0001564590-22-027907 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 26, 2022	Aug. 01, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 26, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-26
Entity Registrant Name	Vital Farms, Inc.
Entity Central Index Key	0001579733
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Security 12b Title	Common Stock, par value $0.0001 per share
Trading Symbol	VITL
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-39411
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0496985
Entity Address, Address Line One	3601 South Congress Avenue
Entity Address, Address Line Two	Suite C100
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78704
City Area Code	877
Local Phone Number	455-3063
Entity Common Stock, Shares Outstanding		40,680,033

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 26, 2022	Dec. 26, 2021
Current assets:
Cash and cash equivalents	$ 22,082	$ 30,966
Investment securities, available-for-sale	68,257	68,621
Accounts receivable, net	31,110	26,938
Inventories	19,100	10,945
Prepaid expenses and other current assets	2,797	3,817
Total current assets	143,346	141,287
Property, plant and equipment, net	47,887	44,608
Operating lease right-of-use assets	2,578
Goodwill	3,858	3,858
Other assets	2,511	189
Total assets	200,180	189,942
Current liabilities:
Accounts payable	25,258	22,520
Accrued liabilities	19,145	15,143
Operating lease liabilities	1,425
Finance lease liabilities	88	327
Income taxes payable	112
Total current liabilities	46,028	37,990
Operating lease liabilities, non-current	1,377
Other liabilities	210	192
Total liabilities	47,615	38,182
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common stock, $0.0001 par value per share, 310,000,000 shares authorized as of June 26, 2022 and December 26, 2021; 40,679,414 and 40,493,969 shares issued and outstanding as of June 26, 2022 and December 26, 2021, respectively	5	5
Additional paid-in capital	152,317	149,000
Retained earnings	1,571	2,746
Accumulated other comprehensive loss	(1,447)	(281)
Total stockholders’ equity attributable to Vital Farms, Inc. stockholders	152,446	151,470
Noncontrolling interests	(56)	115
Total stockholders’ equity	152,390	151,585
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity	200,180	189,942
Variable Interest Entity, Primary Beneficiary
Current liabilities:
Redeemable noncontrolling interest	$ 175	$ 175

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 26, 2022	Dec. 26, 2021
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	40,679,414	40,493,969
Common stock, shares outstanding	40,679,414	40,493,969

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2022	Jun. 27, 2021	Jun. 26, 2022	Jun. 27, 2021
Income Statement [Abstract]
Net revenue	$ 82,870	$ 60,324	$ 159,929	$ 118,869
Cost of goods sold	57,931	38,391	113,289	75,606
Gross profit	24,939	21,933	46,640	43,263
Operating expenses:
Selling, general and administrative	17,007	13,544	34,632	26,726
Shipping and distribution	7,211	5,374	15,373	10,437
Total operating expenses	24,218	18,918	50,005	37,163
Income (loss) from operations	721	3,015	(3,365)	6,100
Other income (expense), net:
Interest expense	(7)	(13)	(15)	(31)
Other income (expense), net	158	186	337	297
Total other income (expense), net	151	173	322	266
Net income (loss) before income taxes	872	3,188	(3,043)	6,366
Income tax provision (benefit)	680	(695)	(1,697)	(999)
Net income (loss)	192	3,883	(1,346)	7,365
Less: Net loss attributable to noncontrolling interests	(7)	(24)	(8)	(34)
Net income (loss) attributable to Vital Farms, Inc. common stockholders	$ 199	$ 3,907	$ (1,338)	$ 7,399
Net income (loss) per share attributable to Vital Farms, Inc. stockholders:
Basic:	$ 0.00	$ 0.10	$ (0.03)	$ 0.19
Diluted:	$ 0.00	$ 0.09	$ (0.03)	$ 0.17
Weighted average common shares outstanding:
Basic:	40,628,416	40,000,136	40,580,598	39,767,127
Diluted:	42,694,767	43,375,668	40,580,598	43,444,101

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2022	Jun. 27, 2021	Jun. 26, 2022	Jun. 27, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 192	$ 3,883	$ (1,346)	$ 7,365
Other comprehensive loss
Unrealized holding loss on available-for-sale securities, net of deferred tax benefit of $118 and $7 for the 13-weeks ended June 26, 2022 and June 27, 2021, respectively and $361 and $14 for the 26-weeks ended June 26, 2022 and June 27, 2022, respectively	(383)	(26)	(1,166)	(48)
Total comprehensive (loss) income	$ (191)	$ 3,857	$ (2,512)	$ 7,317

- 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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2022	Jun. 27, 2021	Jun. 26, 2022	Jun. 27, 2021
Statement Of Income And Comprehensive Income [Abstract]
Unrealized holding loss on available-for-sale securities, tax	$ 118	$ 7	$ 361	$ 14

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Variable Interest Entity, Primary Beneficiary	Redeemable Noncontrolling Interest Variable Interest Entity, Primary Beneficiary	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive Loss	Total Stockholders' Equity Attributable to Vital Farms, Inc. Stockholders	Noncontrolling Interests
Beginning balance at Dec. 27, 2020	$ 142,211			$ 5	$ (16,276)	$ 144,311	$ 14,039	$ (31)	$ 142,048	$ 163
Beginning balance at Dec. 27, 2020			$ 175
Beginning balance, shares at Dec. 27, 2020				44,938,958	(5,494,918)
Exercise of stock options	525					525			525
Exercise of stock options, Shares				300,266
Stock-based compensation expense	853					853			853
Net loss attributable to non- controlling interests - stockholders	(11)									(11)
Other comprehensive loss, net	(22)							(22)	(22)
Net income (loss) attributable to Vital Farms, Inc. stockholders	3,491						3,491		3,491
Ending balance at Mar. 28, 2021	147,047			$ 5	$ (16,276)	145,689	17,530	(53)	146,895	152
Ending balance at Mar. 28, 2021			175
Ending balance, shares at Mar. 28, 2021				45,239,224	(5,494,918)
Beginning balance at Dec. 27, 2020	142,211			$ 5	$ (16,276)	144,311	14,039	(31)	142,048	163
Beginning balance at Dec. 27, 2020			175
Beginning balance, shares at Dec. 27, 2020				44,938,958	(5,494,918)
Net loss attributable to non- controlling interests - stockholders	(34)
Net income (loss) attributable to Vital Farms, Inc. stockholders	7,399
Ending balance at Jun. 27, 2021	153,023			$ 5	$ (16,276)	147,808	21,437	(79)	152,895	128
Ending balance at Jun. 27, 2021			175
Ending balance, shares at Jun. 27, 2021				45,648,146	(5,494,918)
Beginning balance at Mar. 28, 2021	147,047			$ 5	$ (16,276)	145,689	17,530	(53)	146,895	152
Beginning balance at Mar. 28, 2021			175
Beginning balance, shares at Mar. 28, 2021				45,239,224	(5,494,918)
Exercise of stock options	978					978			978
Exercise of stock options, Shares				393,922
Vested restricted stock, Shares				15,000
Stock-based compensation expense	1,141					1,141			1,141
Net loss attributable to non- controlling interests - stockholders	(24)									(24)
Other comprehensive loss, net	(26)							(26)	(26)
Net income (loss) attributable to Vital Farms, Inc. stockholders	3,907						3,907		3,907
Ending balance at Jun. 27, 2021	153,023			$ 5	$ (16,276)	147,808	21,437	(79)	152,895	128
Ending balance at Jun. 27, 2021			175
Ending balance, shares at Jun. 27, 2021				45,648,146	(5,494,918)
Beginning balance at Dec. 26, 2021	151,585			$ 5		149,000	2,746	(281)	151,470	115
Beginning balance at Dec. 26, 2021		$ 175	175
Beginning balance, shares at Dec. 26, 2021				40,493,969
Exercise of stock options	254					254			254
Exercise of stock options, Shares				102,328
Stock-based compensation expense	1,296					1,296			1,296
Net loss attributable to non- controlling interests - stockholders	(2)						162		162	(164)
Other comprehensive loss, net	(783)							(783)	(783)
Net income (loss) attributable to Vital Farms, Inc. stockholders	(1,536)						(1,536)		(1,536)
Ending balance at Mar. 27, 2022	150,814			$ 5		150,550	1,372	(1,064)	150,863	(49)
Ending balance at Mar. 27, 2022			175
Ending balance, shares at Mar. 27, 2022				40,596,297
Beginning balance at Dec. 26, 2021	$ 151,585			$ 5		149,000	2,746	(281)	151,470	115
Beginning balance at Dec. 26, 2021		175	175
Beginning balance, shares at Dec. 26, 2021				40,493,969
Exercise of stock options, Shares	130,894
Net loss attributable to non- controlling interests - stockholders	$ (8)
Net income (loss) attributable to Vital Farms, Inc. stockholders	(1,338)
Ending balance at Jun. 26, 2022	152,390			$ 5		152,317	1,571	(1,447)	152,446	(56)
Ending balance at Jun. 26, 2022		175	175
Ending balance, shares at Jun. 26, 2022				40,679,414
Beginning balance at Mar. 27, 2022	150,814			$ 5		150,550	1,372	(1,064)	150,863	(49)
Beginning balance at Mar. 27, 2022			175
Beginning balance, shares at Mar. 27, 2022				40,596,297
Exercise of stock options	143					143			143
Exercise of stock options, Shares				35,573
Vesting of restricted stock units	(9)					(9)			(9)
Vested restricted stock, Shares				47,544
Stock-based compensation expense	1,633					1,633			1,633
Net loss attributable to non- controlling interests - stockholders	(7)									(7)
Other comprehensive loss, net	(383)							(383)	(383)
Net income (loss) attributable to Vital Farms, Inc. stockholders	199						199		199
Ending balance at Jun. 26, 2022	$ 152,390			$ 5		$ 152,317	$ 1,571	$ (1,447)	$ 152,446	$ (56)
Ending balance at Jun. 26, 2022		$ 175	$ 175
Ending balance, shares at Jun. 26, 2022				40,679,414

