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What changed in WEIS MARKETS INC's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of WEIS MARKETS INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+113 added−106 removedSource: 10-K (2024-02-28) vs 10-K (2023-03-01)

Top changes in WEIS MARKETS INC's 2023 10-K

113 paragraphs added · 106 removed · 85 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

18 edited+14 added−1 removed14 unchanged
Biggest changeThe Company believes that talent is a business differentiator and is committed to creating a sustainable competitive advantage through the selection, development and promotion of talented, highly motivated people. The Company believes that establishing a learning culture supports its commitment to be an employer of choice and helps drive customer engagement with its associates.
Biggest changeThe Company believes that establishing a learning culture supports its commitment to be an employer of choice and helps drive customer engagement with its associates. Improvements in the Company’s talent management and development will help drive business impact while providing internal career opportunities.
The Company is the exclusive licensee of nearly 100 trademarks registered and/or pending in the United States Patent and Trademark Office from WMK Holdings, Inc., including trademarks for its product lines and promotions such as Weis, Weis 2 Go, Weis Great Meals Start Here, Weis Gas-n-Go and Weis Nutri-Facts.
The Company is the exclusive licensee of nearly 125 trademarks registered and/or pending in the United States Patent and Trademark Office from WMK Holdings, Inc., including trademarks for its product lines and promotions such as Weis, Weis 2 Go, Weis Great Meals Start Here, Weis Gas-n-Go and Weis Nutri-Facts.
The Company’s store fleet includes a variety of sizes with a few locations in operation since the 1950’s; all stores are branded Weis Markets and provide the same basic offerings scaled to the size of each store.
The Company’s store fleet includes a variety of sizes with a few locations in operation since the 1950s; all stores are branded Weis Markets and provide the same basic offerings scaled to the size of each store.
Business: (continued) The Company strives to be good stewards of the environment and makes this an important part of its overall mission. Its sustainability strategy operates under four key pillars: green design, natural resource conservation, food and agricultural impact and social responsibility.
Business: (continued) The Company strives to be good stewards of the environment and makes this an important part of its overall mission. Its sustainability strategy operates under four key pillars: green design, natural resource conservation, food and agricultural impact and community impact.
The goal of the sustainability strategy is to reduce the Company’s overall carbon footprint by reducing greenhouse gas emissions and reducing the impact on climate change. The Company continues to be a member of the EPA GreenChill program for advancing environmentally beneficial refrigerant management systems.
The goal of the sustainability strategy is to reduce the Company’s overall carbon footprint by reducing greenhouse gas emissions and reducing the impact on the environment. The Company continues to be a member of the EPA GreenChill program for advancing environmentally beneficial refrigerant management systems.
Achieving the anticipated benefits may be subject to a number of significant challenges and uncertainties, including, without limitation, the possibility of imprecise assumptions underlying expectations regarding potential synergies and the integration process, unforeseen expenses and delays diverting management’s time and attention and competitive factors in the marketplace. 4 Table of Contents WEIS MARKETS, INC.
Achieving the anticipated benefits may be subject to a number of significant challenges and uncertainties, including, without limitation, the possibility of imprecise assumptions underlying expectations regarding potential 4 Table of Contents WEIS MARKETS, INC. Item 1a. Risk Factors: (continued) synergies and the integration process, unforeseen expenses and delays diverting Management’s time and attention and competitive factors in the marketplace.
The following schedule shows the changes in the number of retail food stores, total square footage and store additions/remodels as of year-end: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 2019 2018 Beginning store count 196 196 198 202 205 New/relocated stores 2 4 2 1 2 Closed/relocated stores (1) (4) (4) (5) (5) Ending store count 197 196 196 198 202 Total square feet (000’s), at year-end 9,710 9,617 9,568 9,642 9,800 Additions/major remodels 9 13 13 12 3 ​ Utilizing its own strategically located distribution center and transportation fleet, Weis Markets self distributes approximately 63% of product supplied to stores with the remaining being supplied by direct store vendors and regional wholesalers.
The following schedule shows the changes in the number of retail food stores, total square footage and store additions/remodels as of year-end: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 2020 2019 Beginning store count 197 196 196 198 202 New/relocated stores — 2 4 2 1 Closed/relocated stores — (1) (4) (4) (5) Ending store count 197 197 196 196 198 Total square feet (000’s), at year-end 9,710 9,710 9,617 9,568 9,642 Additions/major remodels 4 9 ​ 13 ​ 13 ​ 12 ​ Utilizing its own strategically located distribution center and transportation fleet, Weis Markets self distributes approximately 56% of product supplied to stores with the remaining being supplied by direct store vendors and regional wholesalers.
The following summarizes the number of stores by size categories as of year-end: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2022 2021 2021 Square feet ​ Number of stores ​ % of Total ​ Number of stores ​ % of Total Over 55,000 64 32% ​ 62 32% 45,000 to 54,999 70 36% ​ 70 35% 35,000 to 44,999 46 23% ​ 47 24% 25,000 to 34,999 12 6% ​ 12 6% Under 25,000 5 3% ​ 5 3% Total 197 100% ​ 196 100% ​ The Company believes that opening new stores and remodeling current stores are vital for future Company growth.
The following summarizes the number of stores by size categories as of year-end: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2023 2022 2022 Square feet ​ Number of stores ​ % of Total ​ Number of stores ​ % of Total Over 55,000 64 32% ​ 64 32% 45,000 to 54,999 70 36% ​ 70 36% 35,000 to 44,999 46 23% ​ 46 23% 25,000 to 34,999 12 6% ​ 12 6% Under 25,000 5 3% ​ 5 3% Total 197 100% ​ 197 100% ​ The Company believes that opening new stores and remodeling current stores are vital for future Company growth.
Generally, another fifteen to twenty percent of the capital expenditure budget is dedicated to store remodels while the remainder is attributable to supply chain, technology, smaller in-store sales-driven projects, store maintenance and store support function expenditures. See the “Liquidity and Capital Resources” section included in “Item 7.
Generally, another fifteen to twenty percent of the capital expenditure budget is dedicated to store remodels while the remainder is attributable to supply chain, technology, smaller in-store sales-driven projects, store maintenance and store support function expenditures.
The Company makes available, free of charge, on the “Investor Relations” page of its web site, its Annual Reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after the Company electronically files such material or furnishes it to the U.S.
The Company makes available, free of charge, on the “Investor Relations” page of its web site, its Annual Reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after the Company electronically files such 3 Table of Contents WEIS MARKETS, INC.
The Company continues to emphasize recycling in all areas, most recently noting a decrease in store waste where the Company has diverted 45 thousand tons of waste from landfills. These statistics and more can be found in the Company’s most recently published sustainability report, linked below in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The Company continues to emphasize recycling in all areas, most recently noting a decrease in store waste where the Company has diverted approximately 43 thousand tons of waste from landfills. These statistics and more can be found in the Company’s most recently published sustainability report, linked below in Item 7.
Approximately 97% of Weis Markets associates are paid an hourly wage. Trade Names and Trademarks. The Company has invested significantly in the development and protection of “Weis Markets” both as a trade name and a trademark and considers it to be an important asset.
The Company has invested significantly in the development and protection of “Weis Markets” both as a trade name and a trademark and considers it to be an important asset.
Securities and Exchange Commission (SEC) by clicking on the “SEC Information” link. 3 Table of Contents WEIS MARKETS, INC. Item 1. Business: (continued) The Company’s Corporate Governance materials can be found on the “Governance” page of its web site.
Item 1. Business: (continued) material or furnishes it to the U.S. Securities and Exchange Commission (SEC) by clicking on the “SEC Information” link. The Company’s Corporate Governance materials can be found on the “Governance” page of its web site.
The Company operates in a highly competitive marketplace. The number and the variety of competitors vary by market. The Company’s principal competition consists of international, national, regional and local food chains, as well as independent food stores. The Company also faces substantial competition from convenience stores, membership warehouse clubs, specialty retailers, supercenters and large-scale drug and pharmaceutical chains.
Management’s Discussion and Analysis of Financial Condition and Results of Operations. The Company operates in a highly competitive marketplace. The number and the variety of competitors vary by market. The Company’s principal competition consists of international, national, regional and local food chains, as well as independent food stores.
The Company believes that a strong employment brand is necessary to attract and retain top talent and affects its ability to compete and execute strategic plans. The Company will continue to assess and upgrade underlying technologies to support human capital development as a strategic imperative for future growth. The Company currently employs approximately 23,000 full-time and part-time associates.
The Company will continue to assess and upgrade underlying technologies to support human capital development as a strategic imperative for future growth. The Company currently employs approximately 23,000 full-time and part-time associates. Approximately 95% of Weis Markets associates are paid an hourly wage. Trade Names and Trademarks.
This competition is augmented by the food retail industry’s expansion into the online market in recent years. The Company continues to effectively compete by offering a strong combination of value, quality and service. The Company offers Weis 2 Go curbside pickup and delivery, further enhancing service offerings and providing additional convenience to customers. Human Capital.
