Basic and diluted weighted average common share outstanding

(a) Same store sales decreased 7.5% and 8.0% during the thirteen and twenty-six weeks ended July 4, 2009, respectively, compared to the same periods of 2008. Sales continue to be negatively impacted by economic conditions and increased competition in our trade area. In an economy in which consumers are increasingly motivated by price, our competitors have aggressively increased marketing activities including price reductions. To remain competitive, the Company has initiated new marketing programs including special pricing of selected items in an effort to retain customers and attract new clientele.

(b) Operating income as a percent of sales decreased during the thirteen and twenty-six weeks ended July 4, 2009 compared to the same periods of the prior year. The decrease is partially due to stock appreciation rights (SARs) compensation expense which totaled $613 and $421 for the thirteen and twenty-six weeks ended July 4, 2009, respectively, as a result of an increase in the fair value and vesting of SARs since the end of the prior periods. In the prior year, the Company recognized a reversal of previously recognized SARs compensation expense of $287 and $189 for the thirteen and twenty-six weeks ended June 28, 2008, respectively. To some degree, operating income as a percent of sales decreases as certain of the Company’s costs are fixed and do not decrease proportionately with a decline in revenues.

(c) Net interest and dividend income is substantially lower for the thirteen and twenty-six weeks ended July 4, 2009 compared to the same periods in 2008 due to significantly lower interest rates and cash available for investment due to a special cash dividend totaling $79,027 paid on December 8, 2008.