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 26, 2022	Jun. 27, 2021
Cash flows from operating activities:
Net (loss) income	$ (1,346)	$ 7,365
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	2,287	1,620
Amortization of right-of-use assets	829
Amortization of available-for-sale debt securities	541	626
Stock-based compensation expense	2,929	1,994
Deferred taxes	(1,927)	(1,184)
Other	(260)	125
Changes in operating assets and liabilities:
Accounts receivable	(4,186)	2,864
Inventories	(7,784)	(1,052)
Prepaid expenses and other current assets	892	2,052
Deposits and other assets	38	96
Income taxes payable	112	185
Accounts payable	2,738	361
Accrued liabilities	2,867	614
Operating lease liabilities	(735)
Net cash (used in) provided by operating activities	(3,005)	15,666
Cash flows from investing activities:
Purchases of property, plant and equipment	(4,417)	(7,811)
Purchases of available-for-sale debt securities	(29,944)	(27,493)
Sales of available-for sale debt securities		1,436
Maturities and call redemptions of available-for-sale debt securities	28,334	24,812
Proceeds from the sale of property, plant and equipment	50
Net cash used in investing activities	(5,977)	(9,056)
Cash flows from financing activities:
Payment of contingent consideration	(38)	(75)
Principal payments under finance lease obligations	(252)	(233)
Proceeds from exercise of stock options	388	1,503
Net cash provided by financing activities	98	1,195
Net (decrease) increase in cash and cash equivalents	(8,884)	7,805
Cash and cash equivalents at beginning of the period	30,966	29,544
Cash and cash equivalents at end of the period	22,082	37,349
Supplemental disclosure of cash flow information:
Cash paid for interest	15	32
Cash paid for income taxes	68	4
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property, plant and equipment included in accounts payable and accrued liabilities	$ 1,398	$ 51

Nature of the Business and Basis of Presentation

6 Months Ended

Jun. 26, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Nature of the Business and Basis of Presentation

Note 1. Nature of the Business and Basis of Presentation

Vital Farms, Inc. (the “Company”, “we”, “us” or “our”) 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 and RedHill Farms, primarily to retail and foodservice channels in the United States.

The accompanying unaudited condensed consolidated financial statements as of June 26, 2022 and for the 13-week and 26-week periods ended June 26, 2022 and June 27, 2021 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto on our Annual Report on Form 10-K for the fiscal year ended December 26, 2021 (“Annual Report on Form 10-K”).

In the opinion of management, the included disclosures are adequate, and the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for a fair presentation of our consolidated financial position as of June 26, 2022, consolidated results of operations for the 13-week and 26-week periods ended June 26, 2022 and June 27, 2021, and consolidated cash flows for the 26-week periods ended June 26, 2022 and June 27, 2021. Such adjustments are of a normal and recurring nature and certain reclassifications of previously reported amounts have been made to conform to the current year presentation. The condensed consolidated results of operations for the 13-week and 26-week periods ended June 26, 2022 are not necessarily indicative of the consolidated results of operations that may be expected for the fiscal year ending December 25, 2022.

Fiscal Year: The Company’s fiscal year ends on the last Sunday in December and contains either 52 or 53 weeks. In a 52-week fiscal year, each of the Company’s fiscal quarters consist of 13 weeks. The additional week in a 53-week fiscal year is added to the fourth quarter, making such quarter consist of 14 weeks. Therefore, the financial results of certain 53-week fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. The quarters ended June 26, 2022 and June 27, 2021 both contain operating results for 13 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 effectiveness 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.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 26, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

The significant accounting policies and estimates used in preparation of the unaudited condensed consolidated financial statements are described in the Company’s audited consolidated financial statements as of and for the fiscal year ended December 26, 2021, and the notes thereto, which are included in our Annual Report on Form 10-K. Other than the adoption of the new accounting pronouncements as further described below, there have been no material changes to the Company’s significant accounting policies during the 26-week period ended June 26, 2022.

Recently Adopted Accounting Pronouncements: The new accounting pronouncements recently adopted by the Company are described in the Company’s audited consolidated financial statements as of and for the fiscal year ended December 26, 2021, and the notes thereto, which are included in our Annual Report on Form 10-K. Except as described below, there have been no new accounting pronouncements adopted by the Company during the 26-week period ended June 26, 2022.

In February 2016, the Financial Accounting Standards Board (“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 are classified as either finance or operating, with classification affecting the pattern of expense recognition in the unaudited condensed 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 adopted Topic 842 as of the beginning of the period of adoption, December 27, 2021, and has not applied the new standard to comparative periods presented.

To reduce the burden of adoption and ongoing compliance with Topic 842, a number of practical expedients and policy elections are available under the new guidance. The Company elected the "package of practical expedients" permitted under the transition guidance, which among other things, did not require reassessment of whether contracts entered into prior to adoption are or contain leases, and allowed carryforward of the historical lease classification for existing leases. The Company has not elected to adopt the “hindsight” practical expedient, and therefore will measure the right-of-use (“ROU”) assets and lease liabilities using the remaining portion of the lease term at adoption on December 27, 2021.

The Company made an accounting policy election under Topic 842 not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less. For all other leases, the Company recognizes ROU assets and lease liabilities based on the present value of lease payments over the lease term at the commencement date of the lease (or December 27, 2021 for existing leases upon the adoption of Topic 842). The Company’s recognized ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date, which are reduced by any lease incentives.

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

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

As an emerging growth company, the Company uses its lease-specific collateralized incremental borrowing rate to determine the present value of lease payments at lease commencement or upon the adoption of Topic 842. The adoption of the new lease standard had an immaterial impact on our consolidated net earnings and consolidated cash flows and did not result in a cumulative-effect adjustment to the opening balance of retained earnings. The adoption of Topic 842 as of December 27, 2021, resulted in the recording of right-of-use assets and lease liabilities of $4.1 million and $3.8 million, respectively.

Recently Issued Accounting Pronouncements Not Yet Adopted: 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.

The Company expects to adopt Topic 326 on December 26, 2022. Although the Company is currently evaluating the impact of its pending adoption of Topic 326, the Company does not expect it to have a material impact 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 fiscal years beginning after December 15, 2021, and interim periods within fiscal 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.

Investment Securities

6 Months Ended

Jun. 26, 2022

Investments Debt And Equity Securities [Abstract]

Investment Securities

Note 3. Investment Securities

The following table summarizes the Company’s available-for-sale investment securities as of June 26, 2022:

	Amortized Cost		Unrealized Losses			Fair Value
U.S. Corporate Bonds and U.S. Dollar Denominated Foreign Bonds	$	67,685	$	(1,866	)	$	65,819
Commercial Paper		1,293		—			1,293
U.S. Treasury		1,176		(31	)		1,145
Total	$	70,154	$	(1,897	)	$	68,257

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

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

The securities incurred unrealized losses of $501 and $1,527, and related tax benefits of $118 and $361 for the 13-week and 26-weeks ended June 26, 2022. The unrealized losses in our U.S. corporate bond portfolio consist of losses on 97 diversified issuances with credit ratings ranging from BBB to AAA. There are no individual bonds with unrealized losses exceeding $82 and only four issuances have been in a loss position greater than 12 months with aggregate unrealized losses of $190.

