0000950170-23-037588 | 10-Q | XBRL Viewer

Schedule of Accumulated Other Comprehensive Income

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


		Amounts Reclassified from AOCI
		13-Week Period Ended
AOCI Component	Statement of Operations Classification	June 25, 2023			June 26, 2022
Losses on available-for-sale securities	Other expense, net	$	95		$	20
	Total before tax		95			20
	Tax benefit		(26	)		(5	)
	Net of tax	$	69		$	15


		Amounts Reclassified from AOCI
		26-Week Period Ended
AOCI Component	Statement of Operations Classification	June 25, 2023			June 26, 2022
Losses on available-for-sale securities	Other expense, net	$	129		$	70
	Total before tax		129			70
	Tax benefit		(32	)		(17	)
	Net of tax	$	97		$	53

Schedule of Component of Other Comprehensive Income

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


	13-Weeks Ended
	June 25, 2023							June 26, 2022
	Before Tax		Tax			After Tax		Before Tax			Tax			After Tax
Available-for-sale debt securities:
Unrealized net holding gain (loss)	$	128	$	(35	)	$	93	$	(521	)	$	123		$	(398	)
Amounts reclassified for realized losses to earnings		95		(26	)		69		20			(5	)		15
Total other comprehensive income (loss)	$	223	$	(61	)	$	162	$	(501	)	$	118		$	(383	)


	26-Weeks Ended
	June 25, 2023							June 26, 2022
	Before Tax		Tax			After Tax		Before Tax			Tax			After Tax
Available-for-sale debt securities:
Unrealized net holding gain (loss)	$	645	$	(159	)	$	486	$	(1,597	)	$	378		$	(1,219	)
Amounts reclassified for realized losses to earnings		129		(32	)		97		70			(17	)		53
Total other comprehensive income (loss)	$	774	$	(191	)	$	583	$	(1,527	)	$	361		$	(1,166	)

Long-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022	Oct. 31, 2017
Revolving Line of Credit
Debt Instrument [Line Items]
Proceeds from borrowing under revolving line of credit			$ 7,500,000	$ 0
Repayment of revolving line of credit			7,500,000	0
Outstanding Debt	$ 0		0
Interest expense	0	$ 0	7,000	$ 0
PNC Bank, National Association \| Revolving Line of Credit
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity					$ 10,000,000.0
PNC Bank, National Association \| Revolving Line of Credit \| Sixth Amendment
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity	$ 20,000,000.0		$ 20,000,000.0
PNC Bank, National Association \| Revolving Line of Credit \| Tenth Amendment \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument [Line Items]
Debt instrument basis spread on variable rate			2.00%
PNC Bank, National Association \| Revolving Line of Credit \| Tenth Amendment \| Alternate Base Rate
Debt Instrument [Line Items]
Debt instrument basis spread on variable rate			1.00%
PNC Bank, National Association \| Term Loan
Debt Instrument [Line Items]
Debt instrument face amount					4,700,000
PNC Bank, National Association \| Equipment Loan
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity					$ 1,500,000
PNC Bank, National Association \| Credit Facility
Debt Instrument [Line Items]
Line of credit facility covenant terms			The Credit Facility is secured by all of the Company’s assets (other than real property and certain other property excluded pursuant to the terms of the Credit Facility) and requires the Company to maintain three financial covenants: a fixed charge coverage ratio, a leverage ratio and a minimum tangible net worth requirement. The Credit Facility also contains various covenants relating to limitations on indebtedness, acquisitions, mergers, consolidations and the sale of properties and liens.
Line of credit facility covenant compliance			As of June 25, 2023, the Company was in compliance with all covenants under the Credit Facility.
PNC Bank, National Association \| Credit Facility \| Eleventh Amendment
Debt Instrument [Line Items]
Maturity of long term debt			Apr. 02, 2025
PNC Bank, National Association \| Credit Facility \| Term Loan And Equipment Loan
Debt Instrument [Line Items]
Debt instrument eliminated			2021-04

Related Party Transactions - Additional Information (Details) - Sandpebble Builders Preconstruction, Inc - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Related Party Transaction [Line Items]
Expense paid to related party	$ 139	$ 250	$ 255	$ 371
Amounts owed to related party	$ 1,126	$ 1,086	$ 1,126	$ 1,086

Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 25, 2022	Jun. 25, 2023	Jun. 26, 2022
Property Plant And Equipment [Line Items]
Depreciation and amortization of property, plant and equipment	$ 1,850	$ 1,339	$ 3,543	$ 2,287

Revenue Recognition (Tables)

6 Months Ended

Jun. 25, 2023

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 25, 2023		June 26, 2022		June 25, 2023		June 26, 2022
Net Revenue:
Egg and egg-related products	$	101,785	$	78,107	$	214,575	$	150,228
Butter and butter-related products		4,660		4,763		11,041		9,701
Net Revenue	$	106,445	$	82,870	$	225,616	$	159,929

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

The percentage of net revenue from significant customers during the 13-week and 26-week periods ended June 25, 2023 and June 26, 2022 is as follows:


	Net Revenue for the 13-Weeks Ended June 25, 2023	Net Revenue for the 13-Weeks Ended June 26, 2022	Net Revenue for the 26-Weeks Ended June 25, 2023	Net Revenue for the 26-Weeks Ended June 26, 2022
Customer A	25%	32%	25%	33%
Customer B	*	10%	*	*
Customer C	*	13%	*	12%
* Revenue was less than 10%

The percentage of accounts receivable, net due from significant customers as of June 25, 2023 and December 25, 2022 is as follows:


	Accounts Receivable, Net as of June 25, 2023	Accounts Receivable, Net as of December 25, 2022
Customer A	20%	23%
Customer C	13%	12%
Customer D	*	13%
* Accounts receivable was less than 10%

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 01, 2023	Jul. 31, 2020	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022	Dec. 25, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of shares vested			$ 257	$ 1,251	$ 1,272	$ 2,209
Common stock for issuance			18,221,435		18,221,435		16,643,168
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense			$ 6,345		$ 6,345
Expected weighted-average period of recognition					1 year 11 months 12 days
Stock options - vest year					3 years
Stock options - date of grant and expire					10 years
Common stock for issuance			4,808,010		4,808,010		4,634,205
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense			$ 7,721		$ 7,721
RSU of shares vested			$ 1,258	$ 1,209	$ 2,913	$ 1,497
Expected weighted-average period of recognition					2 years 1 month 24 days
Common stock for issuance			622,599		622,599		505,504
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options - vest year					3 years
2020 Equity Incentive Plan \| Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum number of shares issuable		8,595,871
Percentage of outstanding common stock		4.00%
Share-based compensation award, description					Initially, the maximum number of 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.
Number of shares available for future grants			10,693,299		10,693,299
Number of new shares issued	1,629,884
2020 Employee Stock Purchase Plan \| Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum number of shares issuable		900,000
Percentage of outstanding common stock		1.00%
Share-based compensation award, description					. The 2020 ESPP authorizes the initial issuance of up to 900,000 shares of the Company’s common stock to 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 25, 2023, 2,097,527 shares of
Number of new shares issued	407,471
Common stock for issuance			2,097,527		2,097,527

Accrued Liabilities (Tables)

6 Months Ended

Jun. 25, 2023

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

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


	June 25, 2023		December 25, 2022
Accrued employee related costs	$	6,108	$	7,453
Accrued promotions and customer deductions		4,903		4,414
Accrued distribution fees and freight		4,212		2,351
Accrued marketing and broker commissions		3,992		1,598
Accrued property, plant and equipment		1,214		153
Accrued professional fees		1,089		761
Accrued purchases of inventory		933		1,349
Accrued derivative premiums		1,483		—
Other		1,233		398
Accrued liabilities	$	25,167	$	18,477

Stock-Based Compensation -Summary of Recognized Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 1,446	$ 1,633	$ 3,687	$ 2,929
Cost of Goods Sold
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	80	62	133	91
Selling, General and Administrative
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 1,366	$ 1,571	$ 3,554	$ 2,838

Property, Plant and Equipment

6 Months Ended

Jun. 25, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 9. Property, Plant and Equipment

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


	June 25, 2023			December 25, 2022
Land	$	552		$	552
Land improvements		835			835
Buildings and improvements		30,067			29,667
Vehicles		1,080			894
Machinery and equipment		37,487			34,978
Leasehold improvements		919			919
Furniture and fixtures		712			685
Construction in progress		3,569			3,312
		75,221			71,842
Less: Accumulated depreciation and amortization		(15,881	)		(12,687	)
Property, plant and equipment, net	$	59,340		$	59,155

During the 13-week periods ended June 25, 2023 and June 26, 2022, depreciation and amortization of property, plant and equipment was approximately $1,850 and $1,339, respectively. During the 26-week periods ended June 25, 2023 and June 26, 2022, depreciation and amortization of property, plant and equipment was approximately $3,543 and $2,287, respectively.