The Company also faces substantial competition from convenience stores, membership warehouse clubs, specialty retailers, supercenters and large-scale drug and pharmaceutical chains. This competition is augmented by the food retail industry’s expansion into the online market in recent years. The Company continues to effectively compete by offering a strong combination of value, quality and service.
The Company currently has eighteen stores registered under this program and plans to expand this program to more stores. Since 2016, the Company has replaced 100% of its tractor fleet with more fuel-efficient and lower-emission tractors.
The Company currently has thirteen stores certified under this program and plans to expand this program to more stores. Since 2017, the Company has replaced 96% of its stores fluorescent lighting with more energy efficient and environmentally friendly LED lighting.
Improvements in the Company’s talent management and development will help drive business impact while providing internal career opportunities. The Company continues to grow leaders at every level throughout the organization by creating a culture of mentoring, coaching and leveraging on-the-job assignments for continued development.
The Company continues to grow leaders at every level throughout the organization by creating a culture of mentoring, coaching and leveraging on-the-job assignments for continued development. The Company believes that a strong employment brand is necessary to attract and retain top talent and affects its ability to compete and execute strategic plans.
Removed
Management’s Discussion and Analysis of the Financial Condition and Results of Operations” for more details regarding the Company’s capital expenditures.
Added
Significant labor and supply chain disruptions in 2022 and 2023 resulted in multiple store development and construction projects (new, relocated, addition, major remodel) to be carried over for completion in 2024 and 2025 as supply chain conditions stabilize.
Added
The Company has provided additional product offerings and customer conveniences such as “Weis 2 Go Online,” currently offered at 188 store locations. “Weis 2 Go Online” allows the customer to order on-line and have their order delivered or picked up at an expedient store drive-thru.
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The Company also currently offers home delivery to customers in all 197 of its locations via multiple grocery delivery partners. Human Capital. The Company believes that talent is a business differentiator and is committed to creating a sustainable competitive advantage through the selection, development and promotion of talented, highly motivated people.
Added
The Company’s investment portfolio may suffer losses from changes in market interest rates and changes in market conditions which could adversely affect results of operations and liquidity. The Company’s marketable securities consist of corporate and municipal bonds, commercial paper and equity securities. These investments are subject to general credit, liquidity, market and interest rate risks.
Added
As a result, the Company may experience a reduction in value or loss of liquidity from investments, which may have a negative impact on the Company’s financial condition and results of operations. Unexpected factors affecting self-insurance claims and reserve estimates could adversely affect the Company.
Added
The Company uses a combination of insurance and self-insurance to provide for potential liabilities for workers’ compensation, general liability, vehicle accident, property and associate medical benefit claims.
Added
Management estimates the liabilities associated with the risks retained by the Company, in part, by considering historical claims experience, demographic and severity factors and other actuarial assumptions which, by their nature, are subject to a high degree of variability. Any projection of losses concerning workers’ compensation and general liability is subject to a high degree of variability.
Added
Among the causes of this variability are unpredictable external factors affecting future inflation rates, litigation trends, legal interpretations, benefit level changes and claim settlement patterns. Information Security, Cybersecurity and Data Privacy Risks Disruptions or cybersecurity breaches in the Company’s information technology systems could adversely affect results of operations.
Added
The Company’s business is highly dependent on complex information technology systems that are vital to its continuing operations. If the Company was to experience difficulties maintaining existing systems or implementing new systems, significant losses could be incurred due to disruptions in its operations.
Added
Additionally, these systems contain valuable proprietary data as well as receipt and storage of personal information about its associates and customers, in particular electronic payment data and personal health information that, if breached, would have an adverse effect on the Company.
Added
Such an occurrence could adversely affect the Company’s reputation with its customers, associates, and vendors, as well as the Company’s financial condition, results of operations, and liquidity with potential litigation against the Company or the imposition of penalties.
Added
Supply Chain and Third-Party Risks The Company is affected by certain operating costs which could increase or fluctuate considerably, and other potential disruptions. Associate expenses contribute to the majority of the Company’s operating costs.
Added
The Company’s financial performance is potentially affected by increasing wage and benefit costs, a competitive labor market, regulatory wage increases and the risk of unionized labor disruptions of its non-union workforce. The Company’s profit is particularly sensitive to the cost of oil. Oil prices directly affect the Company’s product transportation costs, as well as its utility and petroleum-based supply costs.
Added
It also affects the costs of its suppliers, which impacts its cost of goods. Additionally, disruptions to the Company’s distribution of food products pose significant risks to the Company's operations. Various factors such as adverse weather conditions, food safety, and civil unrest could all contribute to such disruptions. 5 Table of Contents WEIS MARKETS, INC.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRisk Factors: (continued) The Company’s business and operations, and the operations of the Company’s suppliers, have been, and may in the future be adversely affected by epidemics or pandemics such as the novel Coronavirus (COVID-19) pandemic outbreak. The Company may face risks related to health epidemics and pandemics or other outbreaks of communicable diseases.
Biggest changeCurrently, one of the Company’s five directors is a member of the Weis family. 6 Table of Contents WEIS MARKETS, INC. Item 1a. Risk Factors: (continued) The Company’s business and operations, and the operations of the Company’s suppliers, have been, and may in the future be adversely affected by epidemics or pandemics such as the novel Coronavirus (COVID-19) pandemic outbreak.
Risk Factors: (continued) Legal, Regulatory and Other External Risks The trade area of the Company is located within a region and is subject to the economic, social and climate variables of that region. The majority of the Company’s stores are concentrated in central and northeast Pennsylvania, central Maryland, suburban Washington, DC and Baltimore regions and New York’s Southern Tier.
Legal, Regulatory and Other External Risks The trade area of the Company is located within a region and is subject to the economic, social and climate variables of that region. The majority of the Company’s stores are concentrated in central and northeast Pennsylvania, central Maryland, suburban Washington, DC and Baltimore regions and New York’s Southern Tier.
Currently, the Company benefits from a combination of its corporate structure and certain state tax laws. The Company is a controlled Company due to the common stock holdings of the Weis family. The Weis family’s share ownership represents approximately 65% of the combined voting power of the Company’s common stock as of December 31, 2022.
Currently, the Company benefits from a combination of its corporate structure and certain state tax laws. The Company is a controlled Company due to the common stock holdings of the Weis family. The Weis family’s share ownership represents approximately 65% of the combined voting power of the Company’s common stock as of December 30, 2023.
Changes in vendor promotions or allowances, including the way vendors target their promotional spending, and the Company’s ability to effectively manage these programs could significantly impact margins and profitability. The Company cooperatively engages in a variety of promotional programs with its vendors.
Item 1a. Risk Factors: (continued) Changes in vendor promotions or allowances, including the way vendors target their promotional spending, and the Company’s ability to effectively manage these programs could significantly impact margins and profitability. The Company cooperatively engages in a variety of promotional programs with its vendors.
Changes in economic and social conditions in the Company’s operating regions, including fluctuations in the inflation rate along with changes in population and employment and job growth rates and changes in government benefits such as SNAP/EBT or child care credits, affect customer shopping habits. Business disruptions due to weather and catastrophic events historically have been few.
Changes in economic and social conditions in the Company’s operating regions, including fluctuations in the inflation rate along with changes in population and employment and job growth rates and changes in government benefits such as SNAP/EBT or child care credits, affect customer shopping habits. Business disruptions due to weather and catastrophic events may also affect our business.
A reduction in overall promotional spending or a shift by vendors in promotional spending away from certain types of promotions that the Company and its customers have historically utilized could have a significant impact on profitability. 5 Table of Contents WEIS MARKETS, INC. Item 1a.
A reduction in overall promotional spending or a shift by vendors in promotional spending away from certain types of promotions that the Company and its customers have historically utilized could have a significant impact on profitability.
Management cannot assess the ultimate economic impact to the Company, which will be determined by, among other things, the length of time that such circumstances occur, nor can the Company predict the effects of governmental and public responses to changing conditions.
Management cannot assess the ultimate economic impact to the Company, which will be determined by, among other things, the length of time that such circumstances occur, nor can the Company predict the effects of governmental and public responses to changing conditions. The risks and uncertainties surrounding the coronavirus pandemic, as well as any future pandemics, are broad.
The global spread of COVID-19 created significant volatility, uncertainty and economic disruption. The Company’s business was deemed essential during the novel coronavirus pandemic and the Company is committed to maintaining a safe work and shopping environment.
The Company may face risks related to health epidemics and pandemics or other outbreaks of communicable diseases. The global spread of COVID-19 created significant volatility, uncertainty and economic disruption. The Company’s business was deemed essential during the novel coronavirus pandemic and the Company is committed to maintaining a safe work and shopping environment.
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Item 1a. Risk Factors: (continued) The Company’s investment portfolio may suffer losses from changes in market interest rates and changes in market conditions which could adversely affect results of operations and liquidity. The Company’s marketable securities consist of corporate and municipal bonds, commercial paper and equity securities. These investments are subject to general credit, liquidity, market and interest rate risks.
Removed
As a result, the Company may experience a reduction in value or loss of liquidity from investments, which may have a negative impact on the Company’s financial condition and results of operations. Unexpected factors affecting self-insurance claims and reserve estimates could adversely affect the Company.
