Vital Farms (VITL) 10-Q 4 May 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 26, 2023	May 01, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 26, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-25
Entity Registrant Name	Vital Farms, Inc.
Entity Central Index Key	0001579733
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Security 12b Title	Common Stock, par value $0.0001 per share
Trading Symbol	VITL
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-39411
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0496985
Entity Address, Address Line One	3601 South Congress Avenue
Entity Address, Address Line Two	Suite C100
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78704
City Area Code	877
Local Phone Number	455-3063
Entity Common Stock, Shares Outstanding		40,847,624

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Current assets:
Cash and cash equivalents	$ 25,838	$ 12,914
Investment securities, available-for-sale	57,233	65,814
Accounts receivable, net	40,199	40,227
Inventories	33,942	26,849
Prepaid expenses and other current assets	5,342	3,810
Total current assets	162,554	149,614
Property, plant and equipment, net	58,772	59,155
Operating lease right-of-use assets	1,549	1,895
Goodwill and other assets	3,904	4,002
Total assets	226,779	214,666
Current liabilities:
Accounts payable	26,586	25,972
Accrued liabilities	18,854	18,477
Operating lease liabilities, current	970	1,208
Finance lease liabilities, current	1,596	1,570
Income taxes payable	2,514	425
Total current liabilities	50,520	47,652
Operating lease liabilities, non-current	770	892
Finance lease liabilities, non-current	6,617	7,023
Other liabilities	1,342	767
Total liabilities	59,249	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 March 26, 2023 and December 25, 2022; 40,839,050 and 40,746,990 shares issued and outstanding as of March 26, 2023 and December 25, 2022, respectively	4	4
Additional paid-in capital	157,343	155,716
Retained earnings	11,309	4,159
Accumulated other comprehensive loss	(1,126)	(1,547)
Total stockholders’ equity	167,530	158,332
Total liabilities and stockholders' equity	$ 226,779	$ 214,666

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 26, 2023	Dec. 25, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	310,000,000	310,000,000
Common stock, shares issued	40,839,050	40,746,990
Common stock, shares outstanding	40,839,050	40,746,990

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Income Statement [Abstract]
Net revenue	$ 119,172	$ 77,058
Cost of goods sold	76,504	55,358
Gross profit	42,668	21,700
Operating expenses:
Selling, general and administrative	23,946	17,624
Shipping and distribution	7,826	8,162
Total operating expenses	31,772	25,786
Income (loss) from operations	10,896	(4,086)
Other income, net:
Interest expense	(139)	(8)
Interest income	340	130
Other (expense) income, net	(1,425)	49
Total other income, net	(1,224)	171
Net income (loss) before income taxes	9,672	(3,915)
Income tax provision (benefit)	2,522	(2,377)
Net income (loss)	7,150	(1,538)
Less: Net loss attributable to noncontrolling interests	0	(2)
Net income (loss) attributable to Vital Farms, Inc. common stockholders	$ 7,150	$ (1,536)
Earnings Per Share
Basic:	$ 0.18	$ (0.04)
Diluted:	$ 0.16	$ (0.04)
Weighted average common shares outstanding:
Basic:	40,764,546	40,532,779
Diluted:	43,398,336	40,532,779

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 7,150	$ (1,538)
Other comprehensive income (loss), before tax:
Unrealized net holding gain (loss)	517	(1,075)
Amounts reclassified for realized losses to earnings	34	50
Available-for-sale debt securities, before tax	551	(1,025)
Other comprehensive income (loss), before tax	551	(1,025)
Income tax (expense) benefit related to items of other comprehensive income (loss)	(130)	242
Other comprehensive income (loss), net of tax	421	(783)
Total comprehensive income (loss)	$ 7,571	$ (2,321)

CONDENSED CONSOLIDATED STATEM_3

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, net	(783)					(783)	(783)
Net loss attributable to Vital Farms, Inc. stockholders	(1,536)				(1,536)		(1,536)
Ending balance at Mar. 27, 2022	150,814		$ 5	150,550	1,372	(1,064)	$ 150,863	$ (49)
Ending balance at Mar. 27, 2022		$ 175
Ending balance, shares at Mar. 27, 2022			40,596,297
Beginning balance at Dec. 25, 2022	$ 158,332		$ 4	155,716	4,159	(1,547)
Beginning balance, shares at Dec. 25, 2022			40,746,990
Exercise of stock options, Shares	0
Vesting of restricted stock units, shares			92,060
Stock-based compensation expense	$ 1,627			1,627
Net loss attributable to noncontrolling interests - stockholders	0
Other comprehensive income, net	421					421
Net loss attributable to Vital Farms, Inc. stockholders	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

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Cash flows from operating activities:
Net income (loss)	$ 7,150	$ (1,538)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	1,693	948
Amortization of right-of-use assets	793	413
Amortization of available-for-sale debt securities	163	321
Stock-based compensation expense	2,241	1,296
Increase (decrease) in inventory provision	120	(29)
Deferred taxes	445	(2,572)
Unrealized loss on derivative instruments	1,047	0
Other	19	228
Net change in operating assets and liabilities	(8,268)	(4,006)
Net cash provided by (used in) operating activities	5,403	(4,939)
Cash flows from investing activities:
Purchases of property, plant and equipment	(1,802)	(1,686)
Purchases of available-for-sale debt securities	0	(13,973)
Maturities and call redemptions of available-for-sale debt securities	8,935	14,254
Proceeds from the sale of property, plant and equipment	1,054	50
Cash paid for purchases of derivative instruments	(220)	0
Return of investment in variable interest entity	552	0
Net cash provided by (used in) investing activities	8,519	(1,355)
Cash flows from financing activities:
Payment of contingent consideration	0	(26)
Principal payments under finance lease obligations	(384)	(126)
Proceeds from exercise of stock options	0	254
Payment of tax withholding obligation on RSU shares withheld	(614)	0
Net cash (used in) provided by financing activities	(998)	102
Net increase (decrease) in cash and cash equivalents	12,924	(6,192)
Cash and cash equivalents at beginning of the period	12,914	30,966
Cash and cash equivalents at end of the period	25,838	24,774
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property, plant and equipment included in accounts payable and accrued liabilities	891	2,147
Supplemental disclosure of cash flow information:
Cash paid for interest	134	8
Cash paid for income taxes	2	7
Revolving Line of Credit
Cash flows from financing activities:
Proceeds from borrowing under revolving line of credit	7,500	0
Repayment of revolving line of credit	$ (7,500)	$ 0

