Note 10 - Share-Based Compensation

9 Months Ended

Dec. 25, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE J – SHARE-BASED COMPENSATION

Total share-based compensation during the thirteen -week periods ended December 25, 2011 and December 26, 2010 was $56,000 and $82,000, respectively. Total share-based compensation during the thirty-nine -week periods ended December 25, 2011 and December 26, 2010 was $218,000 and $296,000, respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of December 25, 2011, there was $770,000of unamortized compensation expense related to stock options. We expect to recognize this expense over approximately three years and five months, which represents the requisite service periods for such awards.

On September 14, 2010, the Company adopted the 2010 Stock Incentive Plan (the “2010 Plan”) which provides for the issuance of up to 150,000 additional shares pursuant to the 2010 Plan together with 171,000 shares that have not been issued under the 2001 Stock Option Plan (the “2001 Plan”) and the 2002 Stock Incentive Plan (the “2002 Plan”) plus any shares subject to any outstanding options or restricted stock grants under the 2001 Plan and the 2002 Plan that subsequently expire unexercised or are otherwise forfeited up to a maximum of an additional 100,000 shares.

During the thirty-nine week period ended December 25, 2011, the Company granted 177,500 stock options having an exercise price of $17.75 per share, all of which expire five years from the date of grant. All of such stock options vest ratably over a four-year period commencing June 6, 2012. There were no share-based awards granted during the thirty-nine -week period ended December 26, 2010.

The weighted-average option fair values, as determined using the Black-Scholes option valuation model, and the assumptions used to estimate these values for stock options granted during the thirty-nine weeks ended December 25, 2011, were as follows:

Weighted-average option fair values	$	5.039
Expected life (years)		5.0
Interest rate		1.60	%
Volatility		28.90	%
Dividend yield		0	%

The expected dividend yield is based on historical and projected dividend yields. The Company estimates volatility based primarily on historical monthly price changes of the Company’s stock equal to the expected life of the option. The risk free interest rate is based on the U.S. Treasury yield in effect at the time of the grant. The expected option term is the number of years the Company estimates the options will be outstanding prior to exercise based on expected employment termination behavior.

Stock options outstanding:

Transactions with respect to stock options for the thirty-nine weeks ended December 25, 2011 were as follows:

				Weighted-		Weighted-
				Average		Average		Aggregate
				Exercise		Remaining		Intrinsic
	Shares			Price		Contractual Life		Value
Options outstanding at March 27, 2011		470,000		$	11.29		3.48	$	2,766,000
Granted		177,500			17.75		4.45		-
Expired		-			-		-		-
Exercised		(2,500	)	$	3.20		-		-
Options outstanding at December 25, 2011		645,000		$	13.10		3.21	$	5,127,000
Options exercisable at December 25, 2011		467,500		$	11.34		2.74	$	4,541,000