Our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Basic and diluted earnings per share were computed using the two-class method. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends.

The allocation of undistributed earnings (loss) between common stock and Class B common stock is based on the relationship of the weighted shares outstanding for the respective stock class (common or Class B) to the total of the weighted shares outstanding for common stock and 90% of the weighted shares outstanding for Class B common stock. The adjustment to the number of outstanding Class B common stock shares reflects the limitation of Class B common stock dividends to 90% of common stock dividends.

The earnings per share (“EPS”) presented in our Unaudited Consolidated Statements of Comprehensive Income for the first quarter of fiscal 2027 and fiscal 2026 was based on the following amounts (in thousands, except per share amounts):


	Three Months Ended
	August 29, 2026				August 30, 2025
	Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted EPS:
Net income	$	4,059	$	4,059	$	1,909	$	1,909
Less dividends:
Common stock		770		770		746		746
Class B common stock		110		110		111		111
Undistributed earnings	$	3,179	$	3,179	$	1,052	$	1,052

Common stock undistributed earnings	$	2,777	$	2,787	$	916	$	917
Class B common stock undistributed earnings		402		392		136		135
Total undistributed earnings	$	3,179	$	3,179	$	1,052	$	1,052

Denominator for Basic and Diluted EPS:
Common stock weighted average shares		12,666		12,666		12,393		12,393
Effect of dilutive securities
Dilutive stock options				358				151
Denominator for diluted EPS adjusted for weighted average shares and assumed conversion				13,024				12,544
Class B common stock weighted average shares and shares under if-converted method for diluted EPS		2,036		2,036		2,049		2,049

Net income per share:
Common stock	$	0.28	$	0.27	$	0.13	$	0.13
Class B common stock	$	0.25	$	0.25	$	0.12	$	0.12

Note: There were no common stock options that were anti-dilutive and not included in the diluted earnings per share for the first quarter of fiscal 2027 and the first quarter of fiscal 2026.