Earnings Per Share

3 Months Ended

Jan. 02, 2021

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the daily weighted average number of common shares outstanding during the applicable period. Under the treasury stock method, shares associated with certain stock options have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options would lead to a net reduction in common shares outstanding or anti-dilution. As a result, stock options to acquire 805 and 858 weighted common shares have been excluded from the diluted weighted average common shares outstanding calculation for the three months ended January 2, 2021 and December 28, 2019, respectively.

Basic and diluted earnings per share are calculated as follows:


	Three Months Ended
	January 2, 2021		December 28, 2019
Net income	$	1,715	$	5,306

Weighted average common shares outstanding	19,312		19,146
Effect of dilutive securities
Stock-based compensation	164		223

Weighted average dilutive common shares outstanding	19,476		19,369

Earnings per share
Basic	$	0.09	$	0.28
Diluted	0.09		0.27