Nature of the Business and Basi

Nature of the Business and Basis of Presentation	3 Months Ended
	Mar. 26, 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 and RedHill Farms, primarily to retail and foodservice channels in the United States. The accompanying unaudited condensed consolidated financial statements as of March 26, 2023 and for the 13-week periods ended March 26, 2023 and March 27, 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 on 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 March 26, 2023, consolidated results of operations for the 13-week periods ended March 26, 2023 and March 27, 2022, and consolidated cash flows for the 13-week periods ended March 26, 2023 and March 27, 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 period ended March 26, 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 March 26, 2023 and March 27, 2022 both contain operating results for 13 weeks. The fiscal year ending December 31, 2023 will include 53 weeks.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 26, 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 13-week period ended March 26, 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 income (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 13-week period ended March 26, 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.

Investment Securities

Investment Securities	3 Months Ended
	Mar. 26, 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 March 26, 2023: Amortized Cost Unrealized Losses Fair Value U.S. corporate bonds and U.S. dollar $ 57,526 $ ( 1,458 ) $ 56,068 U.S. Treasury 1,176 ( 11 ) 1,165 Total $ 58,702 $ ( 1,469 ) $ 57,233 The following table summarizes the Company’s available-for-sale investment securities as of December 25, 2022: Amortized Cost Unrealized Losses Fair Value U.S. corporate bonds and U.S. dollar $ 66,658 $ ( 1,996 ) $ 64,662 U.S. Treasury 1,176 ( 24 ) 1,152 Total $ 67,834 $ ( 2,020 ) $ 65,814 For the 13-week periods ended March 26, 2023 and March 27, 2022 , there were no proceeds from the sale of available-for-sale securities. During the 13-week period ended March 26, 2023, the unrealized losses in our U.S. corporate bond portfolio consist of losses on 81 diversified issuances with credit ratings ranging from BBB to AAA. As of March 26, 2023, there are no individual bonds with unrealized losses exceeding $ 73 , and 59 issuances have been in a loss position greater than 12 months with aggregate unrealized losses of $ 1,198 . The decline in fair value has resulted primarily from rising interest rates over the last 12 months, and the Company does not believe there has been any significant decline in the creditworthiness of the issuers. The Company also does not believe it is likely that the bonds will be called early and it does not have current liquidity needs that would necessitate a sale of any material investments prior to maturity. Therefore, the Company has no t recorded an allowance for credit losses on the investment securities as of March 26, 2023. Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities of investment securities as of March 26, 2023 are as follows: Amortized Cost Fair Value Due within one year $ 28,758 $ 28,152 Due in 1-5 years 29,944 29,081 Total available-for-sale $ 58,702 $ 57,233

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 26, 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) income, 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 March 26, December 25, Commodity: Corn Bushels (in thousands) 2,527 — Soybean Meal Tons 28 — For the 13-week periods ended March 26, 2023 and March 27, 2022, the pre-tax amount of commodity contract derivative losses recognized in other (expense) income, net in the unaudited condensed consolidated statements of operations was $ 1,415 and $ 0 , respectively. The fair value and location of all outstanding derivative instruments in the unaudited condensed consolidated balance sheets are included in “Fair Value Measurements” in Note 5 below.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 26, 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 March 26, 2023, Using: Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market $ 13,115 $ — $ — $ 13,115 Available-for-sale debt securities: U.S. corporate bonds and U.S. dollar — 56,068 — 56,068 U.S. Treasury — 1,165 — 1,165 Prepaid expenses and other current assets: Derivative financial instruments — 1,105 — 1,105 Total assets measured at fair value $ 13,115 $ 58,338 $ — $ 71,453 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 Available-for-sale debt securities: U.S. corporate bonds and U.S. dollar — 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 13-week period ended March 26, 2023 , there were no transfers between fair value measurement levels.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 26, 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 March 26, March 27, Net Revenue: Egg and egg-related products $ 112,790 $ 72,121 Butter and butter-related products 6,382 4,937 Net Revenue $ 119,172 $ 77,058 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 13-week period ended March 26, 2023. As of March 26, 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 March 26, 2023 and March 27, 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 periods ended March 26, 2023 and March 27, 2022 is as follows: Net Revenue Net Revenue Customer A 25 % 35 % Customer B * 11 % Customer C * 11 % * Revenue was less than 10% The decrease in the percentage of net revenue for Customers A, B and C for the 13-week period ended March 26, 2023 compared to the 13-week period ended March 27, 2022 is due to a shift in the Company's distribution channels away from these customers. The percentage of accounts receivable, net due from significant customers as of March 26, 2023 and December 25, 2022 is as follows: Accounts Receivable, Net as of March 26, 2023 Accounts Receivable, Net as of December 25, 2022 Customer A 19 % 23 % Customer C 12 % 12 % Customer D 12 % 13 % * Accounts receivable was less than 10%

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 26, 2023
Receivables [Abstract]
Accounts Receivable	Note 7. Accounts Receivable As of March 26, 2023 and December 25, 2022, the Company had an allowance for doubtful accounts of $ 783 and $ 699 , respectively. Changes in the allowance for doubtful accounts were as follows: Allowance for As of December 25, 2022 $ ( 699 ) Provisions charged to operating results ( 84 ) Account write-off and recoveries, net — As of March 26, 2023 $ ( 783 )

Inventories

Inventories	3 Months Ended
	Mar. 26, 2023
Inventory Disclosure [Abstract]
Inventories	Note 8. Inventories Inventory consisted of the following as of the periods presented: March 26, December 25, Eggs and egg-related products $ 18,722 $ 13,675 Butter and butter-related products 7,036 5,718 Packaging 6,565 5,452 Pullets 1,251 981 Other 1,248 1,121 Reserve for inventory obsolescence ( 880 ) ( 98 ) Inventories $ 33,942 $ 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.

