Net Income per Share

6 Months Ended

Jun. 25, 2022

14. Net income per share

Basic net income per share of Class A common stock is computed by dividing net income attributable to Class A common shareholders for the period by the weighted average number of shares of Class A common stock outstanding for the same period. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period in which the shares were outstanding. Diluted net income per share of Class A common stock is computed by dividing net income attributable to Class A common shareholders by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities using the more dilutive of either the treasury stock method or the if-converted method.

Prior to the Reorganization Transactions, the EWC Ventures capital structure included Class A, Class B, Class C, and Class D Units. We determined that the presentation of net income per unit for the period prior to the Reorganization Transactions would not be meaningful to the users of these unaudited condensed consolidated financial statements due to the significant nature of the Reorganization Transactions on the capital structure. Therefore, net income per unit information has not been presented for the 13 and 26 weeks ended June 26, 2021.

The following table sets forth the computation of basic net income per share of Class A common stock for the 13 and 26 weeks ended June 25, 2022:


	13 Weeks Ended		26 Weeks Ended
	June 25, 2022		June 25, 2022
(in thousands, except for share and per share amounts)
Net income	$	2,031	$	6,057
Less: net income attributable to noncontrolling interests		775		2,694
Net income applicable to Class A common shareholders	$	1,256	$	3,363
Basic weighted average outstanding shares
Class A Common Stock		37,911,637		37,432,586
Basic net income per share applicable to common shareholders:
Class A Common Stock	$	0.03	$	0.09

The following table sets forth the computation of diluted net income per share of Class A common stock for the 13 and 26 weeks ended June 25, 2022:


	13 Weeks Ended		26 Weeks Ended
	June 25, 2022		June 25, 2022
(in thousands, except for share and per share amounts)
Net income	$	2,031	$	6,057
Less: net income attributable to noncontrolling interests		853		2,872
Net income applicable to Class A common shareholders	$	1,178	$	3,185
Diluted weighted average outstanding shares
Basic weighted average outstanding shares - Class A Common Stock		37,911,637		37,432,586
Effect of dilutive securities:
RSUs		207,550		196,794
Options		36,252		32,598
Diluted weighted average outstanding shares - Class A Common Stock		38,155,439		37,661,978
Diluted net income per share applicable to common shareholders:
Class A Common Stock	$	0.03	$	0.08

Shares of Class B common stock do not share in the earnings or losses attributable to the Company and are therefore not participating securities. As such, separate presentation of basic and diluted net income per share of Class B common stock under the two-class method has not been presented. Shares of Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related EWC Ventures Units, are exchangeable into shares of Class A common stock on a one-for-one basis. The 23,943,795 shares of Class B common stock outstanding as of June 25, 2022 were determined to be antidilutive and have therefore been excluded from the computation of diluted net income per share of Class A common stock.