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 25, 2023	Dec. 25, 2022
Inventory [Line Items]
Reserve for inventory obsolescence	$ (269)	$ (98)
Inventories	42,105	26,849
Eggs and Egg Related Products
Inventory [Line Items]
Inventory gross	27,336	13,675
Butter and Butter Related Products
Inventory [Line Items]
Inventory gross	5,653	5,718
Packaging
Inventory [Line Items]
Inventory gross	7,474	5,452
Pullets
Inventory [Line Items]
Inventory gross	401	981
Other
Inventory [Line Items]
Inventory gross	$ 1,510	$ 1,121

Stock-Based Compensation

6 Months Ended

Jun. 25, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 15. Stock-Based Compensation

The Company measures compensation expense for all stock-based awards based on the estimated fair values on the date of the grant. Stock options generally vest ratably over three years from the date of grant and expire 10 years from the date of grant. Restricted stock awards generally vest ratably over three years from the date of grant and contain no other service or performance conditions. The Company’s policy is to recognize stock-based compensation expense on a straight-line basis over the requisite service or vesting period. Forfeitures for stock options and restricted stock awards are recognized as they occur.

The Company recognized stock-based compensation expense in the condensed consolidated statements of operations for the periods presented:


	13-Weeks Ended				26-Weeks Ended
	June 25, 2023		June 26, 2022		June 25, 2023		June 26, 2022
Cost of goods sold	$	80	$	62	$	133	$	91
Selling, general and administrative expense		1,366		1,571		3,554		2,838
Total	$	1,446	$	1,633	$	3,687	$	2,929

Stock Option Activity

The following table summarizes the Company’s stock option activity since December 25, 2022:


	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding as of December 25, 2022		4,634,205		$	9.35			$	38,522
Granted		512,102		$	15.05
Exercised		(307,500	)	$	0.63			$	4,451
Cancelled/Forfeited		(30,797	)	$	19.13			$	61
Outstanding as of June 25, 2023		4,808,010		$	10.45		5.9	$	26,876
Options exercisable as of June 25, 2023		3,036,485		$	8.00		4.8	$	22,445
Options vested and expected to vest as of June 25, 2023		4,808,006		$	10.45		5.9	$	26,876

The fair value of stock options vested during the 13-week periods ended June 25, 2023 and June 26, 2022 was $257 and $1,251, respectively. The fair value of stock options vested during the 26-week periods ended June 25, 2023 and June 26, 2022 was $1,272 and $2,209, respectively. As of June 25, 2023, total unrecognized stock-based compensation expense related to unvested stock options was $6,345, which is expected to be recognized over a weighted-average period of 1.95 years.

Restricted Stock Unit Activity

The following table summarizes the Company’s restricted stock units (“RSU”) activity since December 25, 2022:


	Number of RSUs			Weighted- Average Grant Date Fair Value
Unvested as of December 25, 2022		505,504		$	13.58
Granted		344,720		$	15.09
Vested1		(206,625	)	$	14.12
Forfeited		(21,000	)	$	14.52
Unvested as of June 25, 2023		622,599		$	14.21

1 Includes 39,459 shares of common stock withheld to cover taxes on the release of vested RSUs, which became available for future grants pursuant
to the 2020 Equity Incentive Plan.

The fair value of RSU shares vested during the 13-week periods ended June 25, 2023 and June 26, 2022 was $1,258 and $1,209, respectively. The fair value of RSU shares vested during the 26-week periods ended June 25, 2023 and June 26, 2022 was $2,913 and $1,497, respectively. As of June 25, 2023, total unrecognized stock-based compensation expense related to unvested stock options and the RSUs was $7,721, which is expected to be recognized over a weighted-average period of 2.15 years.

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 the Company’s 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 25, 2023, 10,693,299 shares were available for future grants of the Company’s common stock, which includes 1,629,884 shares of stock that were automatically added to the available reserve on January 1, 2023. 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 25, 2023, 2,097,527 shares of the Company’s common stock were available for future issuance, which includes 407,471 shares of common stock that were automatically added to the available reserve on January 1, 2023. 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 authorized subsequent additional six-month offering periods, with the most recent beginning on May 16, 2023.

Derivative Financial Instruments

6 Months Ended

Jun. 25, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 4. Derivative Financial Instruments

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

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


	Metric	June 25, 2023		December 25, 2022
Commodity:
Corn	Bushels (in thousands)		1,735		—
Soybean Meal	Tons		19		—

For the 13-week periods ended June 25, 2023 and June 26, 2022, the pre-tax amount of commodity contract derivative losses recognized in other expense, net in the unaudited condensed consolidated statements of operations was $402 and $0, respectively. For the 26-week periods ended June 25, 2023 and June 26, 2022, the pre-tax amount of commodity contract derivative losses recognized in other expense, net in the unaudited condensed consolidated statements of operations was $1,817 and $0, respectively.

The fair value and location of all outstanding derivative financial instruments in the unaudited condensed consolidated balance sheets are included in “Fair Value Measurements” in Note 5 below.

Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Commodity Contract [Member] \| Non designated [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pre-tax amount of derivative losses	$ (402)	$ 0	$ (1,817)	$ 0

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 25, 2023	Dec. 25, 2022
Payables and Accruals [Abstract]
Accrued employee related costs	$ 6,108	$ 7,453
Accrued promotions and customer deductions	4,903	4,414
Accrued distribution fees and freight	4,212	2,351
Accrued marketing and broker commissions	3,992	1,598
Accrued property, plant and equipment	1,214	153
Accrued professional fees	1,089	761
Accrued purchases of inventory	933	1,349
Accrued derivative premiums	1,483	0
Other	1,233	398
Accrued liabilities	$ 25,167	$ 18,477

Investment Securities - Summary of Contractual Maturities of Investment Securities (Details) - USD ($) $ in Thousands	Jun. 25, 2023	Dec. 25, 2022
Investments, Debt and Equity Securities [Abstract]
Due within one year Amortized Cost	$ 25,738
Due in 1-5 years Amortized Cost	21,369
Total available-for-sale Amortized Cost	47,107	$ 67,834
Due within one year Fair Value	25,220
Due in 1-5 years Fair Value	20,642
Total available-for-sale	$ 45,862	$ 65,814

Investment Securities

6 Months Ended

Jun. 25, 2023

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 25, 2023:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Fair Value
U.S. corporate bonds and U.S. dollar denominated foreign bonds	$	47,107	$	—	$	(1,245	)	$	—	$	45,862
Total	$	47,107	$	—	$	(1,245	)	$	—	$	45,862

The following table summarizes the Company’s available-for-sale investment securities as of December 25, 2022:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Fair Value
U.S. corporate bonds and U.S. dollar denominated foreign bonds	$	66,658	$	4	$	(2,000	)	$	—	$	64,662
U.S. Treasury		1,176		—		(24	)		—		1,152
Total	$	67,834	$	4	$	(2,024	)	$	—	$	65,814

Proceeds from the sale of available-for-sale securities were $1,907 for the 13-week and 26-week periods ended June 25, 2023 and $0 for the 13-week and 26-week periods ended 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. The amortized cost and fair value of the Company’s investments in available-for-sale securities as of June 25, 2023 by contractual maturity are as follows:


	Amortized Cost		Fair Value
Due within one year	$	25,738	$	25,220
Due after one year through five years		21,369		20,642
Total available-for-sale	$	47,107	$	45,862

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


	June 25, 2023
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. corporate bonds and U.S. dollar denominated foreign bonds	$	6,438	$	(117	)	$	38,414	$	(1,128	)	$	44,852	$	(1,245	)
Total	$	6,438	$	(117	)	$	38,414	$	(1,128	)	$	44,852	$	(1,245	)


	December 25, 2022
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. corporate bonds and U.S. dollar denominated foreign bonds	$	31,657	$	(888	)	$	32,406	$	(1,112	)	$	64,063	$	(2,000	)
U.S. Treasury		—		—			1,176		(24	)		1,176		(24	)
Total	$	31,657	$	(888	)	$	33,582	$	(1,136	)	$	65,239	$	(2,024	)

As of June 25, 2023, there were 69 diversified issuances in our securities portfolio in an unrealized loss position, with credit ratings ranging from BBB to AAA. As of June 25, 2023, there are no individual bonds with unrealized losses exceeding $77, and 57 issuances have been in a loss position greater than 12 months.

