Net Income per Share

12 Months Ended

Dec. 26, 2020

P.	Net Income per Share

Net Income per Common Share - Basic

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

	December 26,		December 28,		December 29,
	2020		2019		2018
	(in thousands, except per share data)
Net Income	$	191,960	$	110,041	$	92,663
Allocation of net income for basic:
Class A Common Stock	$	153,106	$	82,474	$	68,080
Class B Common Stock		37,690		26,600		23,710
Unvested participating shares		1,164		967		873
	$	191,960	$	110,041	$	92,663
Weighted average number of shares for basic:
Class A Common Stock		9,734		8,908		8,620
Class B Common Stock*		2,396		2,873		3,002
Unvested participating shares		74		105		111
		12,204		11,886		11,733
Net income per share for basic:
Class A Common Stock	$	15.73	$	9.26	$	7.90
Class B Common Stock	$	15.73	$	9.26	$	7.90

Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on November 1, 2018, 100,000 shares to Class A Common stock on August 8, 2019 and 145,000 shares to Class A Common stock on December 13, 2019, 150,000 shares to Class A Common Stock on March 11, 2020, 215,000 shares to Class A Common Stock on May 6, 2020 and 130,000 shares to Class A Common Stock on November 3, 2020 with the ending number of shares reflecting the weighted average for the period.

Net Income per Common Share - Diluted

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 or converted.

The following tables set forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock and using the two-class method for unvested participating shares:

	Fifty-two weeks ended December 26, 2020
	Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported - basic	$	153,106		9,734	$	15.73
Add: effect of dilutive potential common shares
Share-based awards		—		153
Class B Common Stock		37,690		2,396
Net effect of unvested participating shares		14
Net income per common share - diluted	$	190,810	$	12,283		15.53

	Fifty-two weeks ended December 28, 2019
	Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported - basic	$	82,474		8,908	$	9.26
Add: effect of dilutive potential common shares
Share-based awards		—		127
Class B Common Stock		26,600		2,873
Net effect of unvested participating shares		10		—
Net income per common share - diluted	$	109,084		11,908		9.16

	Fifty-two weeks ended December 29, 2018
	Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported - basic	$	68,080		8,620	$	7.90
Add: effect of dilutive potential common shares
Share-based awards		—		112
Class B Common Stock		23,710		3,002
Net effect of unvested participating shares		8		—
Net income per common share - diluted	$	91,798		11,734	$	7.82

Basic net income per common share for each share of Class A Common Stock and Class B Common Stock is $15.73, $9.26, and $7.90 for the fiscal years 2020, 2019, and 2018, respectively, as each share of Class A and Class B participates equally in earnings. Shares of Class B are convertible at any time into shares of Class A on a one-for-one basis at the option of the stockholder.

There were no stock options with anti-dilutive effects that were excluded in computing diluted income during fiscal 2020. Weighted average stock options to purchase 23,000, and 100,000 shares of Class A Common Stock were outstanding during fiscal 2019, and 2018, respectively, but not included in computing diluted income per share because their effects were anti-dilutive. Additionally, performance-based stock options to purchase 10,000, and 10,000 shares of Class A Common Stock were outstanding during fiscal 2019, and 2018, respectively, but not included in computing dilutive income per share because the performance criteria of these stock options were not met as of December 28, 2019, and December 29, 2018, respectively.