NET INCOME PER SHARE

6 Months Ended

Jan. 27, 2024

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 table below reconciles Net income to Net income available to Class A and Class B shareholders:


	13 Weeks Ended				26 Weeks Ended
	January 27, 2024		January 28, 2023		January 27, 2024		January 28, 2023
Net income	$	14,480	$	12,322	$	26,066	$	23,405
Distributed and allocated undistributed Net income to unvested restricted shareholders	542		339		983		644
Net income available to Class A and Class B shareholders	$	13,938	$	11,983	$	25,083	$	22,761

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


	13 Weeks Ended				26 Weeks Ended
	January 27, 2024				January 27, 2024
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	10,972	$	2,966	$	19,752	$	5,331
Conversion of Class B to Class A shares	2,966		—		5,331		—

Net income allocated, diluted	$	13,938	$	2,966	$	25,083	$	5,331

Denominator:
Weighted average shares outstanding, basic	10,099		4,204		10,123		4,204
Conversion of Class B to Class A shares	4,204		—		4,204		—

Weighted average shares outstanding, diluted	14,303		4,204		14,327		4,204

	13 Weeks Ended				26 Weeks Ended
	January 28, 2023				January 28, 2023
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	9,342	$	2,642	$	17,743	$	5,017
Conversion of Class B to Class A shares	2,642		—		5,017		—

Net income allocated, diluted	$	11,984	$	2,642	$	22,760	$	5,017

Denominator:
Weighted average shares outstanding, basic	9,863		4,294		9,863		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—

Weighted average shares outstanding, diluted	14,157		4,294		14,157		4,294

Outstanding stock options to purchase Class A shares of 85 and 90 were excluded from the calculation of diluted net income per share at January 27, 2024 and January 28, 2023, respectively, as a result of their anti-dilutive effect. In addition, 496 and 358 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 January 27, 2024 and January 28, 2023, respectively, due to their anti-dilutive effect.