|   | x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|--------------------------------------------------------------------------------------|

|   | ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|------------------------------------------------------------------------------------------|

| PENNSYLVANIA                                                   |   | 24-0755415                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
| 1000 S. Second Street                                          |   |                                 |
| P. O. Box 471                                                  |   |                                 |
| Sunbury, Pennsylvania                                          |   | 17801-0471                           |
| (Address of principal executive offices)                       |   | (Zip Code)                           |

| Title of each class        |   | Name of each exchange on which registered |
|----------------------------|--------|-------------------------------------------|
| Common stock, no par value |   | New York Stock Exchange                   |

| Large accelerated filer  ¨                                             | Accelerated filer  x              |
|---------------------------------------------------------------------------------------|---------------------------------------------|
| Non-accelerated filer  ¨ (Do not check if a smaller reporting company) | Smaller reporting company  ¨ |

----

| FORM 10-K                                                                                                            | Page   |
|----------------------------------------------------------------------------------------------------------------------|--------|
| Part I                                                                                                               |   |
| Item 1. Business                                                                                                     | 1      |
| Item 1a. Risk Factors                                                                                                | 3      |
| Item 1b. Unresolved Staff Comments                                                                                   | 5      |
| Item 2. Properties                                                                                                   | 5      |
| Item 3. Legal Proceedings                                                                                            | 5      |
| Executive Officers of the Registrant                                                                                 | 6      |
| Part II                                                                                                              |   |
| Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 7      |
| Item 6. Selected Financial Data                                                                                      | 8      |
| Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations                        | 9      |
| Item 7a. Quantitative and Qualitative Disclosures about Market Risk                                                  | 17     |
| Item 8. Financial Statements and Supplementary Data                                                                  | 18     |
| Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                         | 35     |
| Item 9a. Controls and Procedures                                                                                     | 35     |
| Item 9b. Other Information                                                                                           | 36     |
| Part III                                                                                                             |   |
| Item 10. Directors, Executive Officers and Corporate Governance                                                      | 36     |
| Item 11. Executive Compensation                                                                                      | 36     |
| Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters              | 36     |
| Item 13. Certain Relationships and Related Transactions, and Director Independence                                   | 36     |
| Item 14. Principal Accountant Fees and Services                                                                      | 36     |
| Part IV                                                                                                              |   |
| Item 15. Exhibits, Financial Statement Schedules                                                                     | 37     |
| Item 15(c)(3). Schedule II - Valuation and Qualifying Accounts                                                       | 39     |
| Signatures                                                                                                           | 40     |
| Exhibit 21 Subsidiaries of the Registrant                                                                            |   |
| Exhibit 23 Consent of Grant Thornton LLP                                                                             |   |
| Exhibit 31.1 Rule 13a-14(a) Certification - CEO                                                                      |   |
| Exhibit 31.2 Rule 13a-14(a) Certification - CFO                                                                      |   |
| Exhibit 32 Certification Pursuant to 18 U.S.C. Section 1350                                                          |   |

----

| Year   |   | Grocery |   |   | Meat   |   |   | Produce |   |   | Pharmacy |   |   | Fuel   |   |   | Pet Supply |   |   | Other  |   |
|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|--------|----------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
|   |   |    |   |   |   |   |   |    |   |   |     |   |   |   |   |   |       |   |   |   |   |
| 2010   |   |    | 53.90  |   |   |   | 16.06  |    |   |   | 15.28    |   |   |   | 8.89   |   |       |   | 2.28   |   |   |   | 1.11 |   |   |   | 2.48 |   |
| 2009   |   |    | 54.37  |   |   |   | 16.21  |    |   |   | 14.92    |   |   |   | 8.98   |   |       |   | 1.66   |   |   |   | 1.73 |   |   |   | 2.13 |   |
| 2008   |   |    | 54.10  |   |   |   | 16.08  |    |   |   | 14.68    |   |   |   | 9.13   |   |       |   | 2.01   |   |   |   | 2.05 |   |   |   | 1.95 |   |
| 2007   |   |    | 53.76  |   |   |   | 16.09  |    |   |   | 14.82    |   |   |   | 9.77   |   |       |   | 1.35   |   |   |   | 2.34 |   |   |   | 1.87 |   |
| 2006   |   |    | 53.52  |   |   |   | 15.99  |    |   |   | 14.99    |   |   |   | 10.22  |   |       |   | 0.98   |   |   |   | 2.55 |   |   |   | 1.75 |   |