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Mar. 26, 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: March 26, December 25, Land $ 552 $ 552 Land improvements 835 835 Buildings and improvements 29,953 29,667 Vehicles 894 894 Machinery and equipment 35,179 34,978 Leasehold improvements 919 919 Furniture and fixtures 714 685 Construction in progress 3,321 3,312 72,367 71,842 Less: Accumulated depreciation and amortization ( 13,595 ) ( 12,687 ) Property, plant and equipment, net $ 58,772 $ 59,155 During the 13-week periods ended March 26, 2023 and March 27, 2022, depreciation and amortization of property, plant and equipment was approximately $ 1,693 and $ 948 , respectively.

Leases

Leases	3 Months Ended
	Mar. 26, 2023
Leases [Abstract]
Leases	Note 10. Leases Operating lease cost is recognized on a straight-line basis over the lease term and finance lease cost is recognized as amortization expense for the right-of-use (“ROU”) assets and interest expense associated with the finance lease liabilities. 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 periods ended March 26, 2023 and March 27, 2022, are below: 13-Weeks Ended March 26, March 27, Operating lease cost $ 361 $ 361 Finance lease cost - amortization of right-of-use assets 447 78 Finance lease cost - interest on lease liabilities 132 3 Short-term lease cost 117 3 Variable lease cost 1,563 418 Variable lease cost - long-term supply contracts 43,086 30,183 Total lease cost $ 45,706 $ 31,046 Future undiscounted cash flows are as follows: As of March 26, 2023 Operating Leases Finance Leases 2023 $ 879 $ 1,545 2024 471 2,060 2025 338 2,060 2026 115 2,060 2027 — 1,711 Thereafter — — Total lease payments 1,803 9,436 Less imputed interest ( 63 ) ( 1,223 ) Total present value of lease liabilities $ 1,740 $ 8,213 During the 13-week periods ended March 26, 2023 and March 27, 2022, ROU assets obtained in exchange for new finance lease obligations were $ 4 and $ 20 , respectively.

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 26, 2023
Payables and Accruals [Abstract]
Accrued Liabilities	Note 11. Accrued Liabilities Accrued liabilities consisted of the following as of the periods presented: March 26, December 25, Accrued employee related costs $ 3,356 $ 7,453 Accrued promotions and customer deductions 4,043 4,414 Accrued distribution fees and freight 2,900 2,351 Accrued marketing and broker commissions 2,343 1,598 Accrued purchases of inventory 1,670 1,349 Accrued professional fees 1,400 761 Accrued derivative premiums 2,152 — Accrued property, plant and equipment 322 153 Other 668 398 Accrued liabilities $ 18,854 $ 18,477

Product Exit Costs

Product Exit Costs	3 Months Ended
	Mar. 26, 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 the fiscal year ended December 25, 2022, the ending liability balance related to this category exit was $ 119 . As of the 13-week period ended March 26, 2023, remaining charges of $ 45 are expected to be settled or released by the end of the 13-week period ending June 25, 2023 . The following tables summarizes the activity related to the exit of the Company's convenient breakfast product category during the periods presented: For the 13-Weeks Ended March 26, 2023 Description Statement of Operations 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 13-Weeks Ended March 27, 2022 Description Statement of Operations Charges Incurred Amounts Paid or Settled Amounts Released as Unutilized Ending Liability Balance Contract terminations Selling, general and administrative $ 1,126 $ ( 49 ) $ — $ 1,077 Inventory obsolescence Cost of goods sold 749 ( 433 ) — 316 Customer allowances Net revenue 146 — — 146 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 $ ( 683 ) $ — $ 1,658

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 26, 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 revolving line of credit matures in April 2024 . The maximum borrowing capacity under the revolving line of credit is $ 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 13-week period ended March 26, 2023, the Company borrowed and repaid $ 7.5 million under the revolving line of credit. As of March 26, 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 March 26, 2023 are restricted in use. Vital Farms’ wholly owned subsidiaries are non-operating and do not hold any assets or liabilities; therefore, these subsidiaries have no restricted net assets within the meaning of Rule 4-08(e)(3) or Rule 12-04 of Regulation S-X. The Credit Facility also contains other customary covenants, representations and events of default. As of March 26, 2023 , the Company was in compliance with all covenants under the Credit Facility. During the 13-week periods ended March 26, 2023 and March 27, 2022, the Company recognized interest expense related to draws on the revolving line of credit of $ 7 and $ 0 , respectively.

Common Stock

Common Stock	3 Months Ended
	Mar. 26, 2023
Equity [Abstract]
Common Stock	Note 14. Common Stock As of March 26, 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 40,839,050 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: March 26, December 25, Options to purchase common stock 5,123,860 4,634,205 Restricted stock units 675,029 505,504 Shares available for grant under the 2020 Equity Incentive 12,796,409 11,503,459 Total 18,595,298 16,643,168