The decline in fair value has resulted primarily from rising interest rates over the last 12 months, and the Company does not believe there has been any significant decline in the creditworthiness of the issuers. The Company also does not believe it is likely that a significant number of bonds will be called early and it does not have current liquidity needs that would necessitate a sale of any material investments prior to maturity. Therefore, the Company has not recorded an allowance for credit losses on the investment securities as of June 25, 2023.

The fair value and location of all investment securities in the unaudited condensed consolidated balance sheets are included in “Fair Value Measurements” in Note 5 below.

Revenue Recognition - Summary of Net Revenue by Primary Product (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Disaggregation Of Revenue [Line Items]
Net revenue	$ 106,445	$ 82,870	$ 225,616	$ 159,929
Egg and Egg Related Products
Disaggregation Of Revenue [Line Items]
Net revenue	101,785	78,107	214,575	150,228
Butter and Butter Related Products
Disaggregation Of Revenue [Line Items]
Net revenue	$ 4,660	$ 4,763	$ 11,041	$ 9,701

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.

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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 32
-Subparagraph (b)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 32
-Subparagraph (a)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 4
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Investments, Debt and Equity Securities [Abstract]

Investment Securities (Tables)

6 Months Ended

Jun. 25, 2023

Summary of Available-for-sale Investment Securities

The following table summarizes the Company’s available-for-sale investment securities as of June 25, 2023:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Fair Value
U.S. corporate bonds and U.S. dollar denominated foreign bonds	$	47,107	$	—	$	(1,245	)	$	—	$	45,862
Total	$	47,107	$	—	$	(1,245	)	$	—	$	45,862

The following table summarizes the Company’s available-for-sale investment securities as of December 25, 2022:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Fair Value
U.S. corporate bonds and U.S. dollar denominated foreign bonds	$	66,658	$	4	$	(2,000	)	$	—	$	64,662
U.S. Treasury		1,176		—		(24	)		—		1,152
Total	$	67,834	$	4	$	(2,024	)	$	—	$	65,814

Summary of Contractual Maturities of Investment Securities

The amortized cost and fair value of the Company’s investments in available-for-sale securities as of June 25, 2023 by contractual maturity are as follows:


	Amortized Cost		Fair Value
Due within one year	$	25,738	$	25,220
Due after one year through five years		21,369		20,642
Total available-for-sale	$	47,107	$	45,862

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


	June 25, 2023
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. corporate bonds and U.S. dollar denominated foreign bonds	$	6,438	$	(117	)	$	38,414	$	(1,128	)	$	44,852	$	(1,245	)
Total	$	6,438	$	(117	)	$	38,414	$	(1,128	)	$	44,852	$	(1,245	)


	December 25, 2022
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. corporate bonds and U.S. dollar denominated foreign bonds	$	31,657	$	(888	)	$	32,406	$	(1,112	)	$	64,063	$	(2,000	)
U.S. Treasury		—		—			1,176		(24	)		1,176		(24	)
Total	$	31,657	$	(888	)	$	33,582	$	(1,136	)	$	65,239	$	(2,024	)

Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Leases [Abstract]
Operating lease cost	$ 361	$ 361	$ 722	$ 722
Finance lease cost - amortization of right-of-use assets	447	79	894	157
Finance lease cost - interest on lease liabilities	125	2	257	5
Short-term lease cost	305	11	422	14
Variable lease cost	2,115	652	3,678	1,070
Variable lease cost - long-term supply contracts	47,064	32,162	90,150	62,345
Total lease cost	$ 50,417	$ 33,267	$ 96,123	$ 64,313

Nature of the Business and Basis of Presentation

6 Months Ended

Jun. 25, 2023

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. The Company packages, markets and distributes shell eggs, butter and other products. These products are sold under the trade names Vital Farms, RedHill Farms and Backyard Eggs, primarily to retail and foodservice channels in the United States.

The accompanying unaudited condensed consolidated financial statements as of June 25, 2023 and for the 13-week and 26-week periods ended June 25, 2023 and June 26, 2022 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 in our Annual Report on Form 10-K for the fiscal year ended December 25, 2022 (the “Annual Report”).

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 statement of our consolidated financial position as of June 25, 2023, consolidated results of operations for the 13-week and 26-week periods ended June 25, 2023 and June 26, 2022, and consolidated cash flows for the 26-week periods ended June 25, 2023 and June 26, 2022. 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 balance sheet as of December 25, 2022 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the audited annual financial statements. The condensed consolidated results of operations for the 13-week and 26-week periods ended June 25, 2023 are not necessarily indicative of the consolidated results of operations that may be expected for the fiscal year ending December 31, 2023.

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 fiscal quarters ended June 25, 2023 and June 26, 2022 both contain operating results for 13 weeks. The fiscal year ending December 31, 2023 will include 53 weeks.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY(Unaudited) - USD ($) $ in Thousands	Total	Redeemable Noncontrolling Interest Variable Interest Entity, Primary Beneficiary	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total Stockholders' Equity Attributable to Vital Farms, Inc. Stockholders	Noncontrolling Interests
Beginning Balance at Dec. 26, 2021	$ 151,585		$ 5	$ 149,000	$ 2,746	$ (281)	$ 151,470	$ 115
Beginning balance at Dec. 26, 2021		$ 175
Beginning Balance, Shares at Dec. 26, 2021			40,493,969
Exercise of stock options	254			254			254
Exercise of stock options, Shares			102,328
Stock-based compensation expense	1,296			1,296			1,296
Net loss attributable to noncontrolling interests - stockholders	(2)				162		162	(164)
Other comprehensive income loss, net	(783)					(783)	(783)
Net income	(1,536)				(1,536)		(1,536)
Ending balance at Mar. 27, 2022		175
Ending Balance at Mar. 27, 2022	150,814		$ 5	150,550	1,372	(1,064)	150,863	(49)
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
Beginning Balance, Shares at Dec. 26, 2021			40,493,969
Net loss attributable to noncontrolling interests - stockholders	(8)
Other comprehensive income loss, net	(1,166)
Net income	(1,338)
Ending balance at Jun. 26, 2022		175
Ending Balance at Jun. 26, 2022	152,390		$ 5	152,317	1,571	(1,447)	152,446	(56)
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)
Vesting of restricted stock units, Shares			47,544
Stock-based compensation expense	1,633			1,633			1,633
Net loss attributable to noncontrolling interests - stockholders	(7)							(7)
Other comprehensive income loss, net	(383)					(383)	(383)
Net income	199				199		199
Ending balance at Jun. 26, 2022		$ 175
Ending Balance at Jun. 26, 2022	152,390		$ 5	152,317	1,571	(1,447)	$ 152,446	$ (56)
Ending Balance, Shares at Jun. 26, 2022			40,679,414
Beginning Balance at Dec. 25, 2022	$ 158,332		$ 4	155,716	4,159	(1,547)
Beginning Balance, Shares at Dec. 25, 2022	40,746,990		40,746,990
Vesting of restricted stock units, Shares			127,595
Shares withheld for tax liability on vested restricted stock units, Shares			(35,535)
Stock-based compensation expense	$ 1,627			1,627
Other comprehensive income loss, net	421					421
Net income	7,150				7,150
Ending Balance at Mar. 26, 2023	167,530		$ 4	157,343	11,309	(1,126)
Ending Balance, Shares at Mar. 26, 2023			40,839,050
Beginning Balance at Dec. 25, 2022	$ 158,332		$ 4	155,716	4,159	(1,547)
Beginning Balance, Shares at Dec. 25, 2022	40,746,990		40,746,990
Exercise of stock options, Shares	307,500
Net loss attributable to noncontrolling interests - stockholders	$ 0
Other comprehensive income loss, net	583
Net income	13,833
Ending Balance at Jun. 25, 2023	$ 176,044		$ 4	159,012	17,992	(964)
Ending Balance, Shares at Jun. 25, 2023	41,232,667		41,232,667
Beginning Balance at Mar. 26, 2023	$ 167,530		$ 4	157,343	11,309	(1,126)
Beginning Balance, Shares at Mar. 26, 2023			40,839,050
Exercise of stock options	110			110
Exercise of stock options, Shares			307,500
Vesting of restricted stock units, Shares			79,030
Shares withheld for tax liability on vested restricted stock units	(636)			(636)
Shares withheld for tax liability on vested restricted stock units, Shares			(3,924)
Shares issued under employee stock purchase plan	135			135
Shares issued under employee stock purchase plan, Shares			11,011
Stock-based compensation expense	2,060			2,060
Net loss attributable to noncontrolling interests - stockholders	0
Other comprehensive income loss, net	162					162
Net income	6,683				6,683
Ending Balance at Jun. 25, 2023	$ 176,044		$ 4	$ 159,012	$ 17,992	$ (964)
Ending Balance, Shares at Jun. 25, 2023	41,232,667		41,232,667

