CRACKER BARREL OLD COUNTRY STORE, INC Earnings Per Share Disclosure
13. | Net Income Per Share and Weighted Average Shares |
The following table reconciles the components of diluted earnings per share computations:
2025 |
| 2024 |
| 2023 | |||||
Net income per share numerator | $ | 46,379 | $ | 40,930 | $ | 99,050 | |||
Net income per share denominator: |
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Basic weighted average shares |
| 22,252,034 |
| 22,191,961 |
| 22,167,875 | |||
Add potential dilution: |
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Nonvested stock awards and units and stock options |
| 211,909 |
| 127,933 |
| 97,524 | |||
Diluted weighted average shares |
| 22,463,943 |
| 22,319,894 |
| 22,265,399 | |||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.