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 26, 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 March 26, March 27, Cost of goods sold $ 53 $ 29 Selling, general and administrative expense 2,188 1,267 Total $ 2,241 $ 1,296 Stock Option Activity The following table summarizes the Company’s stock option activity since December 25, 2022: Number of Weighted- Weighted- Aggregate Outstanding as of December 25, 2022 4,634,205 $ 9.35 $ 38,522 Granted 508,920 $ 15.06 Exercised — $ — $ — Cancelled/Forfeited ( 19,265 ) $ 17.20 $ 61 Outstanding as of March 26, 2023 5,123,860 $ 9.88 5.8 $ 36,625 Options exercisable as of March 26, 2023 3,309,518 $ 7.17 4.6 $ 30,934 Options vested and expected to vest as of March 26, 2023 5,123,777 $ 9.88 5.8 $ 36,624 The fair value of shares vested during the 13-week periods ended March 26, 2023 and March 27, 2022 was $ 1,015 and $ 959 , respectively. As of March 26, 2023, total unrecognized stock-based compensation expense related to unvested stock options was $ 7,377 , which is expected to be recognized over a weighted-average period of 2.15 years. Restricted Stock Unit Activity The following table summarizes the Company’s restricted stock units (“RSU”) activity since December 25, 2022: Number of Weighted- Unvested as of December 25, 2022 505,504 $ 13.58 Granted 305,606 $ 15.14 Vested ( 127,595 ) $ 12.97 Forfeited ( 8,486 ) $ 14.17 Unvested as of March 26, 2023 675,029 $ 14.40 The fair value of RSU shares vested during the 13-week periods ended March 26, 2023 and March 27, 2022 was $ 1,655 and $ 288 , respectively. As of March 26, 2023, total unrecognized stock-based compensation expense related to unvested stock options and the RSUs was $ 8,424 , which is expected to be recognized over a weighted-average period of 2.42 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 March 26, 2023, 10,709,893 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 March 26, 2023, 2,086,516 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 November 16, 2022.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 26, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Note 16. Income Taxes The Company’s effective tax rate for the 13-week periods ended March 26, 2023 and March 27, 2022 was approximately 26 % and 61 % , respectively. In the 13-week period ended March 26, 2023, the estimated annual effective tax rate was driven by permanent differences related to incentive stock options and the impact of compensation deduction limitations under Internal Revenue Code Section 162(m). 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.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	3 Months Ended
	Mar. 26, 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 March 26, March 27, Numerator: Net income (loss) $ 7,150 $ ( 1,538 ) Less: Net loss attributable to noncontrolling interests — ( 2 ) Net income (loss) attributable to Vital Farms, Inc. stockholders’ — basic and diluted $ 7,150 $ ( 1,536 ) Denominator: Weighted average common shares outstanding — basic 40,764,546 40,532,779 Weighted average effect of potentially dilutive securities: Effect of potentially dilutive stock options 2,423,087 — Effect of potentially dilutive restricted stock units 208,947 — Effect of potentially dilutive common stock issuable pursuant to the ESPP 1,756 — Weighted average common shares outstanding — diluted 43,398,336 40,532,779 Net income (loss) per share attributable to Vital Farms, Inc. stockholders Basic $ 0.18 $ ( 0.04 ) Diluted $ 0.16 $ ( 0.04 ) 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 March 26, March 27, Options to purchase common stock 22,363 2,624 Unvested restricted stock 704 25,922 23,067 28,546

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Mar. 26, 2023
Equity [Abstract]
Accumulated Other Comprehensive Loss	Note 18. Accumulated Other Comprehensive Loss The amounts reclassified from accumulated other comprehensive loss 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 March 26, March 27, Losses on available-for-sale securities Other income (expense), net $ ( 34 ) ( 50 ) Total before tax ( 34 ) ( 50 ) Tax (expense) benefit 8 12 Net of tax $ ( 26 ) $ ( 38 ) The gross amount and related tax benefit (expense) recorded in, and associated with, each component of other comprehensive income were as follows (in thousands): 13-Weeks Ended March 26, 2023 March 27, 2022 Before Tax Tax After Tax Before Tax Tax After Tax Available-for-sale debt securities: Unrealized net holding gain (loss) $ 517 $ ( 122 ) $ 395 $ ( 1,075 ) $ 254 $ ( 821 ) Amounts reclassified for realized losses to earnings 34 ( 8 ) 26 50 ( 12 ) 38 Total other comprehensive income (loss) $ 551 $ ( 130 ) $ 421 $ ( 1,025 ) $ 242 $ ( 783 )

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 26, 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. 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 March 26, 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 which are in the scope of ordinary and routine litigation incidental to its business, including those related to regulation, litigation, business transactions, employee-related matters and taxes, among others. When the Company becomes aware of a claim or potential claim, the likelihood of any loss or exposure is assessed. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. The liability recorded includes probable and estimable legal costs incurred to date and future legal costs to the point in the legal matter where the Company believes a conclusion to the matter will be reached. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the claim if the likelihood of a potential loss is reasonably possible. 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. As of the Transition Date, Mr. Meissner was no longer an officer, executive or agent of the Company, but 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 will continue to receive his current base salary and medical benefits, provided that Mr. Meissner performs such job duties for the Company and assists in such transition-related duties as the Company may deem necessary and appropriate. Following the Departure Date, in exchange for a general release of claims in favor of the Company, Mr. Meissner will receive 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 will be retained through July 31, 2023 as a non-employee advisor for such transition services as may be requested by the Company.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 26, 2023
Related Party Transactions [Abstract]
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 March 26, 2023, Ovabrite was in the process of winding up its business activities and liquidating its remaining assets. For the 13-week periods ended March 26, 2023 and March 27, 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 $ 116 and $ 121 during the 13-week periods ended March 26, 2023 and March 27, 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 the 13-week periods ended March 26, 2023 and March 27, 2022, amounts owed to Sandpebble were $ 373 and $ 945 , respectively, and are included in accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheets.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 26, 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 13-week period ended March 26, 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.

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 26, 2023
Investments, Debt and Equity Securities [Abstract]
Summary of Available-for-sale Investment Securities	The following table summarizes the Company’s available-for-sale investment securities as of March 26, 2023: Amortized Cost Unrealized Losses Fair Value U.S. corporate bonds and U.S. dollar $ 57,526 $ ( 1,458 ) $ 56,068 U.S. Treasury 1,176 ( 11 ) 1,165 Total $ 58,702 $ ( 1,469 ) $ 57,233 The following table summarizes the Company’s available-for-sale investment securities as of December 25, 2022: Amortized Cost Unrealized Losses Fair Value U.S. corporate bonds and U.S. dollar $ 66,658 $ ( 1,996 ) $ 64,662 U.S. Treasury 1,176 ( 24 ) 1,152 Total $ 67,834 $ ( 2,020 ) $ 65,814
Summary of Contractual Maturities of Investment Securities	Contractual maturities of investment securities as of March 26, 2023 are as follows: Amortized Cost Fair Value Due within one year $ 28,758 $ 28,152 Due in 1-5 years 29,944 29,081 Total available-for-sale $ 58,702 $ 57,233

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 26, 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 March 26, December 25, Commodity: Corn Bushels (in thousands) 2,527 — Soybean Meal Tons 28 —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 26, 2023
Fair Value Disclosures [Abstract]
Schedule of Financial Assets Measured at Fair Value	The following tables present information about the Company’s financial assets measured at fair value on a recurring basis for the periods presented: Fair Value Measurements as of March 26, 2023, Using: Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market $ 13,115 $ — $ — $ 13,115 Available-for-sale debt securities: U.S. corporate bonds and U.S. dollar — 56,068 — 56,068 U.S. Treasury — 1,165 — 1,165 Prepaid expenses and other current assets: Derivative financial instruments — 1,105 — 1,105 Total assets measured at fair value $ 13,115 $ 58,338 $ — $ 71,453 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 Available-for-sale debt securities: U.S. corporate bonds and U.S. dollar — 64,662 — 64,662 U.S. Treasury — 1,152 — 1,152 Total assets measured at fair value $ 6,740 $ 65,814 $ — $ 72,554

