0001564590-22-009480 | 10-K | XBRL Viewer

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 26, 2021	Dec. 27, 2020
Current assets:
Cash and cash equivalents	$ 30,966	$ 29,544
Investment securities available-for-sale	68,621	68,357
Accounts receivable, net	26,938	20,934
Inventories	10,945	12,902
Income taxes receivable	199	1,554
Prepaid expenses and other current assets	3,539	3,965
Total current assets	141,208	137,256
Property, plant and equipment, net	44,608	30,118
Goodwill	3,858	3,858
Deferred tax asset, net	79
Deposits and other assets	189	142
Total assets	189,942	171,374
Current liabilities:
Accounts payable	22,520	15,489
Accrued liabilities	15,124	9,845
Lease obligation, current	327	471
Contingent consideration, current	19	109
Total current liabilities	37,990	25,914
Lease obligation, net of current portion		327
Contingent consideration, non-current		18
Deferred tax liabilities, net		2,537
Other liability, non-current	192	192
Total liabilities	38,182	28,988
Commitments and contingencies (Note 16)
Stockholders’ equity:
Common stock, $0.0001 par value per share, 310,000,000 shares authorized as of December 26, 2021 and December 27, 2020; 40,493,969 and 39,444,040 shares issued as of December 26, 2021 and December 27, 2020, respectively; 40,493,969 and 39,440,040 shares outstanding as of December 26, 2021 and December 27, 2020, respectively	5	5
Treasury stock, at cost, zero and 5,494,918 common shares as of December 26, 2021 and December 27, 2020, respectively		(16,276)
Additional paid-in capital	149,000	144,311
Retained earnings	2,746	14,039
Accumulated other comprehensive loss	(281)	(31)
Total stockholders’ equity attributable to Vital Farms, Inc. stockholders	151,470	142,048
Noncontrolling interests	115	163
Total stockholders’ equity	151,585	142,211
Total liabilities, redeemable noncontrolling interest, redeemable convertible preferred stock and stockholders’ equity	189,942	171,374
Variable Interest Entity, Primary Beneficiary
Current liabilities:
Redeemable noncontrolling interest	$ 175	$ 175

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 26, 2021	Dec. 27, 2020
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	310,000,000	310,000,000
Common stock, shares issued	40,493,969	39,444,040
Common stock, shares outstanding	40,493,969	39,440,040
Treasury stock, common shares	0	5,494,918

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Income Statement [Abstract]
Net revenue	$ 260,901	$ 214,280	$ 140,733
Cost of goods sold	178,002	139,752	97,856
Gross profit	82,899	74,528	42,877
Operating expenses:
Selling, general and administrative	57,868	47,396	29,526
Shipping and distribution	24,979	14,904	10,001
Total operating expenses	82,847	62,300	39,527
Income from operations	52	12,228	3,350
Interest expense	(52)	(488)	(349)
Other income (expense), net	354	(86)	1,417
Total other income (expense), net	302	(574)	1,068
Net income before income taxes	354	11,654	4,418
(Benefit) provision for income taxes	(2,028)	2,770	1,106
Net income	2,382	8,884	3,312
Less: Net (loss) income attributable to noncontrolling interests	(47)	84	927
Net income attributable to Vital Farms, Inc. common stockholders	$ 2,429	$ 8,800	$ 2,385
Net income per share attributable to Vital Farms, Inc. stockholders:
Basic:	$ 0.06	$ 0.31	$ 0.09
Diluted:	$ 0.06	$ 0.27	$ 0.07
Weighted average common shares outstanding:
Basic:	40,027,278	28,667,264	25,897,223
Diluted:	43,321,733	32,914,653	36,071,015

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 2,382	$ 8,884	$ 3,312
Other comprehensive loss
Unrealized holding loss on available-for-sale securities, net of deferred tax benefit of $80 and $10 for the years ended December 26, 2021 and December 27, 2020, respectively	(250)	(31)
Total comprehensive income	$ 2,132	$ 8,853	$ 3,312

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020
Statement Of Income And Comprehensive Income [Abstract]
Unrealized holding loss on available-for-sale securities, tax	$ 80	$ 10

CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK , REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Variable Interest Entity, Primary Beneficiary	Initial Public Offering	Redeemable Convertible Preferred Stock	Redeemable Noncontrolling Interest Variable Interest Entity, Primary Beneficiary	Common Stock	Common Stock Initial Public Offering	Treasury Stock	Additional Paid-In Capital	Additional Paid-In Capital Initial Public Offering	Retained Earnings (Deficit)	Accumulated Other Comprehensive Loss	Total Stockholders' Equity Attributable to Vital Farms, Inc. Stockholders	Total Stockholders' Equity Attributable to Vital Farms, Inc. Stockholders Initial Public Offering	Noncontrolling Interests
Beginning balance at Dec. 30, 2018	$ 4,267					$ 3		$ (1,987)	$ 4,245		$ 2,854		$ 5,115		$ (848)
Beginning balance, shares at Dec. 30, 2018				8,192,876
Beginning balance at Dec. 30, 2018				$ 23,036
Beginning balance at Dec. 30, 2018					$ 175
Beginning balance, shares at Dec. 30, 2018						28,461,978		(2,642,148)
Issuance of common stock, net of issuance costs	14,097								14,097				14,097
Issuance of common stock, net of issuance costs, Shares						2,815,012
Repurchase of common stock	(14,289)							$ (14,289)					(14,289)
Repurchase of common stock, Shares								(2,852,770)
Exercise of stock options	222								222				222
Exercise of stock options, Shares						152,908
Stock-based compensation expense	1,029								1,029				1,029
Net income attributable to non- controlling interests - stockholders	927														927
Net income attributable to Vital Farms, Inc.	2,385										2,385		2,385
Ending balance at Dec. 29, 2019	8,638					$ 3		$ (16,276)	19,593		5,239		8,559		79
Ending balance, shares at Dec. 29, 2019				8,192,876
Ending balance at Dec. 29, 2019				$ 23,036
Ending balance at Dec. 29, 2019					175
Ending balance, shares at Dec. 29, 2019						31,429,898		(5,494,918)
Issuance of common stock, net of issuance costs			$ 98,671				$ 1			$ 98,670				$ 98,671
Issuance of common stock, net of issuance costs, Shares							5,040,323
Issuance of common stock upon conversion of preferred stock	23,036					$ 1			23,035				23,036
Issuance of common stock upon conversion of preferred stock, Shares				(8,192,876)
Issuance of common stock upon conversion of preferred stock				$ (23,036)
Issuance of common stock upon conversion of preferred stock, Shares						8,192,876
Exercise of warrant	283								283				283
Exercise of warrant, Shares						196,800
Vesting of restricted stock, Shares						3,097
Other comprehensive loss, net	(31)											$ (31)	(31)
Exercise of stock options	$ 221								221				221
Exercise of stock options, Shares	66,062					75,964
Stock-based compensation expense	$ 2,509								2,509				2,509
Net income attributable to non- controlling interests - stockholders	83														83
Net income attributable to Vital Farms, Inc.	8,800										8,800		8,800
Ending balance at Dec. 27, 2020	142,210					$ 5		$ (16,276)	144,311		14,039	(31)	142,048		162
Ending balance at Dec. 27, 2020		$ 175			175
Ending balance, shares at Dec. 27, 2020						44,938,958		(5,494,918)
Vesting of restricted stock	0												0
Vesting of restricted stock, Shares						15,000
Retirement of treasury stock								$ 16,276	(2,554)		(13,722)
Retirement of treasury stock, Shares						(5,494,918)		5,494,918
Other comprehensive loss, net	(250)											(250)	(250)
Exercise of stock options	$ 2,803								2,803				2,803
Exercise of stock options, Shares	1,034,929					1,034,929
Stock-based compensation expense	$ 4,440								4,440				4,440
Net income attributable to non- controlling interests - stockholders	(47)												0		(47)
Net income attributable to Vital Farms, Inc.	2,429										2,429		2,429
Ending balance at Dec. 26, 2021	$ 151,585					$ 5			$ 149,000		$ 2,746	$ (281)	$ 151,470		$ 115
Ending balance at Dec. 26, 2021		$ 175			$ 175
Ending balance, shares at Dec. 26, 2021						40,493,969

CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK , REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 27, 2020	Dec. 29, 2019
Issuance of common stock, issuance costs		$ 903
Initial Public Offering
Issuance of common stock, issuance costs	$ 12,215

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Cash flows provided by operating activities:
Net income	$ 2,382	$ 8,884	$ 3,312
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,540	2,550	1,921
Amortization of debt issuance costs	0	68	9
Bad debt expense (recovery)	73	(108)	304
Inventory provisions	224	16	189
Change in fair value of contingent consideration	44	(333)	70
Stock-based compensation expense	4,440	2,509	1,029
Loss on write-off of construction in progress	173	259
Deferred taxes	(2,536)	1,782	52
Non-cash interest income	(229)	(33)
Changes in operating assets and liabilities:
Accounts receivable	(6,078)	(4,718)	(6,182)
Inventories	1,733	29	(9,270)
Income taxes receivable	1,354	61	(1,563)
Prepaid expenses and other current assets	426	(2,255)	(582)
Deposits and other assets	(46)	11	93
Accounts payable	6,796	1,807	3,192
Accrued liabilities and other liabilities	4,029	1,173	2,074
Net cash provided by (used in) operating activities	16,325	11,702	(5,352)
Cash flows used in investing activities:
Purchases of property, plant and equipment	(16,711)	(10,300)	(4,799)
Purchases of available-for-sale debt securities	(52,017)	(68,388)
Sales, maturities, and call redemptions of available-for-sale debt securities	51,645
Proceeds from the sale of property, plant and equipment			7
Notes receivable provided to related parties			(4,031)
Repayment of notes receivable provided to related parties		846	3,200
Net cash used in investing activities	(17,083)	(77,842)	(5,623)
Cash flows provided by (used in) financing activities:
Proceeds from issuance of common stock pursuant to the initial public offering, net of issuance costs		99,671
Proceeds from borrowings under term loan		5,000
Proceeds from borrowings under equipment loan		1,461	587
Proceeds from Paycheck Protection Program loan		2,593
Proceeds from issuance of redeemable noncontrolling interest			14,097
Proceeds from borrowing under revolving line of credit			1,325
Repayment of revolving line of credit		(1,325)
Repayment of equipment loan		(2,015)
Repayment of term loan		(8,245)	(671)
Repayment of Paycheck Protection Program loan		(2,593)
Repurchase of common stock			(14,289)
Payment of contingent consideration	(152)	(192)	(409)
Principal payments under finance lease obligation	(471)	(449)	(428)
Proceeds from exercise of stock options	2,803	221	222
Proceeds from exercise of warrant		283
Net cash provided by (used in) financing activities	2,180	94,410	434
Net increase in cash and cash equivalents	1,422	28,270	(10,541)
Cash and cash equivalents at beginning of the period	29,544	1,274	11,815
Cash and cash equivalents at end of the period	30,966	29,544	1,274
Supplemental disclosure of cash flow information:
Cash paid for interest	43	414	340
Cash paid for income taxes	102	2,214	2,256
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property, plant and equipment included in accounts payable and accrued liabilities	$ 1,493	$ 167	928
Deferred offering costs in accounts payable and accrued liabilities			$ 1,001

Nature of the Business and Basis of Presentation

12 Months Ended

Dec. 26, 2021

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

Vital Farms of Missouri, LLC, Backyard Eggs, LLC, Barn Door Farms, LLC, Sagebrush Foodservice, LLC and Vital Farms, LLC re all wholly owned subsidiaries of Vital Farms. All significant intercompany transactions and balances have been eliminated in the audited consolidated financial statements.

