Income Per Share

6 Months Ended

Feb. 25, 2023

8. Income Per Share

The Company calculates income per share by allocating income to its unvested participating securities as part of its income per share calculations. The following table sets forth the computation of basic income per share using the two-class method for amounts attributable to the Company’s shares of Common Stock and Class B Common Stock (in thousands, except per share data):


	Thirteen weeks ended				Twenty-six weeks ended
	February 25, 2023		February 26, 2022		February 25, 2023		February 26, 2022
Net income available to shareholders	$	17,810	$	18,451	$	51,767	$	52,156
Allocation of net income for Basic:
Common Stock	$	14,962	$	15,492	$	43,488	$	43,792
Class B Common Stock		2,848		2,959		8,279		8,364
	$	17,810	$	18,451	$	51,767	$	52,156
Weighted average number of shares for Basic:
Common Stock		15,087		15,210		15,084		15,225
Class B Common Stock		3,590		3,635		3,590		3,635
		18,677		18,845		18,674		18,860
Income per share for Basic:
Common Stock	$	0.99	$	1.02	$	2.88	$	2.88
Class B Common Stock	$	0.79	$	0.81	$	2.31	$	2.30

The Company is required to calculate diluted income per share for Common Stock using the more dilutive of the following two methods:

•

The treasury stock method; or

•

The two-class method assuming a participating security is not exercised or converted.

For the thirteen and twenty-six weeks ended February 25, 2023 and February 26, 2022, the Company’s diluted income per share assumes the conversion of all vested Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares. The following tables set forth the computation of diluted income per share of Common Stock for the thirteen and twenty-six weeks ended February 25, 2023 and February 26, 2022 (in thousands, except per share data):


	Thirteen weeks ended February 25, 2023						Twenty-six weeks ended February 25, 2023
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	14,962		15,087	$	0.99	$	43,488		15,084	$	2.88
Add: effect of dilutive potential common shares
Share-Based Awards		—		90				—		83
Class B Common Stock		2,848		3,590				8,279		3,590
As reported – Diluted	$	17,810		18,767	$	0.95	$	51,767		18,757	$	2.76


	Thirteen weeks ended February 26, 2022						Twenty-six weeks ended February 26, 2022
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	15,492		15,210	$	1.02	$	43,792		15,225	$	2.88
Add: effect of dilutive potential common shares
Share-Based Awards		—		122				—		139
Class B Common Stock		2,959		3,635				8,364		3,635
As reported – Diluted	$	18,451		18,967	$	0.97	$	52,156		18,999	$	2.75

Share-based awards that would result in the issuance of 23,494 and 56,188 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and twenty-six weeks ended February 25, 2023 because they were anti-dilutive. Share-based awards that would result in the issuance of 41,364 and 25,722 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and twenty-six weeks ended February 26, 2022 because they were anti-dilutive.