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 26, 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 March 26, March 27, Net Revenue: Egg and egg-related products $ 112,790 $ 72,121 Butter and butter-related products 6,382 4,937 Net Revenue $ 119,172 $ 77,058
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 periods ended March 26, 2023 and March 27, 2022 is as follows: Net Revenue Net Revenue Customer A 25 % 35 % Customer B * 11 % Customer C * 11 % * Revenue was less than 10% The decrease in the percentage of net revenue for Customers A, B and C for the 13-week period ended March 26, 2023 compared to the 13-week period ended March 27, 2022 is due to a shift in the Company's distribution channels away from these customers. The percentage of accounts receivable, net due from significant customers as of March 26, 2023 and December 25, 2022 is as follows: Accounts Receivable, Net as of March 26, 2023 Accounts Receivable, Net as of December 25, 2022 Customer A 19 % 23 % Customer C 12 % 12 % Customer D 12 % 13 % * Accounts receivable was less than 10%

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 26, 2023
Receivables [Abstract]
Schedule of Changes in Allowance for Doubtful Accounts Receivable	Changes in the allowance for doubtful accounts were as follows: Allowance for As of December 25, 2022 $ ( 699 ) Provisions charged to operating results ( 84 ) Account write-off and recoveries, net — As of March 26, 2023 $ ( 783 )

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 26, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following as of the periods presented: March 26, December 25, Eggs and egg-related products $ 18,722 $ 13,675 Butter and butter-related products 7,036 5,718 Packaging 6,565 5,452 Pullets 1,251 981 Other 1,248 1,121 Reserve for inventory obsolescence ( 880 ) ( 98 ) Inventories $ 33,942 $ 26,849

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 26, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment consisted of the following as of the periods presented: March 26, December 25, Land $ 552 $ 552 Land improvements 835 835 Buildings and improvements 29,953 29,667 Vehicles 894 894 Machinery and equipment 35,179 34,978 Leasehold improvements 919 919 Furniture and fixtures 714 685 Construction in progress 3,321 3,312 72,367 71,842 Less: Accumulated depreciation and amortization ( 13,595 ) ( 12,687 ) Property, plant and equipment, net $ 58,772 $ 59,155

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 26, 2023
Leases [Abstract]
Schedule of Components of Lease Cost	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 periods ended March 26, 2023 and March 27, 2022, are below: 13-Weeks Ended March 26, March 27, Operating lease cost $ 361 $ 361 Finance lease cost - amortization of right-of-use assets 447 78 Finance lease cost - interest on lease liabilities 132 3 Short-term lease cost 117 3 Variable lease cost 1,563 418 Variable lease cost - long-term supply contracts 43,086 30,183 Total lease cost $ 45,706 $ 31,046
Summary of Operating and Finance Leases Future Undiscounted Cash Flows	Future undiscounted cash flows are as follows: As of March 26, 2023 Operating Leases Finance Leases 2023 $ 879 $ 1,545 2024 471 2,060 2025 338 2,060 2026 115 2,060 2027 — 1,711 Thereafter — — Total lease payments 1,803 9,436 Less imputed interest ( 63 ) ( 1,223 ) Total present value of lease liabilities $ 1,740 $ 8,213

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 26, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following as of the periods presented: March 26, December 25, Accrued employee related costs $ 3,356 $ 7,453 Accrued promotions and customer deductions 4,043 4,414 Accrued distribution fees and freight 2,900 2,351 Accrued marketing and broker commissions 2,343 1,598 Accrued purchases of inventory 1,670 1,349 Accrued professional fees 1,400 761 Accrued derivative premiums 2,152 — Accrued property, plant and equipment 322 153 Other 668 398 Accrued liabilities $ 18,854 $ 18,477

Product Exit Costs (Tables)

Product Exit Costs (Tables)	3 Months Ended
	Mar. 26, 2023
Restructuring and Related Activities [Abstract]
Summary of Activity Related to Exit of Breakfast Products	The following tables summarizes the activity related to the exit of the Company's convenient breakfast product category during the periods presented: For the 13-Weeks Ended March 26, 2023 Description Statement of Operations 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 13-Weeks Ended March 27, 2022 Description Statement of Operations Charges Incurred Amounts Paid or Settled Amounts Released as Unutilized Ending Liability Balance Contract terminations Selling, general and administrative $ 1,126 $ ( 49 ) $ — $ 1,077 Inventory obsolescence Cost of goods sold 749 ( 433 ) — 316 Customer allowances Net revenue 146 — — 146 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 $ ( 683 ) $ — $ 1,658

Common Stock (Tables)

Common Stock (Tables)	3 Months Ended
	Mar. 26, 2023
Equity [Abstract]
Schedule of Reserved Shares of Common Stock for Issuance	As of each balance sheet date, the Company had reserved shares of common stock for issuance in connection with the following: March 26, December 25, Options to purchase common stock 5,123,860 4,634,205 Restricted stock units 675,029 505,504 Shares available for grant under the 2020 Equity Incentive 12,796,409 11,503,459 Total 18,595,298 16,643,168

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 26, 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 March 26, March 27, Cost of goods sold $ 53 $ 29 Selling, general and administrative expense 2,188 1,267 Total $ 2,241 $ 1,296
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activity since December 25, 2022: Number of Weighted- Weighted- Aggregate Outstanding as of December 25, 2022 4,634,205 $ 9.35 $ 38,522 Granted 508,920 $ 15.06 Exercised — $ — $ — Cancelled/Forfeited ( 19,265 ) $ 17.20 $ 61 Outstanding as of March 26, 2023 5,123,860 $ 9.88 5.8 $ 36,625 Options exercisable as of March 26, 2023 3,309,518 $ 7.17 4.6 $ 30,934 Options vested and expected to vest as of March 26, 2023 5,123,777 $ 9.88 5.8 $ 36,624
Summary of Restricted Stock Unit Activity	The following table summarizes the Company’s restricted stock units (“RSU”) activity since December 25, 2022: Number of Weighted- Unvested as of December 25, 2022 505,504 $ 13.58 Granted 305,606 $ 15.14 Vested ( 127,595 ) $ 12.97 Forfeited ( 8,486 ) $ 14.17 Unvested as of March 26, 2023 675,029 $ 14.40 The fair value of RSU shares vested during the 13-week periods ended March 26, 2023 and March 27, 2022 was $ 1,655 and $ 288 , respectively. As of March 26, 2023, total unrecognized stock-based compensation expense related to unvested stock options and the RSUs was $ 8,424 , which is expected to be recognized over a weighted-average period of 2.42 years.