----

| Square feet      |   | Number of stores |   |
|------------------|--------|----------------------------|--------|
| 55,000 to 70,000 |   |                       | 43     |   |
| 45,000 to 54,999 |   |                       | 72     |   |
| 35,000 to 44,999 |   |                       | 27     |   |
| 25,000 to 34,999 |   |                       | 14     |   |
| Under 25,000     |   |                       | 8      |   |
| Total            |   |                       | 164    |   |

|                                         |   | 2010   |    |   | 2009   |   |    | 2008   |   |   | 2007    |   |   | 2006   |    |
|----------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Beginning store count                        |   |   | 164     |   |   |   | 154     |   |   |   | 154     |   |   |   | 156     |   |   |   | 158 |   |
| New stores                                   |   |   | — |   |   |   | 11      |   |   |   | 1       |   |   |   | — |   |   |   | 2 |   |
| Relocations                                  |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1       |   |   |   | 1 |   |
| Closed stores                                |   |   | — |   |   |   | (1      | )      |   |   | (1      | )      |   |   | (2      | ) |   |   | (4 | ) |
| Relocated stores                             |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1      | ) |   |   | (1 | ) |
| Ending store count                           |   |   | 164     |   |   |   | 164     |   |   |   | 154     |   |   |   | 154     |   |   |   | 156 |   |
| Total square feet (000’s), at year-end |   |   | 7,887   |   |   |   | 7,888   |   |   |   | 7,402   |   |   |   | 7,301   |   |   |   | 7,311 |   |
| Additions/major remodels                     |   |   | 4       |   |   |   | 5       |   |   |   | 8       |   |   |   | 4       |   |   |   | 5 |   |

----

----

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| Name                      | Age    | Title                                                        |
|---------------------------|--------|--------------------------------------------------------------|
|                      |   |                                                         |
| Robert F. Weis (a)        | 91     | Chairman of the Board                                        |
| Jonathan H. Weis (b)      | 43     | Vice Chairman and Secretary                                  |
| David J. Hepfinger (c)    | 52     | President and Chief Executive Officer                        |
| Scott F. Frost (d)        | 48     | Senior Vice President, Chief Financial Officer and Treasurer |
| Harold G. Graber Jr. (e)  | 55     | Senior Vice President of Real Estate and Development         |
| James E. Marcil (f)       | 52     | Senior Vice President of Human Resources                     |
| John J. Ropietski Jr. (g) | 49     | Senior Vice President of Operations                          |
| Kurt A. Schertle (h)      | 39     | Senior Vice President of Sales and Merchandising             |

