VITAL FARMS, INC., 10-K filed on 2/27/2025
Annual Report
v3.25.0.1
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 29, 2024
Feb. 24, 2025
Jun. 28, 2024
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 29, 2024    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --12-29    
Entity Registrant Name Vital Farms, Inc.    
Entity Central Index Key 0001579733    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
ICFR Auditor Attestation Flag true    
Security 12b Title Common Stock, - par value $0.0001 per share    
Trading Symbol VITL    
Security Exchange Name NASDAQ    
Document Annual Report true    
Document Transition Report false    
Entity File Number 001-39411    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 27-0496985    
Entity Address, Address Line One 3601 South Congress Avenue    
Entity Address, Address Line Two Suite C100    
Entity Address, City or Town Austin    
Entity Address, State or Province TX    
Entity Address, Postal Zip Code 78704    
City Area Code 877    
Local Phone Number 455-3063    
Entity Common Stock, Shares Outstanding   44,257,535  
Entity Public Float     $ 1,560
Auditor Firm ID 185    
Auditor Name KPMG LLP    
Auditor Location Austin, Texas    
Documents Incorporated by Reference

Portions of the registrant’s definitive proxy statement for the registrant’s 2025 annual meeting of stockholders, to be filed within 120 days after the close of the registrant’s fiscal year, are incorporated by reference into Part III of this Annual Report.

    
Document Financial Statement Error Correction [Flag] false    
v3.25.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 150,601 $ 84,149
Investment securities, available-for-sale 9,692 32,667
Accounts receivable, net of allowance for credit losses of $691 and $550 as of December 29, 2024 and December 31, 2023, respectively 54,342 39,699
Inventories 23,666 32,895
Prepaid expenses and other current assets, net of allowance for credit losses of $240 and $227 as of December 29, 2024 and December 31, 2023, respectively 7,740 6,114
Total current assets 246,041 195,524
Property, plant and equipment, net 84,521 66,839
Operating lease right-of-use assets 19,617 8,911
Goodwill and other assets 9,153 3,904
Total assets 359,332 275,178
Current liabilities:    
Accounts payable 38,582 33,485
Accrued liabilities 31,328 24,218
Operating lease liabilities, current 3,849 3,057
Finance lease liabilities, current 3,932 3,255
Income taxes payable 838 1,206
Total current liabilities 78,529 65,221
Operating lease liabilities, non-current 2,918 5,771
Finance lease liabilities, non-current 8,011 10,481
Other liabilities 572 1,028
Total liabilities 90,030 82,501
Commitments and contingencies (Note 20)
Stockholders’ equity:    
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized as of December 29, 2024 and December 31, 2023; no shares issued and outstanding as of December 29, 2024 and December 31, 2023 0 0
Common stock, $0.0001 par value per share, 310,000,000 shares authorized as of December 29, 2024 and December 31, 2023; 44,042,355 and 41,684,649 shares issued and outstanding as of December 29, 2024 and December 31, 2023, respectively 4 4
Additional paid-in capital 186,182 163,325
Retained earnings 83,113 29,725
Accumulated other comprehensive income (loss) 3 (377)
Total stockholders’ equity 269,302 192,677
Total liabilities and stockholders' equity $ 359,332 $ 275,178
v3.25.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts Receivable, net of allowance for credit losses $ 691 $ 550
Prepaid expenses and other current assets, net of allowance for credit losses $ 240 $ 227
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 310,000,000 310,000,000
Common stock, shares issued 44,042,355 41,684,649
Common stock, shares outstanding 44,042,355 41,684,649
v3.25.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Income Statement [Abstract]      
Net revenue $ 606,307 $ 471,857 $ 362,050
Cost of goods sold 376,381 309,531 252,606
Gross profit 229,926 162,326 109,444
Operating expenses:      
Selling, general and administrative 133,939 101,728 77,236
Shipping and distribution 32,435 27,344 30,104
Total operating expenses 166,374 129,072 107,340
Income from operations 63,552 33,254 2,104
Interest expense (1,010) (782) (114)
Interest income 5,246 2,542 992
Other expense, net (250) (2,813) (151)
Total other income (expense), net 3,986 (1,053) 727
Net income before income taxes 67,538 32,201 2,831
Income tax provision (benefit) 14,150 6,635 1,601
Net income 53,388 25,566 1,230
Less: Net loss attributable to noncontrolling interests 0 0 (21)
Net income attributable to Vital Farms, Inc. common stockholders $ 53,388 $ 25,566 $ 1,251
Earnings Per Share      
Basic: $ 1.25 $ 0.62 $ 0.03
Diluted: $ 1.18 $ 0.59 $ 0.03
Weighted average common shares outstanding:      
Basic: 42,849,660 41,192,544 40,648,592
Diluted: 45,127,128 43,312,836 43,469,586
v3.25.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Statement of Comprehensive Income [Abstract]      
Net income $ 53,388 $ 25,566 $ 1,230
Other comprehensive income (loss), before tax:      
Unrealized net holding gain (loss) 456 1,371 (1,745)
Amounts reclassified for realized losses to earnings 1 182 96
Available-for-sale debt securities, before tax 457 1,553 (1,649)
Other comprehensive income (loss), before tax 457 1,553 (1,649)
Income tax (expense) benefit related to items of other comprehensive income (loss) (77) (383) 383
Other comprehensive income (loss), net of tax 380 1,170 (1,266)
Comprehensive income (loss) 53,768 26,736 (36)
Less: Comprehensive loss attributable to noncontrolling interests 0 0 (21)
Comprehensive income (loss) attributable to Vital Farms, Inc. common stockholders $ 53,768 $ 26,736 $ (15)
v3.25.0.1
CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS EQUITY - USD ($)
$ in Thousands
Total
Redeemable Noncontrolling Interest
Variable Interest Entity, Primary Beneficiary
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive (Loss) Income
Total Stockholders' Equity Attributable to Vital Farms, Inc. Stockholders
Noncontrolling Interests
Beginning Balance at Dec. 26, 2021 $ 151,585   $ 5 $ 149,000 $ 2,746 $ (281) $ 151,470 $ 115
Beginning balance at Dec. 26, 2021   $ 175            
Beginning balance, Shares at Dec. 26, 2021     40,493,969          
Exercise of stock options 685     685     685  
Exercise of stock options, Shares     180,835          
Vesting of restricted stock units (9)     (9)     (9)  
Vesting of restricted stock units, Shares     51,852          
Shares issued under employee stock purchase plan, Shares     20,334          
Stock-based compensation expense 6,040     6,040     6,040  
Dissolution of noncontrolling interest 67 $ (175) $ (1)       (1) 68
Net loss attributable to noncontrolling interests - stockholders (21)       162   162 $ (183)
Other comprehensive income (loss) , net (1,266)         (1,266) (1,266)  
Net income attributable to Vital Farms, Inc. stockholders 1,251       1,251   1,251  
Ending Balance at Dec. 25, 2022 158,332   $ 4 155,716 4,159 (1,547) 158,332  
Ending Balance, Shares at Dec. 25, 2022     40,746,990          
Exercise of stock options 692     692     692  
Exercise of stock options, Shares     737,000          
Vesting of restricted stock units, Shares     217,347          
Shares issued under employee stock purchase plan 296     296     296  
Shares issued under employee stock purchase plan, Shares     25,878          
Shares withheld for tax liability on vested restricted stock units (796)     (796)     (796)  
Shares withheld for tax liability on vested restricted stock units, Shares     (42,566)          
Stock-based compensation expense 7,417     7,417     7,417  
Net loss attributable to noncontrolling interests - stockholders 0              
Other comprehensive income (loss) , net 1,170         1,170 1,170  
Net income attributable to Vital Farms, Inc. stockholders 25,566       25,566   25,566  
Ending Balance at Dec. 31, 2023 $ 192,677   $ 4 163,325 29,725 (377) 192,677  
Ending Balance, Shares at Dec. 31, 2023 41,684,649   41,684,649          
Exercise of stock options $ 13,680     13,680     13,680  
Exercise of stock options, Shares 2,143,468   2,143,468          
Vesting of restricted stock units, Shares     255,570          
Shares issued under employee stock purchase plan $ 419     419     419  
Shares issued under employee stock purchase plan, Shares     26,887          
Shares withheld for tax liability on vested restricted stock units (1,510)     (1,510)     (1,510)  
Shares withheld for tax liability on vested restricted stock units, Shares     (68,219)          
Stock-based compensation expense 10,268     10,268     10,268  
Net loss attributable to noncontrolling interests - stockholders 0              
Other comprehensive income (loss) , net 380         380 380  
Net income attributable to Vital Farms, Inc. stockholders 53,388       53,388   53,388  
Ending Balance at Dec. 29, 2024 $ 269,302   $ 4 $ 186,182 $ 83,113 $ 3 $ 269,302  
Ending Balance, Shares at Dec. 29, 2024 44,042,355   44,042,355          
v3.25.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Cash flows from operating activities:      
Net income $ 53,388 $ 25,566 $ 1,230
Adjustments to reconcile net income to net cash (used in) provided by operating activities:      
Depreciation and amortization 13,093 7,925 5,441
Reduction in the carrying amount of right-of-use assets 4,191 4,129 1,840
Amortization of available-for-sale debt securities 110 348 711
Amortization of debt issuance costs 60 0 0
Stock-based compensation expense 10,268 7,417 6,040
Uncertain tax positions (82) 58 405
Deferred taxes (1,864) (179) 227
Net realized losses on derivative instruments 272 2,711 0
Other 1,605 438 184
Changes in operating assets and liabilities:      
Accounts receivable (14,785) (862) (13,858)
Inventories 8,930 (6,443) (15,574)
Income taxes receivable 0 0 199
Prepaid expenses and other current assets (1,244) (1,151) (131)
Deposits and other assets (3,755) 98 45
Income taxes payable (368) 782 425
Accounts payable 5,810 6,671 2,352
Accrued liabilities 6,749 5,157 3,843
Operating lease liabilities (17,554) (1,759) (1,477)
Net cash provided by (used in) operating activities 64,824 50,906 (8,098)
Cash flows from investing activities:      
Purchases of property, plant and equipment (28,646) (11,538) (10,468)
Purchases of leasehold improvements 0 0 (89)
Purchases of available-for-sale debt securities 0 (982) (33,817)
Purchases of derivative instruments (1,701) (1,971) 0
Sales of available-for-sale debt securities 0 2,895 0
Settlements of derivative instruments 0 106 0
Maturities and call redemptions of available-for-sale debt securities 23,320 32,265 34,345
Proceeds from the sale of property, plant and equipment 1 1,056 100
Return of investment in variable interest entity 0 552 0
Dissolution of equity investment 0 0 (108)
Net cash (used in) provided by investing activities (7,026) 22,383 (10,037)
Cash flows from financing activities:      
Proceeds from exercise of stock options 13,680 692 675
Proceeds from issuance of common stock under employee stock purchase plan 419 296 0
Payment of tax withholding obligation on vested RSU shares (1,510) (796) 0
Principal payments under finance lease obligations (3,521) (2,246) (554)
Payment of financing costs (414) 0 0
Payment of contingent consideration 0 0 (38)
Net cash provided by (used in) financing activities 8,654 (2,054) 83
Net increase (decrease) in cash and cash equivalents 66,452 71,235 (18,052)
Cash and cash equivalents at beginning of the period 84,149 12,914 30,966
Cash and cash equivalents at end of the period 150,601 84,149 12,914
Supplemental disclosure of cash flow information:      
Cash paid for interest 950 775 114
Cash paid for income taxes 16,578 5,996 99
Supplemental disclosure of non-cash investing and financing activities:      
Purchases of property, plant and equipment included in accounts payable and accrued liabilities 884 187 1,143
Revolving Line of Credit      
Cash flows from financing activities:      
Proceeds from borrowing under revolving line of credit 0 7,500 0
Repayment of revolving line of credit $ 0 $ (7,500) $ 0
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ 53,388 $ 25,566 $ 1,251
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 29, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 arrangement modified false
Non-Rule 10b5-1 arrangement modified false
v3.25.0.1
Cybersecurity Risk Management, Strategy and Governance
 12 Months Ended
Dec. 29, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

Risk Management and Strategy

We have implemented and maintain various information security processes designed to identify, assess and manage material risks from cybersecurity threats to our critical computer networks, third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in nature, and personal and financial data regarding our crew members and farmers, which we collectively refer to as “Information Systems and Data.”

Our Information Technology department, under the leadership of our Vice President of Information Technology, or VP of IT, and with cross-functional internal and third-party support, helps identify, assess and manage our cybersecurity threats and risks. The Information Technology department identifies and assesses risks from cybersecurity threats by monitoring and evaluating our threat environment and our and our industry’s risk profile using various methods, including, for example, regular threat assessments (including through interaction with law enforcement when necessary), internal and external audits, threat environment scans and third-party threat assessments, vulnerability assessments, external intelligence feeds and third-party-conducted tabletop training exercises.

Depending on the environment and system, we implement and maintain various technical, physical and organizational measures, processes, standards and policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including, for example, a written incident response plan and incident response policy, business continuity plans, data encryption for certain data, implementation of certain security standards, network security and access controls, data segregation, asset tracking/disposal systems, penetration testing and required crew member training programs.

Our assessment and management of material risks from cybersecurity threats are integrated into our overall risk management processes. For example, our Information Technology department and third-party providers work with our senior leadership team to prioritize our risk management processes and mitigate cybersecurity threats that are more likely to lead to a material impact to our business. Our senior leadership team evaluates material risks from cybersecurity threats against our overall business objectives and reports to the audit committee of our Board of Directors, or Audit Committee, which evaluates our overall enterprise risk.

We use third-party service providers to assist us from time to time to identify, assess, and manage material risks from cybersecurity threats, including professional services firms, threat intelligence service providers, penetration testing providers, cybersecurity consultants, forensic investigators, training platforms and managed cybersecurity service providers.

We use third-party service providers to perform a variety of functions throughout our business, such as application providers, hosting services, supply chain resources (including warehousing and cold storage) and contract manufacturing organizations. We have a vendor management program to manage cybersecurity risks associated with our use of certain of these providers. The program includes, for example, internal reviews of vendor security programs and assessments, security assessment calls with vendor personnel

and imposition of information security obligations in our vendor contracts. Depending on the nature of the services provided, the sensitivity of the Information Systems and Data at issue and the identity of the provider, our vendor management process may involve different levels of assessment designed to help identify cybersecurity risks associated with a provider and impose contractual obligations related to cybersecurity on the provider.

For a description of the risks from cybersecurity threats that may materially affect our company and how they may do so, see our risk factors listed in Part 1, Item 1A of this Annual Report on Form 10-K, including the section titled “Risks Related to Cybersecurity, Information Technology and Intellectual Property.”

Governance

Our Board of Directors addresses our cybersecurity risk management as part of its general oversight function. The Audit Committee is responsible under its committee charter for overseeing our company’s cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats.

Our cybersecurity risk assessment and management processes are implemented and maintained by certain members of our management, including our VP of IT, with the oversight of our Chief Financial Officer. Our VP of IT is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into our overall risk management strategy and communicating key priorities to relevant personnel. Our VP of IT, in consultation with our Chief Financial Officer, is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes and reviewing security assessments and other security-related reports. Our VP of IT has over 25 years of relevant experience, including leadership roles in the information technology departments of public and private companies. Prior to joining Vital Farms, he served as VP of IT for another public company in the consumer packaged goods industry.

Our cybersecurity incident response plan is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including our internal disclosure committee and our senior leadership team. Senior leadership team members work with our company’s incident response team to help Vital Farms mitigate and remediate cybersecurity incidents of which they are notified. In addition, our company’s incident response plan provides for reporting of certain cybersecurity incidents to the Audit Committee.

The Audit Committee receives regular reports from our Chief Financial Officer and the VP of IT concerning significant cybersecurity threats and risk and the processes our company has implemented to address them. The Audit Committee’s training includes participation in tabletop training exercises designed to test and evaluate our company’s response to a cybersecurity incident. The Audit Committee also has access to various reports, summaries or presentations related to cybersecurity threats, risk and mitigation.

Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our assessment and management of material risks from cybersecurity threats are integrated into our overall risk management processes.
Cybersecurity Risk Board of Directors Oversight [Text Block]

Our Board of Directors addresses our cybersecurity risk management as part of its general oversight function. The Audit Committee is responsible under its committee charter for overseeing our company’s cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats.

Our cybersecurity risk assessment and management processes are implemented and maintained by certain members of our management, including our VP of IT, with the oversight of our Chief Financial Officer. Our VP of IT is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into our overall risk management strategy and communicating key priorities to relevant personnel. Our VP of IT, in consultation with our Chief Financial Officer, is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes and reviewing security assessments and other security-related reports. Our VP of IT has over 25 years of relevant experience, including leadership roles in the information technology departments of public and private companies. Prior to joining Vital Farms, he served as VP of IT for another public company in the consumer packaged goods industry.

Our cybersecurity incident response plan is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including our internal disclosure committee and our senior leadership team. Senior leadership team members work with our company’s incident response team to help Vital Farms mitigate and remediate cybersecurity incidents of which they are notified. In addition, our company’s incident response plan provides for reporting of certain cybersecurity incidents to the Audit Committee.

The Audit Committee receives regular reports from our Chief Financial Officer and the VP of IT concerning significant cybersecurity threats and risk and the processes our company has implemented to address them. The Audit Committee’s training includes participation in tabletop training exercises designed to test and evaluate our company’s response to a cybersecurity incident. The Audit Committee also has access to various reports, summaries or presentations related to cybersecurity threats, risk and mitigation.

Cybersecurity Risk Role of Management [Text Block]

Our cybersecurity risk assessment and management processes are implemented and maintained by certain members of our management, including our VP of IT, with the oversight of our Chief Financial Officer. Our VP of IT is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into our overall risk management strategy and communicating key priorities to relevant personnel. Our VP of IT, in consultation with our Chief Financial Officer, is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes and reviewing security assessments and other security-related reports. Our VP of IT has over 25 years of relevant experience, including leadership roles in the information technology departments of public and private companies. Prior to joining Vital Farms, he served as VP of IT for another public company in the consumer packaged goods industry.

Our cybersecurity incident response plan is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including our internal disclosure committee and our senior leadership team. Senior leadership team members work with our company’s incident response team to help Vital Farms mitigate and remediate cybersecurity incidents of which they are notified. In addition, our company’s incident response plan provides for reporting of certain cybersecurity incidents to the Audit Committee.

The Audit Committee receives regular reports from our Chief Financial Officer and the VP of IT concerning significant cybersecurity threats and risk and the processes our company has implemented to address them. The Audit Committee’s training includes participation in tabletop training exercises designed to test and evaluate our company’s response to a cybersecurity incident. The Audit Committee also has access to various reports, summaries or presentations related to cybersecurity threats, risk and mitigation.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Our VP of IT, in consultation with our Chief Financial Officer, is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes and reviewing security assessments and other security-related reports.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee is responsible under its committee charter for overseeing our company’s cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our cybersecurity incident response plan is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including our internal disclosure committee and our senior leadership team.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our VP of IT has over 25 years of relevant experience, including leadership roles in the information technology departments of public and private companies. Prior to joining Vital Farms, he served as VP of IT for another public company in the consumer packaged goods industry.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Nature of the Business and Basis of Presentation
 12 Months Ended
Dec. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of the Business and Basis of Presentation

1. Nature of the Business and Basis of Presentation

Vital Farms, Inc. (the “Company”) was incorporated in Delaware on June 6, 2013 and is headquartered in Austin, Texas. The Company packages, markets and distributes shell eggs, butter and other products. These products are principally sold under the name Vital Farms in addition to other trade names, primarily to retail and foodservice channels in the United States.

Vital Farms of Missouri, LLC is a wholly owned subsidiary of Vital Farms. All significant intercompany transactions and balances have been eliminated in the audited consolidated financial statements.

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

Fiscal Year: The Company’s fiscal year ends on the last Sunday in December and contains either 52 or 53 weeks. Therefore, the financial results of certain 53-week fiscal years will not be exactly comparable to the prior and subsequent 52-week fiscal years. The audited consolidated financial statements for the fiscal years ended December 29, 2024 and December 25, 2022 contain operating results for 52 weeks, while the audited consolidated financial statements for the fiscal year ended December 31, 2023 contain operating results for 53 weeks.
v3.25.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 29, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates principally include revenue recognition, determination of useful lives for property, plant and equipment, leases, variable consideration, goodwill, allowance for credit losses, inventory obsolescence, stock option valuations, accrued liabilities, income taxes and contingencies. Actual results could differ from those estimates.

Concentrations of Customers and Risk: A substantial amount of shell egg processing occurs at the Company’s Egg Central Station shell egg processing facility in Missouri. Any shutdown or period of reduced production at this facility, which may be caused by regulatory noncompliance or other issues, as well as factors beyond the Company’s control, such as natural disaster, weather, fire, power interruption, work stoppage, disease outbreaks or pandemics, equipment failure or maintenance or delay in raw materials delivery, would significantly disrupt the Company’s ability to deliver its products in a timely manner, meet contractual obligations and operate the business.

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, investments, accounts receivable and derivative instruments. The Company maintains deposits with large financial institutions that the Company believes are of high credit quality. At times the Company’s cash and cash equivalents balances with individual banking institutions are in excess of federally insured limits. The Company has not experienced any losses related to its cash and cash equivalents balances.

