The Company grants options to purchase common stock to certain employees under the Company’s 2023 Omnibus Incentive Compensation Plan. The general terms of the time-based and market-based RSUs and stock options are similar to awards previously granted by the Company. The Company records compensation expense for the grant date fair value of the option awards evenly over the vesting period.

During the twelve and twenty-eight weeks ended July 13, 2024, the Company granted the following time-based and market-based RSUs:


	Twelve Weeks Ended		Twenty-Eight Weeks Ended
	July 13, 2024		July 13, 2024
Time-based RSUs
Number of awards	49.4		549.5
Weighted-average fair value	$	64.16	$	78.01

Market-based RSUs
Number of awards	—		149.2
Weighted-average fair value	—		$	113.31

The fair value of each market-based RSU was determined using a Monte Carlo simulation model. For time-based RSUs, the fair value of each award was determined based on the market price of the Company’s stock on the date of grant adjusted for expected dividends during the vesting period, as applicable.

During the twelve and twenty-eight weeks ended July 13, 2024, the Company granted the following stock options:


	Twelve Weeks Ended		Twenty-Eight Weeks Ended
Number of awards	9.8		203.5
Weighted-average fair value	$	25.48	$	31.88

The fair value of each option was estimated on the date of grant by applying the Black-Scholes option-pricing valuation model.


	Twelve Weeks Ended		Twenty-Eight Weeks Ended
Risk-free interest rate (1)	4.2	%	4.1	-	4.2	%
Expected term (2)	6 years		6 years
Expected volatility (3)	41.6	%	41.6	-	42.6	%
Expected dividend yield (4)	1.4	%	1.4	-	1.5	%

(1) The risk-free interest rate is based on the yield in effect at grant for zero-coupon U.S. Treasury notes with maturities equivalent to the expected term of the stock options.

(2) The expected term represents the period of time options granted are expected to be outstanding. As the Company does not have sufficient historical data, the Company utilized the simplified method provided by the SEC to calculate the expected term as the average of the contractual term and vesting period.

(3) Expected volatility is the measure of the amount by which the stock price has fluctuated or is expected to fluctuate. The Company utilized historical trends and the implied volatility of the Company’s publicly traded financial instruments in developing the volatility estimate for its stock options.

(4) The expected dividend yield is calculated based on our expected quarterly dividend and the three month average stock price as of the grant date.

The total income tax benefit related to share-based compensation expense for the twelve and twenty-eight weeks ended July 13, 2024 was $2.7 million and $6.6 million. As of July 13, 2024, there was $100.3 million of unrecognized compensation expense related to all share-based awards that is expected to be recognized over a weighted-average period of 1.7 years.