NOTE E – INCOME PER SHARE

Basic income per common share is calculated by dividing income by the weighted-average number of common shares outstanding and excludes any dilutive effect of stock options. Diluted income per common share gives effect to all potentially dilutive common shares that were outstanding during the period. Dilutive common shares used in the computation of diluted income per common share result from the assumed exercise of stock options and warrants, as determined using the treasury stock method.

The following chart provides a reconciliation of information used in calculating the per-share amounts for the

thirteen

and

twenty-six

week periods ended

September 29, 2019

and

September 23, 2018,

respectively.

Thirteen weeks
									Net Income
	Net Income				Number of Shares				Per Share
	201 9		2018		201 9		2018		201 9		2018
	(in thousands)				(in thousands)
Basic EPS
Basic calculation	$	3,658	$	4,484		4,227		4,188	$	0.87	$	1.07
Effect of dilutive employee stock options		-		-		-		43		-		(0.01	)
Diluted EPS
Diluted calculation	$	3,658	$	4,484		4,227		4,231	$	0.87	$	1.06

Twenty-six weeks
									Net Income
	Net Income				Number of Shares				Per Share
	201 9		2018		201 9		2018		201 9		2018
	(in thousands)				(in thousands)
Basic EPS
Basic calculation	$	9,027	$	9,279		4,216		4,187	$	2.14	$	2.22
Effect of dilutive employee stock options		-		-		-		42		-		(0.03	)
Diluted EPS
Diluted calculation	$	9,027	$	9,279		4,216		4,229	$	2.14	$	2.19

Options to purchase

10,000

shares of common stock in the

thirteen

and

twenty-six

week periods ended

September 29, 2019

were

not

included in the computation of diluted EPS because the exercise price exceeded the average market price of common shares during the period.