Earnings Per Share

3 Months Ended

Aug. 30, 2025

8. EARNINGS PER SHARE

Our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Basic and diluted earnings per share were computed using the two-class method. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends.

The allocation of undistributed earnings (loss) between common stock and Class B common stock is based on the relationship of the weighted shares outstanding for the respective stock class (common or Class B) to the total of the weighted shares outstanding for common stock and 90% of the weighted shares outstanding for Class B common stock. The adjustment to the number of outstanding Class B common stock shares reflects the limitation of Class B common stock dividends to 90% of common stock dividends.

The earnings per share (“EPS”) presented in our Unaudited Consolidated Statements of Comprehensive Income for the first quarter of fiscal 2026 and 2025 was based on the following amounts (in thousands, except per share amounts):


	Three Months Ended
	August 30, 2025				August 31, 2024
	Basic		Diluted		Basic			Diluted
Numerator for Basic and Diluted EPS:
Net income	$	1,909	$	1,909	$	590		$	590
Less dividends:
Common stock		746		746		739			739
Class B common stock		111		111		111			111
Undistributed earnings (loss)	$	1,052	$	1,052	$	(260	)	$	(260	)

Common stock undistributed earnings (loss)	$	916	$	917	$	(226	)	$	(226	)
Class B common stock undistributed earnings (loss)		136		135		(34	)		(34	)
Total undistributed earnings (loss)	$	1,052	$	1,052	$	(260	)	$	(260	)

Denominator for Basic and Diluted EPS:
Common stock weighted average shares		12,393		12,393		12,200			12,200
Effect of dilutive securities
Dilutive stock options				151					231
Denominator for diluted EPS adjusted for weighted average shares and assumed conversion				12,544					12,431
Class B common stock weighted average shares and shares under if-converted method for diluted EPS		2,049		2,049		2,049			2,049

Net income per share:
Common stock	$	0.13	$	0.13	$	0.04		$	0.04

Class B common stock	$	0.12	$	0.12	$	0.04		$	0.04

Note: There were no common stock options that were antidilutive and not included in the diluted earnings per share for the first quarter of fiscal 2026 and fiscal 2025.