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 26, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted 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 March 26, March 27, Numerator: Net income (loss) $ 7,150 $ ( 1,538 ) Less: Net loss attributable to noncontrolling interests — ( 2 ) Net income (loss) attributable to Vital Farms, Inc. stockholders’ — basic and diluted $ 7,150 $ ( 1,536 ) Denominator: Weighted average common shares outstanding — basic 40,764,546 40,532,779 Weighted average effect of potentially dilutive securities: Effect of potentially dilutive stock options 2,423,087 — Effect of potentially dilutive restricted stock units 208,947 — Effect of potentially dilutive common stock issuable pursuant to the ESPP 1,756 — Weighted average common shares outstanding — diluted 43,398,336 40,532,779 Net income (loss) per share attributable to Vital Farms, Inc. stockholders Basic $ 0.18 $ ( 0.04 ) Diluted $ 0.16 $ ( 0.04 )
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 March 26, March 27, Options to purchase common stock 22,363 2,624 Unvested restricted stock 704 25,922 23,067 28,546

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Mar. 26, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income	The amounts reclassified from accumulated other comprehensive loss 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 March 26, March 27, Losses on available-for-sale securities Other income (expense), net $ ( 34 ) ( 50 ) Total before tax ( 34 ) ( 50 ) Tax (expense) benefit 8 12 Net of tax $ ( 26 ) $ ( 38 )
Schedule of Component of Other Comprehensive Income	The gross amount and related tax benefit (expense) recorded in, and associated with, each component of other comprehensive income were as follows (in thousands): 13-Weeks Ended March 26, 2023 March 27, 2022 Before Tax Tax After Tax Before Tax Tax After Tax Available-for-sale debt securities: Unrealized net holding gain (loss) $ 517 $ ( 122 ) $ 395 $ ( 1,075 ) $ 254 $ ( 821 ) Amounts reclassified for realized losses to earnings 34 ( 8 ) 26 50 ( 12 ) 38 Total other comprehensive income (loss) $ 551 $ ( 130 ) $ 421 $ ( 1,025 ) $ 242 $ ( 783 )

Nature of the Business and Ba_2

Nature of the Business and Basis of Presentation - Additional Information (Details)	3 Months Ended
	Mar. 26, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Date of incorporation	Jun. 06, 2013

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Summary of Significant Accounting Policies [Line Items]
Right-of-use asset	$ 1,549	$ 1,895
Lease liability	$ 1,740

Investment Securities - Summary

Investment Securities - Summary of Available-for-sale Investment Securities (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 58,702	$ 67,834
Unrealized Losses	(1,469)	(2,020)
Fair Value	57,233	65,814
U.S. corporate bonds and U.S. dollar denominated foreign bonds
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	57,526	66,658
Unrealized Losses	(1,458)	(1,996)
Fair Value	56,068	64,662
U.S. Treasury
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	1,176	1,176
Unrealized Losses	(11)	(24)
Fair Value	$ 1,165	$ 1,152

Investment Securities - Additio

Investment Securities - Additional Information (Details)	3 Months Ended
	Mar. 26, 2023 USD ($) Position Security	Mar. 27, 2022 USD ($)	Dec. 25, 2022 USD ($)
Schedule Of Available For Sale Securities [Line Items]
Proceeds from the sale of available-for-sale securities	$ 0	$ 0
Unrealized Losses	$ 1,469,000		$ 2,020,000
Unrealized Loss Position greater than 12 months | Position	59
Aggregate unrealized losses	$ 1,198,000
Allowance for credit losses on the investment securities	0
Maximum [Member]
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses	$ 73,000
AFS Securities
Schedule Of Available For Sale Securities [Line Items]
Number of Securities Issuances for unrealized losses | Security	81
U.S. corporate bonds and U.S. dollar denominated foreign bonds
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses	$ 1,458,000		$ 1,996,000

Investment Securities - Summa_2

Investment Securities - Summary of Contractual Maturities of Investment Securities (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Investments, Debt and Equity Securities [Abstract]
Due within one year Amortized Cost	$ 28,758
Due in 1-5 years Amortized Cost	29,944
Amortized Cost	58,702	$ 67,834
Due within one year Fair Value	28,152
Due in 1-5 years Fair Value	29,081
Total available-for-sale Fair Value	$ 57,233

Derivative Financial Instrume_3

Derivative Financial Instruments - Schedule Of Notional Amounts of Outstanding Derivative Instruments (Details) Bushels in Thousands	Mar. 26, 2023 Bushels T	Dec. 25, 2022 Bushels T
Corn
Derivative [Line Items]
Notional amounts of derivative financial instruments | Bushels	2,527	0
Soybean Meal
Derivative [Line Items]
Notional amounts of derivative financial instruments | T	28	0

Derivative Financial Instrume_4

Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Commodity Contract [Member] | Non designated [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pre-tax amount of derivative losses	$ (1,415)	$ 0

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	$ 71,453	$ 72,554
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	13,115	6,740
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	58,338	65,814
Money market
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets measured at fair value	13,115	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	13,115	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	56,068	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	56,068	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	1,165	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	1,165	$ 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	1,105
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	$ 1,105

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details)	Mar. 26, 2023 USD ($)
Fair Value Disclosures [Abstract]
Fair value liabilities transfers, Level 2 to Level 1	$ 0

Revenue Recognition - Summary o

Revenue Recognition - Summary of Net Revenue by Primary Product (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Disaggregation Of Revenue [Line Items]
Net revenue	$ 119,172	$ 77,058
Egg and Egg Related Products
Disaggregation Of Revenue [Line Items]
Net revenue	112,790	72,121
Butter and Butter Related Products
Disaggregation Of Revenue [Line Items]
Net revenue	$ 6,382	$ 4,937