Fair Value Measurements - Additional Information (Details)	Jun. 25, 2023 USD ($)
Fair Value Disclosures [Abstract]
Fair value liabilities transfers, Level 2 to Level 1	$ 0

Accrued Liabilities

6 Months Ended

Jun. 25, 2023

Payables and Accruals [Abstract]

Accrued Liabilities

Note 11. Accrued Liabilities

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


	June 25, 2023		December 25, 2022
Accrued employee related costs	$	6,108	$	7,453
Accrued promotions and customer deductions		4,903		4,414
Accrued distribution fees and freight		4,212		2,351
Accrued marketing and broker commissions		3,992		1,598
Accrued property, plant and equipment		1,214		153
Accrued professional fees		1,089		761
Accrued purchases of inventory		933		1,349
Accrued derivative premiums		1,483		—
Other		1,233		398
Accrued liabilities	$	25,167	$	18,477

Accumulated Other Comprehensive Income (Loss) - Schedule of Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 25, 2023	Mar. 26, 2023	Jun. 26, 2022	Mar. 27, 2022	Jun. 25, 2023	Jun. 26, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized net holding gain (loss), Before Tax	$ 128		$ (521)		$ 645	$ (1,597)
Unrealized net holding gain (loss), Tax	(35)		123		(159)	378
Unrealized net holding gain (loss), After Tax	93		(398)		486	(1,219)
Amounts reclassified from accumulated other comprehensive loss to earnings	95		20		129	70
Amounts reclassified for realized losses to earnings	(26)		(5)		(32)	(17)
Net of tax	(69)		(15)		(97)	(53)
Income tax (expense) benefit related to items of other comprehensive income (loss)	(61)		118		(191)	361
Other comprehensive income (loss), net of tax	162	$ 421	(383)	$ (783)	583	(1,166)
Other comprehensive income (loss), before tax	223		(501)		774	(1,527)
Available-for-Sale Debt Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive loss to earnings	$ 95		$ 20		$ 129	$ 70

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. 25, 2023	Dec. 25, 2022
Customer A
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	20.00%	23.00%
Customer C
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	13.00%	12.00%
Customer D
Disaggregation Of Revenue [Line Items]
Concentration risk percentage		13.00%

Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Parenthetical) (Details)	6 Months Ended
	Jun. 25, 2023 shares
Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares of common stock withheld to cover taxes	39,459

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 25, 2023	Dec. 25, 2022
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 75,221	$ 71,842
Less: Accumulated depreciation and amortization	(15,881)	(12,687)
Property, plant and equipment, net	59,340	59,155
Land
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	552	552
Land improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	835	835
Buildings and Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	30,067	29,667
Vehicles
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	1,080	894
Machinery and Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	37,487	34,978
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	919	919
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	712	685
Construction in Progress
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3,569	$ 3,312

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 25, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Recognized Stock - Based Compensation Expense

The Company recognized stock-based compensation expense in the condensed consolidated statements of operations for the periods presented:


	13-Weeks Ended				26-Weeks Ended
	June 25, 2023		June 26, 2022		June 25, 2023		June 26, 2022
Cost of goods sold	$	80	$	62	$	133	$	91
Selling, general and administrative expense		1,366		1,571		3,554		2,838
Total	$	1,446	$	1,633	$	3,687	$	2,929

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity since December 25, 2022:


	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding as of December 25, 2022		4,634,205		$	9.35			$	38,522
Granted		512,102		$	15.05
Exercised		(307,500	)	$	0.63			$	4,451
Cancelled/Forfeited		(30,797	)	$	19.13			$	61
Outstanding as of June 25, 2023		4,808,010		$	10.45		5.9	$	26,876
Options exercisable as of June 25, 2023		3,036,485		$	8.00		4.8	$	22,445
Options vested and expected to vest as of June 25, 2023		4,808,006		$	10.45		5.9	$	26,876

Summary of Restricted Stock Unit Activity

The following table summarizes the Company’s restricted stock units (“RSU”) activity since December 25, 2022:


	Number of RSUs			Weighted- Average Grant Date Fair Value
Unvested as of December 25, 2022		505,504		$	13.58
Granted		344,720		$	15.09
Vested1		(206,625	)	$	14.12
Forfeited		(21,000	)	$	14.52
Unvested as of June 25, 2023		622,599		$	14.21

1 Includes 39,459 shares of common stock withheld to cover taxes on the release of vested RSUs, which became available for future grants pursuant
to the 2020 Equity Incentive Plan.

Income Taxes

6 Months Ended

Jun. 25, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 16. Income Taxes

The Company’s effective tax rate for the 13-week periods ended June 25, 2023 and June 26, 2022 was approximately 16% and 78%, respectively. The Company’s effective tax rate for the 26-week periods ended June 25, 2023 and June 26, 2022 was approximately 21% and 55%, respectively. The Company’s effective tax rate for the 13-week period ended June 25, 2023 differs from the statutory rate due primarily to a discrete tax benefit related to the exercise of non-qualified stock options.

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. The Company’s estimated annual effective tax rate differs from the federal statutory rate of 21% due to state taxes, permanent differences related to incentive stock options and the impact of compensation deduction limitations under Internal Revenue Code Section 162(m).

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Fair Value Measurements

6 Months Ended

Jun. 25, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 5. Fair Value Measurements

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

•

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

•

Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•

Level 3 – Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

Assets Measured at Fair Value on a Recurring Basis

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

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


	Fair Value Measurements as of June 25, 2023, Using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market	$	34,533	$	—	$	—	$	34,533
Investment securities, available-for-sale:
U.S. corporate bonds and U.S. dollar denominated foreign bonds		—		45,862		—		45,862
Prepaid expenses and other current assets:
Derivative financial instruments		—		694		—		694
Total assets measured at fair value	$	34,533	$	46,556	$	—	$	81,089


	Fair Value Measurements as of December 25, 2022, Using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market	$	6,740	$	—	$	—	$	6,740
Investment securities, available-for-sale:
U.S. corporate bonds and U.S. dollar denominated foreign bonds		—		64,662		—		64,662
U.S. Treasury		—		1,152		—		1,152
Total assets measured at fair value	$	6,740	$	65,814	$	—	$	72,554

During the 26-week period ended June 25, 2023, there were no transfers between fair value measurement levels. For additional information on concentrations of credit risk for the Company’s financial instruments, refer to “Summary of Significant Accounting Policies” in Note 2 and “Investment Securities” in Note 3.

Fair Value of Other Financial Instruments

The carrying values of the Company’s short-term financial instruments not included above, including cash and cash equivalents, trade receivables, other receivables and accounts payable approximate their fair value due to their short-term nature.