Removed
The Company uses a combination of insurance and self-insurance to provide for potential liabilities for workers’ compensation, general liability, vehicle accident, property and associate medical benefit claims.
Removed
Management estimates the liabilities associated with the risks retained by the Company, in part, by considering historical claims experience, demographic and severity factors and other actuarial assumptions which, by their nature, are subject to a high degree of variability. Any projection of losses concerning workers’ compensation and general liability is subject to a high degree of variability.
Removed
Among the causes of this variability are unpredictable external factors affecting future inflation rates, litigation trends, legal interpretations, benefit level changes and claim settlement patterns. Information Security, Cybersecurity and Data Privacy Risks Disruptions or cybersecurity breaches in the Company’s information technology systems could adversely affect results of operations.
Removed
The Company’s business is highly dependent on complex information technology systems that are vital to its continuing operations. If the Company was to experience difficulties maintaining existing systems or implementing new systems, significant losses could be incurred due to disruptions in its operations.
Removed
Additionally, these systems contain valuable proprietary data as well as receipt and storage of personal information about its associates and customers, in particular electronic payment data and personal health information that, if breached, would have an adverse effect on the Company.
Removed
Such an occurrence could adversely affect the Company’s reputation with its customers, associates, and vendors, as well as the Company’s financial condition, results of operations, and liquidity with potential litigation against the Company or the imposition of penalties. Supply Chain and Third-Party Risks The Company is affected by certain operating costs which could increase or fluctuate considerably.
Removed
Associate expenses contribute to the majority of the Company’s operating costs. The Company’s financial performance is potentially affected by increasing wage and benefit costs, a competitive labor market, regulatory wage increases and the risk of unionized labor disruptions of its non-union workforce. The Company’s profit is particularly sensitive to the cost of oil.
Removed
Oil prices directly affect the Company’s product transportation costs, as well as its utility and petroleum-based supply costs. It also affects the costs of its suppliers, which impacts its cost of goods.
Removed
Currently, one of the Company’s five directors is a member of the Weis family. ​ 6 Table of Contents WEIS MARKETS, INC. Item 1a.
Removed
The risks and uncertainties surrounding the coronavirus pandemic, as well as any future pandemics, are broad; however, below is a list of risks management is monitoring which could have a material impact on the Company’s business: ● Employees – Reduced workforces due to the temporary inability to work caused by illness, quarantine, or government mandates. ● Supply Chain – Interruption in the Company’s supply chain due to the novel coronavirus. ● Lawsuits – Future litigation arising from issues concerning the novel coronavirus. ● Future government regulation – Future laws, regulations, interpretations, administrative orders, or applications that may have an adverse impact on the Company’s financial condition and liquidity. ● Customer trends – Changes in the methods in which customers procure the Company’s products. ● Cyber security – Increased cyber-attacks due to “work at home” requirements. ​ Item 1b.
Removed
Unresolved Staff Comments: There are no unresolved staff comments. ​

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties: As of December 31, 2022, the Company owned and operated 101 of its retail food stores and leased and operated 96 stores under operating leases that expire at various dates through 2036.
Biggest changeItem 2. Properties: As of December 30, 2023, the Company owned and operated 101 of its retail food stores and leased and operated 96 stores under operating leases that expire at various dates through 2036.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

11 edited+5 added−2 removed4 unchanged
Biggest changeMarcil was promoted to Senior Vice President of Human Resources. Prior to joining the Company, Mr. Marcil held senior level Human Resources positions with CVS and General Electric. (f) Kurt A. Schertle. Mr. Schertle joined the company in March 2009 as its Vice President of Sales and Merchandising, which included the responsibility of overseeing the Marketing Department.
Biggest changeSchertle joined the Company in March 2009 as its Vice President of Sales and Merchandising, which included the responsibility of overseeing the Marketing Department. In February 2010, Mr. Schertle was promoted to Senior Vice President of Sales and Merchandising. In July 2012, Mr.
Zeh was promoted to Senior Vice President, Chief Information Officer. Prior to joining the Company, Mr. Zeh was Chief Financial Officer of Mazzone Management Group. During his career, Mr.
Zeh joined the Company in September 2016 as Chief Information Officer. In February 2021, Mr. Zeh was promoted to Senior Vice President, Chief Information Officer. Prior to joining the Company, Mr. Zeh was Chief Financial Officer of Mazzone Management Group. During his career, Mr.
Gleeson joined the Company in October 2018 and was promoted to Vice President of Fresh Merchandising in July 2019. In March 2021, Mr. Gleeson was promoted to Senior Vice President of Merchandising and Marketing. Prior to joining the Company, Mr.
(j) 51 Senior Vice President, Chief Information Officer ​ (a) Robert G. Gleeson. Mr. Gleeson joined the Company in October 2018 and was promoted to Vice President of Fresh Merchandising in July 2019. In March 2021, Mr. Gleeson was promoted to Senior Vice President of Merchandising and Marketing. Prior to joining the Company, Mr.
In February 2010, Mr. Schertle was promoted to Senior Vice President of Sales and Merchandising. In July 2012, Mr. Schertle was promoted to Executive Vice President of Sales and Merchandising at which time, he assumed the additional responsibility of overseeing the Company’s Supply Chain. In September 2013, Mr. Schertle assumed the additional responsibility of overseeing Store Operations and Mr.
Schertle was promoted to Executive Vice President of Sales and Merchandising at which time, he assumed the additional responsibility of overseeing the Company’s Supply Chain. In September 2013, Mr. Schertle assumed the additional responsibility of overseeing Store Operations and Mr. Schertle was promoted to Chief Operating Officer in March 2014. In February 2024, Mr.
Weis became the Company’s interim President and Chief Executive Officer in September 2013 and was appointed as President and Chief Executive Officer in February 2014. The Board elected Mr. Weis as Chairman of the Board in April 2015. (h) Richard G. Zeh, Jr. Mr. Zeh joined the Company in September 2016 as Chief Information Officer. In February 2021, Mr.
In January of 2004, the Board appointed Mr. Weis as Vice Chairman and Secretary. Mr. Weis became the Company’s interim President and Chief Executive Officer in September 2013 and was appointed as President and Chief Executive Officer in February 2014. The Board elected Mr. Weis as Chairman of the Board in April 2015. (j) Richard G. Zeh, Jr. Mr.
Zeh has worked in senior finance and information technology positions in the food retail and service industries including as Vice President and Chief Information Officer at The Golub Corporation/ Price Chopper Supermarkets. ​ ​ PART II Item 5.
Zeh has worked in senior finance and information technology positions in the food retail and service industries including as Vice President and Chief Information Officer at The Golub Corporation/ Price Chopper Supermarkets. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 10 Table of Contents WEIS MARKETS, INC.
Graber, who served the Company as Vice President for Real Estate since 1996, was promoted to Senior Vice President of Real Estate and Development in February 2010. Mr. Graber was elected as Secretary of the Company in February 2014. (d) Michael T. Lockard. Mr.
Graber, who served the Company as Vice President for Real Estate since 1996, was promoted to Senior Vice President of Real Estate and Development in February 2010. Mr. Graber was elected as Secretary of the Company in February 2014. In February 2024, Mr. Graber announced his intention to retire from the Company, effective February 29, 2024. Upon Mr.
Gleeson (a) 57 Senior Vice President of Merchandising and Marketing David W. Gose II (b) 56 Senior Vice President of Operations Harold G. Graber (c) 67 Senior Vice President of Real Estate and Development, Secretary Michael T. Lockard (d) 53 Senior Vice President, Chief Financial Officer and Treasurer James E.
Gose II (b) 57 Senior Vice President of Operations Harold G. Graber (c) 68 Senior Vice President of Real Estate and Development, Secretary Michael T. Lockard (d) 54 Senior Vice President, Chief Financial Officer and Treasurer James E. Marcil (e) 65 Senior Vice President of Human Resources John F.
Weis served the Company as Vice President of Property Management and Development from 1996 until April 2002, at which time he was appointed as Vice President and Secretary. In January of 2004, the Board appointed Mr. Weis as Vice Chairman and Secretary. Mr.
Schertle was elected as Secretary of the Company upon Harold G. Graber’s retirement effective February 29, 2024. (i) Jonathan H. Weis. Mr. Weis joined the Company in 1989. Mr. Weis served the Company as Vice President of Property Management and Development from 1996 until April 2002, at which time he was appointed as Vice President and Secretary.
Item 4. Mine Safety Disclosures: Not Applicable. ​ 7 Table of Contents WEIS MARKETS, INC. Information about Our Executive Officers The following sets forth the names and ages of the Company’s executive officers as of March 1, 2023, indicating all positions held during the past five years: ​ ​ ​ ​ Name Age Title ​ ​ ​ Robert G.
Information about Our Executive Officers The following sets forth the names and ages of the Company’s executive officers as of February 28, 2024, indicating all positions held during the past five years: ​ ​ ​ ​ Name Age Title ​ ​ ​ Robert G. Gleeson (a) 58 Senior Vice President of Merchandising and Marketing David W.
