NOTE E - SHAREHOLDERS' EQUITY/CAPITAL STOCK

Outstanding and Exercisable Options

The changes in outstanding and exercisable options under both the 1993 Stock Option Plan (1993 Plan) and the 2003 Stock Option and Incentive Plan (2003 Plan) are shown below as of September 23, 2014:




	No. of Shares	Weighted Avg. Price Per Share		Weighted Avg. Remaining Contractual Term		Aggregate Intrinsic Value
						(in thousands)
Outstanding at beginning of year	56,501	$	18.73
Granted	—
Exercised	(9,500)	$	18.19
Forfeited or expired	(6,834)	$	30.13

Outstanding at end of quarter	40,167	$	16.92	3.26	years	$	505

Exercisable at end of quarter	40,167	$	16.92	3.26	years	$	505

All of the option shares shown in the above table as having expired during the First Quarter Fiscal 2015 were originally granted under the 1993 Plan. Their expiration on June 8, 2014 effectively terminated the 1993 Plan. The intrinsic value of stock options exercised during the First Quarter Fiscal 2015 amounted to $64.

Dividends

Regular quarterly cash dividends paid to shareholders during the First Quarter Fiscal 2015 amounted to $919 or $0.18 per share. In addition, a $0.20 per share dividend was declared on September 12, 2014. Its payment of $1,024 on October 10, 2014 (included in accounts payable at September 23, 2014) was the 215th consecutive quarterly cash dividend (a period of 54 years) paid by the Company.

Earnings Per Share

Basic earnings per share (EPS) calculations are based on the weighted average number of outstanding common shares during the period presented. Diluted EPS includes the effect of common stock equivalents, which assumes the exercise and conversion of dilutive stock options.



	Used for Basic EPS		Used for Diluted EPS
16 weeks ended:	Weighted Avg. Shares Outstanding	Stock Equivalents	Shares Outstanding

September 23, 2014	5,108,091	13,671	5,121,762
September 17, 2013	5,071,658	9,611	5,081,269

Excluded from the calculations above (because the effect was anti-dilutive), were stock options to purchase 29,834 shares during the First Quarter Fiscal 2014. No stock options were excluded from the calculation for the First Quarter Fiscal 2015.

Share-Based Payment (Compensation Cost)

The fair value of restricted stock issued (one year vesting) is recognized as compensation cost on a straight-line basis over the vesting period of the awards. No stock options have been awarded since June 2010. Compensation costs arising from all share-based payments are charged to administrative and advertising expense in the Condensed Consolidated Statement of Earnings.


	16 weeks ended
	September 23,		September 17,
	2014		2013

	(in thousands)
Restricted stock issued October 2013 ($320)	$	98	$	-
Restricted stock issued October 2012 ($320)		-		98
Share-based compensation cost, pretax		98		98
Tax benefit		(33)		(33)
Share-based compensation cost, net of tax	$	65	$	65

Effect on basic earnings per share	$	0.01	$	0.01
Effect on diluted earnings per share	$	0.01	$	0.01

Unrecognized pretax compensation cost related to restricted stock awards amounted to $25 as of September 23, 2014, which is expected to be recognized over a weighted average period of 0.08 years.

Unrestricted stock awarded under the 2012 Stock Option and Incentive Plan ($221 in June 2014 - 9,685 shares) was accrued as incentive compensation in Fiscal Year 2014. Incentive compensation for unrestricted stock is also being accrued in Fiscal Year 2015 - $68 through the 16 week period ended September 23, 2014. Unrestricted stock accruals are not included in the above table.

Compensation cost is also recognized in connection with the Company’s Employee Stock Purchase Plan. Compensation costs related to the Employee Stock Purchase Plan are determined at the end of each semi-annual offering period – October 31 and April 30.