The decline in fair value has resulted primarily from rising interest rates over the last 12 months and the Company does not believe there has been any significant decline in the creditworthiness of the issuers. The Company also does not believe it is likely that the bonds will be called early given the current interest rate environment and it does not have current liquidity needs that would necessitate a sale of the investments prior to maturity. Therefore, the Company has not recorded an allowance for credit losses on the investment securities as of June 26, 2022.

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 June 26, 2022 are as follows:

	Amortized Cost		Fair Value
Due within one year	$	17,070	$	16,826
Due in 1-5 years		53,084		51,431
Total available-for-sale	$	70,154	$	68,257

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

	Fair Value Measurements as of June 26, 2022, Using:
	Level 1		Level 2		Level 3		Total
Assets:
U.S. Corporate Bonds and U.S. Dollar Denominated Foreign Bonds	$	—	$	65,819	$	—	$	65,819
Commercial Paper		—		1,293		—		1,293
Money Market		12,002		—		—		12,002
U.S. Treasury		—		1,145		—		1,145
Total assets measured at fair value	$	12,002	$	68,257	$	—	$	80,259

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

Revenue Recognition

6 Months Ended

Jun. 26, 2022

Revenue From Contract With Customer [Abstract]

Revenue Recognition

Note 4. Revenue Recognition

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

	13-Weeks Ended				26-Weeks Ended
	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Net Revenue:
Egg and egg-related products	$	78,107	$	56,339	$	150,228	$	110,768
Butter and butter-related products		4,763		3,984		9,701		8,101
Net Revenue	$	82,870	$	60,324	$	159,929	$	118,869

Net revenue is primarily generated from the sale of eggs and butter. The Company’s product offerings include shell eggs, hard-boiled eggs, liquid whole eggs, butter (including stick butter and spreadable tub butter) and ghee. The Company’s previous convenient breakfast product line (including egg bites and egg-based breakfast bars) was discontinued in 2022.

As of June 26, 2022 and December 26, 2021, the Company had customers that individually represented 10% or more of the Company’s accounts receivable, net, and during the 13-week and 26-week periods ended June 26, 2022 and June 27, 2021, the Company had customers that individually exceeded 10% or more of the Company’s net revenue. The percentage of net revenue from these significant customers during the 13-week and 26-week periods ended June 26, 2022 and June 27, 2021 is as follows:

	Net Revenue for the 13-Weeks Ended June 26, 2022	Net Revenue for the 13-Weeks Ended June 27, 2021	Net Revenue for the 26-Weeks Ended June 26, 2022	Net Revenue for the 26-Weeks Ended June 27, 2021
Customer A	32%	*	33%	*
Customer B	*	25%	*	25%
Customer C	10%	10%	*	11%
Customer D	13%	11%	12%	11%

*Revenue was less than 10%.

The increase in net revenue for Customer A for the 13-week and 26-week periods ended June 26, 2022 compared to the 13- week and 26-week periods ended June 27, 2021 is due to a shift in the Company’s distribution channels away from Customer B during the year ended December 26, 2021. The slight increase in net revenue for Customer D for the 13-week and 26-week periods ended June 26, 2022 compared to the 13-week and 26-week periods ended June 27, 2021 is due to new distribution gains in the current period.

The percentage of accounts receivable, net due from these significant customers as of June 26, 2022 and December 26, 2021 is as follows:

	Accounts Receivable, Net as of June 26, 2022	Accounts Receivable, Net as of December 26, 2021
Customer A	23%	19%
Customer B	*	*
Customer C	*	*
Customer D	13%	13%

*Accounts receivable was less than 10%.

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Accounts Receivable

6 Months Ended

Jun. 26, 2022

Receivables [Abstract]

Accounts Receivable

Note 5. Accounts Receivable

Accounts receivable, net, were $31,110 and $26,938 as of June 26, 2022 and December 26, 2021, respectively.

As of June 26, 2022 and December 26, 2021, the Company recorded an allowance for doubtful accounts of $282 and $269, respectively. Changes in the allowance for doubtful accounts were as follows:

	Allowance for doubtful accounts
As of December 26, 2021	$	(269	)
Provisions Charged to Operating Results		(68	)
Account Write-off and Recoveries		—
As of March 27, 2022	$	(337	)
Provisions Released to Operating Results		24
Account Write-off and Recoveries		31
As of June 26, 2022	$	(282	)

Inventories

6 Months Ended

Jun. 26, 2022

Inventory Disclosure [Abstract]

Inventories

Note 6. Inventories

Inventory consisted of the following as of the periods presented:

	June 26, 2022			December 26, 2021
Eggs and egg-related products	$	8,795		$	5,850
Butter and butter-related products		4,182			2,359
Packaging		3,829			2,166
Pullets		1,708			267
Other		642			731
Reserve for inventory obsolescence		(56	)		(428	)
	$	19,100		$	10,945

On a periodic basis, the Company compares the amount of inventory on hand with its latest forecasted requirements to determine whether provisions for excess or obsolete inventory reserves are required.

Property, Plant and Equipment

6 Months Ended

Jun. 26, 2022

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

Note 7. Property, Plant and Equipment

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

	June 26, 2022			December 26, 2021
Land	$	552		$	525
Land improvements		835			—
Buildings and improvements		28,407			14,214
Vehicles		689			695
Machinery and equipment		22,832			15,523
Leasehold improvements		918			830
Furniture and fixtures		678			503
Construction in progress		2,379			21,164
		57,290			53,454
Less: Accumulated depreciation and amortization		(9,403	)		(8,846	)
Property, plant and equipment, net	$	47,887		$	44,608

As of June 26, 2022 and December 26, 2021, machinery and equipment leased under finance leases and included in property, plant and equipment, net in the unaudited condensed consolidated balance sheets was $745 and $876, respectively.

During the 13-week periods ended June 26, 2022 and June 27, 2021, depreciation and amortization of property, plant and equipment was approximately $1,339 and $835, respectively. During the 26-week periods ended June 26, 2022 and June 27, 2021, depreciation and amortization of property, plant and equipment was approximately $2,287 and $1,620, respectively.

During the 13-week period ended June 26, 2022, $21.9 million of construction in progress, related to our expansion of Egg Central Station, was put into service across various property, plant and equipment categories.

Leases

6 Months Ended

Jun. 26, 2022

Leases [Abstract]

Leases

Note 8. Leases

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

The Company leases office facilities, warehouses and office equipment under lease agreements with initial terms approximating one to five years. In addition, substantially all the Company’s long-term supply contracts with farms contain components that meet the definition of embedded leases within the scope of Topic 842, 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. The initial term of these supply agreements ranges from one to seven years. 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 long-term 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 cost of eggs, which includes costs associated with the eggs and the corresponding cost of embedded lease rentals from the same arrangement, into inventory. These costs are expensed to cost of goods sold when the associated eggs are sold to customers and are also reported as part of our variable lease cost. For the 13-week and 26-week periods ended June 26, 2022, these costs totaled $32.1 and $62.3 million, respectively.

Our office lease for our corporate headquarters facility in Austin, Texas includes an option to renew, generally at our sole discretion, with renewal terms that can extend the lease term up to five years. In addition, certain leases contain termination options, where the rights to terminate are held by the Company, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise that option. As of June 26, 2022, it is not reasonably certain that the Company will exercise the right to extend its office lease and therefore, the Company has not included the extended term in the calculation of its ROU assets or liabilities. The Company’s leases do not contain any material restrictive covenants or residual value guarantees.

Operating lease cost is recognized on a straight-line basis over the lease term and is classified within cost of goods sold and selling, general and administrative cost in the unaudited condensed consolidated statement of operations for the 13-week and 26-week periods ended June 26, 2022.

Finance lease cost is recognized as amortization expense for the ROU assets and interest expense associated with the finance lease liabilities. Amortization expense associated with our finance leases during the 13-week and 26-week periods ended June 26, 2022 was $79 and $157, respectively, and is recorded within cost of goods sold and selling, general and administrative costs in the unaudited condensed consolidated statement of operations.