Marcil (e) 64 Senior Vice President of Human Resources Kurt A. Schertle (f) 51 Chief Operating Officer Jonathan H. Weis (g) 55 Chairman of the Board, President and Chief Executive Officer Richard G. Zeh Jr. (h) 50 Senior Vice President, Chief Information Officer (a) Robert G. Gleeson. Mr.
O'Hara (f) 64 Senior Vice President of Legal Affairs & Real Estate, Assistant Secretary Jeanette R. Rogers (g) 49 Vice President, Corporate Controller, Assistant Treasurer Kurt A. Schertle (h) 52 Chief Operating Officer Jonathan H. Weis (i) 56 Chairman of the Board, President and Chief Executive Officer Richard G. Zeh Jr.
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Schertle was promoted to Chief Operating Officer in March 2014. 8 Table of Contents WEIS MARKETS, INC. Information about Our Executive Officers (continued) (g) Jonathan H. Weis. The Company has employed Mr. Weis since 1989. Mr.
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Item 4. Mine Safety Disclosures: Not Applicable. ​ ​ ​ ​ ​ ​ ​ ​ 8 Table of Contents WEIS MARKETS, INC.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities: The Company’s stock is traded on the New York Stock Exchange (ticker symbol WMK). The approximate number of shareholders, including individual participants in security position listings on March 1, 2023 was 13,868. 9 Table of Contents WEIS MARKETS, INC.
Added
Graber’s retirement announcement, John F. O’Hara is promoted to Senior Vice President of Legal Affairs and Real Estate, Assistant Secretary and Kurt A. Schertle was elected as Secretary of the Company upon Mr. Graber’s retirement effective February 29, 2024. Mr. Graber will continue to serve on the Board of Directors upon his retirement. (d) Michael T. Lockard. Mr.
Added
Marcil was promoted to Senior Vice President of Human Resources. Prior to joining the Company, Mr. Marcil held senior level Human Resources positions with CVS and General Electric. (f) John F. O’Hara. Mr. O’Hara joined the Company in January 2006 as Real Estate Manager. In June 2012, Mr. O’Hara was promoted to Vice President of Legal Affairs and Real Estate.
Added
Mr. O’Hara was elected as Assistant 9 Table of Contents WEIS MARKETS, INC. Secretary of the Company in February 2014. In February 2024, Mr. O’Hara was promoted to Senior Vice President of Legal Affairs and Real Estate, Assistant Secretary. (g) Jeanette R. Rogers. Ms. Rogers joined the Company in November 2013 as Corporate Controller. Ms.
Added
Rogers was appointed as Assistant Treasurer of the Company in February 2014. In August 2016, Ms. Rogers was promoted to Vice President, Corporate Controller, Assistant Treasurer. Prior to joining the Company, Ms. Rogers held various financial management positions with Foot Locker, Inc. (h) Kurt A. Schertle. Mr.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeComparative Five-Year Total Returns ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2017 2018 2019 2020 2021 2022 Weis Markets, Inc. 100.00 116.20 102.61 124.57 173.92 224.84 S&P 500 100.00 92.97 121.19 138.50 176.76 143.61 Peer Group 100.00 90.68 104.46 102.90 148.92 162.57 ​ ​ ​
Biggest changeComparative Five-Year Total Returns ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2018 2019 2020 2021 2022 2023 Weis Markets, Inc. 100.00 88.30 107.20 149.67 193.49 153.42 S&P 500 100.00 130.34 148.97 190.12 154.46 191.89 Peer Group 100.00 119.55 118.05 172.79 186.76 198.26 ​ ​ ​
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities: (continued) The following line graph compares the yearly percentage change in the cumulative total shareholder return on the Company’s common stock against the cumulative total return of the S&P Composite-500 Stock Index and the cumulative total return of a Company-selected group index that the Company deems most properly represents its “Peer Group”, for the period of five years.
The following line graph compares the yearly percentage change in the cumulative total shareholder return on the Company’s common stock against the cumulative total return of the S&P Composite-500 Stock Index and the cumulative total return of a Company-selected group index that the Company deems most properly represents its “Peer Group”, for the period of five years.
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Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities: The Company’s stock is traded on the New York Stock Exchange (ticker symbol WMK). The approximate number of shareholders, including individual participants in security position listings on February 28, 2024 was 11,987.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeThe following table provides the two-year stacked comparable store sales, excluding fuel and adjusted for an additional week in 2022 for the fiscal years ended December 31, 2022, and December 25, 2021, as well as fiscal years ended December 25, 2021, and December 26, 2020, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage Change ​ ​ ​ 2022 vs. 2021 ​ ​ 2021 vs. 2020 ​ Comparable store sales (individual year) ​ ​ 10.9 % ​ 1.7 % Comparable store sales (two-year stacked) ​ ​ 12.6 ​ ​ ​ ​ Comparable store sales, excluding fuel (individual year) ​ ​ 9.5 ​ ​ 0.2 ​ Comparable store sales, excluding fuel (two-year stacked) ​ ​ 9.7 ​ ​ ​ ​ Comparable store sales, adjusted for an additional week in 2022 (individual year) ​ ​ 8.8 ​ ​ 1.7 ​ Comparable store sales, adjusted for an additional week in 2022 (two-year stacked) ​ ​ 10.5 ​ ​ ​ ​ Comparable store sales, adjusted for an additional week in 2022, excluding fuel (individual year) ​ ​ 7.5 ​ ​ 0.2 % Comparable store sales, adjusted for an additional week in 2022, excluding fuel (two-year stacked) ​ ​ 7.7 % ​ ​ ​ The 2021 and 2020 years were comprised of 52 weeks, whereas the 2022 year was comprised of 53 weeks. 13 Table of Contents WEIS MARKETS, INC.
Biggest changeThe following table provides the two-year stacked comparable store sales, excluding fuel and adjusted for an additional week in 2022 for the fiscal years ended December 30, 2023, and December 31, 2022, as well as fiscal years ended December 31, 2022, and December 25, 2021, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage Change ​ ​ Year Ended ​ ​ ​ 2023 vs. 2022 ​ ​ 2022 vs. 2021 ​ Comparable store sales, adjusted for an additional week in 2022, excluding fuel (individual year) ​ ​ 2.3 % ​ 7.5 % Comparable store sales, adjusted for an additional week in 2022, excluding fuel (two-year stacked) ​ ​ 9.8 ​ ​ ​ ​ Comparable store sales, adjusted for an additional week in 2022 (individual year) ​ ​ 1.7 ​ ​ 8.8 ​ Comparable store sales, adjusted for an additional week in 2022 (two-year stacked) ​ ​ 10.5 ​ ​ ​ ​ Comparable store sales, excluding fuel (individual year) ​ ​ 0.3 ​ ​ 9.5 ​ Comparable store sales, excluding fuel (two-year stacked) ​ ​ 9.8 ​ ​ ​ ​ Comparable store sales (individual year) ​ ​ (0.2) ​ ​ 10.9 % Comparable store sales (two-year stacked) ​ ​ 10.7 % ​ ​ ​ The 2023 and 2021 years were comprised of 52 weeks, whereas the 2022 year was comprised of 53 weeks. 14 Table of Contents WEIS MARKETS, INC.
Its products sold include groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services at locations, deli products, prepared foods, bakery products, beer and wine, fuel, and general merchandise items, such as health and beauty care and household products.
Its products sold include groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services at certain locations, deli products, prepared foods, bakery products, beer and wine, fuel, and general merchandise items, such as health and beauty care and household products.
The Company will develop and cultivate a culture where it’s continually “on trend” with its consumers at the current time and where they are going next. The Company researches and studies the wants and needs of core consumers and casual consumers. It measures customer satisfaction and shares insights across the organization to improve communication between management and its consumers.
The Company will develop and cultivate a culture where it is continually “on trend” with its consumers at the current time and where they are going next. The Company researches and studies the wants and needs of core consumers and casual consumers. It measures customer satisfaction and shares insights across the organization to improve communication between Management and its consumers.
Company Overview General Weis Markets is a conventional supermarket chain that operates 197 retail stores with approximately 23 thousand associates located in Pennsylvania and six surrounding states: Delaware, Maryland, New Jersey, New York, Virginia, and West Virginia. Approximately 97% of Weis Markets associates are paid an hourly wage.
Company Overview General Weis Markets is a conventional supermarket chain that operates 197 retail stores with approximately 23 thousand associates located in Pennsylvania and six surrounding states: Delaware, Maryland, New Jersey, New York, Virginia, and West Virginia. Approximately 95% of Weis Markets associates are paid an hourly wage.
Utilizing its own strategically located distribution center and transportation fleet, Weis Markets self distributes approximately 63% of product supplied to stores with the remaining being supplied by direct store vendors and regional wholesalers. In addition, the Company has three manufacturing facilities which process milk, ice cream and fresh meat products.
Utilizing its own strategically located distribution center and transportation fleet, Weis Markets self distributes approximately 56% of product supplied to stores with the remaining being supplied by direct store vendors and regional wholesalers. In addition, the Company has three manufacturing facilities which process milk, water, ice, ice cream and fresh meat products.
As part of this strategy, management is committed to offering its customers a strong combination of quality, service and value. 12 Table of Contents WEIS MARKETS, INC. Item 7.