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 years will not be exactly comparable to the prior and subsequent 52-week years. The years ended December 26, 2021, December 27, 2020, and December 29, 2019 all contain operating results for 52 weeks.

Impact of COVID-19 Pandemic: Due to the ongoing COVID-19 pandemic, the Company has implemented business continuity plans designed to address and mitigate the impact of the COVID-19 pandemic on the Company’s business. The Company does not currently anticipate that the COVID-19 pandemic will have a material impact on the timelines for the Company’s product development and expansion efforts. However, the extent to which the COVID-19 pandemic impacts the Company’s business, product development and expansion efforts, corporate development objectives and the value of and market for the Company’s common stock will depend on future developments that are highly uncertain and cannot be predicted with confidence at this time, such as the ultimate duration of the pandemic, travel restrictions, quarantines, social distancing and business closure requirements in the United States, and the effectiveness of actions taken globally to contain and treat the disease, including the roll-out of vaccines. The global economic slowdown, the overall disruption of global supply chains and distribution systems and the other risks and uncertainties associated with the pandemic could have a material adverse effect on the Company’s business, financial condition, results of operations and growth prospects.

Forward Stock Split: In July 2020, the board of directors and the stockholders of the Company approved a 2.46-for-1 forward stock split of the Company’s outstanding common stock and preferred stock, which was effected on July 22, 2020. Stockholders entitled to fractional shares as a result of the forward stock split received a cash payment in lieu of receiving fractional shares. All common stock, preferred stock, and per share information has been retroactively adjusted to give effect to this forward stock split for all periods presented. Shares of common stock underlying outstanding stock options and other equity instruments were proportionately increased and the respective per share value and exercise prices, if applicable, were proportionately decreased in accordance with the terms of the agreements governing such securities. There were no changes in the par values of the Company’s common stock and preferred stock as a result of the forward stock split.

Initial Public Offering: In August 2020, the Company completed its initial public offering (“IPO”) of 10,699,573 shares of common stock at an offering price of $22.00 per share. The Company offered 5,040,323 shares of common stock and the selling stockholders offered an additional 5,659,250 shares of common stock, including the underwriter’s option to purchase up to an additional 1,395,596 shares of common stock from the selling stockholders. The Company received gross proceeds of approximately $110,887 before deducting underwriting discounts, commissions and offering related transaction costs; the Company did not receive any proceeds from the sale of shares by the selling stockholders. Upon the closing of the IPO in August 2020, all of the then-outstanding shares of preferred stock automatically converted into 8,192,876 shares of common stock on a one-for-one basis. Subsequent to the closing of the IPO, there were no shares of preferred stock outstanding. The consolidated financial statements as of December 26, 2021, including share and per share amounts, include the effects of the IPO.

Secondary Public Offering: In November 2020, the Company completed a secondary public offering of 5,000,000 shares of common stock from selling stockholders in which no proceeds from the sale of shares were received by the Company and the Company incurred $0.5 million of expenses.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 26, 2021

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 and equipment, trade spend accruals, goodwill, allowance for doubtful accounts, inventory obsolescence, valuation of common stock prior to IPO, stock option valuations, accrual liabilities and income taxes. Actual results could differ from those estimates.

As of the date of issuance of these consolidated financial statements, the Company is not aware of any specific event or circumstance related to the ongoing COVID-19 pandemic that would require the Company to update its estimates, assumptions and judgments or revise the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information is obtained and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s consolidated financial statements.

Deferred Offering Costs: The Company capitalized certain legal, accounting and other third-party fees that are directly related to the Company’s in-process equity financings until such financings were completed. Upon closing the IPO in August 2020, all deferred offering costs were reclassified from prepaid and other current assets and recorded against the IPO proceeds reducing additional paid-in capital.

Concentrations of Credit Risk and Significant Customers: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, investments and accounts receivable. 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.

As of December 26, 2021 and December 27, 2020, the Company had customers that individually represented 10% or more of the Company’s accounts receivable, net. During fiscal years 2021, 2020, and 2019 the Company also had customers that individually exceeded 10% or more of the Company’s net revenue. Significant customer information is presented below as follows:

	Net Revenue Year Ended December 26, 2021	Net Revenue Year Ended December 27, 2020	Net Revenue Year Ended December 29, 2019	Accounts Receivable, Net As Of December 26, 2021	Accounts Receivable, Net As Of December 27, 2020
Customer A	18%	15%	35%	19%	*
Customer B	14%	18%	*	*	20%
Customer C	10%	12%	11%	*	*
Customer D	12%	13%	14%	13%	15%

*Revenue and/or accounts receivable was less than 10%.

The increase in net revenue for Customer A for fiscal 2021 is due a net shift in the Company’s distribution channels from Customer B to Customer A during the year ended December 26, 2021. Net revenue for Customers C and D increased from 2020 to 2021; however, growth from other existing customers and new customers resulted in net revenue from Customers C and D comprising a lower percentage of total net revenue.

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 26, 2021, 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 Topic 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. We have classified 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 reported as a separate component of stockholders' equity.

The amortized cost of debt securities is adjusted for 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. Realized gains and losses on the sale of debt securities and declines in value due to credit-related factors are recorded in other income. 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. The Company has considered its relationships with a certain entity to determine whether the Company has a variable interest in that entity, and if so, whether the Company is 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 and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities approximate their fair values due to the short-term nature of these assets and liabilities.

Accounts Receivable: Accounts receivable are stated at invoice value less estimated allowances for doubtful accounts. The Company establishes an allowance for doubtful accounts as losses are estimated to have occurred through a provision for bad debts charged to earnings. Losses are charged against the allowance when management believes the receivable is no longer collectible. These losses have been immaterial to date. Subsequent recoveries, if any, are credited to the allowance. The allowance for doubtful accounts is evaluated on a regular basis by management and is based on the 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. As of December 26, 2021 and December 27, 2020, the Company recorded an allowance for doubtful accounts of $269 and $196 in the accompanying consolidated balance sheets.

Inventories: Inventories are stated at the lower of cost (determined under the first-in, first-out method) or net realizable value. Inventory includes eggs and egg related products, butter and butter related products, packaging, feed, laying hens, pullets, merchandise 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.

Property, Plant and Equipment, Net: 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
Building and improvements		39 years
Vehicles		5 years
Machinery and equipment		2 to 7 years
Furniture and fixtures		5 years
Leasehold improvements		Lesser of lease term or 5 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 other income (expense), net in the consolidated statements of operations. Costs of repairs and maintenance are expensed as incurred.

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, a quantitative goodwill assessment is 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 operations. To date, the Company has not recorded any impairment charges associated with its goodwill.

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 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 years ended December 26, 2021, December 27, 2020, and December 29, 2019.

Contingent Consideration: In connection with the Company’s acquisition of certain assets of Heartland Eggs, LLC in 2014, the Company was required to make royalty payments to prior owners of certain assets of Heartland Eggs. The royalty payments are contingent on the Company’s future purchase of eggs from supplier contracts that were acquired in the certain assets of Heartland Eggs acquisition. The royalty payments are deemed to be contingent because the future egg purchases are not guaranteed, and the timing and amount of any such purchases are unknown. The fair value of the contingent consideration was determined at the acquisition date using unobservable inputs (Level 3 inputs). These inputs included projected financial information, market volatility, risk-adjusted discount rates and timing of contractual payments. Subsequent to the acquisition date, at each reporting date, the contingent consideration liability is remeasured to fair value with changes in fair value recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations.

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 operations. 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 follows the provisions of the authoritative guidance from the Financial Accounting Standards Board (“FASB”) on accounting for uncertainty in income taxes. These provisions provide a comprehensive model for the recognition, measurement and disclosure in financial statements of uncertain income tax positions that a company has taken or expects to take on a tax return. Under these provisions, a company can recognize 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 26, 2021 and December 27, 2020 the Company had no accrued interest or penalties related to uncertain tax positions.

Net Income (Loss) per Share Attributable to Vital Farms, Inc. Common Stockholders: The Company applies the two-class method to compute basic and diluted net (loss) 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 and foodservice partners. 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. We offer sales incentives through various programs to customers and allow deductions from our 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 promotions and chargebacks 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 judgement 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.

Treasury Stock: The Company records treasury stock activities under the cost method whereby the cost of the acquired stock is recorded as treasury stock. The Company’s accounting policy upon the formal retirement of treasury stock is to deduct the par value from the Company’s common stock and to reflect any excess of cost over par value as a reduction to additional paid-in capital (to the extent created by previous issuances of the shares).

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 $24,979, $14,904, and $10,001 during the years ended December 26,2021, December 27, 2020 and December 29, 2019, respectively. Freight-in costs are included within Cost of Goods Sold and were $7,623, $5,126, and $3,012 during the years ended December 26, 2021, December 27, 2020 and December 29, 2019, respectively.

Stock-Based Compensation: The Company measures all stock-based awards granted to employees and directors based on the 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. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing 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 operations 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 up-front 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 years ended December 26, 2021, December 27, 2020, and December 29, 2019, the Company incurred advertising and promotion expenses of approximately $11,469, $9,815, and $10,320, respectively.

Emerging Growth Company Status: The Company is an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised financial accounting standards until such time as those standards apply to private companies. The Company elected to use the extended transition period for complying with the adoption of new or revised accounting standards, and, as a result of this election, the Company’s financial statements may not be comparable to companies that comply with public company effective dates.

Recently Adopted Accounting Pronouncements: In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. The Company adopted ASU 2020-04 on March 12, 2020 and the adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”) and also issued subsequent amendments to the initial guidance, ASU 2017-13, ASU 2018-01, ASU 2018-10, ASU 2018-11, ASU 2018-20, ASU 2019-01, ASU 2019-10, ASU 2020-02, and ASU 2020-05 (collectively, “Topic 842”). The guidance in Topic 842 supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statement of operations. An entity may adopt the guidance either (1) retrospectively to each prior reporting period presented in the financial statements with a cumulative-effect adjustment recognized at the beginning of the earliest comparative period presented or (2) retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company expects to adopt Topic 842 retrospectively at the beginning of the period of adoption, December 27, 2021, through a cumulative-effect adjustment, and will not apply the new standard to comparative periods presented. The new standard provides a number of practical expedients. Upon adoption, the Company expects to elect all of the practical expedients available. The Company is currently evaluating the impact of its pending adoption of Topic 842 on its consolidated financial statements. It is anticipated that the primary impact of the adoption of Topic 842 will be the recording of a right-of-use asset and related lease liability of approximately $4.0 million on the Company’s consolidated balance sheet.

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, and ASU 2020-03 (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. For non-public companies, Topic 326 is effective for years beginning after December 15, 2022, including interim periods within those years. The Company expects to adopt Topic 326 on December 26, 2022. The Company is currently evaluating the impact of its pending adoption of Topic 326 on its consolidated financial statements.

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 years beginning after December 15, 2021, and interim periods within years beginning after December 15, 2022. The Company expects to adopt ASU 2019-12 on December 26, 2022. Although the Company is currently evaluating the impact of the adoption of ASU 2019-12, the Company does not expect it to have a material impact on its consolidated financial statements.

