Net Income per Share
The following table sets forth the computation of basic and diluted net income per common share:
| | | | | | | | | | | | | | | | | |
| | Fiscal Years Ended |
| | December 26, 2025 | | December 27, 2024 | | December 29, 2023 |
| Net income per share: | | | | | |
| Basic | $ | 1.87 | | | $ | 1.46 | | | $ | 0.92 | |
| Diluted | $ | 1.68 | | | $ | 1.32 | | | $ | 0.88 | |
| Weighted average common shares: | | | | | |
| Basic | 38,719,025 | | | 37,914,060 | | | 37,633,672 | |
| Diluted | 46,001,316 | | | 45,983,065 | | | 45,639,220 | |
Reconciliation of net income per common share:
| | | | | | | | | | | | | | | | | |
| | Fiscal Years Ended |
| | December 26, 2025 | | December 27, 2024 | | December 29, 2023 |
| Numerator: | | | | | |
| Net income | $ | 72,361 | | | $ | 55,479 | | | $ | 34,590 | |
| Add effect of dilutive securities: | | | | | |
| Interest on convertible notes, net of tax | 4,767 | | | 5,234 | | | 5,399 | |
| Net income available to common shareholders | $ | 77,128 | | | $ | 60,713 | | | $ | 39,989 | |
| Denominator: | | | | | |
| Weighted average basic common shares outstanding | 38,719,025 | | | 37,914,060 | | | 37,633,672 | |
| Dilutive effect of unvested common shares | 714,911 | | | 687,524 | | | 574,707 | |
| Dilutive effect of stock options and warrants | 72,410 | | | 57,540 | | | 38,024 | |
| Dilutive effect of convertible notes | 6,494,970 | | | 7,323,941 | | | 7,392,817 | |
| Weighted average diluted common shares outstanding | 46,001,316 | | | 45,983,065 | | | 45,639,220 | |
Potentially dilutive securities that have been excluded from the calculation of diluted net income per common share because the effect is anti-dilutive are as follows:
| | | | | | | | | | | | | | | | | |
| | Fiscal Years Ended |
| | December 26, 2025 | | December 27, 2024 | | December 29, 2023 |
| Restricted share awards and restricted share units | 240,887 | | | 270,751 | | | 532,608 | |
| Stock options and warrants | — | | | — | | | 300,000 | |
| | | | | |
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.