Earnings per Share

12 Months Ended

Dec. 29, 2024

7. Earnings per Share

We compute earnings per share using the two-class method. The two-class method requires an earnings allocation formula that determines earnings per share for common shareholders and participating security holders according to dividends declared and participating rights in undistributed earnings. Time-based restricted stock awards are participating securities because holders of such unvested shares have rights to receive non-forfeitable dividends. Under the two-class method, total dividends provided to the holders of participating securities are subtracted from net income attributable to the Company in determining net income attributable to common shareholders. The Company may, at its sole discretion, require any dividends paid on the unvested restricted stock awards to be paid in shares rather than in cash, which could then be forfeited if the employee forfeits the underlying awards.

Basic earnings per common share are computed by dividing net income attributable to common shareholders by the weighted-average common shares outstanding. Diluted earnings per common share are computed by dividing the net income attributable to common shareholders by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding consist of basic weighted average common shares outstanding plus weighted average awards outstanding under our equity compensation plans, which are dilutive securities.

The calculations of basic earnings per common share and diluted earnings per common share for the years ended December 29, 2024, December 31, 2023 and December 25, 2022 are as follows (in thousands, except per share data):


	2024		2023		2022
Calculation of net income attributable to common shareholders
Net income attributable to the Company	$	83,486	$	82,098	$	67,772

Dividends paid to participating securities	(166)		—		(306)
Net income attributable to participating securities	—		—		(104)
Net income attributable to common shareholders	$	83,320	$	82,098	$	67,362

Basic earnings per common share
Basic weighted average common shares outstanding	32,717		32,931		35,497
Basic earnings per common share	$	2.55	$	2.49	$	1.90

Diluted earnings per common share


Weighted average common shares outstanding	32,717		32,931		35,497
Dilutive effect of outstanding equity awards (a)	102		228		220
Diluted weighted average common shares outstanding	32,819		33,159		35,717
Diluted earnings per common share	$	2.54	$	2.48	$	1.89

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(a)Excludes 342,440 and 194,846 shares underlying equity awards for the year ended December 29, 2024 and December 31, 2023, respectively, as the effect of including such awards would have been anti-dilutive (none in 2022).

See “Note 20. Equity Compensation” for additional information regarding our equity awards, including restricted stock.