Red Robin Gourmet Burgers, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Oct. 04, 2015

Basic earnings per share amounts are calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share amounts are calculated based upon the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Potentially dilutive shares are excluded from the computation in periods in which they have an anti-dilutive effect. Diluted earnings per share reflect the potential dilution that could occur if holders of options exercised their options into common stock. During the twelve and forty weeks ended October 4, 2015, weighted average stock options outstanding of 43 thousand shares and 56 thousand shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. During the twelve and forty weeks ended October 5, 2014, weighted average stock options outstanding of 79 thousand and 61 thousand shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. The Company uses the treasury stock method to calculate the effect of outstanding stock options. The computations for basic and diluted earnings per share are as follows (in thousands, except per share data):



	Twelve Weeks Ended				Forty Weeks Ended
	October 4, 2015		October 5, 2014		October 4, 2015		October 5, 2014
Net income	$	8,282	$	7,208	$	36,013	$	28,622

Basic weighted average shares outstanding	14,138		14,216		14,115		14,299
Dilutive effect of stock options and awards	170		181		182		218
Diluted weighted average shares outstanding	14,308		14,397		14,297		14,517

Earnings per share:
Basic	$	0.59	$	0.51	$	2.55	$	2.00
Diluted	$	0.58	$	0.50	$	2.52	$	1.97