10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 26, 2022

¨         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                 

Commission file number 0-14706.

INGLES MARKETS, INCORPORATED

(Exact name of registrant as specified in its charter)

North Carolina	56-0846267
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
P.O. Box 6676, Asheville NC	28816
(Address of principal executive offices)	(Zip Code)

(828) 669-2941

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, $0.05 par value per share	IMKTA	The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x    No ¨.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x    No ¨.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer x	Accelerated Filer ¨
Non-Accelerated Filer ¨	Smaller Reporting Company ¨
	Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x.

As of May 2, 2022, the Registrant had 14,355,235 shares of Class A Common Stock, $0.05 par value per share, outstanding and 4,639,141 shares of Class B Common Stock, $0.05 par value per share, outstanding.

‎

1

INGLES MARKETS, INCORPORATED

INDEX

	Page No.
Part I – Financial Information
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets as of March 26, 2022 and September 25, 2021	3
Condensed Consolidated Statements of Income and Comprehensive Income for the
Three Months Ended March 26, 2022 and March 27, 2021	4
Six Months Ended March 26, 2022 and March 27, 2021	5
Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three Months and Six Months Ended March 26, 2022 and March 27, 2021	6
Condensed Consolidated Statements of Cash Flows for the Six Months Ended March 26, 2022 and March 27, 2021	7
Notes to Unaudited Interim Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3. Quantitative and Qualitative Disclosures About Market Risk	22
Item 4. Controls and Procedures	22
Part II – Other Information
Item 6. Exhibits	23
Signatures	24

‎

2

Part I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

INGLES MARKETS, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	March 26,		September 25,
	2022		2021
ASSETS
Current Assets:
Cash and cash equivalents	$	65,624,291	$	70,313,350
Short term investments		115,007,106		5,000,000
Receivables - net		98,010,655		95,082,014
Inventories		397,891,256		389,953,456
Other current assets		24,906,417		15,091,595
Total Current Assets		701,439,725		575,440,415
Property and Equipment - Net		1,343,410,698		1,370,769,432
Operating lease right of use assets		41,667,691		40,145,098
Other Assets		37,658,397		31,989,010
Total Assets	$	2,124,176,511	$	2,018,343,955
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt	$	17,618,760	$	17,600,739
Current portion of operating lease liabilities		8,395,245		8,635,998
Accounts payable - trade		188,102,503		189,432,027
Accrued expenses and current portion of other long-term liabilities		73,872,036		90,428,567
Total Current Liabilities		287,988,544		306,097,331
Deferred Income Taxes		73,964,000		72,768,000
Long-Term Debt		560,832,573		571,913,204
Noncurrent operating lease liabilities		35,461,720		33,887,935
Other Long-Term Liabilities		45,078,425		50,418,947
Total Liabilities		1,003,325,262		1,035,085,417
Stockholders’ Equity
Preferred stock, $0.05 par value; 10,000,000 shares authorized; no shares issued		—		—
Common stocks:
Class A, $0.05 par value; 150,000,000 shares authorized; ‎14,325,235 shares issued and outstanding March 26, 2022; ‎14,271,335 shares issued and outstanding at September 25, 2021		716,262		713,567
Class B, convertible to Class A, $0.05 par value; ‎100,000,000 shares authorized; ‎4,669,141 shares issued and outstanding March 26, 2022; ‎4,723,041 shares issued and outstanding at September 25, 2021		233,457		236,152
Paid-in capital in excess of par value		—		—
Accumulated other comprehensive income		5,463,160		(3,426,140)
Retained earnings		1,114,438,370		985,734,959
Total Stockholders’ Equity		1,120,851,249		983,258,538
Total Liabilities and Stockholders’ Equity	$	2,124,176,511	$	2,018,343,955

See notes to unaudited condensed consolidated financial statements.

‎

3

INGLES MARKETS, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended
	March 26,		March 27,
	2022		2021
Net sales	$	1,377,118,668	$	1,184,554,737
Cost of goods sold		1,028,556,135		874,054,346
Gross profit		348,562,533		310,500,391
Operating and administrative expenses		254,739,175		236,850,173
Gain from sale or disposal of assets		1,265,254		663,278
Income from operations		95,088,612		74,313,496
Other income, net		1,344,269		645,287
Interest expense		5,425,534		6,194,790
Income before income taxes		91,007,347		68,763,993
Income tax expense		22,366,000		16,575,000
Net income	$	68,641,347	$	52,188,993
Other comprehensive income:
Change in fair value of interest rate swap	$	9,896,413	$	6,755,876
Income tax expense		(2,418,000)		(1,650,000)
Other comprehensive income, net of tax		7,478,413		5,105,876
Comprehensive income	$	76,119,760	$	57,294,869
Per share amounts:
Class A Common Stock
Basic earnings per common share	$	3.70	$	2.65
Diluted earnings per common share	$	3.61	$	2.58
Class B Common Stock
Basic earnings per common share	$	3.36	$	2.41
Diluted earnings per common share	$	3.36	$	2.41
Cash dividends per common share
Class A Common Stock	$	0.165	$	0.165
Class B Common Stock	$	0.150	$	0.150

See notes to unaudited condensed consolidated financial statements.

‎

4

INGLES MARKETS, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

	Six Months Ended
	March 26,		March 27,
	2022		2021
Net sales	$	2,768,648,179	$	2,374,997,878
Cost of goods sold		2,069,541,379		1,750,309,345
Gross profit		699,106,800		624,688,533
Operating and administrative expenses		514,824,580		475,049,250
Gain from sale or disposal of assets		1,209,226		1,114,997
Income from operations		185,491,446		150,754,280
Other income, net		2,936,323		1,337,304
Interest expense		10,839,405		12,595,503
Income before income taxes		177,588,364		139,496,081
Income tax expense		42,758,000		33,483,000
Net income	$	134,830,364	$	106,013,081
Other comprehensive income:
Change in fair value of interest rate swap	$	11,763,300	$	9,519,614
Income tax expense		(2,874,000)		(2,325,000)
Other comprehensive income, net of tax		8,889,300		7,194,614
Comprehensive income	$	143,719,664	$	113,207,695
Per share amounts:
Class A Common Stock
Basic earnings per common share	$	7.26	$	5.38
Diluted earnings per common share	$	7.10	$	5.24
Class B Common Stock
Basic earnings per common share	$	6.60	$	4.89
Diluted earnings per common share	$	6.60	$	4.89
Cash dividends per common share
Class A Common Stock	$	0.33	$	0.33
Class B Common Stock	$	0.30	$	0.30

See notes to unaudited condensed consolidated financial statements.

‎

5

INGLES MARKETS, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

THREE AND SIX MONTHS ENDED MARCH 26, 2022 AND MARCH 27, 2021

							Paid-in		Accumulated
	Class A			Class B			Capital in		Other
	Common Stock			Common Stock			Excess of		Comprehensive		Retained
	Shares	Amount		Shares	Amount		Par Value		Income (Loss)		Earnings		Total
Balance, September 26, 2020	14,212,360	$	710,618	6,047,416	$	302,371	$	12,311,249	$	(10,251,296)	$	816,258,015	$	819,330,957
Net income	—		—	—		—		—		—		53,824,087		53,824,087
Other comprehensive income, net of income tax	—		—	—		—		—		2,088,738		—		2,088,738
Cash dividends	—		—	—		—		—		—		(3,252,151)		(3,252,151)
Common stock conversions	8,175		409	(8,175)		(409)		—		—		—		—
Balance, December 26, 2020	14,220,535	$	711,027	6,039,241	$	301,962	$	12,311,249	$	(8,162,558)	$	866,829,951	$	871,991,631
Net income	—		—	—		—		—		—		52,188,993		52,188,993
Other comprehensive income, net of income tax	—		—	—		—		—		5,105,876		—		5,105,876
Cash dividends	—		—	—		—		—		—		(3,252,276)		(3,252,276)
Stock repurchases, at cost	—		—	(1,265,400)		(63,270)		(12,311,249)		—		(67,624,069)		(79,998,588)
Common stock conversions	32,750		1,638	(32,750)		(1,638)		—		—		—		—
Balance, March 27, 2021	14,253,285	$	712,665	4,741,091	$	237,054	$	—	$	(3,056,682)	$	848,142,599	$	846,035,636
Balance, September 25, 2021	14,271,335	$	713,567	4,723,041	$	236,152	$	—	$	(3,426,140)	$	985,734,959	$	983,258,538
Net income	—		—	—		—		—		—		66,189,018		66,189,018
Other comprehensive income, net of income tax	—		—	—		—		—		1,410,887		—		1,410,887
Cash dividends	—		—	—		—		—		—		(3,063,227)		(3,063,227)
Common stock conversions	33,300		1,665	(33,300)		(1,665)		—		—		—		—
Balance, December 25, 2021	14,304,635	$	715,232	4,689,741	$	234,487	$	—	$	(2,015,253)	$	1,048,860,750	$	1,047,795,216
Net income	—		—	—		—		—		—		68,641,347		68,641,347
Other comprehensive income, net of income tax	—		—	—		—		—		7,478,413		—		7,478,413
Cash dividends	—		—	—		—		—		—		(3,063,727)		(3,063,727)
Common stock conversions	20,600		1,030	(20,600)		(1,030)		—		—		—		—
Balance, March 26, 2022	14,325,235	$	716,262	4,669,141	$	233,457	$	—	$	5,463,160	$	1,114,438,370	$	1,120,851,249

See notes to unaudited condensed consolidated financial statements.

‎

6

INGLES MARKETS, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)  

	Six Months Ended
	March 26,		March 27,
	2022		2021
Cash Flows from Operating Activities:
Net income	$	134,830,364	$	106,013,081
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		59,264,873		60,205,801
Non cash operating lease cost		3,493,003		4,011,403
Gain from sale or disposal of assets		(1,209,226)		(1,114,997)
Receipt of advance payments on purchases contracts		1,147,709		775,000
Recognition of advance payments on purchases contracts		(1,494,340)		(1,511,486)
Deferred income taxes		(1,678,000)		858,000
Changes in operating assets and liabilities:
Receivables		(2,928,641)		(7,442,313)
Inventory		(7,937,800)		(19,763,979)
Other assets		(8,462,044)		(1,415,060)
Operating lease liabilities		(3,682,564)		(4,199,960)
Accounts payable and accrued expenses		(15,861,984)		(21,731,932)
Net Cash Provided by Operating Activities		155,481,350		114,683,558
Cash Flows from Investing Activities:
Purchase of short term investments		(110,007,106)		—
Proceeds from sales of property and equipment		1,509,285		1,356,964
Capital expenditures		(34,096,602)		(69,444,630)
Net Cash Used by Investing Activities		(142,594,423)		(68,087,666)
Cash Flows from Financing Activities:
Proceeds from short-term borrowings		—		600,674,373
Payments on short-term borrowings		—		(546,496,281)
Principal payments on long-term borrowings		(11,449,032)		(12,317,464)
Stock repurchases		—		(79,998,588)
Dividends paid		(6,126,954)		(6,504,427)
Net Cash Used by Financing Activities		(17,575,986)		(44,642,387)
Net (Decrease) Increase in Cash and Cash Equivalents		(4,689,059)		1,953,505
Cash and cash equivalents at beginning of period		70,313,350		6,903,955
Cash and Cash Equivalents at End of Period	$	65,624,291	$	8,857,460

See notes to unaudited condensed consolidated financial statements.

‎

7

INGLES MARKETS, INCORPORATED AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS

Three Months and Six Months Ended March 26, 2022 and March 27, 2021

A. BASIS OF PREPARATION

In the opinion of management, the accompanying unaudited interim financial statements contain all adjustments necessary to present fairly the Company’s financial position as of March 26, 2022, and the results of operations and changes in stockholders’ equity for the three-month and six-month periods ended March 26, 2022 and March 27, 2021, and cash flows for the six months ended March 26, 2022 and March 27, 2021. The adjustments made are of a normal recurring nature. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. It is suggested that these unaudited interim financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 25, 2021, filed with the Securities Exchange Commission on November 24, 2021.

The results of operations for the three-month and six-month periods ended March 26, 2022 are not necessarily indicative of the results to be expected for the full fiscal year.

B. NEW ACCOUNTING PRONOUNCEMENTS

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting in response to the risk of cessation of the London Interbank Offered Rate (“LIBOR”). This amendment provides for optional expedients and exceptions for applying generally accepted accounting principles to contracts and hedging relationships that are affected by LIBOR and other reference rates. The ASU generally allows for hedge accounting to continue if the hedge was highly effective or met other standards prior to reference rate reform. Entities are permitted to apply the amendments to all contracts, cash flow and net investment hedge relationships that exist as of March 12, 2020. The relief provided in this ASU is only available for a limited time, generally through December 31, 2022. The Company’s debt agreements and interest rate swaps that utilize LIBOR have not yet discontinued the use of LIBOR and, therefore, this ASU is not yet effective for us. To the extent our debt and interest rate swap arrangements change to another accepted rate, we will utilize the relief in this ASU to continue hedge accounting.

C. SHORT TERM INVESTMENTS

The Company purchases financial products that can be readily converted into cash, and the Company accounts for such financial products as short-term investments. The financial products include money market funds, bonds and mutual funds. The carrying values of the Company’s short-term investments approximate fair value because of their liquidity.

D. ALLOWANCE FOR DOUBTFUL ACCOUNTS

Receivables are presented net of an allowance for doubtful accounts of $602,000 at March 26, 2022 and $157,000 at September 25, 2021.

E. INCOME TAXES

The Company’s effective tax rate differs from the federal statutory rate primarily as a result of state income taxes and tax credits.

The Company has unrecognized tax benefits and could incur interest and penalties related to uncertain tax positions. These amounts are insignificant and are not expected to significantly increase or decrease within the next twelve months.

8

F. ACCRUED EXPENSES AND CURRENT PORTION OF OTHER LONG-TERM LIABILITIES

Accrued expenses and current portion of other long-term liabilities consist of the following:

	March 26,		September 25,
	2022		2021
Property, payroll and other taxes payable	$	14,013,131	$	22,621,486
Salaries, wages and bonuses payable		38,052,944		45,890,517
Self-insurance liabilities		13,346,387		13,319,556
Interest payable		4,411,506		4,481,104
Other		4,048,068		4,115,904
	$	73,872,036	$	90,428,567

Self-insurance liabilities are established for general liability claims, workers’ compensation and employee group medical and dental benefits based on claims filed and estimates of claims incurred but not reported. The Company is currently insured for covered costs in excess of $1.0 million per occurrence for workers’ compensation and for general liability and $450,000 per covered person for medical care benefits for a policy year. The Company’s self-insurance reserves totaled $32.3 million and $32.1 million at March 26, 2022 and September 25, 2021, respectively. Of this amount, $13.3 million is accounted for as a current liability and $19.0 million as a long-term liability, which is inclusive of $4.2 million of expected self-insurance recoveries from excess cost insurance or other sources that are recorded as a receivable at March 26, 2022. At September 25, 2021, $13.3 million was accounted for as a current liability and $18.8 million as a long-term liability, which is inclusive of $4.2 million of expected self-insurance recoveries from excess cost insurance or other sources that are recorded as a receivable.

Employee insurance expense, including workers’ compensation and medical care benefits, net of employee contributions, totaled $7.0 million and $8.2 million for the three-month periods ended March 26, 2022 and March 27, 2021, respectively. For the six-month periods ended March 26, 2022 and March 27, 2021, employee insurance expense, net of employee contributions totaled $20.3 million and $20.5 million, respectively.

The Company’s fuel operations contain underground tanks for the storage of gasoline and diesel fuel. The Company reviewed FASB Accounting Standards Codification Topic 410 (“FASB ASC 410”) and determined we have a legal obligation to remove tanks at a point in the future and accordingly determined we have met the requirements of an asset retirement obligation. The Company followed the FASB ASC 410 model for determining the asset retirement cost and asset retirement obligation. The amounts recorded are immaterial for each fuel center as well as in the aggregate at March 26, 2022 and September 25, 2021.

G. LONG-TERM DEBT

In June 2021, the Company issued at par $350.0 million aggregate principal amount of 4.00% senior notes due in 2031 (the “Notes”). The Company may redeem all or a portion of the Notes at any time at the following redemption prices (expressed as percentages of the principal amount), if redeemed during the 12-month period beginning June 15 of the years indicated below:

Year
2026	102.000%
2027	101.333%
2028	100.667%
2029 and thereafter	100.000%

The Company had a $175.0 million line of credit that was scheduled to mature in September 2022. In June 2021, the Company replaced that line by entering into a $150.0 million line of credit (the “Line”) that matures in June 2026. The Line provides the Company with various interest rate options based on the prime rate, the Federal Funds Rate, or LIBOR. The Line allows the Company to issue up to $10.0 million in letters of credit, of which none were issued at March 26, 2022. The Company is not required to maintain compensating balances in connection with the Line. At March 26, 2022, the Company had no borrowings outstanding under the Line.

In December 2010, the Company completed the funding of $99.7 million of bonds (the “Bonds”) for construction of new warehouse and distribution space adjacent to its existing space in Buncombe County, North Carolina (the “Project”). The final maturity date of the Bonds is January 1, 2036.

