1 EXHIBIT 11 INGLES MARKETS, INCORPORATED AND SUBSIDIARIES COMPUTATION OF EARNINGS PER COMMON SHARE * THREE MONTHS ENDED -------------------------- DECEMBER 27, DECEMBER 28, 1997 1996 ------------ ------------ BASIC: Income before extraordinary item $ 2,840,005 $ 5,256,653 Extraordinary item-early extinguishment of debt (net of income tax benefit) - (211,159) ------------ ------------ Net income $ 2,840,005 $ 5,045,494 ============ ============ Shares Weighted average number common shares outstanding 21,854,003 18,885,719 ============ ============ Basic earnings per common share before extraordinary item $ .13 $ .28 Extraordinary item-early extinguishment of debt - (.01) ------------ ------------ Basic earnings per common share $ .13 $ .27 ============ ============ DILUTED: Income before extraordinary item $ 2,840,005 $ 5,256,653 Add after tax and bonus effect of interest expense applicable to Convertible Subordinated Debentures - 354,815 ------------ ------------ Diluted earnings before extraordinary item 2,840,005 5,611,468 Extraordinary item-early extinguishment of debt (net of income tax benefit) - (211,159) ------------ ------------ Diluted earnings $ 2,840,005 $ 5,400,309 ============ ============ Shares Weighted average number of common shares and common stock equivalent shares outstanding 22,156,556 19,378,023 Additional shares assuming conversion of Convertible Subordinated Debentures - 2,763,272 ------------ ------------ Weighted average number of common shares outstanding as adjusted 22,156,556 22,141,295 ============ ============ Diluted earnings per common share before extraordinary item $ .13 $ .25 Extraordinary item-early extinguishment of debt - (.01) ------------ ------------ Diluted earnings per common share $ .13 $ .24 ============ ============ * See note B of the notes to unaudited interim financial statements. 19