Earnings per Share

6 Months Ended

Jun. 25, 2023

7. Earnings per Share

We compute earnings per share using the two-class method. The two-class method requires an earnings allocation formula that determines earnings per share for common shareholders and participating security holders according to dividends declared and participating rights in undistributed earnings. Time-based restricted stock awards are participating securities because holders of such shares have non-forfeitable dividend rights and participate in undistributed earnings with common stock. Under the two-class method, total dividends provided to the holders of participating securities and undistributed earnings allocated to participating securities, are subtracted from net income attributable to the Company in determining net income attributable to common shareholders.

Basic earnings per common share are computed by dividing net income attributable to common shareholders by the weighted-average common shares outstanding. Diluted earnings per common share are computed by dividing the net income attributable to common shareholders by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding consist of basic weighted average common shares outstanding plus weighted average awards outstanding under our equity compensation plans, which are dilutive securities.

The calculations of basic and diluted earnings per common share are as follows (in thousands, except per share data):


	Three Months Ended				Six Months Ended
	June 25, 2023		June 26, 2022		June 25, 2023		June 26, 2022
Basic earnings per common share
Net income attributable to the Company	$	17,768	$	25,433	$	40,144	$	35,927
Dividends paid to participating securities	—		(82)		—		(141)
Net income attributable to participating securities	—		(111)		—		(93)
Net income attributable to common shareholders	$	17,768	$	25,240	$	40,144	$	35,693

Basic weighted average common shares outstanding	32,563		35,624		33,359		35,775
Basic earnings per common share	$	0.55	$	0.71	$	1.20	$	1.00

Diluted earnings per common share
Net income attributable to common shareholders	$	17,768	$	25,240	$	40,144	$	35,693

Weighted average common shares outstanding	32,563		35,624		33,359		35,775
Dilutive effect of outstanding equity awards (a)	87		200		128		257
Diluted weighted average common shares outstanding	32,650		35,824		33,487		36,032
Diluted earnings per common share	$	0.54	$	0.70	$	1.20	$	0.99

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(a) Excludes 103,000 and 49,000 shares underlying equity awards for the three and six months ended June 25, 2023, respectively, and 63,000 and 42,000 shares underlying equity awards for the three and six months ended June 26, 2022, respectively, as the effect of including such awards would have been anti-dilutive.