Schedule of Basic and Diluted Net Income (Loss) Per Share

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

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Income Statement [Abstract]
Net revenue	$ 106,445	$ 82,870	$ 225,616	$ 159,929
Cost of goods sold	68,645	57,931	145,149	113,289
Gross profit	37,800	24,939	80,467	46,640
Operating expenses:
Selling, general and administrative	23,908	17,007	47,853	34,632
Shipping and distribution	5,853	7,211	13,679	15,373
Total operating expenses	29,761	24,218	61,532	50,005
Income (loss) from operations	8,039	721	18,935	(3,365)
Other (expense) income, net:
Interest expense	(136)	(7)	(275)	(15)
Interest income	450	210	790	340
Other expense, net	(441)	(52)	(1,866)	(3)
Total other (expense) income, net	(127)	151	(1,351)	322
Net income (loss) before income taxes	7,912	872	17,584	(3,043)
Income tax provision (benefit)	1,229	680	3,751	(1,697)
Net income (loss)	6,683	192	13,833	(1,346)
Less: Net loss attributable to noncontrolling interests	0	(7)	0	(8)
Net income (loss) attributable to Vital Farms, Inc. common stockholders	$ 6,683	$ 199	$ 13,833	$ (1,338)
Earnings Per Share
Basic:	$ 0.16	$ 0.00	$ 0.34	$ (0.03)
Diluted:	$ 0.15	$ 0.00	$ 0.32	$ (0.03)
Weighted average common shares outstanding:
Basic:	40,948,365	40,628,416	40,861,218	40,580,598
Diluted:	43,292,261	42,694,767	43,359,993	40,580,598

Net Income (Loss) Per Share (Tables)

6 Months Ended

Jun. 25, 2023

Earnings Per Share [Abstract]

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


	13-Weeks Ended					26-Weeks Ended
	June 25, 2023		June 26, 2022			June 25, 2023		June 26, 2022
Numerator:
Net income (loss)	$	6,683	$	192		$	13,833	$	(1,346	)
Less: Net loss attributable to noncontrolling interests		—		(7	)		—		(8	)
Net income (loss) attributable to Vital Farms, Inc. stockholders’ — basic and diluted	$	6,683	$	199		$	13,833	$	(1,338	)
Denominator:
Weighted average common shares outstanding — basic		40,948,365		40,628,416			40,861,218		40,580,598
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options		2,227,020		2,048,653			2,324,262		—
Effect of potentially dilutive restricted stock units		106,478		17,698			160,193		—
Effect of potentially dilutive common stock issuable pursuant to the ESPP		10,398		—			14,320		—
Weighted average common shares outstanding — diluted		43,292,261		42,694,767			43,359,993		40,580,598
Net income (loss) per share attributable to Vital Farms, Inc. stockholders
Basic	$	0.16	$	0.00		$	0.34	$	(0.03	)
Diluted	$	0.15	$	0.00		$	0.32	$	(0.03	)

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

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


	13-Weeks Ended				26-Weeks Ended
	June 25, 2023		June 26, 2022		June 25, 2023		June 26, 2022
Options to purchase common stock		36,865		4,723		14,905		21,629
Unvested restricted stock		12,286		104,771		4,440		40,078
		49,151		109,494		19,345		61,707

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive loss to earnings	$ 95	$ 20	$ 129	$ 70
Tax (expense) benefit	(26)	(5)	(32)	(17)
Net of tax	69	15	97	53
Gains (Losses) on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive loss to earnings	$ 95	$ 20	$ 129	$ 70

Net Income (Loss) Per Share

6 Months Ended

Jun. 25, 2023

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Note 17. Net Income (Loss) Per Share

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


	13-Weeks Ended					26-Weeks Ended
	June 25, 2023		June 26, 2022			June 25, 2023		June 26, 2022
Numerator:
Net income (loss)	$	6,683	$	192		$	13,833	$	(1,346	)
Less: Net loss attributable to noncontrolling interests		—		(7	)		—		(8	)
Net income (loss) attributable to Vital Farms, Inc. stockholders’ — basic and diluted	$	6,683	$	199		$	13,833	$	(1,338	)
Denominator:
Weighted average common shares outstanding — basic		40,948,365		40,628,416			40,861,218		40,580,598
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options		2,227,020		2,048,653			2,324,262		—
Effect of potentially dilutive restricted stock units		106,478		17,698			160,193		—
Effect of potentially dilutive common stock issuable pursuant to the ESPP		10,398		—			14,320		—
Weighted average common shares outstanding — diluted		43,292,261		42,694,767			43,359,993		40,580,598
Net income (loss) per share attributable to Vital Farms, Inc. stockholders
Basic	$	0.16	$	0.00		$	0.34	$	(0.03	)
Diluted	$	0.15	$	0.00		$	0.32	$	(0.03	)


	13-Weeks Ended				26-Weeks Ended
	June 25, 2023		June 26, 2022		June 25, 2023		June 26, 2022
Options to purchase common stock		36,865		4,723		14,905		21,629
Unvested restricted stock		12,286		104,771		4,440		40,078
		49,151		109,494		19,345		61,707

Investment Securities - Schedule of Unrealized Loss Aging for Available-for-sale Securities (Details) - USD ($) $ in Thousands	Jun. 25, 2023	Dec. 25, 2022
Schedule Of Available For Sale Securities [Line Items]
Fair value, less than 12 months	$ 6,438	$ 31,657
Unrealized losses, less than 12 months	(117)	(888)
Fair value, 12 months or longer	38,414	33,582
Unrealized losses, 12 months or longer	(1,128)	(1,136)
Fair value, Total	44,852	65,239
Unrealized losses, Total	(1,245)	(2,024)
U.S. corporate bonds and U.S. dollar denominated foreign bonds
Schedule Of Available For Sale Securities [Line Items]
Fair value, less than 12 months	6,438	31,657
Unrealized losses, less than 12 months	(117)	(888)
Fair value, 12 months or longer	38,414	32,406
Unrealized losses, 12 months or longer	(1,128)	(1,112)
Fair value, Total	44,852	64,063
Unrealized losses, Total	$ (1,245)	(2,000)
U.S. Treasury
Schedule Of Available For Sale Securities [Line Items]
Fair value, less than 12 months		0
Unrealized losses, less than 12 months		0
Fair value, 12 months or longer		1,176
Unrealized losses, 12 months or longer		(24)
Fair value, Total		1,176
Unrealized losses, Total		$ (24)

Product Exit Costs (Tables)

6 Months Ended

Jun. 25, 2023

Restructuring and Related Activities [Abstract]

Summary of Activity Related to Exit of Breakfast Products

The following tables summarize the activity related to the exit of the Company’s convenient breakfast product category during the periods presented:


		For the 26-Weeks Ended June 25, 2023
Description	Statement of Operations Classification	Beginning Liability Balance		Charges Incurred		Amounts Paid or Settled			Amounts Released as Unutilized		Ending Liability Balance
Asset write-downs	Cost of goods sold	$	119	$	—	$	(74	)	$	—	$	45
Total		$	119	$	—	$	(74	)	$	—	$	45


		For the 26-Weeks Ended June 26, 2022
Description	Statement of Operations Classification	Charges Incurred		Amounts Paid or Settled			Amounts Released as Unutilized		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. 25, 2023

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 25, 2023		December 25, 2022
Options to purchase common stock		4,808,010		4,634,205
Restricted stock units		622,599		505,504
Shares available for grant under the 2020 Equity Incentive Plan and 2020 Employee Stock Purchase Plan		12,790,826		11,503,459
Total		18,221,435		16,643,168

Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 25, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Notional Amounts of Outstanding Derivative Instruments

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


	Metric	June 25, 2023		December 25, 2022
Commodity:
Corn	Bushels (in thousands)		1,735		—
Soybean Meal	Tons		19		—

Leases - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022
Leases [Abstract]
ROU assets obtained in exchange for new finance lease obligations	$ 4	$ 26

Related Party Transactions

6 Months Ended

Jun. 25, 2023

Related Party Transactions

Note 20. Related Party Transactions

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

Effective August 30, 2022, Ovabrite’s board of directors and the holders of the majority of its outstanding capital stock consented to dissolving the entity, and a Certificate of Dissolution was filed with the Delaware Secretary of State. As of June 25, 2023, Ovabrite completed its business activities and liquidated its remaining assets. For the 13-week and 26-week periods ended June 25, 2023 and June 26, 2022, the results of operations of the Ovabrite entity were immaterial.

Sandpebble Builders Preconstruction, Inc.: The Company utilizes Sandpebble Builders Preconstruction, Inc. and Sandpebble South, Inc. (collectively “Sandpebble”) for project management and related services associated with the construction and expansion of our egg processing facilities, including site selection, project management and related services for our potential new egg packing facility. Victor Canseco, the owner and principal of Sandpebble, is the father of Russell Diez-Canseco, the Company’s President and Chief Executive Officer and a member of the Company’s board of directors. In connection with the services described above, the Company paid Sandpebble $139 and $250 during the 13-week periods ended June 25, 2023 and June 26, 2022, respectively, and $255 and $371 during the 26-week periods ended June 25, 2023 and June 26, 2022, respectively. Amounts paid to Sandpebble are included in property, plant and equipment, net and selling, general and administrative costs in the unaudited condensed consolidated statements of operations. As of June 25, 2023 and June 26, 2022, amounts owed to Sandpebble were $1,126 and $1,086, respectively, and are included in accrued liabilities in the unaudited condensed consolidated balance sheets.