The Company's customer concentration for the periods presented were as follows:

 

 

 

Net Revenue
Year Ended December 29, 2024

 

Net Revenue
Year Ended December 31, 2023

 

Net Revenue
Year Ended December 25, 2022

 

Accounts Receivable, Net
as of December 29, 2024

 

Accounts Receivable, Net
as of December 31, 2023

Customer A

 

24%

 

25%

 

26%

 

16%

 

18%

Customer B

 

*

 

*

 

11%

 

10%

 

12%

Customer C

 

*

 

*

 

*

 

13%

 

11%

Customer D

 

*

 

*

 

*

 

10%

 

11%

* Denotes percentage less than 10%

Cash and Cash Equivalents: The Company considers all short-term, highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash deposits are all in financial institutions in the United States. As of December 29, 2024 and December 31, 2023, cash and cash equivalents consisted of cash on deposit with balances denominated in U.S. dollars and investments in money market funds.

Investment Securities: The Company accounts for its investment securities in accordance with ASC 320, Investments-Debt and Equity Securities. The Company considers all of its debt securities for which there is a determinable fair market value, and there are no restrictions on the Company’s ability to sell within the next 12 months, as available-for-sale. The Company classifies these securities as current, because the amounts invested are available for current operations. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of tax, recorded in other comprehensive income until the security is settled or sold, except for changes in allowance for any expected credit losses, which are reported on a gross basis in other expense.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is recorded in interest income. The cost of securities sold is based on the specific identification method with realized gains and losses on the sale of debt securities and declines in value due to credit-related factors, reclassified out of accumulated other comprehensive income when sold and recorded in other income. Income tax effects related to realized gains and losses on available-for-sale securities are released from accumulated other comprehensive income quarterly with the recognition of the Company’s tax provision. Interest and dividends on securities classified as available-for-sale are recorded in interest income.

Variable Interest Entity: The Company consolidates all entities where a controlling financial interest exists. For fiscal 2022, the Company considered its relationship with Ovabrite, Inc., which was dissolved in September 2022, to determine whether the Company had a variable interest in that entity, and if so, whether the Company was the primary beneficiary of the relationship. GAAP requires variable interest entities (“VIEs”) to be consolidated if an entity’s interest in the VIE is a controlling financial interest. Under the variable model, a controlling financial interest is determined based on which entity, if any, has (i) the power to direct the activities of the VIE that most significantly impacts the VIE’s economic performance and (ii) the obligations to absorb losses that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Management performs ongoing reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with a VIE will cause the consolidation conclusion to change. The consolidation status of a VIE may change as a result of such reassessments. Changes in consolidation status are applied prospectively in accordance with GAAP.

Segment Information: The Company operates and manages its business as one reportable and operating segment. The Company’s Chief Executive Officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for purposes of evaluating financial performance and allocating resources. All of the Company’s long-lived assets and customers are located in the United States.

Fair Value of Financial Instruments: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three levels of inputs that may be used to measure fair value are defined below:

•
Level 1 - Quoted prices in active markets for identical assets or liabilities.
•
Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•
Level 3 - Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The carrying values of cash, trade receivables, other non-trade receivables within prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities approximate their fair value due to the short-term nature of these assets and liabilities.

Accounts Receivable: Accounts receivable are stated at amounts due from customers net of any allowance for credit losses. The Company generally does not have collateral for its receivables, but the Company does periodically evaluate the creditworthiness of its customers.

Allowance for Credit Losses: The allowance for expected credit losses related to trade receivables is estimated based on the trade receivable aging category, credit risk of specific customers, past collection history, and management’s evaluation of accounts receivable. The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The provision for expected credit losses is charged within selling, general and administrative costs. These losses have been immaterial to date. Subsequent recoveries, if any, are credited to the allowance.

The allowance for expected credit losses related to other non-trade receivables are estimated based on the aging category and the probability of default.

Inventories: Inventories are stated at the lower of cost (determined under the weighted average cost method) or net realizable value. In addition to product cost, inventory costs include expenditures such as in-bound shipping and handling and warehousing costs incurred in bringing the inventory to its existing condition and location. Inventory includes eggs and egg-related products, butter and butter-related products, packaging, feed, laying hens, pullets, and equipment parts. A reduction in the carrying value of an inventory item from cost to net realizable value is recorded in cost of goods sold with the offset to inventory. Any inventory that does not meet the quality control standards of the Company is separated and written down to its net realizable value.

Derivative Financial Instruments: The Company uses derivative instruments as part of its risk management activities to reduce its exposure to commodity price risk. Business operations give rise to certain market exposures, mostly due to changes in commodity prices of corn and soybean meal. Credit risks associated with derivative contracts are not significant, as the Company minimizes counterparty exposure by dealing with creditworthy counterparties and collateralized insurers and by utilizing exchange traded instruments and insurance backed commodity settlement contracts. While the Company may be exposed to potential losses due to the credit risk of non-performance by these counterparties, losses are not anticipated. The Company does not hold derivative instruments for trading purposes. Additionally, the Company’s derivative contracts are short-term in duration and do not make use of credit-risk-related contingent features.

Derivatives used to manage commodity price risk are not designated for hedge accounting treatment. Therefore, the changes in fair value of these derivatives are recorded as incurred within other expense, net. Net realized gains and losses on derivative instruments are reported as a reconciling item from net income to cash from operating activities in the consolidated statements of cash flows. Cash flows related to settlements and purchases of derivative instruments are reported as investing activities within the consolidated statements of cash flows.

Property, Plant and Equipment: Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives. The general range of useful lives of other property, plant and equipment is as follows:

 

 

 

 

Estimated Useful Life

Land

N/A

Land improvements

 

15 to 20 years

Buildings and improvements

15 to 39 years

Vehicles

5 years

Machinery and equipment

2 to 7 years

Furniture and fixtures

5 years

Leasehold improvements

Lesser of lease term or 7 years

When assets are sold or retired, the cost and related accumulated depreciation or amortization of assets disposed of are removed from the accounts, with any resulting gain or loss recorded in operations in the consolidated statements of income. Normal repairs and maintenance costs are expensed as incurred to operations.

Goodwill: Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not amortized but is tested for impairment annually on the first day of the fourth fiscal quarter or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company’s goodwill impairment test is performed at the enterprise level given the single reporting unit.

The Company first assesses qualitative factors to determine whether events or circumstances existed that would lead the Company to conclude that it is more likely than not that the fair value of the reporting unit is below its carrying amount. If the Company determines that it is more likely than not that the fair value of the reporting unit is below the carrying amount based on qualitative factors or if significant changes to macro-economic factors related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill assessment would be required. In the quantitative evaluation, the fair value of the reporting unit is determined and compared to the carrying value. If the fair value is greater than the carrying value, then the carrying value is deemed to be recoverable and no further action is required. If the fair value estimate is less than the carrying value, goodwill is considered impaired for the amount by which the carrying amount exceeds the reporting unit’s fair value and a charge is reported as impairment of goodwill in the consolidated statements of income. To date, the Company has not recorded any impairment charges associated with its goodwill.

Cloud Computing Arrangements: The Company incurs costs to implement cloud computing arrangements hosted by third party vendors. Costs incurred to implement cloud computing service arrangements are capitalized when incurred during the application development phase and recognized as other current assets and other non-current assets in the consolidated balance sheets. Amortization of the cloud computing arrangement implementation costs will begin once the software is placed in service.

Leases: The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. Under ASC 842, Leases (“Topic 842”), a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset.

The Company has made an accounting policy election not to recognize right-of-use (“ROU”) assets and lease liabilities for leases with a term of 12 months or less. For all other leases, the Company recognizes ROU assets and lease liabilities based on the present value of lease payments over the lease term at the commencement date of the lease. The Company’s recognized ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date, which are reduced by any lease incentives.

Future lease payments may include fixed rent escalation clauses or payments that depend on an index (such as the Consumer Price Index measured by the U.S. Bureau of Labor Statistics). Subsequent index changes and other periodic market-rate adjustments to base rent are recorded as variable lease expense during the period in which they are incurred. Residual value guarantees or payments for terminating the lease are included in the lease payments only when it is probable they will be incurred.

The Company has made an accounting policy election to account for lease and non-lease components in its contracts as a single lease component for all asset classes. The non-lease components typically represent additional services transferred to the Company, such as common area maintenance for real estate, which are variable in nature and recorded in variable lease expense in the period incurred.

Impairment of Long-Lived Assets: The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate the carrying value of an asset may not be recoverable from the estimated undiscounted future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects and the effects of obsolescence, demand, competition and other economic factors. The Company did not recognize an impairment loss during the fiscal years ended December 29, 2024, December 31, 2023 and December 25, 2022.

Noncontrolling Interest: The Company recognizes noncontrolling interest related to VIEs in which the Company is the primary beneficiary, as equity in the consolidated financial statements separate from the parent entity’s equity. The amount of net income or loss attributable to noncontrolling interests is included in consolidated net income on the face of the consolidated statements of income. Changes in the parent entity’s ownership interest in a subsidiary that do not result in deconsolidation are treated as equity transactions if the parent entity retains its controlling financial interest. In addition, when a subsidiary is deconsolidated, any retained noncontrolling equity investment in the former subsidiary will be initially measured at fair value and the difference between the carrying value and fair value of the retained interest will be recorded as a gain or loss. Affiliate equity interests where the Company has certain rights to demand settlement are presented at their current redemption values, as redeemable noncontrolling interest in the consolidated balance sheet. Because these transactions take place between entities under common control, any gains or losses attributable to these transactions are required to be included within additional paid-in-capital on the consolidated balance sheets.

Income Taxes: Income taxes are computed using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements. In estimating future tax consequences, the Company considers all expected future events other than enactment of changes in tax laws or rates. A valuation allowance is recorded, if necessary, to reduce net deferred tax assets to their realizable values if management does not believe it is more likely than not that the net deferred tax assets will be realized.

The Company recognizes the benefit of an income tax position only if it is more likely than not (greater than 50%) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position. Otherwise, no benefit can be recognized. Assessing an uncertain tax position begins with the initial determination of the sustainability of the position and is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed. Additionally, the Company must accrue interest and related penalties, if applicable, on all tax exposures for which reserves have been established consistent with jurisdictional tax laws.

The Company’s policy is to recognize interest and penalties related to uncertain tax positions in the provision for income taxes. As of December 29, 2024 and December 31, 2023 the Company had accrued interest and penalties related to uncertain tax positions of $157 and $171.

Net Income per Share Attributable to Vital Farms, Inc. Common Stockholders: The Company applies the two-class method to compute basic and diluted net income per share attributable to the Company’s common stockholders when shares meet the definition of participating securities. The two-class method determines net income per share for each class of the Company’s common stock and preferred stock according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between the Company’s common stock and preferred stock based upon their respective rights to share in the earnings as if all income for the period had been distributed. During periods of loss, there is no allocation required under the two-class method since the preferred stock does not have a contractual obligation to share in the Company’s losses.

Basic net income per share attributable to the Company’s stockholders is computed by dividing net income by the weighted-average number of shares outstanding during the period without consideration of potentially dilutive common stock. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue shares of the Company’s common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company unless inclusion of such shares would be anti-dilutive. For periods in which the Company reports net losses, diluted net loss per common share attributable to the Company’s common stockholders is the same as basic net loss, because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

Revenue Recognition: The Company generates revenue primarily through sales of products to its customers, which include natural channel retailers, mainstream channel retailers, distributors and foodservice customers. The Company sells its products to customers on a purchase-order basis.

Revenue is recognized when control of the product is transferred to the customer and the related performance obligation is satisfied, which typically occurs upon delivery of the product to the customer, for an amount that reflects the net consideration the Company expects to receive in exchange for delivering the product. The Company offers sales incentives through various programs to customers and allow deductions from its customers, which may include credits or discounts to customers in the event that products do not conform to customer specifications or expire at a customer’s site. The cost associated with variable consideration is estimated and recorded as a reduction in revenue and is recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of this cost therefore requires management judgment regarding the volume of promotional offers that will be redeemed. Differences between estimated cost and actual redemptions are recognized as a change in management estimate in a subsequent period.

In many cases, key sales terms such as pricing and quantities ordered are established on a regular basis such that most customer arrangements and related incentives have a duration of less than one year. Amounts billed and due from customers are short-term in nature and are classified as receivables since payments are unconditional and only the passage of time is required before payments are due.

Shipping and Distribution: The Company’s shipping and distribution costs include costs incurred with third-party carriers to transport products to customers and salaries and overhead costs related to activities to prepare the Company’s products for shipment. Shipping and distribution costs were $32,435, $27,344, and $30,104 during the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, respectively. Freight-in costs are included within cost of goods sold and were $3,526, $4,823, and $9,610 during the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, respectively.

Stock-Based Compensation: The Company measures all stock-based awards granted to employees and directors based on the estimated fair value on the date of the grant and recognizes compensation expense for those awards, over the requisite service period, which is generally the vesting period of the respective award. Stock options generally vest ratably over three years from the date of grant and expire 10 years from the date of grant. Restricted stock awards generally vest ratably over three years from the date of grant and contain no other service or performance conditions. Performance stock awards vest at the end of a three-year period dependent upon the level of achievement of certain Company performance metrics and the recipient’s continued service over such period. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service or vesting period. Forfeitures for stock options and restricted stock awards are recognized as they occur. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing valuation model, which requires inputs based on certain subjective assumptions, including the fair market value of the Company’s common stock, expected stock price volatility, the expected term of the option, the risk-free interest rate for a period that approximates the expected term of the option, and the Company’s expected dividend yield. The Company classifies stock-based compensation expense in its consolidated statements of income in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified.

Advertising and Promotion Expenses: Advertising and promotion expenses consist primarily of production costs and the costs to communicate the advertisements to promote and market the Company’s products. Production costs such as idea development, artwork, audio and video crews and other upfront development costs are expensed the first time the associated advertising campaign is launched or aired. The costs to communicate the advertisements such as airtime and distribution costs are expensed as incurred. During the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, the Company incurred advertising and promotion expenses of approximately $32,138, $23,625, and $13,301, respectively.

Recently Adopted Accounting Pronouncements: In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) and also issued subsequent amendments to the initial guidance, ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, ASU 2020-02, ASU 2020-03 and ASU 2022-02 (collectively, “Topic 326”), to introduce a new impairment model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Topic 326 requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The Company adopted ASU 2016-13 on December 26, 2022. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. There was no impact on the Company’s consolidated financial statements at adoption.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which intends to simplify the guidance by removing certain exceptions to the general principles and clarifying or amending existing guidance. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company adopted ASU 2019-12 during fiscal 2022 and there was no material impact on the Company’s consolidated financial statements for the fiscal years ended December 25, 2022, December 31, 2023 and December 29, 2024.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures (“ASU 2023-07”) in order to improve stockholders’ understanding of an entity’s business activities through enhanced disclosures around reportable segments. ASU 2023-07 requires incremental and more detailed disclosure regarding segment expenses on both an annual and interim basis. The Company adopted ASU 2023-07 on December 29, 2024. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements but resulted in expanded disclosures in Note 23 “Segment Reporting” below.

Recently Issued Accounting Pronouncements Not Yet Adopted: In December 2023, the FASB issued ASU No 2023-09, Income Taxes (Topic 740) — Improvements to Income Tax Disclosures (“ASU 2023-09”) in order to enhance the transparency and usefulness of income tax disclosures. The guidance is applicable to all entities subject to income tax and it will require disclosure of certain categories within the rate reconciliation to improve consistency as well as disclosure of reconciling items which meet a certain quantitative threshold which will improve transparency. Additionally, entities must disclose the amount of taxes paid to federal, state and foreign municipalities. For public business entities ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The Company expects to adopt the standard for the fiscal year beginning December 30, 2024. The Company is currently evaluating the impact of its pending adoption of ASU 2023-09 on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact of its pending adoption of ASU 2024-03 on its consolidated financial statements.

v3.25.0.1
Investment Securities
 12 Months Ended
Dec. 29, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

3. Investment Securities

The following table summarizes the Company’s available-for-sale investment securities as of December 29, 2024:

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Allowance for Credit Losses

 

 

Fair Value

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

$

9,702

 

 

$

15

 

 

$

(25

)

 

$

—

 

 

$

9,692

 

Total

 

$

9,702

 

 

$

15

 

 

$

(25

)

 

$

—

 

 

$

9,692

 

 

The following table summarizes the Company’s available-for-sale investment securities as of December 31, 2023:

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Allowance for Credit Losses

 

 

Fair Value

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

$

33,134

 

 

$

10

 

 

$

(477

)

 

$

—

 

 

$

32,667

 

Total

 

$

33,134

 

 

$

10

 

 

$

(477

)

 

$

—

 

 

$

32,667

 

The following table presents the Company’s proceeds, gross realized gains and losses from the sale of available-for-sale securities for the periods presented:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Proceeds

 

$

—

 

 

$

2,895

 

 

$

—

 

 

 

 

 

 

 

 

 

 

Gross realized gains

 

 

—

 

 

 

—

 

 

 

9

 

Gross realized losses

 

 

(1

)

 

 

(183

)

 

 

(105

)

Net realized losses

 

$

(1

)

 

$

(183

)

 

$

(96

)

Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. The amortized cost and fair value of the Company’s investments in available-for-sale securities as of December 29, 2024 by contractual maturity are as follows:

 

 

Amortized Cost

 

 

Fair Value

 

Due within one year

 

$

8,696

 

 

$

8,673

 

Due after one year through five years

 

 

1,006

 

 

 

1,019

 

Total available-for-sale

 

$

9,702

 

 

$

9,692

 

The following tables present the Company’s unrealized loss aging for available-for-sale securities by type and length of time the security was in a continuous unrealized loss position as of the periods presented:

 

 

 

December 29, 2024

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

$

-

 

 

$

-

 

 

$

8,014

 

 

$

(25

)

 

$

8,014

 

 

$

(25

)

Total

 

$

-

 

 

$

-

 

 

$

8,014

 

 

$

(25

)

 

$

8,014

 

 

$

(25

)

 

 

 

December 31, 2023

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

$

699

 

 

$

(3

)

 

$

29,247

 

 

$

(474

)

 

$

29,946

 

 

$

(477

)

Total

 

$

699

 

 

$

(3

)

 

$

29,247

 

 

$

(474

)

 

$

29,946

 

 

$

(477

)

 

As of December 29, 2024, there were 13 diversified issuances in the Company’s securities portfolio in an unrealized loss position, with credit ratings from BBB- to A+. As of December 29, 2024, there are no individual bonds with unrealized losses exceeding $3, and 13 issuances have been in a loss position greater than 12 months.

The decline in fair value has resulted primarily from rising interest rates over the last 12 months, and the Company does not believe there has been any significant decline in the creditworthiness of the issuers. The Company also does not believe it is likely that a significant number of bonds will be called early, and it does not have liquidity needs that would necessitate a sale of any material investments prior to maturity. Therefore, the Company has not recorded an allowance for credit losses on the investment securities as of December 29, 2024.

The fair value and location of all investment securities are included in “Fair Value Measurements” in Note 5 below.
v3.25.0.1
Derivative Financial Instruments
 12 Months Ended
Dec. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

4. Derivative Financial Instruments

The Company enters into derivative instruments to mitigate the impact of commodity price volatility. Such instruments may include call options on commodity price contracts. Realized and unrealized gains and losses on the Company’s commodity derivatives not designated as hedging instruments are recorded in other expense, net. The Company recognizes all derivative instruments as either assets or liabilities.

The following table presents the aggregated outstanding notional amounts related to the Company’s derivative financial instruments for the periods presented:

 

 

Metric

 

December 29,
2024

 

 

December 31,
2023

 

Commodity:

 

 

 

 

 

 

 

 

Corn

 

Bushels (in thousands)

 

 

3,593

 

 

 

2,351

 

Soybean Meal

 

Tons

 

 

37

 

 

 

25

 

For the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, the pre-tax amount of commodity contract derivative losses recognized in other expense, net was $273, $2,435, and $0, respectively.

The fair value and location of all outstanding derivative financial instruments are included in “Fair Value Measurements” in Note 5 below.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 29, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

5. Fair Value Measurements

Assets Measured at Fair Value on a Recurring Basis

The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis for the periods presented:

 

 

Fair Value Measurements as of December 29, 2024, Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market

 

$

114,249

 

 

$

—

 

 

$

—

 

 

$

114,249

 

Investment securities, available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

 

—

 

 

 

9,692

 

 

 

—

 

 

 

9,692

 

Prepaid expenses and other current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

—

 

 

 

1,153

 

 

 

—

 

 

 

1,153

 

Total assets measured at fair value

 

$

114,249

 

 

$

10,845

 

 

$

—

 

 

$

125,094

 

 

 

 

Fair Value Measurements as of December 31, 2023, Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market

 

$

64,498

 

 

$

—

 

 

$

—

 

 

$

64,498

 

Investment securities, available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

 

—

 

 

 

32,667

 

 

 

—

 

 

 

32,667

 

Prepaid expenses and other current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

—

 

 

 

394

 

 

 

—

 

 

 

394

 

Total assets measured at fair value

 

$

64,498

 

 

$

33,061

 

 

$

—

 

 

$

97,559

 

During the fiscal year ended December 29, 2024, there were no transfers between fair value measurement levels. For additional information on concentrations of credit risk for the Company’s financial instruments, refer to “Summary of Significant Accounting Policies” in Note 2 and “Investment Securities” in Note 3 above.