As part of this strategy, Management is committed to offering its customers a strong combination of quality, service and value. 13 Table of Contents WEIS MARKETS, INC. Item 7.
Its sustainability strategy operates under four key pillars: green design, natural resource conservation, food and agricultural impact and social responsibility. The goal of the sustainability strategy is to reduce the Company’s overall carbon footprint by reducing greenhouse gas emissions and reducing the impact on climate change. The Company’s most recently published sustainability report is located at: https://www.weismarkets.com/sustainability.
Its sustainability strategy operates under four key pillars: green design, natural resource conservation, food and agricultural impact and community impact. The goal of the sustainability strategy is to reduce the Company’s overall carbon footprint by reducing greenhouse gas emissions and reducing the impact on the environment. The Company’s most recently published sustainability report is located at: https://www.weismarkets.com/sustainability.
Item 6. [Reserved] ​ ​ 10 Table of Contents WEIS MARKETS, INC. ​ Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations: Overview The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand Weis Markets, Inc., its operations and its present business environment.
Management’s Discussion and Analysis of Financial Condition and Results of Operations: Overview The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand Weis Markets, Inc., its operations and its present business environment.
It is not recommended that this table be considered a substitute for the Company’s operating results as reported in accordance with GAAP. Year-over-year and sequential comparisons are the primary calculations used to analyze operating results, however, due to significant fluctuations caused by the novel coronavirus pandemic management believes it is necessary to provide a Two-Year Stacked Comparable Store Sales analysis.
Year-over-year and sequential comparisons are the primary calculations used to analyze operating results, however, due to significant fluctuations caused by the COVID-19 pandemic, inflation and declining government benefits, Management believes it is necessary to provide a Two-Year Stacked Comparable Store Sales analysis.
The Company began offering home delivery during the third quarter of 2018 and currently offers this convenience to customers in 195 different locations via Shipt®, DoorDash®, and InstaCart®.
The Company also currently offers home delivery to customers in all 197 of its locations via multiple grocery delivery partners.
In 2022, the Company offered Weis 2 Go Online in 188 of its locations, adding 2 stores since the end of 2021. Weis 2 Go Online allows the customer to order on-line and then pick up their order at a drive-thru location at the store.
Management's Discussion and Analysis of Financial Condition and Results of Operations: (continued) Company Overview (continued) The Company has provided additional product offerings and customer conveniences such as “Weis 2 Go Online,” currently offered at 188 store locations. “Weis 2 Go Online” allows the customer to order on-line and have their order delivered or picked up at an expedient store drive-thru.
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The corporate offices are located in Sunbury, Pennsylvania where the Company was founded in 1912. The COVID-19 pandemic resulted in government mandated shutdowns in early 2020, as well as multiple legislative acts to provide emergency economic assistance for individuals, families and businesses affected by the novel coronavirus pandemic.
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Item 6. [Reserved] ​ ​ ​ ​ ​ 11 Table of Contents WEIS MARKETS, INC. ​ Item 7.
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These events were accretive to the Company’s sales and gross profits compared to the time periods preceding the impact of the novel coronavirus pandemic. 11 Table of Contents WEIS MARKETS, INC. Item 7.
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The corporate offices are located in Sunbury, Pennsylvania where the Company was founded in 1912. ​ 12 Table of Contents WEIS MARKETS, INC. Item 7.
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Management's Discussion and Analysis of Financial Condition and Results of Operations: (continued) Company Overview (continued) The Company continues to innovate and remain relevant to industry trends and offer customer convenience by presenting programs like “Weis 2 Go Online” and home delivery.
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It is not recommended that this table be considered a substitute for the Company’s operating results as reported in accordance with GAAP.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe Company only includes retail food stores in the calculation. ​ ​ Analysis of Consolidated Statements of Income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage Change ​ (amounts in thousands except per share amounts) ​ 2022 ​ 2021 ​ 2020 ​ 2022 vs. ​ 2021 vs. ​ For the Fiscal Years Ended December 31, 2022, December 25, 2021 and December 26, 2020 (53 Weeks) (52 Weeks) (52 Weeks) 2021 2020 ​ Net sales ​ $ 4,695,943 ​ $ 4,224,417 ​ $ 4,112,601 ​ 11.2 % 2.7 % Cost of sales, including advertising, warehousing and distribution expenses ​ ​ 3,514,029 ​ ​ 3,108,710 ​ ​ 3,012,167 ​ 13.0 ​ 3.2 ​ Gross profit on sales ​ ​ 1,181,914 ​ ​ 1,115,707 ​ ​ 1,100,434 ​ 5.9 ​ 1.4 ​ Gross profit margin ​ ​ 25.2 % ​ 26.4 % ​ 26.8 % ​ ​ ​ ​ Operating, general and administrative expenses ​ ​ 1,024,862 ​ ​ 968,996 ​ ​ 937,256 ​ 5.8 ​ 3.4 ​ O, G & A, percent of net sales ​ ​ 21.8 % ​ 22.9 % ​ 22.8 % ​ ​ ​ ​ Income from operations ​ ​ 157,052 ​ ​ 146,711 ​ ​ 163,178 ​ 7.0 ​ (10.1) ​ Operating margin ​ ​ 3.3 % ​ 3.5 % ​ 4.0 % ​ ​ ​ ​ Investment income (loss) and interest expense ​ ​ (82) ​ ​ 5,007 ​ ​ 3,817 ​ (101.6) ​ 31.2 ​ Investment income (loss) and interest expense, percent of net sales ​ ​ - % ​ 0.1 % ​ 0.1 % ​ ​ ​ ​ Other income (expense) ​ ​ 3,807 ​ ​ (3,411) ​ ​ (3,316) ​ 211.6 ​ 2.9 ​ Other income (expense), percent of net sales ​ ​ 0.1 % ​ (0.1) % ​ (0.1) % ​ ​ ​ ​ Income before provision for income taxes ​ ​ 160,777 ​ ​ 148,307 ​ ​ 163,679 ​ 8.4 ​ (9.4) ​ Income before provision for income taxes, percent of net sales ​ ​ 3.4 % ​ 3.5 % ​ 4.0 % ​ ​ ​ ​ Provision for income taxes ​ ​ 35,581 ​ ​ 39,458 ​ ​ 44,762 ​ (9.8) ​ (11.8) ​ Effective income tax rate ​ ​ 22.1 % ​ 26.6 % ​ 27.3 % ​ ​ ​ ​ Net income ​ $ 125,196 ​ $ 108,849 ​ $ 118,917 ​ 15.0 % (8.5) % Net income, percent of net sales ​ ​ 2.7 % ​ 2.6 % ​ 2.9 % ​ ​ ​ ​ Basic and diluted earnings per share ​ $ 4.65 ​ $ 4.05 ​ $ 4.42 ​ 14.8 % (8.4) % ​ Net Sales Individual Year-Over-Year Analysis of Sales ​ ​ ​ ​ ​ ​ ​ Percentage Change ​ ​ 2022 vs. ​ 2021 vs. ​ ​ 2021 2020 ​ Net sales 11.2 % 2.7 % Net sales, excluding fuel ​ 9.6 ​ 1.2 ​ Net sales, adjusted for an additional week in 2022 ​ 8.8 ​ ​ ​ Net sales, adjusted for an additional week in 2022, excluding fuel ​ 7.5 ​ ​ ​ Comparable store sales ​ 10.9 ​ 1.7 ​ Comparable store sales, excluding fuel ​ 9.5 % 0.2 % The 2021 and 2020 years were comprised of 52 weeks, whereas the 2022 year was comprised of 53 weeks. ​ When calculating the percentage change in comparable store sales, the Company defines a new store to be comparable when it has been in operation after five full fiscal quarters.
