STOCK OPTIONS

9 Months Ended

Jun. 29, 2013

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

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

10. STOCK OPTIONS

During fiscal 2012, options to purchase 251,500 shares of common stock at an exercise price of $14.40 per share were granted and are exercisable as to 50% of the shares commencing on the first anniversary of the date of grant and as to the remaining 50% commencing on the second anniversary of the date of grant. The grant date fair value of these stock options was $2.57 per share. The fair value of each of the Company’s stock options is estimated on the date of grant using a Black-Scholes option-pricing model that uses assumptions that relate to the expected volatility of the Company’s common stock, the expected dividend yield of our stock, the expected life of the options and the risk free interest rate. The assumptions used for the 2012 grant include a risk free interest rate of 1.67%, volatility of 36.2%, a dividend yield of 6.1% and an expected life of 6.25 years. 0 options were issued during the 39-week period ended June 29, 2013.

A summary of stock option activity is presented below:

	39 Weeks Ended June 29, 2013
	Shares			Weighted Average Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding, September 29, 2012		648,100		$	19.56	6.50 Years
Options:
Granted		—
Exercised		—
Canceled or expired		(8,500	)	$	16.80
Outstanding and expected to vest, June 29, 2013		639,600		$	19.59	5.75 Years	$	3,161,186
Exercisable, June 29, 2013		516,850		$	20.82	3.75 Years	$	2,332,623

Compensation cost charged to operations for the 39-week periods ended June 29, 2013 and June 30, 2012 was $238,000 and $29,000, respectively, and for the 13-week periods ended June 29, 2013 and June 30, 2012 was $79,000 and $29,000, respectively. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Condensed Statements of Income.

As of June 29, 2013, there was approximately $300,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of approximately one year.