Fair Value of Other Financial Instruments

The carrying values of the Company’s short-term financial instruments not included above, including cash, trade receivables, other non-trade receivables included in prepaid expense and other current assets, accounts payable, accrued expenses and other current liabilities approximate their fair value due to their short-term nature.
v3.25.0.1
Revenue Recognition
 12 Months Ended
Dec. 29, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

6. Revenue Recognition

The following table summarizes the Company’s net revenue by primary product for the periods presented:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Net Revenue:

 

 

 

 

 

 

 

 

 

Eggs and egg-related products

 

$

580,954

 

 

$

449,045

 

 

$

339,214

 

Butter and butter-related products

 

 

25,353

 

 

 

22,812

 

 

 

22,836

 

Net Revenue

 

$

606,307

 

 

$

471,857

 

 

$

362,050

 

 

Net revenue is primarily generated from the sale of eggs and butter. The Company’s product offerings include shell eggs, hard-boiled eggs, liquid whole eggs, and stick butter. The Company’s previous convenient breakfast product line (including egg bites and egg-based breakfast bars) was discontinued in 2022, and the Company’s ghee and spreadable tub butter offerings were discontinued during the fiscal year ended December 31, 2023. The revenues related to the discontinued product lines were immaterial.
v3.25.0.1
Allowance for Credit Losses
 12 Months Ended
Dec. 29, 2024
Allowance for Credit Loss [Abstract]  
Allowance for Credit Losses

7. Allowance for Credit Losses

As of December 29, 2024 and December 31, 2023, the Company had an allowance for credit losses of $931 and $777, respectively.

The Company recognizes current estimated credit losses (“CECL”) for accounts receivable. The CECL for trade receivables is estimated based on the trade receivable aging category, credit risk of specific customers, past collection history, and management’s evaluation of accounts receivable. The Company also has other receivables which are classified within prepaid expenses and other current assets. The CECL for other receivables is estimated based on the other receivables aging category and the probability of default. Provisions for CECL are classified within selling, general and administrative costs.

Changes in the allowance for credit losses for the periods presented were as follows:

 

 

Accounts Receivable

 

 

Prepaid Expenses and other Current Assets

 

 

Total

 

As of December 26, 2021

 

$

(269

)

 

$

—

 

 

$

(269

)

Provisions charged to operating results

 

 

(546

)

 

 

(206

)

 

 

(752

)

Account write-offs

 

 

322

 

 

 

—

 

 

 

322

 

As of December 25, 2022

 

$

(493

)

 

$

(206

)

 

$

(699

)

Provisions charged to operating results

 

 

(364

)

 

 

(148

)

 

 

(512

)

Account write-offs

 

 

307

 

 

 

127

 

 

 

434

 

As of December 31, 2023

 

$

(550

)

 

$

(227

)

 

$

(777

)

Provisions charged to operating results

 

 

(290

)

 

 

(153

)

 

 

(443

)

Account write-offs

 

 

149

 

 

 

140

 

 

 

289

 

As of December 29, 2024

 

$

(691

)

 

$

(240

)

 

$

(931

)
v3.25.0.1
Inventories
 12 Months Ended
Dec. 29, 2024
Inventory Disclosure [Abstract]  
Inventories

8. Inventories

Inventory consisted of the following as of the periods presented:

 

 

December 29,
2024

 

 

December 31,
2023

 

Eggs and egg-related products

 

$

7,384

 

 

$

25,521

 

Butter and butter-related products

 

 

8,691

 

 

 

1,697

 

Packaging

 

 

4,296

 

 

 

4,988

 

Pullets

 

 

1,657

 

 

 

289

 

Other

 

 

1,860

 

 

 

896

 

Reserve for inventory obsolescence

 

 

(222

)

 

 

(496

)

Inventories

 

$

23,666

 

 

$

32,895

 

On a periodic basis, the Company compares the amount of inventory on hand with its latest forecasted requirements to determine whether charges for excess or obsolete inventory reserves are required.
v3.25.0.1
Property, Plant and Equipment
 12 Months Ended
Dec. 29, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

9. Property, Plant and Equipment

Property, plant and equipment consisted of the following as of the periods presented:

 

 

December 29,
2024

 

 

December 31,
2023

 

Land

 

$

11,200

 

 

$

552

 

Land improvements

 

 

818

 

 

 

818

 

Buildings and improvements

 

 

30,607

 

 

 

30,532

 

Vehicles

 

 

1,468

 

 

 

1,055

 

Machinery and equipment

 

 

58,847

 

 

 

50,979

 

Leasehold improvements

 

 

491

 

 

 

492

 

Furniture and fixtures

 

 

531

 

 

 

461

 

Construction in progress

 

 

14,456

 

 

 

3,001

 

 

 

118,418

 

 

 

87,890

 

Less: Accumulated depreciation and amortization

 

 

(33,897

)

 

 

(21,051

)

Property, plant and equipment, net

 

$

84,521

 

 

$

66,839

 

During the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, depreciation of property, plant and equipment was approximately $9,255, $7,925, and $5,441, respectively.
v3.25.0.1
Leases
 12 Months Ended
Dec. 29, 2024
Leases [Abstract]  
Leases

10. Leases

The Company leases office facilities, warehouses, office equipment and vehicles for delivery of products under lease agreements with initial terms approximating one to five years. The Company's finance leases include leases on a transportation fleet as well as office equipment and its operating leases primarily consist of leases on its buildings, including its corporate headquarters.

In addition, substantially all the Company’s long-term supply contracts with farms contain components that meet the definition of embedded leases within the scope of Topic 842. These arrangements convey to the Company the right to control implicitly identified property, plant and equipment as it takes substantially all the utility generated by these assets over the term of the arrangements at a variable price. The initial term of these supply agreements ranges from one to seven years. Excluding upfront leasing costs discussed below, the total purchase commitments contained in these arrangements are variable and represent rentals; there are no minimum purchase commitments associated with these long-term supply contracts. Beginning in December 2023, the Company executed long-term supply contracts with farms to provide an upfront lease payment to offset farm construction costs, loans and other startup costs. The upfront leasing costs have been classified within operating lease right-of-use assets on the consolidated balance sheet for the years ended December 29, 2024 and December 31, 2023 and are amortized to cost of goods sold over the term of the long term supply arrangements.

As the classification and timing of recognition of costs attributable to the eggs and embedded cost of the lease rentals are identical, the Company does not allocate the total purchase cost of eggs between the cost of the eggs and the embedded cost of the lease rentals or distinguish between them in its accounting records. The Company records the total purchase cost of eggs, which includes costs associated with the eggs and the corresponding cost of embedded lease rentals from the same arrangement, into inventory. These costs are expensed to cost of goods sold when the associated eggs are sold to customers and are also reported as part of variable lease cost.

The Company’s office lease for its corporate headquarters facility in Austin, Texas includes an option to renew, generally at the Company's sole discretion, with renewal terms that can extend the lease term up to five years. In addition, certain leases contain termination options, where the rights to terminate are held by the Company, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise that option. As of December 29, 2024, it is not reasonably certain that the Company will exercise the right to extend its office lease and therefore, the Company has not included the extended term in the calculation of its ROU assets or liabilities. The Company’s leases do not contain any material restrictive covenants or residual value guarantees.

Operating lease cost is recognized on a straight-line basis over the lease term and finance lease cost is recognized as amortization expense for ROU assets and interest expense associated with finance lease liabilities. Amortization expense associated with finance leases during the fiscal years ended December 29, 2024, December 31, 2023 and December 25, 2022 was $3,838, $2,565 and $439, respectively, and is recorded within costs of goods sold and selling, general and administrative costs in the consolidated statement of income.

The components of lease cost consisted of the following for the periods presented:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

 Operating lease cost

 

$

4,789

 

 

$

1,714

 

 

$

1,445

 

 Finance lease cost – amortization of right-of-use assets

 

 

3,838

 

 

 

2,565

 

 

 

439

 

 Finance lease cost – interest on lease liabilities

 

 

941

 

 

 

740

 

 

 

87

 

 Short-term lease cost

 

 

158

 

 

 

771

 

 

 

67

 

 Variable lease cost

 

 

11,293

 

 

 

7,533

 

 

 

2,967

 

 Variable lease cost – long-term supply contracts

 

 

225,390

 

 

 

200,050

 

 

 

143,696

 

 Total lease cost

 

$

246,409

 

 

$

213,373

 

 

$

148,701

 

Supplemental balance sheet information related to leases is as follows:

 

 

As of December 29, 2024

 

 

As of December 31, 2023

 

Finance Leases

 

 

 

 

 

 

Machinery and equipment

 

$

18,074

 

 

$

16,321

 

Less: Accumulated depreciation and amortization

 

 

(6,675

)

 

 

(2,837

)

Property, plant and equipment, net

 

$

11,399

 

 

$

13,484

 

 

 

 

As of December 29, 2024

 

 

As of December 31, 2023

 

Weighted-average remaining lease term (years)

 

 

 

 

 

 

Operating leases

 

 

2.38

 

 

 

2.97

 

Finance leases

 

 

2.83

 

 

 

3.83

 

Weighted-average discount rate

 

 

 

 

 

 

Operating leases

 

 

7.55

%

 

 

7.38

%

Finance leases

 

 

7.17

%

 

 

7.12

%

Future undiscounted cash flows are as follows:

 

 

As of December 29, 2024

 

 

 

Operating Leases

 

 

Finance Leases

 

2025

 

$

4,171

 

 

$

4,633

 

2026

 

 

3,018

 

 

 

4,670

 

2027

 

 

—

 

 

 

3,850

 

Total lease payments

 

 

7,189

 

 

 

13,153

 

Less imputed interest

 

 

(422

)

 

 

(1,210

)

Total present value of lease liabilities

 

$

6,767

 

 

$

11,943

 

 

Supplemental cash flow information related to leases is as follows:

Cash paid for amounts included in measurement of lease liabilities:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

Operating cash outflows - payments on operating leases

 

$

17,554

 

 

$

1,759

 

Operating cash outflows - interest payments on finance leases

 

 

941

 

 

 

740

 

Financing cash outflows - principal payments on finance leases

 

 

3,521

 

 

 

2,246

 

Right-of-use assets obtained in exchange for new lease obligations:

 

 

As of December 29, 2024

 

 

As of December 31, 2023

 

Operating leases

 

$

14,988

 

 

$

8,583

 

Finance leases

 

 

1,728

 

 

 

7,390

 
v3.25.0.1
Goodwill and Other Assets
 12 Months Ended
Dec. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Assets

11. Goodwill and Other Assets

Goodwill and other assets consisted of the following as of the periods presented:

 

 

December 29,
2024

 

 

December 31,
2023

 

Goodwill

 

$

3,858

 

 

$

3,858

 

Cloud computing implementation costs

 

 

3,834

 

 

 

—

 

Deferred tax asset

 

 

1,399

 

 

 

—

 

Other non-current assets

 

 

62

 

 

 

46

 

Goodwill and other assets

 

$

9,153

 

 

$

3,904

 
v3.25.0.1
Accrued Liabilities
 12 Months Ended
Dec. 29, 2024
Payables and Accruals [Abstract]  
Accrued Liabilities

12. Accrued Liabilities

Accrued liabilities consisted of the following as of the periods presented:

 

 

December 29,
2024

 

 

December 31,
2023

 

Employee-related costs

 

$

15,074

 

 

$

9,131

 

Trade promotions and chargebacks

 

 

8,204

 

 

 

6,982

 

Distribution fees and freight

 

 

3,193

 

 

 

2,876

 

Marketing and broker commissions

 

 

2,235

 

 

 

3,627

 

Purchases of inventory

 

 

641

 

 

 

525

 

Professional fees

 

 

958

 

 

 

1,066

 

Other

 

 

1,023

 

 

 

11

 

Accrued liabilities

 

$

31,328

 

 

$

24,218

 
v3.25.0.1
Product Exit Costs
 12 Months Ended
Dec. 29, 2024
Restructuring and Related Activities [Abstract]  
Product Exit Costs

13. Product Exit Costs

During the fiscal year ended December 25, 2022, the Company made the decision to exit its convenient breakfast product category due to a shift in focus to product offerings core to the Company’s operations. Charges incurred in connection with these product exits were substantially complete by December 25, 2022, and the Company believes the actual charges as shown below approximate fair value.

During the fiscal year ended December 31, 2023, the Company made the decision to exit its ghee and spreadable tub butter product offerings. Charges incurred in connection with these product exits were immaterial.

The ending liability balances related to the convenience breakfast category exit as of December 29, 2024 and December 31, 2023 were immaterial.

The following table summarizes the activity related to the exit of the Company’s convenient breakfast products during the periods presented:

 

 

 

 

For the Fiscal Year Ended December 25, 2022

 

Description

 

Statement of Income
Classification

 

Charges Incurred

 

 

Amounts Paid or Settled

 

 

Amounts Realized as Unutilized

 

 

Ending Liability Balance

 

Contract terminations

 

Selling, general and administrative

 

$

1,126

 

 

$

(1,126

)

 

$

—

 

 

$

—

 

Inventory obsolescence

 

Cost of goods sold

 

 

749

 

 

 

(749

)

 

 

—

 

 

 

—

 

Customer allowances

 

Net revenue

 

 

146

 

 

 

(111

)

 

 

(35

)

 

 

—

 

Asset write-downs

 

Cost of goods sold

 

 

119

 

 

 

—

 

 

 

—

 

 

 

119

 

Co-manufacturer chargers

 

Cost of goods sold

 

 

135

 

 

 

(135

)

 

 

—

 

 

 

—

 

Asset disposals

 

Selling, general and administrative

 

 

66

 

 

 

(66

)

 

 

—

 

 

 

—

 

Total

 

 

 

$

2,341

 

 

$

(2,187

)

 

$

(35

)

 

$

119

 
v3.25.0.1
Long-Term Debt
 12 Months Ended
Dec. 29, 2024
Debt Disclosure [Abstract]  
Long-Term Debt

14. Long-Term Debt

PNC Credit Facility

In October 2017, the Company entered into a credit facility agreement with PNC Bank, National Association (the “PNC Credit Facility”) which was modified at various times between fiscal 2018 and fiscal 2023. Such amendments included (i) amendments to various definitions and covenants, (ii) waiver of a technical default in May 2020, (iii) increased borrowing capacity, (iv) elimination of a term loan and equipment loan, and (v) extension of the maturity date. The PNC Credit Facility was terminated on April 9, 2024 when the Company entered into a syndicated credit agreement with JPMorgan Chase Bank, N.A. and the other lenders party thereto (the “JPMorgan Credit Facility”).

The maximum borrowing capacity under the PNC Credit Facility’s revolving line of credit was $20.0 million. Interest on borrowings under the revolving line of credit, as well as loan advances thereunder, accrued at a rate, at the Company’s election at the time of borrowing, equal to (i) the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York plus 2.00% or (ii) 1.00% plus the alternate base rate, as defined in the PNC Credit Facility.

The PNC Credit Facility was secured by all of the Company’s assets (other than real property and certain other property excluded pursuant to the terms of the PNC Credit Facility) and required the Company to maintain three financial covenants: a fixed charge coverage ratio, a leverage ratio and a minimum tangible net worth requirement. The PNC Credit Facility also contained various covenants relating to limitations on indebtedness, acquisitions, mergers, consolidations and the sale of properties and liens. The PNC Credit Facility also contained other customary covenants, representations and events of default.

JPMorgan Credit Facility

On April 9, 2024, the Company entered into the JPMorgan Credit Facility, which provides for a five-year, $60.0 million revolving credit facility.

The JPMorgan Credit Facility includes a $5.0 million letter of credit sub-limit and an accordion option that would allow the Company to increase the aggregate revolving commitments or add incremental term loans in an aggregate amount not to exceed the greater of (i) $35.0 million and (ii) an amount equal to 100% of consolidated adjusted EBITDA.

Any borrowings under the JPMorgan Credit Facility bear interest, at the Company’s election, at either (i) an adjusted term Secured Overnight Financing Rate or adjusted daily Secured Overnight Financing Rate plus 0.10% plus a margin of either 0.75%, 1.00% or 1.25% depending on the Company’s net leverage ratio or (ii) an alternative base rate plus a margin of either 1.75%, 2.00% or 2.25%, depending on the Company’s net leverage ratio. The Company is required to pay a commitment fee on the undrawn portion of the aggregate commitments that accrues at either 0.20% or 0.375% per annum depending on the Company’s revolving credit exposure. Additionally, the Company is required to pay a participation fee on the account of each lender for each outstanding letter of credit at a rate equal to the applicable rate used to determine the interest rate applicable to term benchmark revolving loans.

The JPMorgan Credit Facility is secured by liens on substantially all of the Company’s assets, including certain intellectual property assets and investment securities. It requires the Company to maintain (i) a net leverage ratio of no greater than 3.25 to 1.00, subject to two increases up to 4.00 to 1.00 for a certain period following material acquisitions, and (ii) a fixed charge coverage ratio of no less than 1.35 to 1.00. As a result of the limitations contained in the JPMorgan Credit Facility, certain of the net assets on the Company’s consolidated balance sheet as of December 29, 2024 are restricted in use. The Company’s wholly owned subsidiaries are non-operating and have no restricted net assets within the meaning of Rule 4-08(e)(3) or Rule 12-04 of Regulation S-X. As of December 29, 2024, the Company was in compliance with all covenants under the JPMorgan Credit Facility.

During the fiscal years ended December 29, 2024, December 31, 2023 and December 25, 2022, the Company recognized interest expense related to draws on the respective revolving lines of credit of $0, $7 and $0, respectively.
v3.25.0.1
Common Stock
 12 Months Ended
Dec. 29, 2024
Equity [Abstract]  
Common Stock

15. Common Stock

As of December 29, 2024, the Company’s amended and restated certificate of incorporation authorized the Company to issue 310,000,000 shares of common stock, par value $0.0001 per share, of which 44,042,355 shares were issued and outstanding.

The voting, dividend and liquidation rights of the holders of the Company’s common stock are subject to and qualified by the rights, powers and preferences of the holders of the preferred stock, if any. Each share of the Company’s common stock is entitled to one vote on all matters submitted to a vote of the Company’s stockholders. Holders of the Company’s common stock are entitled to receive dividends as may be declared by the Board of Directors (the “Board of Directors”), if any, subject to the preferential dividend rights of preferred stock, if any. No cash dividends were declared or paid during the periods presented.

As of each balance sheet date, the Company had reserved shares of common stock for issuance in connection with the following:

 

 

 

December 29,
2024

 

 

December 31,
2023

 

Options to purchase common stock

 

 

1,703,287

 

 

 

3,920,485

 

Restricted stock units (“RSUs”)

 

 

644,141

 

 

 

565,376

 

Performance stock units (“PSUs”)

 

 

238,764

 

 

 

—

 

Shares available for grant under the 2020 Equity Incentive
   Plan (“2020 Incentive Plan”) and 2020 Employee Stock Purchase Plan (“2020 ESPP”)

 

 

14,887,764

 

 

 

13,313,326

 

Total

 

 

17,473,956

 

 

 

17,799,187

 
v3.25.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 29, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

16. Stock-Based Compensation

The Company recognized stock-based compensation expense and the related tax benefit as follows for the periods presented:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Cost of goods sold1

 

$

296

 

 

$

260

 

 

$

188

 

Selling, general and administrative expense2

 

 

9,972

 

 

 

7,157

 

 

 

5,852

 

Total

 

$

10,268

 

 

$

7,417

 

 

$

6,040

 

 

 

 

 

 

 

 

 

 

Tax benefit

 

$

5,160

 

 

$

2,998

 

 

$

970

 
1.
Includes $18, $7 and $6 of expense related to the 2020 ESPP as of December 29, 2024, December 31, 2023, and December 25, 2022, respectively.
2.
Includes $149, $97 and $57 of expense related to the 2020 ESPP as of December 29, 2024, December 31, 2023, and December 25, 2022, respectively.

Stock Option Activity

The following table summarizes the Company’s stock option activity since December 31, 2023:

 

 

Number of
Options

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual
Term (Years)

 

 

Aggregate
Intrinsic
Value

 

Outstanding as of December 31, 2023

 

 

3,920,485

 

 

$

10.07

 

 

 

 

 

$

28,749

 

Granted

 

 

—

 

 

$

—

 

 

 

 

 

$

—

 

Exercised

 

 

(2,143,468

)

 

$

6.32

 

 

 

 

 

$

57,535

 

Cancelled/Forfeited

 

 

(73,730

)

 

$

21.30

 

 

 

 

 

$

657

 

Outstanding as of December 29, 2024

 

 

1,703,287

 

 

$

14.30

 

 

 

5.4

 

 

$

39,264

 

Options exercisable as of December 29, 2024

 

 

1,333,836

 

 

$

14.21

 

 

 

4.8

 

 

$

30,855

 

Options vested and expected to vest as of December 29, 2024

 

 

1,703,287

 

 

$

14.30

 

 

 

5.4

 

 

$

39,264

 

The Company estimates the fair value of stock options on the date of grant using a Black-Scholes option-pricing valuation model, which uses the expected option term, stock price volatility, and the risk-free interest rate. The expected option term assumption reflects the period for which the Company believes the option will remain outstanding. The Company elected to use the simplified method to determine the expected option term, for all periods presented, which is the average of the option’s vesting and contractual term. The Company’s computation of expected volatility is based on the historical volatility of selected comparable publicly traded companies over a period equal to the expected term of the option. The risk-free interest rate reflects the U.S. Treasury yield curve for a similar instrument with the same expected term in effect at the time of the grant.

