The Company calculates net income (loss) per share using the two-class method, which requires the Company to allocate net income (loss) to its Class A Common Shares, Class B Common Shares and unvested share-based payment awards that participate in dividends with common stock, in the calculation of net income (loss) per share.

The Class A Common Stock has no voting rights, except (1) as required by law, (2) for the election of Class A Directors, and (3) that the approval of the holders of the Class A Common Stock is required for (a) certain future authorizations or issuances of additional securities which have rights senior to Class A Common Stock, (b) certain alterations of rights or terms of the Class A or Class B Common Stock as set forth in the Articles of Organization of the Company, (c) other amendments of the Articles of Organization of the Company, (d) certain mergers or consolidations with, or acquisitions of, other entities, and (e) sales or dispositions of any significant portion of the Company’s assets.

The Class B Common Stock has full voting rights, including the right to (1) elect a majority of the members of the Company’s Board of Directors and (2) approve all (a) amendments to the Company’s Articles of Organization, (b) mergers or consolidations with, or acquisitions of, other entities, (c) sales or dispositions of any significant portion of the Company’s assets, and (d) equity-based and other executive compensation and other significant corporate matters. The Company’s Class B Common Stock is not listed for trading. Each share of the Class B Common Stock is freely convertible into one share of Class A Common Stock, upon request of the respective Class B holder, and participates equally in dividends.

The Company’s unvested share-based payment awards include unvested shares (1) issued under the Company’s investment share program, which permits employees who have been with the Company for at least one year to purchase shares of Class A Common Stock and to purchase those shares at a discount ranging from 20% to 40% below market value based on years of employment starting after two years of employment, and (2) awarded as restricted stock units at the discretion of the Company’s Board of Directors. The investment shares vest over five years in equal number of shares and the restricted stock units generally vest over four years in equal number of shares. If a dividend is declared, the unvested shares would participate equally. See Note M for a discussion of the current year unvested stock awards and issuances.

Included in the computation of net income (loss) per diluted common share are dilutive outstanding stock options and restricted stock that are vested or expected to vest, to the extent such awards are dilutive. At its discretion, the Board of Directors grants stock options and restricted stock units to senior management and certain key employees. The terms of the employee stock options are determined by the Board of Directors at the time of grant. To date, stock options granted to employees vest over various service periods and/or based on the attainment of certain performance criteria and generally expire after ten years. The restricted stock units generally vest over four years in equal number of shares. Each restricted stock unit represents an unfunded and unsecured right to receive one share of Class A Stock upon satisfaction of the vesting criteria. The unvested shares participate equally in dividends, if declared, and are forfeitable. The Company also grants stock options and restricted stock units to its non-employee directors upon election or re-election to the Board of Directors. The number of option shares granted to non-employee directors is calculated based on a defined formula and these stock options vest immediately upon grant and expire after ten years. The restricted stock units granted to non-employee directors vest one year post grant date.

The following table sets forth the computation of basic net income (loss) per share using the two-class method:


	Thirteen weeks ended				Thirty-nine weeks ended
	September 26, 2026		September 27, 2025		September 26, 2026			September 27, 2025
	(in thousands, except per share data)				(in thousands, except per share data)
Net income (loss)	$	43,166	$	46,155	$	(50,529	)	$	131,000
Allocation of net income (loss) for basic:
Class A Common Stock	$	34,329	$	37,231	$	(40,301	)	$	106,174
Class B Common Stock		8,706		8,793		(10,077	)		24,467
Unvested participating shares		131		131		(151	)		359
	$	43,166	$	46,155	$	(50,529	)	$	131,000
Weighted average number of shares for basic:
Class A Common Stock		8,155		8,756		8,270			8,974
Class B Common Stock		2,068		2,068		2,068			2,068
Unvested participating shares		31		31		31			31
		10,254		10,855		10,369			11,073
Net income (loss) per share for basic:
Class A Common Stock	$	4.21	$	4.25	$	(4.87	)	$	11.83
Class B Common Stock	$	4.21	$	4.25	$	(4.87	)	$	11.83

The Company calculates diluted net income (loss) per common share using the more dilutive of (i) the treasury stock method or (ii) the two-class method, which assumes participating securities remain outstanding and are not exercised or converted.

For the thirty-nine weeks ended September 26, 2026, the Company reported a net loss. Accordingly, all potential common shares were anti-dilutive, and diluted net loss per common share was equal to basic net loss per common share. As a result, the calculation of diluted net loss per common share reflects the same allocation of net loss and weighted-average common shares outstanding used in the calculation of basic net loss per common share.

For the thirteen weeks ended September 26, 2026 and the thirteen and thirty-nine weeks ended September 27, 2025, the Company reported net income. Diluted net income per common share reflects both the allocation of earnings to participating securities under the two-class method and the effect of dilutive share-based awards included in diluted weighted-average common shares outstanding.

The following table presents the calculation of diluted net income (loss) per common share for the periods presented:


	Thirteen weeks ended
	September 26, 2026								September 27, 2025
	Earnings to Common Shareholders			Common Shares		EPS			Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported - Class A Common Stock - basic	$	34,329			8,155	$	4.21		$	37,231		8,756	$	4.25
Class B Common Stock		8,706			2,068					8,793		2,068
Unvested participating shares (loss periods only)		—			—					—		—
Share-based awards - effect of dilutive common shares (income periods only)		—			1					—		6
Net earnings effect of unvested participating shares (income periods only)		—			—					—		—
Net income per common share -diluted	$	43,035			10,224	$	4.21		$	46,024		10,830	$	4.25

	Thirty-nine weeks ended
	September 26, 2026								September 27, 2025
	Loss to Common Shareholders			Common Shares		EPS			Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported - Class A Common Stock - basic	$	(40,301	)		8,270	$	(4.87	)	$	106,174		8,974	$	11.83
Class B Common Stock		(10,077	)		2,068					24,467		2,068
Unvested participating shares (loss periods only)		(151	)		31					—		—
Share-based awards - effect of dilutive common shares (income periods only)		—			—					—		8
Net earnings effect of unvested participating shares (income periods only)		—			—					—		—
Net (loss) income per common share -diluted	$	(50,529	)		10,369	$	(4.87	)	$	130,641		11,050	$	11.82

For the thirteen weeks ended September 26, 2026, in accordance with the two-class method, weighted-average stock options to purchase 153,744 were outstanding but not included in computing dilutive income per common share because their effects were anti-dilutive.

For the thirty-nine weeks ended September 26, 2026, in accordance with the two-class method, weighted‑average stock options to purchase 217,835 shares were outstanding but not included in computing dilutive income per common share because the net loss position of the Company made them anti‑dilutive. Additionally, performance-based stock options to purchase 6,930 shares of Class A Common Stock were outstanding as of September 26, 2026 but not included in computing diluted income per common share because the performance criteria were not met as of the end of the reporting period.

For the thirteen and thirty-nine weeks ended September 27, 2025, in accordance with the two-class method, weighted-average stock options to purchase 180,461 and 179,618 shares, respectively, were outstanding but not included in computing dilutive income per common share because their effects were anti-dilutive. Additionally, performance-based stock options to purchase 6,930 shares of Class A Common Stock were outstanding as of September 27, 2025 but not included in computing diluted income per common share because the performance criteria were not met as of the end of the reporting period.

H. Net Income (Loss) per Share