INGLES MARKETS INC Earnings Per Share Disclosure
The Company calculates earnings per share using the two-class method in accordance with FASB ASC Topic 260.
The two-class method of computing basic earnings per share 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. Diluted earnings per share is calculated assuming the conversion of all shares of Class B Common Stock to shares of Class A Common Stock on a share-for-share basis. The tables below reconcile the numerators and denominators of basic and diluted earnings per share for current and prior periods.
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| Year Ended | ||||
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| September 27, 2025 | ||||
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| Class A |
| Class B | ||
Numerator: Allocated net income |
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Net income allocated, basic |
| $ | 65,410,575 |
| $ | 18,181,926 |
Conversion of Class B to Class A shares |
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| 18,181,926 |
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| — |
Net income allocated, diluted |
| $ | 83,592,501 |
| $ | 18,181,926 |
Denominator: Weighted average shares outstanding |
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Weighted average shares outstanding, basic |
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| 14,546,620 |
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| 4,447,756 |
Conversion of Class B to Class A shares |
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| 4,447,756 |
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| — |
Weighted average shares outstanding, diluted |
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| 18,994,376 |
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| 4,447,756 |
Earnings per share |
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Basic |
| $ | 4.50 |
| $ | 4.09 |
Diluted |
| $ | 4.40 |
| $ | 4.09 |
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| Year Ended |
| Year Ended | ||||||||
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| September 28, 2024 |
| September 30, 2023 | ||||||||
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| Class A |
| Class B |
| Class A |
| Class B | ||||
Numerator: Allocated net income |
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Net income allocated, basic |
| $ | 82,518,040 |
| $ | 23,023,261 |
| $ | 163,599,005 |
| $ | 47,212,954 |
Conversion of Class B to Class A shares |
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| 23,023,261 |
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| — |
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| 47,212,954 |
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| — |
Net income allocated, diluted |
| $ | 105,541,301 |
| $ | 23,023,261 |
| $ | 210,811,959 |
| $ | 47,212,954 |
Denominator: Weighted average |
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Weighted average shares outstanding, basic |
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| 14,534,479 |
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| 4,459,897 |
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| 14,417,916 |
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| 4,576,460 |
Conversion of Class B to Class A shares |
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| 4,459,897 |
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| — |
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| 4,576,460 |
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| — |
Weighted average shares outstanding, diluted |
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| 18,994,376 |
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| 4,459,897 |
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| 18,994,376 |
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| 4,576,460 |
Earnings per share |
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Basic |
| $ | 5.68 |
| $ | 5.16 |
| $ | 11.35 |
| $ | 10.32 |
Diluted |
| $ | 5.56 |
| $ | 5.16 |
| $ | 11.10 |
| $ | 10.32 |
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.