Fair Value

12 Months Ended

Dec. 26, 2021

Fair Value Disclosures [Abstract]

Fair Value

3. Fair Value

The following table presents information about the Company’s financial assets measured at fair value on a recurring basis:

	Fair Value Measurements as of December 26, 2021, Using:
	Level 1		Level 2		Level 3		Total
Assets:
US Corporate Bonds and US Denominated Foreign Bonds	$	—	$	64,452	$	—	$	64,452
Commercial Paper		—		2,999		—		2,999
Money Market		20,101		—		—		20,101
US Treasury		—		1,170		—		1,170
Total assets measured at fair value	$	20,101	$	68,621	$	—	$	88,722

	Fair Value Measurements as of December 27, 2020, Using:
	Level 1		Level 2		Level 3		Total
Assets:
US Corporate Bonds and US Denominated Foreign Bonds	$	—	$	58,630	$	—	$	58,630
Commercial Paper		—		6,697		—		6,697
Money Market		25,469		—		—		25,469
US Treasury		—		3,030		—		3,030
Total assets measured at fair value	$	25,469	$	68,357	$	—	$	93,826

The following tables presents information about the Company’s financial liabilities measured at fair value on a recurring basis:

	Fair Value Measurements as of December 26, 2021, Using:
Liabilities:	Level 1		Level 2		Level 3		Total
Contingent consideration, current	$	—	$	—	$	19	$	19
Contingent consideration, non-current		—		—		-		-
Total liabilities measured at fair value	$	—	$	—	$	19	$	19

	Fair Value Measurements as of December 27, 2020, Using:
	Level 1		Level 2		Level 3		Total
Liabilities:
Contingent consideration, current	$	—	$	—	$	109	$	109
Contingent consideration, non-current		—		—		18		18
Total liabilities measured at fair value	$	—	$	—	$	127	$	127

During the years ended December 26, 2021 and December 27, 2020, there were no transfers between fair value measurement levels.

During the years ended December 26, 2021 and December 27, 2020, the Company recognized unrealized losses and (gains) associated with the fair value of contingent consideration of $44 and $(333), respectively.

The following table presents the unobservable inputs incorporated into the valuation of contingent consideration:

Unobservable Input	December 26, 2021		December 27, 2020
Estimated dozens of eggs to be supplied		275,250		1,885,660
Royalty rate per dozen eggs	$	0.07	$	0.07
Estimated future royalty expense	$	19	$	132
Discount interval (in years)		0.5		1.4

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Investment Securities

12 Months Ended

Dec. 26, 2021

Investments Debt And Equity Securities [Abstract]

Investment Securities

4. Investment Securities

The following table summarizes the Company’s investment securities as of December 26, 2021:

	Amortized Cost		Unrealized Losses			Fair Value
US Corporate Bonds and US Dollar Denominated Foreign Bonds	$	64,816	$	(364	)	$	64,452
Commercial Paper		2,999		—			2,999
US Treasury		1,177		(7	)		1,170
Total	$	68,992	$	(371	)	$	68,621

The following table summarizes the Company’s investment securities as of December 27, 2020:

	Amortized Cost		Unrealized Losses			Fair Value
US Corporate Bonds and US Dollar Denominated Foreign Bonds	$	58,671	$	(41	)	$	58,630
Commercial Paper		6,697		—			6,697
US Treasury		3,030		—			3,030
Total	$	68,398	$	(41	)	$	68,357

Available-for-sale securities

In October 2020, the Company purchased available-for-sale debt securities of approximately $68,336. During the year ended December 26, 2021 there were purchases of $51,688, sales and maturities of $40,874 with realized losses of $1, and call redemptions of $10,752 with realized losses of $54.

The securities incurred unrealized losses of $330 and related tax benefit of $80 for the year ended December 26, 2021.

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. Contractual maturities of investment securities as of December 26, 2021 are as follows:

	Amortized Cost		Fair Value
Due within one year	$	25,656	$	25,638
Due in 1-5 years		43,336		42,983
Total available-for-sale	$	68,992	$	68,621

Revenue Recognition

12 Months Ended

Dec. 26, 2021

Revenue From Contract With Customer [Abstract]

Revenue Recognition

5. Revenue Recognition

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

	Fiscal Year Ended
	December 26, 2021		December 27, 2020		December 29, 2019
Net Revenue:
Eggs and egg related products	$	239,967	$	196,695	$	128,579
Butter and butter related products		20,934		17,585		12,154
Net Revenue	$	260,901	$	214,280	$	140,733

Net revenue is primarily generated from the sale of eggs and butter. Historically, the Company’s product offering was comprised of shell eggs, hard-boiled eggs, liquid whole eggs and butter. In August 2021, the Company added spreadable tub butter and egg-based breakfast bars to its product offering.

The fiscal year ended December 27, 2020 includes revenue totaling $624 resulting from the reduction of a sales promotion incentive settled in Q2 2020 that related to a prior year’s gross sales.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

Accounts Receivable

12 Months Ended

Dec. 26, 2021

Receivables [Abstract]

Accounts Receivable

6. Accounts Receivable

Accounts receivable, net was $26,938 and $20,934 as of December 26, 2021 and December 27, 2020, respectively.

As of December 26, 2021 and December 27, 2020, the Company recorded an allowance for doubtful accounts of $269 and $196, respectively. Changes in the allowance for doubtful accounts were as follows:

	Allowance for doubtful accounts
As of December 29, 2019	$	(304	)
Provisions Charged to Operating Results		(217	)
Account Write-off and Recoveries		325
As of December 27, 2020	$	(196	)
Provisions Charged to Operating Results		(184	)
Account Write-off and Recoveries		111
As of December 26, 2021	$	(269	)

Inventories

12 Months Ended

Dec. 26, 2021

Inventory Disclosure [Abstract]

Inventories

7. Inventories

Inventory consisted of the following as of the periods presented:

	December 26, 2021		December 27, 2020
Eggs and egg related products	$	5,422	$	6,407
Butter and butter related products		2,359		3,347
Packaging		2,166		1,997
Other		998		1,151
	$	10,945	$	12,902

During the years ended December 26, 2021, December 27, 2020, and December 29, 2019, laying-hen costs amortized to cost of goods sold were approximately $232, $375, and $484, respectively. On a periodic basis, the Company compares the amount of inventory on hand with its latest forecasted requirement to determine whether charges for excess or obsolete inventory reserves are required.

Property, Plant and Equipment

12 Months Ended

Dec. 26, 2021

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

8. Property, Plant and Equipment

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

	December 26, 2021			December 27, 2020
Land	$	525		$	525
Buildings and improvements		14,214			14,297
Vehicles		695			551
Machinery and equipment		15,523			12,473
Leasehold improvements		830			973
Furniture and fixtures		503			447
Construction in progress		21,164			6,654
		53,454			35,920
Less: Accumulated depreciation and amortization		(8,846	)		(5,802	)
Property, plant and equipment, net	$	44,608		$	30,118

During the years ended December 26, 2021, December 27, 2020, and December 29, 2019, depreciation and amortization of property, plant and equipment was approximately $3,540, $2,550, and $1,921, respectively.

As of December 26, 2021 and December 27, 2020, machinery and equipment that was leased under capital leases and included in property, plant and equipment, net in the consolidated balance sheets was approximately $876 and $1,193, respectively.

Accrued Liabilities

12 Months Ended

Dec. 26, 2021

Payables And Accruals [Abstract]

Accrued Liabilities

9. Accrued Liabilities

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

	December 26, 2021		December 27, 2020
Accrued promotions and expired product credits	$	3,599	$	2,724
Accrued employee related costs		3,039		3,718
Accrued offering costs		—		123
Accrued distribution fees and freight		3,875		436
Accrued accounting and legal fees		344		238
Accrued marketing and commissions		769		739
Accrued purchases of inventory		1,197		1,088
Property, plant and equipment		1,258		502
Other		1,043		277
Accrued liabilities	$	15,124	$	9,845

Long-Term Debt

12 Months Ended

Dec. 26, 2021

Debt Disclosure [Abstract]

Long-Term Debt

10. Long-Term Debt

In October 2017, the Company entered into a credit facility agreement with PNC Bank, National Association (the “Credit Facility”) that provided for an initial term loan of $4,700 (the “Term Loan”) and a revolving line of credit of up to $10,000 (the “Revolving Line of Credit”). The Credit Facility also originally provided for a $1,500 equipment loan (the “Equipment Loan”) for the purpose of funding permitted capital expenditures, subject to certain restrictions.

Subsequently, the terms of the Credit Facility were modified at various times throughout fiscal 2018-2021 which (i) amended various definitions, (ii) waived a technical default in May 2020 which was triggered by exceeding the capital expenditure limit, and (iii) increased borrowing capacity and (iv) extended the maturity date. The Ninth Amendment to the Credit Facility in April 2021 eliminated the Term Loan and Equipment Loan. The Revolving Line of Credit matures in April 2024.

The maximum borrowing capacity under the Revolving Line of Credit is $20,000. Interest on borrowings under the Revolving Line of Credit, as well as loan advances thereunder, accrues at a rate, at the Company’s election at the time of borrowing, equal to (i) LIBOR plus 2.00% or (ii) 1.00% plus the alternate base rate. As of December 26, 2021, there were no outstanding amounts under the Revolving Line of Credit.

The Credit Facility is secured by all of the Company’s assets (other than real property and certain other property excluded pursuant to the terms of the Credit Facility) and requires the Company to comply with three financial covenants: a fixed charge coverage ratio, a leverage ratio and a minimum tangible net worth requirement. The Credit Facility also contains various covenants relating to limitations on indebtedness, acquisitions, mergers, consolidations and the sale of properties and liens. As a result of the limitations contained in the Credit Facility, certain of the net assets on the Company’s consolidated balance sheet as of December 26, 2021 are restricted in use. Vital Farms’ wholly owned subsidiaries are non-operating and do not hold any assets or liabilities; therefore, these subsidiaries have no restricted net assets within the meaning of Rule 4-08(e)(3) or Rule 12-04 of Regulation S-X. The Credit Facility also contains other customary covenants, representations and events of default. As of December 26, 2021, the Company was in compliance with all covenants under the Credit Facility.

Debt issuance costs associated with the Credit Facility are reflected as a reduction of the carrying value of long-term debt on the Company’s consolidated balance sheets and are being amortized to interest expense over the term of the Credit Facility using the effective interest method. During the years ended December 26, 2021, December 27, 2020, and December 29, 2019, the Company recognized interest expense of $52, $488, and $349 respectively, which includes amortization of debt issuance costs of $0, $68, and $9, respectively.

As of December 26, 2021, future principal payments for capital lease payments are $327 for the fiscal year ending December 25, 2022, due to the August 2022 expiration of the capital lease.

Amounts outstanding under the Company’s Revolving Line of Credit as of December 27, 2020 have been presented as current obligations under current portion of long-term debt in the Company’s consolidated balance sheets due to the Company’s ability and intent to repay the amounts within the next twelve months.

Paycheck Protection Program Loan: In April 2020, the Company received loan proceeds of approximately $2,593 under the Paycheck Protection Program (“PPP”) (the “PPP Loan”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualified businesses for amounts up to 2.5 times of the average monthly payroll expenses for the qualifying business. The Company elected to not use any of the PPP Loan proceeds of $2,593 and repaid the entire balance of the PPP Loan in April 2020.

Redeemable Convertible Preferred Stock

12 Months Ended

Dec. 26, 2021

Equity [Abstract]

Redeemable Convertible Preferred Stock

11. Redeemable Convertible Preferred Stock

Upon the closing of the IPO in August 2020, all of the then-outstanding shares of Preferred Stock automatically converted into 8,192,876 shares of common stock on a one-for-one basis. Subsequent to the closing of the IPO, there were no shares of Preferred Stock outstanding.

