Earnings per share

3 Months Ended

Mar. 26, 2022

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
(in thousands, except per share amounts)	March 26, 2022		March 27, 2021
Basic earnings per share:
Net income (loss) attributable to Driven Brands Holdings Inc.	$	34,443	(19,939)
Less: Net income attributable to participating securities, basic	735		—
Net income after participating securities, basic	33,708		(19,939)
Weighted-average common shares outstanding	162,762		154,827
Basic earnings (loss) per share	$	0.21	$	(0.13)


	Three months ended
(in thousands, except per share amounts)	March 26, 2022		March 27, 2021







Diluted earnings per share:
Net income (loss) attributable to Driven Brands Holdings Inc.	$	34,443	$	(19,939)
Less: Net income attributable to participating securities, diluted	657		—
Net income after participating securities, diluted	$	33,786	$	(19,939)
Weighted-average common shares outstanding	162,762		154,827
Dilutive effect of share-based awards	3,986		—
Weighted-average common shares outstanding, as adjusted	166,748		154,827
Diluted earnings (loss) per share	$	0.20	$	(0.13)

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. Also, 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 4,703,626 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 months ended March 26, 2022.

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 March 26, 2022	Three months ended March 27, 2021
Restricted stock awards	—	609
Restricted stock units	—	67
Performance stock units	—	135
Stock/IPO options	—	1,514
Employee stock purchase plan	—	123
Other options	—	48
Total	—	2,496