Earnings per share

9 Months Ended

Sep. 25, 2021

The Company calculates basic and diluted earnings per share using the two-class method. The following table sets forth the computation of basic and diluted earnings per share attributable to common shareholders:


	Three months ended				Nine months ended
(in thousands, except per share amounts)	September 25, 2021		September 26, 2020		September 25, 2021		September 26, 2020
Basic earnings per share:
Net income attributable to Driven Brands Holdings Inc.	$	33,124	4,079		48,389		3,289
Less: Net income attributable to participating securities, basic	709		—		1,057		—
Net income after participating securities, basic	32,415		4,079		47,332		3,289
Weighted-average common shares outstanding (a)	162,635		111,950		160,030		96,643
Basic earnings per share	$	0.20	$	0.04	$	0.30	$	0.03

Diluted earnings per share:
Net income attributable to Driven Brands Holdings Inc.	33,124		4,079		48,389		3,289
Less: Net income attributable to participating securities, diluted	632		—		942		—
Net income after participating securities, diluted	32,492		4,079		47,447		3,289
Weighted-average common shares outstanding (a)	162,635		111,950		160,030		96,643
Dilutive effect of share-based awards	3,995		—		3,938		—
Weighted-average common shares outstanding, as adjusted (a)	166,630		111,950		163,968		96,643
Diluted earnings per share	$	0.19	$	0.04	$	0.29	$	0.03

(a) Weighted average common shares for 2020 have been adjusted to reflect an implied 88,990-for-one stock split that became effective on January 14, 2021. See Note 1 for additional information.

Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to Driven Brands Holdings Inc. by the weighted-average number of common shares outstanding for the period. In addition, the Company’s participating securities are related to certain restricted stock awards issued to Section 16 officers which include non-forfeitable dividend rights. The Company has 4,618,722 shares of performance awards that are contingent on performance conditions which have not yet been met, and therefore have been excluded from the computation of weighted average shares for the three and nine months ended September 25, 2021.

The following securities were not included in the computation of diluted shares outstanding because the effect would be antidilutive:


Number of securities (in thousands)	Three Months Ended September 25, 2021	Nine months ended September 25, 2021
Restricted stock units	—	2
Stock options	—	36
Total	—	38