The following table summarizes the valuation model assumptions, fair values and intrinsic values of stock options during the fiscal years indicated:

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Expected term (in years)

 

 

—

 

 

6.0

 

 

6.0

 

Expected stock price volatility

 

 

—

 

 

27.8% - 29.2%

 

 

27.6% - 28.6%

 

Risk-free interest rate

 

 

—

 

 

3.63% - 4.45%

 

 

1.64% - 4.16%

 

Expected dividend yield

 

 

—

 

 

0%

 

 

0%

 

Weighted average fair value at grant date

 

$

—

 

 

$

5.33

 

 

$

3.97

 

Fair value of stock options vested

 

$

3,229

 

 

$

3,160

 

 

$

3,245

 

Intrinsic value of stock options exercised

 

$

57,535

 

 

$

9,091

 

 

$

1,827

 

Proceeds from stock options exercised

 

$

13,680

 

 

$

776

 

 

$

568

 

As of December 29, 2024, total unrecognized stock-based compensation expense related to unvested stock options was $1,034, which is expected to be recognized over a weighted-average period of 1.17 years.

Restricted Stock Unit Activity

The following table summarizes the RSU activity since December 31, 2023:

 

 

Number of
RSUs

 

 

Weighted-
Average
Grant Date Fair Value

 

Unvested as of December 31, 2023

 

 

565,376

 

 

$

14.24

 

Granted

 

 

421,141

 

 

$

22.63

 

Vested1

 

 

(255,570

)

 

$

14.40

 

Forfeited

 

 

(86,806

)

 

$

17.09

 

Unvested as of December 29, 2024

 

 

644,141

 

 

$

19.28

 
1.
Includes 68,219 shares of common stock that were withheld to cover taxes on the release of vested RSUs and became available for future grants pursuant to the 2020 Equity Incentive Plan.

As of December 29, 2024, total unrecognized stock-based compensation expense related to the Company’s unvested RSU activity was $8,114, which is expected to be recognized over a weighted-average period of 1.92 years.

The fair value of RSU shares vested during the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022 was $3,681, $3,044 and $1,549, respectively.

Performance Stock Unit Activity

In fiscal 2024, the Company granted PSUs to certain of its officers and employees. These PSUs vest at the end of a three-year period based upon the level of achievement of certain Company performance metrics and the recipient’s continued service over such period. The number of shares that can be earned will range from 0% to 200% of the granted PSUs, based upon the Company’s level of achievement of the stated performance metrics. The number of PSUs expected to vest and for which compensation cost has been recognized is based on the number of awards that the Company believes are probable to vest as of December 29, 2024.

The following table summarizes the PSU activity since December 31, 2023:

 

 

 

Number of
PSUs

 

 

Weighted-
Average
Grant Date Fair Value

 

Unvested as of December 31, 2023

 

 

—

 

 

$

—

 

Granted

 

 

255,579

 

 

$

21.77

 

Forfeited

 

 

(16,815

)

 

$

20.99

 

Unvested as of December 29, 2024

 

 

238,764

 

 

$

21.82

 

As of December 29, 2024, total unrecognized stock-based compensation expense related to the Company’s unvested PSU activity was $7,564, which is expected to be recognized over a weighted-average period of 2.05 years.

The fair value of PSU shares vested during the fiscal years ended December 29, 2024, December 31, 2023 and December 25, 2022 was $0, as no shares have vested as of such periods.

2020 Equity Incentive Plan: In July 2020, the Board of Directors adopted the 2020 Incentive Plan, which was subsequently approved by the Company’s stockholders and became effective on July 30, 2020. Initially, the maximum number of shares of the Company’s common stock that may be issued under the 2020 Incentive Plan was 8,595,871 shares. The 2020 Incentive Plan provides that the number of shares reserved and available for issuance under the 2020 Incentive Plan will automatically increase each January 1, beginning on January 1, 2021 and ending on (and including) January 1, 2030, by an amount equal to 4% of the outstanding number of shares of common stock on the immediately preceding December 31 or such lesser number of shares as determined by the Board of Directors. As of December 29, 2024, 12,437,167 shares were available for future grants of the Company’s common stock, which excludes 1,761,694 shares of common stock that were automatically added to the available reserve on January 1, 2025.

Employee Stock Purchase Plan: In July 2020, the Board of Directors adopted the 2020 ESPP, which was subsequently approved by the Company’s stockholders and became effective on July 30, 2020. The 2020 ESPP authorizes the initial issuance of up to 900,000 shares of the Company’s common stock to certain eligible employees or, as designated by the Board of Directors, employees of a related company. The 2020 ESPP provides that the number of shares reserved and available for issuance under the 2020 ESPP will automatically increase each January 1, beginning on January 1, 2021 and ending on (and including) January 1, 2030, by an amount equal to the lesser of (i) 1% of the outstanding number of shares of common stock on the immediately preceding December 31 and (ii) 900,000, or such lesser number of shares as determined by the Board of Directors. As of December 29, 2024, 2,450,597 shares of the Company’s common stock were available for future issuance, which excludes 440,423 shares of common stock that were automatically added to the available reserve on January 1, 2025. The Board of Directors authorizes six-month offering periods, with the most recent beginning on November 16, 2024.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 29, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

17. Income Taxes

For the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, the provision for income taxes consisted of the following:

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

12,604

 

 

$

5,136

 

 

$

384

 

State

 

 

3,410

 

 

 

1,678

 

 

 

539

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(1,603

)

 

 

28

 

 

 

803

 

State

 

 

(261

)

 

 

(207

)

 

 

(125

)

Provision for income taxes

 

$

14,150

 

 

$

6,635

 

 

$

1,601

 

The Company’s income before income taxes is entirely derived from domestic sources for all periods presented. The reconciliation of the federal statutory income tax provision to the Company’s effective income tax provision is as follows:

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Provision at statutory rate of 21%

 

$

14,183

 

 

$

6,762

 

 

$

594

 

State income taxes

 

 

2,552

 

 

 

1,117

 

 

 

51

 

Stock-based compensation

 

 

(2,661

)

 

 

(1,636

)

 

 

225

 

Non-deductible costs

 

 

321

 

 

 

574

 

 

 

279

 

Charitable deduction

 

 

(108

)

 

 

(95

)

 

 

634

 

Change in deferred tax asset valuation allowance

 

 

—

 

 

 

84

 

 

 

(774

)

Revisions to prior year

 

 

50

 

 

 

4

 

 

 

212

 

Changes in uncertain tax positions

 

 

(82

)

 

 

58

 

 

 

347

 

Tax credits

 

 

—

 

 

 

(238

)

 

 

—

 

Other, net

 

 

(105

)

 

 

5

 

 

 

33

 

Provision for income taxes

 

$

14,150

 

 

$

6,635

 

 

$

1,601

 

 

Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company’s deferred income tax assets and liabilities at December 29, 2024 and December 31, 2023 were comprised of the following:

 

 

December 29,
2024

 

 

December 31,
2023

 

Deferred tax assets:

 

 

 

 

 

 

Accrued expenses

 

$

5,226

 

 

$

3,716

 

Allowances and other reserves

 

 

173

 

 

 

191

 

Inventory

 

 

765

 

 

 

1,498

 

Net operating loss carryforwards

 

 

106

 

 

 

110

 

Stock-based compensation

 

 

1,921

 

 

 

1,465

 

Lease liability

 

 

4,599

 

 

 

5,558

 

Other

 

 

471

 

 

 

467

 

Total deferred tax assets

 

 

13,261

 

 

 

13,005

 

Less: Valuation allowance

 

 

(84

)

 

 

(84

)

Net deferred tax assets

 

$

13,177

 

 

$

12,921

 

Deferred tax liabilities:

 

 

 

 

 

 

Prepaid expenses

 

$

776

 

 

$

490

 

Property, plant and equipment

 

 

6,216

 

 

 

6,778

 

Operating and finance lease right of use assets

 

 

4,204

 

 

 

5,517

 

Intangibles

 

 

582

 

 

 

507

 

Total deferred tax liabilities

 

$

11,778

 

 

$

13,292

 

Net deferred tax assets (liabilities)

 

$

1,399

 

 

$

(371

)

A valuation allowance is required to be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. A full review of all positive and negative evidence needs to be considered, including the Company’s current and past performance, the market environments in which the Company operates, the utilization of past tax credits, the length of carry back and carry forward periods and tax planning strategies that might be implemented. Management considered the scheduled reversal of deferred tax liabilities and projected future taxable income in making this assessment.

The activity in the Company’s deferred tax asset valuation allowance for the fiscal years ended December 29, 2024 and December 31, 2023 was as follows:

 

 

December 29,
2024

 

 

December 31,
2023

 

Valuation allowance as of beginning of year

 

$

84

 

 

$

—

 

Increases recorded to income tax provision

 

 

—

 

 

 

84

 

Valuation allowance as of end of year

 

$

84

 

 

$

84

 

As of December 29, 2024, the Company had unrecognized tax benefits, which represent the aggregate tax effect of the differences between tax return positions and the benefits recognized in the Company’s financial statements. At December 29, 2024, all of the unrecognized tax benefits, if recognized, would affect the Company’s annual effective tax rate. The unrecognized tax benefits are long-term in nature and the Company does not anticipate the balance of the unrecognized tax benefits to change materially in the next 12 months.

The following table reflects changes in gross unrecognized tax benefits:

 

 

December 29,
2024

 

 

December 31,
2023

 

Gross tax contingencies as of beginning of year

 

$

654

 

 

$

511

 

Increase in gross tax contingencies

 

 

—

 

 

 

165

 

Decrease in gross tax contingencies

 

 

(239

)

 

 

(22

)

Gross tax contingencies as of end of year

 

$

415

 

 

$

654

 

The Company files a U.S. federal income tax return, as well as income tax returns in various states. Tax years 2021 and forward remain open to examination by the tax jurisdictions to which the Company is subject, with certain state taxing jurisdictions being open back to 2018.
v3.25.0.1
Net Income Per Share
 12 Months Ended
Dec. 29, 2024
Earnings Per Share [Abstract]  
Net Income Per Share

18. Net Income Per Share

Basic and diluted net income per share attributable to the Company’s common stockholders were calculated as follows:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

53,388

 

 

$

25,566

 

 

$

1,230

 

Less: Net loss attributable to noncontrolling interests

 

 

—

 

 

 

—

 

 

 

(21

)

Net income attributable to Vital Farms, Inc. stockholders’ — basic and diluted

 

$

53,388

 

 

$

25,566

 

 

$

1,251

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

 

42,849,660

 

 

 

41,192,544

 

 

 

40,648,592

 

Weighted average effect of potentially dilutive securities:

 

 

 

 

 

 

 

 

 

Effect of potentially dilutive stock options

 

 

1,753,780

 

 

 

1,994,774

 

 

 

2,745,161

 

Effect of potentially dilutive RSUs

 

 

353,040

 

 

 

107,577

 

 

 

64,455

 

Effect of potentially dilutive PSUs

 

 

156,719

 

 

 

—

 

 

 

—

 

Effect of potentially dilutive common stock issuable pursuant to the ESPP

 

 

13,929

 

 

 

17,941

 

 

 

11,378

 

Weighted average common shares outstanding — diluted

 

 

45,127,128

 

 

 

43,312,836

 

 

 

43,469,586

 

Net income per share attributable to Vital Farms, Inc. stockholders

 

 

 

 

 

 

 

 

 

Basic

 

$

1.25

 

 

$

0.62

 

 

$

0.03

 

Diluted

 

$

1.18

 

 

$

0.59

 

 

$

0.03

 

The Company excluded the following shares of common stock, outstanding at each period end, from the computation of diluted net income per share attributable to Vital Farms, Inc. common stockholders for the periods indicated because including them would have had an anti-dilutive effect:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Options to purchase common stock

 

 

422

 

 

 

15,429

 

 

 

27,954

 

Unvested RSUs

 

 

4,318

 

 

 

8,362

 

 

 

45,386

 

Unvested PSUs

 

 

2,209

 

 

 

—

 

 

 

—

 

 

 

6,949

 

 

 

23,791

 

 

 

73,340

 

 
v3.25.0.1
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 29, 2024
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

19. Accumulated Other Comprehensive Income (Loss)

The amounts reclassified from accumulated other comprehensive income (loss) (“AOCI”) to the statements of income were as follows:

 

 

 

 

Amounts Reclassified from AOCI

 

 

 

 

 

Fiscal Year Ended

 

AOCI Component

 

Statement of Income Classification

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Losses on available-for-sale securities

 

Other income, net

 

$

1

 

 

$

182

 

 

$

96

 

 

Total before tax

 

 

1

 

 

 

182

 

 

 

96

 

 

Tax expense

 

 

—

 

 

 

(45

)

 

 

(22

)

 

Net of tax

 

$

1

 

 

$

137

 

 

$

74

 

The gross amount and related tax expense recorded in, and associated with, each component of other comprehensive income (loss) were as follows:

 

 

Fiscal Year Ended

 

 

 

December 29, 2024

 

 

December 31, 2023

 

 

December 25,
2022

 

 

 

Before Tax

 

Tax

 

After Tax

 

 

Before Tax

 

Tax

 

After Tax

 

 

Before Tax

 

Tax

 

After Tax

 

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized net holding gain

 

$

456

 

$

(77

)

$

379

 

 

$

1,371

 

$

(338

)

$

1,033

 

 

$

(1,745

)

$

405

 

$

(1,340

)

Amounts reclassified for realized losses to earnings

 

 

1

 

 

—

 

$

1

 

 

 

182

 

 

(45

)

$

137

 

 

 

96

 

 

(22

)

$

74

 

Total other comprehensive income (loss)

 

$

457

 

$

(77

)

$

380

 

 

$

1,553

 

$

(383

)

$

1,170

 

 

$

(1,649

)

$

383

 

$

(1,266

)
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 29, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

20. Commitments and Contingencies

Supplier Contracts: The Company purchases its egg inventories under long-term supply contracts with farms. Purchase commitments contained in these arrangements are variable dependent upon the quantity of eggs produced by the farms. Accordingly, there are no estimable future purchase commitments associated with these supplier contracts and there are no minimum payments associated with these long-term supply contracts. The Company records the total cost of eggs into inventory and they are expensed to cost of goods sold when the associated eggs are sold to customers and are also reported as part of the Company’s variable lease cost.

The Company has entered into agreements with certain qualifying suppliers to provide a one-time payment of up to $200,000, for the purpose of funding costs associated with farm startup. The payment of these incremental costs is contingent upon the achievement of certain milestones and is to be made no sooner than 90 days prior to the pullet placement date specified in each supplier agreement. Upon the achievement of such milestones, the Company recognizes an operating ROU asset and lease liability as a cost of obtaining the embedded lease within the supplier contract, which is included in “Leases” in Note 10 above. As of December 29, 2024, $13.4 million has been paid out and $1.6 million remains to be paid.

Indemnification Agreements: In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its Board of Directors and its executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. As of December 29, 2024, the Company has not incurred any material costs as a result of such indemnification agreements.

Litigation: The Company is subject to various claims and contingencies that are in the scope of ordinary and routine litigation incidental to its business, including those related to regulation, litigation, business transactions, employee-related matters and taxes, among others. When the Company becomes aware of a claim or potential claim, the likelihood of any loss or exposure is assessed. Based on these assessments and estimates, the Company may establish reserves, as appropriate. These assessments and estimates are based on the information available to management at the time and involve a significant amount of management judgment. Actual outcomes or losses may differ materially from the Company’s assessments and estimates.

On May 20, 2021, the Company and certain of its current and former officers were named as defendants in a class action complaint captioned Nicholas A. Usler et al. v. Vital Farms, Inc. et al. in the United States District Court for the Western District of Texas (the “District Court”). The plaintiffs alleged false advertising claims on behalf of themselves and a putative class of alleged consumers of the Company’s eggs. The named officers of the Company were subsequently dismissed as defendants in this matter. On July 9, 2024, a U.S. Magistrate Judge issued an order and report and recommendation, for review and adoption by the District Court. Collectively, the order and the report and recommendation (i) denied the plaintiffs’ motion for class certification, (ii) excluded the testimony and report of the plaintiffs’ damages expert and (iii) granted summary judgment for the Company with respect to two plaintiffs and three of the plaintiffs’ state claims. On September 23, 2024, the Magistrate Judge’s order and report and recommendation was adopted by the District Court, and the plaintiffs did not appeal the District Court’s ruling within the required timeline. The District Court’s order foreclosed the matter proceeding as a class action, and the plaintiffs in the matter agreed to drop their individual claims with prejudice. The District Court ordered the case closed on January 7, 2025. The Company does not consider these claims to be material to the Company individually or in the aggregate.

Although the Company maintains insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities and is subject to various exclusions and caps on amounts recoverable. Even if the Company believes a claim is covered by insurance, insurers may dispute its entitlement to recovery for a variety of potential reasons, which may affect the timing and, if the insurers prevail, the amount of the Company's recovery. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the claim if the likelihood of a potential loss is reasonably possible.
v3.25.0.1
Related Party Transactions
 12 Months Ended
Dec. 29, 2024
Related Party Transactions [Abstract]  
Related Party Transactions

21. Related Party Transactions

Ovabrite: Ovabrite, Inc., a Delaware corporation (“Ovabrite”), has been deemed a related party because its founders were stockholders of the Company, with the majority stockholder in Ovabrite also serving as the Company’s executive chairperson and member of the Board of Directors. Since Ovabrite’s incorporation in November 2016, the Company was deemed to have had a variable interest in Ovabrite, and Ovabrite was deemed to have been a VIE, of which the Company was the primary beneficiary. Accordingly, the Company has consolidated the results of Ovabrite since November 2016. All significant intercompany transactions between the Company and Ovabrite have been eliminated in consolidation.

Effective August 30, 2022, Ovabrite’s Board of Directors and the holders of the majority of its outstanding capital stock consented to dissolving the entity, and a Certificate of Dissolution was filed with the Delaware Secretary of State. As of December 29, 2024 and December 31, 2023, Ovabrite had completed its business activities and liquidated its remaining assets. The results of operations of the Ovabrite entity were immaterial for all periods presented.

Sandpebble Builders Preconstruction, Inc.: The Company utilizes Sandpebble Builders Preconstruction, Inc. and Sandpebble South, Inc. (collectively “Sandpebble”) for project management and related services associated with the construction and expansion of the Company’s egg processing facilities, including site selection, project management and related services for the Company’s potential future egg packing facility in Seymour, Indiana. The Company’s contract with Sandpebble for services related to the Company’s next egg packing facility in Seymour, Indiana was awarded after a competitive bidding process. Victor Canseco, the owner and principal of Sandpebble, is the father of Russell Diez-Canseco, the Company’s President and Chief Executive Officer and a member of the Board of Directors. In connection with the services described above, the Company paid Sandpebble $1,022, $631, and $962 during the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, respectively. Amounts paid to Sandpebble are included in property, plant and equipment, net and selling, general and administrative costs. As of the fiscal years ended December 29, 2024 and December 31, 2023, amounts owed to Sandpebble were $303 and $0, respectively, and are included in accounts payable and accrued liabilities.

Whole Foods Market, Inc: A member of the Board of Directors was, until February 2022, an executive vice president and senior advisor at Whole Foods. The Company serves the majority of its natural channel retail customers through food distributors, such as US Foods Inc. and United Natural Foods, Inc., who purchase, store, sell and deliver products to Whole Foods. While the Company cannot precisely determine its specific revenue attributable to Whole Foods, it is a significant end customer.
v3.25.0.1
401(k) Savings Plan
 12 Months Ended
Dec. 29, 2024
Retirement Benefits [Abstract]  
401(K) Savings Plan

22. 401(k) Savings Plan

The Company established a defined contribution savings plan in 2017 under Section 401(k) of the Internal Revenue Code of 1986, as amended. This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Company contributions to the plan may be made at the discretion of the Board of Directors. During the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, the Company made contributions totaling $1,472, $1,185, and $861 respectively, to the plan.
v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 29, 2024
Segment Reporting [Abstract]  
Segment Reporting

23. Segment Reporting

 

The Company has only one reportable segment for which discrete financial information is available: Eggs and Butter. The Company derives revenue in the United States and manages and organizes its business activities on a consolidated basis. The Eggs and Butter segment derives revenues primarily from sales of its products, including eggs and butter, to customers, which include natural retailers, mainstream retailers, distributors, and foodservice customers.

The accounting policies of the Eggs and Butter segment are the same as those described in the “Summary of Significant Accounting Policies” in Note 2 above. The Company’s chief operating decision maker (“CODM”) as defined by ASU 2023-07, currently the Company’s President and Chief Executive Officer, assesses performance for the segment and decides how to allocate resources based on net income that also is reported on the consolidated statements of income as consolidated net income. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets.

The CODM uses net income to evaluate income generated from net revenue in deciding whether to reinvest profits into the Eggs and Butter segment or for other valid corporate purposes. Net income is also used to monitor the Company’s forecasted budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to the Company’s competitors.

