NET INCOME PER SHARE

9 Months Ended

Apr. 24, 2021

The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54% greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time.

The Company utilizes the two-class method of computing and presenting net income per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than Class B common stock, in accordance with the classes' respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method.

Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for-share basis, as this method is more dilutive than the two-class method. Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock.

The tables below reconcile the numerators and denominators of basic and diluted net income per share for all periods presented.


	13 Weeks Ended				39 Weeks Ended
	April 24, 2021				April 24, 2021
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	1,943	$	551	$	7,914	$	2,242
Conversion of Class B to Class A shares	551		—		2,242		—

Net income allocated, diluted	$	2,494	$	551	$	10,156	$	2,242

Denominator:
Weighted average shares outstanding, basic	9,850		4,294		9,850		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—

Weighted average shares outstanding, diluted	14,144		4,294		14,144		4,294

	13 Weeks Ended				39 Weeks Ended
	April 25, 2020				April 25, 2020
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	8,431	$	2,398	$	11,892	$	3,390
Conversion of Class B to Class A shares	2,398		—		3,390		—

Net income allocated, diluted	$	10,829	$	2,398	$	15,282	$	3,390

Denominator:
Weighted average shares outstanding, basic	9,789		4,294		9,775		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—

Weighted average shares outstanding, diluted	14,083		4,294		14,069		4,294

Outstanding stock options to purchase Class A shares of 156 and 159 were excluded from the calculation of diluted net income per share at April 24, 2021 and April 25, 2020, respectively, as a result of their anti-dilutive effect. In addition, 398 and 397 non-vested restricted Class A shares, which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation at April 24, 2021 and April 25, 2020, respectively, due to their anti-dilutive effect.