Under a Continuing Covenant and Collateral Agency Agreement (the “Covenant Agreement”) between certain financial institutions and the Company, the financial institutions would hold the Bonds until December 2029, subject to certain events. Mandatory redemption of the Bonds by the Company in the annual amount of $4.5 million began on January 1, 2014. The outstanding balance of the Bonds was $59.0 million as of March 26, 2022. The Company may redeem the Bonds without penalty or premium at any time prior to December 17, 2029. The Covenant Agreement was amended during the quarter ended December 25, 2021 to extend the holding period and reduce the interest rate on the Bonds.

9

Interest earned by bondholders on the Bonds is exempt from Federal and North Carolina income taxation. The interest rate on the Bonds is equal to one-month LIBOR (adjusted monthly) plus a credit spread, adjusted to reflect the income tax exemption.

The Company’s obligation to repay the Bonds is collateralized by the Project. The Covenant Agreement incorporates substantially all financial covenants included in the Line.

In September 2017, the Company refinanced approximately $60 million secured borrowing obligations with a LIBOR-based amortizing floating rate loan secured by real estate maturing in October 2027.  The Company has an interest rate swap agreement for a current notional amount of $33.5 million at a fixed rate of 3.92%.  Under this agreement, the Company pays monthly the fixed rate of 3.92% and receives the one-month LIBOR plus 1.65%.  The interest rate swap effectively hedges floating rate debt in the same amount as the current notional amount of the interest swap.  Both the floating rate debt and the interest rate swap have monthly principal amortization of $0.5 million and mature October 1, 2027.

In December 2019, the Company closed a $155 million LIBOR-based amortizing floating rate loan secured by real estate maturing in January 2030. The Company has an interest rate swap agreement for a current notional amount of $136.3 million at a fixed rate of 2.95%.  Under this agreement, the Company pays monthly the fixed rate of 2.95% and receives the one-month LIBOR plus 1.50%.  The interest rate swap effectively hedges floating rate debt in the same amount as the current notional amount of the interest swap.  Both the floating rate debt and the interest rate swap have monthly principal amortization of $0.65 million and mature in fiscal year 2030.

The Company recognizes differences between the variable rate interest payments and the fixed interest rate settlements with the swap counterparties as an adjustment to interest expense each period over the life of the swaps. The Company has designated the swaps as cash flow hedges and records the changes in the estimated fair value of the swaps to other comprehensive income each period. For the three- and six-month periods ended March 26, 2022, the Company recorded $7.5 million and $8.9 million of other comprehensive income, respectively, net of income taxes, in its Consolidated Statements of Comprehensive Income. Unrealized gains of $7.2 million were recorded as an asset at fair value in the line “Other Assets” on the Consolidated Balance Sheet as of March 26, 2022. For the three- and six-month periods ended March 27, 2021, the Company recorded $5.1 million and $7.2 million of other comprehensive income, respectively, net of income taxes, in its Consolidated Statements of Comprehensive Income. Unrealized losses of $4.0 million were recorded as a liability at fair value in the line “Other Long Term Liabilities” on the Consolidated Balance Sheet as of March 27, 2021.

The Company’s long-term debt agreements generally contain provisions that under certain circumstances would permit lending institutions to terminate or withdraw their respective extensions of credit to the Company. Included among the triggering factors permitting the termination or withdrawal of the Line to the Company are certain events of default, including both monetary and non-monetary defaults, the initiation of bankruptcy or insolvency proceedings, and the failure of the Company to meet certain financial covenants designated in its respective loan documents. The Company was in compliance with all financial covenants at March 26, 2022.

The Company’s long-term debt agreements generally have cross-default provisions which could result in the acceleration of payments due under all long-term debt agreements in the event of default under any one instrument.

At March 26, 2022, property and equipment with an undepreciated cost of approximately $274.4 million was pledged as collateral for long-term debt. Long-term debt and Line agreements contain various restrictive covenants requiring, among other things, minimum levels of net worth and maintenance of certain financial ratios. At March 26, 2022, the Company had excess net worth totaling $305.9 million calculated under covenants in the Notes, the Bonds, the Loan, and the Line. This amount is available to pay dividends; however, certain loan agreements containing provisions outlining minimum tangible net worth requirements restrict the ability of the Company to pay cash dividends in excess of the current annual per share dividends paid on the Company’s Class A and Class B Common Stock. Further, the Company is prevented from paying cash dividends at any time that it is in default under the indenture governing the Notes. In addition, the terms of the indenture may restrict the ability of the Company to pay additional cash dividends based on certain financial parameters.

H. DIVIDENDS

The Company paid cash dividends of $0.165 for each share of Class A Common Stock and $0.15 for each share of Class B Common Stock on October 14, 2021 to stockholders of record on October 7, 2021.

The Company paid cash dividends of $0.165 for each share of Class A Common Stock and $0.15 for each share of Class B Common Stock on January 13, 2022 to stockholders of record on January 6, 2022.

For additional information regarding the dividend rights of the Class A Common Stock and Class B Common Stock, please see Note 8, “Stockholders’ Equity” to the Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K filed by the Company with the Securities Exchange Commission on November 24, 2021.

10

I. EARNINGS PER COMMON SHARE

The Company has two classes of common stock: Class A, which is publicly traded, and Class B, which has no public market. The Class B Common Stock has restrictions on transfer; however, each share is convertible into one share of Class A Common Stock at any time. Each share of Class A Common Stock has one vote per share and each share of Class B Common Stock has ten votes per share. Each share of Class A Common Stock is entitled to receive cash dividends equal to 110% of any cash dividend paid on Class B Common Stock.

The Company calculates earnings per share using the two-class method in accordance with FASB ASC Topic 260.

The two-class method of computing basic earnings per share for each period reflects the cash dividends declared per share for each class of stock, plus allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Diluted earnings per share is calculated assuming the conversion of all shares of Class B Common Stock to shares of Class A Common Stock on a share-for-share basis. The tables below reconcile the numerators and denominators of basic and diluted earnings per share for current and prior periods.

	Three Months Ended				Six Months Ended
	March 26, 2022				March 26, 2022
	Class A		Class B		Class A		Class B
Numerator: Allocated net income
Net income allocated, basic	$	52,934,311	$	15,707,036	$	103,831,190	$	30,999,174
Conversion of Class B to Class A shares		15,707,036		—		30,999,174		—
Net income allocated, diluted	$	68,641,347	$	15,707,036	$	134,830,364	$	30,999,174
Denominator: Weighted average shares outstanding
Weighted average shares outstanding, basic		14,320,981		4,673,395		14,299,096		4,695,280
Conversion of Class B to Class A shares		4,673,395		—		4,695,280		—
Weighted average shares outstanding, diluted		18,994,376		4,673,395		18,994,376		4,695,280
Earnings per share
Basic	$	3.70	$	3.36	$	7.26	$	6.60
Diluted	$	3.61	$	3.36	$	7.10	$	6.60

	Three Months Ended				Six Months Ended
	March 27, 2021				March 27, 2021
	Class A		Class B		Class A		Class B
Numerator: Allocated net income
Net income allocated, basic	$	37,772,564	$	14,416,429	$	76,588,658	$	29,424,423
Conversion of Class B to Class A shares		14,416,429		—		29,424,423		—
Net income allocated, diluted	$	52,188,993	$	14,416,429	$	106,013,081	$	29,424,423
Denominator: Weighted average shares outstanding
Weighted average shares outstanding, basic		14,233,200		5,970,954		14,223,381		6,008,584
Conversion of Class B to Class A shares		5,970,954		—		6,008,584		—
Weighted average shares outstanding, diluted		20,204,154		5,970,954		20,231,965		6,008,584
Earnings per share
Basic	$	2.65	$	2.41	$	5.38	$	4.89
Diluted	$	2.58	$	2.41	$	5.24	$	4.89

11

J. LEASES

Leases as Lessee

The Company conducts part of its retail operations from leased facilities. The initial terms of the leases are generally 20 years. The majority of the leases includes one or more renewal options and provide that the Company pay property taxes, utilities, repairs and certain other costs incidental to occupation of the premises. Several leases contain clauses calling for percentage rentals based upon gross sales of the supermarket occupying the leased space. Step rent provisions, escalation clauses and lease incentives are taken into account in computing minimum lease payments.

Operating lease cost for all operating leases totaled $3.0 million for the three months ended March 26, 2022 and $5.6 million for the six months ended March 26, 2022. This amount includes short-term (less than one year) leases, common area expenses, and variable lease costs, all of which are insignificant. Cash paid for lease liabilities in operating activities approximates operating lease cost.

Maturities of operating lease liabilities as of March 26, 2022 were as follows:

Fiscal Year
Remainder of 2022	$	4,996,500
2023		9,547,692
2024		6,763,393
2025		5,962,685
2026		4,230,737
Thereafter		24,152,866
Total lease payments	$	55,653,873
Less amount representing interest		11,796,908
Present value of lease liabilities	$	43,856,965

On the Condensed Consolidated Balance Sheets, lease extensions exercised during fiscal year 2022 increased the line items “Operating lease right of use assets” and “Noncurrent operating lease liabilities” by $5.0 million each during the six months ended March 26, 2022. The weighted average remaining lease term for the Company’s operating leases is 12.7 years. The weighted average discount rate used to determine lease liability balances as of March 26, 2022 was 3.51%, based on recent Company financings collateralized by store properties.

Leases as Lessor

At March 26, 2022, the Company owned and operated 83 shopping centers in conjunction with its supermarket operations. The Company leases to others a portion of its shopping center properties. The leases are non-cancelable operating lease agreements for periods ranging up to 20 years.

Rental income is included in the line item “Net sales” on the Consolidated Statements of Income. Depreciation on owned properties leased to others and other shopping center expenses are included in the line item “Cost of goods sold” on the Consolidated Statements of Income.

		Three Months Ended		Six Months Ended
		March 26, 2022		March 26, 2022
Rents earned on owned and subleased properties:
Base rentals	$	4,773,104	$	9,670,462
Variable rentals		67,892		135,784
Total		4,840,996		9,806,246
Depreciation on owned properties leased to others		(1,463,937)		(2,927,875)
Other shopping center expenses		(670,365)		(1,318,152)
Total	$	2,706,694	$	5,560,219

12

Future minimum operating lease receipts at March 26, 2022 were as follows:

Fiscal Year
Remainder of 2022	$	7,530,608
2023		13,805,776
2024		12,605,769
2025		11,241,965
2026		8,353,538
Thereafter		34,011,392
Total minimum future rental income	$	87,549,048

K. SEGMENT INFORMATION

The Company operates one primary business segment, retail grocery sales. “Other” includes our remaining operations - fluid dairy and shopping center rentals. Information about the Company’s operations by lines of business (amounts in thousands) is as follows:

	Three Months Ended				Six Months Ended
	March 26,		March 27,		March 26,		March 27,
	2022		2021		2022		2021
Revenues from unaffiliated customers:
Grocery	$	482,179	$	427,219	$	970,585	$	869,339
Non-foods		289,419		268,799		594,091		548,487
Perishables		355,651		320,493		720,001		641,756
Gasoline		200,192		130,679		391,025		241,148
Total Retail	$	1,327,441	$	1,147,190	$	2,675,702	$	2,300,730
Other		49,678		37,365		92,946		74,268
Total revenues from unaffiliated customers	$	1,377,119	$	1,184,555	$	2,768,648	$	2,374,998
Income from operations:
Retail	$	88,663	$	67,645	$	174,162	$	139,164
Other		6,426		6,668		11,329		11,590
Total income from operations	$	95,089	$	74,313	$	185,491	$	150,754

	March 26,		September 25,
	2022		2021
Assets:
Retail	$	1,893,939	$	1,794,160
Other		233,375		226,762
Elimination of intercompany receivable		(3,137)		(2,578)
Total assets	$	2,124,177	$	2,018,344

The grocery category includes grocery, dairy, and frozen foods.

The non-foods category includes alcoholic beverages, tobacco, pharmacy, and health/beauty/cosmetic products.

The perishables category includes meat, produce, deli and bakery.

The fluid dairy operation had $13.1 million and $12.3 million in sales to the retail grocery segment for the three-month periods ended March 26, 2022 and March 27, 2021, respectively. The fluid dairy had $25.6 million and $23.7 million in sales to the retail grocery segment for the six-month periods ended March 26, 2022 and March 27, 2021, respectively. These sales have been eliminated in consolidation and are excluded from the amounts in the table above.

L. FAIR VALUES OF FINANCIAL INSTRUMENTS

The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments.

The fair value of the Company’s debt and interest rate swaps are estimated using valuation techniques under the accounting guidance related to fair value measurements based on observable and unobservable inputs. Observable inputs reflect readily available data from independent sources, while unobservable inputs reflect the Company’s market assumptions. These inputs are classified into the following hierarchy:

‎

13

Level 1 Inputs –	Quoted prices for identical assets or liabilities in active markets.
Level 2 Inputs –	Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3 Inputs –	Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation.

The carrying amount and fair value of the Company’s debt, interest rate swaps, and non-qualified retirement plan assets at March 26, 2022 were as follows (in thousands):

	Carrying				Fair Value
	Amount		Fair Value		Measurements
Senior Notes	$	350,000	$	327,250	Level 2
Facility Bonds		58,970		58,970	Level 2
Secured notes payable and other		169,481		169,462	Level 2
Interest rate swap derivative contracts asset		(7,232)		(7,232)	Level 2
Non-qualified retirement plan assets		19,702		19,702	Level 2

The fair values for Level 2 measurements were determined primarily using market yields and taking into consideration the underlying terms of the instrument.

M. COMMITMENTS AND CONTINGENCIES

Various legal proceedings and claims arising in the ordinary course of business are pending against the Company. In the opinion of management, the ultimate liability, if any, from all pending legal proceedings and claims is not expected to materially affect the Company’s financial position, the results of its operations, or its cash flows.

N. RELATED PARTY TRANSACTIONS

The Company will from time to time make short-term non-interest bearing loans to the Company’s Investment/Profit Sharing Plan to allow the plan to meet distribution obligations during a time when the plan was prohibited from selling shares of the Company’s Class A Common Stock. During the three months ended March 26, 2022, there were no such loans made, repaid or outstanding.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

Ingles, a leading supermarket chain in the Southeast, operates 198 supermarkets in North Carolina (75), Georgia (65), South Carolina (35), Tennessee (21), Virginia (1) and Alabama (1). The Company locates its supermarkets primarily in suburban areas, small towns and rural communities. Ingles supermarkets offer customers a wide variety of nationally advertised food products, including grocery, meat and dairy products, produce, frozen foods and other perishables and non-food products. Non-food products include fuel centers, pharmacies, health/beauty/cosmetic products and general merchandise, as well as quality private label items. In addition, the Company focuses on selling high-growth, high-margin products to its customers through the development of certified organic products, bakery departments and prepared foods including delicatessen sections. As of March 26, 2022, the Company operated 111 in-store pharmacies and 107 fuel centers. 

14

Coronavirus (COVID-19) Pandemic Impact

The COVID-19 pandemic which began in March 2020 and has continued through the six months ended March 26, 2022, has impacted supermarket operations, as the Company implemented several enhanced cleaning and social distancing protocols designed to keep our customers and our associates safe. Since March 2020, the Company’s stores have experienced increased customer traffic and have experienced occasional product shortages due to supply chain issues. Recently, an extremely tight labor market has impacted the Company’s ability to attract and retain qualified store personnel, but these impacts have not materially affected our operations. Finally, as the economy has been recovering from the effects of the pandemic, inflation has reached levels not seen in decades. Inflation impacts product costs, labor costs and the cost of other goods used by the Company, which could negatively impact our results of operation.

At the present time, we do not know how long and to what extent the pandemic could impact our sales and financial performance.

Critical Accounting Policies and Estimates

Critical accounting policies and estimates are those accounting policies and estimates that management believes are important to the presentation of the Company’s financial condition and results of operations, and require management’s most difficult, subjective or complex judgments, often as a result of the need to estimate the effect of matters that are inherently uncertain. Estimates are based on historical experience and other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management estimates, by their nature, involve judgments regarding future uncertainties, and actual results may therefore differ materially from these estimates.

Self-Insurance

The Company is self-insured for workers’ compensation and group medical and dental benefits. Risks and uncertainties are associated with self-insurance; however, the Company has limited its exposure by maintaining excess liability coverage of $1.0 million per occurrence for workers’ compensation and for general liability, and $450,000 per covered person for medical care benefits for a policy year. Self-insurance liabilities are established based on claims filed and estimates of claims incurred but not reported. The estimates are based on data provided by the respective claims administrators. These estimates can fluctuate if historical trends are not predictive of the future. The majority of the Company’s properties are self-insured for casualty losses and business interruption; however, liability coverage is maintained. At March 26, 2022 the Company’s self-insurance reserves totaled $32.3 million. This amount is inclusive of $4.2 million of expected self-insurance recoveries from excess cost insurance or other sources that are recorded as a receivable.