The following table presents the significant segment expenses and other segment items regularly reviewed by the Company’s CODM:

 

 

Eggs and Butter Segment

 

 

Fiscal Year Ended

 

 

December 29, 2024

 

 

December 31, 2023

 

 

December 25, 2022

 

Net revenue

$

606,307

 

 

$

471,857

 

 

$

362,050

 

Less:

 

 

 

 

 

 

 

 

Cost of goods sold1

 

364,097

 

 

 

300,127

 

 

 

247,573

 

Shipping and distribution

 

32,435

 

 

 

27,344

 

 

 

30,104

 

Other selling expenses

 

8,304

 

 

 

7,229

 

 

 

6,363

 

Marketing

 

32,138

 

 

 

23,625

 

 

 

13,301

 

Other selling, general & administrative1

 

92,689

 

 

 

69,788

 

 

 

56,726

 

Interest income

 

(5,246

)

 

 

(2,542

)

 

 

(992

)

Interest expense

 

1,010

 

 

 

782

 

 

 

114

 

Depreciation and amortization

 

13,093

 

 

 

10,490

 

 

 

5,880

 

Income tax provision

 

14,150

 

 

 

6,635

 

 

 

1,601

 

Other segment expenses2

 

249

 

 

 

2,813

 

 

 

150

 

Segment net income

$

53,388

 

 

$

25,566

 

 

$

1,230

 

 

 

 

 

 

 

 

 

 

Reconciliation of profit or loss

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

—

 

 

 

—

 

 

 

—

 

Consolidated net income

$

53,388

 

 

$

25,566

 

 

$

1,230

 

 

1.
Excludes depreciation and amortization.
2.
Other segment expenses included in segment net income includes the change in fair value of derivative instruments and other miscellaneous gains and losses.
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 29, 2024
Accounting Policies [Abstract]  
Use of Estimates

Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates principally include revenue recognition, determination of useful lives for property, plant and equipment, leases, variable consideration, goodwill, allowance for credit losses, inventory obsolescence, stock option valuations, accrued liabilities, income taxes and contingencies. Actual results could differ from those estimates.
Concentrations of Credit Risk and Significant Customers

Concentrations of Customers and Risk: A substantial amount of shell egg processing occurs at the Company’s Egg Central Station shell egg processing facility in Missouri. Any shutdown or period of reduced production at this facility, which may be caused by regulatory noncompliance or other issues, as well as factors beyond the Company’s control, such as natural disaster, weather, fire, power interruption, work stoppage, disease outbreaks or pandemics, equipment failure or maintenance or delay in raw materials delivery, would significantly disrupt the Company’s ability to deliver its products in a timely manner, meet contractual obligations and operate the business.

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, investments, accounts receivable and derivative instruments. The Company maintains deposits with large financial institutions that the Company believes are of high credit quality. At times the Company’s cash and cash equivalents balances with individual banking institutions are in excess of federally insured limits. The Company has not experienced any losses related to its cash and cash equivalents balances.

The Company's customer concentration for the periods presented were as follows:

 

 

 

Net Revenue
Year Ended December 29, 2024

 

Net Revenue
Year Ended December 31, 2023

 

Net Revenue
Year Ended December 25, 2022

 

Accounts Receivable, Net
as of December 29, 2024

 

Accounts Receivable, Net
as of December 31, 2023

Customer A

 

24%

 

25%

 

26%

 

16%

 

18%

Customer B

 

*

 

*

 

11%

 

10%

 

12%

Customer C

 

*

 

*

 

*

 

13%

 

11%

Customer D

 

*

 

*

 

*

 

10%

 

11%

* Denotes percentage less than 10%
Cash and Cash Equivalents

Cash and Cash Equivalents: The Company considers all short-term, highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash deposits are all in financial institutions in the United States. As of December 29, 2024 and December 31, 2023, cash and cash equivalents consisted of cash on deposit with balances denominated in U.S. dollars and investments in money market funds.
Investment Securities

Investment Securities: The Company accounts for its investment securities in accordance with ASC 320, Investments-Debt and Equity Securities. The Company considers all of its debt securities for which there is a determinable fair market value, and there are no restrictions on the Company’s ability to sell within the next 12 months, as available-for-sale. The Company classifies these securities as current, because the amounts invested are available for current operations. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of tax, recorded in other comprehensive income until the security is settled or sold, except for changes in allowance for any expected credit losses, which are reported on a gross basis in other expense.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is recorded in interest income. The cost of securities sold is based on the specific identification method with realized gains and losses on the sale of debt securities and declines in value due to credit-related factors, reclassified out of accumulated other comprehensive income when sold and recorded in other income. Income tax effects related to realized gains and losses on available-for-sale securities are released from accumulated other comprehensive income quarterly with the recognition of the Company’s tax provision. Interest and dividends on securities classified as available-for-sale are recorded in interest income.
Variable Interest Entity

Variable Interest Entity: The Company consolidates all entities where a controlling financial interest exists. For fiscal 2022, the Company considered its relationship with Ovabrite, Inc., which was dissolved in September 2022, to determine whether the Company had a variable interest in that entity, and if so, whether the Company was the primary beneficiary of the relationship. GAAP requires variable interest entities (“VIEs”) to be consolidated if an entity’s interest in the VIE is a controlling financial interest. Under the variable model, a controlling financial interest is determined based on which entity, if any, has (i) the power to direct the activities of the VIE that most significantly impacts the VIE’s economic performance and (ii) the obligations to absorb losses that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Management performs ongoing reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with a VIE will cause the consolidation conclusion to change. The consolidation status of a VIE may change as a result of such reassessments. Changes in consolidation status are applied prospectively in accordance with GAAP.
Segment Information

Segment Information: The Company operates and manages its business as one reportable and operating segment. The Company’s Chief Executive Officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for purposes of evaluating financial performance and allocating resources. All of the Company’s long-lived assets and customers are located in the United States.
Fair Value of Financial Instruments

Fair Value of Financial Instruments: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three levels of inputs that may be used to measure fair value are defined below:

•
Level 1 - Quoted prices in active markets for identical assets or liabilities.
•
Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•
Level 3 - Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The carrying values of cash, trade receivables, other non-trade receivables within prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities approximate their fair value due to the short-term nature of these assets and liabilities.
Accounts Receivable

Accounts Receivable: Accounts receivable are stated at amounts due from customers net of any allowance for credit losses. The Company generally does not have collateral for its receivables, but the Company does periodically evaluate the creditworthiness of its customers.
Allowance for Credit Losses

Allowance for Credit Losses: The allowance for expected credit losses related to trade receivables is estimated based on the trade receivable aging category, credit risk of specific customers, past collection history, and management’s evaluation of accounts receivable. The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The provision for expected credit losses is charged within selling, general and administrative costs. These losses have been immaterial to date. Subsequent recoveries, if any, are credited to the allowance.

The allowance for expected credit losses related to other non-trade receivables are estimated based on the aging category and the probability of default.

Inventories

Inventories: Inventories are stated at the lower of cost (determined under the weighted average cost method) or net realizable value. In addition to product cost, inventory costs include expenditures such as in-bound shipping and handling and warehousing costs incurred in bringing the inventory to its existing condition and location. Inventory includes eggs and egg-related products, butter and butter-related products, packaging, feed, laying hens, pullets, and equipment parts. A reduction in the carrying value of an inventory item from cost to net realizable value is recorded in cost of goods sold with the offset to inventory. Any inventory that does not meet the quality control standards of the Company is separated and written down to its net realizable value.
Derivative Financial Instruments

Derivative Financial Instruments: The Company uses derivative instruments as part of its risk management activities to reduce its exposure to commodity price risk. Business operations give rise to certain market exposures, mostly due to changes in commodity prices of corn and soybean meal. Credit risks associated with derivative contracts are not significant, as the Company minimizes counterparty exposure by dealing with creditworthy counterparties and collateralized insurers and by utilizing exchange traded instruments and insurance backed commodity settlement contracts. While the Company may be exposed to potential losses due to the credit risk of non-performance by these counterparties, losses are not anticipated. The Company does not hold derivative instruments for trading purposes. Additionally, the Company’s derivative contracts are short-term in duration and do not make use of credit-risk-related contingent features.

Derivatives used to manage commodity price risk are not designated for hedge accounting treatment. Therefore, the changes in fair value of these derivatives are recorded as incurred within other expense, net. Net realized gains and losses on derivative instruments are reported as a reconciling item from net income to cash from operating activities in the consolidated statements of cash flows. Cash flows related to settlements and purchases of derivative instruments are reported as investing activities within the consolidated statements of cash flows.

Property, Plant and Equipment

Property, Plant and Equipment: Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives. The general range of useful lives of other property, plant and equipment is as follows:

 

 

 

 

Estimated Useful Life

Land

N/A

Land improvements

 

15 to 20 years

Buildings and improvements

15 to 39 years

Vehicles

5 years

Machinery and equipment

2 to 7 years

Furniture and fixtures

5 years

Leasehold improvements

Lesser of lease term or 7 years

When assets are sold or retired, the cost and related accumulated depreciation or amortization of assets disposed of are removed from the accounts, with any resulting gain or loss recorded in operations in the consolidated statements of income. Normal repairs and maintenance costs are expensed as incurred to operations.
Goodwill

Goodwill: Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not amortized but is tested for impairment annually on the first day of the fourth fiscal quarter or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company’s goodwill impairment test is performed at the enterprise level given the single reporting unit.

The Company first assesses qualitative factors to determine whether events or circumstances existed that would lead the Company to conclude that it is more likely than not that the fair value of the reporting unit is below its carrying amount. If the Company determines that it is more likely than not that the fair value of the reporting unit is below the carrying amount based on qualitative factors or if significant changes to macro-economic factors related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill assessment would be required. In the quantitative evaluation, the fair value of the reporting unit is determined and compared to the carrying value. If the fair value is greater than the carrying value, then the carrying value is deemed to be recoverable and no further action is required. If the fair value estimate is less than the carrying value, goodwill is considered impaired for the amount by which the carrying amount exceeds the reporting unit’s fair value and a charge is reported as impairment of goodwill in the consolidated statements of income. To date, the Company has not recorded any impairment charges associated with its goodwill.
Cloud Computing Arrangements

Cloud Computing Arrangements: The Company incurs costs to implement cloud computing arrangements hosted by third party vendors. Costs incurred to implement cloud computing service arrangements are capitalized when incurred during the application development phase and recognized as other current assets and other non-current assets in the consolidated balance sheets. Amortization of the cloud computing arrangement implementation costs will begin once the software is placed in service.

Leases

Leases: The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. Under ASC 842, Leases (“Topic 842”), a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset.

The Company has made an accounting policy election not to recognize right-of-use (“ROU”) assets and lease liabilities for leases with a term of 12 months or less. For all other leases, the Company recognizes ROU assets and lease liabilities based on the present value of lease payments over the lease term at the commencement date of the lease. The Company’s recognized ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date, which are reduced by any lease incentives.

Future lease payments may include fixed rent escalation clauses or payments that depend on an index (such as the Consumer Price Index measured by the U.S. Bureau of Labor Statistics). Subsequent index changes and other periodic market-rate adjustments to base rent are recorded as variable lease expense during the period in which they are incurred. Residual value guarantees or payments for terminating the lease are included in the lease payments only when it is probable they will be incurred.

The Company has made an accounting policy election to account for lease and non-lease components in its contracts as a single lease component for all asset classes. The non-lease components typically represent additional services transferred to the Company, such as common area maintenance for real estate, which are variable in nature and recorded in variable lease expense in the period incurred.
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets: The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate the carrying value of an asset may not be recoverable from the estimated undiscounted future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects and the effects of obsolescence, demand, competition and other economic factors. The Company did not recognize an impairment loss during the fiscal years ended December 29, 2024, December 31, 2023 and December 25, 2022.
Noncontrolling Interest

Noncontrolling Interest: The Company recognizes noncontrolling interest related to VIEs in which the Company is the primary beneficiary, as equity in the consolidated financial statements separate from the parent entity’s equity. The amount of net income or loss attributable to noncontrolling interests is included in consolidated net income on the face of the consolidated statements of income. Changes in the parent entity’s ownership interest in a subsidiary that do not result in deconsolidation are treated as equity transactions if the parent entity retains its controlling financial interest. In addition, when a subsidiary is deconsolidated, any retained noncontrolling equity investment in the former subsidiary will be initially measured at fair value and the difference between the carrying value and fair value of the retained interest will be recorded as a gain or loss. Affiliate equity interests where the Company has certain rights to demand settlement are presented at their current redemption values, as redeemable noncontrolling interest in the consolidated balance sheet. Because these transactions take place between entities under common control, any gains or losses attributable to these transactions are required to be included within additional paid-in-capital on the consolidated balance sheets.
Income Taxes

Income Taxes: Income taxes are computed using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements. In estimating future tax consequences, the Company considers all expected future events other than enactment of changes in tax laws or rates. A valuation allowance is recorded, if necessary, to reduce net deferred tax assets to their realizable values if management does not believe it is more likely than not that the net deferred tax assets will be realized.

The Company recognizes the benefit of an income tax position only if it is more likely than not (greater than 50%) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position. Otherwise, no benefit can be recognized. Assessing an uncertain tax position begins with the initial determination of the sustainability of the position and is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed. Additionally, the Company must accrue interest and related penalties, if applicable, on all tax exposures for which reserves have been established consistent with jurisdictional tax laws.

The Company’s policy is to recognize interest and penalties related to uncertain tax positions in the provision for income taxes. As of December 29, 2024 and December 31, 2023 the Company had accrued interest and penalties related to uncertain tax positions of $157 and $171.
Net Income per Share Attributable to Vital Farms, Inc. Common Stockholders

Net Income per Share Attributable to Vital Farms, Inc. Common Stockholders: The Company applies the two-class method to compute basic and diluted net income per share attributable to the Company’s common stockholders when shares meet the definition of participating securities. The two-class method determines net income per share for each class of the Company’s common stock and preferred stock according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between the Company’s common stock and preferred stock based upon their respective rights to share in the earnings as if all income for the period had been distributed. During periods of loss, there is no allocation required under the two-class method since the preferred stock does not have a contractual obligation to share in the Company’s losses.

Basic net income per share attributable to the Company’s stockholders is computed by dividing net income by the weighted-average number of shares outstanding during the period without consideration of potentially dilutive common stock. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue shares of the Company’s common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company unless inclusion of such shares would be anti-dilutive. For periods in which the Company reports net losses, diluted net loss per common share attributable to the Company’s common stockholders is the same as basic net loss, because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.
Revenue Recognition

Revenue Recognition: The Company generates revenue primarily through sales of products to its customers, which include natural channel retailers, mainstream channel retailers, distributors and foodservice customers. The Company sells its products to customers on a purchase-order basis.

Revenue is recognized when control of the product is transferred to the customer and the related performance obligation is satisfied, which typically occurs upon delivery of the product to the customer, for an amount that reflects the net consideration the Company expects to receive in exchange for delivering the product. The Company offers sales incentives through various programs to customers and allow deductions from its customers, which may include credits or discounts to customers in the event that products do not conform to customer specifications or expire at a customer’s site. The cost associated with variable consideration is estimated and recorded as a reduction in revenue and is recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of this cost therefore requires management judgment regarding the volume of promotional offers that will be redeemed. Differences between estimated cost and actual redemptions are recognized as a change in management estimate in a subsequent period.

In many cases, key sales terms such as pricing and quantities ordered are established on a regular basis such that most customer arrangements and related incentives have a duration of less than one year. Amounts billed and due from customers are short-term in nature and are classified as receivables since payments are unconditional and only the passage of time is required before payments are due.
Shipping and Distribution

Shipping and Distribution: The Company’s shipping and distribution costs include costs incurred with third-party carriers to transport products to customers and salaries and overhead costs related to activities to prepare the Company’s products for shipment. Shipping and distribution costs were $32,435, $27,344, and $30,104 during the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, respectively. Freight-in costs are included within cost of goods sold and were $3,526, $4,823, and $9,610 during the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, respectively.
Stock-Based Compensation

Stock-Based Compensation: The Company measures all stock-based awards granted to employees and directors based on the estimated fair value on the date of the grant and recognizes compensation expense for those awards, over the requisite service period, which is generally the vesting period of the respective award. Stock options generally vest ratably over three years from the date of grant and expire 10 years from the date of grant. Restricted stock awards generally vest ratably over three years from the date of grant and contain no other service or performance conditions. Performance stock awards vest at the end of a three-year period dependent upon the level of achievement of certain Company performance metrics and the recipient’s continued service over such period. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service or vesting period. Forfeitures for stock options and restricted stock awards are recognized as they occur. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing valuation model, which requires inputs based on certain subjective assumptions, including the fair market value of the Company’s common stock, expected stock price volatility, the expected term of the option, the risk-free interest rate for a period that approximates the expected term of the option, and the Company’s expected dividend yield. The Company classifies stock-based compensation expense in its consolidated statements of income in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified.
Advertising and Promotion Expenses

Advertising and Promotion Expenses: Advertising and promotion expenses consist primarily of production costs and the costs to communicate the advertisements to promote and market the Company’s products. Production costs such as idea development, artwork, audio and video crews and other upfront development costs are expensed the first time the associated advertising campaign is launched or aired. The costs to communicate the advertisements such as airtime and distribution costs are expensed as incurred. During the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, the Company incurred advertising and promotion expenses of approximately $32,138, $23,625, and $13,301, respectively.
Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements: In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) and also issued subsequent amendments to the initial guidance, ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, ASU 2020-02, ASU 2020-03 and ASU 2022-02 (collectively, “Topic 326”), to introduce a new impairment model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Topic 326 requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The Company adopted ASU 2016-13 on December 26, 2022. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. There was no impact on the Company’s consolidated financial statements at adoption.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which intends to simplify the guidance by removing certain exceptions to the general principles and clarifying or amending existing guidance. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company adopted ASU 2019-12 during fiscal 2022 and there was no material impact on the Company’s consolidated financial statements for the fiscal years ended December 25, 2022, December 31, 2023 and December 29, 2024.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures (“ASU 2023-07”) in order to improve stockholders’ understanding of an entity’s business activities through enhanced disclosures around reportable segments. ASU 2023-07 requires incremental and more detailed disclosure regarding segment expenses on both an annual and interim basis. The Company adopted ASU 2023-07 on December 29, 2024. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements but resulted in expanded disclosures in Note 23 “Segment Reporting” below.
Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Issued Accounting Pronouncements Not Yet Adopted: In December 2023, the FASB issued ASU No 2023-09, Income Taxes (Topic 740) — Improvements to Income Tax Disclosures (“ASU 2023-09”) in order to enhance the transparency and usefulness of income tax disclosures. The guidance is applicable to all entities subject to income tax and it will require disclosure of certain categories within the rate reconciliation to improve consistency as well as disclosure of reconciling items which meet a certain quantitative threshold which will improve transparency. Additionally, entities must disclose the amount of taxes paid to federal, state and foreign municipalities. For public business entities ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The Company expects to adopt the standard for the fiscal year beginning December 30, 2024. The Company is currently evaluating the impact of its pending adoption of ASU 2023-09 on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact of its pending adoption of ASU 2024-03 on its consolidated financial statements.

v3.25.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 29, 2024
Accounting Policies [Abstract]  
Summary of Significant Customers Information

The Company's customer concentration for the periods presented were as follows:

 

 

 

Net Revenue
Year Ended December 29, 2024

 

Net Revenue
Year Ended December 31, 2023

 

Net Revenue
Year Ended December 25, 2022

 

Accounts Receivable, Net
as of December 29, 2024

 

Accounts Receivable, Net
as of December 31, 2023

Customer A

 

24%

 

25%

 

26%

 

16%

 

18%

Customer B

 

*

 

*

 

11%

 

10%

 

12%

Customer C

 

*

 

*

 

*

 

13%

 

11%

Customer D

 

*

 

*

 

*

 

10%

 

11%

* Denotes percentage less than 10%
Schedule of Useful Lives of Property Plant and Equipment The general range of useful lives of other property, plant and equipment is as follows:

 

 

 

 

Estimated Useful Life

Land

N/A

Land improvements

 

15 to 20 years

Buildings and improvements

15 to 39 years

Vehicles

5 years

Machinery and equipment

2 to 7 years

Furniture and fixtures

5 years

Leasehold improvements

Lesser of lease term or 7 years
v3.25.0.1
Investment Securities (Tables)
 12 Months Ended
Dec. 29, 2024
Investments, Debt and Equity Securities [Abstract]  
Summary of Available-for-sale Investment Securities

The following table summarizes the Company’s available-for-sale investment securities as of December 29, 2024:

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Allowance for Credit Losses

 

 

Fair Value

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

$

9,702

 

 

$

15

 

 

$

(25

)

 

$

—

 

 

$

9,692

 

Total

 

$

9,702

 

 

$

15

 

 

$

(25

)

 

$

—

 

 

$

9,692

 

 

The following table summarizes the Company’s available-for-sale investment securities as of December 31, 2023:

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Allowance for Credit Losses

 

 

Fair Value

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

$

33,134

 

 

$

10

 

 

$

(477

)

 

$

—

 

 

$

32,667

 

Total

 

$

33,134

 

 

$

10

 

 

$

(477

)

 

$

—

 

 

$

32,667

 
Schedule of Proceeds, Gross Realized Gains and Losses from the Sale of Available-for-sale Securities

The following table presents the Company’s proceeds, gross realized gains and losses from the sale of available-for-sale securities for the periods presented:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Proceeds

 

$

—

 

 

$

2,895

 

 

$

—

 

 

 

 

 

 

 

 

 

 

Gross realized gains

 

 

—

 

 

 

—

 

 

 

9

 

Gross realized losses

 

 

(1

)

 

 

(183

)

 

 

(105

)

Net realized losses

 

$

(1

)

 

$

(183

)

 

$

(96

)
Summary of Contractual Maturities of Investment Securities The amortized cost and fair value of the Company’s investments in available-for-sale securities as of December 29, 2024 by contractual maturity are as follows:

 

 

Amortized Cost

 

 

Fair Value

 

Due within one year

 

$

8,696

 

 

$

8,673

 

Due after one year through five years

 

 

1,006

 

 

 

1,019

 

Total available-for-sale

 

$

9,702

 

 

$

9,692

 
Schedule of Unrealized Loss Aging for Available-for-sale Securities

The following tables present the Company’s unrealized loss aging for available-for-sale securities by type and length of time the security was in a continuous unrealized loss position as of the periods presented:

 

 

 

December 29, 2024

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

$

-

 

 

$

-

 

 

$

8,014

 

 

$

(25

)

