EARNINGS PER SHARE

9 Months Ended

Jun. 27, 2025

8. EARNINGS PER SHARE

The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating securities as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a non-forfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common stockholders.

Basic earnings per common share excludes dilution and is calculated by dividing the net earnings allocated to common stock by the weighted-average number of common stock outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common stock by the weighted-average number of shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.

The following table sets forth the computation of basic and diluted earnings per share:


	Three months ended				Nine months ended
(in thousands, except per share data)	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Numerator:
Net income	$	42,962	$	123,417	$	39,243	$	399,753
Less: Undistributed earnings allocated to participating securities	625		1,533		100		5,308
Net income available to common shareholders	$	42,337	$	121,884	$	39,143	$	394,445

Denominator:
Basic weighted average common shares outstanding	33,653		36,252		34,167		36,739
Effect of dilutive securities: Non-participating employee stock options (1)	200		364		224		435
Diluted weighted average common shares outstanding	33,853		36,616		34,391		37,174
Basic earnings per share	$	1.26	$	3.36	$	1.15	$	10.74
Diluted earnings per share	$	1.25	$	3.33	$	1.14	$	10.61


(1) Stock options to purchase shares of common stock that would have been anti-dilutive are not included in the calculation. There were no anti-dilutive options outstanding during the three and nine months ended June 27, 2025 and June 28, 2024.