The components of lease cost for the 13-week period and 26-week period ended June 26, 2022 are below:

	13-Weeks Ended		26-Weeks Ended
	June 26, 2022		June 26, 2022
Operating lease cost	$	361	$	722
Finance lease cost - amortization of right-of-use assets		79		157
Finance lease cost - interest on lease liabilities		2		5
Short-term lease cost		11		14
Variable lease cost		32,814		63,415
Total lease cost	$	33,267	$	64,313

Supplemental cash flow information related to leases is as follows:

Cash paid for amounts included in measurement of lease liabilities:

	13-Weeks Ended		26-Weeks Ended
	June 26, 2022		June 26, 2022
Operating cash outflows - payments on operating leases	$	368	$	735
Operating cash outflows - interest payments on finance leases		2		5
Financing cash outflows - principal payments on finance leases		121		247

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

	As of June 26, 2022
Operating leases	$	—
Finance leases		26

Supplemental balance sheet information related to leases is as follows:

	As of June 26, 2022
Operating Leases
Operating lease right-of-use assets	$	2,578

Operating lease liabilities		1,425
Operating lease liabilities, non-current		1,377
Total operating lease liabilities	$	2,802
Finance Leases
Property, plant and equipment, net	$	745
Finance lease liabilities		88
Other liabilities		19
Total finance leases	$	107

	As of June 26, 2022
	Operating Leases			Finance Leases
Weighted-average remaining lease term (years)		2.48			1.16
Weighted-average discount rate		3.28	%		4.44	%

Future undiscounted cash flows are as follows:

	As of June 26, 2022
	Operating Leases			Finance Leases
Remainder of 2022	$	742		$	85
2023		1,254			6
2024		471			6
2025		338			6
2026		115			6
Thereafter		—			—
Total lease payments		2,920			109
Less imputed interest		(118	)		(2	)
Total present value of lease liabilities	$	2,802		$	107

Accrued Liabilities

6 Months Ended

Jun. 26, 2022

Payables And Accruals [Abstract]

Accrued Liabilities

Note 9. Accrued Liabilities

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

	June 26, 2022		December 26, 2021
Accrued promotions and customer deductions	$	5,883	$	3,599
Accrued distribution fees and freight		4,204		3,875
Accrued employee related costs		4,011		3,039
Accrued purchases of inventory		934		1,197
Accrued marketing and broker commissions		1,138		769
Accrued property, plant and equipment		1,398		1,258
Accrued contract termination costs		70		—
Other		1,507		1,406
Accrued liabilities	$	19,145	$	15,143

Product Exit Costs

6 Months Ended

Jun. 26, 2022

Restructuring And Related Activities [Abstract]

Product Exit Costs

Note 10. Product Exit Costs

During the 26-week period ended June 26, 2022, the Company made the determination to exit its convenient breakfast product category due to ongoing losses incurred and a shift in Company focus to product categories that are core to its operations. Charges incurred in connection with these product exits are expected to be paid or settled by the end of the 13-week period ending September 25, 2022. Due to the relatively short term over which the charges will ultimately be settled, the Company believes the actual charges as shown below approximate fair value.

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

		For the 26-weeks period ended June 26, 2022
Description	Statement of Operations Classification	Charges Incurred		Amounts Paid or Settled			Ending Liability Balance
Contract terminations	Selling, general and administrative	$	1,126		(1,056	)	$	70
Inventory obsolescence	Cost of goods sold		749		(723	)		26
Customer allowances	Net revenue		146		(111	)		35
Asset write-downs	Cost of goods sold		119		—			119
Co-manufacturer charges	Cost of goods sold		135		(135	)		—
Asset disposals	Selling, general and administrative		66		(66	)		—
Total		$	2,341	$	(2,091	)	$	250

Common Stock

6 Months Ended

Jun. 26, 2022

Equity [Abstract]

Common Stock

Note 11. Common Stock

Common Stock: As of June 26, 2022, the Company’s amended and restated certificate of incorporation authorized the Company to issue 310,000,000 shares of common stock, par value $0.0001 per share, of which 40,679,414 shares were issued and outstanding.

The voting, dividend and liquidation rights of the holders of the Company’s common stock are subject to and qualified by the rights, powers and preferences of the holders of the preferred stock. 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. 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:

	June 26, 2022		December 26, 2021
Options to purchase common stock		4,712,898		4,927,033
Restricted stock units		513,226		107,867
Shares available for grant under the 2020 Equity Incentive Plan and 2020 Employee Stock Purchase Plan		11,503,717		9,993,187
Total		16,729,841		15,028,087

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

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+ Details

Stock-Based Compensation

6 Months Ended

Jun. 26, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

Note 12. Stock-Based Compensation

During the 13-week periods ended June 26, 2022 and June 27, 2021, the Company recognized stock-based compensation expense of $1,633 and $1,141, respectively. The Company measures compensation expense for all stock-based awards based on the estimated fair values on the date of the grant. The Company records stock-based compensation expense in selling, general and administrative expenses and cost of goods sold. During the 13-week periods ended June 26, 2022 and June 27, 2021, stock-based compensation expense of $62 and $38, respectively, was recognized in cost of goods sold.

During the 26-week periods ended June 26, 2022 and June 27, 2021, the Company recognized stock-based compensation expense of $2,929 and $1,994, respectively. During the 26-week periods ended June 26, 2022 and June 27, 2021 $91 and $60 of stock-based compensation expense was recognized in cost of goods sold, respectively.

As of June 26, 2022, total unrecognized stock-based compensation expense related to unvested stock options and the Company’s restricted stock units (“RSU”) was $13,469, which is expected to be recognized over a weighted-average period of 2.36 years.

Stock Option Activity

The following table summarizes the Company’s stock option activity since December 26, 2021:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding as of December 26, 2021		4,927,033		$	9.25			$	50,561,622
Granted		132,654		$	12.89
Exercised		(130,894	)	$	3.04			$	1,304,528
Cancelled		(215,895	)	$	11.69			$	1,026,027
Outstanding as of June 26, 2022		4,712,898		$	9.41		6.1	$	17,381,476
Options exercisable as of June 26, 2022		2,661,079		$	5.81		4.8	$	13,663,597
Options vested and expected to vest as of June 26, 2022		4,708,857		$	9.42		6.1	$	17,361,548

The fair value of shares vested during the 13-week periods ended June 26, 2022 and June 27, 2021 was $1,251 and $608, respectively. The fair value of shares vested during the 26-week periods ended June 26, 2022 and June 27, 2021 was $2,209 and $912, respectively.

Restricted Stock Unit Activity

The following table summarizes the RSU activity since December 26, 2021:

	Number of RSUs			Weighted- Average Exercise Price
Unvested as of December 26, 2021		107,867		$	27.53
Granted		491,698			12.37
Vested		(51,350	)		27.93
Forfeited		(34,989	)		15.47
Unvested as of June 26, 2022		513,226		$	13.79

2020 Equity Incentive Plan: In July 2020, the Company’s board of directors adopted its 2020 Equity Incentive Plan (“2020 Incentive Plan”), which was subsequently approved by its stockholders and became effective on July 30, 2020. Initially, the maximum number 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. As of June 26, 2022, 9,811,345 shares were available for future grants of the Company’s common stock, which includes 1,619,758 shares of stock that were automatically added to the available reserve on January 1, 2022. Awards issued under the 2020 Incentive Plan generally have a three-year ratable vesting period beginning on the date of grant.

Employee Stock Purchase Plan: In July 2020, the Company’s board of directors adopted the 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 eligible employees of the Company or, as designated by the Company’s 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 Company’s board of directors. As of June 26, 2022, 1,692,372 shares of the Company’s common stock were available for future issuance, which includes 404,939 shares of common stock that were automatically added to the available reserve on January 1, 2022. In November 2021, the Company’s board of directors authorized an offering period commencing on March 1, 2022 and ending on May 15, 2022. The Company’s board of directors has subsequently authorized additional six-month offering periods, with the most recent beginning on May 16, 2022.

Income Taxes

6 Months Ended

Jun. 26, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 13. Income Taxes

The Company’s effective tax rate for the 13-week periods ended June 26, 2022 and June 27, 2021 was approximately 78% and (22)%, respectively. The Company’s effective tax rate for the 26-week periods ended June 26, 2022 and June 27, 2021 was approximately 55% and (16)%, respectively. In the 13-week and 26-week periods ended June 26, 2022, the estimated annual effective tax rate was driven by permanent differences related to incentive stock options and the impact of compensation deduction limitations under Internal Revenue Code section 162(m). Tax expense has increased during these periods as a result of the impact of amended federal tax returns and increasing pre-tax income during the 13-weeks ended June 26, 2022.