 

$

8,014

 

 

$

(25

)

Total

 

$

-

 

 

$

-

 

 

$

8,014

 

 

$

(25

)

 

$

8,014

 

 

$

(25

)

 

 

 

December 31, 2023

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

$

699

 

 

$

(3

)

 

$

29,247

 

 

$

(474

)

 

$

29,946

 

 

$

(477

)

Total

 

$

699

 

 

$

(3

)

 

$

29,247

 

 

$

(474

)

 

$

29,946

 

 

$

(477

)

 
v3.25.0.1
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule Of Notional Amounts of Outstanding Derivative Instruments

The following table presents the aggregated outstanding notional amounts related to the Company’s derivative financial instruments for the periods presented:

 

 

Metric

 

December 29,
2024

 

 

December 31,
2023

 

Commodity:

 

 

 

 

 

 

 

 

Corn

 

Bushels (in thousands)

 

 

3,593

 

 

 

2,351

 

Soybean Meal

 

Tons

 

 

37

 

 

 

25

 
v3.25.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 29, 2024
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets Measured at Fair Value

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis for the periods presented:

 

 

Fair Value Measurements as of December 29, 2024, Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market

 

$

114,249

 

 

$

—

 

 

$

—

 

 

$

114,249

 

Investment securities, available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

 

—

 

 

 

9,692

 

 

 

—

 

 

 

9,692

 

Prepaid expenses and other current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

—

 

 

 

1,153

 

 

 

—

 

 

 

1,153

 

Total assets measured at fair value

 

$

114,249

 

 

$

10,845

 

 

$

—

 

 

$

125,094

 

 

 

 

Fair Value Measurements as of December 31, 2023, Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market

 

$

64,498

 

 

$

—

 

 

$

—

 

 

$

64,498

 

Investment securities, available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate bonds and U.S. dollar
   denominated foreign bonds

 

 

—

 

 

 

32,667

 

 

 

—

 

 

 

32,667

 

Prepaid expenses and other current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

—

 

 

 

394

 

 

 

—

 

 

 

394

 

Total assets measured at fair value

 

$

64,498

 

 

$

33,061

 

 

$

—

 

 

$

97,559

 
v3.25.0.1
Revenue Recognition (Tables)
 12 Months Ended
Dec. 29, 2024
Revenue from Contract with Customer [Abstract]  
Summary of Net Revenue by Primary Product

The following table summarizes the Company’s net revenue by primary product for the periods presented:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Net Revenue:

 

 

 

 

 

 

 

 

 

Eggs and egg-related products

 

$

580,954

 

 

$

449,045

 

 

$

339,214

 

Butter and butter-related products

 

 

25,353

 

 

 

22,812

 

 

 

22,836

 

Net Revenue

 

$

606,307

 

 

$

471,857

 

 

$

362,050

 

 
v3.25.0.1
Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 29, 2024
Allowance for Credit Loss [Abstract]  
Schedule of Changes in Allowance for Credit Losses

Changes in the allowance for credit losses for the periods presented were as follows:

 

 

Accounts Receivable

 

 

Prepaid Expenses and other Current Assets

 

 

Total

 

As of December 26, 2021

 

$

(269

)

 

$

—

 

 

$

(269

)

Provisions charged to operating results

 

 

(546

)

 

 

(206

)

 

 

(752

)

Account write-offs

 

 

322

 

 

 

—

 

 

 

322

 

As of December 25, 2022

 

$

(493

)

 

$

(206

)

 

$

(699

)

Provisions charged to operating results

 

 

(364

)

 

 

(148

)

 

 

(512

)

Account write-offs

 

 

307

 

 

 

127

 

 

 

434

 

As of December 31, 2023

 

$

(550

)

 

$

(227

)

 

$

(777

)

Provisions charged to operating results

 

 

(290

)

 

 

(153

)

 

 

(443

)

Account write-offs

 

 

149

 

 

 

140

 

 

 

289

 

As of December 29, 2024

 

$

(691

)

 

$

(240

)

 

$

(931

)
v3.25.0.1
Inventories (Tables)
 12 Months Ended
Dec. 29, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventory

Inventory consisted of the following as of the periods presented:

 

 

December 29,
2024

 

 

December 31,
2023

 

Eggs and egg-related products

 

$

7,384

 

 

$

25,521

 

Butter and butter-related products

 

 

8,691

 

 

 

1,697

 

Packaging

 

 

4,296

 

 

 

4,988

 

Pullets

 

 

1,657

 

 

 

289

 

Other

 

 

1,860

 

 

 

896

 

Reserve for inventory obsolescence

 

 

(222

)

 

 

(496

)

Inventories

 

$

23,666

 

 

$

32,895

 
v3.25.0.1
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 29, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment

Property, plant and equipment consisted of the following as of the periods presented:

 

 

December 29,
2024

 

 

December 31,
2023

 

Land

 

$

11,200

 

 

$

552

 

Land improvements

 

 

818

 

 

 

818

 

Buildings and improvements

 

 

30,607

 

 

 

30,532

 

Vehicles

 

 

1,468

 

 

 

1,055

 

Machinery and equipment

 

 

58,847

 

 

 

50,979

 

Leasehold improvements

 

 

491

 

 

 

492

 

Furniture and fixtures

 

 

531

 

 

 

461

 

Construction in progress

 

 

14,456

 

 

 

3,001

 

 

 

118,418

 

 

 

87,890

 

Less: Accumulated depreciation and amortization

 

 

(33,897

)

 

 

(21,051

)

Property, plant and equipment, net

 

$

84,521

 

 

$

66,839

 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 29, 2024
Leases [Abstract]  
Schedule of Components of Lease Cost

The components of lease cost consisted of the following for the periods presented:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

 Operating lease cost

 

$

4,789

 

 

$

1,714

 

 

$

1,445

 

 Finance lease cost – amortization of right-of-use assets

 

 

3,838

 

 

 

2,565

 

 

 

439

 

 Finance lease cost – interest on lease liabilities

 

 

941

 

 

 

740

 

 

 

87

 

 Short-term lease cost

 

 

158

 

 

 

771

 

 

 

67

 

 Variable lease cost

 

 

11,293

 

 

 

7,533

 

 

 

2,967

 

 Variable lease cost – long-term supply contracts

 

 

225,390

 

 

 

200,050

 

 

 

143,696

 

 Total lease cost

 

$

246,409

 

 

$

213,373

 

 

$

148,701

 
Summary of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases is as follows:

 

 

As of December 29, 2024

 

 

As of December 31, 2023

 

Finance Leases

 

 

 

 

 

 

Machinery and equipment

 

$

18,074

 

 

$

16,321

 

Less: Accumulated depreciation and amortization

 

 

(6,675

)

 

 

(2,837

)

Property, plant and equipment, net

 

$

11,399

 

 

$

13,484

 

 

 

 

As of December 29, 2024

 

 

As of December 31, 2023

 

Weighted-average remaining lease term (years)

 

 

 

 

 

 

Operating leases

 

 

2.38

 

 

 

2.97

 

Finance leases

 

 

2.83

 

 

 

3.83

 

Weighted-average discount rate

 

 

 

 

 

 

Operating leases

 

 

7.55

%

 

 

7.38

%

Finance leases

 

 

7.17

%

 

 

7.12

%
Summary of Operating and Finance Leases Future Undiscounted Cash Flows

Future undiscounted cash flows are as follows:

 

 

As of December 29, 2024

 

 

 

Operating Leases

 

 

Finance Leases

 

2025

 

$

4,171

 

 

$

4,633

 

2026

 

 

3,018

 

 

 

4,670

 

2027

 

 

—

 

 

 

3,850

 

Total lease payments

 

 

7,189

 

 

 

13,153

 

Less imputed interest

 

 

(422

)

 

 

(1,210

)

Total present value of lease liabilities

 

$

6,767

 

 

$

11,943

 

 
Summary of Cash Flow Information Related to Leases

Supplemental cash flow information related to leases is as follows:

Cash paid for amounts included in measurement of lease liabilities:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

Operating cash outflows - payments on operating leases

 

$

17,554

 

 

$

1,759

 

Operating cash outflows - interest payments on finance leases

 

 

941

 

 

 

740

 

Financing cash outflows - principal payments on finance leases

 

 

3,521

 

 

 

2,246

 

Right-of-use assets obtained in exchange for new lease obligations:

 

 

As of December 29, 2024

 

 

As of December 31, 2023

 

Operating leases

 

$

14,988

 

 

$

8,583

 

Finance leases

 

 

1,728

 

 

 

7,390

 
v3.25.0.1
Goodwill and Other Assets (Tables)
 12 Months Ended
Dec. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill and Other Assets

Goodwill and other assets consisted of the following as of the periods presented:

 

 

December 29,
2024

 

 

December 31,
2023

 

Goodwill

 

$

3,858

 

 

$

3,858

 

Cloud computing implementation costs

 

 

3,834

 

 

 

—

 

Deferred tax asset

 

 

1,399

 

 

 

—

 

Other non-current assets

 

 

62

 

 

 

46

 

Goodwill and other assets

 

$

9,153

 

 

$

3,904

 
v3.25.0.1
Accrued Liabilities (Tables)
 12 Months Ended
Dec. 29, 2024
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities

Accrued liabilities consisted of the following as of the periods presented:

 

 

December 29,
2024

 

 

December 31,
2023

 

Employee-related costs

 

$

15,074

 

 

$

9,131

 

Trade promotions and chargebacks

 

 

8,204

 

 

 

6,982

 

Distribution fees and freight

 

 

3,193

 

 

 

2,876

 

Marketing and broker commissions

 

 

2,235

 

 

 

3,627

 

Purchases of inventory

 

 

641

 

 

 

525

 

Professional fees

 

 

958

 

 

 

1,066

 

Other

 

 

1,023

 

 

 

11

 

Accrued liabilities

 

$

31,328

 

 

$

24,218

 
v3.25.0.1
Product Exit Costs (Tables)
 12 Months Ended
Dec. 29, 2024
Restructuring and Related Activities [Abstract]  
Summary of Activity Related to Exit of Breakfast Products

The following table summarizes the activity related to the exit of the Company’s convenient breakfast products during the periods presented:

 

 

 

 

For the Fiscal Year Ended December 25, 2022

 

Description

 

Statement of Income
Classification

 

Charges Incurred

 

 

Amounts Paid or Settled

 

 

Amounts Realized as Unutilized

 

 

Ending Liability Balance

 

Contract terminations

 

Selling, general and administrative

 

$

1,126

 

 

$

(1,126

)

 

$

—

 

 

$

—

 

Inventory obsolescence

 

Cost of goods sold

 

 

749

 

 

 

(749

)

 

 

—

 

 

 

—

 

Customer allowances

 

Net revenue

 

 

146

 

 

 

(111

)

 

 

(35

)

 

 

—

 

Asset write-downs

 

Cost of goods sold

 

 

119

 

 

 

—

 

 

 

—

 

 

 

119

 

Co-manufacturer chargers

 

Cost of goods sold

 

 

135

 

 

 

(135

)

 

 

—

 

 

 

—

 

Asset disposals

 

Selling, general and administrative

 

 

66

 

 

 

(66

)

 

 

—

 

 

 

—

 

Total

 

 

 

$

2,341

 

 

$

(2,187

)

 

$

(35

)

 

$

119

 
v3.25.0.1
Common Stock (Tables)
 12 Months Ended
Dec. 29, 2024
Equity [Abstract]  
Schedule of Reserved Shares of Common Stock for Issuance

As of each balance sheet date, the Company had reserved shares of common stock for issuance in connection with the following:

 

 

 

December 29,
2024

 

 

December 31,
2023

 

Options to purchase common stock

 

 

1,703,287

 

 

 

3,920,485

 

Restricted stock units (“RSUs”)

 

 

644,141

 

 

 

565,376

 

Performance stock units (“PSUs”)

 

 

238,764

 

 

 

—

 

Shares available for grant under the 2020 Equity Incentive
   Plan (“2020 Incentive Plan”) and 2020 Employee Stock Purchase Plan (“2020 ESPP”)

 

 

14,887,764

 

 

 

13,313,326

 

Total

 

 

17,473,956

 

 

 

17,799,187

 
v3.25.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 29, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of Recognized Stock - Based Compensation Expense

The Company recognized stock-based compensation expense and the related tax benefit as follows for the periods presented:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Cost of goods sold1

 

$

296

 

 

$

260

 

 

$

188

 

Selling, general and administrative expense2

 

 

9,972

 

 

 

7,157

 

 

 

5,852

 

Total

 

$

10,268

 

 

$

7,417

 

 

$

6,040

 

 

 

 

 

 

 

 

 

 

Tax benefit

 

$

5,160

 

 

$

2,998

 

 

$

970

 
1.
Includes $18, $7 and $6 of expense related to the 2020 ESPP as of December 29, 2024, December 31, 2023, and December 25, 2022, respectively.
2.
Includes $149, $97 and $57 of expense related to the 2020 ESPP as of December 29, 2024, December 31, 2023, and December 25, 2022, respectively.
Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity since December 31, 2023:

 

 

Number of
Options

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual
Term (Years)

 

 

Aggregate
Intrinsic
Value

 

Outstanding as of December 31, 2023

 

 

3,920,485

 

 

$

10.07

 

 

 

 

 

$

28,749

 

Granted

 

 

—

 

 

$

—

 

 

 

 

 

$

—

 

Exercised

 

 

(2,143,468

)

 

$

6.32

 

 

 

 

 

$

57,535

 

Cancelled/Forfeited

 

 

(73,730

)

 

$

21.30

 

 

 

 

 

$

657

 

Outstanding as of December 29, 2024

 

 

1,703,287

 

 

$

14.30

 

 

 

5.4

 

 

$

39,264

 

Options exercisable as of December 29, 2024

 

 

1,333,836

 

 

$

14.21

 

 

 

4.8

 

 

$

30,855

 

Options vested and expected to vest as of December 29, 2024

 

 

1,703,287

 

 

$

14.30

 

 

 

5.4

 

 

$

39,264

 
Summary of Assumptions, Fair Values and Intrinsic Values of Stock Options

The Company estimates the fair value of stock options on the date of grant using a Black-Scholes option-pricing valuation model, which uses the expected option term, stock price volatility, and the risk-free interest rate. The expected option term assumption reflects the period for which the Company believes the option will remain outstanding. The Company elected to use the simplified method to determine the expected option term, for all periods presented, which is the average of the option’s vesting and contractual term. The Company’s computation of expected volatility is based on the historical volatility of selected comparable publicly traded companies over a period equal to the expected term of the option. The risk-free interest rate reflects the U.S. Treasury yield curve for a similar instrument with the same expected term in effect at the time of the grant.

The following table summarizes the valuation model assumptions, fair values and intrinsic values of stock options during the fiscal years indicated:

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Expected term (in years)

 

 

—

 

 

6.0

 

 

6.0

 

Expected stock price volatility

 

 

—

 

 

27.8% - 29.2%

 

 

27.6% - 28.6%

 

Risk-free interest rate

 

 

—

 

 

3.63% - 4.45%

 

 

1.64% - 4.16%

 

Expected dividend yield

 

 

—

 

 

0%

 

 

0%

 

Weighted average fair value at grant date

 

$

—

 

 

$

5.33

 

 

$

3.97

 

Fair value of stock options vested

 

$

3,229

 

 

$

3,160

 

 

$

3,245

 

Intrinsic value of stock options exercised

 

$

57,535

 

 

$

9,091

 

 

$

1,827

 

Proceeds from stock options exercised

 

$

13,680

 

 

$

776

 

 

$

568

 
Summary of RSU Activity

The following table summarizes the RSU activity since December 31, 2023:

 

 

Number of
RSUs

 

 

Weighted-
Average
Grant Date Fair Value

 

Unvested as of December 31, 2023

 

 

565,376

 

 

$

14.24

 

Granted

 

 

421,141

 

 

$

22.63

 

Vested1

 

 

(255,570

)

 

$

14.40

 

Forfeited

 

 

(86,806

)

 

$

17.09

 

Unvested as of December 29, 2024

 

 

644,141

 

 

$

19.28

 
1.
Includes 68,219 shares of common stock that were withheld to cover taxes on the release of vested RSUs and became available for future grants pursuant to the 2020 Equity Incentive Plan.
Summary PSU Activity

The following table summarizes the PSU activity since December 31, 2023:

 

 

 

Number of
PSUs

 

 

Weighted-
Average
Grant Date Fair Value

 

Unvested as of December 31, 2023

 

 

—

 

 

$

—

 

Granted

 

 

255,579

 

 

$

21.77

 

Forfeited

 

 

(16,815

)

 

$

20.99

 

Unvested as of December 29, 2024

 

 

238,764

 

 

$

21.82

 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 29, 2024
Income Tax Disclosure [Abstract]  
Provision for Income Taxes

For the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, the provision for income taxes consisted of the following:

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

12,604

 

 

$

5,136

 

 

$

384

 

State

 

 

3,410

 

 

 

1,678

 

 

 

539

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(1,603

)

 

 

28

 

 

 

803

 

State

 

 

(261

)

 

 

(207

)

 

 

(125

)

Provision for income taxes

 

$

14,150

 

 

$

6,635

 

 

$

1,601

 
Reconciliation of Federal Statutory Income Tax Provision

The Company’s income before income taxes is entirely derived from domestic sources for all periods presented. The reconciliation of the federal statutory income tax provision to the Company’s effective income tax provision is as follows:

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Provision at statutory rate of 21%

 

$

14,183

 

 

$

6,762

 

 

$

594

 

State income taxes

 

 

2,552

 

 

 

1,117

 

 

 

51

 

Stock-based compensation

 

 

(2,661

)

 

 

(1,636

)

 

 

225

 

Non-deductible costs

 

 

321

 

 

 

574

 

 

 

279

 

Charitable deduction

 

 

(108

)

 

 

(95

)

 

 

634

 

Change in deferred tax asset valuation allowance

 

 

—

 

 

 

84

 

 

 

(774

)

Revisions to prior year

 

 

50

 

 

 

4

 

 

 

212

 

Changes in uncertain tax positions

 

 

(82

)

 

 

58

 

 

 

347

 

Tax credits

 

 

—

 

 

 

(238

)

 

 

—

 

Other, net

 

 

(105

)

 

 

5

 

 

 

33

 

Provision for income taxes

 

$

14,150

 

 

$

6,635

 

 

$

1,601

 

 
Schedule of Deferred Income Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company’s deferred income tax assets and liabilities at December 29, 2024 and December 31, 2023 were comprised of the following:

 

 

December 29,
2024

 

 

December 31,
2023

 

Deferred tax assets:

 

 

 

 

 

 

Accrued expenses

 

$

5,226

 

 

$

3,716

 

Allowances and other reserves

 

 

173

 

 

 

191

 

Inventory

 

 

765

 

 

 

1,498

 

Net operating loss carryforwards

 

 

106

 

 

 

110

 

Stock-based compensation

 

 

1,921

 

 

 

1,465

 

Lease liability

 

 

4,599

 

 

 

5,558

 

Other

 

 

471

 

 

 

467

 

Total deferred tax assets

 

 

13,261

 

 

 

13,005

 

Less: Valuation allowance

 

 

(84

)

 

 

(84

)

Net deferred tax assets

 

$

13,177

 

 

$

12,921

 

Deferred tax liabilities:

 

 

 

 

 

 

Prepaid expenses

 

$

776

 

 

$

490

 

Property, plant and equipment

 

 

6,216

 

 

 

6,778

 

Operating and finance lease right of use assets

 

 

4,204

 

 

 

5,517

 

Intangibles

 

 

582

 

 

 

507

 

Total deferred tax liabilities

 

$

11,778

 

 

$

13,292

 

Net deferred tax assets (liabilities)

 

$

1,399

 

 

$

(371

)
Schedule of Deferred Tax Asset Valuation Allowance

The activity in the Company’s deferred tax asset valuation allowance for the fiscal years ended December 29, 2024 and December 31, 2023 was as follows:

 

 

December 29,
2024

 

 

December 31,
2023

 

Valuation allowance as of beginning of year

 

$

84

 

 

$

—

 

Increases recorded to income tax provision

 

 

—

 

 

 

84

 

Valuation allowance as of end of year

 

$

84

 

 

$

84

 
Unrecognized Tax Benefits

The following table reflects changes in gross unrecognized tax benefits:

 

 

December 29,
2024

 

 

December 31,
2023

 

Gross tax contingencies as of beginning of year

 

$

654

 

 

$

511

 

Increase in gross tax contingencies

 

 

—

 

 

 

165

 

Decrease in gross tax contingencies

 

 

(239

)

 

 

(22

)

Gross tax contingencies as of end of year

 

$

415

 

 

$

654

 
v3.25.0.1
Net Income Per Share (Tables)
 12 Months Ended
Dec. 29, 2024
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Net Income Per Share

Basic and diluted net income per share attributable to the Company’s common stockholders were calculated as follows:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

53,388

 

 

$

25,566

 

 

$

1,230

 

Less: Net loss attributable to noncontrolling interests

 

 

—

 

 

 

—

 

 

 

(21

)

Net income attributable to Vital Farms, Inc. stockholders’ — basic and diluted

 

$

53,388

 

 

$

25,566

 

 

$

1,251

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

 

42,849,660

 

 

 

41,192,544

 

 

 

40,648,592

 

Weighted average effect of potentially dilutive securities:

 

 

 

 

 

 

 

 

 

Effect of potentially dilutive stock options

 

 

1,753,780

 

 

 

1,994,774

 

 

 

2,745,161

 

Effect of potentially dilutive RSUs

 

 

353,040

 