|   | (a) | Robert F. Weis.  The Company has employed Mr. Weis since 1946.  Mr. Weis served as Chairman and Treasurer from 1995 until April 2002, at which time he was appointed Chairman of the Board. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Jonathan H. Weis.  The Company has employed Mr. Weis since 1989.  Mr. Weis served the Company as Vice President of Property Management and Development from 1996 until April 2002, at which time he was appointed as Vice President and Secretary.  In January of 2004, the Board appointed Mr. Weis as Vice Chairman and Secretary. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | David J. Hepfinger.  Mr. Hepfinger joined the Company on March 1, 2008 as its President and Chief Operating Officer.  Mr. Hepfinger has served the Company as President and Chief Executive Officer since January 1, 2009.  Prior to joining the Company, Mr. Hepfinger worked for Price Chopper Supermarkets, a chain of supermarkets headquartered in Rotterdam, NY, for 32 years in various capacities including his last position as Senior Vice President Retail and Administration. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Scott F. Frost.  The Company appointed Mr. Frost as Vice President, Chief Financial Officer and Treasurer on October 26, 2009 and he was promoted to Senior Vice President, Chief Financial Officer and Treasurer in January 2011.  Mr. Frost served as Acting Chief Financial Officer, Controller, Assistant Treasurer and Assistant Secretary of the Company during the past five years. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Harold G. Graber Jr.  Mr. Graber joined the Company in October 1989 as the Director of Real Estate.  Mr. Graber served the Company as Vice President for Real Estate since 1996 and in February 2010, was promoted to Senior Vice President of Real Estate and Development. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | James E. Marcil.  Mr. Marcil joined the Company in September 2002 as Vice President of Human Resources.  In February 2010, Mr. Marcil was promoted to Senior Vice President of Human Resources. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | John J. Ropietski Jr.  The Company hired Mr. Ropietski on June 30, 2008 as its Vice President of Store Operations.  In February 2010, Mr. Ropietski was promoted to Senior Vice President of Operations.  Prior to joining the Company, Mr. Ropietski worked for Price Chopper Supermarkets, a chain of supermarkets headquartered in Rotterdam, NY, for 25 years in various capacities including his last position as Regional Vice President. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Kurt A. Schertle.  The Company hired Mr. Schertle on March 1, 2009 as its Vice President of Sales and Merchandising.  In February 2010, Mr. Schertle was promoted to Senior Vice President of Sales and Merchandising.  Prior to joining the Company, Mr. Schertle was President and Chief Operating Officer of Tree Top Kids, a specialty toy retailer, from 2007 until 2009.  Mr. Schertle has more than 20 years of food retailing experience, mostly with SUPERVALU, where he worked in various capacities including his last position as a Senior Vice President for Marketing and Merchandising from 2005 until 2007. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|    |   | 2010             |   |   | 2009     |   |
|---------|--------|------------------|--------|--------|----------|--------|
|    |   | Stock Price |   |   | Dividend |   |   | Stock Price |   |   | Dividend |   |
| Quarter |   | High             |   |   | Low      |   |   | Per Share |   |   | High |   |   | Low |   |   | Per Share |   |
| First   |   | $                | 36.92  |   |     | $      | 32.56 |   |   | $ | .29 |   |   | $ | 34.12 |   |   | $ | 22.67 |   |   | $ | .29 |   |
| Second  |   |             | 38.32  |   |     |   | 32.61 |   |   |   | .29 |   |   |   | 37.87 |   |   |   | 30.05 |   |   |   | .29 |   |
| Third   |   |             | 38.46  |   |     |   | 32.56 |   |   |   | .29 |   |   |   | 37.67 |   |   |   | 30.51 |   |   |   | .29 |   |
| Fourth  |   |             | 41.30  |   |     |   | 37.66 |   |   |   | .29 |   |   |   | 37.44 |   |   |   | 31.18 |   |   |   | .29 |   |

|         |   | 2005   |   |   | 2006   |   |   | 2007   |   |   | 2008   |   |   | 2009   |   |   | 2010   |   |
|--------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Weis Markets |   |   | 100.00 |   |   |   | 95.89  |   |   |   | 98.09  |   |   |   | 85.45  |   |   |   | 95.56 |   |   |   | 109.47 |   |
| S&P 500  |   |   | 100.00 |   |   |   | 113.62 |   |   |   | 117.63 |   |   |   | 72.36  |   |   |   | 89.33 |   |   |   | 100.75 |   |
| Peer Group   |   |   | 100.00 |   |   |   | 126.39 |   |   |   | 148.57 |   |   |   | 114.97 |   |   |   | 117.77 |   |   |   | 138.82 |   |