For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions, and other items.

- 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
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+ Details

Net Income Per Share

6 Months Ended

Jun. 26, 2022

Earnings Per Share [Abstract]

Net Income Per Share

Note 14. Net Income Per Share

Basic and diluted net income per share attributable to Vital Farms, Inc. common stockholders were calculated as follows:

	13-Weeks Ended
	June 26, 2022			June 27, 2021
Numerator:
Net income	$	192		$	3,883
Less: Net loss attributable to noncontrolling interests		(7	)		(24	)
Net income attributable to Vital Farms, Inc. stockholders’ — basic and diluted	$	199		$	3,907
Denominator:
Weighted average common shares outstanding — basic		40,628,416			40,000,136
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options		2,048,653			3,375,052
Effect of potentially dilutive restricted stock units		17,698			480
Effect of potentially dilutive common stock warrants		—			—
Effect of potentially dilutive redeemable convertible preferred stock		—			—
Weighted average common shares outstanding — diluted		42,694,767			43,375,668
Net income per share attributable to Vital Farms, Inc. stockholders
Basic	$	0.00		$	0.10
Diluted	$	0.00		$	0.09

For the 13-week periods ended June 26, 2022 and June 27, 2021, options to purchase 109,494 and 196,640 shares of common stock were excluded from the computation of diluted net income per share attributable to Vital Farms, Inc. common stockholders because including them would have been antidilutive.

	26-Weeks Ended
	June 26, 2022			June 27, 2021
Numerator:
Net (loss) income	$	(1,346	)	$	7,365
Less: Net loss attributable to noncontrolling interests		(8	)		(34	)
Net (loss) income attributable to Vital Farms, Inc. stockholders’ — basic and diluted	$	(1,338	)	$	7,399
Denominator:
Weighted average common shares outstanding — basic		40,580,598			39,767,127
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options		—			3,676,494
Effect of potentially dilutive restricted stock units		—			480
Effect of potentially dilutive common stock warrants		—			—
Effect of potentially dilutive redeemable convertible preferred stock		—			—
Weighted average common shares outstanding — diluted		40,580,598			43,444,101
Net (loss) income per share attributable to Vital Farms, Inc. stockholders
Basic	$	(0.03	)	$	0.19
Diluted	$	(0.03	)	$	0.17

For the 26-week periods ended June 26, 2022 and June 27, 2021, options to purchase 61,707 and 112,644 shares of common stock were excluded from the computation of diluted net income per share attributable to Vital Farms, Inc. common stockholders because including them would have been antidilutive.

Commitments and Contingencies

6 Months Ended

Jun. 26, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 15. Commitments and Contingencies

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

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 June 26, 2022, 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.

Related Party Transactions

6 Months Ended

Jun. 26, 2022

Related Party Transactions

Note 16. Related Party Transactions

Ovabrite, Inc.: 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 has been 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 26-weeks ended June 26, 2022.

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 $250 and $326 during the 13-week periods ended June 26, 2022 and June 27, 2021, respectively and $371 and $625 during the 26-week period ended June 26, 2022 and June 27, 2021, respectively. Amounts paid to Sandpebble are included in property, plant and equipment, net, accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheets.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 26, 2022

Accounting Policies [Abstract]

Recently Adopted Accounting Pronouncements

Investment Securities (Tables)

6 Months Ended

Jun. 26, 2022

Investments Debt And Equity Securities [Abstract]

Summary of Available-for-sale Investment Securities

The following table summarizes the Company’s available-for-sale investment securities as of June 26, 2022:

	Amortized Cost		Unrealized Losses			Fair Value
U.S. Corporate Bonds and U.S. Dollar Denominated Foreign Bonds	$	67,685	$	(1,866	)	$	65,819
Commercial Paper		1,293		—			1,293
U.S. Treasury		1,176		(31	)		1,145
Total	$	70,154	$	(1,897	)	$	68,257

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

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

Summary of Contractual Maturities of Investment Securities

Contractual maturities of investment securities as of June 26, 2022 are as follows:

	Amortized Cost		Fair Value
Due within one year	$	17,070	$	16,826
Due in 1-5 years		53,084		51,431
Total available-for-sale	$	70,154	$	68,257

Schedule of Financial Assets Measured at Fair Value

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

	Fair Value Measurements as of June 26, 2022, Using:
	Level 1		Level 2		Level 3		Total
Assets:
U.S. Corporate Bonds and U.S. Dollar Denominated Foreign Bonds	$	—	$	65,819	$	—	$	65,819
Commercial Paper		—		1,293		—		1,293
Money Market		12,002		—		—		12,002
U.S. Treasury		—		1,145		—		1,145
Total assets measured at fair value	$	12,002	$	68,257	$	—	$	80,259

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

Revenue Recognition (Tables)

6 Months Ended

Jun. 26, 2022

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:

	13-Weeks Ended				26-Weeks Ended
	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Net Revenue:
Egg and egg-related products	$	78,107	$	56,339	$	150,228	$	110,768
Butter and butter-related products		4,763		3,984		9,701		8,101
Net Revenue	$	82,870	$	60,324	$	159,929	$	118,869

Summary of Percentage of Net Revenue and Accounts Receivable, Net Due from Significant Customers

The percentage of net revenue from these significant customers during the 13-week and 26-week periods ended June 26, 2022 and June 27, 2021 is as follows:

	Net Revenue for the 13-Weeks Ended June 26, 2022	Net Revenue for the 13-Weeks Ended June 27, 2021	Net Revenue for the 26-Weeks Ended June 26, 2022	Net Revenue for the 26-Weeks Ended June 27, 2021
Customer A	32%	*	33%	*
Customer B	*	25%	*	25%
Customer C	10%	10%	*	11%
Customer D	13%	11%	12%	11%

*Revenue was less than 10%.

The percentage of accounts receivable, net due from these significant customers as of June 26, 2022 and December 26, 2021 is as follows:

	Accounts Receivable, Net as of June 26, 2022	Accounts Receivable, Net as of December 26, 2021
Customer A	23%	19%
Customer B	*	*
Customer C	*	*
Customer D	13%	13%

*Accounts receivable was less than 10%.

Accounts Receivable (Tables)

6 Months Ended

Jun. 26, 2022

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 26, 2021	$	(269	)
Provisions Charged to Operating Results		(68	)
Account Write-off and Recoveries		—
As of March 27, 2022	$	(337	)
Provisions Released to Operating Results		24
Account Write-off and Recoveries		31
As of June 26, 2022	$	(282	)

Inventories (Tables)

6 Months Ended

Jun. 26, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consisted of the following as of the periods presented:

	June 26, 2022			December 26, 2021
Eggs and egg-related products	$	8,795		$	5,850
Butter and butter-related products		4,182			2,359
Packaging		3,829			2,166
Pullets		1,708			267
Other		642			731
Reserve for inventory obsolescence		(56	)		(428	)
	$	19,100		$	10,945

Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 26, 2022

Property Plant And Equipment [Abstract]

Schedule of Property, Plant and Equipment

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

	June 26, 2022			December 26, 2021
Land	$	552		$	525
Land improvements		835			—
Buildings and improvements		28,407			14,214
Vehicles		689			695
Machinery and equipment		22,832			15,523
Leasehold improvements		918			830
Furniture and fixtures		678			503
Construction in progress		2,379			21,164
		57,290			53,454
Less: Accumulated depreciation and amortization		(9,403	)		(8,846	)
Property, plant and equipment, net	$	47,887		$	44,608

Leases (Tables)

6 Months Ended

Jun. 26, 2022

Leases [Abstract]

Schedule of Components of Lease Cost

The components of lease cost for the 13-week period and 26-week period ended June 26, 2022 are below:

	13-Weeks Ended		26-Weeks Ended
	June 26, 2022		June 26, 2022
Operating lease cost	$	361	$	722
Finance lease cost - amortization of right-of-use assets		79		157
Finance lease cost - interest on lease liabilities		2		5
Short-term lease cost		11		14
Variable lease cost		32,814		63,415
Total lease cost	$	33,267	$	64,313

Summary of Cash Flow Information related to Leases

Supplemental cash flow information related to leases is as follows:

Cash paid for amounts included in measurement of lease liabilities:

	13-Weeks Ended		26-Weeks Ended
	June 26, 2022		June 26, 2022
Operating cash outflows - payments on operating leases	$	368	$	735
Operating cash outflows - interest payments on finance leases		2		5
Financing cash outflows - principal payments on finance leases		121		247

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

	As of June 26, 2022
Operating leases	$	—
Finance leases		26

Summary of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases is as follows:

	As of June 26, 2022
Operating Leases
Operating lease right-of-use assets	$	2,578

Operating lease liabilities		1,425
Operating lease liabilities, non-current		1,377
Total operating lease liabilities	$	2,802
Finance Leases
Property, plant and equipment, net	$	745
Finance lease liabilities		88
Other liabilities		19
Total finance leases	$	107

	As of June 26, 2022
	Operating Leases			Finance Leases
Weighted-average remaining lease term (years)		2.48			1.16
Weighted-average discount rate		3.28	%		4.44	%

Summary of Operating and Finance Leases Future Undiscounted Cash Flows

Future undiscounted cash flows are as follows:

	As of June 26, 2022
	Operating Leases			Finance Leases
Remainder of 2022	$	742		$	85
2023		1,254			6
2024		471			6
2025		338			6
2026		115			6
Thereafter		—			—
Total lease payments		2,920			109
Less imputed interest		(118	)		(2	)
Total present value of lease liabilities	$	2,802		$	107

Accrued Liabilities (Tables)

6 Months Ended

Jun. 26, 2022

Payables And Accruals [Abstract]

Schedule of Accrued Liabilities

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

	June 26, 2022		December 26, 2021
Accrued promotions and customer deductions	$	5,883	$	3,599
Accrued distribution fees and freight		4,204		3,875
Accrued employee related costs		4,011		3,039
Accrued purchases of inventory		934		1,197
Accrued marketing and broker commissions		1,138		769
Accrued property, plant and equipment		1,398		1,258
Accrued contract termination costs		70		—
Other		1,507		1,406
Accrued liabilities	$	19,145	$	15,143

Product Exit Costs (Tables)

6 Months Ended

Jun. 26, 2022

Restructuring And Related Activities [Abstract]

Summary of Activity Related to Exit of Breakfast Products

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

		For the 26-weeks period ended June 26, 2022
Description	Statement of Operations Classification	Charges Incurred		Amounts Paid or Settled			Ending Liability Balance
Contract terminations	Selling, general and administrative	$	1,126		(1,056	)	$	70
Inventory obsolescence	Cost of goods sold		749		(723	)		26
Customer allowances	Net revenue		146		(111	)		35
Asset write-downs	Cost of goods sold		119		—			119
Co-manufacturer charges	Cost of goods sold		135		(135	)		—
Asset disposals	Selling, general and administrative		66		(66	)		—
Total		$	2,341	$	(2,091	)	$	250

Common Stock (Tables)

6 Months Ended

Jun. 26, 2022

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:

	June 26, 2022		December 26, 2021
Options to purchase common stock		4,712,898		4,927,033
Restricted stock units		513,226		107,867
Shares available for grant under the 2020 Equity Incentive Plan and 2020 Employee Stock Purchase Plan		11,503,717		9,993,187
Total		16,729,841		15,028,087

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 26, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity since December 26, 2021:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding as of December 26, 2021		4,927,033		$	9.25			$	50,561,622
Granted		132,654		$	12.89
Exercised		(130,894	)	$	3.04			$	1,304,528
Cancelled		(215,895	)	$	11.69			$	1,026,027
Outstanding as of June 26, 2022		4,712,898		$	9.41		6.1	$	17,381,476
Options exercisable as of June 26, 2022		2,661,079		$	5.81		4.8	$	13,663,597
Options vested and expected to vest as of June 26, 2022		4,708,857		$	9.42		6.1	$	17,361,548

Summary of Restricted Stock Unit Activity

The following table summarizes the RSU activity since December 26, 2021:

	Number of RSUs			Weighted- Average Exercise Price
Unvested as of December 26, 2021		107,867		$	27.53
Granted		491,698			12.37
Vested		(51,350	)		27.93
Forfeited		(34,989	)		15.47
Unvested as of June 26, 2022		513,226		$	13.79

Net Income Per Share (Tables)

6 Months Ended

Jun. 26, 2022

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income Per Share

Basic and diluted net income per share attributable to Vital Farms, Inc. common stockholders were calculated as follows:

	13-Weeks Ended
	June 26, 2022			June 27, 2021
Numerator:
Net income	$	192		$	3,883
Less: Net loss attributable to noncontrolling interests		(7	)		(24	)
Net income attributable to Vital Farms, Inc. stockholders’ — basic and diluted	$	199		$	3,907
Denominator:
Weighted average common shares outstanding — basic		40,628,416			40,000,136
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options		2,048,653			3,375,052
Effect of potentially dilutive restricted stock units		17,698			480
Effect of potentially dilutive common stock warrants		—			—
Effect of potentially dilutive redeemable convertible preferred stock		—			—
Weighted average common shares outstanding — diluted		42,694,767			43,375,668
Net income per share attributable to Vital Farms, Inc. stockholders
Basic	$	0.00		$	0.10
Diluted	$	0.00		$	0.09

	26-Weeks Ended
	June 26, 2022			June 27, 2021
Numerator:
Net (loss) income	$	(1,346	)	$	7,365
Less: Net loss attributable to noncontrolling interests		(8	)		(34	)
Net (loss) income attributable to Vital Farms, Inc. stockholders’ — basic and diluted	$	(1,338	)	$	7,399
Denominator:
Weighted average common shares outstanding — basic		40,580,598			39,767,127
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options		—			3,676,494
Effect of potentially dilutive restricted stock units		—			480
Effect of potentially dilutive common stock warrants		—			—
Effect of potentially dilutive redeemable convertible preferred stock		—			—
Weighted average common shares outstanding — diluted		40,580,598			43,444,101
Net (loss) income per share attributable to Vital Farms, Inc. stockholders
Basic	$	(0.03	)	$	0.19
Diluted	$	(0.03	)	$	0.17

Nature of the Business and Basis of Presentation - Additional Information (Details)	6 Months Ended
	Jun. 26, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Date of incorporation	Jun. 06, 2013

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Jun. 26, 2022	Dec. 27, 2021
Summary of Significant Accounting Policies [Line Items]
Right-of-use asset	$ 2,578
Lease liability	$ 2,802
ASU 2016-02
Summary of Significant Accounting Policies [Line Items]
Right-of-use asset		$ 4,100
Lease liability		$ 3,800

Investment Securities - Summary of Available-for-sale Investment Securities (Details) - USD ($) $ in Thousands	Jun. 26, 2022	Dec. 26, 2021
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 70,154	$ 68,992
Unrealized Losses	(1,897)	(371)
Investment securities, available-for-sale	68,257	68,621
Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	1,293	2,999
Investment securities, available-for-sale	1,293	2,999
U.S. Corporate Bonds and U.S. Dollar Denominated Foreign Bonds
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	67,685	64,816
Unrealized Losses	(1,866)	(364)
Investment securities, available-for-sale	65,819	64,452
U.S. Treasury Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	1,176	1,177
Unrealized Losses	(31)	(7)
Investment securities, available-for-sale	$ 1,145	$ 1,170

Investment Securities - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 26, 2022 USD ($) Security Position	Jun. 27, 2021 USD ($)	Jun. 26, 2022 USD ($) Security Position	Jun. 27, 2021 USD ($)	Dec. 26, 2021 USD ($)
Schedule Of Available For Sale Securities [Line Items]
Securities incurred unrealized losses	$ 501,000		$ 1,527,000
Securities related tax benefit	118,000	$ 7,000	361,000	$ 14,000
Unrealized Losses	$ 1,897,000		$ 1,897,000		$ 371,000
Unrealized Loss Position greater than 12 months \| Position	4		4
Aggregate unrealized losses	$ 190,000		$ 190,000
Allowance for credit losses on the investment securities	0		0
Bonds \| Minimum
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses	$ 82,000		$ 82,000
U.S. Corporate Bonds and U.S. Dollar Denominated Foreign Bonds
Schedule Of Available For Sale Securities [Line Items]
Number of Securities Issuances for unrealized losses \| Security	97		97
Unrealized Losses	$ 1,866,000		$ 1,866,000		$ 364,000

