EARNINGS PER SHARE

Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potentially dilutive securities outstanding during the period. Stock options are the only potentially dilutive securities; and the number of dilutive options is computed using the treasury stock method.

The following table sets forth the calculation of basic and diluted earnings per share:

	13 Weeks Ended
	May 27, 2018		May 28, 2017

Net earnings	$	3,168	$	1,394

Weighted average common shares outstanding for basic EPS		20,242,000		20,235,000
Net effect of dilutive options		54,000		9,000
Weighted average shares outstanding for diluted EPS		20,296,000		20,244,000

Basic earnings per share	$	0.16	$	0.07

Diluted earnings per share	$	0.16	$	0.07

Potentially dilutive securities, which were

not

included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive or the options’ exercise prices were greater than the average market price of the common stock, were

544,000

and

872,000

for the

weeks ended

May 27, 2018

and

May 28, 2017,

respectively.