Inventories (Tables)

6 Months Ended

Jun. 25, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consisted of the following as of the periods presented:


	June 25, 2023			December 25, 2022
Eggs and egg-related products	$	27,336		$	13,675
Butter and butter-related products		5,653			5,718
Packaging		7,474			5,452
Pullets		401			981
Other		1,510			1,121
Reserve for inventory obsolescence		(269	)		(98	)
Inventories	$	42,105		$	26,849

Income Taxes - Additional Information (Details)	3 Months Ended		6 Months Ended
Income Taxes - Additional Information (Details)	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	16.00%	78.00%	21.00%	55.00%

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 25, 2023	Dec. 25, 2022
Current assets:
Cash and cash equivalents	$ 47,673	$ 12,914
Investment securities, available-for-sale	45,862	65,814
Accounts receivable, net	30,045	38,895
Inventories	42,105	26,849
Prepaid expenses and other current assets	6,193	5,142
Total current assets	171,878	149,614
Property, plant and equipment, net	59,340	59,155
Operating lease right-of-use assets	1,200	1,895
Goodwill and other assets	3,904	4,002
Total assets	236,322	214,666
Current liabilities:
Accounts payable	21,840	25,972
Accrued liabilities	25,167	18,477
Operating lease liabilities, current	731	1,208
Finance lease liabilities, current	1,621	1,570
Income taxes payable	2,345	425
Total current liabilities	51,704	47,652
Operating lease liabilities, non-current	647	892
Finance lease liabilities, non-current	6,202	7,023
Other liabilities	1,725	767
Total liabilities	60,278	56,334
Commitments and contingencies (Note 19)	0	0
Stockholders’ equity:
Common stock, $0.0001 par value per share, 310,000,000 shares authorized as of June 25, 2023 and December 25, 2022; 41,232,667 and 40,746,990 shares issued and outstanding as of June 25, 2023 and December 25, 2022, respectively	4	4
Additional paid-in capital	159,012	155,716
Retained earnings	17,992	4,159
Accumulated other comprehensive loss	(964)	(1,547)
Total stockholders’ equity	176,044	158,332
Total liabilities and stockholders' equity	$ 236,322	$ 214,666

Revenue Recognition

6 Months Ended

Jun. 25, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 6. 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 25, 2023		June 26, 2022		June 25, 2023		June 26, 2022
Net Revenue:
Egg and egg-related products	$	101,785	$	78,107	$	214,575	$	150,228
Butter and butter-related products		4,660		4,763		11,041		9,701
Net Revenue	$	106,445	$	82,870	$	225,616	$	159,929

Net revenue is primarily generated from the sale of eggs and butter. The Company’s product offerings include shell eggs, hard-boiled eggs, liquid whole eggs and butter (including stick butter and spreadable tub butter). The Company’s previous convenient breakfast product line (including egg bites and egg-based breakfast bars) was discontinued in 2022, and the Company’s ghee product line was discontinued during the 26-week period ended June 25, 2023.

As of June 25, 2023 and December 25, 2022, the Company had customers that individually represented 10% or more of the Company’s accounts receivable, net, and during the 13-week periods ended June 25, 2023 and June 26, 2022 and the 26-week periods ended June 25, 2023 and June 26, 2022, the Company had customers that individually exceeded 10% or more of the Company’s net revenue. The percentage of net revenue from significant customers during the 13-week and 26-week periods ended June 25, 2023 and June 26, 2022 is as follows:


	Net Revenue for the 13-Weeks Ended June 25, 2023	Net Revenue for the 13-Weeks Ended June 26, 2022	Net Revenue for the 26-Weeks Ended June 25, 2023	Net Revenue for the 26-Weeks Ended June 26, 2022
Customer A	25%	32%	25%	33%
Customer B	*	10%	*	*
Customer C	*	13%	*	12%
* Revenue was less than 10%

The percentage of accounts receivable, net due from significant customers as of June 25, 2023 and December 25, 2022 is as follows:


	Accounts Receivable, Net as of June 25, 2023	Accounts Receivable, Net as of December 25, 2022
Customer A	20%	23%
Customer C	13%	12%
Customer D	*	13%
* Accounts receivable was less than 10%

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Schedule of Components of Lease Cost

Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands	Jun. 25, 2023	Dec. 25, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	$ 81,089	$ 72,554
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	34,533	6,740
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	46,556	65,814
Money market
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	34,533	6,740
Money market \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	34,533	6,740
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	45,862	64,662
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	45,862	64,662
U.S. Treasury
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value		1,152
U.S. Treasury \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value		$ 1,152
Derivative financial instruments
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	694
Derivative financial instruments \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	$ 694

Allowance for Credit Losses - Schedule of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 25, 2023	Mar. 26, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Beginning balance	$ (783)	$ (699)
(Provisions) reductions charged to operating results	(240)	(233)
Account write-off and (recoveries), net	5	149
Allowance for credit losses,Ending balance	(1,018)	(783)
Trade Receivable [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Beginning balance	(514)	(493)
(Provisions) reductions charged to operating results	(328)	(170)
Account write-off and (recoveries), net	5	149
Allowance for credit losses,Ending balance	(837)	(514)
Other Receivables [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Beginning balance	(269)	(206)
(Provisions) reductions charged to operating results	88	(63)
Account write-off and (recoveries), net	0	0
Allowance for credit losses,Ending balance	$ (181)	$ (269)

Product Exit Costs - Summary of Activity Related to Exit of Breakfast Products (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022
Restructuring Cost And Reserve [Line Items]
Restructuring Reserve, Beginning Balance	$ 119
Charges Incurred	0	$ 2,341
Amounts Paid or Settled	(74)	(2,091)
Amounts Released as Unutilized	0	0
Restructuring Reserve, Ending Balance	45	250
Net Revenue \| Customer Allowances
Restructuring Cost And Reserve [Line Items]
Charges Incurred		146
Amounts Paid or Settled		(111)
Amounts Released as Unutilized		0
Restructuring Reserve, Ending Balance		35
Cost of Goods Sold \| Inventory Obsolescence
Restructuring Cost And Reserve [Line Items]
Charges Incurred		749
Amounts Paid or Settled		(723)
Amounts Released as Unutilized		0
Restructuring Reserve, Ending Balance		26
Cost of Goods Sold \| Asset Write-downs
Restructuring Cost And Reserve [Line Items]
Restructuring Reserve, Beginning Balance	119
Charges Incurred	0	119
Amounts Paid or Settled	(74)	0
Amounts Released as Unutilized	0	0
Restructuring Reserve, Ending Balance	$ 45	119
Cost of Goods Sold \| Co-manufacturer Charges
Restructuring Cost And Reserve [Line Items]
Charges Incurred		135
Amounts Paid or Settled		(135)
Amounts Released as Unutilized		0
Restructuring Reserve, Ending Balance		0
Selling, General and Administrative \| Asset Disposals
Restructuring Cost And Reserve [Line Items]
Charges Incurred		66
Amounts Paid or Settled		(66)
Amounts Released as Unutilized		0
Restructuring Reserve, Ending Balance		0
Selling, General and Administrative \| Contract Terminations
Restructuring Cost And Reserve [Line Items]
Charges Incurred		1,126
Amounts Paid or Settled		(1,056)
Amounts Released as Unutilized		0
Restructuring Reserve, Ending Balance		$ 70

Long-Term Debt

6 Months Ended

Jun. 25, 2023

Debt Disclosure [Abstract]

Long-Term Debt

Note 13. Long-Term Debt

In October 2017, the Company entered into a credit facility agreement with PNC Bank, National Association (the “Credit Facility”) that initially included a $4.7 million term a loan, a $10.0 million revolving line of credit and an equipment loan with a maximum borrowing capacity of $1.5 million.

Subsequently, the terms of the Credit Facility were modified at various times between fiscal 2018 and fiscal 2022. Such amendments (i) amended various definitions, (ii) waived a technical default in May 2020 which was triggered by exceeding the capital expenditure limit, (iii) increased borrowing capacity and (iv) extended the maturity date. The Ninth Amendment to the Credit Facility in April 2021 eliminated the term loan and equipment loan. The Tenth Amendment to the Credit Facility in December 2022 modified certain covenants related to commodity hedging, provided consent for the dissolution of immaterial subsidiaries and implemented changes related to the discontinuation of LIBOR. The Eleventh Amendment to the Credit Facility, effective July 26, 2023 extended the maturity date by one year, to April 2, 2025.

