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

6 Months Ended

Jul. 10, 2016

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 twenty-eight weeks ended July 10, 2016, weighted average stock options outstanding of 248 thousand shares and 214 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 twenty-eight weeks ended July 12, 2015, weighted average stock options outstanding of 72 thousand and 48 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				Twenty-eight Weeks Ended
	July 10, 2016		July 12, 2015		July 10, 2016		July 12, 2015
Net income	$	7,552	$	11,166	$	21,777	$	27,731

Basic weighted average shares outstanding	13,511		14,142		13,582		14,134
Dilutive effect of stock options and awards	133		169		142		188
Diluted weighted average shares outstanding	13,644		14,311		13,724		14,322

Earnings per share:
Basic	$	0.56	$	0.79	$	1.60	$	1.96
Diluted	$	0.55	$	0.78	$	1.59	$	1.94