Earnings Per Share

12 Months Ended

Dec. 29, 2024

EARNINGS PER SHARE

The Company computes basic earnings per share (“EPS”) by dividing net income by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed below. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings.

The Company includes all unvested stock awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding for basic EPS as these awards are considered participating securities. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock and are considered participating securities. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS. Any unvested share-based awards considered non-participating securities (restricted share units and performance shares) are included in diluted EPS calculations when the inclusion of these shares would be dilutive. The following table shows the computation of basic and diluted EPS:


	Fiscal Year
	2024		2023		2022
	(in thousands, except per share data)
Numerator:(1)
Net income	$	86,946	$	44,517	$	19,560

Denominator:
Weighted average shares outstanding	57,937		57,349		57,893
Participating securities	345		743		972
Shares for basic EPS	58,282		58,092		58,865
Dilutive effect of share-based awards (non-participating securities)	589		243		—
Shares for diluted EPS	58,871		58,335		58,865

Basic EPS	$	1.49	$	0.77	$	0.33
Diluted EPS	$	1.48	$	0.76	$	0.33

(1) Including income attributable to participating securities, which was $0.5 million, $0.6 million, and $0.3 million, for fiscal years 2024, 2023 and 2022, respectively.

For 2024, there were no securities excluded from the computation of diluted EPS that would have been antidilutive. For 2023, 657,391 non-participating securities that could potentially dilute basic EPS in the future, consisting of restricted share units and performance shares, were excluded from the computation of diluted EPS as these securities would have been antidilutive for the respective period.