The Company calculates net income per share using the two-class method, which requires the Company to allocate net income to its Class A Common Shares, Class B Common Shares and unvested share-based payment awards that participate in dividends with common stock, in the calculation of net income per share.

The Class A Common Stock has no voting rights, except (1) as required by law, (2) for the election of Class A Directors, and (3) that the approval of the holders of the Class A Common Stock is required for (a) certain future authorizations or issuances of additional securities which have rights senior to Class A Common Stock, (b) certain alterations of rights or terms of the Class A or Class B Common Stock as set forth in the Articles of Organization of the Company, (c) other amendments of the Articles of Organization of the Company, (d) certain mergers or consolidations with, or acquisitions of, other entities, and (e) sales or dispositions of any significant portion of the Company’s assets.

The Class B Common Stock has full voting rights, including the right to (1) elect a majority of the members of the Company’s Board of Directors and (2) approve all (a) amendments to the Company’s Articles of Organization, (b) mergers or consolidations with, or acquisitions of, other entities, (c) sales or dispositions of any significant portion of the Company’s assets, and (d) equity-based and other executive compensation and other significant corporate matters. The Company’s Class B Common Stock is not listed for trading. Each share of the Class B Common Stock is freely convertible into one share of Class A Common Stock, upon request of the respective Class B holder, and participates equally in dividends.

The Company’s unvested share-based payment awards include unvested shares (1) issued under the Company’s investment share program, which permits employees who have been with the Company for at least one year to purchase shares of Class A Common Stock and to purchase those shares at a discount ranging from 20% to 40% below market value based on years of employment starting after two years of employment, and (2) awarded as restricted stock awards at the discretion of the Company’s Board of Directors. The investment shares and restricted stock awards generally vest over five years in equal number of shares. The unvested shares participate equally in dividends. See Note M for a discussion of the current year unvested stock awards and issuances.

Included in the computation of net income per diluted common share are dilutive outstanding stock options and restricted stock that are vested or expected to vest. At its discretion, the Board of Directors grants stock options and restricted stock to senior management and certain key employees. The terms of the employee stock options are determined by the Board of Directors at the time of grant. To date, stock options granted to employees vest over various service periods and/or based on the attainment of certain performance criteria and generally expire after ten years. In December 2018, the Employee Equity Incentive Plan was amended to permit the grant of restricted stock units. The restricted stock units generally vest over four years in equal number of shares. Each restricted stock unit represents an unfunded and unsecured right to receive one share of Class A Stock upon satisfaction of the vesting criteria. The unvested shares participate equally in dividends and are forfeitable. Prior to March 1, 2019, the Company granted restricted stock awards, generally vesting over five years in equal number of shares. The Company also grants stock options to its non-employee directors upon election or re-election to the Board of Directors. The number of option shares granted to non-employee directors is calculated based on a defined formula and these stock options vest immediately upon grant and expire after ten years.

The following table sets forth the computation of basic net income per share using the two-class method:


	Thirteen weeks ended				Twenty-six weeks ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021
	(in thousands, except per share data)				(in thousands, except per share data)
Net income	$	53,349	$	59,195	$	51,394	$	124,760
Allocation of net income for basic:
Class A Common Stock	$	44,261	$	48,710	$	42,631	$	102,354
Class B Common Stock		8,956		10,268		8,634		21,893
Unvested participating shares		132		217		129		513
	$	53,349	$	59,195	$	51,394	$	124,760
Weighted average number of shares for basic:
Class A Common Stock		10,221		10,108		10,210		10,072
Class B Common Stock*		2,068		2,131		2,068		2,155
Unvested participating shares		30		44		31		50
		12,319		12,283		12,309		12,277
Net income per share for basic:
Class A Common Stock	$	4.33	$	4.82	$	4.18	$	10.16
Class B Common Stock	$	4.33	$	4.82	$	4.18	$	10.16

*The reduction in Class B Common Stock resulted from the conversion to Class A Common stock during fiscal 2021.

The Company calculates diluted net income per share for common stock using the more dilutive of (1) the treasury stock method, or (2) the two-class method, which assumes the participating securities are not exercised.

The following table sets forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock for the thirteen and twenty-six weeks ended June 25, 2022 and for the thirteen and twenty-six weeks ended June 26, 2021:


	Thirteen weeks ended
	June 25, 2022						June 26, 2021
	Earnings to Common Shareholders		Common Shares		EPS		Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported - basic	$	44,261		10,221	$	4.33	$	48,710		10,108	$	4.82
Add: effect of dilutive common shares
Share-based awards		—		52				—		160
Class B Common Stock		8,956		2,068				10,268		2,131
Net effect of unvested participating shares		132		—				217		66
Net income per common share - diluted	$	53,349		12,341	$	4.31	$	59,195		12,465	$	4.75

	Twenty-six weeks ended
	June 25, 2022						June 26, 2021
	Earnings to Common Shareholders		Common Shares		EPS		Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported - basic	$	42,631		10,210	$	4.18	$	102,354		10,072	$	10.16
Add: effect of dilutive common shares
Share-based awards		—		63				—		161
Class B Common Stock		8,634		2,068				21,893		2,155
Net effect of unvested participating shares		129		—				513		73
Net income per common share - diluted	$	51,394		12,341	$	4.15	$	124,760		12,461	$	10.01

During the thirteen and twenty-six weeks ended June 25, 2022, in accordance with the two-class method, weighted-average stock options to purchase approximately 13,000 and 24,000 shares of Class A Common Stock were outstanding but not included in computing dilutive income per common share because their effects were anti-dilutive. Additionally, performance-based stock options to purchase 17,114 shares of Class A Common Stock and 1,348 performance-based stock awards were outstanding as of June 25, 2022 but not included in computing diluted income per common share because the performance criteria were not met as of the end of the reporting period.

During the thirteen and twenty-six weeks ended June 26, 2021, in accordance with the treasury stock method, weighted-average stock options to purchase approximately 20,000 and 13,000 shares of Class A Common stock were outstanding but not included in computing dilutive income per common share because their effects were anti-dilutive. Additionally, 1,348 unvested performance-based stock awards of Class A Common Stock were not included in computing diluted income per common share because the performance criteria were not met as of the end of the reporting period.