Revenue Recognition - Summary_2

Revenue Recognition - Summary of Percentage of Net Revenue from Significant Customers (Details) - Customer Concentration Risk - Net Revenue	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Customer A
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	25%	35%
Customer B
Disaggregation Of Revenue [Line Items]
Concentration risk percentage		11%
Customer C
Disaggregation Of Revenue [Line Items]
Concentration risk percentage		11%

Revenue Recognition - Summary_3

Revenue Recognition - Summary of Percentage of Accounts Receivable, Net Due from Significant Customers (Details) - Customer Concentration Risk - Accounts Receivable	3 Months Ended	12 Months Ended
	Mar. 26, 2023	Dec. 25, 2022
Customer A
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	19%	23%
Customer C
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	12%	12%
Customer D
Disaggregation Of Revenue [Line Items]
Concentration risk percentage	12%	13%

Accounts Receivable - Additiona

Accounts Receivable - Additional Information (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Receivables [Abstract]
Allowance for doubtful accounts	$ 783	$ 699

Accounts Receivable - Summary o

Accounts Receivable - Summary of Changes in Allowance for Doubtful Accounts (Details) $ in Thousands	3 Months Ended
	Mar. 26, 2023 USD ($)
Receivables [Abstract]
Allowance for doubtful accounts, Beginning balance	$ (699)
Provisions charged to operating results	(84)
Account write-off and recoveries, net	0
Allowance for doubtful accounts, Ending balance	$ (783)

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Inventory [Line Items]
Reserve for inventory obsolescence	$ (880)	$ (98)
Inventories	33,942	26,849
Eggs and Egg Related Products
Inventory [Line Items]
Inventory gross	18,722	13,675
Butter and Butter Related Products
Inventory [Line Items]
Inventory gross	7,036	5,718
Packaging
Inventory [Line Items]
Inventory gross	6,565	5,452
Pullets
Inventory [Line Items]
Inventory gross	1,251	981
Other
Inventory [Line Items]
Inventory gross	$ 1,248	$ 1,121

Property, Plant and Equipment -

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 72,367	$ 71,842
Less: Accumulated depreciation and amortization	(13,595)	(12,687)
Property, plant and equipment, net	58,772	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	29,953	29,667
Vehicles
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	894	894
Machinery and Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	35,179	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	714	685
Construction in Progress
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3,321	$ 3,312

Property, Plant and Equipment_2

Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Property Plant And Equipment [Line Items]
Depreciation and amortization of property, plant and equipment	$ 1,693	$ 948

Leases - Schedule of Components

Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Leases [Abstract]
Operating lease cost	$ 361	$ 361
Finance lease cost - amortization of right-of-use assets	447	78
Finance lease cost - interest on lease liabilities	132	3
Short-term lease cost	117	3
Variable lease cost	1,563	418
Variable lease cost - long-term supply contracts	43,086	30,183
Total lease cost	$ 45,706	$ 31,046

Leases - Summary of Operating a

Leases - Summary of Operating and Finance Leases Future Undiscounted Cash Flows (Details) $ in Thousands	Mar. 26, 2023 USD ($)
Leases [Abstract]
Operating leases 2023	$ 879
Operating leases 2024	471
Operating leases 2025	338
Operating leases 2026	115
Operating leases 2027	0
Operating leases Thereafter	0
Total lease payments	1,803
Less imputed interest	(63)
Total present value of lease liabilities	1,740
Finance leases 2023	1,545
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	9,436
Less imputed interest	(1,223)
Total present value of lease liabilities	$ 8,213

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Leases [Abstract]
ROU assets obtained in exchange for new finance lease obligations	$ 4	$ 20

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Payables and Accruals [Abstract]
Accrued employee related costs	$ 3,356	$ 7,453
Accrued promotions and customer deductions	4,043	4,414
Accrued distribution fees and freight	2,900	2,351
Accrued marketing and broker commissions	2,343	1,598
Accrued purchases of inventory	1,670	1,349
Accrued professional fees	1,400	761
Accrued derivative premiums	2,152	0
Accrued property, plant and equipment	322	153
Other	668	398
Accrued liabilities	$ 18,854	$ 18,477

Product Exit Costs - Additional

Product Exit Costs - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Dec. 25, 2022	Mar. 27, 2022
Restructuring and Related Activities [Abstract]
Liability balance related to exit	$ 45	$ 119	$ 1,658
Liability balance settled or released date	Jun. 25, 2023

Product Exit Costs - Summary of

Product Exit Costs - Summary of Activity Related to Exit of Breakfast Products (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Restructuring Cost And Reserve [Line Items]
Restructuring Reserve, Beginning Balance	$ 119
Charges Incurred	0	$ 2,341
Amounts Paid or Settled	(74)	(683)
Amounts Released as Unutilized	0	0
Restructuring Reserve, Ending Balance	45	1,658
Net Revenue | Customer Allowances
Restructuring Cost And Reserve [Line Items]
Charges Incurred		146
Amounts Paid or Settled		0
Amounts Released as Unutilized		0
Restructuring Reserve, Ending Balance		146
Cost of Goods Sold | Inventory Obsolescence
Restructuring Cost And Reserve [Line Items]
Charges Incurred		749
Amounts Paid or Settled		(433)
Amounts Released as Unutilized		0
Restructuring Reserve, Ending Balance		316
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		(49)
Amounts Released as Unutilized		0
Restructuring Reserve, Ending Balance		$ 1,077

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 26, 2023	Mar. 26, 2023	Mar. 27, 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	$ 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
Debt instrument, maturity	2024-04
PNC Bank, National Association | Revolving Line of Credit | Sixth Amendment
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity	$ 20,000,000	$ 20,000,000
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%
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%
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 March 26, 2023, the Company was in compliance with all covenants under the Credit Facility.
PNC Bank, National Association | Credit Facility | Term Loan And Equipment Loan
Debt Instrument [Line Items]
Debt instrument eliminated	2021-04

Common Stock - Additional Infor

Common Stock - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 26, 2023	Dec. 25, 2022
Class Of Stock [Line Items]
Common stock, shares authorized	310,000,000	310,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares issued	40,839,050	40,746,990
Common stock, shares outstanding	40,839,050	40,746,990
Common stock voting rights	Each share of the Company’s common stock is entitled to one vote on all matters submitted to a vote of the Company’s stockholders.
Common stock dividend declared or paid	$ 0