As of December 26, 2021, the Company’s amended and restated certificate of incorporation authorized the Company to issue 10,000,000 shares, par value $0.0001 per share, of preferred stock, in one or more series and with such designation, rights and preferences as may be determined from time to time by the Company’s board of directors (collectively, the “Preferred Stock”). As of December 26, 2021, there were no shares of Preferred Stock issued or outstanding.

Common Stock and Common Stock Warrant

12 Months Ended

Dec. 26, 2021

Equity [Abstract]

Common Stock and Common Stock Warrant

12. Common Stock and Common Stock Warrant

Common Stock: As of December 26, 2021, Vital Farms’ 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 40,493,969 shares were issued and outstanding.

In March 2019 and April 2019, the Company issued and sold an aggregate of 2,815,012 shares of common stock at a purchase price of $5.3286 per share, for proceeds of $14,097, net of issuance costs of $903.

In March 2019 and April 2019, the Company executed a tender offer to repurchase 2,852,770 shares of its common stock and the vested equity of certain directors, employees and officers for a net purchase price of $5.0087 per shares for net proceeds of $14,289.

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 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 Company’s board of directors, if any, subject to the preferential dividend rights of Preferred Stock, if any. No cash dividends had been 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 26, 2021		December 27, 2020
Options to purchase common stock		4,927,033		5,815,684
Restricted stock units		107,867		45,000
Shares available for grant under the 2020 Equity Incentive Plan and 2020 Employee Stock Purchase Plan		9,993,187		7,615,143
Total		15,028,087		13,475,827

Common Stock Warrant: In June 2015, the Company issued a warrant to the guarantor of a line of credit agreement that was entered into in 2015. During 2017 the line of credit matured and was repaid in full. The guarantor was also the Company’s Chief Executive Officer. The warrant provided for the purchase of a total of 196,800 shares of Vital Farms common stock at an exercise price of $1.43 per share. The warrant was scheduled to expire on the earlier of June 12, 2020 or the completion of the IPO. At the time of issuance, the Company classified the warrant as equity in its consolidated balance sheets. On June 9, 2020, the guarantor exercised the warrant to purchase 196,800 shares of Vital Farms’ common stock resulting in net proceeds of approximately $282.

Treasury Stock: In August 2021, the Company retired an aggregate of 5,494,918 shares of its common stock held in treasury. Upon retirement, the shares were redesignated as authorized but unissued shares of the Company’s common stock.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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+ Details

Stock-Based Compensation

12 Months Ended

Dec. 26, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

13. Stock-Based Compensation

As of December 26, 2021, 9,993,187 shares were available for future grants of the Company’s common stock pursuant to the Vital Farms, Inc. 2020 Equity Incentive Plan (“2020 Incentive Plan”) and the 2020 Employee Share Purchase Plan (“2020 ESPP”).

2020 Equity Incentive Plan: In July 2020, the Company’s board of directors adopted the Vital Farms, Inc. 2020 Equity Incentive Plan (“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 Company’s board of directors. On January 1, 2022, 1,619,758 shares of common stock were added to the available reserve pursuant to this provision.

We estimate 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 we believe the option will remain outstanding. We 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. Our 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 assumptions were utilized to calculate the fair value of stock options granted during the fiscal periods indicated:


	December 26, 2021		December 27, 2020		December 29, 2019
Expected term (in years)	6.0 - 6.5		5.2 - 6.5		5.4 - 6.5
Expected stock price volatility	28.5% - 29.4%		29.1% - 42.9%		39.5% - 47.0%
Risk-free interest rate	0.57% - 1.36%		0.34% - 0.49%		1.4% - 2.38%
Expected dividend yield	0%		0%		0%
Weighted average fair value at grant date	$	7.31	$	6.83	$	2.31

The following table summarizes the Company’s stock option activity since December 27, 2020:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding as of December 27, 2020		5,815,684		$	6.87		6.7	$	112,762
Granted		565,593		$	24.05
Exercised		(1,034,929	)	$	2.68			$	20,343
Cancelled		(419,315	)	$	12.17
Outstanding as of December 26, 2021		4,927,033		$	9.25		6.5	$	48,222
Options exercisable as of December 26, 2021		2,572,316		$	4.70		5.1	$	33,605
Options vested and expected to vest as of December 26, 2021		4,918,003		$	9.26		6.5	$	48,099

The following table summarizes the Company’s stock option activity since December 29, 2019:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding as of December 29, 2019		5,413,064		$	3.73		7.3	$	60,059
Granted		985,519		$	22.98
Exercised		(66,062	)	$	2.85			$	1,022
Cancelled		(516,837	)	$	3.76
Outstanding as of December 27, 2020		5,815,684		$	6.87		6.7	$	112,762
Options exercisable as of December 27, 2020		2,751,727		$	2.59		4.7	$	63,061
Options vested and expected to vest as of December 27, 2020		5,815,684		$	6.87		6.7	$	112,762

The fair value of shares vested during the fiscal year ended December 26, 2021 and December 27, 2020 was $2,694 and $3,320, respectively.

Restricted Stock Units: In August 2020, the Company granted a restricted stock unit (“RSU”) for 7,500 shares of the Company’s common stock to each person who was a non-employee director as of the IPO date, for a total of 45,000 RSUs (“IPO Initial Grant”). Each IPO Initial Grant will vest in three equal installments on the day before each of the first, second and third Annual Meeting of the Stockholders that occurs following the IPO Date, subject to the Non-Employee Director’s Continuous Service (as defined in the 2020 Incentive Plan) on each vesting date. Additionally, the Company granted a fully vested RSU for 3,097 shares to an employee in October 2020.

The following table summarizes the Company’s restricted stock unit activity since December 29, 2019:

	Number of RSUs			Weighted- Average Fair Price
Unvested as of December 29, 2019		—		$	—
Granted		48,097		$	37.63
Vested		(3,097	)	$	37.97
Forfeited		—		$	—
Unvested as of December 27, 2020		45,000		$	37.61
Granted		80,324		$	23.71
Vested		(15,000	)	$	37.61
Forfeited		(2,457	)	$	25.78
Unvested as of December 26, 2021		107,867		$	27.53

During the years ended December 26, 2021, December 27, 2020, and December 29, 2019, the Company recognized total stock-based compensation expense of $4,440, $2,509, and $1,029, respectively. The Company classifies stock-based compensation expense in its consolidated statements of operations 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.

As of December 26, 2021, total unrecognized stock-based compensation expense related to unvested stock options and unreleased restricted stock units was $11,006, which is expected to be recognized over a weighted-average period of 2.6 years.

Employee Stock Purchase Plan: In July 2020, the board of directors adopted the Vital Farms Inc. 2020 Employee Stock Purchase Plan (“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 Vital Farms board of directors. On January 1, 2022, 404,939 shares of common stock were added to the available reserve pursuant to this provision. The Company’s board of directors may periodically grant or provide for the grant to eligible employees the ability to purchase common stock under the 2020 ESPP during a specific offering period. In November 2021, the Compensation Committee of the Board of Directors approved an initial offering of common stock under the 2020 ESPP to eligible employees, which commenced March 1, 2022.

Income Taxes

12 Months Ended

Dec. 26, 2021

Income Tax Disclosure [Abstract]

Income Taxes

14. Income Taxes

For the years ended December 26, 2021, December 27, 2020, and December 29, 2019 the provision for income taxes consisted of the following:

	December 26, 2021			December 27, 2020		December 29, 2019
Current:
Federal	$	225		$	587	$	867
State		282			412		187
Deferred:
Federal		(2,164	)		1,677		(88	)
State		(371	)		94		140
(Benefit) provision for income taxes	$	(2,028	)	$	2,770	$	1,106

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 26, 2021			December 27, 2020			December 29, 2019
Provision at statutory rate of 21%	$	74		$	2,446		$	929
State income taxes		(416	)		300			258
Stock-based compensation		(2,846	)		373			-
Non-deductible costs		12			211			604
Charitable deduction		(88	)		(206	)		(629	)
Change in deferred tax asset valuation allowance		774			(138	)		23
Other, net		462			(216	)		(79	)
(Benefit) provision for income taxes	$	(2,028	)	$	2,770		$	1,106

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 26, 2021 and December 27, 2020 were comprised of the following:

	December 26, 2021			December 27, 2020
Deferred tax assets:
Accrued expenses	$	1,383		$	1,144
Allowances and other reserves		212			80
Inventory		387			368
Net operating loss carryforwards		2,220			27
Charitable contributions		774			322
Stock-based compensation		460			205
Other		90			11
Total deferred tax assets		5,526			2,157
Less: Valuation allowance		(774	)		-
Net deferred tax assets	$	4,752		$	2,157
Deferred tax liabilities:
Prepaid expenses	$	784		$	906
Property and equipment		3,610			3,497
Intangibles		279			291
Total deferred tax liabilities		4,673			4,694
Net deferred tax assets or liabilities	$	79		$	2,537

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 net change in the total valuation allowance for the year ended December 26, 2021 was an increase of approximately $774.

The activity in the Company’s deferred tax asset valuation allowance for the years ended December 26, 2021 and December 27, 2020 was as follows:

	December 26, 2021		December 27, 2020
Valuation allowance as of beginning of year	$	-	$	138
Increases recorded to income tax provision		774		—
Decreases recorded as benefit to income tax provision		-		(138	)
Valuation allowance as of end of year	$	774	$	-

As of December 26, 2021, 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 26, 2021, 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 we do not anticipate the balance of the unrecognized tax benefits to change in the next twelve months.

The following table reflects changes in gross unrecognized tax benefits:

	December 26, 2021		December 27, 2020
Gross tax contingencies as of beginning of year	$	219	$	272
Increase in gross tax contingencies		-		219
Decrease in gross tax contingencies		-		(272	)
Gross tax contingencies as of end of year	$	219	$	219

As of December 26, 2021, the Company had federal net operating loss carryforwards of $9.1 million which can be carried forward indefinitely. The Company also had state net operating loss carryforwards of $3.9 million which begin to expire in 2022.

The Company files a U.S. federal income tax return, as well as income tax returns in various states. Tax years 2018 through 2020 remain open to examination by the tax jurisdictions to which the Company is subject, with certain state taxing jurisdictions being open back to 2017.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Net Income Per Share

12 Months Ended

Dec. 26, 2021

Earnings Per Share [Abstract]

Net Income Per Share

15. 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 26, 2021			December 27, 2020		December 29, 2019
Numerator:
Net income	$	2,382		$	8,884	$	3,312
Less: Net (loss) income attributable to noncontrolling interests		(47	)		84		927
Net income attributable to Vital Farms, Inc. stockholders’ — basic and diluted	$	2,429		$	8,800	$	2,385
Denominator:
Weighted average common shares outstanding — basic		40,027,278			28,667,264		25,897,223
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options		3,290,615			4,142,947		1,826,084
Effect of potentially dilutive common stock warrants		—			82,993		154,832
Effect of potentially dilutive restricted stock units		3,840			21,449		—
Effect of potentially dilutive redeemable convertible preferred stock		—			—		8,192,876
Weighted average common shares outstanding — diluted		43,321,733			32,914,653		36,071,015
Net income per share attributable to Vital Farms, Inc. stockholders
Basic	$	0.06		$	0.31	$	0.09
Diluted	$	0.06		$	0.27	$	0.07

For the years ended December 26, 2021 and December 27, 2020, options to purchase 23,744 shares of common stock and 826,883 shares of common stock, respectively, were excluded from the computation of diluted net income per share attributable to the Company’s common stockholders because including them would have been antidilutive.