The maximum borrowing capacity under the revolving line of credit is currently $20.0 million. Interest on borrowings under the revolving line of credit, as well as loan advances thereunder, accrues at a rate, at the Company’s election at the time of borrowing, equal to (i) the secured overnight financing rate as administered by the Federal Reserve Bank of New York plus 2.00% or (ii) 1.00% plus the alternate base rate, as defined in the Credit Facility. During the 26-week period ended June 25, 2023, the Company borrowed and repaid $7.5 million under the revolving line of credit. As of June 25, 2023, there were no outstanding amounts under the revolving line of credit.

The Credit Facility is secured by all of the Company’s assets (other than real property and certain other property excluded pursuant to the terms of the Credit Facility) and requires the Company to maintain three financial covenants: a fixed charge coverage ratio, a leverage ratio and a minimum tangible net worth requirement. The Credit Facility also contains various covenants relating to limitations on indebtedness, acquisitions, mergers, consolidations and the sale of properties and liens. As a result of the limitations contained in the Credit Facility, certain of the net assets on the Company’s consolidated balance sheet as of June 25, 2023 are restricted in use. Vital Farms’ wholly owned subsidiaries are non-operating and have no restricted net assets within the meaning of Rule 4-08(e)(3) or Rule 12-04 of Regulation S-X. The Credit Facility also contains other customary covenants, representations and events of default. As of June 25, 2023, the Company was in compliance with all covenants under the Credit Facility.

During the 13-week periods ended June 25, 2023 and June 26, 2022, the Company did not recognize interest expense related to draws on the revolving line of credit. During the 26-week periods ended June 25, 2023 and June 26, 2022, the Company recognized interest expense related to draws on the revolving line of credit of $7 and $0, respectively.

Leases - Summary of Operating and Finance Leases Future Undiscounted Cash Flows (Details) $ in Thousands	Jun. 25, 2023 USD ($)
Leases [Abstract]
Operating leases 2023	$ 503
Operating leases 2024	471
Operating leases 2025	338
Operating leases 2026	115
Operating leases 2027	0
Operating leases Thereafter	0
Total lease payments	1,427
Less imputed interest	(49)
Total present value of lease liabilities	1,378
Finance leases 2023	1,030
Finance leases 2024	2,060
Finance leases 2025	2,060
Finance leases 2026	2,060
Finance leases 2027	1,711
Finance leases Thereafter	0
Total lease payments	8,921
Less imputed interest	(1,098)
Total present value of lease liabilities	$ 7,823

Investment Securities - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 25, 2023 USD ($) Security Position	Jun. 26, 2022 USD ($)	Jun. 25, 2023 USD ($) Security Position	Jun. 26, 2022 USD ($)	Dec. 25, 2022 USD ($)
Schedule Of Available For Sale Securities [Line Items]
Proceeds from the sale of available-for-sale securities	$ 1,907,000	$ 0	$ 1,907,000	$ 0
Unrealized Losses	$ 1,245,000		$ 1,245,000		$ 2,024,000
Unrealized Loss Position greater than 12 months \| Position	57		57
Allowance for Credit Losses	$ 0		$ 0		$ 0
Maximum [Member]
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses	$ 77,000		$ 77,000
AFS Securities
Schedule Of Available For Sale Securities [Line Items]
Number of Securities Issuances for unrealized losses \| Security	69		69

Net Income (Loss) Per Share - Schedule of Excluded Common Shares Including at Anti-dilutive Effect (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	49,151	109,494	19,345	61,707
Options to Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	36,865	4,723	14,905	21,629
Unvested Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	12,286	104,771	4,440	40,078
Common Stock Issuable pursuant to the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount			0

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 25, 2023
Accounting Policies [Abstract]
Recently Adopted Accounting Pronouncements	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 25, 2022, and the notes thereto, which are included in our Annual Report. Except as described below, there have been no new accounting pronouncements adopted by the Company during the 26-week period ended June 25, 2023. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) and also issued subsequent amendments to the initial guidance, ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, ASU 2020-02, ASU 2020-03 and ASU 2022-02 (collectively, “Topic 326”), to introduce a new impairment model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Topic 326 requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The Company adopted ASU 2016-13 on December 26, 2022. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. There was no impact on the Company’s unaudited condensed consolidated financial statements at adoption. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which intends to simplify the guidance by removing certain exceptions to the general principles and clarifying or amending existing guidance. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company adopted ASU 2019-12 during fiscal year 2022 and there was no material impact on the Company’s consolidated financial statements for the year ended December 25, 2022 or on the unaudited condensed consolidated financial statements presented herein.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted None.

Nature of the Business and Basis of Presentation - Additional Information (Details)	6 Months Ended
	Jun. 25, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Date of incorporation	Jun. 06, 2013

Inventories

6 Months Ended

Jun. 25, 2023

Inventory Disclosure [Abstract]

Inventories

Note 8. Inventories

Inventory consisted of the following as of the periods presented:


	June 25, 2023			December 25, 2022
Eggs and egg-related products	$	27,336		$	13,675
Butter and butter-related products		5,653			5,718
Packaging		7,474			5,452
Pullets		401			981
Other		1,510			1,121
Reserve for inventory obsolescence		(269	)		(98	)
Inventories	$	42,105		$	26,849

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.

Investment Securities - Summary of Available-for-sale Investment Securities (Details) - USD ($)	Jun. 25, 2023	Dec. 25, 2022
Schedule Of Available For Sale Securities [Line Items]
Total available-for-sale Amortized Cost	$ 47,107,000	$ 67,834,000
Unrealized Gains	0	4,000
Unrealized Losses	(1,245,000)	(2,024,000)
Allowance for Credit Losses	0	0
Fair Value	45,862,000	65,814,000
U.S. corporate bonds and U.S. dollar denominated foreign bonds
Schedule Of Available For Sale Securities [Line Items]
Total available-for-sale Amortized Cost	47,107,000	66,658,000
Unrealized Gains	0	4,000
Unrealized Losses	(1,245,000)	(2,000,000)
Allowance for Credit Losses	0	0
Fair Value	$ 45,862,000	64,662,000
U.S. Treasury
Schedule Of Available For Sale Securities [Line Items]
Total available-for-sale Amortized Cost		1,176,000
Unrealized Gains		0
Unrealized Losses		(24,000)
Allowance for Credit Losses		0
Fair Value		$ 1,152,000

Leases (Tables)

6 Months Ended

Jun. 25, 2023

Leases [Abstract]

The components of lease cost, classified within cost of goods sold, selling, general and administrative and interest expense in the unaudited condensed consolidated statement of operations for the 13-week and 26-week periods ended June 25, 2023 and June 26, 2022 are below:


	13-Weeks Ended				26-Weeks Ended
	June 25, 2023		June 26, 2022		June 25, 2023		June 26, 2022
Operating lease cost	$	361	$	361	$	722	$	722
Finance lease cost – amortization of right-of-use assets		447		79		894		157
Finance lease cost – interest on lease liabilities		125		2		257		5
Short-term lease cost		305		11		422		14
Variable lease cost		2,115		652		3,678		1,070
Variable lease cost – long-term supply contracts		47,064		32,162		90,150		62,345
Total lease cost	$	50,417	$	33,267	$	96,123	$	64,313

Summary of Operating and Finance Leases Future Undiscounted Cash Flows

Future undiscounted cash flows are as follows:


	As of June 25, 2023
	Operating Leases			Finance Leases
2023	$	503		$	1,030
2024		471			2,060
2025		338			2,060
2026		115			2,060
2027		—			1,711
Thereafter		—			—
Total lease payments		1,427			8,921
Less imputed interest		(49	)		(1,098	)
Total present value of lease liabilities	$	1,378		$	7,823

Summary of Significant Accounting Policies

6 Months Ended

Jun. 25, 2023

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 25, 2022, and the notes thereto, which are included in our Annual Report. Other than the adoption of the new accounting pronouncements and standards as further described below, there have been no material changes to the Company’s significant accounting policies during the 26-week period ended June 25, 2023, except for the following.