Common Stock - Schedule of Rese

Common Stock - Schedule of Reserved Shares of Common Stock for Issuance (Details) - shares	Mar. 26, 2023	Dec. 25, 2022
Class Of Stock [Line Items]
Common stock for issuance	18,595,298	16,643,168
Employee Stock Option
Class Of Stock [Line Items]
Common stock for issuance	5,123,860	4,634,205
Restricted Stock Units
Class Of Stock [Line Items]
Common stock for issuance	675,029	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	12,796,409	11,503,459

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended
	Jan. 01, 2023	Jul. 31, 2020	Mar. 26, 2023	Mar. 27, 2022	Dec. 25, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of shares vested			$ 1,015	$ 959
Common stock for issuance			18,595,298		16,643,168
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense			$ 7,377
Expected weighted-average period of recognition			2 years 1 month 24 days
Stock options - vest year			3 years
Stock options - date of grant and expire			10 years
Common stock for issuance			5,123,860		4,634,205
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense			$ 8,424
RSU of shares vested			$ 1,655	$ 288
Expected weighted-average period of recognition			2 years 5 months 1 day
Common stock for issuance			675,029		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%
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			10,709,893
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%
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 March 26, 2023, 2,086,516 shares of
Number of new shares issued	407,471
Common stock for issuance			2,086,516

Stock-Based Compensation -Summa

Stock-Based Compensation -Summary of Recognized Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 2,241	$ 1,296
Cost of Goods Sold
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	53	29
Selling, General and Administrative
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 2,188	$ 1,267

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 26, 2023 USD ($) $ / shares shares
Share-Based Payment Arrangement [Abstract]
Number of Options, Beginning balance | shares	4,634,205
Number of Options, Granted | shares	508,920
Number of Options, Exercised | shares	0
Number of Options, Cancelled | shares	(19,265)
Number of Options, Ending balance | shares	5,123,860
Number of Options, Options exercisable as of June 26, 2022 | shares	3,309,518
Number of Options, Options vested and expected to vest as of June 26, 2022 | shares	5,123,777
Weighted-Average Exercise Price, Beginning balance | $ / shares	$ 9.35
Weighted-Average Exercise Price, Options Granted | $ / shares	15.06
Weighted-Average Exercise Price, Options Exercised | $ / shares	0
Weighted-Average Exercise Price, Options Cancelled | $ / shares	17.20
Weighted-Average Exercise Price, Ending balance | $ / shares	9.88
Weighted-Average Exercise Price, Options exercisable as of June 26, 2022 | $ / shares	7.17
Weighted-Average Exercise Price, Options vested and expected to vest as of June 26, 2022 | $ / shares	$ 9.88
Weighted Average Remaining Contractual Life (Years), Balance	5 years 9 months 18 days
Weighted Average Remaining Contractual Life (Years), Options exercisable as of June 26, 2022	4 years 7 months 6 days
Weighted Average Remaining Contractual Life (Years), Options vested and expected to vest as of June 26, 2022	5 years 9 months 18 days
Aggregate Intrinsic Value, Beginning balance | $	$ 38,522
Aggregate Intrinsic Value, Exercised | $	0
Aggregate Intrinsic Value, Cancelled | $	61
Aggregate Intrinsic Value, Ending balance | $	36,625
Aggregate Intrinsic Value, Options exercisable as of June 26, 2022 | $	30,934
Aggregate Intrinsic Value, Options vested and expected to vest as of June 26, 2022 | $	$ 36,624

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units	3 Months Ended
	Mar. 26, 2023 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of RSUs, Beginning balance | shares	505,504
Number of RSUs, Granted | shares	305,606
Number of RSUs, Vested | shares	(127,595)
Number of RSUs, Forfeited | shares	(8,486)
Number of RSUs, Ending balance | shares	675,029
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares	$ 13.58
Weighted-Average Grant Date Fair Value, Granted | $ / shares	15.14
Weighted-Average Grant Date Fair Value, Vested | $ / shares	12.97
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares	14.17
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares	$ 14.40

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	26%	61%

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Schedule of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Numerator:
Net income (loss)	$ 7,150	$ (1,538)
Less: Net loss attributable to noncontrolling interests	0	(2)
Net income (loss) attributable to Vital Farms, Inc. common stockholders	$ 7,150	$ (1,536)
Denominator:
Weighted average common shares outstanding — basic	40,764,546	40,532,779
Weighted average effect of potentially dilutive securities:
Weighted average common shares outstanding — diluted	43,398,336	40,532,779
Net income (loss) per share attributable to Vital Farms, Inc. stockholders
Basic	$ 0.18	$ (0.04)
Diluted	$ 0.16	$ (0.04)
Employee Stock Option
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options	2,423,087	0
Restricted Stock Units
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options	208,947	0
Employee Stock Purchase Plan
Weighted average effect of potentially dilutive securities:
Effect of potentially dilutive stock options	1,756	0

Net Income (Loss) Per Share -_2

Net Income (Loss) Per Share - Schedule of Excluded Common Shares Including at Anti-dilutive Effect (Details) - shares	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	23,067	28,546
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	22,363	2,624
Unvested Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	704	25,922

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive loss to earnings	$ (34)	$ (50)
Tax (expense) benefit	8	12
Net of tax	(26)	(38)
Losses on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified from accumulated other comprehensive loss to earnings	$ (34)	$ (50)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Loss - Schedule of Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized net holding gain (loss), Before Tax	$ 517	$ (1,075)
Unrealized net holding gain (loss), Tax	(122)	254
Unrealized net holding gain (loss), After Tax	395	(821)
Amounts reclassified for realized losses to earnings, Before Tax	34	50
Amounts reclassified for realized losses to earnings, Tax	(8)	(12)
Net of tax	26	38
Income tax (expense) benefit related to items of other comprehensive income (loss)	(130)	242
Other comprehensive income (loss), net of tax	421	(783)
Other comprehensive income (loss), before tax	551	(1,025)
Available-for-Sale Debt Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified for realized losses to earnings, Before Tax	$ 34	$ 50

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - Sandpebble Builders Preconstruction, Inc - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Related Party Transaction [Line Items]
Expense paid to related party	$ 116	$ 121
Amounts owed to related party	$ 373	$ 945