 

 

107,577

 

 

 

64,455

 

Effect of potentially dilutive PSUs

 

 

156,719

 

 

 

—

 

 

 

—

 

Effect of potentially dilutive common stock issuable pursuant to the ESPP

 

 

13,929

 

 

 

17,941

 

 

 

11,378

 

Weighted average common shares outstanding — diluted

 

 

45,127,128

 

 

 

43,312,836

 

 

 

43,469,586

 

Net income per share attributable to Vital Farms, Inc. stockholders

 

 

 

 

 

 

 

 

 

Basic

 

$

1.25

 

 

$

0.62

 

 

$

0.03

 

Diluted

 

$

1.18

 

 

$

0.59

 

 

$

0.03

 
Schedule of Commom Shares Excluded from Computation of Diluted Earnings Per Share

The Company excluded the following shares of common stock, outstanding at each period end, from the computation of diluted net income per share attributable to Vital Farms, Inc. common stockholders for the periods indicated because including them would have had an anti-dilutive effect:

 

 

Fiscal Year Ended

 

 

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Options to purchase common stock

 

 

422

 

 

 

15,429

 

 

 

27,954

 

Unvested RSUs

 

 

4,318

 

 

 

8,362

 

 

 

45,386

 

Unvested PSUs

 

 

2,209

 

 

 

—

 

 

 

—

 

 

 

6,949

 

 

 

23,791

 

 

 

73,340

 

 
v3.25.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Dec. 29, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income

The amounts reclassified from accumulated other comprehensive income (loss) (“AOCI”) to the statements of income were as follows:

 

 

 

 

Amounts Reclassified from AOCI

 

 

 

 

 

Fiscal Year Ended

 

AOCI Component

 

Statement of Income Classification

 

December 29,
2024

 

 

December 31,
2023

 

 

December 25,
2022

 

Losses on available-for-sale securities

 

Other income, net

 

$

1

 

 

$

182

 

 

$

96

 

 

Total before tax

 

 

1

 

 

 

182

 

 

 

96

 

 

Tax expense

 

 

—

 

 

 

(45

)

 

 

(22

)

 

Net of tax

 

$

1

 

 

$

137

 

 

$

74

 
Schedule of Component of Other Comprehensive Income

The gross amount and related tax expense recorded in, and associated with, each component of other comprehensive income (loss) were as follows:

 

 

Fiscal Year Ended

 

 

 

December 29, 2024

 

 

December 31, 2023

 

 

December 25,
2022

 

 

 

Before Tax

 

Tax

 

After Tax

 

 

Before Tax

 

Tax

 

After Tax

 

 

Before Tax

 

Tax

 

After Tax

 

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized net holding gain

 

$

456

 

$

(77

)

$

379

 

 

$

1,371

 

$

(338

)

$

1,033

 

 

$

(1,745

)

$

405

 

$

(1,340

)

Amounts reclassified for realized losses to earnings

 

 

1

 

 

—

 

$

1

 

 

 

182

 

 

(45

)

$

137

 

 

 

96

 

 

(22

)

$

74

 

Total other comprehensive income (loss)

 

$

457

 

$

(77

)

$

380

 

 

$

1,553

 

$

(383

)

$

1,170

 

 

$

(1,649

)

$

383

 

$

(1,266

)
v3.25.0.1
Segment Reporting (Tables)
 12 Months Ended
Dec. 29, 2024
Segment Reporting [Abstract]  
Summary of significant segment expenses and other segment items

The following table presents the significant segment expenses and other segment items regularly reviewed by the Company’s CODM:

 

 

Eggs and Butter Segment

 

 

Fiscal Year Ended

 

 

December 29, 2024

 

 

December 31, 2023

 

 

December 25, 2022

 

Net revenue

$

606,307

 

 

$

471,857

 

 

$

362,050

 

Less:

 

 

 

 

 

 

 

 

Cost of goods sold1

 

364,097

 

 

 

300,127

 

 

 

247,573

 

Shipping and distribution

 

32,435

 

 

 

27,344

 

 

 

30,104

 

Other selling expenses

 

8,304

 

 

 

7,229

 

 

 

6,363

 

Marketing

 

32,138

 

 

 

23,625

 

 

 

13,301

 

Other selling, general & administrative1

 

92,689

 

 

 

69,788

 

 

 

56,726

 

Interest income

 

(5,246

)

 

 

(2,542

)

 

 

(992

)

Interest expense

 

1,010

 

 

 

782

 

 

 

114

 

Depreciation and amortization

 

13,093

 

 

 

10,490

 

 

 

5,880

 

Income tax provision

 

14,150

 

 

 

6,635

 

 

 

1,601

 

Other segment expenses2

 

249

 

 

 

2,813

 

 

 

150

 

Segment net income

$

53,388

 

 

$

25,566

 

 

$

1,230

 

 

 

 

 

 

 

 

 

 

Reconciliation of profit or loss

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

—

 

 

 

—

 

 

 

—

 

Consolidated net income

$

53,388

 

 

$

25,566

 

 

$

1,230

 

 

