NATHANS FAMOUS, INC. Earnings Per Share Disclosure
NOTE C – NET INCOME PER SHARE
Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding and excludes any dilutive effect of share-based awards. Diluted net income per common share gives effect to all potentially dilutive common shares that were outstanding during the period. Dilutive common shares used in the computation of diluted income per common share result from the assumed exercise of stock options as determined using the treasury stock method and restricted stock unit awards.
The following chart provides a reconciliation of information used in calculating the per-share amounts for the fiscal years ended March 30, 2025 and March 31, 2024, respectively:
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March 30, |
March 31, |
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2025 |
2024 |
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Net income |
$ | 24,026 | $ | 19,616 | ||||
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Common Stock: |
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Weighted average basic shares outstanding |
4,086,000 | 4,081,000 | ||||||
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Effect of dilutive share-based awards |
9,000 | 6,000 | ||||||
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Weighted average diluted shares outstanding |
4,095,000 | 4,087,000 | ||||||
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Net income per share: |
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Basic |
$ | 5.88 | $ | 4.81 | ||||
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Diluted |
$ | 5.87 | $ | 4.80 | ||||
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Anti-dilutive share-based awards |
- | 10,000 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 10, 2025 | Showing above |
| 2024 | Jun 12, 2024 | |
| 2023 | Jun 8, 2023 | |
| 2022 | Jun 10, 2022 | |
| 2021 | Jun 11, 2021 | |
| 2020 | Jun 12, 2020 | |
| 2018 | Jun 8, 2018 | |
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.