Commitments and Contingencies

12 Months Ended

Dec. 26, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

16. Commitments and Contingencies

Operating Leases: As of December 26, 2021, the Company was leasing approximately 9,100 square feet of office space and parking spaces in Austin, Texas. The lease expires in April 2026. The Company has the option to extend the lease agreement for successive periods of up to five years. The monthly lease payments, which include base rent charges of $19, are subject to periodic rent increases through April 2026.

As of December 27, 2020, the Company was leasing warehouse space in Webb City, Missouri for 5,000 rentable pallet spaces. The monthly lease payments include base rent charges of $55. In October 2020, the lease was amended to terminate the agreement effective December 31, 2020.

As of December 26, 2021, the Company was leasing approximately 92,000 square feet of warehouse space in Springfield, Missouri for 10,000 rentable pallet spaces under an operating lease expiring in September 2023. The monthly lease payments, which include base rent charges of $79, are subject to periodic rent increases through September 2023.

The Company recognizes rent expense on a straight-line basis over the respective lease period and has recorded deferred rent for rent expense incurred but not yet paid. During the years ended December 26, 2021, December 27, 2020, and December 29, 2019, the Company recognized rent expense, including associated common area maintenance charges, of $583, $444, and $358, respectively.

As of December 26, 2021, future minimum lease payments under noncancelable operating leases are as follows:

2022	$	1,476
2023		1,254
2024		471
2025		338
Thereafter		115
Total	$	3,654

Supplier Contracts: The Company purchases its egg inventories under 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. In addition, substantially all the Company’s supply contracts with farms contain components that meet the definition of embedded leases within the scope of Topic 840, Leases. 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. As total purchase commitments contained in these arrangements are variable, the amounts attributable to the lease components are contingent rentals; there are no minimum lease payments associated with these supply contracts. 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 costs of eggs, which includes costs associated with the eggs and the corresponding costs 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. During the years ended December 26, 2021, December 27, 2020, and December 29, 2019, the Company recognized total costs associated with its supply contracts with farms of $108,707, $84,537, and $54,380, respectively.

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 26, 2021, the Company has not incurred any material costs as a result of such indemnifications.

Litigation: The Company is subject to various claims and contingencies which 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. 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. The liability recorded includes probable and estimable legal costs incurred to date and future legal costs to the point in the legal matter where the Company believes a conclusion to the matter will be reached. 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.

In January 2019, Ovabrite Inc. (“Ovabrite”) settled claims made pursuant to a lawsuit in which Ovabrite was the defendant and a countersuit in which Ovabrite was the plaintiff and recorded a related gain of $1,200, which is included in other income in the consolidated statements of operations.

Related Party Transactions

12 Months Ended

Dec. 26, 2021

Related Party Transactions

17. Related Party Transactions

Guarantor Warrant: The Company’s executive chairman and former Chief Executive Officer (the “Guarantor”) guaranteed the Company’s obligations under a line of credit agreement that was entered into in 2015 and that matured and was repaid in full in 2017. The Company issued a warrant to purchase 196,800 shares of the Company’s common stock at an exercise price of $1.43 to the Guarantor in exchange for his guaranty. See Note 12, “Common Stock and Common Stock Warrant.” The warrant expired on the earlier of June 12, 2020 or the completion of the IPO. In June 2020, the Guarantor exercised the warrant to purchase 196,800 shares of the Company’s common stock resulting in net proceeds of approximately $282.

Ovabrite: Ovabrite is a related party because its founders are stockholders of the Company, with the majority stockholder in Ovabrite also serving as the Company’s executive chairman and member of the Company’s board of directors. Since Ovabrite’s incorporation in November 2016, the Company is deemed to have had a variable interest in Ovabrite, and Ovabrite is deemed to have been a VIE, of which the Company is 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. The Ovabrite entity is immaterial as of the year ended December 26, 2021.

Notes Receivable from Related Parties: In February 2019, the Company issued promissory notes in the aggregate amount of $4,000 to its founder and a former member of the board of directors that is currently a board observer, both of whom are also stockholders of the Company. The promissory notes bore monthly interest at LIBOR plus 2.0% and were to mature on the earlier of August 7, 2022 or the date of closing of a liquidity transaction which is defined as a merger, consolidation or sale of the Company’s assets or such time as the notes would be prohibited by the Sarbanes-Oxley Act (“Promissory Note Maturity Date”). All unpaid principal and accrued and unpaid interest was due on the Promissory Note Maturity Date. The borrower has the ability to prepay all or any portion of the promissory note at any time without premium or penalty. In November 2019, $3,200 of the promissory notes were repaid.

In August 2020, the remaining $800 of the promissory notes were repaid. During the years ended December 26, 2021, December 27, 2020, the Company recorded interest income of $0 and $97, respectively, in connection with the promissory notes.

Manna Tree Partners: In March 2019 and April 2019, the Company issued and sold an aggregate of 2,815,012 shares of common stock at a purchase price of $5.3286 per share, for an aggregate purchase price of $15,000, to entities associated with Manna Tree Partners. The co-founder and chief operating officer of Manna Tree Partners is a member of the Company’s board of directors.

Sandpebble Builders Preconstruction, Inc.: The Company utilizes Sandpebble Builders Preconstruction, Inc. (“Sandpebble”) for project management and related services associated with the construction and expansion of Egg Central Station. The owner and principal of Sandpebble is the father of an executive of the Company. In connection with the services described above, the Company paid Sandpebble $1,037, $842, and $556 in 2021, 2020, and 2019, respectively. Amounts paid to Sandpebble are included in property, plant and equipment.

Whole Foods Market, Inc: A member of the Company’s 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 Market, Inc. While the Company cannot precisely determine its specific revenue attributable to Whole Foods, it is a significant customer.

401(K) Savings Plan

12 Months Ended

Dec. 26, 2021

Compensation And Retirement Disclosure [Abstract]

401(K) Savings Plan

18. 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 Company’s board of directors. During the years ended December 26, 2021, December 27, 2020 and December 29, 2019, the Company made contributions totaling $651, $401, and $246 respectively, to the plan.

Subsequent Events

12 Months Ended

Dec. 26, 2021

Subsequent Events [Abstract]

Subsequent Events

19. Subsequent Events

In January 2022, management of the Company determined that the Company would cease production of its breakfast bars and egg bites products effective prior to the end of the first quarter ending March 27, 2022. The Company expects to incur charges of approximately $2.1 million related to these product discontinuations for inventory obsolescence and contract terminations during the quarter ending March 27, 2022.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 26, 2021

Accounting Policies [Abstract]

Use of Estimates

Deferred Offering Costs

Concentrations of Credit Risk and Significant Customers

	Net Revenue Year Ended December 26, 2021	Net Revenue Year Ended December 27, 2020	Net Revenue Year Ended December 29, 2019	Accounts Receivable, Net As Of December 26, 2021	Accounts Receivable, Net As Of December 27, 2020
Customer A	18%	15%	35%	19%	*
Customer B	14%	18%	*	*	20%
Customer C	10%	12%	11%	*	*
Customer D	12%	13%	14%	13%	15%

*Revenue and/or accounts receivable was less than 10%.

Cash and Cash Equivalents

Investment Securities

Variable Interest Entity

Segment Information

Fair Value of Financial Instruments

•

Level 1 - Quoted prices in active markets for identical assets or liabilities.

•

Accounts Receivable

Inventories

Property, Plant and Equipment


		Estimated Useful Life
Land		N/A
Building and improvements		39 years
Vehicles		5 years
Machinery and equipment		2 to 7 years
Furniture and fixtures		5 years
Leasehold improvements		Lesser of lease term or 5 years

Goodwill

Impairment of Long-Lived Assets

Contingent Consideration

Noncontrolling Interest

Income Taxes

Net Income (Loss) per Share Attributable to Vital Farms, Inc. Common Stockholders

Revenue Recognition

Treasury Stock

Shipping and Distribution

Stock-Based Compensation

Advertising and Promotion Expenses

Emerging Growth Company Status

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 26, 2021

Accounting Policies [Abstract]

Summary of Significant Customers Information

Significant customer information is presented below as follows:

	Net Revenue Year Ended December 26, 2021	Net Revenue Year Ended December 27, 2020	Net Revenue Year Ended December 29, 2019	Accounts Receivable, Net As Of December 26, 2021	Accounts Receivable, Net As Of December 27, 2020
Customer A	18%	15%	35%	19%	*
Customer B	14%	18%	*	*	20%
Customer C	10%	12%	11%	*	*
Customer D	12%	13%	14%	13%	15%

*Revenue and/or accounts receivable was 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
Building and improvements		39 years
Vehicles		5 years
Machinery and equipment		2 to 7 years
Furniture and fixtures		5 years
Leasehold improvements		Lesser of lease term or 5 years

Fair Value (Tables)

12 Months Ended

Dec. 26, 2021

Fair Value Disclosures [Abstract]

Schedule of Financial Assets Measured at Fair Value

The following table presents information about the Company’s financial assets measured at fair value on a recurring basis:

	Fair Value Measurements as of December 26, 2021, Using:
	Level 1		Level 2		Level 3		Total
Assets:
US Corporate Bonds and US Denominated Foreign Bonds	$	—	$	64,452	$	—	$	64,452
Commercial Paper		—		2,999		—		2,999
Money Market		20,101		—		—		20,101
US Treasury		—		1,170		—		1,170
Total assets measured at fair value	$	20,101	$	68,621	$	—	$	88,722

	Fair Value Measurements as of December 27, 2020, Using:
	Level 1		Level 2		Level 3		Total
Assets:
US Corporate Bonds and US Denominated Foreign Bonds	$	—	$	58,630	$	—	$	58,630
Commercial Paper		—		6,697		—		6,697
Money Market		25,469		—		—		25,469
US Treasury		—		3,030		—		3,030
Total assets measured at fair value	$	25,469	$	68,357	$	—	$	93,826

Summary of Financial Liabilities Measured at Fair Value on a Recurring Basis

The following tables presents information about the Company’s financial liabilities measured at fair value on a recurring basis:

	Fair Value Measurements as of December 26, 2021, Using:
Liabilities:	Level 1		Level 2		Level 3		Total
Contingent consideration, current	$	—	$	—	$	19	$	19
Contingent consideration, non-current		—		—		-		-
Total liabilities measured at fair value	$	—	$	—	$	19	$	19

	Fair Value Measurements as of December 27, 2020, Using:
	Level 1		Level 2		Level 3		Total
Liabilities:
Contingent consideration, current	$	—	$	—	$	109	$	109
Contingent consideration, non-current		—		—		18		18
Total liabilities measured at fair value	$	—	$	—	$	127	$	127

Schedule of Unobservable Inputs and Valuation of Contingent Consideration

The following table presents the unobservable inputs incorporated into the valuation of contingent consideration:

Unobservable Input	December 26, 2021		December 27, 2020
Estimated dozens of eggs to be supplied		275,250		1,885,660
Royalty rate per dozen eggs	$	0.07	$	0.07
Estimated future royalty expense	$	19	$	132
Discount interval (in years)		0.5		1.4

Investment Securities (Tables)

12 Months Ended

Dec. 26, 2021

Investments Debt And Equity Securities [Abstract]

Summary of Investment Securities

The following table summarizes the Company’s investment securities as of December 26, 2021:

	Amortized Cost		Unrealized Losses			Fair Value
US Corporate Bonds and US Dollar Denominated Foreign Bonds	$	64,816	$	(364	)	$	64,452
Commercial Paper		2,999		—			2,999
US Treasury		1,177		(7	)		1,170
Total	$	68,992	$	(371	)	$	68,621

The following table summarizes the Company’s investment securities as of December 27, 2020:

	Amortized Cost		Unrealized Losses			Fair Value
US Corporate Bonds and US Dollar Denominated Foreign Bonds	$	58,671	$	(41	)	$	58,630
Commercial Paper		6,697		—			6,697
US Treasury		3,030		—			3,030
Total	$	68,398	$	(41	)	$	68,357

Summary of Contractual Maturities of Investment Securities

Contractual maturities of investment securities as of December 26, 2021 are as follows:

	Amortized Cost		Fair Value
Due within one year	$	25,656	$	25,638
Due in 1-5 years		43,336		42,983
Total available-for-sale	$	68,992	$	68,621

Revenue Recognition (Tables)

12 Months Ended

Dec. 26, 2021

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 26, 2021		December 27, 2020		December 29, 2019
Net Revenue:
Eggs and egg related products	$	239,967	$	196,695	$	128,579
Butter and butter related products		20,934		17,585		12,154
Net Revenue	$	260,901	$	214,280	$	140,733

Accounts Receivable (Tables)

12 Months Ended

Dec. 26, 2021

Receivables [Abstract]

Schedule of Changes in Allowance for Doubtful Accounts Receivable

Changes in the allowance for doubtful accounts were as follows:

	Allowance for doubtful accounts
As of December 29, 2019	$	(304	)
Provisions Charged to Operating Results		(217	)
Account Write-off and Recoveries		325
As of December 27, 2020	$	(196	)
Provisions Charged to Operating Results		(184	)
Account Write-off and Recoveries		111
As of December 26, 2021	$	(269	)

Inventories (Tables)

12 Months Ended

Dec. 26, 2021

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consisted of the following as of the periods presented:

	December 26, 2021		December 27, 2020
Eggs and egg related products	$	5,422	$	6,407
Butter and butter related products		2,359		3,347
Packaging		2,166		1,997
Other		998		1,151
	$	10,945	$	12,902

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 26, 2021

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 26, 2021			December 27, 2020
Land	$	525		$	525
Buildings and improvements		14,214			14,297
Vehicles		695			551
Machinery and equipment		15,523			12,473
Leasehold improvements		830			973
Furniture and fixtures		503			447
Construction in progress		21,164			6,654
		53,454			35,920
Less: Accumulated depreciation and amortization		(8,846	)		(5,802	)
Property, plant and equipment, net	$	44,608		$	30,118

Accrued Liabilities (Tables)

12 Months Ended

Dec. 26, 2021

Payables And Accruals [Abstract]

Schedule of Accrued Liabilities

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

	December 26, 2021		December 27, 2020
Accrued promotions and expired product credits	$	3,599	$	2,724
Accrued employee related costs		3,039		3,718
Accrued offering costs		—		123
Accrued distribution fees and freight		3,875		436
Accrued accounting and legal fees		344		238
Accrued marketing and commissions		769		739
Accrued purchases of inventory		1,197		1,088
Property, plant and equipment		1,258		502
Other		1,043		277
Accrued liabilities	$	15,124	$	9,845

Common Stock and Common Stock Warrant (Tables)

12 Months Ended

Dec. 26, 2021

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 26, 2021		December 27, 2020
Options to purchase common stock		4,927,033		5,815,684
Restricted stock units		107,867		45,000
Shares available for grant under the 2020 Equity Incentive Plan and 2020 Employee Stock Purchase Plan		9,993,187		7,615,143
Total		15,028,087		13,475,827

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 26, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Assumptions Utilized to Calculate Fair Value of Stock Options Granted

The following assumptions were utilized to calculate the fair value of stock options granted during the fiscal periods indicated:


	December 26, 2021		December 27, 2020		December 29, 2019
Expected term (in years)	6.0 - 6.5		5.2 - 6.5		5.4 - 6.5
Expected stock price volatility	28.5% - 29.4%		29.1% - 42.9%		39.5% - 47.0%
Risk-free interest rate	0.57% - 1.36%		0.34% - 0.49%		1.4% - 2.38%
Expected dividend yield	0%		0%		0%
Weighted average fair value at grant date	$	7.31	$	6.83	$	2.31

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity since December 27, 2020:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding as of December 27, 2020		5,815,684		$	6.87		6.7	$	112,762
Granted		565,593		$	24.05
Exercised		(1,034,929	)	$	2.68			$	20,343
Cancelled		(419,315	)	$	12.17
Outstanding as of December 26, 2021		4,927,033		$	9.25		6.5	$	48,222
Options exercisable as of December 26, 2021		2,572,316		$	4.70		5.1	$	33,605
Options vested and expected to vest as of December 26, 2021		4,918,003		$	9.26		6.5	$	48,099

The following table summarizes the Company’s stock option activity since December 29, 2019:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding as of December 29, 2019		5,413,064		$	3.73		7.3	$	60,059
Granted		985,519		$	22.98
Exercised		(66,062	)	$	2.85			$	1,022
Cancelled		(516,837	)	$	3.76
Outstanding as of December 27, 2020		5,815,684		$	6.87		6.7	$	112,762
Options exercisable as of December 27, 2020		2,751,727		$	2.59		4.7	$	63,061
Options vested and expected to vest as of December 27, 2020		5,815,684		$	6.87		6.7	$	112,762

Summary of Restricted Stock Unit Activity

The following table summarizes the Company’s restricted stock unit activity since December 29, 2019:

	Number of RSUs			Weighted- Average Fair Price
Unvested as of December 29, 2019		—		$	—
Granted		48,097		$	37.63
Vested		(3,097	)	$	37.97
Forfeited		—		$	—
Unvested as of December 27, 2020		45,000		$	37.61
Granted		80,324		$	23.71
Vested		(15,000	)	$	37.61
Forfeited		(2,457	)	$	25.78
Unvested as of December 26, 2021		107,867		$	27.53

Income Taxes (Tables)

12 Months Ended

Dec. 26, 2021

Income Tax Disclosure [Abstract]

Provision for Income Taxes

For the years ended December 26, 2021, December 27, 2020, and December 29, 2019 the provision for income taxes consisted of the following:

	December 26, 2021			December 27, 2020		December 29, 2019
Current:
Federal	$	225		$	587	$	867
State		282			412		187
Deferred:
Federal		(2,164	)		1,677		(88	)
State		(371	)		94		140
(Benefit) provision for income taxes	$	(2,028	)	$	2,770	$	1,106

Reconciliation of Federal Statutory Income Tax Provision

	December 26, 2021			December 27, 2020			December 29, 2019
Provision at statutory rate of 21%	$	74		$	2,446		$	929
State income taxes		(416	)		300			258
Stock-based compensation		(2,846	)		373			-
Non-deductible costs		12			211			604
Charitable deduction		(88	)		(206	)		(629	)
Change in deferred tax asset valuation allowance		774			(138	)		23
Other, net		462			(216	)		(79	)
(Benefit) provision for income taxes	$	(2,028	)	$	2,770		$	1,106

Schedule of Deferred Income Tax Assets and Liabilities

	December 26, 2021			December 27, 2020
Deferred tax assets:
Accrued expenses	$	1,383		$	1,144
Allowances and other reserves		212			80
Inventory		387			368
Net operating loss carryforwards		2,220			27
Charitable contributions		774			322
Stock-based compensation		460			205
Other		90			11
Total deferred tax assets		5,526			2,157
Less: Valuation allowance		(774	)		-
Net deferred tax assets	$	4,752		$	2,157
Deferred tax liabilities:
Prepaid expenses	$	784		$	906
Property and equipment		3,610			3,497
Intangibles		279			291
Total deferred tax liabilities		4,673			4,694
Net deferred tax assets or liabilities	$	79		$	2,537

Schedule of Deferred Tax Asset Valuation Allowance

The activity in the Company’s deferred tax asset valuation allowance for the years ended December 26, 2021 and December 27, 2020 was as follows:

	December 26, 2021		December 27, 2020
Valuation allowance as of beginning of year	$	-	$	138
Increases recorded to income tax provision		774		—
Decreases recorded as benefit to income tax provision		-		(138	)
Valuation allowance as of end of year	$	774	$	-

Unrecognized Tax Benefits

The following table reflects changes in gross unrecognized tax benefits:

	December 26, 2021		December 27, 2020
Gross tax contingencies as of beginning of year	$	219	$	272
Increase in gross tax contingencies		-		219
Decrease in gross tax contingencies		-		(272	)
Gross tax contingencies as of end of year	$	219	$	219

Net Income Per Share (Tables)

12 Months Ended

Dec. 26, 2021

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 26, 2021			December 27, 2020		December 29, 2019
Numerator:
Net income	$	2,382		$	8,884	$	3,312
Less: Net (loss) income attributable to noncontrolling interests		(47	)		84		927
Net income attributable to Vital Farms, Inc. stockholders’ — basic and diluted	$	2,429		$	8,800	$	2,385
Denominator:
Weighted average common shares outstanding — basic		40,027,278			28,667,264		25,897,223
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options		3,290,615			4,142,947		1,826,084
Effect of potentially dilutive common stock warrants		—			82,993		154,832
Effect of potentially dilutive restricted stock units		3,840			21,449		—
Effect of potentially dilutive redeemable convertible preferred stock		—			—		8,192,876
Weighted average common shares outstanding — diluted		43,321,733			32,914,653		36,071,015
Net income per share attributable to Vital Farms, Inc. stockholders
Basic	$	0.06		$	0.31	$	0.09
Diluted	$	0.06		$	0.27	$	0.07

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 26, 2021

Commitments And Contingencies Disclosure [Abstract]

Summary of Future Minimum Lease Payments Under Noncancelable Operating Leases

As of December 26, 2021, future minimum lease payments under noncancelable operating leases are as follows:

2022	$	1,476
2023		1,254
2024		471
2025		338
Thereafter		115
Total	$	3,654

Nature of the Business and Basis of Presentation - Additional Information (Details)		1 Months Ended		12 Months Ended
	Jul. 22, 2020	Nov. 30, 2020 USD ($) shares	Aug. 31, 2020 USD ($) $ / shares shares	Dec. 26, 2021 shares	Dec. 27, 2020 shares	Apr. 30, 2019 $ / shares
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Forward stock split				2.46-for-1
Forward stock split conversion ratio	2.46
Share price \| $ / shares						$ 5.0087
Common stock, shares issued				40,493,969	39,444,040
Preferred stock, shares outstanding			0	0
IPO
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Shares issued			10,699,573
Share price \| $ / shares			$ 22.00
Common stock, shares issued			5,040,323
Additional common stock shares issued			5,659,250
Gross proceeds from sale of common stock \| $			$ 110,887
Shares issued upon conversion of preferred stock			8,192,876
Preferred stock, shares outstanding			0
IPO \| Maximum
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Additional common stock shares issued			1,395,596
Secondary Public Offering
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Shares issued		5,000,000
Gross proceeds from sale of common stock \| $		$ 0
Stock issuance cost \| $		$ 500,000

Summary of Significant Accounting Policies - Summary of Significant Customers Information (Details) - Customer Concentration Risk	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Net Revenue \| Customer A
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	18.00%	15.00%	35.00%
Net Revenue \| Customer B
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	14.00%	18.00%
Net Revenue \| Customer C
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	10.00%	12.00%	11.00%
Net Revenue \| Customer D
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	12.00%	13.00%	14.00%
Accounts Receivable \| Customer A
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	19.00%
Accounts Receivable \| Customer B
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage		20.00%
Accounts Receivable \| Customer D
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	13.00%	15.00%

Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 26, 2021 USD ($) Segment	Dec. 27, 2020 USD ($)	Dec. 29, 2019 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of reportable segment \| Segment	1
Number of operating segment \| Segment	1
Allowance for doubtful accounts	$ 269,000	$ 196,000	$ 304,000
Impairment of long-lived assets	0	0	0
Accrued interest or penalties on uncertain tax position	0	0
Shipping and distribution costs	24,979,000	14,904,000	10,001,000
Cost of goods sold	178,002,000	139,752,000	97,856,000
Marketing and advertising expense	$ 11,469,000	9,815,000	10,320,000
ASU 2020-04
Summary Of Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Mar. 12, 2020
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true
ASU 2016-02
Summary Of Significant Accounting Policies [Line Items]
Right-of-use asset	$ 4,000,000.0
Lease liability	4,000,000.0
Freight
Summary Of Significant Accounting Policies [Line Items]
Cost of goods sold	$ 7,623,000	$ 5,126,000	$ 3,012,000

Summary of Significant Accounting Policies - Schedule of Useful Lives of Property Plant and Equipment (Details)	12 Months Ended
	Dec. 26, 2021
Land
Summary Of Significant Accounting Policies [Line Items]
Property plant and equipment, estimated useful life	N/A
Buildings and Improvements
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 life	Lesser of lease term or 5 years

Fair Value - Schedule of Financial Assets Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands	Dec. 26, 2021	Dec. 27, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	$ 88,722	$ 93,826
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	20,101	25,469
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	68,621	68,357
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	64,452	58,630
US Corporate Bonds and US Denominated Foreign Bonds \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	64,452	58,630
Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	2,999	6,697
Commercial Paper \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	2,999	6,697
Money Market
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	20,101	25,469
Money Market \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	20,101	25,469
US Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	1,170	3,030
US Treasury Securities \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	$ 1,170	$ 3,030

Fair Value - Summary of Financial Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 26, 2021	Dec. 27, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Contingent consideration, current	$ 19	$ 109
Contingent consideration, non-current		18
Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Contingent consideration, current	19	109
Contingent consideration, non-current		18
Total liabilities measured at fair value	19	127
Recurring \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Contingent consideration, current	19	109
Contingent consideration, non-current		18
Total liabilities measured at fair value	$ 19	$ 127

Fair Value - Additional Information (Details) - USD ($)	12 Months Ended
Fair Value - Additional Information (Details) - USD ($)	Dec. 26, 2021	Dec. 27, 2020
Fair Value Disclosures [Abstract]
Fair value, liabilities, level 1 to level 2 transfers	$ 0	$ 0
Fair value, liabilities, level 2 to level 1 transfers	0	0
Fair value, liabilities, transfers into level 3	0	0
Fair value, liabilities, transfers out of level 3	0	0
Unrealized (gain) loss on fair value of contingent consideration	$ 44,000	$ (333,000)

Fair Value - Schedule of Unobservable Inputs and Valuation of Contingent Consideration (Details) - Level 3 $ in Thousands	12 Months Ended
	Dec. 26, 2021 USD ($) USD_per_Dozen Dozen	Dec. 27, 2020 USD ($) USD_per_Dozen Dozen
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Estimated dozens of eggs to be supplied \| Dozen	275,250	1,885,660
Royalty rate per dozen eggs \| USD_per_Dozen	0.07	0.07
Estimated future royalty expense \| $	$ 19	$ 132
Discount interval (in years)	6 months	1 year 4 months 24 days

Investment Securities - Summary of Investment Securities (Details) - USD ($) $ in Thousands	Dec. 26, 2021	Dec. 27, 2020
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 68,992	$ 68,398
Unrealized Losses	(371)	(41)
Fair Value	68,621	68,357
Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	2,999	6,697
Fair Value	2,999	6,697
US Corporate Bonds and US Denominated Foreign Bonds
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	64,816	58,671
Unrealized Losses	(364)	(41)
Fair Value	64,452	58,630
US Treasury Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	1,177	3,030
Unrealized Losses	(7)
Fair Value	$ 1,170	$ 3,030

Investment Securities - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Oct. 31, 2020	Dec. 26, 2021	Dec. 27, 2020
Investments Debt And Equity Securities [Abstract]
Available-for-sale debt securities purchased	$ 68,336,000	$ 51,688,000
Proceeds from the sales and maturities of available-for-sale debt securities		40,874
Realized losses on sales and maturities		1,000
Proceeds from the call redemptions of available-for-sale debt securities		10,752,000
Realized losses on call redemptions		54,000
Securities incurred unrealized losses		330,000
Securities related tax benefit		$ 80,000	$ 10,000

Investment Securities - Summary of Contractual Maturities of Investment Securities (Details) - USD ($) $ in Thousands	Dec. 26, 2021	Dec. 27, 2020
Investments Debt And Equity Securities [Abstract]
Due within one year Amortized Cost	$ 25,656
Due in 1-5 years Amortized Cost	43,336
Amortized Cost	68,992	$ 68,398
Due within one year Fair Value	25,638
Due in 1-5 years Fair Value	42,983
Total available-for-sale Fair Value	$ 68,621

Revenue Recognition - Summary of Net Revenue by Primary Product (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Disaggregation Of Revenue [Line Items]
Net revenue	$ 260,901	$ 214,280	$ 140,733
Eggs and Egg Related Products
Disaggregation Of Revenue [Line Items]
Net revenue	239,967	196,695	128,579
Butter and Butter Related Products
Disaggregation Of Revenue [Line Items]
Net revenue	$ 20,934	$ 17,585	$ 12,154

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue Recognition - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 27, 2020 USD ($)
Revenue From Contract With Customer [Abstract]
Revenue resulting from reduction of sales promotion incentive related to prior year sales	$ 624

Accounts Receivable - Additional Information (Details) - USD ($) $ in Thousands	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Receivables [Abstract]
Accounts receivable, net	$ 26,938	$ 20,934
Allowance for doubtful accounts	$ 269	$ 196	$ 304

Accounts Receivable - Summary of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020
Receivables [Abstract]
Allowance for doubtful accounts, Beginning balance	$ (196)	$ (304)
Provisions Charged to Operating Results	(184)	(217)
Account Write-off and Recoveries	111	325
Allowance for doubtful accounts, Ending balance	$ (269)	$ (196)

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 26, 2021	Dec. 27, 2020
Inventory [Line Items]
Inventories	$ 10,945	$ 12,902
Eggs and Egg Related Products
Inventory [Line Items]
Inventories	5,422	6,407
Butter and Butter Related Products
Inventory [Line Items]
Inventories	2,359	3,347
Packaging
Inventory [Line Items]
Inventories	2,166	1,997
Other
Inventory [Line Items]
Inventories	$ 998	$ 1,151

Inventories - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Inventory Disclosure [Abstract]
Laying-hen costs amortized to cost of goods sold	$ 232	$ 375	$ 484

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 26, 2021	Dec. 27, 2020
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 53,454	$ 35,920
Less: Accumulated depreciation and amortization	(8,846)	(5,802)
Property, plant and equipment, net	44,608	30,118
Land
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	525	525
Buildings and Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	14,214	14,297
Vehicles
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	695	551
Machinery and Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	15,523	12,473
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	830	973
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	503	447
Construction in Progress
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 21,164	$ 6,654

Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Property Plant And Equipment [Line Items]
Depreciation and amortization of property, plant and equipment	$ 3,540	$ 2,550	$ 1,921
Machinery and Equipment
Property Plant And Equipment [Line Items]
Capital leases included in property, plant and equipment	$ 876	$ 1,193

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 26, 2021	Dec. 27, 2020
Payables And Accruals [Abstract]
Accrued promotions and expired product credits	$ 3,599	$ 2,724
Accrued employee related costs	3,039	3,718
Accrued offering costs		123
Accrued distribution fees and freight	3,875	436
Accrued accounting and legal fees	344	238
Accrued marketing and commissions	769	739
Accrued purchases of inventory	1,197	1,088
Property, plant and equipment	1,258	502
Other	1,043	277
Accrued liabilities	$ 15,124	$ 9,845

Long-Term Debt - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Apr. 30, 2020	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019	Oct. 31, 2017
Debt Instrument [Line Items]
Interest expense		$ 52,000	$ 488,000	$ 349,000
Amortization of debt issuance costs		0	68,000	$ 9,000
Future principal payments for capital lease payments in December 2022		$ 327,000
Capital lease obligations expire		2022-08
Proceeds from Paycheck Protection Program loan			2,593,000
Repayment of Paycheck Protection Program loan			$ 2,593,000
CARES Act
Debt Instrument [Line Items]
Proceeds from Paycheck Protection Program loan	$ 2,593,000
Number of times of average monthly payroll expense as loan amount		2.5 times
Repayment of Paycheck Protection Program loan	$ 2,593,000
Revolving Line of Credit
Debt Instrument [Line Items]
Outstanding debt		$ 0
PNC Bank, National Association \| Revolving Line of Credit
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity					$ 10,000,000
Debt instrument, maturity		2024-04
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 \| Sixth Amendment \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument basis spread on variable rate		2.00%
PNC Bank, National Association \| Revolving Line of Credit \| Sixth Amendment \| Alternate Base Rate
Debt Instrument [Line Items]
Debt instrument basis spread on variable rate		1.00%
PNC Bank, National Association \| Term Loan
Debt Instrument [Line Items]
Debt instrument face amount					4,700,000
PNC Bank, National Association \| Equipment Loan
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity					$ 1,500,000
PNC Bank, National Association \| Credit Facility
Debt Instrument [Line Items]
Line of credit facility covenant terms		The Credit Facility is secured by all of the Company’s assets (other than real property and certain other property excluded pursuant to the terms of the Credit Facility) and requires the Company to comply with three financial covenants: a fixed charge coverage ratio, a leverage ratio and a minimum tangible net worth requirement. The Credit Facility also contains various covenants relating to limitations on indebtedness, acquisitions, mergers, consolidations and the sale of properties and liens.
Line of credit facility covenant compliance		As of December 26, 2021, the Company was in compliance with all covenants under the Credit Facility.
PNC Bank, National Association \| Credit Facility \| Term Loan And Equipment Loan
Debt Instrument [Line Items]
Debt instrument eliminated		2021-04

Redeemable Convertible Preferred Stock - Additional Information (Details) - $ / shares	1 Months Ended
	Aug. 31, 2020	Dec. 26, 2021
Class Of Stock [Line Items]
Preferred stock, shares outstanding	0	0
Preferred stock, authorized		10,000,000
Preferred stock, par value per share		$ 0.0001
Preferred stock, shares issued		0
IPO
Class Of Stock [Line Items]
Shares issued upon conversion of preferred stock	8,192,876
Preferred stock convertible into common stock conversion ratio	100.00%
Preferred stock, shares outstanding	0

Common Stock and Common Stock Warrant - Additional Information (Details) - USD ($)		1 Months Ended	2 Months Ended	12 Months Ended
	Jun. 09, 2020	Aug. 31, 2020	Apr. 30, 2019	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
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				40,493,969	39,444,040
Common stock, shares outstanding				40,493,969	39,440,040
Shares purchase price per share			$ 5.0087
Number of common stock shares repurchase during the period			2,852,770
Proceed from repurchase of common stock			$ 14,289,000			$ 14,289,000
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
Proceeds from exercise of warrant					$ 283,000
Treasury Stock
Class Of Stock [Line Items]
Number of common stock shares repurchase during the period						2,852,770
Retirement of treasury stock, Shares		5,494,918		5,494,918
Guarantor
Class Of Stock [Line Items]
Warrants issued to purchase of common stock shares	196,800
Warrant exercise price per share	$ 1.43
Proceeds from exercise of warrant	$ 282,000
Manna Tree Partners
Class Of Stock [Line Items]
Number of common stock shares issued and sold during the period			2,815,012
Shares purchase price per share			$ 5.3286
Proceed from issuance of common stock			$ 14,097,000
Stock issuance cost			$ 903,000