1.
Excludes depreciation and amortization.
2.
Other segment expenses included in segment net income includes the change in fair value of derivative instruments and other miscellaneous gains and losses.
v3.25.0.1
Nature of the Business and Basis of Presentation - Additional Information (Details)
 12 Months Ended
Dec. 29, 2024
Organization Consolidation And Presentation Of Financial Statements [Line Items]  
Date of incorporation Jun. 06, 2013
v3.25.0.1
Summary of Significant Accounting Policies - Summary of Significant Customers Information (Details) - Customer Concentration Risk
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Sales Revenue Net | Customer A      
Summary Of Significant Accounting Policies [Line Items]      
Concentration risk percentage 24.00% 25.00% 26.00%
Sales Revenue Net | Customer B      
Summary Of Significant Accounting Policies [Line Items]      
Concentration risk percentage     11.00%
Accounts Receivable | Customer A      
Summary Of Significant Accounting Policies [Line Items]      
Concentration risk percentage 16.00% 18.00%  
Accounts Receivable | Customer B      
Summary Of Significant Accounting Policies [Line Items]      
Concentration risk percentage 10.00% 12.00%  
Accounts Receivable | Customer C      
Summary Of Significant Accounting Policies [Line Items]      
Concentration risk percentage 13.00% 11.00%  
Accounts Receivable | Customer D      
Summary Of Significant Accounting Policies [Line Items]      
Concentration risk percentage 10.00% 11.00%  
v3.25.0.1
Summary of Significant Accounting Policies - Additional Information (Details)
 12 Months Ended
Dec. 29, 2024
USD ($)
Segment
Dec. 31, 2023
USD ($)
Dec. 25, 2022
USD ($)
Summary Of Significant Accounting Policies [Line Items]      
Number of reportable segment | Segment 1    
Number of operating segment | Segment 1    
Impairment of long-lived assets $ 0 $ 0 $ 0
Accrued interest or penalties on uncertain tax position 157,000 171,000  
Shipping and distribution costs 32,435,000 27,344,000 30,104,000
Cost of goods sold 376,381,000 309,531,000 252,606,000
Marketing and advertising expense $ 32,138,000 23,625,000 13,301,000
Employee Stock Option      
Summary Of Significant Accounting Policies [Line Items]      
Stock options - vest year 3 years    
Stock options - date of grant and expire 10 years    
Restricted Stock [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Stock options - vest year 3 years    
Freight      
Summary Of Significant Accounting Policies [Line Items]      
Cost of goods sold $ 3,526,000 $ 4,823,000 $ 9,610,000
v3.25.0.1
Summary of Significant Accounting Policies - Schedule of Useful Lives of Property Plant and Equipment (Details)
 12 Months Ended
Dec. 29, 2024
Land improvements | Minimum  
Summary Of Significant Accounting Policies [Line Items]  
Property plant and equipment, estimated useful life 15 years
Land improvements | Maximum  
Summary Of Significant Accounting Policies [Line Items]  
Property plant and equipment, estimated useful life 20 years
Buildings and Improvements | Minimum  
Summary Of Significant Accounting Policies [Line Items]  
Property plant and equipment, estimated useful life 15 years
Buildings and Improvements | Maximum  
Summary Of Significant Accounting Policies [Line Items]  
Property plant and equipment, estimated useful life 39 years
Vehicles  
Summary Of Significant Accounting Policies [Line Items]  
Property plant and equipment, estimated useful life 5 years
Machinery and Equipment | Minimum  
Summary Of Significant Accounting Policies [Line Items]  
Property plant and equipment, estimated useful life 2 years
Machinery and Equipment | Maximum  
Summary Of Significant Accounting Policies [Line Items]  
Property plant and equipment, estimated useful life 7 years
Furniture and Fixtures  
Summary Of Significant Accounting Policies [Line Items]  
Property plant and equipment, estimated useful life 5 years
Leasehold Improvements  
Summary Of Significant Accounting Policies [Line Items]  
Property plant and equipment, estimated useful lives Lesser of lease term or 7 years
v3.25.0.1
Investment Securities - Summary of Available-for-sale Investment Securities (Details) - USD ($)
Dec. 29, 2024
Dec. 31, 2023
Schedule Of Available For Sale Securities [Line Items]    
Amortized Cost $ 9,702,000 $ 33,134,000
Unrealized Gains 15,000 10,000
Unrealized Losses (25,000) (477,000)
Allowance for Credit Losses 0 0
Fair Value 9,692,000 32,667,000
US Corporate Bonds and US Denominated Foreign Bonds    
Schedule Of Available For Sale Securities [Line Items]    
Amortized Cost 9,702,000 33,134,000
Unrealized Gains 15,000 10,000
Unrealized Losses (25,000) (477,000)
Allowance for Credit Losses 0 0
Fair Value $ 9,692,000 $ 32,667,000
v3.25.0.1
Investment Securities - Schedule of Proceeds, Gross Realized Gains and Losses from the Sale of Available-for-sale Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Investments, Debt and Equity Securities [Abstract]      
Proceeds $ 0 $ 2,895 $ 0
Gross realized gains 0 0 9
Gross realized losses (1) (183) (105)
Net realized losses $ (1) $ (183) $ (96)
v3.25.0.1
Investment Securities - Additional Information (Details)
Dec. 29, 2024
USD ($)
Position
Security
Dec. 31, 2023
USD ($)
Debt Securities, Available-for-Sale [Line Items]    
Aggregate unrealized losses $ 0 $ 0
Unrealized Losses $ 25,000 477,000
Unrealized Loss Position greater than 12 months | Position 13  
Maximum    
Debt Securities, Available-for-Sale [Line Items]    
Unrealized Losses $ 3,000  
AFS Securities    
Debt Securities, Available-for-Sale [Line Items]    
Number of Securities Issuances for unrealized losses | Security 13  
US Corporate Bonds and US Denominated Foreign Bonds    
Debt Securities, Available-for-Sale [Line Items]    
Aggregate unrealized losses $ 0 0
Unrealized Losses $ 25,000 $ 477,000
v3.25.0.1
Investment Securities - Summary of Contractual Maturities of Investment Securities (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]    
Due within one year Amortized Cost $ 8,696  
Due in 1-5 years Amortized Cost 1,006  
Amortized Cost 9,702 $ 33,134
Due within one year Fair Value 8,673  
Due in 1-5 years Fair Value 1,019  
Total available-for-sale Fair Value $ 9,692 $ 32,667
v3.25.0.1
Investment Securities - Schedule of Unrealized Loss Aging for Available-for-sale Securities (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]    
Fair value, less than 12 months $ 0 $ 699
Unrealized losses, less than 12 months 0 (3)
Fair value, 12 months or longer 8,014 29,247
Unrealized losses, 12 months or longer (25) (474)
Fair value, Total 8,014 29,946
Unrealized losses, Total (25) (477)
US Corporate Bonds and US Denominated Foreign Bonds    
Debt Securities, Available-for-Sale [Line Items]    
Fair value, less than 12 months 0 699
Unrealized losses, less than 12 months 0 (3)
Fair value, 12 months or longer 8,014 29,247
Unrealized losses, 12 months or longer (25) (474)
Fair value, Total 8,014 29,946
Unrealized losses, Total $ (25) $ (477)
v3.25.0.1
Derivative Financial Instruments - Schedule Of Notional Amounts of Outstanding Derivative Instruments (Details)
bu in Thousands
Dec. 29, 2024
T
bu
Dec. 31, 2023
bu
T
Corn    
Derivative [Line Items]    
Notional amounts of derivative financial instruments | bu 3,593 2,351
Soybean Meal    
Derivative [Line Items]    
Notional amounts of derivative financial instruments | T 37 25
v3.25.0.1
Derivative Financial Instruments - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Derivative Instruments, Gain (Loss) [Line Items]      
Pre-tax amount of derivative losses $ (272) $ (2,711) $ 0
Commodity Contract [Member] | Non designated [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Pre-tax amount of derivative losses $ 273 $ 2,435 $ 0
v3.25.0.1
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value (Details) - Recurring - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets measured at fair value $ 125,094 $ 97,559
Level 1    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets measured at fair value 114,249 64,498
Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets measured at fair value 10,845 33,061
Money market    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets measured at fair value 114,249 64,498
Money market | Level 1    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets measured at fair value 114,249 64,498
US Corporate Bonds and US Denominated Foreign Bonds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets measured at fair value 9,692 32,667
US Corporate Bonds and US Denominated Foreign Bonds | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets measured at fair value 9,692 32,667
Derivative financial instruments    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets measured at fair value 1,153 394
Derivative financial instruments | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Assets measured at fair value $ 1,153 $ 394
v3.25.0.1
Fair Value Measurements - Additional Information (Details)
Dec. 29, 2024
USD ($)
Fair Value Disclosures [Abstract]  
Fair value liabilities transfers, Level 2 to Level 1 $ 0
v3.25.0.1
Revenue Recognition - Summary of Net Revenue by Primary Product (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Disaggregation Of Revenue [Line Items]      
Net revenue $ 606,307 $ 471,857 $ 362,050
Eggs and Egg Related Products      
Disaggregation Of Revenue [Line Items]      
Net revenue 580,954 449,045 339,214
Butter and Butter Related Products      
Disaggregation Of Revenue [Line Items]      
Net revenue $ 25,353 $ 22,812 $ 22,836
v3.25.0.1
Allowance for Credit Losses - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Dec. 26, 2021
Allowance for Credit Loss [Abstract]        
Allowance for credit losses $ 931 $ 777 $ 699 $ 269
v3.25.0.1
Allowance for Credit Losses - Schedule of Changes in Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]      
Allowance for credit losses, Beginning balance $ (777) $ (699) $ (269)
Provisions charged to operating results (443) (512) (752)
Account write-offs 289 434 322
Allowance for credit losses,Ending balance (931) (777) (699)
Trade Receivable [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Allowance for credit losses, Beginning balance (550) (493) (269)
Provisions charged to operating results (290) (364) (546)
Account write-offs 149 307 322
Allowance for credit losses,Ending balance (691) (550) (493)
Prepaid Expenses and other Current Assets [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Allowance for credit losses, Beginning balance (227) (206) 0
Provisions charged to operating results (153) (148) (206)
Account write-offs 140 127 0
Allowance for credit losses,Ending balance $ (240) $ (227) $ (206)
v3.25.0.1
Inventories - Schedule of Inventory (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Inventory [Line Items]    
Reserve for inventory obsolescence $ (222) $ (496)
Inventories 23,666 32,895
Eggs and Egg Related Products    
Inventory [Line Items]    
Inventory gross 7,384 25,521
Butter and Butter Related Products    
Inventory [Line Items]    
Inventory gross 8,691 1,697
Packaging    
Inventory [Line Items]    
Inventory gross 4,296 4,988
Pullets    
Inventory [Line Items]    
Inventory gross 1,657 289
Other    
Inventory [Line Items]    
Inventory gross $ 1,860 $ 896
v3.25.0.1
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross $ 118,418 $ 87,890
Less: Accumulated depreciation and amortization (33,897) (21,051)
Property, plant and equipment, net 84,521 66,839
Land    
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross 11,200 552
Land improvements    
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross 818 818
Buildings and Improvements    
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross 30,607 30,532
Vehicles    
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross 1,468 1,055
Machinery and Equipment    
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross 58,847 50,979
Leasehold Improvements    
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross 491 492
Furniture and Fixtures    
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross 531 461
Construction in Progress    
Property Plant And Equipment [Line Items]    
Property, plant and equipment, gross $ 14,456 $ 3,001
v3.25.0.1
Property, Plant and Equipment - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Property Plant And Equipment [Line Items]      
Depreciation and amortization of property, plant and equipment $ 9,255 $ 7,925 $ 5,441
v3.25.0.1
Leases - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Lessee, Lease, Description [Line Items]      
Lessee, Operating Lease, Existence of Option to Extend [true false] true    
Lessee, Operating Lease, Existence of Option to Terminate [true false] true    
Option to extend The Company’s office lease for its corporate headquarters facility in Austin, Texas includes an option to renew, generally at the Company's sole discretion, with renewal terms that can extend the lease term up to five years.    
Option to terminate In addition, certain leases contain termination options, where the rights to terminate are held by the Company, the lessor, or both parties.    
Lease- amortization expense $ 3,838 $ 2,565 $ 439
Minimum      
Lessee, Lease, Description [Line Items]      
Term of Contract 1 year    
Maximum      
Lessee, Lease, Description [Line Items]      
Term of Contract 7 years    
v3.25.0.1
Leases - Schedule of Components of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Leases [Abstract]      
Operating lease cost $ 4,789 $ 1,714 $ 1,445
Finance lease cost - amortization of right-of-use assets 3,838 2,565 439
Finance lease cost - interest on lease liabilities 941 740 87
Short-term lease cost 158 771 67
Variable lease cost 11,293 7,533 2,967
Variable lease cost - long-term supply contracts 225,390 200,050 143,696
Total lease cost $ 246,409 $ 213,373 $ 148,701
v3.25.0.1
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Leases [Abstract]    
Machinery and equipment $ 18,074 $ 16,321
Less: Accumulated depreciation and amortization (6,675) (2,837)
Property, plant and equipment, net $ 11,399 $ 13,484
Weighted-average remaining lease term (years) 2 years 4 months 17 days 2 years 11 months 19 days
Weighted-average discount rate 7.55% 7.38%
Weighted-average remaining lease term (years) 2 years 9 months 29 days 3 years 9 months 29 days
Weighted-average discount rate 7.17% 7.12%
v3.25.0.1
Leases - Summary of Operating and Finance Leases Future Undiscounted Cash Flows (Details)
$ in Thousands
Dec. 29, 2024
USD ($)
Leases [Abstract]  
Operating leases 2025 $ 4,171
Operating leases 2026 3,018
Operating leases 2027 0
Total lease payments 7,189
Less imputed interest (422)
Total present value of lease liabilities 6,767
Finance leases 2025 4,633
Finance leases 2026 4,670
Finance leases 2027 3,850
Total lease payments 13,153
Less imputed interest (1,210)
Total present value of lease liabilities $ 11,943
v3.25.0.1
Leases - Summary of Cash Flow Information Related to Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Leases [Abstract]    
Operating cash outflows - payments on operating leases $ 17,554 $ 1,759
Operating cash outflows - interest payments on finance leases 941 740
Financing cash outflows - principal payments on finance leases $ 3,521 $ 2,246
v3.25.0.1
Leases - Summary of Right-of-Use Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Leases [Abstract]    
Operating leases $ 14,988 $ 8,583
Finance leases $ 1,728 $ 7,390
v3.25.0.1
Goodwill and Other Assets - Schedule of Goodwill and Other Assets (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 3,858 $ 3,858
Cloud computing implementation costs 3,834 0
Deferred tax asset 1,399 0
Other non-current assets 62 46
Goodwill and other assets $ 9,153 $ 3,904
v3.25.0.1
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Employee-related costs $ 15,074 $ 9,131
Trade promotions and chargebacks 8,204 6,982
Distribution fees and freight 3,193 2,876
Marketing and broker commissions 2,235 3,627
Purchases of inventory 641 525
Professional fees 958 1,066
Other 1,023 11
Accrued liabilities $ 31,328 $ 24,218
v3.25.0.1
Product Exit Costs - Summary of Activity Related to Exit of Breakfast Products (Details)
$ in Thousands
 12 Months Ended
Dec. 25, 2022
USD ($)
Restructuring Cost and Reserve [Line Items]  
Charges Incurred $ 2,341
Amounts Paid or Settled (2,187)
Amounts Realized as Unutilized (35)
Restructuring Reserve, Ending Balance 119
Contract Terminations  
Restructuring Cost and Reserve [Line Items]  
Charges Incurred 1,126
Inventory Obsolescence  
Restructuring Cost and Reserve [Line Items]  
Charges Incurred 749
Customer Allowances  
Restructuring Cost and Reserve [Line Items]  
Charges Incurred 146
Asset Write-downs  
Restructuring Cost and Reserve [Line Items]  
Charges Incurred 119
Co-manufacturer Charges  
Restructuring Cost and Reserve [Line Items]  
Charges Incurred 135
Asset Disposals  
Restructuring Cost and Reserve [Line Items]  
Charges Incurred $ 66
Selling, General and Administrative | Contract Terminations  
Restructuring Cost and Reserve [Line Items]  
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, General and Administrative Expense
Amounts Paid or Settled $ (1,126)
Amounts Realized as Unutilized 0
Restructuring Reserve, Ending Balance $ 0
Selling, General and Administrative | Asset Disposals  
Restructuring Cost and Reserve [Line Items]  
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, General and Administrative Expense
Amounts Paid or Settled $ (66)
Amounts Realized as Unutilized 0
Restructuring Reserve, Ending Balance $ 0
Cost of Goods Sold | Inventory Obsolescence  
Restructuring Cost and Reserve [Line Items]  
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of Goods and Services Sold
Amounts Paid or Settled $ (749)
Amounts Realized as Unutilized 0
Restructuring Reserve, Ending Balance $ 0
Cost of Goods Sold | Asset Write-downs  
Restructuring Cost and Reserve [Line Items]  
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of Goods and Services Sold
Amounts Paid or Settled $ 0
Amounts Realized as Unutilized 0
Restructuring Reserve, Ending Balance $ 119
Cost of Goods Sold | Co-manufacturer Charges  
Restructuring Cost and Reserve [Line Items]  
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of Goods and Services Sold
Amounts Paid or Settled $ (135)
Amounts Realized as Unutilized 0
Restructuring Reserve, Ending Balance $ 0
Net Revenue | Customer Allowances  
Restructuring Cost and Reserve [Line Items]  
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Revenue from Contract with Customer, Excluding Assessed Tax
Amounts Paid or Settled $ (111)
Amounts Realized as Unutilized (35)
Restructuring Reserve, Ending Balance $ 0
v3.25.0.1
Long-Term Debt - Additional Information (Details) - USD ($)
 12 Months Ended
Apr. 09, 2024
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Debt Instrument [Line Items]        
Amortization of debt issuance costs   $ 60,000 $ 0 $ 0
Revolving Line of Credit        
Debt Instrument [Line Items]        
Repayments of Long-Term Lines of Credit   0 7,500,000 0
Interest expense   $ 0 $ 7,000 $ 0
PNC Bank, National Association        
Debt Instrument [Line Items]        
Credit facility termination date   Apr. 09, 2024    
PNC Bank, National Association | Revolving Line of Credit | Sixth Amendment        
Debt Instrument [Line Items]        
Line of credit facility maximum borrowing capacity   $ 20,000,000    
PNC Bank, National Association | Revolving Line of Credit | Tenth Amendment | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]        
Debt Instrument [Line Items]        
Debt instrument basis spread on variable rate   2.00%    
PNC Bank, National Association | Revolving Line of Credit | Tenth Amendment | Alternate Base Rate        
Debt Instrument [Line Items]        
Debt instrument basis spread on variable rate   1.00%    
PNC Bank, National Association | Credit Facility        
Debt Instrument [Line Items]        
Line of credit facility covenant terms   The PNC Credit Facility was secured by all of the Company’s assets (other than real property and certain other property excluded pursuant to the terms of the PNC Credit Facility) and required the Company to maintain three financial covenants: a fixed charge coverage ratio, a leverage ratio and a minimum tangible net worth requirement. The PNC Credit Facility also contained various covenants relating to limitations on indebtedness, acquisitions, mergers, consolidations and the sale of properties and liens.    
JPMorgan Chase Bank, N.A | Revolving Line of Credit        
Debt Instrument [Line Items]        
Line of credit facility maximum borrowing capacity $ 60,000,000      
JPMorgan Credit Facility        
Debt Instrument [Line Items]        
Debt instrument face amount 35,000,000      
Letter of credit sub-limit $ 5,000,000      
Percentage of debt instrument face amount 100.00%      
Revolving credit facility interest rate description Any borrowings under the JPMorgan Credit Facility bear interest, at the Company’s election, at either (i) an adjusted term Secured Overnight Financing Rate or adjusted daily Secured Overnight Financing Rate plus 0.10% plus a margin of either 0.75%, 1.00% or 1.25% depending on the Company’s net leverage ratio or (ii) an alternative base rate plus a margin of either 1.75%, 2.00% or 2.25%, depending on the Company’s net leverage ratio. The Company is required to pay a commitment fee on the undrawn portion of the aggregate commitments that accrues at either 0.20% or 0.375% per annum depending on the Company’s revolving credit exposure.      
Leverage ratio 3.25%      
Increase in leverage ratio 4.00%      
Minimum fixed charge coverage ratio 1.35%      
JPMorgan Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]        
Debt Instrument [Line Items]        
Debt instrument basis spread on variable rate 0.10%      
v3.25.0.1
Preferred Stock - Additional Information (Details) - $ / shares
Dec. 29, 2024
Dec. 31, 2023
Class Of Stock [Line Items]    
Preferred stock, shares outstanding 0 0
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares issued 0 0
v3.25.0.1
Common Stock - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Class Of Stock [Line Items]    
Common stock, shares authorized 310,000,000 310,000,000
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares issued 44,042,355 41,684,649
Common stock, shares outstanding 44,042,355 41,684,649
Common stock voting rights Each share of the Company’s common stock is entitled to one vote on all matters submitted to a vote of the Company’s stockholders  
Common stock dividend declared or paid $ 0  
v3.25.0.1
Common Stock - Schedule of Reserved Shares of Common Stock for Issuance (Details) - shares
Dec. 29, 2024
Dec. 31, 2023
Class Of Stock [Line Items]    
Common stock for issuance 17,473,956 17,799,187
Employee Stock Option    
Class Of Stock [Line Items]    
Common stock for issuance 1,703,287 3,920,485
RSUs    
Class Of Stock [Line Items]    
Common stock for issuance 644,141 565,376
PSUs    
Class Of Stock [Line Items]    
Common stock for issuance 238,764  
Shares Available for Grant | 2020 Equity Incentive Plan ("2020 Incentive Plan") and 2020 Employee Stock Purchase Plan ("2020 ESPP")    
Class Of Stock [Line Items]    
Common stock for issuance 14,887,764 13,313,326
v3.25.0.1
Stock-Based Compensation - Additional Information (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Jan. 01, 2025
Jul. 31, 2020
Dec. 29, 2024
Dec. 31, 2023
Dec. 31, 2023
Dec. 25, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Common stock for issuance     17,473,956 17,799,187 17,799,187  
Fair value of shares vested     $ 0 $ 0   $ 0
RSUs            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Unrecognized stock-based compensation expense     $ 8,114      
Expected weighted-average period of recognition     1 year 11 months 1 day      
Common stock for issuance     644,141 565,376 565,376  
Fair value of shares vested     $ 3,681   $ 3,044 $ 1,549
Vested     255,570      
PSUs            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Unrecognized stock-based compensation expense     $ 7,564      
Expected weighted-average period of recognition     2 years 18 days      
Common stock for issuance     238,764      
Vested     0 0   0
PSUs | Maximum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Percentage of number of shares earned     200.00%      
PSUs | Minimum            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Percentage of number of shares earned     0.00%      
Employee Stock Option            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Unrecognized stock-based compensation expense     $ 1,034      
Expected weighted-average period of recognition     1 year 2 months 1 day      
Common stock for issuance     1,703,287 3,920,485 3,920,485  
2020 Equity Incentive Plan | Common Stock            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Maximum number of shares issuable   8,595,871        
Percentage of outstanding common stock   4.00%        
Share-based compensation award, description     Initially, the maximum number of shares of the Company’s common stock that may be issued under the 2020 Incentive Plan was 8,595,871 shares. The 2020 Incentive Plan provides that the number of shares reserved and available for issuance under the 2020 Incentive Plan will automatically increase each January 1, beginning on January 1, 2021 and ending on (and including) January 1, 2030, by an amount equal to 4% of the outstanding number of shares of common stock on the immediately preceding December 31 or such lesser number of shares as determined by the Board of Directors      
Number of shares available for future grants     12,437,167      
Number of new shares issued 1,761,694          
2020 Employee Stock Purchase Plan | Common Stock            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Maximum number of shares issuable   900,000        
Percentage of outstanding common stock   1.00%        
Share-based compensation award, description     The 2020 ESPP authorizes the initial issuance of up to 900,000 shares of the Company’s common stock to certain eligible employees or, as designated by the Board of Directors, employees of a related company. The 2020 ESPP provides that the number of shares reserved and available for issuance under the 2020 ESPP will automatically increase each January 1, beginning on January 1, 2021 and ending on (and including) January 1, 2030, by an amount equal to the lesser of (i) 1% of the outstanding number of shares of common stock on the immediately preceding December 31 and (ii) 900,000, or such lesser number of shares as determined by the Board of Directors.      
Number of new shares issued 440,423          
Common stock for issuance     2,450,597      
v3.25.0.1
Stock-Based Compensation -Summary of Recognized Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Stock-based compensation expense $ 10,268 $ 7,417 $ 6,040
Tax benefit 5,160 2,998 970
Cost of Goods Sold      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Stock-based compensation expense [1] 296 260 188
Selling, General and Administrative      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Stock-based compensation expense [2] $ 9,972 $ 7,157 $ 5,852
[1] Includes $18, $7 and $6 of expense related to the 2020 ESPP as of December 29, 2024, December 31, 2023, and December 25, 2022, respectively.
[2] Includes $149, $97 and $57 of expense related to the 2020 ESPP as of December 29, 2024, December 31, 2023, and December 25, 2022, respectively.
v3.25.0.1
Stock-Based Compensation -Summary of Recognized Stock-Based Compensation Expense (Parenthetical) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
ESPP expense $ 10,268 $ 7,417 $ 6,040
Cost of Goods Sold      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
ESPP expense [1] 296 260 188
Cost of Goods Sold | Employee Stock Purchase Plan      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
ESPP expense 18 7 6
Selling, General and Administrative      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
ESPP expense [2] 9,972 7,157 5,852
Selling, General and Administrative | Employee Stock Purchase Plan      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
ESPP expense $ 149 $ 97 $ 57
[1] Includes $18, $7 and $6 of expense related to the 2020 ESPP as of December 29, 2024, December 31, 2023, and December 25, 2022, respectively.
[2] Includes $149, $97 and $57 of expense related to the 2020 ESPP as of December 29, 2024, December 31, 2023, and December 25, 2022, respectively.
v3.25.0.1
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Share-Based Payment Arrangement [Abstract]      
Number of Options, Beginning balance 3,920,485    
Number of Options, Granted 0    
Number of Options, Exercised (2,143,468)    
Number of Options, Cancelled (73,730)    
Number of Options, Ending balance 1,703,287 3,920,485  
Number of Options, Options exercisable as of December 29, 2024 1,333,836    
Number of Options, Options vested and expected to vest as of December 29, 2024 1,703,287    
Weighted-Average Exercise Price, Beginning balance $ 10.07    
Weighted-Average Exercise Price, Options Granted 0    
Weighted-Average Exercise Price, Options Exercised 6.32    
Weighted-Average Exercise Price, Options Cancelled 21.3    
Weighted-Average Exercise Price, Ending balance 14.3 $ 10.07  
Weighted-Average Exercise Price, Options exercisable as of December 29, 2024 14.21    
Weighted-Average Exercise Price, Options vested and expected to vest as of December 29, 2024 $ 14.3    
Weighted Average Remaining Contractual Life (Years), Balance 5 years 4 months 24 days    
Weighted Average Remaining Contractual Life (Years), Options exercisable as of December 29, 2024 4 years 9 months 18 days    
Weighted Average Remaining Contractual Life (Years), Options vested and expected to vest as of December 29, 2024 5 years 4 months 24 days    
Aggregate Intrinsic Value, Beginning balance $ 28,749    
Aggregate Intrinsic Value, Exercised 57,535 $ 9,091 $ 1,827
Aggregate Intrinsic Value, Cancelled 657    
Aggregate Intrinsic Value, Ending balance 39,264 $ 28,749  
Aggregate Intrinsic Value, Options exercisable as of December 29, 2024 30,855    
Aggregate Intrinsic Value, Options vested and expected to vest as of December 29, 2024 $ 39,264    
v3.25.0.1
Stock-Based Compensation - Summary of Assumptions, Fair Values and Intrinsic Values of Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Weighted average fair value at grant date $ 0    
Fair value of shares vested $ 3,229 $ 3,160 $ 3,245
Intrinsic value of stock options exercised 57,535 9,091 1,827
Proceeds from stock options exercised $ 13,680 $ 776 $ 568
Employee Stock Option      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (in years)   6 years 6 years
Expected stock price volatility 0.00%    
Expected stock price volatility, minimum   27.80% 27.60%
Expected stock price volatility, maximum   29.20% 28.60%
Risk-free interest rate 0.00%    
Risk-free interest rate, minimum   3.63% 1.64%
Risk-free interest rate, maximum   4.45% 4.16%
Expected dividend yield 0.00% 0.00% 0.00%
Weighted average fair value at grant date $ 0 $ 5.33 $ 3.97
v3.25.0.1
Stock-Based Compensation - Summary of RSU Activity (Details) - RSUs
 12 Months Ended
Dec. 29, 2024
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unvested as of December 31, 2023 | shares 565,376
Granted | shares 421,141
Vested | shares (255,570)
Forfeited | shares (86,806)
Unvested as of December 29, 2024 | shares 644,141
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares $ 14.24
Weighted-Average Grant Date Fair Value, Granted | $ / shares 22.63
Weighted-Average Grant Date Fair Value, Vested | $ / shares 14.4
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares 17.09
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares $ 19.28
v3.25.0.1
Stock-Based Compensation - Summary of RSU Activity (Parenthetical) (Details)
 12 Months Ended
Dec. 29, 2024
shares
RSUs  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Shares withheld for tax liability on vested restricted stock units, Shares 68,219
v3.25.0.1
Stock-Based Compensation - Summary of PSU Activity (Details) - Unvested PSUs
 12 Months Ended
Dec. 29, 2024
$ / shares
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Unvested as of December 31, 2023 | shares 0
Granted | shares 255,579
Forfeited | shares (16,815)
Unvested as of December 29, 2024 | shares 238,764
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares $ 0
Weighted-Average Grant Date Fair Value, Granted | $ / shares 21.77
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares 20.99
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares $ 21.82
v3.25.0.1
Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Current:      
Federal $ 12,604 $ 5,136 $ 384
State 3,410 1,678 539
Deferred:      
Federal (1,603) 28 803
State (261) (207) (125)
Provision for income taxes $ 14,150 $ 6,635 $ 1,601
v3.25.0.1
Income Taxes - Reconciliation of Federal Statutory Income Tax Provision (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Income Tax Disclosure [Abstract]      
Provision at statutory rate of 21% $ 14,183 $ 6,762 $ 594
State income taxes 2,552 1,117 51
Stock-based compensation (2,661) (1,636) 225
Non-deductible costs 321 574 279
Charitable deduction (108) (95) 634
Change in deferred tax asset valuation allowance 0 84 (774)
Revisions to prior year 50 4 212
Changes in uncertain tax positions (82) 58 347
Tax credits 0 (238) 0
Other, net (105) 5 33
Provision for income taxes $ 14,150 $ 6,635 $ 1,601
v3.25.0.1
Income Taxes - Reconciliation of Federal Statutory Income Tax Provision (Parenthetical) (Details)
 12 Months Ended
Dec. 29, 2024
Income Tax Disclosure [Abstract]  
Provision at statutory rate 21.00%
v3.25.0.1
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Dec. 31, 2023
Deferred tax assets:    
Accrued expenses $ 5,226 $ 3,716
Allowances and other reserves 173 191
Inventory 765 1,498
Net operating loss carryforwards 106 110
Stock-based compensation 1,921 1,465
Lease liability 4,599 5,558
Other 471 467
Total deferred tax assets 13,261 13,005
Less: Valuation allowance (84) (84)
Net deferred tax assets 13,177 12,921
Deferred tax liabilities:    
Prepaid expenses 776 490
Property, plant and equipment 6,216 6,778
Operating and finance lease right of use assets 4,204 5,517
Intangibles 582 507
Total deferred tax liabilities 11,778 13,292
Net deferred tax assets $ 1,399 0
Net deferred tax liabilities   $ (371)
v3.25.0.1
Income Taxes - Schedule of Deferred Tax Asset Valuation Allowance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Valuation allowance as of beginning of year $ 84 $ 0
Increases recorded to income tax provision 0 84
Valuation allowance as of end of year $ 84 $ 84
v3.25.0.1
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Gross tax contingencies as of beginning of year $ 654 $ 511
Increase in gross tax contingencies 0 165
Decrease in gross tax contingencies (239) (22)
Gross tax contingencies as of end of year $ 415 $ 654
v3.25.0.1
Net Income Per Share - Schedule of Basic and Diluted Net Income Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Numerator:      
Net income $ 53,388 $ 25,566 $ 1,230
Less: Net loss attributable to noncontrolling interests 0 0 (21)
Net income attributable to Vital Farms, Inc. common stockholders $ 53,388 $ 25,566 $ 1,251
Denominator:      
Weighted average common shares outstanding - basic 42,849,660 41,192,544 40,648,592
Weighted average effect of potentially dilutive securities:      
Weighted average common shares outstanding — diluted 45,127,128 43,312,836 43,469,586
Net income per share attributable to Vital Farms, Inc. stockholders      
Basic $ 1.25 $ 0.62 $ 0.03
Diluted $ 1.18 $ 0.59 $ 0.03
Employee Stock Option      
Weighted average effect of potentially dilutive securities:      
Effect of potentially dilutive stock options 1,753,780 1,994,774 2,745,161
RSUs      
Weighted average effect of potentially dilutive securities:      
Effect of potentially dilutive stock options 353,040 107,577 64,455
Employee Stock Purchase Plan      
Weighted average effect of potentially dilutive securities:      
Effect of potentially dilutive stock options 13,929 17,941 11,378
PSUs      
Weighted average effect of potentially dilutive securities:      
Effect of potentially dilutive stock options 156,719    
v3.25.0.1
Net Income Per Share - Schedule of Excluded Common Shares Including at Anti-dilutive Effects (Details) - shares
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share, amount 6,949 23,791 73,340
Employee Stock Option      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share, amount 422 15,429 27,954
Unvested RSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share, amount 4,318 8,362 45,386
Unvested PSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share, amount 2,209    
v3.25.0.1
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Amounts reclassified from accumulated other comprehensive loss to earnings $ 1 $ 182 $ 96
Tax expense 0 (45) (22)
Net of tax 1 137 74
Losses on available-for-sale securities      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Amounts reclassified from accumulated other comprehensive loss to earnings $ 1 $ 182 $ 96
v3.25.0.1
Accumulated Other Comprehensive Income (Loss) - Schedule of Component of Other Comprehensive Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Unrealized net holding gain, Before Tax $ 456 $ 1,371 $ (1,745)
Unrealized net holding gain, Tax (77) (338) 405
Unrealized net holding gain, After Tax 379 1,033 (1,340)
Amounts reclassified from accumulated other comprehensive loss to earnings 1 182 96
Amounts reclassified for realized losses to earnings 0 (45) (22)
Net of tax 1 137 74
Other Comprehensive Income (Loss), Tax, Total (77) (383) 383
Other comprehensive income (loss), net of tax 380 1,170 (1,266)
Other comprehensive income (loss), before tax 457 1,553 (1,649)
Available-for-Sale Securities      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Amounts reclassified from accumulated other comprehensive loss to earnings $ 1 $ 182 $ 96
v3.25.0.1
Commitments and Contingencies - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
USD ($)
Commitments And Contingencies [Line Items]  
Long-term supply contracts costs $ 200,000
Contract cost paid 13,400
Contract cost payable $ 1,600
v3.25.0.1
Related Party Transactions - Additional Information (Details) - Sandpebble Builders Preconstruction, Inc - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Related Party Transaction [Line Items]      
Expense paid to related party $ 1,022 $ 631 $ 962
Amounts owed to related party $ 303 $ 0  
v3.25.0.1
401(k) Savings Plan - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
401(k) Saving Plan      
Defined Benefit Plan Disclosure [Line Items]      
Contributions made by the company $ 1,472 $ 1,185 $ 861
v3.25.0.1
Segment Reporting - Additional Information (Details)
 12 Months Ended
Dec. 29, 2024
Segment
Segment Reporting [Abstract]  
Number of reportable segment 1
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember, srt:PresidentMember
CODM measure, how used, description The CODM uses net income to evaluate income generated from net revenue in deciding whether to reinvest profits into the Eggs and Butter segment or for other valid corporate purposes. Net income is also used to monitor the Company’s forecasted budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to the Company’s competitors.
v3.25.0.1
Segment Reporting - Summary of significant segment expenses and other segment items (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 25, 2022
Segment Reporting Information [Line Items]      
Net revenue $ 606,307 $ 471,857 $ 362,050
Less:      
Cost of goods sold 376,381 309,531 252,606
Shipping and distribution 32,435 27,344 30,104
Marketing 32,138 23,625 13,301
Interest income (5,246) (2,542) (992)
Depreciation and amortization 13,093 7,925 5,441
Income tax provision 14,150 6,635 1,601
Net income 53,388 25,566 1,230
Operating Segments | Eggs and Butter Segment      
Segment Reporting Information [Line Items]      
Net revenue 606,307 471,857 362,050
Less:      
Cost of goods sold [1] 364,097 300,127 247,573
Shipping and distribution 32,435 27,344 30,104
Other selling expenses 8,304 7,229 6,363
Marketing 32,138 23,625 13,301
Other selling, general & administrative [1] 92,689 69,788 56,726
Interest income (5,246) (2,542) (992)
Interest expense 1,010 782 114
Depreciation and amortization 13,093 10,490 5,880
Income tax provision 14,150 6,635 1,601
Other segment expenses [2] 249 2,813 150
Net income 53,388 25,566 1,230
Reconciliation of Profit or Loss      
Less:      
Adjustments and reconciling items 0 0 0
Net income $ 53,388 $ 25,566 $ 1,230
[1] Excludes depreciation and amortization.
[2] Other segment expenses included in segment net income includes the change in fair value of derivative instruments and other miscellaneous gains and losses.