5. Net Income Per-share

Basic net income per-share is computed by dividing net income by the weighted average number of common shares outstanding.

Diluted net income per share is computed by dividing net income by the sum of the weighted average number of common shares and dilutive common share equivalents then outstanding using the treasury stock method. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options, the vesting of restricted shares, and contingently issuable shares related to performance-based awards.

We exclude outstanding stock options, stock awards and contingently issuable shares related to performance-based awards from the calculations if the effect would be anti-dilutive.

For the three months ended June 27, 2026, 34,267 employee stock options and no restricted shares were excluded from the calculation of diluted earnings per-share. For the three months ended June 28, 2025, 63,098 employee stock options and 7,324 restricted shares were excluded from the calculation of diluted earnings per-share. The inclusion of these employee stock options and restricted shares would have been anti-dilutive.

The table below reflects the calculation of weighted-average shares outstanding for each period presented as well as the computation of basic and diluted net income per-share.