----

|                                                            |   | 52 Weeks           |       |   | 52 Weeks           |   |       | 52 Weeks           |   |   | 52 Weeks           |   |   | 52 Weeks           |       |
|-----------------------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|------------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------|------------|
| (dollars in thousands, except shares,                           |   | Ended                   |       |   | Ended                   |   |       | Ended                   |   |   | Ended                   |   |   | Ended                   |       |
|  per share amounts and store information)                  |   | Dec. 25, 2010 |       |   | Dec. 26, 2009 |   |       | Dec. 27, 2008 |   |   | Dec. 29, 2007 |   |   | Dec. 30, 2006 |       |
| Net sales                                                       |   | $                       | 2,620,378  |   |                    | $      | 2,516,175  |                    |   | $      | 2,422,361               |   |   | $                       | 2,318,551  |   |   | $ | 2,244,512 |   |
| Costs and expenses                                              |   |                    | 2,515,062  |   |                    |   | 2,419,824  |                    |   |   | 2,354,780               |   |   |                    | 2,243,587  |   |   |   | 2,162,569 |   |
| Income from operations                                          |   |                    | 105,316    |   |                    |   | 96,351     |                    |   |   | 67,581                  |   |   |                    | 74,964     |   |   |   | 81,943 |   |
| Investment income                                               |   |                    | 2,069      |   |                    |   | 1,556      |                    |   |   | 2,532                   |   |   |                    | 2,795      |   |   |   | 4,145 |   |
| Income before provision for income taxes                        |   |                    | 107,385    |   |                    |   | 97,907     |                    |   |   | 70,113                  |   |   |                    | 77,759     |   |   |   | 86,088 |   |
| Provision for income taxes                                      |   |                    | 39,094     |   |                    |   | 35,107     |                    |   |   | 23,118                  |   |   |                    | 26,769     |   |   |   | 30,078 |   |
| Net income                                                      |   |                    | 68,291     |   |                    |   | 62,800     |                    |   |   | 46,995                  |   |   |                    | 50,990     |   |   |   | 56,010 |   |
| Retained earnings, beginning of year                            |   |                    | 827,042    |   |                    |   | 795,473    |                    |   |   | 779,760                 |   |   |                    | 760,531    |   |   |   | 735,865 |   |
|                                                            |   |                    | 895,333    |   |                    |   | 858,273    |                    |   |   | 826,755                 |   |   |                    | 811,521    |   |   |   | 791,875 |   |
| Less cumulative effect of change in accounting for income taxes |   |                    | —    |   |                    |   | —    |                    |   |   | —                 |   |   |                    | 452        |   |   |   | — |   |
| Cash dividends                                                  |   |                    | 31,201     |   |                    |   | 31,231     |                    |   |   | 31,282                  |   |   |                    | 31,309     |   |   |   | 31,344 |   |
| Retained earnings, end of year                                  |   | $                       | 864,132    |   |                    | $      | 827,042    |                    |   | $      | 795,473                 |   |   | $                       | 779,760    |   |   | $ | 760,531 |   |
| Weighted-average shares outstanding, diluted                    |   |                    | 26,898,443 |   |                    |   | 26,920,551 |                    |   |   | 26,966,647              |   |   |                    | 26,993,997 |   |   |   | 27,027,198 |   |
| Cash dividends per share                                        |   | $                       | 1.16       |   |                    | $      | 1.16       |                    |   | $      | 1.16                    |   |   | $                       | 1.16       |   |   | $ | 1.16 |   |
| Basic and diluted earnings per share                            |   | $                       | 2.54       |   |                    | $      | 2.33       |                    |   | $      | 1.74                    |   |   | $                       | 1.89       |   |   | $ | 2.07 |   |
| Working capital                                                 |   | $                       | 233,389    |   |                    | $      | 173,159    |                    |   | $      | 158,932                 |   |   | $                       | 157,385    |   |   | $ | 147,451 |   |
| Total assets                                                    |   | $                       | 992,081    |   |                    | $      | 916,515    |                    |   | $      | 848,214                 |   |   | $                       | 840,069    |   |   | $ | 814,062 |   |
| Shareholders’ equity                                      |   | $                       | 728,127    |   |                    | $      | 690,764    |                    |   | $      | 661,100                 |   |   | $                       | 648,228    |   |   | $ | 629,163 |   |
| Number of grocery stores                                        |   |                    | 164        |   |                    |   | 164        |                    |   |   | 154                     |   |   |                    | 154        |   |   |   | 156 |   |
| Number of pet supply stores                                     |   |                    | 7          |   |                    |   | 25         |                    |   |   | 29                      |   |   |                    | 31         |   |   |   | 31 |   |