Asset Impairments

The Company accounts for the impairment of long-lived assets in accordance with FASB ASC Topic 360. For assets to be held and used, the Company tests for impairment using undiscounted cash flows and calculates the amount of impairment using discounted cash flows. For assets held for sale, impairment is recognized based on the excess of remaining book value over expected recovery value. The recovery value is the fair value as determined by independent quotes or expected sales prices developed by internal associates. Estimates of future cash flows and expected sales prices are judgments based upon the Company’s experience and knowledge of local operations and cash flows that are projected for several years into the future. These estimates can fluctuate significantly due to changes in real estate market conditions, the economic environment, capital spending decisions and inflation. The Company monitors the carrying value of long-lived assets for potential impairment each quarter based on whether any indicators of impairment have occurred. There were no asset impairments during the six-month period ended March 26, 2022.

Vendor Allowances

The Company receives funds for a variety of merchandising activities from the many vendors whose products the Company buys for resale in its stores. These incentives and allowances are primarily composed of volume or purchase based incentives, advertising allowances, slotting fees, and promotional discounts. The purpose of these incentives and allowances is generally to help defray the costs incurred by the Company for stocking, advertising, promoting and selling the applicable vendor’s products. These allowances generally relate to short term arrangements with vendors, often relating to a period of one-month or less, and are negotiated on a purchase-by-purchase or transaction-by-transaction basis. Whenever practicable, vendor discounts and allowances that relate to buying and merchandising activities are recorded as a component of item cost in inventory and recognized in merchandise costs when the item is sold. Due to the use of the retail method of store inventory and the nature of certain allowances, it is sometimes not practicable to apply allowances to the item cost of inventory. In those instances, the allowances are applied as a reduction of merchandise costs using a rational and systematic methodology, which results in the recognition of these incentives when the inventory related to the vendor consideration received is sold. Vendor allowances applied as a reduction of merchandise costs totaled $26.2 million and $28.9 million for the fiscal quarters ended March 26, 2022 and March 27, 2021, respectively. For the six-month periods ended March 26, 2022 and March 27, 2021, vendor allowances applied as a reduction of merchandise costs totaled $58 million and $58.6 million, respectively. Vendor advertising allowances that represent a reimbursement of specifically identifiable incremental

15

costs of advertising the vendor’s specific products are recorded as a reduction to the related expense in the period in which the related expense is incurred. Vendor advertising allowances recorded as a reduction of advertising expense totaled $1.7 million and $2.1 million for the fiscal quarters ended March 26, 2022 and March 27, 2021, respectively. For the six-month periods ended March 26, 2022 and March 27, 2021, vendor advertising allowances recorded as a reduction of advertising expense totaled $3.7 million and $4.0 million, respectively. Overall, vendor allowances have been lower since the COVID-19 pandemic began.

If vendor advertising allowances were substantially reduced or eliminated, the Company would likely consider other methods of advertising, as well as the volume and frequency of the Company’s product advertising, which could increase or decrease the Company’s expenditures.

Additionally, the Company is not able to assess the impact of vendor advertising allowances on the creation of additional revenue, as such allowances do not directly generate revenue for the Company’s stores.

Results of Operations

Ingles operates on a 52 or 53-week fiscal year ending on the last Saturday in September. There are 13 and 26 weeks of operations included in the Unaudited Condensed Consolidated Statements of Income for the three- and six-month periods ended March 26, 2022 and March 27, 2021, respectively. Comparable store sales are defined as sales by retail stores in operation for five full fiscal quarters. Sales from replacement stores, major remodels and the addition of fuel stations to existing stores are included in the comparable store sales calculation from the date thereof. A replacement store is a newly-opened store that replaces an existing nearby store that is closed. A major remodel entails substantial remodeling of an existing store and includes additional retail square footage. For the three- and six-month periods ended March 26, 2022, comparable store sales included 196 stores. For the three- and six-month periods ended March 27, 2021, comparable store sales included 197 stores.

The following table sets forth, for the periods indicated, selected financial information as a percentage of net sales. For information regarding the various segments of the business, see Note I “Segment Information” to the Condensed Consolidated Financial Statements. 

	Three Months Ended				Six Months Ended
	March 26,		March 27,		March 26,		March 27,
	2022		2021		2022		2021
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Gross profit	25.3	%	26.2	%	25.3	%	26.3	%
Operating and administrative expenses	18.5	%	20.0	%	18.6	%	20.0	%
Gain from sale or disposal of assets	—	%	0.1	%	—	%	—	%
Income from operations	6.9	%	6.3	%	6.7	%	6.3	%
Other income, net	0.1	%	0.1	%	0.1	%	0.1	%
Interest expense	0.4	%	0.5	%	0.4	%	0.5	%
Income tax expense	1.6	%	1.4	%	1.5	%	1.4	%
Net income	5.0	%	4.5	%	4.9	%	4.5	%

Three Months Ended March 26, 2022 Compared to the Three Months Ended March 27, 2021

Net income for the second quarter of fiscal 2022 totaled $68.6 million, compared with net income of $52.2 million for the second quarter of fiscal 2021.While the Company has incurred significant inventory cost increases and volatility, expenses did not increase as much as sales, resulting in higher pre-tax income.

Net Sales. Net sales increased by $193.0 million, or 16.3%, to $1.38 billion for the three months ended March 26, 2022 compared with $1.18 billion for the three months ended March 27, 2021. Comparing the second quarter of fiscal 2022 with the second quarter of fiscal 2021, gasoline sales dollars and gallons sold were higher due to increased travel and an increase in market prices for fuel. Excluding gasoline sales, total grocery comparable store sales increased 10.1% over the comparative fiscal quarter. Comparing the second quarters of fiscal years 2022 and 2021 (and excluding gasoline), the number of customer transactions increased 5.3% and the average transaction size increased 5.0%.

Ingles operated 198 stores at both March 26, 2022 and March 27, 2021. Retail square feet totaled approximately 11.3 million square feet at both March 26, 2022 and at March 27, 2021. During the twelve months ended March 26, 2022, the Company opened one store and closed one store.

16

Sales by product category (in thousands) were as follows:

	Three Months Ended
	March 26,		March 27,
	2022		2021
Grocery	$	482,179	$	427,219
Non-foods		289,419		268,799
Perishables		355,651		320,493
Gasoline		200,192		130,679
Total retail grocery	$	1,327,441	$	1,147,190

The grocery category includes grocery, dairy, and frozen foods.

The non-foods category includes alcoholic beverages, tobacco, pharmacy, and health/beauty/cosmetic products.

The perishables category includes meat, produce, deli and bakery.

Changes in retail grocery sales for the quarter ended March 26, 2022 are summarized as follows (in thousands):

Total retail sales for the three months ended March 27, 2021	$	1,147,190
Comparable store sales increase (including gasoline)		170,752
Impact of stores opened in fiscal 2021		13,976
Impact of stores closed in fiscal 2021		(2,507)
Other		(1,970)
Total retail sales for the three months ended March 26, 2022	$	1,327,441

Gross Profit. Gross profit for the three-month period ended March 26, 2022 totaled $348.6 million, an increase of $38.1 million, or 12.3%, compared with gross profit of $310.5 million for the three-month period ended March 27, 2021. Gross profit as a percentage of sales was 25.3% and 26.2% for the three months ended March 26, 2022 and March 27, 2021, respectively.

Operating and Administrative Expenses. Operating and administrative expenses increased $17.8 million, or 7.6%, to $254.7 million for the three months ended March 26, 2022, from $236.9 million for the three months ended March 27, 2021. As a percentage of sales, operating and administrative expenses were 18.5% and 20.0% for the March 2022 and March 2021 quarters, respectively. Excluding gasoline sales and associated gasoline operating expenses (primarily payroll), operating expenses were 21.5% of sales for the second fiscal quarter of 2022 compared with 22.3% for the second fiscal quarter of 2021.

A breakdown of the major changes in operating and administrative expenses is as follows:

			Increase
	Increase		as a % of
	in millions		sales
Salaries and wages	$	10.1	0.73	%
Depreciation and amortization	$	1.7	0.13	%
Bank charges	$	2.2	0.16	%
Professional fees	$	1.4	0.10	%

Salaries and wages increased in dollars due to higher sales volume requiring additional hours, as well as increased wages due to labor market competition.

Depreciation expense increased due to equipment purchased for store improvements, technology improvements and the distribution network.

Bank charges increased as a result of increased sales and higher card usage compared with cash or checks.

Professional fees increased in conjunction with improvements to the Company’s information technology platforms.

Gain from Sale or Disposal of Assets. Gain from the sale or disposal of assets totaled $1.3 million during the three months ended March 26, 2022, primarily from the sale of rolling stock. During the quarter ended March 27, 2021, the gain from the sale or disposal of assets totaled $0.7 million.

Interest Expense. Interest expense totaled $5.4 million for the three-month period ended March 26, 2022 compared with $6.2 million for the three-month period ended March 27, 2021. Total debt at March 2022 was $578.5 million compared with $647.8 million at March 2021. Over the past twelve months, the Company has reduced or refinanced higher rate debt to lower rates.

17

Income Taxes. Income tax expense totaled $22.4 million for the three months ended March 26, 2022, an effective tax rate of 24.6% of pretax income. Income tax expense totaled $16.6 million for the three months ended March 27, 2021, an effective tax rate of 24.1% of pretax income.

Net Income. Net income totaled $68.6 million for the three-month period ended March 26, 2022 compared with $52.2 million for the three-month period ended March 27, 2021. Basic and diluted earnings per share for Class A Common Stock were $3.70 and $3.61, respectively, for the March 2022 quarter, compared to $2.65 and $2.58, respectively, for the March 2021 quarter. Basic and diluted earnings per share for Class B Common Stock were each $3.36 for the March 2022 quarter compared with $2.41 for the March 2021 quarter.

Six Months Ended March 26, 2022 Compared to the Six Months Ended March 27, 2021

Net income for the first half of fiscal 2022 totaled $134.8 million, compared with net income of $106.0 million earned for the first half of fiscal 2021. Retail grocery sales increased due to continued consumer trends seen since the beginning of the COVID 19 pandemic as well as the effects of inflation. Corresponding operating expenses did not increase as much, resulting in higher pre-tax income.

Net Sales. Net sales increased by $393.7 million, or 16.6%, to $2.77 billion for the six months ended March 26, 2022 compared with $2.37 billion for the six months ended March 27, 2021. Comparing the first half of fiscal 2022 with the first half of fiscal 2021, gasoline sales dollars and gallons sold were higher. Excluding gasoline sales, total grocery comparable store sales increased 10.2% over the comparative six-month period. Comparing the first halves of fiscal years 2022 and 2021 (and excluding gasoline), the number of customer transactions increased 6.3% and the average transaction size increased 4.2%.

Sales by product category (in thousands) are as follows:

	Six Months Ended
	March 26,		March 27,
	2022		2021
Grocery	$	970,585	$	869,339
Non-foods		594,091		548,487
Perishables		720,001		641,756
Gasoline		391,025		241,148
Total retail grocery	$	2,675,702	$	2,300,730

Changes in retail grocery sales for the quarter ended March 26, 2022 are summarized as follows (in thousands):

Total retail sales for the six months ended March 27, 2021	$	2,300,730
Comparable store sales increase (including gasoline)		351,984
Impact of stores opened in fiscal 2021		28,776
Impact of stores closed in fiscal 2021		(5,080)
Other		(708)
Total retail sales for the six months ended March 26, 2022	$	2,675,702

The grocery category includes grocery, dairy, and frozen foods.

The non-foods category includes alcoholic beverages, tobacco, pharmacy, and health/beauty/cosmetic products.

The perishables category includes meat, produce, deli and bakery.

Gross Profit. Gross profit for the six-month period ended March 26, 2022 totaled $699.1 million, an increase of $74.4 million, or 11.9%, compared with gross profit of $624.7 million for the six-month period ended March 27, 2021. Gross profit as a percentage of sales was 25.3% and 26.3% for the six months ended March 26, 2022 and March 27, 2021, respectively. Inflation and supply chain pressures have increased the cost of goods sold.

Operating and Administrative Expenses. Operating and administrative expenses increased $39.8 million, or 8.4%, to $514.8 million for the six months ended March 26, 2022, from $475.0 million for the six months ended March 27, 2021. As a percentage of sales, operating and administrative expenses were 18.6% and 20.0% for the March 2022 and March 2021 six-month periods, respectively. Excluding gasoline sales and associated gasoline operating expenses (primarily payroll), operating expenses were 21.5% of sales for the first six months of 2022 compared with 22.1% for the first six months of 2021. The fiscal 2022 first half expense percentages are lower due to additional pandemic-related sales during the first half of 2022.

18

A breakdown of the major changes in operating and administrative expenses is as follows:

			Increase
	Increase		as a % of
	in millions		sales
Salaries and wages	$	19.6	0.71	%
Depreciation and amortization	$	4.3	0.15	%
Bank charges	$	3.9	0.14	%
Professional fees	$	3.0	0.11	%

Salaries and wages increased in dollars due to additional labor hours required for the increased sales volume and continued labor market pressures.

Depreciation expense increased due to equipment purchased for store improvements, technology and the distribution network.

Bank charges increased as a result of increased sales and higher card usage compared with cash or checks.

Professional fees increased in conjunction with improvements to the Company’s information technology platforms.

Gain from Sale or Disposal of Assets. Gain from the sale or disposal of assets totaled $1.2 million during the six months ended March 26, 2022. During the six-months ended March 27, 2021, the gain from the sale or disposal of assets totaled $1.1 million.

Interest Expense. Interest expense totaled $10.8 million for the six-month period ended March 26, 2022 compared with $12.6 million for the six-month period ended March 27, 2021. Total debt at March 2022 was $578.5 million compared with $647.8 million at March 2021. Over the past twelve months, the Company has reduced or refinanced higher rate debt to lower rates.

Income Taxes. Income tax expense totaled $42.8 million for the six months ended March 26, 2022, an effective tax rate of 24.1% of pretax income. Income tax expense totaled $33.5 million for the six months ended March 27, 2021, an effective tax rate of 24.0% of pretax income.

Net Income. Net income totaled $134.8 million for the six-month period ended March 26, 2022 compared with $106.0 million for the six-month period ended March 27, 2021. Basic and diluted earnings per share for Class A Common Stock were $7.26 and $7.10, respectively, for the six months ended March 26, 2022, compared to $5.38 and $5.24, respectively, for the six months ended March 27, 2021. Basic and diluted earnings per share for Class B Common Stock were each $6.60 for the six-months ended March 26, 2022 compared with $4.89 for the six months ended March 27, 2021.

Liquidity and Capital Resources

Capital Expenditures

The Company believes that a key to its ability to continue to develop a loyal customer base is providing conveniently located, clean and modern stores which provide customers with good service and an increasingly diverse selection of competitively priced products. Therefore, the Company has invested and plans to continue to invest significant amounts of capital toward the modernization of its store base. The Company’s modernization program includes the opening of new stores, the completion of major remodels and expansion of selected existing stores, the relocation of selected existing stores to larger, more convenient locations and the completion of minor remodeling of its remaining existing stores.

Capital expenditures totaled $34.1 million for the six-month period ended March 26, 2022. These capital expenditures focused on construction on stores opened or scheduled to open in fiscal 2022, site acquisition, and smaller-scale remodeling projects in a number of the Company’s stores. Capital expenditures also included the costs of upgrading and replacing store equipment, technology investments, rolling stock, and capital expenditures related to the Company’s milk processing plant. Capital expenditures were lower this quarter as compared to the same quarter in 2021 due to both increased costs and reduced availability of labor and materials. The Company expects to increase capital expenditures when labor and material costs normalize.

Ingles’ capital expenditure plans for fiscal 2022 currently include investments of approximately $100 to $120 million. The Company currently plans to dedicate the majority of its fiscal 2022 capital expenditures to continued improvement of its store base and also include investments in stores expected to open in fiscal 2022, as well as technology improvements, upgrading and replacing existing store equipment and warehouse and transportation equipment and improvements to the Company’s milk processing plant.

The Company currently expects that its annual capital expenditures will be in the range of approximately $100 to $160 million going forward in order to maintain a modern store base. Among other things, planned expenditures for any given future fiscal year will be affected by the availability of financing, which can affect both the number of projects pursued at any given time and the cost of those projects. The number of projects may also fluctuate due to the varying costs of the types of projects pursued including new stores and

19

major remodel/expansions. The Company makes decisions on the allocation of capital expenditure dollars based on many factors including the competitive environment, other Company capital initiatives and its financial condition.

The Company does not generally enter into commitments for capital expenditures other than on a store-by-store basis at the time it begins construction on a new store or begins a major or minor remodeling project. Outstanding construction commitments totaled $15.6 million at March 26, 2022.

Liquidity

The Company generated $155.5 million net cash from operations in the March 2022 six-month period compared with $114.7 million during the March 2021 six-month period. Cash from operations increased by $40.1 million due to higher net income and less working capital needs during the March 2022 six-month period compared with the March 2021 six-month period.

