | 3 years 2 months 12 days | 6 years 2 months 12 days |
Exercisable | 3 years 2 months 12 days |
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Leases [Abstract] | |||
Operating lease cost | $ 31,346 | $ 26,531 | $ 27,521 |
Finance lease cost: | |||
Amortization of right-of-use asset | 3,715 | 4,667 | 4,166 |
Interest expense on lease liabilities | 442 | 555 | 552 |
Total finance lease cost | 4,157 | 5,222 | 4,718 |
Short-term lease cost | 5,481 | 3,491 | 2,475 |
Variable lease cost | 7,715 | 3,331 | 1,990 |
Sublease income | (1,344) | (430) | (96) |
Total lease cost, net | $ 47,355 | $ 38,145 | $ 36,608 |
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 24, 2021 |
---|---|---|
Operating Leases | ||
2023 | $ 30,751 | |
2024 | 25,888 | |
2025 | 21,524 | |
2026 | 18,435 | |
2027 | 17,682 | |
Thereafter | 134,795 | |
Total | 249,075 | |
Less imputed interest | (78,241) | |
Present value of lease obligations | 170,834 | |
Finance Leases | ||
2023 | 3,637 | |
2024 | 3,049 | |
2025 | 2,491 | |
2026 | 1,693 | |
2027 | 607 | |
Thereafter | 663 | |
Total | 12,140 | |
Less imputed interest | (809) | |
Present value of lease obligations | 11,331 | $ 11,602 |
Real Estate | Third Party Real Estate | ||
Operating Leases | ||
2023 | 22,597 | |
2024 | 20,773 | |
2025 | 18,282 | |
2026 | 16,889 | |
2027 | 16,655 | |
Thereafter | 134,768 | |
Total | 229,964 | |
Real Estate | Related Party Real Estate | ||
Operating Leases | ||
2023 | 387 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total | 387 | |
Vehicles and Equipment | ||
Operating Leases | ||
2023 | 7,767 | |
2024 | 5,115 | |
2025 | 3,242 | |
2026 | 1,546 | |
2027 | 1,027 | |
Thereafter | 27 | |
Total | $ 18,724 |
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 24, 2021 |
---|---|---|
Leases [Abstract] | ||
Short-term finance lease liabilities | $ 3,211 | $ 3,429 |
Long-term finance lease liabilities | $ 8,120 | $ 8,173 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt, net of current portion | Long-term debt, net of current portion |
Leases - Additional Information (Details) $ in Thousands |
Dec. 30, 2022
USD ($)
|
---|---|
Leases [Abstract] | |
Operating leases, weighted-average lease term (in years) | 11 years |
Finance leases, weighted-average lease term (in years) | 4 years |
Operating leases, weighted-average discount rate | 6.70% |
Finance leases, weighted-average discount rate | 4.63% |
Lessee, operating lease, not yet commenced, term of contract (in years) | 14 years |
Lease not yet commenced, contractually obligated payments | $ 44,593 |
Income Taxes - Schedule of operating (loss) income before income taxes for foreign subsidiaries (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Domestic | $ 40,428 | $ (4,356) | $ (119,375) |
Foreign | 1,461 | (2,420) | (4,231) |
Total | $ 41,889 | $ (6,776) | $ (123,606) |
Income Taxes - Schedule of provision of income taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Current income tax expense (benefit): | |||
Federal | $ 1,665 | $ (285) | $ (21,877) |
Foreign | 208 | 0 | 0 |
State | 2,665 | 277 | (408) |
Total current income tax expense (benefit) | 4,538 | (8) | (22,285) |
Deferred income tax expense (benefit): | |||
Federal | 9,571 | (2,002) | (10,740) |
Foreign | (4) | (22) | 50 |
State | 34 | 179 | (7,728) |
Total deferred income tax expense (benefit) | 9,601 | (1,845) | (18,418) |
Total income tax expense (benefit) | $ 14,139 | $ (1,853) | $ (40,703) |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
Dec. 30, 2022 |
Jun. 24, 2022 |
Dec. 24, 2021 |
---|---|---|---|
Operating Loss Carryforwards [Line Items] | |||
CARES Act, Income tax refund receivable | $ 21,250 | $ 21,250 | |
Deferred tax assets, valuation allowance | 1,641 | 2,046 | |
Charitable contribution carryforward | 2,569 | $ 3,865 | |
Canada Revenue Agency | |||
Operating Loss Carryforwards [Line Items] | |||
Net loss carryforwards | 1,770 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net loss carryforwards | $ 3,604 | ||
CARES Act | |||
Operating Loss Carryforwards [Line Items] | |||
Receivable related to the ETRC | $ (1,418) |
Income Taxes - Schedule of income tax reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Statutory U.S. Federal tax | $ 8,797 | $ (1,423) | $ (25,957) |
Differences due to: | |||
State and local taxes, net of federal benefit | 3,251 | (396) | (6,414) |
Change in valuation allowance | (405) | (215) | 1,354 |
Foreign rate differential | (560) | 0 | 0 |