----

|   | · | Growth and Profitability – While the Company focuses on store sales growth, expense control, increased efficiencies, improvements in productivity and positive cash flow, it will continue to identify opportunities with new stores, additions to existing stores, remodels and acquisitions.  The Company believes successfully planned growth will increase market share and operating profits, resulting in enhanced shareholder value. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Merchandising and Operational Differentiation – The Company has identified product pricing, shopping experience and customer focus to maintain its differentiation versus its competitors.  Management is committed to offering its customers a strong combination of quality, service and value.  As part of this commitment, it will continue to offer competitive prices on branded and private label products to meet and exceed our customers’ expectations. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Talent Management – To keep pace with the Company’s growth and profitability focus, management is committed to developing future leaders utilizing its associates to increase bench strength, ensure succession preparedness, and improve overall associate performance. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Supply Chain – Management will continue to reshape and streamline its supply chain by improving inventory turns, cost per case, in-stock position and overall service levels, thereby building store sales capabilities. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Information Technology Initiatives – The Company will increase its investment in information technology to improve associate productivity and customer experience with user friendly, support driven systems.  These technology investments will also improve the Company’s inventory management and shelf replenishment. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Sustainability – The Company is committed to operating sustainably.  In 2010, the Company joined EPA’s GreenChill Partnership to facilitate its efforts to reduce ozone layer depleting refrigerant charges from its stores and curb greenhouse gases.  Its remodeled Hanover store received GreenChill’s Silver Certification for reducing refrigerant discharges by 50% compared to the average American supermarket.  The Company also began the construction of three new stores that will use 60% less refrigerant and is committed to reducing refrigerant discharges in all of its stores.  In 2010, the Company also recycled 46.9 million pounds of cardboard, 126,000 pounds of waxed cardboard, and 1.6 million pounds ofplastic. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Analysis of Consolidated Statements of Income                  |   |       |      |   |       |   |      |       |   |   |            |   |   |     |   |
|----------------------------------------------------------------|--------|------------|-----------|--------|------------|--------|-----------|------------|--------|--------|-----------------|--------|--------|----------|--------|
| (dollars in thousands except per share amounts)                |   |       |      |   |       |   |      |       |   |   |            |   |   |     |   |
| For the Fiscal Years Ended December 25, 2010                   |   | 2010       |      |   | 2009       |   |      | 2008       |   |   | Percent Changes |   |
| December 26, 2009 and December 27, 2008                        |   |       |      |   |       |   |      |       |   |   | 2010 vs.        |   |   | 2009 vs. |   |
|                                                           |   | (52 weeks) |      |   | (52 weeks) |   |      | (52 weeks) |   |   | 2009            |   |   | 2008     |   |
| Net sales                                                      |   | $          | 2,620,378 |   |       | $      | 2,516,175 |       |   | $      | 2,422,361       |   |   |     | 4.1    | % |   |   | 3.9 | % |
| Cost of sales, including warehousing and distribution expenses |   |       | 1,906,753 |   |       |   | 1,838,003 |       |   |   | 1,795,570       |   |   |     | 3.7    |   |   |   | 2.4 |   |
| Gross profit on sales                                          |   |       | 713,625   |   |       |   | 678,172   |       |   |   | 626,791         |   |   |     | 5.2    |   |   |   | 8.2 |   |
| Gross profit margin                                            |   |       | 27.2      | %      |       |   | 27.0      | %          |   |   | 25.9            | %      |   |     |   |   |   |   |   |   |
| Operating, general and administrative expenses                 |   |       | 608,309   |   |       |   | 581,821   |       |   |   | 559,210         |   |   |     | 4.6    |   |   |   | 4.0 |   |
| O, G & A, percent of net sales                             |   |       | 23.2      | %      |       |   | 23.1      | %          |   |   | 23.1            | %      |   |     |   |   |   |   |   |   |
| Income from operations                                         |   |       | 105,316   |   |       |   | 96,351    |       |   |   | 67,581          |   |   |     | 9.3    |   |   |   | 42.6 |   |
| Operating Margin                                               |   |       | 4.0       | %      |       |   | 3.8       | %          |   |   | 2.8             | %      |   |     |   |   |   |   |   |   |
| Investment income                                              |   |       | 2,069     |   |       |   | 1,556     |       |   |   | 2,532           |   |   |     | 33.0   |   |   |   | (38.5 | ) |
| Investment income, percent of net sales                        |   |       | 0.1       | %      |       |   | 0.1       | %          |   |   | 0.1             | %      |   |     |   |   |   |   |   |   |
| Income before provision for income taxes                       |   |       | 107,385   |   |       |   | 97,907    |       |   |   | 70,113          |   |   |     | 9.7    |   |   |   | 39.6 |   |
| Provision for income taxes                                     |   |       | 39,094    |   |       |   | 35,107    |       |   |   | 23,118          |   |   |     | 11.4   |   |   |   | 51.9 |   |
| Effective tax rate                                             |   |       | 36.4      | %      |       |   | 35.9      | %          |   |   | 33.0            | %      |   |     |   |   |   |   |   |   |
| Net income                                                     |   | $          | 68,291    |   |       | $      | 62,800    |       |   | $      | 46,995          |   |   |     | 8.7    | % |   |   | 33.6 | % |
| Net income, percent of net sales                               |   |       | 2.6       | %      |       |   | 2.5       | %          |   |   | 1.9             | %      |   |     |   |   |   |   |   |   |
| Basic and diluted earnings per share                           |   | $          | 2.54      |   |       | $      | 2.33      |       |   | $      | 1.74            |   |   |     | 9.0    | % |   |   | 33.9 | % |