Cash used by investing activities for the six-month periods ended March 26, 2022 and March 27, 2021 totaled $142.6 million and $68.1 million, respectively, consisting primarily of capital expenditures offset by proceeds from property and equipment sales. Lower current year capital expenditures and increased purchases of short term investments as compared to the prior year period account for the difference in investing activities between the two six-month periods.

Cash used by financing activities totaled $17.6 million for the six-month period ended March 26, 2022, compared with $44.6 million for the six-month period ended March 27, 2021. The decrease is primarily related to the repurchase of common stock during the prior fiscal year, part of which was funded with borrowings under the Line.

In June 2021, the Company issued $350.0 million aggregate principal amount of senior notes due 2031 (the “Notes”). The Notes bear an interest rate of 4.00% per annum and were issued at par. Upon issuance of the Notes, the Company issued an irrevocable notice to redeem the remaining $295.0 million aggregate principle amount of the Company’s 5.75% senior notes due 2023, which the Company redeemed at par value on July 16, 2021.

The Company has a $150.0 million line of credit (the “Line”) that matures in June 2026. The Line provides the Company with various interest rate options based on the prime rate, the Federal Funds Rate, or LIBOR. The Line allows the Company to issue up to $10.0 million in letters of credit, of which no letters of credit were issued at March 26, 2022. The Company is not required to maintain compensating balances in connection with the Line. At March 26, 2022, the Company had no borrowings outstanding under the Line.

In December 2010, the Company completed the funding of $99.7 million of Bonds (the “Bonds”) for the construction of new warehouse and distribution space adjacent to its existing space in Buncombe County, North Carolina (the “Project”). The final maturity date of the Bonds is January 1, 2036.

Under a Continuing Covenant and Collateral Agency Agreement (the “Covenant Agreement”) between certain financial institutions and the Company, the financial institutions would hold the Bonds until December 17, 2029, subject to certain events. Mandatory redemption of the Bonds by the Company in the annual amount of $4.5 million began on January 1, 2014. The outstanding balance of the Bonds is $59.0 million as of March 26, 2022. The Company may redeem the Bonds without penalty or premium at any time prior to December 17, 2029. The Covenant Agreement was amended during the three months ended December 25, 2021, to extend the holding period and reduce the interest rate on the Bonds.

In September 2017, the Company refinanced approximately $60 million secured borrowing obligations with a LIBOR-based amortizing floating rate loan secured by real estate maturing in October 2027.  The Company has an interest rate swap agreement for a current notional amount of $33.5 million at a fixed rate of 3.92%.  Under this agreement, the Company pays monthly the fixed rate of 3.92% and receives the one-month LIBOR plus 1.65%.  The interest rate swap effectively hedges floating rate debt in the same amount as the current notional amount of the interest swap.  Both the floating rate debt and the interest rate swap have monthly principal amortization of $0.5 million and mature October 1, 2027.

In December 2019, the Company closed a $155 million LIBOR-based amortizing floating rate loan secured by real estate maturing in January 2030. The Company has an interest rate swap agreement for a current notional amount of $136.3 million at a fixed rate of 2.95%.  Under this agreement, the Company pays monthly the fixed rate of 2.95% and receives the one-month LIBOR plus 1.50%.  The interest rate swap effectively hedges floating rate debt in the same amount as the current notional amount of the interest swap.  Both the floating rate debt and the interest rate swap have monthly principal amortization of $0.65 million and mature in fiscal year 2030. 

The fair market value of the interest rate swaps are measured quarterly with adjustments recorded in other comprehensive income.

The Company’s long-term debt agreements generally have cross-default provisions which could result in the acceleration of payments due under the Company’s Line, Bonds and Notes indenture in the event of default under any one instrument.

20

The Company’s long-term debt agreements generally contain provisions that under certain circumstances would permit lending institutions to terminate or withdraw their respective extensions of credit to the Company. Included among the triggering factors permitting the termination or withdrawal of the Line to the Company are certain events of default, including both monetary and non-monetary defaults, the initiation of bankruptcy or insolvency proceedings, and the failure of the Company to meet certain financial covenants designated in its respective loan documents. As of March 26, 2022, the Company was in compliance with these covenants. Under the most restrictive of these covenants, the Company would be able to incur approximately $2.3 billion of additional borrowings (including borrowings under the Line) as of March 26, 2022.

The Company’s principal sources of liquidity are expected to be cash flow from operations, borrowings under the Line and long-term debt financing. The Company believes, based on its current results of operations and financial condition, that its financial resources, including the Line, short- and long-term financing expected to be available to it and internally generated funds, will be sufficient to meet planned capital expenditures and working capital requirements for the foreseeable future, including any debt service requirements of additional borrowings. However, there is no assurance that any such sources of financing will be available to the Company when needed on acceptable terms, or at all.

It is possible that, in the future, the Company’s results of operations and financial condition will be different from that described in this report based on a number of factors. These factors may include, among others, increased competition, changing regional and national economic conditions, adverse climatic conditions affecting food production and delivery, changing demographics, and the impact of the COVID-19 pandemic, as well as the additional factors discussed below under “Forward Looking Statements.” It is also possible, for such reasons, that the results of operations from the new, expanded, remodeled and/or replacement stores will not meet or exceed the results of operations from existing stores that are described in this report.

Quarterly Cash Dividends

Since December 27, 1993, the Company has paid regular quarterly cash dividends of $0.165 (sixteen and one-half cents) per share on its Class A Common Stock and $0.15 (fifteen cents) per share on its Class B Common Stock for an annual rate of $0.66 and $0.60 per share, respectively.

The Company expects to continue paying regular cash dividends on a quarterly basis. However, the Board of Directors periodically reconsiders the declaration of dividends. The Company pays these dividends at the discretion of the Board of Directors and the continuation of these payments, the amount of such dividends, and the form in which the dividends are paid (cash or stock) depends upon the results of operations, the financial condition of the Company and other factors which the Board of Directors deems relevant. In addition, the Notes, the Bonds, the Line, and other debt agreements contain provisions that, based on certain financial parameters, restrict the ability of the Company to pay additional cash dividends in excess of current quarterly per share amounts. Further, the Company is prevented from declaring dividends at any time that it is in default under the indenture governing the Notes.

Seasonality

Grocery sales are subject to a slight seasonal variance due to holiday related sales and due to sales in areas where seasonal homes are located. Sales are traditionally higher in the Company’s first fiscal quarter due to the inclusion of sales related to Thanksgiving and Christmas. The Company’s second fiscal quarter traditionally has the lowest sales of the year, unless Easter falls in that quarter. In the third and fourth quarter, sales are affected by the return of customers to seasonal homes in our market area. The Company’s fluid dairy operations have slight seasonal variation to the extent of its sales into the grocery industry. The Company’s real estate activities are not subject to seasonal variations.

Impact of Inflation

As the economy recovers from the initial impact of the COVID-19 pandemic, inflation has reached levels not experienced in decades. Food and energy costs have increased, reflecting a tight labor market and supply chain and transportation disruptions.

The following table from the United States Bureau of Labor Statistics lists annualized changes in the Consumer Price Index that could have an effect on the Company’s operations. One of the Company’s significant costs is labor, which increases with general increases in inflation. Inflation or deflation in energy costs affects the Company’s gasoline sales, distribution expenses and plastic supply costs.

	Twelve Months Ended
	March 2022
All items	8.5	%
Food at home	10.0	%
Energy	32.0	%

‎

21

 Forward Looking Statements

This Quarterly Report contains certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The words “expect”, “anticipate”, “intend”, “plan”, “likely”, “goal”, “believe”, “seek”, “will”, “may”, “would”, “should” and similar expressions are intended to identify forward-looking statements. While these forward-looking statements and the related assumptions are made in good faith and reflect the Company’s current judgment regarding the direction of the Company’s business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested or described by such forward-looking statements. Such statements are based upon a number of assumptions and estimates which are inherently subject to significant risks and uncertainties many of which are beyond the Company’s control. Some of these assumptions inevitably will not materialize, and unanticipated events will occur which will affect the Company’s results. Some important factors (but not necessarily all factors) that affect the Company’s revenues, financial position, growth strategies, profitability and operating results, or that otherwise could cause actual results to differ materially from those expressed in or implied by any forward-looking statement, include the potential continued impact of the COVID-19 pandemic on our business and economic conditions generally in the Company’s operating area; the Company’s ability to successfully implement its expansion and operating strategies and to manage rapid expansion; pricing pressures and other competitive factors; reduction in per gallon retail gasoline prices; the maturation of new and expanded stores; the Company’s ability to reduce costs and achieve improvements in operating results; the availability and terms of financing; increases in labor and utility costs; success or failure in the ownership and development of real estate; changes in the laws and government regulations applicable to the Company; disruptions in the efficient distribution of food products; changes in accounting policies, standards, guidelines or principles as may be adopted by regulatory agencies as well as the Financial Accounting Standards Board; and those factors contained under the heading “Risk Factors” in Item 1A of Part I of our most recent Annual Report on Form 10-K.

Consequently, actual events affecting the Company and the impact of such events on the Company’s operations may vary significantly from those described in this report or contemplated or implied by statements in this report. The Company does not undertake and specifically denies any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except to the extent required by applicable law.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As disclosed elsewhere in this Quarterly Report on Form 10-Q, the Company is a party to interest rate swap agreements for a current aggregate notional amount of $169.8 million. Otherwise, the Company does not typically utilize financial instruments for trading or other speculative purposes, nor does it typically utilize leveraged financial instruments. There have been no other material changes in the market risk factors from those disclosed in the Company’s Annual Report on Form 10-K for the year ended September 25, 2021.

Item 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures designed to provide reasonable assurance of achieving the objective that information in its Exchange Act reports is recorded, processed, summarized and reported within the time periods specified and pursuant to the regulations of the Securities and Exchange Commission. Disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act, include controls and procedures designed to ensure the information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. It should be noted that the Company’s system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met.

As required by SEC Rule 13a-15(b), the Company carried out an evaluation, under the supervision and with participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures as of March 26, 2022, the end of the period covered by this report. In making this evaluation, it considered matters previously identified and disclosed in connection with the filing of its Annual Report on Form 10-K for fiscal 2021. After consideration of the matters discussed above and the changes in internal control over financial reporting discussed below, the Company has concluded that its controls and procedures were effective as of March 26, 2022.

(b) Changes in Internal Control over Financial Reporting

The Company is currently planning and performing tests of internal controls over financial reporting for fiscal year 2022.

No changes in internal control over financial reporting occurred during the Company’s last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

‎

22

Part II. OTHER INFORMATION

Item 6. EXHIBITS

(a) Exhibits.

3.1 * Composite Articles of Incorporation of Ingles Markets, Incorporated

31.1 * Rule 13a-14(a) Certification

31.2 * Rule 13a-14(a) Certification

32.1 ** Certification Pursuant to 18 U.S.C. Section 1350

32.2 ** Certification Pursuant to 18 U.S.C. Section 1350

101 * The following financial information from the Quarterly Report on Form 10-Q for the fiscal quarter ended March 26, 2022, formatted in iXBRL (Inline Extensible Business Reporting Language) and furnished electronically herewith: (i) the Consolidated Statements of Earnings; (ii) the Consolidated Balance Sheets; (iii) the Consolidated Statements of Cash Flows; (iv) the Consolidated Statements of Comprehensive Income; and (v) the Notes to the Consolidated Financial Statements.

104 * Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

________

*Filed herewith.

**Furnished herewith.
‎

23

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

	INGLES MARKETS, INCORPORATED
Date: May 5, 2022	/s/ James W. Lanning
	James W. Lanning
	Chief Executive Officer and President
Date: May 5, 2022	/s/ Patricia E. Jackson
	Patricia E. Jackson, CPA,
	Vice President-Finance and Chief Financial Officer

24

EX-3.1

Exhibit 3.1

THIS COMPOSITE ARTICLES OF INCORPORATION OF INGLES MARKETS, INCORPORATED (THE “CORPORATION”) REFLECTS THE PROVISIONS OF THE CORPORATION’S ARTICLES OF INCORPORATION AND ALL AMENDMENTS THERETO FILED WITH THE NORTH CAROLINA SECRETARY OF STATE THEREAFTER ON OR PRIOR TO MARCH31, 2022, BUT IS NOT AN AMENDMENT AND/OR RESTATEMENT THEREOF.

COMPOSITE

ARTICLES OF INCORPORATION

OF

INGLES MARKETS, INCORPORATED

We, the undersigned natural persons of the age of twenty-one years or more, do hereby associate ourselves into a business corporation under the laws of the State of North Carolina, as contained in Chapter 55 of the General Statutes of North Carolina, entitled “Business Corporation Act”, and the several amendments thereto, and to that end do hereby set forth:

1. The name of the Corporation is INGLES MARKETS, INCORPORATED.

2. The period of duration of the Corporation shall be perpetual.

3. The purpose or purposes for which the Corporation is organized are:

(a) Primarily, to engage in the business of operating retail and wholesale grocery, produce, food and non-food stores, and meat and food markets, bakeries and delicatessen shops;

(b) To operate drug stores, and in connection therewith to buy, sell and dispense drugs, medicines and kindred articles by prescription and by package;

(c) And also to operate farms, hatcheries, broiler plants and butcher shops;

(d) And in connection with the foregoing, to buy, sell, trade and otherwise deal in and with all types and kinds of products of merchandise usually associated with the foregoing businesses and similar types of production and merchandising establishments;

(e) And in connection with the foregoing, to employ the necessary persons required to operate the business or businesses for which this Corporation is organized; and to buy, rent, lease or otherwise acquire the use of storage and warehouse space, buildings and premises for the purpose of operating therein and therefrom, or leasing and subleasing the same;

(f) To purchase, acquire, hold, transfer, and dispose of stocks, bonds, notes, mortgages, and other evidences of indebtedness of any person or corporation, and to issue, execute, and deliver in exchange therefor its stocks, mortgages, notes, or other obligations, and to do all things conducive to the objects herein set forth; and

(g) And in order to properly prosecute the objects and purposes above set forth, this corporation shall have full power and authority to purchase, lease, and otherwise acquire, hold, mortgage, convey, and otherwise dispose of all kinds of property, both real and personal, both in this state and in all other states, territories, and dependencies of the United States; to purchase the business, goodwill, and all other property of any individual firm,  or corporation as a going concern and to assume all its debts, contracts, and obligations, to construct, equip, and maintain buildings, works, factories, and plants, to install, maintain, and operate all kinds of machinery and power, and generally to perform all acts which may be deemed necessary or expedient for the proper and successful prosecution of the objects and purposes for which the corporation is created.

4.

(a) Classes and Number of Shares.  

The total number of shares of all classes of stock which the Corporation shall have authority to issue is 260,000,000. The classes and the aggregate number of shares of stock of each class which the Corporation shall have authority to issue are as follows:

Class	Authorized	Par	Series
Class A Common Stock (hereinafter the Class A Common Stock)	150,000,000	$0.05	N/A
Class B Common Stock (hereinafter the Class B Common Stock)	100,000,000	$0.05	N/A
Preferred Stock	10,000,000	$0.05	As determined by the Board of Directors.

(b) Powers and Rights of the Class A Common Stock and the Class B Common Stock.

1. Dividends and Distributions.  Subject to the rights of holders of Preferred Stock, and subject to any other provisions of these Articles of Incorporation, as amended from time to time, holders of Class A Common Stock and Class B Common Stock shall be entitled to share in all dividends and other distributions in cash, stock or property of the Corporation (in liquidation or otherwise) as may be declared by the Board of Directors from time to time out of assets or cash funds of the Corporation legally available therefor; provided, however, that holders of Class A Common Stock shall be entitled to receive cash dividends and distributions in cash or property (but not Common Stock) of the Corporation in an amount per share equal to one hundred ten percent (110%) of the amount per share payable to the holders of Class B Common Stock; and provided,

further, that in the case of dividends or other distributions payable in stock of the Corporation other than Preferred Stock, including distributions pursuant to stock split-ups, divisions or combinations, only shares of Class A Common Stock will be distributed with respect to Class A Common Stock and only shares of Class B Common Stock will be distributed with respect to Class B Common Stock. In no event will shares of either Class A Common Stock or Class B Common Stock be split, divided or combined unless the other Class of Common Stock is also split, divided or combined proportionately.

2. Voting Rights and Powers. If there is no Class A Common Stock outstanding, subject to the issuance of any series of voting Preferred Stock, holders of Class B Common Stock shall have exclusive voting power. If Class A Common Stock is issued and outstanding, the voting rights of the Class A Common Stock and Class B Common Stock shall be as follows:

(A) Holders of Class A Common Stock and Class B Common Stock shall in all matters not specified in paragraph (B), (C), (D) or (E) of this Article 4(b)(2) vote together as a single class; provided that holders of Class A Common Stock shall have one vote per share and holders of Class B Common Stock shall have ten votes per share.

(B) With respect to the election of directors, holders of Class A Common Stock voting as a separate class shall be entitled to elect that number of directors which constitutes twenty-five percent (25%) of the authorized number of members of the Board of Directors (rounded up to the next whole number if the fraction which results from the multiplication of the authorized number of members of the Board of Directors by twenty-five percent (25%) is equal to or greater than one-half and rounded down to the whole number if such fraction is less than one-half). Holders of Class B Common Stock voting as a separate class shall be entitled to elect those authorized directors which holders of the Class A Common Stock are not entitled to elect.

