<PAGE>   1
                                                                      EXHIBIT 11

                        SHOLODGE, INC AND SUBSIDIARIES
                   COMPUTATION OF EARNINGS PER COMMON SHARE
                      PRIMARY AND ASSUMING FULL DILUTION


<TABLE>
<CAPTION>
                                                                                  16 WEEKS ENDED       
                                                                           ----------------------------
                                                                             APRIL 20,        APRIL 21,   
                                                                                1997             1996     
                                                                           ----------------------------
<S>                                                                        <C>              <C>              
PRIMARY:                                                                                                  
                                                                                                          
  EARNINGS APPLICABLE TO COMMON STOCK (PRIMARY):                                                          
     FROM CONTINUING OPERATIONS                                            $ 2,635,116      $ 1,994,441   
                                                                           ----------------------------
     NET EARNINGS                                                          $ 2,635,116      $ 1,994,441   
                                                                           ============================
                                                                                                          
  SHARES:                                                                                                 
     WEIGHTED AVERAGE COMMON AND COMMON                                                                   
      EQUIVALENT SHARES OUTSTANDING                                          8,354,236        8,396,361   
                                                                           ============================   

  PRIMARY EARNINGS PER SHARE:                                                                             
     FROM CONTINUING OPERATIONS                                            $      0.32      $      0.24   
                                                                           ----------------------------
     NET EARNINGS                                                          $      0.32      $      0.24   
                                                                           ============================   
FULLY DILUTED:                                                                                            
                                                                                                          
  EARNINGS APPLICABLE TO COMMON STOCK (PRIMARY):                                                          
     FROM CONTINUING OPERATIONS                                            $ 2,635,116      $ 1,994,441   
     NET EARNINGS                                                          $ 2,635,116      $ 1,994,441   
                                                                                                          
  INTEREST (LESS TAX) ON CONVERTIBLE                                                                      
    SUBORDINATED DEBENTURES                                                $   781,962      $   781,962   
                                                                                                          
  ADJUSTED EARNINGS APPLICABLE TO COMMON STOCK:                                                           
     FROM CONTINUING OPERATIONS                                            $ 3,417,078      $ 2,776,403   
                                                                           ----------------------------
     NET EARNINGS                                                          $ 3,417,078      $ 2,776,403   
                                                                           ============================   
                                                                                                          
  SHARES:                                                                                                 
     WEIGHTED AVERAGE COMMON AND COMMON                                                                   
      EQUIVALENT SHARES OUTSTANDING                                          8,354,236        8,396,361   
                                                                                                          
     SHARES ISSUABLE UPON CONVERSION OFCONVERTIBLE                                                        
       SUBORDINATED DEBENTURES                                               2,316,602        2,316,602   
                                                                           ----------------------------                       
                                                                            10,670,838       10,712,963   
                                                                           ============================                       

   FULLY DILUTED EARNINGS PER SHARE:                                                                      
     FROM CONTINUING OPERATIONS                                            $      0.32      $      0.26   
                                                                           ============================   
     NET EARNINGS                                                          $      0.32      $      0.26   
                                                                           ============================   
</TABLE>