Net Income Per Share

9 Months Ended

Sep. 23, 2020

Earnings Per Share [Abstract]

Net Income Per Share

8. NET INCOME PER SHARE

Basic earnings per share (“EPS”) is calculated using the weighted-average number of shares of common stock outstanding during the thirteen and thirty-nine weeks ended September 23, 2020 and September 25, 2019. Diluted EPS is calculated using the weighted-average number of shares of common stock outstanding and potentially dilutive during the period, using the treasury stock method.

On August 2, 2018, the Company announced that the Board of Directors had authorized a stock repurchase program. The Company entered into a stock repurchase plan on August 28, 2018 (the “2018 Stock Repurchase Plan”), which allowed for the repurchase of up to $20.0 million of the Company’s common stock. The 2018 Stock Repurchase Plan commenced on November 6, 2018 and terminated on June 26, 2019.

On April 30, 2019, as part of the Company’s focus on stockholder returns, the Board of Directors approved a new stock repurchase program. The Company entered into a stock repurchase plan May 17, 2019 (the “2019 Stock Repurchase Plan”), which allowed for the repurchase up to $30.0 million of the Company’s common stock. The 2019 Stock Repurchase Plan commenced on June 27, 2019, and was exhausted on September 26, 2019.

Under the 2019 Stock Repurchase Plan, the Company was permitted to repurchase its common stock from time to time, in amounts and at prices that the Company deemed appropriate, subject to market conditions and other considerations. The Company’s repurchases were executed using open market purchases, including pursuant to Rule 10b5-1 trading plans, and/or through privately negotiated transactions.

For the thirteen weeks ended September 25, 2019, the Company repurchased 2,825,896 shares of common stock under the 2019 Stock Repurchase Plan, using open market purchases, for total consideration of approximately $29.9 million. For the thirty-nine weeks ended September 25, 2019, the Company repurchased 1,558,836 shares of common stock under the 2018 Stock Repurchase Plan and 2,825,896 shares of common stock under the 2019 Stock Repurchase Plan,

using open market purchases, for total consideration of approximately $48.3 million. The common stock repurchased under both the 2018 Stock Repurchase Plan and the 2019 Stock Repurchase Plan was retired upon repurchase.

Below are basic and diluted EPS data for the periods indicated (in thousands except for share and per share data):

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 23, 2020		September 25, 2019		September 23, 2020		September 25, 2019
Numerator:
Net income	$	9,920	$	6,402	$	19,019	$	21,402
Denominator:
Weighted-average shares outstanding—basic		35,471,452		35,859,502		34,989,007		37,484,372
Weighted-average shares outstanding—diluted		36,064,559		36,397,368		35,609,320		38,173,097
Net income per share—basic	$	0.28	$	0.18	$	0.54	$	0.57
Net income per share—diluted	$	0.28	$	0.18	$	0.53	$	0.56
Anti-dilutive securities not considered in diluted EPS calculation		4,071		882,253		129,218		636,099

Below is a reconciliation of basic and diluted share counts:

	Thirteen Weeks Ended		Thirty-Nine Weeks Ended
	September 23, 2020	September 25, 2019	September 23, 2020	September 25, 2019
Weighted-average shares outstanding—basic	35,471,452	35,859,502	34,989,007	37,484,372
Dilutive effect of stock options and restricted shares	593,107	537,866	620,313	688,725
Weighted-average shares outstanding—diluted	36,064,559	36,397,368	35,609,320	38,173,097