Earnings per Share

12 Months Ended

Dec. 31, 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 earnings per common share and diluted earnings per common share for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 are as follows (in thousands, except per share data):


	2023		2022		2021
Basic earnings per common share
Net income attributable to the Company	$	82,098	$	67,772	$	120,016
Dividends on redemption of Series B Convertible Preferred Stock	—		—		(109,852)
Dividends paid to participating securities	—		(306)		(6,091)
Net income attributable to participating securities	—		(104)		—
Net income attributable to common shareholders	$	82,098	$	67,362	$	4,073

Basic weighted average common shares outstanding	32,931		35,497		35,007
Basic earnings per common share	$	2.49	$	1.90	$	0.12

Diluted earnings per common share
Net income attributable to common shareholders	$	82,098	$	67,362	$	4,073

Weighted average common shares outstanding	32,931		35,497		35,007
Dilutive effect of outstanding equity awards (a)	228		220		330
Diluted weighted average common shares outstanding	33,159		35,717		35,337
Diluted earnings per common share	$	2.48	$	1.89	$	0.12

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(a)Excludes 194,846 shares underlying equity awards for the year ended December 31, 2023, as the effect of including such awards would have been anti-dilutive, and none in 2022 or 2021.

See “Note 20. Equity Compensation” for additional information regarding our equity awards, including restricted stock.