----

----

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|                             |   | Payments due by period |    |
|----------------------------------|--------|---------------------------------------|---------|
|                             |   |                                  |    |   | Less than |   |   |   |   |   |   |   |   | More than |   |
| (dollars in thousands) |   | Total                                 |    |   | 1 year |   |   | 1-3 years |   |   | 3-5 years |   |   | 5 years |   |
| Operating leases                 |   | $                                     | 220,800 |   |   | $ | 28,362 |   |   | $ | 55,610 |   |   | $ | 49,011 |   |   | $ | 87,817 |   |
|                             |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                            |   | $                                     | 220,800 |   |   | $ | 28,362 |   |   | $ | 55,610 |   |   | $ | 49,011 |   |   | $ | 87,817 |   |

----

----

| (dollars in thousands) |   | Expected Maturity Dates |   |   | Fair Value |   |
|----------------------------------|--------|-----------------------------------|--------|--------|-----------------|--------|
| December 25, 2010      |   | 2011                              |   |   | 2012            |   |   | 2013 |   |   | 2014 |   |   | 2015 |   |   | Thereafter |   |   | Total |   |   | Dec. 25, 2010 |   |
| Rate sensitive assets:           |   |                              |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed interest rate securities   |   | $                                 | 2,040  |   |            | $      | — |   |   | $ | 4,045 |   |   | $ | 1,000 |   |   | $ | 3,000 |   |   | $ | 4,200 |   |   | $ | 14,285 |   |   | $ | 15,635 |   |
| Average interest rate            |   |                              | 4.11   | %      |            |   | — |   |   |   | 1.68 | % |   |   | 1.58 | % |   |   | 2.56 | % |   |   | 3.19 | % |   |   | 2.58 | % |   |   |   |   |

