RAVE RESTAURANT GROUP, INC.RAVE

RAVE RESTAURANT GROUP, INC. Earnings Per Share Disclosure

10-KFiled Sep 25, 20252 min read
NOTE J - EARNINGS PER SHARE:
 
The Company computes and presents earnings per share (“EPS”) in accordance with ASC 260 Earnings Per Share. Basic EPS excludes the effect of potentially dilutive securities while diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised, converted or resulted in the issuance of common stock that then shared in the earnings of the Company.
 
The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts):
 
            
 
Fiscal Year Ended
   
June 29,
2025
    
June 30,
2024
    
June 25,
2023
 
Net income available to common shareholders
 $2,702   $2,473   $1,613 
Adjusted net income
 $2,702   $2,473   $1,613 
               
BASIC:
              
Weighted average common shares
  14,499    14,446    15,323 
               
Net income per common share
 $0.19   $0.17   $0.11 
               
DILUTED:
              
Weighted average common shares
  14,499    14,446    15,323 
Dilutive stock options and restricted stock units
  62    184    588 
Weighted average common shares outstanding
  14,561    14,630    15,911 
               
Net income per common share
 $0.19   $0.17   $0.10 
 
We had 91,592, 94,769, and 151,750 shares of common stock potentially issuable upon exercise of employee stock options for years ended June 29, 2025, June 30, 2024, and June 25, 2023, respectively, which were excluded from the weighted average number of shares outstanding on a diluted basis because they had an intrinsic value of zero. These options expire at varying times from fiscal 2025 through fiscal 2032. We had 142,328, 105,000, and 271,825 restricted stock units for years ended June 29, 2025, June 30, 2024, and June 25, 2023, respectively, which were excluded from the weighted average number of shares outstanding on a diluted basis because the performance criteria had not been met and vesting was not probable.

Historical Timeline

Fiscal YearFiled
2025Sep 25, 2025Showing above
2024Sep 26, 2024
2023Sep 21, 2023
2022Sep 23, 2022
2021Sep 21, 2021
2020Sep 28, 2020
2019Sep 30, 2019
2018Sep 24, 2018
2016Sep 23, 2016

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.

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