Investment Securities - Summary of Contractual Maturities of Investment Securities (Details) - USD ($) $ in Thousands	Jun. 26, 2022	Dec. 26, 2021
Investments Debt And Equity Securities [Abstract]
Due within one year Amortized Cost	$ 17,070
Due in 1-5 years Amortized Cost	53,084
Amortized Cost	70,154	$ 68,992
Due within one year Fair Value	16,826
Due in 1-5 years Fair Value	51,431
Total available-for-sale Fair Value	$ 68,257

Investment Securities - Schedule of Financial Assets Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands	Jun. 26, 2022	Dec. 26, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	$ 80,259	$ 88,722
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	12,002	20,101
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	68,257	68,621
U.S. Corporate Bonds and U.S. Dollar Denominated Foreign Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	65,819	64,452
U.S. Corporate Bonds and U.S. Dollar Denominated Foreign Bonds \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	65,819	64,452
Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	1,293	2,999
Commercial Paper \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	1,293	2,999
Money Market
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	12,002	20,101
Money Market \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	12,002	20,101
U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	1,145	1,170
U.S. Treasury Securities \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	$ 1,145	$ 1,170

Revenue Recognition - Summary of Net Revenue by Primary Product (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2022	Jun. 27, 2021	Jun. 26, 2022	Jun. 27, 2021
Disaggregation Of Revenue [Line Items]
Net revenue	$ 82,870	$ 60,324	$ 159,929	$ 118,869
Egg and Egg Related Products
Disaggregation Of Revenue [Line Items]
Net revenue	78,107	56,339	150,228	110,768
Butter and Butter Related Products
Disaggregation Of Revenue [Line Items]
Net revenue	$ 4,763	$ 3,984	$ 9,701	$ 8,101

- 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
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-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
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue Recognition - Summary of Percentage of Net Revenue from Significant Customers (Details) - Customer Concentration Risk - Net Revenue	3 Months Ended		6 Months Ended
	Jun. 26, 2022	Jun. 27, 2021	Jun. 26, 2022	Jun. 27, 2021
Customer A
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	32.00%		33.00%
Customer B
Disaggregation Of Revenue [Line Items]
Concentration risk percentage		25.00%		25.00%
Customer C
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	10.00%	10.00%		11.00%
Customer D
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	13.00%	11.00%	12.00%	11.00%

Revenue Recognition - Summary of Percentage of Accounts Receivable, Net Due from Significant Customers (Details) - Customer Concentration Risk - Accounts Receivable	6 Months Ended	12 Months Ended
	Jun. 26, 2022	Dec. 26, 2021
Customer A
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	23.00%	19.00%
Customer D
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	13.00%	13.00%

Accounts Receivable - Additional Information (Details) - USD ($) $ in Thousands	Jun. 26, 2022	Mar. 27, 2022	Dec. 26, 2021
Receivables [Abstract]
Accounts receivable, net	$ 31,110		$ 26,938
Allowance for doubtful accounts	$ 282	$ 337	$ 269

Accounts Receivable - Summary of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 26, 2022	Mar. 27, 2022
Receivables [Abstract]
Allowance for doubtful accounts, Beginning balance	$ (337)	$ (269)
Provisions Charged or Released to Operating Results	24	(68)
Account Write-off and Recoveries	31
Allowance for doubtful accounts, Ending balance	$ (282)	$ (337)

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 26, 2022	Dec. 26, 2021
Inventory [Line Items]
Reserve for inventory obsolescence	$ (56)	$ (428)
Inventories	19,100	10,945
Eggs and Egg Related Products
Inventory [Line Items]
Inventories gross	8,795	5,850
Butter and Butter Related Products
Inventory [Line Items]
Inventories gross	4,182	2,359
Packaging
Inventory [Line Items]
Inventories gross	3,829	2,166
Pullets
Inventory [Line Items]
Inventories gross	1,708	267
Other
Inventory [Line Items]
Inventories gross	$ 642	$ 731

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 26, 2022	Dec. 26, 2021
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 57,290	$ 53,454
Less: Accumulated depreciation and amortization	(9,403)	(8,846)
Property, plant and equipment, net	47,887	44,608
Land
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	552	525
Land improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	835
Buildings and Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	28,407	14,214
Vehicles
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	689	695
Machinery and Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	22,832	15,523
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	918	830
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	678	503
Construction in Progress
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 2,379	$ 21,164

Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2022	Jun. 27, 2021	Jun. 26, 2022	Jun. 27, 2021	Dec. 26, 2021
Property Plant And Equipment [Line Items]
Depreciation and amortization of property, plant and equipment	$ 1,339	$ 835	$ 2,287	$ 1,620
Machinery and Equipment
Property Plant And Equipment [Line Items]
Finance leases included in property, plant and equipment	745		745		$ 876
Egg Central Station
Property Plant And Equipment [Line Items]
Construction in progress	$ 21,900		$ 21,900

Leases - Additional Information (Details) $ in Thousands	3 Months Ended	6 Months Ended
Leases - Additional Information (Details) $ in Thousands	Jun. 26, 2022 USD ($)	Jun. 26, 2022 USD ($)
Lessee Lease Description [Line Items]
Variable lease cost	$ 32,100	$ 62,300
Option to extend		Our office lease for our corporate headquarters facility in Austin, Texas includes an option to renew, generally at our sole discretion, with renewal terms that can extend the lease term up to five years.
Renewal term	5 years	5 years
Option to terminate		In addition, certain leases contain termination options, where the rights to terminate are held by the Company, the lessor, or both parties.
Finance lease amortization expense	$ 79	$ 157
Minimum
Lessee Lease Description [Line Items]
Initial term of lease contract	1 year	1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Initial term of lease contract	5 years	5 years

Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 26, 2022	Jun. 26, 2022
Leases [Abstract]
Operating lease cost	$ 361	$ 722
Finance lease amortization expense	79	157
Finance lease cost - interest on lease liabilities	2	5
Short-term lease cost	11	14
Variable lease cost	32,814	63,415
Total lease cost	$ 33,267	$ 64,313

Leases - Summary of Cash Flow Information related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 26, 2022	Jun. 26, 2022
Leases [Abstract]
Operating cash outflows - payments on operating leases	$ 368	$ 735
Operating cash outflows - interest payments on finance leases	2	5
Financing cash outflows - principal payments on finance leases	$ 121	$ 247

Leases - Summary of Right-of-Use Assets (Details) $ in Thousands	6 Months Ended
	Jun. 26, 2022 USD ($)
Leases [Abstract]
Finance leases	$ 26

Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Jun. 26, 2022	Dec. 26, 2021
Leases [Abstract]
Operating lease right-of-use assets	$ 2,578
Operating lease liabilities	1,425
Operating lease liabilities, non-current	1,377
Total operating lease liabilities	2,802
Property, plant and equipment, net	745
Finance lease liabilities	88	$ 327
Other liabilities	19
Total finance leases	$ 107
Weighted-average remaining lease term (years)	2 years 5 months 23 days
Weighted-average discount rate	3.28%
Weighted-average remaining lease term (years)	1 year 1 month 28 days
Weighted-average discount rate	4.44%

Leases - Summary of Operating and Finance Leases Future Undiscounted Cash Flows (Details) $ in Thousands	Jun. 26, 2022 USD ($)
Leases [Abstract]
Operating leases Remainder of 2022	$ 742
Operating leases 2023	1,254
Operating leases 2024	471
Operating leases 2025	338
Operating leases 2026	115
Total lease payments	2,920
Less imputed interest	(118)
Total present value of lease liabilities	2,802
Finance leases Remainder of 2022	85
Finance leases 2023	6
Finance leases 2024	6
Finance leases 2025	6
Finance leases 2026	6
Total lease payments	109
Less imputed interest	(2)
Total present value of lease liabilities	$ 107

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 26, 2022	Dec. 26, 2021
Payables And Accruals [Abstract]
Accrued promotions and customer deductions	$ 5,883	$ 3,599
Accrued distribution fees and freight	4,204	3,875
Accrued employee related costs	4,011	3,039
Accrued purchases of inventory	934	1,197
Accrued marketing and broker commissions	1,138	769
Accrued property, plant and equipment	1,398	1,258
Accrued contract termination costs	70
Other	1,507	1,406
Accrued liabilities	$ 19,145	$ 15,143