As of December 26, 2022, the Company has entered into derivative instruments as part of its risk management strategy. Our business operations give rise to certain market risk exposures, mostly due to changes in commodity prices. We use derivative financial instruments to reduce our exposure to commodity price risk. Credit risks associated with derivative contracts are not significant, as the Company minimizes counterparty exposure by dealing with credit-worthy counterparties and collateralized insurers and by utilizing exchange traded instruments and insurance backed commodity settlement contracts. While the Company may be exposed to potential losses due to the credit risk of non-performance by these counterparties, losses are not anticipated. We do not hold derivative instruments for trading purposes. Additionally, the Company’s derivative contracts are short-term in duration, and do not make use of credit-risk-related contingent features.

Derivatives used to manage commodity price risk are not designated for hedge accounting treatment. Therefore, the changes in fair value of these derivatives are recorded as incurred within other expense, net in the unaudited condensed consolidated statements of operations. Cash flows related to derivative instruments are considered an investing activity of the Company. Cash settlements we receive represent realized gains on derivative instruments, while cash settlements we pay represent realized losses related to our commodity derivative instruments.

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 25, 2022, and the notes thereto, which are included in our Annual Report. Except as described below, there have been no new accounting pronouncements adopted by the Company during the 26-week period ended June 25, 2023.

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

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

Recently Issued Accounting Pronouncements Not Yet Adopted

None.

Common Stock

6 Months Ended

Jun. 25, 2023

Common Stock

Note 14. Common Stock

As of June 25, 2023, 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 41,232,667 shares were issued and outstanding.

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

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


	June 25, 2023		December 25, 2022
Options to purchase common stock		4,808,010		4,634,205
Restricted stock units		622,599		505,504
Shares available for grant under the 2020 Equity Incentive Plan and 2020 Employee Stock Purchase Plan		12,790,826		11,503,459
Total		18,221,435		16,643,168

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.

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Property, Plant and Equipment [Abstract]

Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 25, 2023

Schedule of Property, Plant and Equipment

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


	June 25, 2023			December 25, 2022
Land	$	552		$	552
Land improvements		835			835
Buildings and improvements		30,067			29,667
Vehicles		1,080			894
Machinery and equipment		37,487			34,978
Leasehold improvements		919			919
Furniture and fixtures		712			685
Construction in progress		3,569			3,312
		75,221			71,842
Less: Accumulated depreciation and amortization		(15,881	)		(12,687	)
Property, plant and equipment, net	$	59,340		$	59,155

Product Exit Costs - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 25, 2023	Dec. 25, 2022	Jun. 26, 2022
Restructuring and Related Activities [Abstract]
Liability balance related to exit	$ 45	$ 119	$ 250
Liability balance settled or released date	Sep. 24, 2023

Product Exit Costs

6 Months Ended

Jun. 25, 2023

Restructuring and Related Activities [Abstract]

Product Exit Costs

Note 12. Product Exit Costs

During the fiscal year ended December 25, 2022, the Company made the determination to exit its convenient breakfast product category due to a shift in the Company’s focus to product categories that are core to its operations. Charges incurred in connection with these product exits were substantially complete by December 25, 2022. Charges related to the exit of our ghee product category during 2023 are immaterial.

As of December 25, 2022, the ending liability balance related to the convenience breakfast category exit was $119. As of June 25, 2023, remaining liabilities of $45 are expected to be settled or released by the end of the 13-week period ending September 24, 2023.

The following tables summarize the activity related to the exit of the Company’s convenient breakfast product category during the periods presented:


		For the 26-Weeks Ended June 25, 2023
Description	Statement of Operations Classification	Beginning Liability Balance		Charges Incurred		Amounts Paid or Settled			Amounts Released as Unutilized		Ending Liability Balance
Asset write-downs	Cost of goods sold	$	119	$	—	$	(74	)	$	—	$	45
Total		$	119	$	—	$	(74	)	$	—	$	45


		For the 26-Weeks Ended June 26, 2022
Description	Statement of Operations Classification	Charges Incurred		Amounts Paid or Settled			Amounts Released as Unutilized		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

Commitments and Contingencies

6 Months Ended

Jun. 25, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 19. Commitments and Contingencies

Supplier Contracts: The Company purchases its egg inventories under long-term supply contracts with farms. Purchase commitments contained in these arrangements are variable dependent 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 and are also reported as part of our variable lease cost.

Transportation Agreement: During the 26-week period ended June 25, 2023, the Company entered into an amendment to a long-term transportation agreement commencing in the third quarter of fiscal year 2023. Future undiscounted minimum payments contained in this agreement are approximately $8.5 million over the remaining approximately four-year term of the original long-term transportation agreement.

Warehouse Agreement: During the 26-week period ended June 25, 2023, the Company entered into a warehouse infrastructure improvement agreement commencing in the third quarter of fiscal year 2023. Future undiscounted minimum payments contained in this agreement are approximately $0.8 million over an approximately three-year term.

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 25, 2023, the Company has not incurred any material costs as a result of such indemnification agreements.

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

On May 20, 2021, the Company and certain of its current and former officers were named as defendants in a class action complaint captioned Nicholas A. Usler et al. v. Vital Farms, Inc. et al. in the United States District Court for the Western District of Texas. The plaintiffs alleged false advertising claims on behalf of themselves and a putative class of alleged consumers of the Company’s eggs. The named officers of the Company were subsequently dismissed as defendants in this matter. The Company believes the claims are without merit and is vigorously defending itself in this matter. The parties have been engaged in discovery and have scheduled a mediation in September 2023 to discuss potential settlement of remaining claims. Given the uncertainty of the litigation, the stage of the case, and the legal standards that must be met for, among other things, class certification and success on the merits, the Company is unable to reasonably estimate the possible loss or range of loss, if any, that may result from the claim.

Although the Company maintains insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities and is subject to various exclusions and caps on amounts recoverable. Even if we believe a claim is covered by insurance, insurers may dispute our entitlement to recovery for a variety of potential reasons, which may affect the timing and, if the insurers prevail, the amount of our recovery. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the claim if the likelihood of a potential loss is reasonably possible.

Compensatory Arrangement of Certain Officers: On February 4, 2023, the board of directors of the Company appointed Thilo Wrede as Chief Financial Officer and principal financial officer of the Company, effective March 17, 2023 (the “Transition Date”). Mr. Wrede replaced Bo Meissner, who stepped down from his role as Chief Financial Officer and principal financial officer, effective as of the Transition Date. Mr. Meissner remained with the Company as an employee through April 30, 2023 (the “Departure Date”) to ensure a smooth leadership transition, after which he transitioned to a non-employee advisory role through July 31, 2023.

The Company entered into a transition agreement with Mr. Meissner, pursuant to which he continued to receive his current base salary and medical benefits. Following the Departure Date, in exchange for a general release of claims in favor of the Company, Mr. Meissner received severance benefits pursuant to the Company’s Severance Plan in the form of: (i) 12 months of his annual base salary over the twelve-month period following the Departure Date; (ii) his 2022 fiscal year bonus based on actual performance; and (iii) reimbursement of COBRA premiums for a period of up to 12 months. Mr. Meissner was retained through July 31, 2023 as a non-employee advisor for such transition services as may have been requested by the Company.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 6,683	$ 192	$ 13,833	$ (1,346)
Other comprehensive income (loss), before tax:
Unrealized net holding gain (loss)	128	(521)	645	(1,597)
Amounts reclassified for realized losses to earnings	95	20	129	70
Available-for-sale debt securities, before tax	223	(501)	774	(1,527)
Other comprehensive income (loss), before tax	223	(501)	774	(1,527)
Income tax (expense) benefit related to items of other comprehensive income (loss)	(61)	118	(191)	361
Other comprehensive income (loss), net of tax	162	(383)	583	(1,166)
Total comprehensive income (loss)	6,845	(191)	14,416	(2,512)
Less: Comprehensive loss attributable to noncontrolling interests	0	(7)	0	(8)
Comprehensive income (loss) attributable to Vital Farms, Inc. common stockholders	$ 6,845	$ (184)	$ 14,416	$ (2,504)

Common Stock - Schedule of Reserved Shares of Common Stock for Issuance (Details) - shares	Jun. 25, 2023	Dec. 25, 2022
Class Of Stock [Line Items]
Common stock for issuance	18,221,435	16,643,168
Employee Stock Option
Class Of Stock [Line Items]
Common stock for issuance	4,808,010	4,634,205
Restricted Stock Units
Class Of Stock [Line Items]
Common stock for issuance	622,599	505,504
Shares Available for Grant \| 2020 Equity Incentive Plan and 2020 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Common stock for issuance	12,790,826	11,503,459

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 25, 2023