1 EXHIBIT 11 DREYER'S GRAND ICE CREAM, INC. COMPUTATION OF NET INCOME PER COMMON SHARE (unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended ------------------------------ ------------------------------- (In thousands, except per share amount) Sept. 28, 1996 Sept. 30, 1995 Sept. 28, 1996 Sept. 30, 1995 -------------- -------------- -------------- -------------- PRIMARY Net income applicable to common stock $ 2,055 $ 893 $ 6,260 $ 4,879 Weighted average number of shares of common stock outstanding 13,340 12,873 13,216 13,410 ------- ------- ------- ------- Net income per share, as reported $ .15 $ .07 $ .47 $ .36 ======= ======= ======= ======= Weighted average number of shares of common stock outstanding 13,340 12,873 13,216 13,410 Common stock equivalent--assumed exercise of common stock options and warrants 148 788 251 280 ------- ------- ------- ------- Weighted average number of shares of common stock outstanding, including common stock 13,488 13,661 13,467 13,690 equivalents ======= ======= ======= ======= Net income per common share $ .15(1) $ .07 $ .46(1) $ .36 ======= ======= ======= ======= FULLY DILUTED Net income applicable to common stock $ 2,055 $ 893 $ 6,260 $ 4,879 Add preferred dividends on redeemable convertible Series B preferred stock, due June 2001, and accretion of preferred stock to redemption value 1,250 661 3,749 661 Add interest expense on convertible subordinated debentures issued June 1993, and amortization of related issuance costs, net of tax 533 2,571 ------- ------- ------- ------- Adjusted net income $ 3,305 $ 2,087 $10,009 $ 8,111 ======= ======= ======= ======= Weighted average number of shares of common stock outstanding 13,340 12,873 13,216 13,410 Common stock equivalent--assumed exercise of common stock options 148 829 251 829 Assumed conversion of preferred stock 2,900 2,900 2,900 2,900 ------- ------- ------- ------- Adjusted shares 16,388 16,602 16,367 17,139 ======= ======= ======= ======= Net income per common share $ .20(2) $ .13(2) $ .61(2) $ .47(2) ======= ======= ======= ======= (1) This calculation is submitted in accordance with Regulation S-K item 601 (b) (11) although it is not required by footnote 2 to paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%. (2) This calculation is submitted in accordance with Regulation S-K item 601 (b) (11) although it is contrary to APB Opinion No. 15 because it produces an anti-dilutive effect.