Product Exit Costs - Summary of Activity Related to Exit of Breakfast Products (Details) $ in Thousands	6 Months Ended
	Jun. 26, 2022 USD ($)
Restructuring Cost And Reserve [Line Items]
Charges Incurred	$ 2,341
Amounts Paid or Settled	(2,091)
Ending Liability Balance	250
Net Revenue \| Customer Allowances
Restructuring Cost And Reserve [Line Items]
Charges Incurred	146
Amounts Paid or Settled	(111)
Ending Liability Balance	35
Cost of Goods Sold \| Inventory Obsolescence
Restructuring Cost And Reserve [Line Items]
Charges Incurred	749
Amounts Paid or Settled	(723)
Ending Liability Balance	26
Cost of Goods Sold \| Asset Write-downs
Restructuring Cost And Reserve [Line Items]
Charges Incurred	119
Ending Liability Balance	119
Cost of Goods Sold \| Co-manufacturer Charges
Restructuring Cost And Reserve [Line Items]
Charges Incurred	135
Amounts Paid or Settled	(135)
Selling, General and Administrative \| Asset Disposals
Restructuring Cost And Reserve [Line Items]
Charges Incurred	66
Amounts Paid or Settled	(66)
Selling, General and Administrative \| Contract Terminations
Restructuring Cost And Reserve [Line Items]
Charges Incurred	1,126
Amounts Paid or Settled	(1,056)
Ending Liability Balance	$ 70

Common Stock - Additional Information (Details) - USD ($)	1 Months Ended	6 Months Ended
	Aug. 31, 2021	Jun. 26, 2022	Dec. 26, 2021
Class Of Stock [Line Items]
Common stock, shares authorized		310,000,000	310,000,000
Common stock, shares issued		40,679,414	40,493,969
Common stock, shares outstanding		40,679,414	40,493,969
Common stock, par value		$ 0.0001	$ 0.0001
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
Treasury Stock
Class Of Stock [Line Items]
Retirement of common stock held in treasury	5,494,918

Common Stock - Schedule of Reserved Shares of Common Stock for Issuance (Details) - shares	Jun. 26, 2022	Dec. 26, 2021
Class Of Stock [Line Items]
Common stock for issuance	16,729,841	15,028,087
Options to Purchase Common Stock
Class Of Stock [Line Items]
Common stock for issuance	4,712,898	4,927,033
Restricted Stock Units
Class Of Stock [Line Items]
Common stock for issuance	513,226	107,867
Shares Available for Grant \| 2020 Equity Incentive Plan and 2020 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Common stock for issuance	11,503,717	9,993,187

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 01, 2022	Jul. 31, 2020	Jun. 26, 2022	Jun. 27, 2021	Jun. 26, 2022	Jun. 27, 2021	Dec. 26, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense			$ 1,633	$ 1,141	$ 2,929	$ 1,994
Unrecognized stock-based compensation expense			13,469		$ 13,469
Expected weighted-average period of recognition					2 years 4 months 9 days
Fair value of shares vested			$ 1,251	608	$ 2,209	912
Common stock for issuance			16,729,841		16,729,841		15,028,087
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 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 Equity Incentive Plan \| Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum number of shares issuable		8,595,871
Percentage of outstanding common stock		4.00%
Number of shares available for future grants			9,811,345		9,811,345
Number of new shares issued	1,619,758
2020 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation award, description					. The 2020 ESPP authorizes the initial issuance of up to 900,000 shares of the Company’s common stock to eligible employees of the Company or, as designated by the Company’s 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 Company’s board of directors. As of June 26, 2022, 1,692,372 shares of
Common stock for issuance			1,692,372		1,692,372
2020 Employee Stock Purchase Plan \| Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum number of shares issuable		900,000
Percentage of outstanding common stock		1.00%
Number of new shares issued	404,939
Cost of Goods Sold
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense			$ 62	$ 38	$ 91	$ 60

Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 26, 2022 USD ($) $ / shares shares	Dec. 26, 2021 USD ($)
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Options, Beginning balance \| shares	4,927,033
Number of Options, Granted \| shares	132,654
Number of Options, Exercised \| shares	(130,894)
Number of Options, Cancelled \| shares	(215,895)
Number of Options, Ending balance \| shares	4,712,898
Number of Options, Options exercisable as of March 27, 2022 \| shares	2,661,079
Number of Options, Options vested and expected to vest as of March 27, 2022 \| shares	4,708,857
Weighted-Average Exercise Price, Beginning balance \| $ / shares	$ 9.25
Weighted-Average Exercise Price, Options Granted \| $ / shares	12.89
Weighted-Average Exercise Price, Options Exercised \| $ / shares	3.04
Weighted-Average Exercise Price, Options Cancelled \| $ / shares	11.69
Weighted-Average Exercise Price, Ending balance \| $ / shares	9.41
Weighted-Average Exercise Price, Options exercisable as of March 27,2022 \| $ / shares	5.81
Weighted-Average Exercise Price, Options vested and expected to vest as of March27, 2022 \| $ / shares	$ 9.42
Weighted Average Remaining Contractual Life (Years), Balance	6 years 1 month 6 days
Weighted Average Remaining Contractual Life (Years), Options exercisable as of March 27, 2022	4 years 9 months 18 days
Weighted Average Remaining Contractual Life (Years), Options vested and expected to vest as of March 27, 2022	6 years 1 month 6 days
Aggregate Intrinsic Value \| $	$ 17,381,476	$ 50,561,622
Aggregate Intrinsic Value, Exercised \| $	1,304,528
Aggregate Intrinsic Value, Cancelled \| $	1,026,027
Aggregate Intrinsic Value, Options exercisable as of March 27, 2022 \| $	13,663,597
Aggregate Intrinsic Value, Options vested and expected to vest as of March 27, 2022 \| $	$ 17,361,548

Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units	6 Months Ended
	Jun. 26, 2022 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of RSUs, Beginning balance \| shares	107,867
Number of RSUs, Granted \| shares	491,698
Number of RSUs, Vested \| shares	(51,350)
Number of RSUs, Forfeited \| shares	(34,989)
Number of RSUs, Ending balance \| shares	513,226
Weighted-Average Exercise Price, Beginning balance \| $ / shares	$ 27.53
Weighted-Average Exercise Price, Granted \| $ / shares	12.37
Weighted-Average Exercise Price, Vested \| $ / shares	27.93
Weighted-Average Exercise Price, Forfeited \| $ / shares	15.47
Weighted-Average Exercise Price, Ending balance \| $ / shares	$ 13.79

Income Taxes - Additional Information (Details)	3 Months Ended		6 Months Ended
Income Taxes - Additional Information (Details)	Jun. 26, 2022	Jun. 27, 2021	Jun. 26, 2022	Jun. 27, 2021
Income Tax Disclosure [Abstract]
Effective tax rate	78.00%	(22.00%)	55.00%	(16.00%)

Net Income Per Share - Schedule of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 26, 2022	Mar. 27, 2022	Jun. 27, 2021	Mar. 28, 2021	Jun. 26, 2022	Jun. 27, 2021
Numerator:
Net (loss) income	$ 192		$ 3,883		$ (1,346)	$ 7,365
Less: Net loss attributable to noncontrolling interests	(7)	$ (2)	(24)	$ (11)	(8)	(34)
Net income (loss) attributable to Vital Farms, Inc. common stockholders	$ 199	$ (1,536)	$ 3,907	$ 3,491	$ (1,338)	$ 7,399
Denominator:
Weighted average common shares outstanding — basic	40,628,416		40,000,136		40,580,598	39,767,127
Weighted average effect of potentially dilutive securities:
Weighted average common shares outstanding — diluted	42,694,767		43,375,668		40,580,598	43,444,101
Net income (loss) per share attributable to Vital Farms, Inc. stockholders:
Basic	$ 0.00		$ 0.10		$ (0.03)	$ 0.19
Diluted	$ 0.00		$ 0.09		$ (0.03)	$ 0.17
Options to Purchase Common Stock
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock	2,048,653		3,375,052			3,676,494
Restricted Stock Units
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock	17,698		480			480

Net Income Per Share - Additional Information (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 26, 2022	Jun. 27, 2021	Jun. 26, 2022	Jun. 27, 2021
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	109,494	196,640	61,707	112,644

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2022	Jun. 27, 2021	Jun. 26, 2022	Jun. 27, 2021
Sandpebble Builders Preconstruction, Inc
Related Party Transaction [Line Items]
Paid to related party	$ 250	$ 326	$ 371	$ 625