Option Activity

Information related to stock options under the Restated Employee Equity Incentive Plan and the Stock Option Plan for

Non-Employee

Directors is summarized as follows:


	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term in Years		Aggregate Intrinsic Value (in thousands)
Outstanding at December 28, 2019		315,678		$	186.53
Granted		25,870			383.22
Forfeited		(2,595	)		241.84
Expired		—			—
Exercised		(57,926	)		120.81

Outstanding at June 27, 2020		281,027		$	217.67		6.14	$	97,280
Exercisable at June 27, 2020		92,818		$	185.56		5.11	$	35,110
Vested and expected to vest at June 27, 2020		256,784		$	216.12		6.09	$	89,287

Of the total options outstanding at June 27, 2020,

40,000 shares were performance-based options for which the performance criteria had yet to be achieved.

On January 31, 2020, the Company granted options to purchase an aggregate of 978 shares of the Company’s Class A Common Stock to the Company’s newly appointed non-employee Director. These options have a weighted average fair value of $146.87 per share, of which all shares vested immediately.

On March 1, 2020, the Company granted options to purchase an aggregate of 14,962 shares of the Company’s Class A Common Stock to senior management with a weighted average fair value of $142.25 per share, of which all shares relate to performance-based stock options.

On March 2, 2020, the Company granted options to purchase an aggregate of 7,030 shares of the Company’s Class A Common Stock to the Company’s newly appointed Chief People Officer with a weighted average fair value of $142.23 per share, of which all shares relate to performance-based stock options.

On May 14, 2020, the Company granted options to purchase an aggregate of 2,900 shares of the Company’s Class A Common Stock to the Company’s

non-employee

Directors. These options have a weighted average fair value of $198.14 per share. All of the options vested immediately on the date of the grant.

Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows:


	2020
Expected Volatility		32.6	%
Risk-free interest rate		1.09	%
Expected Dividends		0.0	%
Exercise factor		2.12 times
Discount for post-vesting restrictions		0.0	%

Non-Vested

Shares Activity

The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards:


	Number of Shares			Weighted Average Fair Value
Non-vested at December 28, 2019		122,142		$	213.52
Granted		40,316			325.12
Vested		(45,169	)		213.12
Forfeited		(3,318	)		241.05

Non-vested at June 27, 2020		113,971		$	252.36

Of the total shares outstanding at June 27, 2020, 3,000 shares were performance-based shares for which the performance criteria had yet to be achieved.

On March 1, 2020, the Company granted 15,011 shares of restricted stock units to certain officers, senior managers and key employees, of which all shares vest ratably over service periods of four years. Additionally on March 1, 2020, the Company granted a combined 13,482 shares of restricted stock units to select senior management employees with various service and performance based vesting conditions. On March 1, 2020, employees elected to purchase 9,127 shares under the Company’s investment share program. The weighted average fair value of the restricted stock units and investment shares, which are sold to employees at discount under its investment share program, was $370.79 and $169.43 per share, respectively.

On March 2, 2020 the Company granted its newly appointed Chief People Officer 2,696 shares of restricted stock units with a weighted-average fair value of $370.79 per share with service based vesting through 2024.

Stock-Based Compensation

The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying consolidated statements of comprehensive income:


	Thirteen weeks ended				Twenty-six weeks ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
	(in thousands)				(in thousands)
Amounts included in advertising, promotional and selling expenses	$	1,147	$	1,121	$	1,852	$	1,598
Amounts included in general and administrative expenses		3,390		2,624		5,251		4,212

Total stock-based compensation expense	$	4,537	$	3,745	$	7,103	$	5,810