BOSTON BEER CO INC Earnings Per Share Disclosure
Q. Net Income per Share
Net Income per Common Share - Basic
The following table sets forth the computation of basic net income per share using the two-class method:
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December 27, |
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December 28, |
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December 30, |
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2025 |
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2024 |
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2023 |
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(in thousands, except per share data) |
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Net Income |
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$ |
108,469 |
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|
$ |
59,695 |
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|
$ |
76,250 |
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Allocation of net income for basic: |
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Class A Common Stock |
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$ |
87,703 |
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$ |
49,070 |
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$ |
63,216 |
|
Class B Common Stock |
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|
20,466 |
|
|
|
10,485 |
|
|
|
12,880 |
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Unvested participating shares |
|
|
300 |
|
|
|
140 |
|
|
|
154 |
|
|
|
$ |
108,469 |
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|
$ |
59,695 |
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|
$ |
76,250 |
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Weighted average number of shares for basic: |
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Class A Common Stock |
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8,862 |
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9,678 |
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|
10,150 |
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Class B Common Stock |
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2,068 |
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|
|
2,068 |
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|
|
2,068 |
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Unvested participating shares |
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30 |
|
|
|
28 |
|
|
|
25 |
|
|
|
|
10,960 |
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|
|
11,774 |
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|
|
12,243 |
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Net income per share for basic: |
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Class A Common Stock |
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$ |
9.90 |
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$ |
5.07 |
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$ |
6.23 |
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Class B Common Stock |
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$ |
9.90 |
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|
$ |
5.07 |
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|
$ |
6.23 |
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Net Income per Common Share - Diluted
The Company calculates diluted net income per share for common stock using the more dilutive of (1) the treasury stock method, or (2) the two-class method, which assumes the participating securities are not exercised or converted.
The following tables set forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock:
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Fiscal year ended December 27, 2025 |
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Earnings to |
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Common |
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EPS |
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(in thousands, except per share data) |
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As reported - basic |
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$ |
87,703 |
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|
8,862 |
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$ |
9.90 |
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Add: effect of dilutive potential common shares |
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Share-based awards |
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7 |
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|
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Class B Common Stock |
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20,466 |
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|
2,068 |
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|
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Net effect of unvested participating shares |
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— |
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Net income per common share - diluted |
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$ |
108,169 |
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|
|
10,937 |
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$ |
9.89 |
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Fiscal year ended December 28, 2024 |
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Earnings to |
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Common |
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EPS |
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(in thousands, except per share data) |
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As reported - basic |
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$ |
49,070 |
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|
9,678 |
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$ |
5.07 |
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Add: effect of dilutive potential common shares |
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Share-based awards |
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— |
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20 |
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|
|
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Class B Common Stock |
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10,485 |
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|
2,068 |
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|
|
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Net effect of unvested participating shares |
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— |
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|
— |
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Net income per common share - diluted |
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$ |
59,555 |
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|
|
11,766 |
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$ |
5.06 |
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Fiscal year ended December 30, 2023 |
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Earnings to |
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Common |
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EPS |
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(in thousands, except per share data) |
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As reported - basic |
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$ |
63,216 |
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|
10,150 |
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$ |
6.23 |
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Add: effect of dilutive potential common shares |
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Share-based awards |
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|
— |
|
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|
40 |
|
|
|
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Class B Common Stock |
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|
12,880 |
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|
|
2,068 |
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|
|
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Net effect of unvested participating shares |
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|
— |
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— |
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Net income per common share - diluted |
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$ |
76,096 |
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|
|
12,258 |
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$ |
6.21 |
|
Basic net income per common share for each share of Class A Common Stock and Class B Common Stock is $9.90, $5.07, and $6.23 for the fiscal years 2025, 2024, and 2023, respectively, as each share of Class A and Class B participates equally in earnings. Shares of Class B are convertible at any time into shares of Class A on a one-for-one basis at the option of the stockholder.
Weighted average stock options to purchase approximately 199,000, 142,000, and 52,000 shares of Class A Common Stock were outstanding during fiscal years 2025, 2024, and 2023, respectively, but not included in computing diluted income per share because their effects were anti-dilutive. Additionally, approximately 89,000, 52,000, and 54,000 performance awards were outstanding during fiscal years 2025, 2024, and 2023, respectively, but not included in computing dilutive income per share because the performance criteria of these stock awards were not met at the respective fiscal year ends.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
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.