(C) In accordance with the General Statutes of North Carolina, holders of Class A Common Stock shall be entitled to vote as a separate class on the removal, with or without cause, of any director elected by holders of Class A Common Stock, and holders of Class B Common Stock shall be entitled to vote as a separate class on the removal, with or without cause, of any director elected by the holders of Class B Common Stock.

(D) Holders of Class A Common Stock and Class B Common Stock shall be entitled to vote as a separate class on such other matters as may be required by law or these Articles of Incorporation to be submitted to such holders voting as separate classes.

(E) Any vacancy in the office of a director elected by holders of Class A Common Stock may be filled by a vote of such holders voting as a separate

class, and any vacancy in the office of a director elected by holders of Class B Common Stock may be filled by a vote of such holders voting as separate class and, in the absence of a stockholder vote, in the case of a vacancy in the office of a director elected by either class, any vacancy may be filled by the remaining directors as provided in the Corporation’s By-laws. Any director elected by the Board of Directors to fill a vacancy shall serve until the next annual meeting of the stockholders and until his or her successor has been chosen and has qualified. If permitted by the Corporation’s By-laws, the Board of Directors may increase the number of directors and any vacancies so created may be filled by the Board of Directors.

(F) [Reserved.]

(G) Holders of Class B Common Stock will not have the right to elect directors as set forth in paragraphs (B) and (E) ofthis Article 4(b)(2)if, on the record date for any stockholder meeting at which directors are to be elected, the number of issued and outstanding shares of Class B Common Stock is less than twelve and one-half percent (12.5%)of the aggregate number of issued and outstanding shares of Class A Common Stock and Class B Common Stock. In such event, those directors to be elected at such meeting other than by holders of Class A Common Stock voting as a class shall be elected by holders of Class A Common Stock and Class B Common Stock voting together as a single class; provided that, with respect to said election, holders of Class A Common Stock shall have one vote per share and holders of Class B Common Stock shall have ten votes per share.

(H) Notwithstanding anything in this Article 4(b)(2) to the contrary, subject to the issuance of any series of voting Preferred Stock, holders of Class A Common Stock shall have exclusive voting power on all matters at any meeting of stockholders if there is no Class B Common Stock issued and outstanding as of the record date for such stockholder meeting.

3. Other Rights.  Except as otherwise required by the North Carolina Business Corporation Act or as otherwise provided in these Articles of Incorporation, each share of Class A Common Stock and each share of Class B Common Stock shall have identical powers, preferences andrights, including rights in liquidation.

4. Transfer.

(A) Any transfer of shares of Class B Common Stock other than to a “Qualified Transferee,” as hereinafter defined, shall be conclusively deemed to constitute an election by the holder thereof to convert said shares of Class B Common Stock into an equal number of shares of Class A Common Stock.   As used herein, the term “Qualified Transferee” means any one or more of: (i) any holder of Class B Common Stock that is a holder of Class B

Common Stock immediately preceding the transfer, or (ii) any Immediate Family Member, as hereinafter defined, of a holder of Class B Common Stock on the date of transfer, or (iii) in the event of death or legal disability of a holder of Class B Common Stock, (a) such holder’s executor, administrator or personal representative, or (iv) the Ingles Markets, Incorporated Profit Sharing Plan and Trust, or (iv) any participant in the Ingles Markets, Incorporated Profit Sharing Plan and Trust that holds shares of Class B Common Stock in the participant’s Plan account on the date of transfer, or (v) a trust for the benefit of (a) the transferor, or (b) any Immediate Family Member of the transferor, or (c) any holder of Class B Common Stock, or (d) any Immediate Family Member of a holder of Class B Common Stock, or any descendant of Robert P. Ingle (individually referred to as a “Qualified Beneficiary”), if the trustee of such trust is (w) the transferor or an Immediate Family Member of the transferor, or (x) a holder of Class B Common Stock, or (y) an Immediate Family Member of a holder of Class B Common Stock, or (z) a descendant of Robert P. Ingle (individually referred to as a “Qualified Trustee”), or (vi) a beneficiary of a trust described in the immediately preceding clause (v) or, (vii) a trust for the benefit of a beneficiary of a trust described in clause (v) if the trustee of such second trust is a Qualified Trustee, or (viii) any corporation, limited liability company, partnership or other entity that is controlled on the date of transfer by (a) the transferor, (b) an Immediate Family Member of the transferor, or (c) any one or more persons or entities that are each (w) a holder of Class B Common Stock on the date of transfer, or (x) an Immediate Family Member of a holder of Class B Common Stock on the date of transfer, or (z) a descendant of Robert P. Ingle.  For purposes of clause (viii) of the immediately preceding sentence, “control” means (a) the ownership of more than 50% of the voting securities or other voting interest of any entity, or (b) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through ownership of voting securities, by contract or other agreement, as a general partner, as a manager or otherwise.  Any shares of Class B Common Stock transferred beneficially but not of record may be denied the right to vote and receive payment of dividends until the shares have been transferred of record.  “Immediate Family Member” shall mean a person’s spouse, parents and such parent’s descendants.  Any transfer by a deceased holder’s executor, administrator or personal representative shall be deemed made by the deceased holder.

(B) Notwithstanding anything to the contrary set forth herein, any holder of Class B Common Stock may pledge such holder's shares of Class B Common Stock to a pledgee pursuant to a bona fide pledge of such shares as collateral security for indebtedness due to the pledgee, provided that such shares shall remain subject to the provisions of this Article 4(b)(4). In the event of foreclosure or other similar action by the pledgee, such pledged shares of Class B Common Stock shall be (a) be transferred only to a

Qualified Transferee of the pledgor or (b) converted into shares of Class A Common Stock and transferred to the pledgee.

(C) The Corporation may, in connection with preparing a list of shareholders entitled to vote at any meeting of shareholders, or as a condition to the transfer or the registration of shares of Class B Common Stock on theCorporation's books, require the furnishing of such affidavits or other proof as it deems necessary to establish that any person is the beneficial owner of shares of Class B Common Stock or is a Qualified Transferee.

5. Conversion Rights.

(A) Subject to the terms and conditions of this Article 4(b)(5)(A), each share of Class B Common Stock shall be convertible at any time or from time to time, at the option of the respective holder thereof, at the office of any transfer agent for Class B Common Stock, and at such other place or places, if any, as the Board of Directors may designate, into one (1) fully paid and nonassessable share of Class A Common Stock. In order to convert Class B Common Stock into Class A common Stock, the holder thereof shall (a) surrender the certificate or certificates for such Class B Common Stock at the office of said transfer agent (or other place as provided above), which certificate or certificates shall be duly endorsed to the Corporation or in blank or accompanied by proper instruments of transfer to the Corporation (such endorsements or instruments of transfer to be in form satisfactory to the Corporation ), and (b) give written notice to the Corporation that such holder elects to convert said Class B Common Stock, which notice shall state the name or names in which such holder wishes the certificate or certificates for Class A Common Stock to be issued. The Corporation will issue and deliver at the office of said transfer agent (or other place as provided above) to the person for whose account such Class B Common Stock was so surrendered, or to his nominee or nominees, a certificate or certificates for the number of full shares of Class A Common Stock to which such holder shall be entitled as soon as practicable after such deposit of a certificate or certificates of Class B Common Stock, accompanied by the requisite written notice. Such conversion shall be deemed to have been made as of the date of such surrender of the Class B Common Stock to be converted; and the persons entitled to receive the Class A Common Stock issuable upon conversion of such Class B Common Stock shall be treated for all purposes as the record holder or holders of such Class A Common Stock on such date.

(B) The Corporation covenants that it will at all times reserve and keep available, solely for the purpose of issuance upon conversion of the outstanding shares of Class B Common Stock, such number of shares of Class A Common Stock as shall be issuable upon the conversion of all such outstanding Class B Common Stock.

(c) Preferred Stock.

1. Preferred Stock may be issued in one or more series and may be with such voting powers, full or limited, or without voting powers, and with such conversion rights, designations, preferences, liquidation rights, and relative, participating, optional or other special rights, and qualifications, limitations or restrictions thereof, as shall be fixed by the Board of Directors pursuant to authority hereby expressly granted to it, but as shall be stated and expressed in the resolution or resolutions authorizing the issuance of such stock adopted by the Board of Directors pursuant to authority expressly vested in it by these provisions.

2. Any Preferred Stock or series thereof may be made subject to redemption at such time or times and at such price or prices as shall be stated and expressed in the resolution or resolutions authorizing the issuance of such stock adopted by the Board of Directors as hereinabove provided.

3. Holders of Preferred Stock or of any series thereof shall be entitled to receive dividends at such rates, on such conditions and at such times as shall be stated and expressed in the resolution or resolutions authorizing the issuance of such stock adopted by the Board of Directors as hereinabove provided, payable in preference to, or in such relation to, the dividends payable on any other class or classes of stock and cumulative or noncumulative as shall be so stated and expressed.

4. Holders of Preferred Stock or of any class or of any series thereof, shall be entitled to such rights upon the dissolution of, or upon any distribution of the assets of the Corporation as shall be stated and expressed in the resolution or resolutions, authorizing the issuance of such stock adopted by  the Board of Directors as hereinabove provided.

5. Subject to the provisions of Article 4(d)(1) below, any Preferred Stock of any class or of any series thereof may be made convertible into, or exchangeable for, shares of any other class or classes or of any other series of the same or of any other class or classes of stock of the Corporation or shares of any class or series of stock of any other corporation, at such price or prices as shall be stated and expressed in the resolution or resolutions authorizing the issuance of such Preferred Stock adopted by the Board of Directors as hereinabove provided.

(d) Issuance of Class A Common Stock, Class B Common Stock and Preferred Stock.

1. The Corporation may not effect the issuance or sale of any additional shares of Class B Common Stock except in connection with (a) stock splits and stock dividends to which Class A Common Stock and Class B Common Stock are each subject proportionately and upon the same terms and (b) the exercise of outstanding options to purchase Class B Common Stock.

2. The Board of Directors of the Corporation may from time to time authorize by resolution the issuance of any or all shares of Class A Common Stock, Preferred Stock and, subject to Article 4(d)(1), Class B Common Stock herein authorized in accordance with the terms and conditions set forth in these Articles of Incorporation for such purposes, in such amounts, to such persons, corporations, or entities, for such consideration and, in the case of Preferred Stock, in one or more series, all as the Board of Directors in its discretion may determine and without any vote or other action by the shareholders, except as otherwise required by law. At any time shares of Class B Common Stock are outstanding, the Board of Directors may not issue shares of Class A Common Stock in the form of a distribution or distributions pursuant to a stock dividend or split-up, division or combination of the shares of Class A Common Stock except where such shares are issuable both (a) only to holders of the then outstanding shares of Class A Common Stock, and (b) only in conjunction with and in the same ratio as a stock dividend or split-up, division or combination of the shares of Class B Common Stock.

5. The minimum amount of consideration with which the Corporation shall commence business is Thirty Thousand ($30,000) Dollars.

6. The name and address of the initial registered office of the Corporation is INGLES MARKETS, INCORPORATED, 570 Hendersonville Road, Asheville, Buncombe County, North Carolina, and the name of the initial registered agent at such address is ROBERT P. INGLE.

7. [Reserved.]

8. This Corporation shall have authority to do and perform any other acts necessary for or related to the purposes for which it is organized, and as provided by the laws of North Carolina and other states in which it may become authorized to transact business, whether or not herein stipulated.

9. The shareholders of the Corporation shall have no preemptive rights to acquire additional or treasury shares of any class of stock in the Corporation.

10. No director of the Corporation shall have personal liability arising out of an action whether by or in the right of the Corporation or otherwise for monetary damages for breach of his or her duty as a director; provided, however, that the foregoing shall not limit or eliminate the personal liability of a director with respect to (i) acts or omissions not made in good faith that such director at the time of such breach knew or believed were in conflict with the best interests of the Corporation, (ii) any liability under Section 55-32 of the North Carolina General Statutes or any successor provision, (iii) any transaction from which such director derived an improper personal benefit, or (iv) acts or omissions occurring prior to the date of the effectiveness of this Article. As used in this Article, “improper personal benefit” does not include a director’s compensation or other incidental benefit for or on account of his or her service as a director, officer, employee, independent contractor, attorney or consultant of the Corporation.

Furthermore, notwithstanding the foregoing provision, in the event that Section 55-7 or any other provisions of the North Carolina General Statutes is amended or enacted to permit further limitation or elimination of the personal liability of a director, the personal liability of the Corporation’s directors shall be limited or eliminated to the fullest extent permitted by the applicable law.

This Article shall not affect a charter or by-law provision or contract or resolution of the Corporation indemnifying or agreeing to indemnify a director against personal liability. Any repeal or modification of this Article shall not adversely effect any limitation hereunder on the personal liability of a director with respect to acts or omissions occurring prior to such repeal or modification.

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO 17 CFR 240.13a-14

PROMULGATED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James W. Lanning, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Ingles Markets, Incorporated;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s first fiscal quarter) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):  

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process,summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5,  2022

/s/ James W. Lanning

James W. Lanning

Chief Executive Officer and President

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO 17 CFR 240.13a-14

PROMULGATED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, PatriciaE.  Jackson, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Ingles Markets, Incorporated;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s first fiscal quarter) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):  

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process,summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

6

Date: May5,  2022

/s/ PatriciaE.  Jackson

Patricia E. Jackson

Vice President - Finance and

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Ingles Markets, Incorporated (the “Company”) on Form 10-Q for the period endedMarch 26,  2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James W. Lanning, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ James W. Lanning

James W. Lanning

Chief Executive Officer and President

May5,  2022

The foregoing certification is being furnished as an exhibit of the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 and, accordingly, is not being filed with the Securities and Exchange Commission as part of the Report and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Act of 1934, as amended (whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing).

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Ingles Markets, Incorporated (the “Company”) on Form 10-Q for the period ended March 26,  2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, PatriciaE.  Jackson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ PatriciaE.  Jackson

PatriciaE.  Jackson

Vice President - Finance and

Chief Financial Officer

May5,  2022

The foregoing certification is being furnished as an exhibit of the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 and, accordingly, is not being filed with the Securities and Exchange Commission as part of the Report and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Act of 1934, as amended (whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing).

XML

Document And Entity Information - shares	6 Months Ended
	Mar. 26, 2022	May 02, 2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 26, 2022
Document Transition Report	false
Entity File Number	0-14706
Entity Registrant Name	INGLES MARKETS, INCORPORATED
Entity Incorporation, State or Country Code	NC
Entity Tax Identification Number	56-0846267
Entity Address, Address Line One	P.O. Box 6676
Entity Address, City or Town	Asheville
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28816
City Area Code	828
Local Phone Number	669-2941
Title of 12(b) Security	Class A Common Stock, $0.05 par value per share
Trading Symbol	IMKTA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Current Fiscal Year End Date	--09-24
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Entity Central Index Key	0000050493
Amendment Flag	false
Class A Common Stock
Entity Common Stock, Shares Outstanding		14,355,235
Class B Common Stock
Entity Common Stock, Shares Outstanding		4,639,141

XML

Condensed Consolidated Balance Sheets - USD ($)	Mar. 26, 2022	Sep. 25, 2021
Current Assets:
Cash and cash equivalents	$ 65,624,291	$ 70,313,350
Short term investments	115,007,106	5,000,000
Receivables - net	98,010,655	95,082,014
Inventories	397,891,256	389,953,456
Other current assets	24,906,417	15,091,595
Total current assets	701,439,725	575,440,415
Property and equipment – net	1,343,410,698	1,370,769,432
Operating lease right of use assets	41,667,691	40,145,098
Other assets	37,658,397	31,989,010
Total assets	2,124,176,511	2,018,343,955
Current Liabilities:
Current portion of long-term debt	17,618,760	17,600,739
Current portion of operating lease liabilities	8,395,245	8,635,998
Accounts payable - trade	188,102,503	189,432,027
Accrued expenses and current portion of other long-term liabilities	73,872,036	90,428,567
Total current liabilities	287,988,544	306,097,331
Deferred income taxes	73,964,000	72,768,000
Long-term debt	560,832,573	571,913,204
Noncurrent operating lease liabilities	35,461,720	33,887,935
Other long-term liabilities	45,078,425	50,418,947
Total liabilities	1,003,325,262	1,035,085,417
Stockholders’ Equity
Preferred stock, $0.05 par value; 10,000,000 shares authorized; no shares issued
Accumulated other comprehensive income	5,463,160	(3,426,140)
Retained earnings	1,114,438,370	985,734,959
Total stockholders’ equity	1,120,851,249	983,258,538
Total liabilities and stockholders’ equity	2,124,176,511	2,018,343,955
Class A Common Stock
Stockholders’ Equity
Common stocks	716,262	713,567
Class B Common Stock
Stockholders’ Equity
Common stocks	$ 233,457	$ 236,152