Loss on debt extinguishment | 2,982 | 0 | 0 |
Acquisition costs | 472 | 0 | 0 |
Federal NOL rate differential | 0 | 0 | (5,212) |
Stock compensation | (170) | (361) | (102) |
Other | (228) | 542 | (4,372) |
Total income tax expense (benefit) | $ 14,139 | $ (1,853) | $ (40,703) |
Income Taxes - Schedule of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 24, 2021 |
---|---|---|
Deferred tax assets: | ||
Receivables and inventory | $ 10,574 | $ 9,425 |
Self-insurance reserves | 2,846 | 2,211 |
Net operating loss carryforwards | 5,374 | 15,177 |
Interest expense carryforward | 7,671 | 0 |
Stock compensation | 4,629 | 3,246 |
Intangible assets | 2,796 | 5,210 |
Charitable contribution carryforward | 2,569 | 3,865 |
Operating lease liabilities | 44,495 | 39,335 |
Other | 527 | 3,072 |
Total deferred tax assets | 81,481 | 81,541 |
Deferred tax liabilities: | ||
Property & equipment | (15,602) | (7,808) |
Goodwill | (25,539) | (24,529) |
Intangible assets | (3,439) | 0 |
Prepaid expenses and other | (907) | (1,916) |
Operating lease right-of-use assets | (40,451) | (35,862) |
Total deferred tax liabilities | (85,938) | (70,115) |
Valuation allowance | (1,641) | (2,046) |
Total net deferred tax (liability) asset | $ (6,098) | |
Total net deferred tax (liability) asset | $ 9,380 |
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for income taxes, net of cash received | $ 4,275 | $ (230) | $ 308 |
Cash paid for interest | 27,225 | 15,387 | 18,182 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | 28,144 | 25,111 | 25,090 |
Operating cash flows from finance leases | 3,659 | 555 | 3,856 |
ROU assets obtained in exchange for lease liabilities: | |||
Operating leases | 49,643 | 32,741 | 7,201 |
Finance leases | 2,960 | 536 | 16,063 |
Non-cash investing and financing activities: | |||
Warrants issued for acquisition | 1,701 | 1,120 | 0 |
Conversion of debt into common stock | 11,375 | 0 | 0 |
Contingent earn-out liabilities for acquisitions | $ 8,700 | $ 5,500 | $ 3,464 |
Employee Benefit Plans - Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Postemployment Benefits [Abstract] | |||
Employers contribution to employees under 401k plan | 50.00% | ||
Maximum employees contribution under 401k plan | 6.00% | ||
Capped employers contribution, per associate | $ 2,500 | ||
Matching contribution under 401k plan begin vesting period (in years) | 1 year | ||
Matching contribution under 401k plan fully vested period (in years) | 5 years | ||
Matching contribution under 401k plan | $ 1,714,000 | $ 683,000 | $ 720,000 |
Related Parties (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Related Party Transactions [Abstract] | |||
Ownership interest in facilities owned by entities controlled by company's stockholders (as a percent) | 100.00% | ||
Expenses from transactions with related party | $ 493 | $ 493 | $ 488 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands |
Dec. 30, 2022 |
Dec. 24, 2021 |
---|---|---|
Other Commitments [Line Items] | ||
Percentage of employees represented by unions | 4.40% | |
Expiring in fiscal 2022 | ||
Other Commitments [Line Items] | ||
Percentage of employees represented by unions | 0.80% | |
Medical Program | ||
Other Commitments [Line Items] | ||
Self insurance reserve | $ 2,310 | $ 2,373 |
Automobiles | ||
Other Commitments [Line Items] | ||
Self insurance reserve | 3,830 | 3,980 |
Workers Compensation | ||
Other Commitments [Line Items] | ||
Self insurance reserve | $ 10,544 | $ 7,053 |
Valuation Reserves (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2022 |
Dec. 24, 2021 |
Dec. 25, 2020 |
|
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 20,260 | $ 24,027 | $ 8,846 |
Additions (Recoveries) Charged to Expense | 6,048 | (422) | 21,372 |
Deductions | (5,575) | (3,345) | (6,191) |
Balance at End of Period | 20,733 | 20,260 | 24,027 |
Allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 2,046 | 2,261 | 907 |
Additions (Recoveries) Charged to Expense | (405) | (215) | 1,354 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 1,641 | $ 2,046 | $ 2,261 |
Subsequent Events (Details) - Subsequent Event - Specialty Food And Produce Distributor $ in Thousands |
Jan. 23, 2023
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Payments for asset acquisition | $ 10 |
Asset acquisition, consideration transferred, contingent consideration | $ 2 |
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