Note 3. Earnings Per Share

3 Months Ended

Dec. 18, 2013

Earnings per share attributable to Biglari Holdings Inc.

Note 3. Earnings Per Share

Earnings per share of common stock is based on the weighted average number of shares outstanding during the year. In fiscal year 2013, Biglari Holdings completed an offering of transferable subscription rights.   The offering was oversubscribed and 286,767 new shares of common stock were issued. Earnings per share for the twelve weeks ending December 19, 2012 have been retroactively restated to account for the 2013 rights offering. 

For the first quarter of fiscal year 2014, the shares of Company stock attributable to our limited partner interest in the The Lion Fund, L.P. — based on our proportional ownership during the period — are considered treasury stock on the consolidated balance sheet and thereby deemed to calculate the weighted average common shares outstanding. 

For the first quarter of fiscal year 2013 all common shares of the Company held by the consolidated affiliated partnerships are recorded in treasury stock on the consolidated balance sheet.  In order to compute the weighted average common shares outstanding, only the shares of treasury stock attributable to the unrelated limited partners of the consolidated affiliated partnerships — based on their proportional ownership during the period — are considered outstanding shares.

The following table presents a reconciliation of basic and diluted weighted average common shares.

	Twelve Weeks Ended
	December 18, 2013	December 19, 2012
Basic earnings per share:
Weighted average common shares  ............................................................................................	1,588,417	1,435,987
Diluted earnings per share:
Weighted average common shares  ............................................................................................	1,588,417	1,435,987
Dilutive effect of stock awards  ................................................................................................	3,414	2,606
Weighted average common and incremental shares  ..................................................................	1,591,831	1,438,593
Number of share-based awards excluded from the calculation of earnings per share as the
awards' exercise prices were greater than the average market price of the Company's
common stock............................................................................................................................	-	705