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 26, 2022	Sep. 25, 2021
Preferred stock, par value	$ 0.05
Preferred stock, shares authorized	10,000,000
Preferred stock, shares issued	0
Class A Common Stock
Common stock, par value	$ 0.05
Common stock, shares authorized	150,000,000
Common stock, shares issued	14,325,235	14,271,335
Common stock, shares outstanding	14,325,235	14,271,335
Class B Common Stock
Common stock, par value	$ 0.05
Common stock, shares authorized	100,000,000
Common stock, shares issued	4,669,141	4,723,041
Common stock, shares outstanding	4,669,141	4,723,041

XML

Condensed Consolidated Statements Of Income And Other Comprehensive Income - USD ($)	3 Months Ended		6 Months Ended
	Mar. 26, 2022	Mar. 27, 2021	Mar. 26, 2022	Mar. 27, 2021
Net sales	$ 1,377,118,668	$ 1,184,554,737	$ 2,768,648,179	$ 2,374,997,878
Cost of goods sold	1,028,556,135	874,054,346	2,069,541,379	1,750,309,345
Gross profit	348,562,533	310,500,391	699,106,800	624,688,533
Operating and administrative expenses	254,739,175	236,850,173	514,824,580	475,049,250
Gain from sale or disposal of assets	1,265,254	663,278	1,209,226	1,114,997
Income from operations	95,088,612	74,313,496	185,491,446	150,754,280
Other income, net	1,344,269	645,287	2,936,323	1,337,304
Interest expense	5,425,534	6,194,790	10,839,405	12,595,503
Income before income taxes	91,007,347	68,763,993	177,588,364	139,496,081
Income tax expense	22,366,000	16,575,000	42,758,000	33,483,000
Net income	68,641,347	52,188,993	134,830,364	106,013,081
Other comprehensive income (expense):
Change in fair value of interest rate swap	9,896,413	6,755,876	11,763,300	9,519,614
Income tax (expense) benefit	(2,418,000)	(1,650,000)	(2,874,000)	(2,325,000)
Other comprehensive income (expense), net of tax	7,478,413	5,105,876	8,889,300	7,194,614
Comprehensive income	$ 76,119,760	$ 57,294,869	$ 143,719,664	$ 113,207,695
Class A Common Stock
Per share amounts:
Basic earnings per common share	$ 3.70	$ 2.65	$ 7.26	$ 5.38
Diluted earnings per common share	3.61	2.58	7.10	5.24
Cash dividends per common share	0.165	0.165	0.33	0.33
Class B Common Stock
Per share amounts:
Basic earnings per common share	3.36	2.41	6.60	4.89
Diluted earnings per common share	3.36	2.41	6.60	4.89
Cash dividends per common share	$ 0.150	$ 0.150	$ 0.30	$ 0.30

XML

Condensed Consolidated Statements Of Changes In Stockholders' Equity - USD ($)	Class A Common Stock Common Stock [Member]	Class B Common Stock Common Stock [Member]	Paid-in Capital in Excess of Par Value	Accumulated Other Comprehensive Loss [Member]	Retained Earnings	Total
Balance at Sep. 26, 2020	$ 710,618	$ 302,371	$ 12,311,249	$ (10,251,296)	$ 816,258,015	$ 819,330,957
Balance (in shares) at Sep. 26, 2020	14,212,360	6,047,416
Net income					53,824,087	53,824,087
Other comprehensive income, net of income tax				2,088,738		2,088,738
Cash dividends					(3,252,151)	(3,252,151)
Common stock conversions	$ 409	$ (409)
Common stock conversions (in shares)	8,175	(8,175)
Balance at Dec. 26, 2020	$ 711,027	$ 301,962	12,311,249	(8,162,558)	866,829,951	871,991,631
Balance (in shares) at Dec. 26, 2020	14,220,535	6,039,241
Balance at Sep. 26, 2020	$ 710,618	$ 302,371	12,311,249	(10,251,296)	816,258,015	819,330,957
Balance (in shares) at Sep. 26, 2020	14,212,360	6,047,416
Net income						106,013,081
Other comprehensive income, net of income tax						7,194,614
Balance at Mar. 27, 2021	$ 712,665	$ 237,054		(3,056,682)	848,142,599	846,035,636
Balance (in shares) at Mar. 27, 2021	14,253,285	4,741,091
Balance at Dec. 26, 2020	$ 711,027	$ 301,962	12,311,249	(8,162,558)	866,829,951	871,991,631
Balance (in shares) at Dec. 26, 2020	14,220,535	6,039,241
Net income					52,188,993	52,188,993
Other comprehensive income, net of income tax				5,105,876		5,105,876
Cash dividends					(3,252,276)	(3,252,276)
Stock repurchases, at cost		$ (63,270)	$ (12,311,249)		(67,624,069)	(79,998,588)
Stock repurchases, at cost, Shares		(1,265,400)
Common stock conversions	$ 1,638	$ (1,638)
Common stock conversions (in shares)	32,750	(32,750)
Balance at Mar. 27, 2021	$ 712,665	$ 237,054		(3,056,682)	848,142,599	846,035,636
Balance (in shares) at Mar. 27, 2021	14,253,285	4,741,091
Balance at Sep. 25, 2021	$ 713,567	$ 236,152		(3,426,140)	985,734,959	983,258,538
Balance (in shares) at Sep. 25, 2021	14,271,335	4,723,041
Net income					66,189,018	66,189,018
Other comprehensive income, net of income tax				1,410,887		1,410,887
Cash dividends					(3,063,227)	(3,063,227)
Common stock conversions	$ 1,665	$ (1,665)
Common stock conversions (in shares)	33,300	(33,300)
Balance at Dec. 25, 2021	$ 715,232	$ 234,487		(2,015,253)	1,048,860,750	1,047,795,216
Balance (in shares) at Dec. 25, 2021	14,304,635	4,689,741
Balance at Sep. 25, 2021	$ 713,567	$ 236,152		(3,426,140)	985,734,959	983,258,538
Balance (in shares) at Sep. 25, 2021	14,271,335	4,723,041
Net income						134,830,364
Other comprehensive income, net of income tax						8,889,300
Balance at Mar. 26, 2022	$ 716,262	$ 233,457		5,463,160	1,114,438,370	1,120,851,249
Balance (in shares) at Mar. 26, 2022	14,325,235	4,669,141
Balance at Dec. 25, 2021	$ 715,232	$ 234,487		(2,015,253)	1,048,860,750	1,047,795,216
Balance (in shares) at Dec. 25, 2021	14,304,635	4,689,741
Net income					68,641,347	68,641,347
Other comprehensive income, net of income tax				7,478,413		7,478,413
Cash dividends					(3,063,727)	(3,063,727)
Common stock conversions	$ 1,030	$ (1,030)
Common stock conversions (in shares)	20,600	(20,600)
Balance at Mar. 26, 2022	$ 716,262	$ 233,457		$ 5,463,160	$ 1,114,438,370	$ 1,120,851,249
Balance (in shares) at Mar. 26, 2022	14,325,235	4,669,141

XML

Condensed Consolidated Statements Of Cash Flows - USD ($)	6 Months Ended
	Mar. 26, 2022	Mar. 27, 2021
Cash Flows From Operating Activities:
Net income	$ 134,830,364	$ 106,013,081
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	59,264,873	60,205,801
Non cash operating lease cost	3,493,003	4,011,403
Gain from sale or disposal of assets	(1,209,226)	(1,114,997)
Receipt of advance payments on purchases contracts	1,147,709	775,000
Recognition of advance payments on purchases contracts	(1,494,340)	(1,511,486)
Deferred income taxes	(1,678,000)	858,000
Changes in operating assets and liabilities:
Receivables	(2,928,641)	(7,442,313)
Inventory	(7,937,800)	(19,763,979)
Other assets	(8,462,044)	(1,415,060)
Operating lease liabilities	(3,682,564)	(4,199,960)
Accounts payable and accrued expenses	(15,861,984)	(21,731,932)
Net Cash Provided By Operating Activities	155,481,350	114,683,558
Cash Flows From Investing Activities:
Purchase of short term investments	(110,007,106)
Proceeds from sales of property and equipment	1,509,285	1,356,964
Capital expenditures	(34,096,602)	(69,444,630)
Net Cash Used By Investing Activities	(142,594,423)	(68,087,666)
Cash Flows From Financing Activities:
Proceeds from short-term borrowings		600,674,373
Payments on short-term borrowings		(546,496,281)
Principal payments on long-term borrowings	(11,449,032)	(12,317,464)
Stock repurchases		(79,998,588)
Dividends paid	(6,126,954)	(6,504,427)
Net Cash Used By Financing Activities	(17,575,986)	(44,642,387)
Net Increase in Cash and Cash Equivalents	(4,689,059)	1,953,505
Cash and Cash Equivalents at Beginning of Period	70,313,350	6,903,955
Cash and Cash Equivalents at End of Period	$ 65,624,291	$ 8,857,460

XML

Basis Of Preparation

6 Months Ended

Mar. 26, 2022

Basis Of Preparation [Abstract]

Basis Of Preparation

A. BASIS OF PREPARATION

In the opinion of management, the accompanying unaudited interim financial statements contain all adjustments necessary to present fairly the Company’s financial position as of March 26, 2022, and the results of operations and changes in stockholders’ equity for the three-month and six-month periods ended March 26, 2022 and March 27, 2021, and cash flows for the six months ended March 26, 2022 and March 27, 2021. The adjustments made are of a normal recurring nature. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. It is suggested that these unaudited interim financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 25, 2021, filed with the Securities Exchange Commission on November 24, 2021.

The results of operations for the three-month and six-month periods ended March 26, 2022 are not necessarily indicative of the results to be expected for the full fiscal year.

XML

New Accounting Pronouncements

6 Months Ended

Mar. 26, 2022

New Accounting Pronouncements [Abstract]

New Accounting Pronouncements

B. NEW ACCOUNTING PRONOUNCEMENTS

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting in response to the risk of cessation of the London Interbank Offered Rate (“LIBOR”). This amendment provides for optional expedients and exceptions for applying generally accepted accounting principles to contracts and hedging relationships that are affected by LIBOR and other reference rates. The ASU generally allows for hedge accounting to continue if the hedge was highly effective or met other standards prior to reference rate reform. Entities are permitted to apply the amendments to all contracts, cash flow and net investment hedge relationships that exist as of March 12, 2020. The relief provided in this ASU is only available for a limited time, generally through December 31, 2022. The Company’s debt agreements and interest rate swaps that utilize LIBOR have not yet discontinued the use of LIBOR and, therefore, this ASU is not yet effective for us. To the extent our debt and interest rate swap arrangements change to another accepted rate, we will utilize the relief in this ASU to continue hedge accounting.

XML

Allowance For Doubtful Accounts

6 Months Ended

Mar. 26, 2022

Allowance For Doubtful Accounts [Abstract]

Allowance For Doubtful Accounts

D. ALLOWANCE FOR DOUBTFUL ACCOUNTS

Receivables are presented net of an allowance for doubtful accounts of $602,000 at March 26, 2022 and $157,000 at September 25, 2021.

XML

Short Term Investments

6 Months Ended

Mar. 26, 2022

Short Term Investments [Abstract]

Short Term Investments

C. SHORT TERM INVESTMENTS

The Company purchases financial products that can be readily converted into cash, and the Company accounts for such financial products as short-term investments. The financial products include money market funds, bonds and mutual funds. The carrying values of the Company’s short-term investments approximate fair value because of their liquidity.

XML

Income Taxes

6 Months Ended

Mar. 26, 2022

Income Taxes [Abstract]

Income Taxes

E. INCOME TAXES

The Company’s effective tax rate differs from the federal statutory rate primarily as a result of state income taxes and tax credits.

The Company has unrecognized tax benefits and could incur interest and penalties related to uncertain tax positions. These amounts are insignificant and are not expected to significantly increase or decrease within the next twelve months.

XML

Accrued Expenses And Current Portion Of Other Long-Term Liabilities

6 Months Ended

Mar. 26, 2022

Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract]

Accrued Expenses And Current Portion Of Other Long-Term Liabilities

F. ACCRUED EXPENSES AND CURRENT PORTION OF OTHER LONG-TERM LIABILITIES

Accrued expenses and current portion of other long-term liabilities consist of the following:

	March 26,		September 25,
	2022		2021
Property, payroll and other taxes payable	$	14,013,131	$	22,621,486
Salaries, wages and bonuses payable		38,052,944		45,890,517
Self-insurance liabilities		13,346,387		13,319,556
Interest payable		4,411,506		4,481,104
Other		4,048,068		4,115,904
	$	73,872,036	$	90,428,567

Self-insurance liabilities are established for general liability claims, workers’ compensation and employee group medical and dental benefits based on claims filed and estimates of claims incurred but not reported. The Company is currently insured for covered costs in excess of $1.0 million per occurrence for workers’ compensation and for general liability and $450,000 per covered person for medical care benefits for a policy year. The Company’s self-insurance reserves totaled $32.3 million and $32.1 million at March 26, 2022 and September 25, 2021, respectively. Of this amount, $13.3 million is accounted for as a current liability and $19.0 million as a long-term liability, which is inclusive of $4.2 million of expected self-insurance recoveries from excess cost insurance or other sources that are recorded as a receivable at March 26, 2022. At September 25, 2021, $13.3 million was accounted for as a current liability and $18.8 million as a long-term liability, which is inclusive of $4.2 million of expected self-insurance recoveries from excess cost insurance or other sources that are recorded as a receivable.

Employee insurance expense, including workers’ compensation and medical care benefits, net of employee contributions, totaled $7.0 million and $8.2 million for the three-month periods ended March 26, 2022 and March 27, 2021, respectively. For the six-month periods ended March 26, 2022 and March 27, 2021, employee insurance expense, net of employee contributions totaled $20.3 million and $20.5 million, respectively.

The Company’s fuel operations contain underground tanks for the storage of gasoline and diesel fuel. The Company reviewed FASB Accounting Standards Codification Topic 410 (“FASB ASC 410”) and determined we have a legal obligation to remove tanks at a point in the future and accordingly determined we have met the requirements of an asset retirement obligation. The Company followed the FASB ASC 410 model for determining the asset retirement cost and asset retirement obligation. The amounts recorded are immaterial for each fuel center as well as in the aggregate at March 26, 2022 and September 25, 2021.

XML

Long-Term Debt

6 Months Ended

Mar. 26, 2022

Long-Term Debt [Abstract]

Long-Term Debt

G. LONG-TERM DEBT

In June 2021, the Company issued at par $350.0 million aggregate principal amount of 4.00% senior notes due in 2031 (the “Notes”). The Company may redeem all or a portion of the Notes at any time at the following redemption prices (expressed as percentages of the principal amount), if redeemed during the 12-month period beginning June 15 of the years indicated below:

Year
2026	102.000%
2027	101.333%
2028	100.667%
2029 and thereafter	100.000%

The Company had a $175.0 million line of credit that was scheduled to mature in September 2022. In June 2021, the Company replaced that line by entering into a $150.0 million line of credit (the “Line”) that matures in June 2026. The Line provides the Company with various interest rate options based on the prime rate, the Federal Funds Rate, or LIBOR. The Line allows the Company to issue up to $10.0 million in letters of credit, of which none were issued at March 26, 2022. The Company is not required to maintain compensating balances in connection with the Line. At March 26, 2022, the Company had no borrowings outstanding under the Line.

In December 2010, the Company completed the funding of $99.7 million of bonds (the “Bonds”) for construction of new warehouse and distribution space adjacent to its existing space in Buncombe County, North Carolina (the “Project”). The final maturity date of the Bonds is January 1, 2036.

Under a Continuing Covenant and Collateral Agency Agreement (the “Covenant Agreement”) between certain financial institutions and the Company, the financial institutions would hold the Bonds until December 2029, subject to certain events. Mandatory redemption of the Bonds by the Company in the annual amount of $4.5 million began on January 1, 2014. The outstanding balance of the Bonds was $59.0 million as of March 26, 2022. The Company may redeem the Bonds without penalty or premium at any time prior to December 17, 2029. The Covenant Agreement was amended during the quarter ended December 25, 2021 to extend the holding period and reduce the interest rate on the Bonds.

Interest earned by bondholders on the Bonds is exempt from Federal and North Carolina income taxation. The interest rate on the Bonds is equal to one-month LIBOR (adjusted monthly) plus a credit spread, adjusted to reflect the income tax exemption.

The Company’s obligation to repay the Bonds is collateralized by the Project. The Covenant Agreement incorporates substantially all financial covenants included in the Line.

In September 2017, the Company refinanced approximately $60 million secured borrowing obligations with a LIBOR-based amortizing floating rate loan secured by real estate maturing in October 2027.  The Company has an interest rate swap agreement for a current notional amount of $33.5 million at a fixed rate of 3.92%.  Under this agreement, the Company pays monthly the fixed rate of 3.92% and receives the one-month LIBOR plus 1.65%.  The interest rate swap effectively hedges floating rate debt in the same amount as the current notional amount of the interest swap.  Both the floating rate debt and the interest rate swap have monthly principal amortization of $0.5 million and mature October 1, 2027.