Common Stock and Common Stock Warrant - Schedule of Reserved Shares of Common Stock for Issuance (Details) - shares	Dec. 26, 2021	Dec. 27, 2020
Class Of Stock [Line Items]
Common stock for issuance	15,028,087	13,475,827
Options to Purchase Common Stock
Class Of Stock [Line Items]
Common stock for issuance	4,927,033	5,815,684
Restricted Stock Units
Class Of Stock [Line Items]
Common stock for issuance	107,867	45,000
Shares Available for Grant \| 2020 Equity Incentive Plan and 2020 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Common stock for issuance	9,993,187	7,615,143

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended			12 Months Ended
	Jan. 01, 2022	Oct. 31, 2020	Aug. 31, 2020	Jul. 31, 2020	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of shares vested					$ 2,694	$ 3,320
Total stock-based compensation expense					4,440	$ 2,509	$ 1,029
Unrecognized stock-based compensation expense					$ 11,006
Expected weighted-average period of recognition					2 years 7 months 6 days
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted					80,324	48,097
Number of fully vested RSUs granted		3,097
IPO \| Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted			45,000
IPO \| Restricted Stock Units \| Non Employee Director
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted			7,500
2020 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
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 Company’s board of directors.
2020 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation award, description					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 Vital Farms board of directors.
Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for future grants					9,993,187
Common Stock \| 2020 Equity Incentive Plan
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%
Common Stock \| 2020 Equity Incentive Plan \| Subsequent Event
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of new shares issued	1,619,758
Common Stock \| 2020 Employee Stock Purchase Plan
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%
Common Stock \| 2020 Employee Stock Purchase Plan \| Subsequent Event
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of new shares issued	404,939

Stock-Based Compensation - Summary of Assumptions Utilized to Calculate Fair Value of Stock Options Granted (Details) - $ / shares	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected stock price volatility, minimum	28.50%	29.10%	39.50%
Expected stock price volatility, maximum	29.40%	42.90%	47.00%
Risk-free interest rate, minimum	0.57%	0.34%	1.40%
Risk-free interest rate, maximum	1.36%	0.49%	2.38%
Expected dividend yield	0.00%	0.00%	0.00%
Weighted average fair value at grant date	$ 7.31	$ 6.83	$ 2.31
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	6 years	5 years 2 months 12 days	5 years 4 months 24 days
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	6 years 6 months	6 years 6 months	6 years 6 months

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Options, Beginning balance	5,815,684	5,413,064
Number of Options, Granted	565,593	985,519
Number of Options, Exercised	(1,034,929)	(66,062)
Number of Options, Cancelled	(419,315)	(516,837)
Number of Options, Ending balance	4,927,033	5,815,684	5,413,064
Number of Options, Options exercisable	2,572,316	2,751,727
Number of Options, Options vested and expected to vest	4,918,003	5,815,684
Weighted-Average Exercise Price, Beginning balance	$ 6.87	$ 3.73
Weighted-Average Exercise Price, Options Granted	24.05	22.98
Weighted-Average Exercise Price, Options Exercised	2.68	2.85
Weighted-Average Exercise Price, Options Cancelled	12.17	3.76
Weighted-Average Exercise Price, Ending balance	9.25	6.87	$ 3.73
Weighted-Average Exercise Price, Options exercisable	4.70	2.59
Weighted-Average Exercise Price, Options vested and expected to vest	$ 9.26	$ 6.87
Weighted Average Remaining Contractual Life (Years), Balance	6 years 6 months	6 years 8 months 12 days	7 years 3 months 18 days
Weighted Average Remaining Contractual Life (Years), Options exercisable	5 years 1 month 6 days	4 years 8 months 12 days
Weighted Average Remaining Contractual Life (Years), Options vested and expected to vest	6 years 6 months	6 years 8 months 12 days
Aggregate Intrinsic Value	$ 48,222	$ 112,762	$ 60,059
Aggregate Intrinsic Value, Exercised	20,343	1,022
Aggregate Intrinsic Value, Options exercisable	33,605	63,061
Aggregate Intrinsic Value, Options vested and expected to vest	$ 48,099	$ 112,762

Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of RSUs, beginning balance	45,000
Number of RSUs, Granted	80,324	48,097
Number of RSUs, Vested	(15,000)	(3,097)
Number of RSUs, forfeited	(2,457)
Number of RSUs, Ending balance	107,867	45,000
Weighted-Average Fair Price, beginning balance	$ 37.61
Weighted-Average Fair Price, Granted	23.71	$ 37.63
Weighted-Average Fair Price, Vested	37.61	37.97
Weighted-Average Fair Price, Forfeited	25.78
Weighted-Average Fair Price, ending balance	$ 27.53	$ 37.61

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Current:
Federal	$ 225	$ 587	$ 867
State	282	412	187
Deferred:
Federal	(2,164)	1,677	(88)
State	(371)	94	140
(Benefit) provision for income taxes	$ (2,028)	$ 2,770	$ 1,106

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Reconciliation of Federal Statutory Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Income Tax Disclosure [Abstract]
Provision at statutory rate of 21%	$ 74	$ 2,446	$ 929
State income taxes	(416)	300	258
Stock-based compensation	(2,846)	373
Non-deductible costs	12	211	604
Charitable deduction	(88)	(206)	(629)
Change in deferred tax asset valuation allowance	774	(138)	23
Other, net	462	(216)	(79)
(Benefit) provision for income taxes	$ (2,028)	$ 2,770	$ 1,106

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Reconciliation of Federal Statutory Income Tax Provision (Parenthetical) (Details)	12 Months Ended
	Dec. 26, 2021
Income Tax Disclosure [Abstract]
Provision at statutory rate	21.00%

Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 26, 2021	Dec. 27, 2020
Deferred tax assets:
Accrued expenses	$ 1,383	$ 1,144
Allowances and other reserves	212	80
Inventory	387	368
Net operating loss carryforwards	2,220	27
Charitable contributions	774	322
Stock-based compensation	460	205
Other	90	11
Total deferred tax assets	5,526	2,157
Less: Valuation allowance	(774)
Net deferred tax assets	4,752	2,157
Deferred tax liabilities:
Prepaid expenses	784	906
Property and equipment	3,610	3,497
Intangibles	279	291
Total deferred tax liabilities	4,673	4,694
Net deferred tax assets	$ 79
Net deferred tax liabilities		$ 2,537

Income Taxes - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 26, 2021 USD ($)
Income Taxes [Line Items]
Increase in valuation allowances period	$ 774
Federal
Income Taxes [Line Items]
Net operating loss carryforwards	9,100
State
Income Taxes [Line Items]
Net operating loss carryforwards	$ 3,900
Net operating loss carryforwards expiration year	2022

Income Taxes - Schedule of Deferred Tax Asset Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020
Income Tax Disclosure [Abstract]
Valuation allowance as of beginning of year		$ 138
Increases recorded to income tax provision	$ 774
Decreases recorded as benefit to income tax provision		$ (138)
Valuation allowance as of end of year	$ 774

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020
Income Tax Disclosure [Abstract]
Gross tax contingencies as of beginning of year	$ 219	$ 272
Increase in gross tax contingencies	0	219
Decrease in gross tax contingencies	0	(272)
Gross tax contingencies as of end of year	$ 219	$ 219

Net Income Per Share - Schedule of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Numerator:
Net income	$ 2,382	$ 8,884	$ 3,312
Less: Net (loss) income attributable to noncontrolling interests	(47)	84	927
Net income attributable to Vital Farms, Inc. common stockholders	$ 2,429	$ 8,800	$ 2,385
Denominator:
Weighted average common shares outstanding — basic	40,027,278	28,667,264	25,897,223
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive common stock warrants		82,993	154,832
Effect of potentially dilutive redeemable convertible preferred stock			8,192,876
Weighted average common shares outstanding — diluted	43,321,733	32,914,653	36,071,015
Net income per share attributable to Vital Farms, Inc. stockholders:
Basic	$ 0.06	$ 0.31	$ 0.09
Diluted	$ 0.06	$ 0.27	$ 0.07
Options to Purchase Common Stock
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock	3,290,615	4,142,947	1,826,084
Restricted Stock Units
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock	3,840	21,449

Net Income Per Share - Additional Information (Details) - shares	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	23,744	826,883

Commitments and Contingencies - Additional Information (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2019 USD ($)	Dec. 26, 2021 USD ($) ft²	Dec. 27, 2020 USD ($)	Dec. 29, 2019 USD ($)
Commitments And Contingencies [Line Items]
Rent expense		$ 583	$ 444	$ 358
Long-term supply contracts costs		$ 108,707	$ 84,537	$ 54,380
Other Income
Commitments And Contingencies [Line Items]
Gain on lawsuit settlement	$ 1,200
Austin, Texas
Commitments And Contingencies [Line Items]
Area of office space leased \| ft²		9,100
Lease expiration period		2026-04
Lease options to extend period		5 years
Base rent charges		$ 19
Webb City, Missouri
Commitments And Contingencies [Line Items]
Area of office space leased \| ft²		5,000
Base rent charges		$ 55
Lease termination agreement, date of termination		Dec. 31, 2020
Springfield, Missouri
Commitments And Contingencies [Line Items]
Area of office space leased \| ft²		10,000
Base rent charges		$ 79
Operating lease expiration date		Sep. 30, 2023
Springfield, Missouri \| Warehouse
Commitments And Contingencies [Line Items]
Area of office space leased \| ft²		92,000

Commitments and Contingencies - Summary of Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands	Dec. 26, 2021 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2022	$ 1,476
2023	1,254
2024	471
2025	338
Thereafter	115
Total	$ 3,654

Related Party Transactions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended			2 Months Ended	12 Months Ended
	Jun. 09, 2020	Aug. 31, 2020	Nov. 30, 2019	Feb. 28, 2019	Apr. 30, 2019	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
Related Party Transaction [Line Items]
Proceeds from exercise of warrant							$ 283
Promissory notes repaid		$ 800					846	$ 3,200
Interest income with promissory notes						$ 0	97
Shares purchase price per share					$ 5.0087
Number of common stock issued and sold during the period								14,097
Manna Tree Partners
Related Party Transaction [Line Items]
Number of common stock shares issued and sold during the period					2,815,012
Shares purchase price per share					$ 5.3286
Number of common stock issued and sold during the period					$ 15,000
Sandpebble Builders Preconstruction, Inc
Related Party Transaction [Line Items]
Paid to related party						$ 1,037	$ 842	$ 556
Notes Receivable \| Founder and Former Board of Directors
Related Party Transaction [Line Items]
Promissory notes issued				$ 4,000
Promissory maturity date				Aug. 07, 2022
Promissory notes repaid			$ 3,200
LIBOR \| Notes Receivable \| Founder and Former Board of Directors
Related Party Transaction [Line Items]
Promissory notes interest rate				2.00%
Guarantor
Related Party Transaction [Line Items]
Warrants issued to purchase of common stock shares	196,800
Warrant exercise price per share	$ 1.43
Proceeds from exercise of warrant	$ 282

401(K) Savings Plan - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 26, 2021	Dec. 27, 2020	Dec. 29, 2019
401(k) Saving Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions made by the company	$ 651	$ 401	$ 246

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Subsequent Events - Additional Information (Details) $ in Millions	Jan. 31, 2022 USD ($)
Subsequent Event \| Product Discontinuations
Subsequent Event [Line Items]
Expect to incur charges related to product discontinuations for inventory obsolescence and contract terminations	$ 2.1