Note 9 - Share-Based Compensation

3 Months Ended

Jun. 24, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE I – SHARE-BASED COMPENSATION

Total share-based compensation during the thirteen-week periods ended June 24, 2012 and June 26, 2011 was $56,000 and $86,000, respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of June 24, 2012, there was $658,000of unamortized compensation expense related to unvested stock options. We expect to recognize this expense over approximately two years and eleven months, which represents the requisite service periods for such awards.

On September 14, 2010, the Company adopted the 2010 Stock Incentive Plan (“the 2010 Plan”) which provides for the issuance of up to 150,000 shares pursuant to the 2010 Plan together with 171,000 shares that had not been issued under the 2001 Stock Option Plan (the “2001 Plan”) and the 2002 Stock Incentive Plan (the “2002 Plan”) plus any shares subject to any outstanding options or restricted stock grants under the 2001 Plan and the 2002 Plan that subsequently expire unexercised or are otherwise forfeited up to a maximum of an additional 100,000 shares.

During the thirteen-week period ended June 26, 2011, the Company granted options to purchase 177,500 shares at an exercise price of $17.75 per share, all of which expire five years from the date of grant. These stock options vest ratably over a four-year period as follows: 25% on June 6, 2012, 25% on June 6, 2013, 25% on June 6, 2014 and the balance on June 6, 2015.

There were no share-based awards granted during the thirteen-week period ended June 24, 2012.

The weighted-average option fair values, as determined using the Black-Scholes option valuation model, and the assumptions used to estimate these values for stock options granted during the thirteen weeks ended June 26, 2011, are as follows:

Weighted-average option fair values	$	5.039
Expected life (years)		5.0
Interest rate		1.60	%
Volatility		28.90	%
Dividend yield		0	%

The expected dividend yield is based on historical and projected dividend yields. The Company estimates expected volatility based primarily on historical monthly price changes of the Company’s stock equal to the expected life of the option. The risk free interest rate is based on the U.S. Treasury yield in effect at the time of the grant. The expected option term is the number of years the Company estimates the options will be outstanding prior to exercise based on expected employment termination behavior.

Stock options outstanding:

Transactions with respect to stock options for the thirteen weeks ended June 24, 2012 are as follows:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding at March 25, 2012		622,000		$	13.21		3.05	$	4,849,000
Granted		-			-		-		-
Expired		-			-		-		-
Exercised		(90,000	)	$	15.93		-		-
Options outstanding at June 24, 2012		532,000		$	12.75		3.24	$	8,414,000
Options exercisable at June 24, 2012		398,875		$	11.09		3.01	$	6,974,000