5. EARNINGS PER SHARE (“EPS”)

Basic EPS is computed by dividing net income available to common stockholders by the weighted‑average number of common shares outstanding. Diluted EPS is computed by dividing net income by the weighted‑average number of common shares outstanding and dilutive potential common shares for the period. Potential common shares include the weighted‑average dilutive effects of outstanding stock options using the treasury stock method.

The following table sets forth the number of weighted‑average shares used to compute basic and diluted EPS:

For the fiscal year ended December 30, 2016, 322,200 options were excluded from the calculation of dilutive potential common shares, compared to 314,500 and 251,000 options, for fiscal years 2015 and 2014, respectively. These options were not included in the computation of dilutive potential common shares because the assumed proceeds per share exceeded the average market price per share for the respective periods. Accordingly, the inclusion of these options would have been anti‑dilutive.