Biggest changeThe Company only includes retail food stores in the calculation. ​ ​ Analysis of Consolidated Statements of Income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage Change ​ (amounts in thousands except per share amounts) ​ 2023 ​ 2022 ​ 2021 ​ 2023 vs. ​ 2022 vs. ​ For the Fiscal Years Ended December 30, 2023, December 31, 2022 and December 25, 2021 (52 Weeks) (53 Weeks) (52 Weeks) 2022 2021 ​ Net sales ​ $ 4,696,950 ​ $ 4,695,943 ​ $ 4,224,417 ​ 0.0 % 11.2 % Cost of sales, including advertising, warehousing and distribution expenses ​ ​ 3,535,009 ​ ​ 3,514,029 ​ ​ 3,108,710 ​ 0.6 ​ 13.0 ​ Gross profit on sales ​ ​ 1,161,941 ​ ​ 1,181,914 ​ ​ 1,115,707 ​ (1.7) ​ 5.9 ​ Gross profit margin ​ ​ 24.7 % ​ 25.2 % ​ 26.4 % ​ ​ ​ ​ Operating, general and administrative expenses ​ ​ 1,024,755 ​ ​ 1,024,862 ​ ​ 968,996 ​ (0.0) ​ 5.8 ​ O, G & A, percent of net sales ​ ​ 21.8 % ​ 21.8 % ​ 22.9 % ​ ​ ​ ​ Income from operations ​ ​ 137,186 ​ ​ 157,052 ​ ​ 146,711 ​ (12.6) ​ 7.0 ​ Operating margin ​ ​ 2.9 % ​ 3.3 % ​ 3.5 % ​ ​ ​ ​ Investment income (loss) and interest expense ​ ​ 13,162 ​ ​ (82) ​ ​ 5,007 ​ 16151.2 ​ (101.6) ​ Investment income (loss) and interest expense, percent of net sales ​ ​ 0.3 % ​ 0.0 % ​ 0.1 % ​ ​ ​ ​ Other income (expense) ​ ​ (3,652) ​ ​ 3,807 ​ ​ (3,411) ​ (195.9) ​ 211.6 ​ Other income (expense), percent of net sales ​ ​ (0.1) % ​ 0.1 % ​ (0.1) % ​ ​ ​ ​ Income before provision for income taxes ​ ​ 146,696 ​ ​ 160,777 ​ ​ 148,307 ​ (8.8) ​ 8.4 ​ Income before provision for income taxes, percent of net sales ​ ​ 3.1 % ​ 3.4 % ​ 3.5 % ​ ​ ​ ​ Provision for income taxes ​ ​ 42,868 ​ ​ 35,581 ​ ​ 39,458 ​ 20.5 ​ (9.8) ​ Effective income tax rate ​ ​ 29.2 % ​ 22.1 % ​ 26.6 % ​ ​ ​ ​ Net income ​ $ 103,828 ​ $ 125,196 ​ $ 108,849 ​ (17.1) % 15.0 % Net income, percent of net sales ​ ​ 2.2 % ​ 2.7 % ​ 2.6 % ​ ​ ​ ​ Basic and diluted earnings per share ​ $ 3.86 ​ $ 4.65 ​ $ 4.05 ​ (17.0) % 14.8 % ​ Net Sales Individual Year-Over-Year Analysis of Sales ​ ​ ​ ​ ​ ​ ​ Percentage Change ​ ​ 2023 vs. ​ 2022 vs. ​ ​ 2022 2021 ​ Net sales, adjusted for an additional week in 2022, excluding fuel ​ 2.6 % 7.5 % Net sales, adjusted for an additional week in 2022 ​ 1.9 ​ 8.8 ​ Net sales, excluding fuel ​ 0.6 ​ 9.6 ​ Net sales 0.0 ​ 11.2 ​ Comparable store sales excluding fuel ​ 0.3 ​ 9.5 ​ Comparable store sales ​ (0.2) % 10.9 % The 2023 and 2021 years were comprised of 52 weeks, whereas the 2022 year was comprised of 53 weeks. ​ When calculating the percentage change in comparable store sales, the Company defines a new store to be comparable when it has been in operation after five full fiscal quarters.
Relocated stores and stores with expanded square footage are included in comparable store sales since these units are located in existing markets and are open during construction. Planned store dispositions are excluded from the calculation. The Company only includes retail food stores in the calculation. 14 Table of Contents WEIS MARKETS, INC. Item 7.
Relocated stores and stores with expanded square footage are included in comparable store sales since these units are located in existing markets and are open during construction. Planned store dispositions are excluded from the calculation. The Company only includes retail food stores in the calculation. 15 Table of Contents WEIS MARKETS, INC. Item 7.
Management cannot accurately measure the full impact of inflation or deflation on retail pricing due to changes in the types of merchandise sold between periods, shifts in customer buying patterns and the fluctuation of competitive factors. 15 Table of Contents WEIS MARKETS, INC. Item 7.
Management cannot accurately measure the full impact of inflation or deflation on retail pricing due to changes in the types of merchandise sold between periods, shifts in customer buying patterns and the fluctuation of competitive factors. 16 Table of Contents WEIS MARKETS, INC. Item 7.
The Company pays these dividends at the discretion of the Board of Directors and the continuation of these payments and the amount of the dividends depends upon the financial condition of the Company, results of operations and other factors which the Board of Directors deems relevant. ​ 17 Table of Contents WEIS MARKETS, INC. Item 7.
The Company pays these dividends at the discretion of the Board of Directors and the continuation of these payments and the amount of the dividends depends upon the financial condition of the Company, results of operations and other factors which the Board of Directors deems relevant. ​ 18 Table of Contents WEIS MARKETS, INC. Item 7.
The assessment of the Company’s tax position relies on the judgment of management to estimate the more likely than not merits associated with the Company’s various tax positions. 19 Table of Contents WEIS MARKETS, INC. Item 7.
The assessment of the Company’s tax position relies on the judgment of Management to estimate the more likely than not merits associated with the Company’s various tax positions. 20 Table of Contents WEIS MARKETS, INC. Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations: (continued) Results of Operations (continued) Net Sales (continued) According to the latest U.S. Bureau of Labor Statistics’ report, the annual Seasonally Adjusted Food-at-Home Consumer Price Index increased 11.4% in 2022, 3.5% in 2021 and 3.5% in 2020. Even though the U.S.
Management's Discussion and Analysis of Financial Condition and Results of Operations: (continued) Results of Operations (continued) Net Sales (continued) According to the latest U.S. Bureau of Labor Statistics’ report, the annual Seasonally Adjusted Food-at-Home Consumer Price Index increased 5.0% in 2023, 11.4% in 2022, 3.5% in 2021. Even though the U.S.
Depreciation and amortization expense charged to “Operating, general and administrative expenses” was $94.6 million, or 2.0% of net sales, for 2022 compared to $93.8 million, or 2.2% of net sales, for 2021 and $90.2 million, or 2.2% of net sales, for 2020. See the Liquidity and Capital Resources section for further information regarding the Company’s capital expenditure program.
Depreciation and amortization expense charged to “Operating, general and administrative expenses” was $98.0 million, or 2.1% of net sales, for 2023 compared to $94.6 million, or 2.0% of net sales, for 2022 compared to $93.8 million, or 2.2% of net sales, for 2021. See the Liquidity and Capital Resources section for further information regarding the Company’s capital expenditure program.
Financing The Company paid dividends of $35.0 million in 2022, $33.6 million in 2021 and $33.4 million in 2020. The Company increased its quarterly dividend from 32 cents per share to 34 cents per share in the fourth quarter of 2022.
Financing The Company paid dividends of $36.6 million in 2023, $35.0 million in 2022 and $33.6 million in 2021. The Company increased its quarterly dividend from 32 cents per share to 34 cents per share in the fourth quarter of 2022.
Employee-related costs such as wages, employer paid taxes, health care benefits and retirement plans, comprise approximately 60.7% of the total “Operating, general and administrative expenses.” As a percent of sales, direct store labor decreased 0.5% in 2022 compared to 2021 and decreased 0.1% in 2021 compared to 2020.
Employee-related costs such as wages, employer paid taxes, health care benefits and retirement plans, comprise approximately 59.9% of the total “Operating, general and administrative expenses.” As a percent of sales, direct store labor increased 0.1% in 2023 compared to 2022 and decreased 0.5% in 2022 compared to 2021.
The Company’s investment portfolio consists of high-grade bonds with maturity dates between one and 20 years and four high yield, large capitalized public company equity securities. The portfolio totaled $186.4 million as of December 31, 2022. Management anticipates maintaining the investment portfolio but has the ability to liquidate if needed. See “Item 7a.
The Company’s investment portfolio consists of high-grade bonds with maturity dates between one and 30 years and four high yield, large capitalized public company equity securities. The portfolio totaled $226.0 million as of December 30, 2023. Management anticipates maintaining the investment portfolio but has the ability to liquidate if needed. See “Item 7a.
Bureau of Labor Statistics’ index rates may be reflective of a trend, it will not necessarily be indicative of the Company’s actual results. According to the U.S. Department of Energy, the 53-week average price of gasoline in the Central Atlantic States increased 31.4%, or $1.00 per gallon, in 2022 compared to the 52-week average in 2021.
Bureau of Labor Statistics’ index rates may be reflective of a trend, it will not necessarily be indicative of the Company’s actual results. According to the U.S. Department of Energy, the 52-week average price of gasoline in the Central Atlantic States decreased 10.1%, or $0.42 cents per gallon, in 2023 compared to the 53-week average in 2022.
Gross profit rate was 25.2% in 2022, 26.4% in 2021 and 26.8% in 2020. The decrease in gross profit rate is attributable to sales deleverage, primarily in fresh selling departments; increased pharmacy and fuel sales, which have a lower gross profit margin than grocery sales; and higher product and supply chain costs.
Gross profit rate was 24.7% in 2023, 25.2% in 2022, 26.4% in 2021. The decrease in gross profit rate is attributable to increased pharmacy and fuel sales, which have a lower gross profit margin than grocery sales; and higher product and supply chain costs.
The Company experienced unfavorable non-cash LIFO inventory valuation adjustments, decreasing gross profit by $29.2 million and $4.0 million in 2022 and 2021, respectively. A favorable non-cash LIFO inventory valuation adjustment increased gross profit by $275 thousand in 2020. The Company has experienced retail inflation and deflation in various commodities for the periods presented.
The Company experienced unfavorable non-cash LIFO inventory valuation adjustments, decreasing gross profit by $6.7 million, $29.2 million and $4.0 million in 2023, 2022 and 2021, respectively. The Company has experienced retail inflation and deflation in various commodities for the periods presented.
