Income Per Share

3 Months Ended

Nov. 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
	November 25, 2023		November 26, 2022
Net income available to shareholders	$	42,325	$	33,957
Allocation of net income for Basic:
Common Stock	$	35,566	$	28,525
Class B Common Stock		6,759		5,432
	$	42,325	$	33,957
Weighted average number of shares for Basic:
Common Stock		15,111		15,082
Class B Common Stock		3,590		3,590
		18,702		18,672
Income per share for Basic:
Common Stock	$	2.35	$	1.89
Class B Common Stock	$	1.88	$	1.51

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 weeks ended November 25, 2023 and November 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 weeks ended November 25, 2023 and November 26, 2022 (in thousands, except per share data):


	Thirteen Weeks Ended November 25, 2023
	Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	35,566		15,111	$	2.35
Add: effect of dilutive potential common shares
Share-Based Awards		—		67
Class B Common Stock		6,759		3,590
As reported – Diluted	$	42,325		18,769	$	2.26


	Thirteen Weeks Ended November 26, 2022
	Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	28,525		15,082	$	1.89
Add: effect of dilutive potential common shares
Share-Based Awards		—		82
Class B Common Stock		5,432		3,590
As reported – Diluted	$	33,957		18,754	$	1.81

Share-based awards that would result in the issuance of 67,845 and 49,246 shares of Common Stock were excluded from the calculation of diluted income per share for the thirteen weeks ended November 25, 2023 and November 26, 2022, respectively, because they were anti-dilutive.