In December 2019, the Company closed a $155 million LIBOR-based amortizing floating rate loan secured by real estate maturing in January 2030. The Company has an interest rate swap agreement for a current notional amount of $136.3 million at a fixed rate of 2.95%.  Under this agreement, the Company pays monthly the fixed rate of 2.95% and receives the one-month LIBOR plus 1.50%.  The interest rate swap effectively hedges floating rate debt in the same amount as the current notional amount of the interest swap.  Both the floating rate debt and the interest rate swap have monthly principal amortization of $0.65 million and mature in fiscal year 2030.

The Company recognizes differences between the variable rate interest payments and the fixed interest rate settlements with the swap counterparties as an adjustment to interest expense each period over the life of the swaps. The Company has designated the swaps as cash flow hedges and records the changes in the estimated fair value of the swaps to other comprehensive income each period. For the three- and six-month periods ended March 26, 2022, the Company recorded $7.5 million and $8.9 million of other comprehensive income, respectively, net of income taxes, in its Consolidated Statements of Comprehensive Income. Unrealized gains of $7.2 million were recorded as an asset at fair value in the line “Other Assets” on the Consolidated Balance Sheet as of March 26, 2022. For the three- and six-month periods ended March 27, 2021, the Company recorded $5.1 million and $7.2 million of other comprehensive income, respectively, net of income taxes, in its Consolidated Statements of Comprehensive Income. Unrealized losses of $4.0 million were recorded as a liability at fair value in the line “Other Long Term Liabilities” on the Consolidated Balance Sheet as of March 27, 2021.

The Company’s long-term debt agreements generally contain provisions that under certain circumstances would permit lending institutions to terminate or withdraw their respective extensions of credit to the Company. Included among the triggering factors permitting the termination or withdrawal of the Line to the Company are certain events of default, including both monetary and non-monetary defaults, the initiation of bankruptcy or insolvency proceedings, and the failure of the Company to meet certain financial covenants designated in its respective loan documents. The Company was in compliance with all financial covenants at March 26, 2022.

The Company’s long-term debt agreements generally have cross-default provisions which could result in the acceleration of payments due under all long-term debt agreements in the event of default under any one instrument.

At March 26, 2022, property and equipment with an undepreciated cost of approximately $274.4 million was pledged as collateral for long-term debt. Long-term debt and Line agreements contain various restrictive covenants requiring, among other things, minimum levels of net worth and maintenance of certain financial ratios. At March 26, 2022, the Company had excess net worth totaling $305.9 million calculated under covenants in the Notes, the Bonds, the Loan, and the Line. This amount is available to pay dividends; however, certain loan agreements containing provisions outlining minimum tangible net worth requirements restrict the ability of the Company to pay cash dividends in excess of the current annual per share dividends paid on the Company’s Class A and Class B Common Stock. Further, the Company is prevented from paying cash dividends at any time that it is in default under the indenture governing the Notes. In addition, the terms of the indenture may restrict the ability of the Company to pay additional cash dividends based on certain financial parameters.

XML

Dividends

6 Months Ended

Mar. 26, 2022

Dividends [Abstract]

Dividends

H. DIVIDENDS

The Company paid cash dividends of $0.165 for each share of Class A Common Stock and $0.15 for each share of Class B Common Stock on October 14, 2021 to stockholders of record on October 7, 2021.

The Company paid cash dividends of $0.165 for each share of Class A Common Stock and $0.15 for each share of Class B Common Stock on January 13, 2022 to stockholders of record on January 6, 2022.

For additional information regarding the dividend rights of the Class A Common Stock and Class B Common Stock, please see Note 8, “Stockholders’ Equity” to the Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K filed by the Company with the Securities Exchange Commission on November 24, 2021.

XML

Earnings Per Common Share

6 Months Ended

Mar. 26, 2022

Earnings Per Common Share [Abstract]

Earnings Per Common Share

I. EARNINGS PER COMMON SHARE

The Company has two classes of common stock: Class A, which is publicly traded, and Class B, which has no public market. The Class B Common Stock has restrictions on transfer; however, each share is convertible into one share of Class A Common Stock at any time. Each share of Class A Common Stock has one vote per share and each share of Class B Common Stock has ten votes per share. Each share of Class A Common Stock is entitled to receive cash dividends equal to 110% of any cash dividend paid on Class B Common Stock.

The Company calculates earnings per share using the two-class method in accordance with FASB ASC Topic 260.

The two-class method of computing basic earnings per share for each period reflects the cash dividends declared per share for each class of stock, plus allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Diluted earnings per share is calculated assuming the conversion of all shares of Class B Common Stock to shares of Class A Common Stock on a share-for-share basis. The tables below reconcile the numerators and denominators of basic and diluted earnings per share for current and prior periods.

	Three Months Ended				Six Months Ended
	March 26, 2022				March 26, 2022
	Class A		Class B		Class A		Class B
Numerator: Allocated net income
Net income allocated, basic	$	52,934,311	$	15,707,036	$	103,831,190	$	30,999,174
Conversion of Class B to Class A shares		15,707,036		—		30,999,174		—
Net income allocated, diluted	$	68,641,347	$	15,707,036	$	134,830,364	$	30,999,174
Denominator: Weighted average shares outstanding
Weighted average shares outstanding, basic		14,320,981		4,673,395		14,299,096		4,695,280
Conversion of Class B to Class A shares		4,673,395		—		4,695,280		—
Weighted average shares outstanding, diluted		18,994,376		4,673,395		18,994,376		4,695,280
Earnings per share
Basic	$	3.70	$	3.36	$	7.26	$	6.60
Diluted	$	3.61	$	3.36	$	7.10	$	6.60

	Three Months Ended				Six Months Ended
	March 27, 2021				March 27, 2021
	Class A		Class B		Class A		Class B
Numerator: Allocated net income
Net income allocated, basic	$	37,772,564	$	14,416,429	$	76,588,658	$	29,424,423
Conversion of Class B to Class A shares		14,416,429		—		29,424,423		—
Net income allocated, diluted	$	52,188,993	$	14,416,429	$	106,013,081	$	29,424,423
Denominator: Weighted average shares outstanding
Weighted average shares outstanding, basic		14,233,200		5,970,954		14,223,381		6,008,584
Conversion of Class B to Class A shares		5,970,954		—		6,008,584		—
Weighted average shares outstanding, diluted		20,204,154		5,970,954		20,231,965		6,008,584
Earnings per share
Basic	$	2.65	$	2.41	$	5.38	$	4.89
Diluted	$	2.58	$	2.41	$	5.24	$	4.89

XML

Leases

6 Months Ended

Mar. 26, 2022

Leases [Abstract]

Leases

J. LEASES

Leases as Lessee

The Company conducts part of its retail operations from leased facilities. The initial terms of the leases are generally 20 years. The majority of the leases includes one or more renewal options and provide that the Company pay property taxes, utilities, repairs and certain other costs incidental to occupation of the premises. Several leases contain clauses calling for percentage rentals based upon gross sales of the supermarket occupying the leased space. Step rent provisions, escalation clauses and lease incentives are taken into account in computing minimum lease payments.

Operating lease cost for all operating leases totaled $3.0 million for the three months ended March 26, 2022 and $5.6 million for the six months ended March 26, 2022. This amount includes short-term (less than one year) leases, common area expenses, and variable lease costs, all of which are insignificant. Cash paid for lease liabilities in operating activities approximates operating lease cost.

Maturities of operating lease liabilities as of March 26, 2022 were as follows:

Fiscal Year
Remainder of 2022	$	4,996,500
2023		9,547,692
2024		6,763,393
2025		5,962,685
2026		4,230,737
Thereafter		24,152,866
Total lease payments	$	55,653,873
Less amount representing interest		11,796,908
Present value of lease liabilities	$	43,856,965

On the Condensed Consolidated Balance Sheets, lease extensions exercised during fiscal year 2022 increased the line items “Operating lease right of use assets” and “Noncurrent operating lease liabilities” by $5.0 million each during the six months ended March 26, 2022. The weighted average remaining lease term for the Company’s operating leases is 12.7 years. The weighted average discount rate used to determine lease liability balances as of March 26, 2022 was 3.51%, based on recent Company financings collateralized by store properties.

Leases as Lessor

At March 26, 2022, the Company owned and operated 83 shopping centers in conjunction with its supermarket operations. The Company leases to others a portion of its shopping center properties. The leases are non-cancelable operating lease agreements for periods ranging up to 20 years.

Rental income is included in the line item “Net sales” on the Consolidated Statements of Income. Depreciation on owned properties leased to others and other shopping center expenses are included in the line item “Cost of goods sold” on the Consolidated Statements of Income.

		Three Months Ended		Six Months Ended
		March 26, 2022		March 26, 2022
Rents earned on owned and subleased properties:
Base rentals	$	4,773,104	$	9,670,462
Variable rentals		67,892		135,784
Total		4,840,996		9,806,246
Depreciation on owned properties leased to others		(1,463,937)		(2,927,875)
Other shopping center expenses		(670,365)		(1,318,152)
Total	$	2,706,694	$	5,560,219

Future minimum operating lease receipts at March 26, 2022 were as follows:

Fiscal Year
Remainder of 2022	$	7,530,608
2023		13,805,776
2024		12,605,769
2025		11,241,965
2026		8,353,538
Thereafter		34,011,392
Total minimum future rental income	$	87,549,048

XML

Segment Information

6 Months Ended

Mar. 26, 2022

Segment Information [Abstract]

Segment Information

K. SEGMENT INFORMATION

The Company operates one primary business segment, retail grocery sales. “Other” includes our remaining operations - fluid dairy and shopping center rentals. Information about the Company’s operations by lines of business (amounts in thousands) is as follows:

	Three Months Ended				Six Months Ended
	March 26,		March 27,		March 26,		March 27,
	2022		2021		2022		2021
Revenues from unaffiliated customers:
Grocery	$	482,179	$	427,219	$	970,585	$	869,339
Non-foods		289,419		268,799		594,091		548,487
Perishables		355,651		320,493		720,001		641,756
Gasoline		200,192		130,679		391,025		241,148
Total Retail	$	1,327,441	$	1,147,190	$	2,675,702	$	2,300,730
Other		49,678		37,365		92,946		74,268
Total revenues from unaffiliated customers	$	1,377,119	$	1,184,555	$	2,768,648	$	2,374,998
Income from operations:
Retail	$	88,663	$	67,645	$	174,162	$	139,164
Other		6,426		6,668		11,329		11,590
Total income from operations	$	95,089	$	74,313	$	185,491	$	150,754

	March 26,		September 25,
	2022		2021
Assets:
Retail	$	1,893,939	$	1,794,160
Other		233,375		226,762
Elimination of intercompany receivable		(3,137)		(2,578)
Total assets	$	2,124,177	$	2,018,344

The grocery category includes grocery, dairy, and frozen foods.

The non-foods category includes alcoholic beverages, tobacco, pharmacy, and health/beauty/cosmetic products.

The perishables category includes meat, produce, deli and bakery.

The fluid dairy operation had $13.1 million and $12.3 million in sales to the retail grocery segment for the three-month periods ended March 26, 2022 and March 27, 2021, respectively. The fluid dairy had $25.6 million and $23.7 million in sales to the retail grocery segment for the six-month periods ended March 26, 2022 and March 27, 2021, respectively. These sales have been eliminated in consolidation and are excluded from the amounts in the table above.

XML

Fair Values Of Financial Instruments

6 Months Ended

Mar. 26, 2022

Fair Values Of Financial Instruments [Abstract]

Fair Values Of Financial Instruments

L. FAIR VALUES OF FINANCIAL INSTRUMENTS

The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments.

The fair value of the Company’s debt and interest rate swaps are estimated using valuation techniques under the accounting guidance related to fair value measurements based on observable and unobservable inputs. Observable inputs reflect readily available data from independent sources, while unobservable inputs reflect the Company’s market assumptions. These inputs are classified into the following hierarchy:

‎

Level 1 Inputs –	Quoted prices for identical assets or liabilities in active markets.
Level 2 Inputs –	Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3 Inputs –	Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation.

The carrying amount and fair value of the Company’s debt, interest rate swaps, and non-qualified retirement plan assets at March 26, 2022 were as follows (in thousands):

	Carrying				Fair Value
	Amount		Fair Value		Measurements
Senior Notes	$	350,000	$	327,250	Level 2
Facility Bonds		58,970		58,970	Level 2
Secured notes payable and other		169,481		169,462	Level 2
Interest rate swap derivative contracts asset		(7,232)		(7,232)	Level 2
Non-qualified retirement plan assets		19,702		19,702	Level 2

The fair values for Level 2 measurements were determined primarily using market yields and taking into consideration the underlying terms of the instrument.

XML

Commitments And Contingencies

6 Months Ended

Mar. 26, 2022

Commitments And Contingencies [Abstract]

Commitments And Contingencies

M. COMMITMENTS AND CONTINGENCIESVarious legal proceedings and claims arising in the ordinary course of business are pending against the Company. In the opinion of management, the ultimate liability, if any, from all pending legal proceedings and claims is not expected to materially affect the Company’s financial position, the results of its operations, or its cash flows.

XML

Related Party Transactions

6 Months Ended

Mar. 26, 2022

Related Party Transactions [Abstract]

Related Party Transactions

N. RELATED PARTY TRANSACTIONS

The Company will from time to time make short-term non-interest bearing loans to the Company’s Investment/Profit Sharing Plan to allow the plan to meet distribution obligations during a time when the plan was prohibited from selling shares of the Company’s Class A Common Stock. During the three months ended March 26, 2022, there were no such loans made, repaid or outstanding.

XML

Accrued Expenses And Current Portion Of Other Long-Term Liabilities (Tables)

6 Months Ended

Mar. 26, 2022

Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract]

Accrued Expenses And Current Portion Of Other Long-Term Liabilities

	March 26,		September 25,
	2022		2021
Property, payroll and other taxes payable	$	14,013,131	$	22,621,486
Salaries, wages and bonuses payable		38,052,944		45,890,517
Self-insurance liabilities		13,346,387		13,319,556
Interest payable		4,411,506		4,481,104
Other		4,048,068		4,115,904
	$	73,872,036	$	90,428,567

XML

Long-Term Debt (Tables)

6 Months Ended

Mar. 26, 2022

Long-Term Debt [Abstract]

Schedule Of Redemption Prices Of Senior Notes

Year
2026	102.000%
2027	101.333%
2028	100.667%
2029 and thereafter	100.000%

XML

Earnings Per Common Share (Tables)

6 Months Ended

Mar. 26, 2022

Earnings Per Common Share [Abstract]

Reconciliation Of Numerators And Denominators Of Basic And Diluted Earnings Per Share

	Three Months Ended				Six Months Ended
	March 26, 2022				March 26, 2022
	Class A		Class B		Class A		Class B
Numerator: Allocated net income
Net income allocated, basic	$	52,934,311	$	15,707,036	$	103,831,190	$	30,999,174
Conversion of Class B to Class A shares		15,707,036		—		30,999,174		—
Net income allocated, diluted	$	68,641,347	$	15,707,036	$	134,830,364	$	30,999,174
Denominator: Weighted average shares outstanding
Weighted average shares outstanding, basic		14,320,981		4,673,395		14,299,096		4,695,280
Conversion of Class B to Class A shares		4,673,395		—		4,695,280		—
Weighted average shares outstanding, diluted		18,994,376		4,673,395		18,994,376		4,695,280
Earnings per share
Basic	$	3.70	$	3.36	$	7.26	$	6.60
Diluted	$	3.61	$	3.36	$	7.10	$	6.60

	Three Months Ended				Six Months Ended
	March 27, 2021				March 27, 2021
	Class A		Class B		Class A		Class B
Numerator: Allocated net income
Net income allocated, basic	$	37,772,564	$	14,416,429	$	76,588,658	$	29,424,423
Conversion of Class B to Class A shares		14,416,429		—		29,424,423		—
Net income allocated, diluted	$	52,188,993	$	14,416,429	$	106,013,081	$	29,424,423
Denominator: Weighted average shares outstanding
Weighted average shares outstanding, basic		14,233,200		5,970,954		14,223,381		6,008,584
Conversion of Class B to Class A shares		5,970,954		—		6,008,584		—
Weighted average shares outstanding, diluted		20,204,154		5,970,954		20,231,965		6,008,584
Earnings per share
Basic	$	2.65	$	2.41	$	5.38	$	4.89
Diluted	$	2.58	$	2.41	$	5.24	$	4.89

XML

Leases (Tables)

6 Months Ended

Mar. 26, 2022

Leases [Abstract]

Maturities Of Operating Lease Liabilities

Fiscal Year
Remainder of 2022	$	4,996,500
2023		9,547,692
2024		6,763,393
2025		5,962,685
2026		4,230,737
Thereafter		24,152,866
Total lease payments	$	55,653,873
Less amount representing interest		11,796,908
Present value of lease liabilities	$	43,856,965