Readers should carefully review the risk factors described in other documents the Company files periodically with the Securities and Exchange Commission. ​
Readers should carefully review the risk factors described in other documents the Company files periodically with the Securities and Exchange Commission. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 21 Table of Contents WEIS MARKETS, INC. ​
The Credit Agreement matures on September 1, 2024 and provides for an unsecured revolving credit facility with an aggregate principal amount not to exceed $30.0 million with an additional discretionary amount available of $70.0 million. As of December 31, 2022, the availability under the revolving credit agreement was $25.5 million with $4.5 million of letters of credit outstanding.
The Credit Agreement matures on October 1, 2027, and provides for an unsecured revolving credit facility with an aggregate principal amount not to exceed $30.0 million with an additional discretionary amount available of $70.0 million. As of December 30, 2023, the availability under the revolving credit agreement was $22.3 million with $7.7 million of letters of credit outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations: (continued) Results of Operations (continued) Cash Flow Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Fiscal Years Ended December 31, 2022, ​ 2022 ​ 2021 ​ 2020 ​ 2022 vs. ​ 2021 vs. ​ December 25, 2021 and December 26, 2020 (53 Weeks) ​ (52 weeks) ​ (52 weeks) ​ 2021 ​ 2020 ​ Net cash provided by (used in): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating activities ​ $ 218,024 ​ $ 227,709 ​ $ 277,990 ​ $ (9,685) ​ $ (50,281) ​ Investing activities ​ ​ (111,107) ​ ​ (244,650) ​ ​ (174,895) ​ ​ 133,543 ​ ​ (69,755) ​ Financing activities ​ ​ (34,968) ​ ​ (33,623) ​ ​ (33,354) ​ ​ (1,345) ​ ​ (269) ​ ​ Operating Cash flows from operating activities decreased in 2022 as compared to 2021 and 2021 as compared to 2020, respectively.
Management's Discussion and Analysis of Financial Condition and Results of Operations: (continued) Results of Operations (continued) Cash Flow Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Fiscal Years Ended December 30, 2023, ​ 2023 ​ 2022 ​ 2021 ​ 2023 vs. ​ 2022 vs. ​ December 31, 2022 and December 25, 2021 (52 weeks) ​ (53 Weeks) ​ (52 weeks) ​ 2022 ​ 2021 ​ Net cash provided by (used in): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating activities ​ $ 201,602 ​ $ 218,024 ​ $ 227,709 ​ $ (16,422) ​ $ (9,685) ​ Investing activities ​ ​ (138,800) ​ ​ (111,107) ​ ​ (244,650) ​ ​ (27,693) ​ ​ 133,543 ​ Financing activities ​ ​ (36,582) ​ ​ (34,968) ​ ​ (33,623) ​ ​ (1,614) ​ ​ (1,345) ​ ​ Operating Cash flows from operating activities decreased in 2023 as compared to 2022 and 2021, respectively.
Contractual Obligations The following table represents scheduled maturities of the Company’s long-term contractual obligations as of December 31, 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments due by period ​ ​ ​ ​ ​ Less than ​ ​ ​ ​ ​ ​ ​ More than (dollars in thousands) Total 1 year 1-3 years 3-5 years 5 years Operating leases ​ $ 208,567 ​ $ 48,090 ​ $ 77,954 ​ $ 45,846 ​ $ 36,677 Total ​ $ 208,567 ​ $ 48,090 ​ $ 77,954 ​ $ 45,846 ​ $ 36,677 ​ Off-Balance Sheet Arrangements The Company is not a party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the Company’s financial condition, results of operations or cash flows. 18 Table of Contents WEIS MARKETS, INC.
Contractual Obligations The following table represents scheduled maturities of the Company’s long-term contractual obligations as of December 30, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments due by period ​ ​ ​ ​ ​ Less than ​ ​ ​ ​ ​ ​ ​ More than (dollars in thousands) Total 1 year 1-3 years 3-5 years 5 years Operating leases ​ $ 209,042 ​ $ 47,918 ​ $ 80,001 ​ $ 47,902 ​ $ 33,220 Total ​ $ 209,042 ​ $ 47,918 ​ $ 80,001 ​ $ 47,902 ​ $ 33,220 ​ Off-Balance Sheet Arrangements The Company is not a party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the Company’s financial condition, results of operations or cash flows. 19 Table of Contents WEIS MARKETS, INC.
A breakdown of the material increases (decreases) as a percent of sales in "Operating, general and administrative expenses" is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 vs. 2021 ​ (amounts in thousands) ​ Increase ​ Increase (Decrease) ​ December 31, 2022 (Decrease) as a % of sales ​ Employee expense ​ $ 18,910 ​ (1.0) % Utilities expense ​ ​ 12,375 ​ 0.2 ​ Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs) ​ ​ 5,389 ​ (0.3) ​ Other expenses (financial service fees, technology, repairs and maintenance, supplies) ​ ​ 21,209 ​ 0.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 vs. 2020 ​ (amounts in thousands) ​ Increase ​ Increase (Decrease) ​ December 25, 2021 (Decrease) as a % of sales ​ Employee expense ​ $ 5,517 ​ (0.2) % Utilities expense ​ ​ 3,819 ​ 0.1 ​ Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs) ​ ​ 4,007 ​ (0.1) ​ Other expenses (financial service fees, technology, repairs and maintenance, supplies) ​ ​ 11,564 ​ 0.2 ​ ​ The majority of the increases in other expenses from 2020 to 2021 and 2022 were higher financial service fees due to more sales transaction dollars paid with debit and credit cards and higher information technology expenses due to more third-party subscription and consulting services. 16 Table of Contents WEIS MARKETS, INC.
A breakdown of the material increases (decreases) as a percent of sales in "Operating, general and administrative expenses" is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 vs. 2022 ​ (amounts in thousands) ​ Increase ​ Increase (Decrease) ​ December 30, 2023 (Decrease) as a % of sales ​ Associate insurance benefits expense ​ $ (6,338) ​ (0.1) % Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs) ​ ​ 3,999 ​ 0.1 ​ Repairs and maintenance expense ​ ​ 3,563 ​ 0.1 ​ Other expenses (Employee expense, utilities, technology, asset disposals and insurance proceeds) ​ ​ (1,324) ​ (0.1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 vs. 2021 ​ (amounts in thousands) ​ Increase ​ Increase (Decrease) ​ December 31, 2022 (Decrease) as a % of sales ​ Employee expense ​ $ 18,910 ​ (1.0) % Utilities expense ​ ​ 12,375 ​ 0.2 ​ Fixed expense (amortization, depreciation, insurance expenses, and occupancy costs) ​ ​ 5,389 ​ (0.3) ​ Other expenses (financial service fees, technology, repairs and maintenance, supplies) ​ ​ 21,209 ​ 0.1 ​ ​ The majority of the increases in other expenses from 2022 to 2023 were technology expenses due to more third-party information technology subscription and consulting services and less asset disposals and insurance proceeds.
Management cannot accurately measure the full impact of inflation or deflation on retail pricing due to changes in the types of merchandise sold between periods, shifts in customer buying patterns and the fluctuation of competitive factors. In addition, impacts of the novel coronavirus pandemic have caused uncertainty about future economic conditions and may change future product mix.
Management cannot accurately measure the full impact of inflation or deflation on retail pricing due to changes in the types of merchandise sold between periods, shifts in customer buying patterns and the fluctuation of competitive factors.
As a percentage of sales, capital expenditures totaled 2.5% in 2022, 3.6% in 2021 and 3.2% in 2020. Multiple projects from 2022 are expected to be completed in 2023 due to labor and supply chain disruptions. The Company significantly increased its marketable securities holdings in 2021 by approximately $96.6 million and in 2022, the Company maintained its marketable securities portfolio.
Multiple projects from 2022 and 2023 are expected to be completed in 2024 due to labor and supply chain disruptions. The Company significantly increased its marketable securities holdings in 2023 by approximately $39.5 million and in 2022 the Company maintained its marketable securities portfolio.
In addition, the Company has access to a revolving credit agreement entered into on September 1, 2016, and amended on September 29, 2021, with Wells Fargo Bank, N.A. (the “Credit Agreement”).
Liquidity and Capital Resources The primary source of cash is cash flows generated from operations. In addition, the Company has access to a revolving credit agreement entered into on September 1, 2016, and amended on September 29, 2023, with Wells Fargo Bank, N.A. (the “Credit Agreement”).
The Company expects to continue paying regular cash dividends on a quarterly basis. However, the Board of Directors reconsiders the declaration of dividends quarterly.
The Company increased its quarterly dividend from 32 cents per share to 34 cents per share in the fourth quarter of 2022. The Company expects to continue paying regular cash dividends on a quarterly basis. However, the Board of Directors reconsiders the declaration of dividends quarterly.
The 52-week average price of gasoline in the Central Atlantic States, according to the U.S. Department of Energy, increased 31.2%, or $0.76 per gallon, in 2021 compared to the 52-week average in 2020. Comparable store sales increased for all years presented, in small part due to an additional selling week in 2022.
The 53-week average price of gasoline in the Central Atlantic States, according to the U.S. Department of Energy, increased 31.4%, or $1.00 per gallon, in 2022 compared to the 52-week average in 2021. Comparable store sales, excluding fuel and adjusted for the 53rd week in 2022, increased for all years presented. Comparable store sales, including fuel, decreased year over year.
The effective income tax rate differs from the federal statutory rate of 21% primarily due to state taxes as well as nondeductible employee expenses. The Company reduced its provision for income taxes by $5.5 million in 2022 primarily due to the effects of Pennsylvania House Bill 1342 which was enacted on July 8, 2022.
The Company reduced its provision for income taxes by $5.5 million in 2022 primarily due to the effects of Pennsylvania House Bill 1342 which was enacted on July 8, 2022. The bill made significant changes to the Commonwealth’s corporate income tax laws which included lowering the tax rate gradually from 9.99% in 2022 to 4.99% in 2031.
The decrease in 2022 from 2021 is due to increases in inventory and in 2021 from 2020 is due to settling working capital obligations. Investing Property and equipment purchases totaled $122.2 million in 2022, compared to $151.8 million in 2021 and $131.0 million in 2020.
The decrease in 2023 from 2022 is due to lower net income and in 2022 from 2021 is due to increases in inventory. Investing Property and equipment purchases totaled $104.0 million in 2023, $122.2 million in 2022 and $151.8 million in 2021. As a percentage of sales, capital expenditures totaled 2.2% in 2023, 2.5% in 2022 and 3.6% in 2021.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations: (continued) Results of Operations (continued) Provision for Income Taxes The effective income tax rate was 22.1%, 26.6% and 27.3% in 2022, 2021 and 2020, respectively.
Management's Discussion and Analysis of Financial Condition and Results of Operations: (continued) Results of Operations (continued) Provision for Income Taxes The effective income tax rate was 29.2%, 22.1% and 26.6% in 2023, 2022, and 2021, respectively. The effective income tax rate differs from the federal statutory rate of 21% primarily due to state taxes as well as nondeductible employee-related expenses.
While direct store labor expenses increased in 2022 compared to 2021, and 2021 compared to 2020, the sales increases have outpaced the labor expense increase causing the rate to fall, primarily due to the fixed component of store labor. Management continues to monitor store labor efficiencies and develop labor standards to reduce costs while maintaining the Company’s customer service expectations.
Direct store labor expenses increased slightly in 2023 compared to 2022 due to flat net sales results for the same period. Direct store labor increased in 2022 compared to 2021, as sales increases outpaced the labor expense increase causing the rate to fall, primarily due to the fixed component of store labor.
Currently, the Company is continuing a multi-year initiative to install or upgrade self-checkouts in its stores in response to customer preference and labor supply, including adding convertible dual-use checkout lanes. The Company’s self-insured health care benefit expenses decreased by 0.2% in 2022 compared to 2021 and increased by 0.2% in 2021 compared to 2020.
Management continues to monitor store labor efficiencies and develop labor standards to reduce costs while maintaining the Company’s customer service expectations. During 2023, the Company completed a multi-year initiative to install or upgrade self-checkouts in its stores in response to customer preference and labor supply, including adding convertible dual-use checkout lanes.
Quarterly Cash Dividends Total cash dividend payments on common stock, on a per share basis, amounted to $1.30 in 2022, $1.25 in 2021 and $1.24 in 2020. The Company increased its quarterly dividend from 32 cents per share to 34 cents per share in the fourth quarter of 2022.
The Board of Directors’ 2004 resolution authorizing the repurchase of up to one million shares of the Company’s common stock has a remaining balance of 752,468 shares. Quarterly Cash Dividends Total cash dividend payments on common stock, on a per share basis, amounted to $1.36 in 2023, $1.30 in 2022 and $1.25 in 2021.
Management currently plans to invest approximately $150 million in its capital expenditure program in 2023, including multiple carryover projects from 2022 that were delayed due to labor and supply chain disruptions. The Board of Directors’ 2004 resolution authorizing the repurchase of up to one million shares of the Company’s common stock has a remaining balance of 752,468 shares.
Management continues to reinvest in its long-term capital expenditure program including plans to complete multiple carryover projects from 2022 and 2023 that were delayed due to labor and supply chain disruptions.
The Company has provided additional product offerings and customer conveniences such as “Weis 2 Go Online,” currently offered at 188 store locations. “Weis 2 Go Online” allows the customer to order on-line and have their order delivered or picked up at an expedient store drive-thru. The Company has experienced retail inflation and deflation in various commodities for the periods presented.
On a comparable store sales basis pharmacy services increased in sales. Comparable store sales, adjusted for an additional week in 2022 increased 2.3% excluding fuel and 1.7% including fuel for 2023 compared to 2022. The Company has provided additional product offerings and customer conveniences such as “Weis 2 Go Online,” currently offered at 188 store locations.
Removed
On a comparable store sales basis fresh, pharmacy services and fuel increased in sales. The Company’s 2022 sales were favorably impacted as a result of increased pharmacy prescription volume, administering COVID-19 vaccines and higher fuel sales. Comparable store sales, adjusted for an additional week in 2022 increased 8.8% including fuel and 7.5% excluding fuel for 2022 compared to 2021.
Added
“Weis 2 Go Online” allows the customer to order on-line and have their order delivered or picked up at an expedient store drive-thru. The Company also currently offers home delivery to customers in all 197 of its locations via multiple grocery delivery partners. During 2023, the Company’s net sales were negatively impacted by declining government benefits.
Removed
The bill made significant changes to the Commonwealth’s corporate income tax laws which included lowering the tax rate gradually from 9.99% in 2022 to 4.99% in 2031, updating market sourcing rules, and codifying the economic nexus standard. Liquidity and Capital Resources The primary source of cash is cash flows generated from operations.
Added
Although the Company experienced retail inflation and deflation in various commodities for the periods presented, the Company anticipates overall product costs to increase given the recent inflationary indicators in the food retail industry.
Added
The Company’s self-insured health care benefit expenses decreased by 18.0% and 8.5% in 2023 and 2022, respectively. As a percent of sales, the Company’s self-insured health care benefit expenses decreased by 0.1% and 0.2%, in 2023 and 2022, respectively.
Added
The majority of the increases in other expenses from 2021 to 2022 were higher financial service fees due to more sales transaction dollars paid with debit and credit cards and more third-party information technology subscription and consulting services. 17 Table of Contents WEIS MARKETS, INC. Item 7.
Added
The Company anticipates to fund the long-term capital expenditure program, the acquisition of retail stores, the construction of additional distribution facilities, repurchases of common stock, and cash dividends on common stock through its cash and cash equivalents, marketable securities, cash flows from operating activities, and revolving credit agreement.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeQuantitative and Qualitative Disclosures about Market Risk: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ Expected Maturity Dates ​ Fair Value December 31, 2022 2023 2024 2025 2026 2027 Thereafter Total Dec. 31, 2022 Rate sensitive assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed interest rate securities ​ $ 50,092 ​ $ 42,625 ​ $ 12,825 ​ $ 16,000 ​ $ 13,459 ​ $ 47,135 ​ $ 182,136 ​ $ 181,234 Average interest rate ​ ​ 3.02 % ​ 4.03 % ​ 3.83 % ​ 3.70 % ​ 3.77 % ​ 4.05 % ​ 3.80 % ​ ​ ​ 20 Table of Contents WEIS MARKETS, INC.
Biggest changeQuantitative and Qualitative Disclosures about Market Risk: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ Expected Maturity Dates ​ Fair Value December 30, 2023 2024 2025 2026 2027 2028 Thereafter Total Dec. 30, 2023 Rate sensitive assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed interest rate securities ​ $ 96,870 ​ $ 31,450 ​ $ 16,000 ​ $ 13,459 ​ $ 14,090 ​ $ 48,280 ​ $ 220,149 ​ $ 221,080 Average interest rate ​ ​ 4.39 % ​ 4.19 % ​ 3.55 % ​ 3.43 % ​ 3.58 % ​ 3.70 % ​ 3.80 % ​ ​ ​ Other Relevant Market Risks The Company’s equity securities at December 30, 2023 had a fair value of $4.9 million.
The Company’s revolving credit agreement is exposed to interest rate fluctuations to the extent of changes in the SOFR rate. The Company believes this exposure is not material due to availability of liquid assets to eliminate the outstanding credit facility. ​ ​ 21 Table of Contents
The Company’s revolving credit agreement is exposed to interest rate fluctuations to the extent of changes in the SOFR rate. The Company believes this exposure is not material due to availability of liquid assets to eliminate the outstanding credit facility. ​ ​ 22 Table of Contents
Other Relevant Market Risks The Company’s equity securities at December 31, 2022 had a fair value of $5.2 million. The dividend yield realized on these equity investments was 6.6% in 2022. By their nature, both the fixed interest rate securities and the equity investments inherently expose the holders to market risk.
The dividend yield realized on these equity investments was 6.2% in 2023. By their nature, both the fixed interest rate securities and the equity investments inherently expose the holders to market risk.

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