Schedule Of Rental Income

		Three Months Ended		Six Months Ended
		March 26, 2022		March 26, 2022
Rents earned on owned and subleased properties:
Base rentals	$	4,773,104	$	9,670,462
Variable rentals		67,892		135,784
Total		4,840,996		9,806,246
Depreciation on owned properties leased to others		(1,463,937)		(2,927,875)
Other shopping center expenses		(670,365)		(1,318,152)
Total	$	2,706,694	$	5,560,219

Future Minimum Operating Lease Receipts

Fiscal Year
Remainder of 2022	$	7,530,608
2023		13,805,776
2024		12,605,769
2025		11,241,965
2026		8,353,538
Thereafter		34,011,392
Total minimum future rental income	$	87,549,048

XML

Segment Information (Tables)

6 Months Ended

Mar. 26, 2022

Segment Information [Abstract]

Operations By Lines Of Business

	Three Months Ended				Six Months Ended
	March 26,		March 27,		March 26,		March 27,
	2022		2021		2022		2021
Revenues from unaffiliated customers:
Grocery	$	482,179	$	427,219	$	970,585	$	869,339
Non-foods		289,419		268,799		594,091		548,487
Perishables		355,651		320,493		720,001		641,756
Gasoline		200,192		130,679		391,025		241,148
Total Retail	$	1,327,441	$	1,147,190	$	2,675,702	$	2,300,730
Other		49,678		37,365		92,946		74,268
Total revenues from unaffiliated customers	$	1,377,119	$	1,184,555	$	2,768,648	$	2,374,998
Income from operations:
Retail	$	88,663	$	67,645	$	174,162	$	139,164
Other		6,426		6,668		11,329		11,590
Total income from operations	$	95,089	$	74,313	$	185,491	$	150,754

	March 26,		September 25,
	2022		2021
Assets:
Retail	$	1,893,939	$	1,794,160
Other		233,375		226,762
Elimination of intercompany receivable		(3,137)		(2,578)
Total assets	$	2,124,177	$	2,018,344

XML

Fair Values Of Financial Instruments (Tables)

6 Months Ended

Mar. 26, 2022

Fair Values Of Financial Instruments [Abstract]

Carrying Amount And Fair Value Of Debt, Interest Rate Swap And Non-Qualified Plan Assets

	Carrying				Fair Value
	Amount		Fair Value		Measurements
Senior Notes	$	350,000	$	327,250	Level 2
Facility Bonds		58,970		58,970	Level 2
Secured notes payable and other		169,481		169,462	Level 2
Interest rate swap derivative contracts asset		(7,232)		(7,232)	Level 2
Non-qualified retirement plan assets		19,702		19,702	Level 2

XML

Allowance For Doubtful Accounts (Narrative) (Details) - USD ($)	Mar. 26, 2022	Sep. 25, 2021
Allowance For Doubtful Accounts [Abstract]
Allowance for doubtful accounts receivable	$ 602,000	$ 157,000

XML

Accrued Expenses And Current Portion Of Other Long-Term Liabilities (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 26, 2022	Mar. 27, 2021	Mar. 26, 2022	Mar. 27, 2021	Sep. 25, 2021
Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract]
Workers' compensation per occurrence covered under insurance cost	$ 1,000		$ 1,000
Medical care benefits per person covered under insurance cost	450		450
Self insurance liabilities	32,300		32,300		$ 32,100
Self insurance liabilities, current	13,300		13,300		13,300
Self insurance liabilities, noncurrent	19,000		19,000		18,800
Receivable for expected self-insurance recoveries from excess cost insurance	4,200		4,200		$ 4,200
Employee insurance expense	$ 7,000	$ 8,200	$ 20,300	$ 20,500

XML

Accrued Expenses And Current Portion Of Other Long-Term Liabilities (Accrued Expenses And Current Portion Of Other Long-Term Liabilities) (Details) - USD ($)	Mar. 26, 2022	Sep. 25, 2021
Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract]
Property, payroll and other taxes payable	$ 14,013,131	$ 22,621,486
Salaries, wages and bonuses payable	38,052,944	45,890,517
Self-insurance liabilities	13,346,387	13,319,556
Interest payable	4,411,506	4,481,104
Other	4,048,068	4,115,904
Total	$ 73,872,036	$ 90,428,567

XML

Long-Term Debt (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Mar. 26, 2022	Mar. 27, 2021	Mar. 26, 2022	Mar. 27, 2021	Sep. 25, 2021	Jun. 30, 2021	Jun. 26, 2021	May 31, 2021	Dec. 31, 2019	Dec. 31, 2010
Debt Instrument [Line Items]
Annual amount of redemption of bonds		$ 4,500,000		$ 4,500,000
Mandatory bonds redemption beginning period				Jan. 01, 2014
Mandatory bonds redemption period end date				Dec. 17, 2029
Derivative notional amount		136,300,000		$ 136,300,000
Other comprehensive income, net of income taxes		9,896,413	$ 6,755,876	11,763,300	$ 9,519,614
Other long-term liabilities		45,078,425	4,000,000.0	45,078,425	4,000,000.0	$ 50,418,947
Property and equipment with undepreciated cost pledge as collateral for long term debt		274,400,000		274,400,000
Excess net worth calculated under covenants in the Notes, the Bonds, and the Line		305,900,000		305,900,000
Cash Flow Hedging [Member]
Debt Instrument [Line Items]
Other comprehensive income, net of income taxes			$ 5,100,000		$ 7,200,000
Interest Rate Swap at Fixed Rate of 3.92% [Member]
Debt Instrument [Line Items]
Unrealized gain on cash flow hedge				(7,200,000)
Other comprehensive expense, net of income taxes		$ 7,500,000		$ 8,900,000
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member]
Debt Instrument [Line Items]
Maturity period of senior notes				2031
Senior Notes, Interest Rate of 4.00%, Maturing 2031 [Member]
Debt Instrument [Line Items]
Debt instrument principal amount								$ 350,000,000.0
Debt instrument stated interest rate		4.00%		4.00%
Secured Debt Maturing January 2030 [Member]
Debt Instrument [Line Items]
Debt instrument principal amount										$ 155,000,000
Derivative, fixed interest rate		2.95%		2.95%
Debt instrument variable interest rate				1.50%
Monthly principal amortization				$ 650,000
Secured Debt Maturing 2037 [Member]
Debt Instrument [Line Items]
Debt maturity date	Oct. 01, 2027
Secured borrowing	$ 60,000,000
Derivative notional amount		$ 33,500,000		$ 33,500,000
Derivative, fixed interest rate		3.92%		3.92%
Derivative maturity date				Oct. 01, 2027
Monthly principal amortization				$ 500,000
Secured Debt Maturing 2037 [Member] | One-Month LIBOR [Member]
Debt Instrument [Line Items]
Debt instrument variable interest rate				1.65%
Line of credit Maturing September 2022 [Member]
Debt Instrument [Line Items]
Line of credit facility borrowing capacity									$ 175,000,000.0
Recovery Zone Facility Bonds [Member]
Debt Instrument [Line Items]
Debt maturity date				Jan. 01, 2036
Description of interest rate on bonds				The interest rate on the Bonds is equal to one-month LIBOR (adjusted monthly) plus a credit spread, adjusted to reflect the income tax exemption.
Debt instrument outstanding amount		$ 59,000,000.0		$ 59,000,000.0							$ 99,700,000
Credit Line [Member]
Debt Instrument [Line Items]
Line of credit facility borrowing capacity							$ 150.0
Credit Line [Member] | Unused Letters Of Credit [Member]
Debt Instrument [Line Items]
Line of credit facility borrowing capacity		$ 10,000,000.0		$ 10,000,000.0

XML

Long-Term Debt (Schedule Of Redemption Prices Of Senior Notes) (Details)	6 Months Ended
	Mar. 26, 2022
2026 [Member]
Debt instrument, redemption price as percentage of principal amount	102.00%
2027 [Member]
Debt instrument, redemption price as percentage of principal amount	101.333%
2028 [Member]
Debt instrument, redemption price as percentage of principal amount	100.667%
2029 and thereafter [Member]
Debt instrument, redemption price as percentage of principal amount	100.00%

XML

Dividends (Narrative) (Details) - $ / shares			3 Months Ended		6 Months Ended
	Jan. 13, 2022	Oct. 14, 2021	Mar. 26, 2022	Mar. 27, 2021	Mar. 26, 2022	Mar. 27, 2021
Class A Common Stock
Dividends Payable [Line Items]
Cash dividends per share of common stock			$ 0.165	$ 0.165	$ 0.33	$ 0.33
Class B Common Stock
Dividends Payable [Line Items]
Cash dividends per share of common stock			$ 0.150	$ 0.150	$ 0.30	$ 0.30
Dividend 1 [Member]
Dividends Payable [Line Items]
Dividend payment date		Oct. 14, 2021
Dividend record date					Oct. 07, 2021
Dividend 1 [Member] | Class A Common Stock
Dividends Payable [Line Items]
Cash dividends per share of common stock		$ 0.165
Dividend 1 [Member] | Class B Common Stock
Dividends Payable [Line Items]
Cash dividends per share of common stock		$ 0.15
Dividend 2 [Member]
Dividends Payable [Line Items]
Dividend payment date					Jan. 13, 2022
Dividend record date					Jan. 06, 2022
Dividend 2 [Member] | Class A Common Stock
Dividends Payable [Line Items]
Cash dividends per share of common stock	$ 0.165
Dividend 2 [Member] | Class B Common Stock
Dividends Payable [Line Items]
Cash dividends per share of common stock	$ 0.15

XML

Earnings Per Common Share (Narrative) (Details)	6 Months Ended
	Mar. 26, 2022 item
Earnings Per Share [Line Items]
Number of classes of common stock	2
Conversion feature for Class B Common Stock	each share is convertible into one share of Class A Common Stock at any time
Voting rights for shareholders	Each share of Class A Common Stock has one vote per share and each share of Class B Common Stock has ten votes per share
Percentage of cash dividend on Class B Common Stock entitled to receive for each share of Class A Common Stock	110.00%
Class A Common Stock
Earnings Per Share [Line Items]
Number of votes for common stock	1
Class B Common Stock
Earnings Per Share [Line Items]
Number of votes for common stock	10

XML

Earnings Per Common Share (Reconciliation Of Numerators And Denominators Of Basic And Diluted Earnings Per Share) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 26, 2022	Mar. 27, 2021	Mar. 26, 2022	Mar. 27, 2021
Class A Common Stock
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items]
Net income allocated, basic	$ 52,934,311	$ 37,772,564	$ 103,831,190	$ 76,588,658
Conversion of Class B to Class A shares	15,707,036	14,416,429	30,999,174	29,424,423
Net income allocated, diluted	$ 68,641,347	$ 52,188,993	$ 134,830,364	$ 106,013,081
Weighted average shares outstanding, basic	14,320,981	14,233,200	14,299,096	14,223,381
Conversion of Class B to Class A shares	4,673,395	5,970,954	4,695,280	6,008,584
Weighted average shares outstanding, diluted	18,994,376	20,204,154	18,994,376	20,231,965
Earnings per share, Basic	$ 3.70	$ 2.65	$ 7.26	$ 5.38
Earnings per share, Diluted	$ 3.61	$ 2.58	$ 7.10	$ 5.24
Class B Common Stock
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items]
Net income allocated, basic	$ 15,707,036	$ 14,416,429	$ 30,999,174	$ 29,424,423
Net income allocated, diluted	$ 15,707,036	$ 14,416,429	$ 30,999,174	$ 29,424,423
Weighted average shares outstanding, basic	4,673,395	5,970,954	4,695,280	6,008,584
Weighted average shares outstanding, diluted	4,673,395	5,970,954	4,695,280	6,008,584
Earnings per share, Basic	$ 3.36	$ 2.41	$ 6.60	$ 4.89
Earnings per share, Diluted	$ 3.36	$ 2.41	$ 6.60	$ 4.89

XML

Leases (Narrative) (Details)	3 Months Ended	6 Months Ended
	Mar. 26, 2022 USD ($)	Mar. 26, 2022 USD ($) item	Sep. 25, 2021 USD ($)
Operating Leased Assets [Line Items]
Initial terms of leases	20 years	20 years
Operating lease cost	$ 3,000,000.0	$ 5,600,000
Number of shopping centers owned and operated | item		83
Lessor non-cancelable operating lease agreements	20 years	20 years
Weighted average remaining lease term	12 years 8 months 12 days	12 years 8 months 12 days
Weighted average discount rate	3.51%	3.51%
Operating Lease, Liability, Noncurrent	$ 35,461,720	$ 35,461,720	$ 33,887,935
Lease Extensions [Member]
Operating Leased Assets [Line Items]
Operating Lease, Liability, Noncurrent	$ 5,000,000.0	$ 5,000,000.0

XML

Leases (Maturities Of Operating Lease Liabilities) (Details)	Mar. 26, 2022 USD ($)
Leases [Abstract]
Remainder of 2022	$ 4,996,500
2023	9,547,692
2024	6,763,393
2025	5,962,685
2026	4,230,737
Thereafter	24,152,866
Total lease payments	55,653,873
Less amount representing interest	11,796,908
Present value of lease liabilities	$ 43,856,965

XML

Leases (Schedule Of Rental Income) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 26, 2022	Mar. 26, 2022
Property Held For Lease And Rental Income [Abstract]
Base rentals	$ 4,773,104	$ 9,670,462
Variable rentals	67,892	135,784
Total	4,840,996	9,806,246
Depreciation on owned properties leased to others	(1,463,937)	(2,927,875)
Other shopping center expenses	(670,365)	(1,318,152)
Total	$ 2,706,694	$ 5,560,219

XML

Leases (Schedule Of Minimum Future Rental Income On Non-cancelable Operating Leases) (Details)	Mar. 26, 2022 USD ($)
Property Held For Lease And Rental Income [Abstract]
Remainder of 2022	$ 7,530,608
2023	13,805,776
2024	12,605,769
2025	11,241,965
2026	8,353,538
Thereafter	34,011,392
Total minimum future rental income	$ 87,549,048

XML

Segment Information (Narrative) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 26, 2022 USD ($)	Mar. 27, 2021 USD ($)	Mar. 26, 2022 USD ($) segment	Mar. 27, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment			1
Fluid dairy [Member]
Segment Reporting Information [Line Items]
Sales eliminated in consolidation | $	$ 13.1	$ 12.3	$ 25.6	$ 23.7

XML

Segment Information (Operations By Lines Of Business) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 26, 2022	Mar. 27, 2021	Mar. 26, 2022	Mar. 27, 2021	Sep. 25, 2021
Segment Reporting Information By Segment [Line Items]
Total revenues from unaffiliated customers	$ 1,377,118,668	$ 1,184,554,737	$ 2,768,648,179	$ 2,374,997,878
Total income from operations	95,088,612	74,313,496	185,491,446	150,754,280
Total assets	2,124,176,511		2,124,176,511		$ 2,018,343,955
Elimination of intercompany receivable [Member]
Segment Reporting Information By Segment [Line Items]
Total assets	(3,137,000)		(3,137,000)		(2,578,000)
Grocery [Member]
Segment Reporting Information By Segment [Line Items]
Total revenues from unaffiliated customers	482,179,000	427,219,000	970,585,000	869,339,000
Non-foods [Member]
Segment Reporting Information By Segment [Line Items]
Total revenues from unaffiliated customers	289,419,000	268,799,000	594,091,000	548,487,000
Perishables [Member]
Segment Reporting Information By Segment [Line Items]
Total revenues from unaffiliated customers	355,651,000	320,493,000	720,001,000	641,756,000
Gasoline [Member]
Segment Reporting Information By Segment [Line Items]
Total revenues from unaffiliated customers	200,192,000	130,679,000	391,025,000	241,148,000
Retail Segment [Member]
Segment Reporting Information By Segment [Line Items]
Total revenues from unaffiliated customers	1,327,441,000	1,147,190,000	2,675,702,000	2,300,730,000
Total income from operations	88,663,000	67,645,000	174,162,000	139,164,000
Total assets	1,893,939,000		1,893,939,000		1,794,160,000
Other Segment [Member]
Segment Reporting Information By Segment [Line Items]
Total revenues from unaffiliated customers	49,678,000	37,365,000	92,946,000	74,268,000
Total income from operations	6,426,000	$ 6,668,000	11,329,000	$ 11,590,000
Total assets	$ 233,375,000		$ 233,375,000		$ 226,762,000

XML

Fair Values Of Financial Instruments (Carrying Amount And Fair Value Of Debt, Interest Rate Swap And Non-Qualified Plan Assetst) (Details) - Level 2 [Member] $ in Thousands	Mar. 26, 2022 USD ($)
Carrying Amount [Member] | Non-qualified retirement plan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Retirement plan assets	$ 19,702
Fair Value [Member] | Non-qualified retirement plan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Retirement plan assets	19,702
Senior Notes, net of unamortized original issue discount [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	350,000
Senior Notes, net of unamortized original issue discount [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	327,250
Recovery Zone Facility Bonds [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	58,970
Recovery Zone Facility Bonds [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	58,970
Interest rate swaps derivative contract [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contract asset	(7,232)
Interest rate swaps derivative contract [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contract asset	(7,232)
Secured notes payable and other [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	169,481
Secured notes payable and other [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	$ 169,462