----

| (dollars in thousands)                                                              |   |   |     |   |   |   |
|-------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| December 25, 2010 and December 26, 2009                                        |   | 2010   |     |   | 2009   |   |
|                                                                                |   |   |     |   |   |   |
| Assets                                                                              |   |   |     |   |   |   |
| Current:                                                                            |   |   |     |   |   |   |
| Cash and cash equivalents                                                           |   | $      | 109,140  |   |   | $      | 67,065 |   |
| Marketable securities                                                               |   |   | 25,759   |   |   |   | 18,079 |   |
| Accounts receivable, net                                                            |   |   | 53,302   |   |   |   | 52,215 |   |
| Inventories                                                                         |   |   | 231,021  |   |   |   | 223,015 |   |
| Prepaid expenses                                                                    |   |   | 6,439    |   |   |   | 6,254 |   |
| Income taxes recoverable                                                            |   |   | 2,712    |   |   |   | — |   |
| Total current assets                                                                |   |   | 428,373  |   |   |   | 366,628 |   |
| Property and equipment, net                                                         |   |   | 525,062  |   |   |   | 510,882 |   |
| Goodwill                                                                            |   |   | 35,162   |   |   |   | 35,162 |   |
| Intangible and other assets, net                                                    |   |   | 3,484    |   |   |   | 3,843 |   |
| Total assets                                                                        |   | $      | 992,081  |   |   | $      | 916,515 |   |
|                                                                                |   |   |     |   |   |   |   |   |
| Liabilities                                                                         |   |   |     |   |   |   |   |   |
| Current:                                                                            |   |   |     |   |   |   |   |   |
| Accounts payable                                                                    |   | $      | 134,278  |   |   | $      | 130,685 |   |
| Accrued expenses                                                                    |   |   | 28,803   |   |   |   | 30,227 |   |
| Accrued self-insurance                                                              |   |   | 19,163   |   |   |   | 21,998 |   |
| Deferred revenue, net                                                               |   |   | 6,922    |   |   |   | 6,731 |   |
| Income taxes payable                                                                |   |   | —  |   |   |   | 484 |   |
| Deferred income taxes                                                               |   |   | 5,818    |   |   |   | 3,344 |   |
| Total current liabilities                                                           |   |   | 194,984  |   |   |   | 193,469 |   |
| Postretirement benefit obligations                                                  |   |   | 14,622   |   |   |   | 13,850 |   |
| Deferred income taxes                                                               |   |   | 54,348   |   |   |   | 18,432 |   |
| Total liabilities                                                                   |   |   | 263,954  |   |   |   | 225,751 |   |
| Shareholders’ Equity                                                          |   |   |     |   |   |   |   |   |
| Common stock, no par value, 100,800,000 shares authorized, 33,047,807 shares issued |   |   | 9,949    |   |   |   | 9,949 |   |
| Retained earnings                                                                   |   |   | 864,132  |   |   |   | 827,042 |   |
| Accumulated other comprehensive income, net                                         |   |   | 4,903    |   |   |   | 4,628 |   |
|                                                                                |   |   | 878,984  |   |   |   | 841,619 |   |
| Treasury stock at cost, 6,149,364 and 6,149,315 shares, respectively                |   |   | (150,857 | )      |   |   | (150,855 | ) |
| Total shareholders’ equity                                                    |   |   | 728,127  |   |   |   | 690,764 |   |
| Total liabilities and shareholders’ equity                                    |   | $      | 992,081  |   |   | $      | 916,515 |   |

----

| (dollars in thousands, except shares and per share amounts) |   |            |       |   |            |   |       |            |   |
|-----------------------------------------------------------------------------------------------------|--------|-----------------|------------|--------|-----------------|--------|------------|-----------------|--------|
| For the Fiscal Years Ended December 25, 2010,                    |   | 2010            |       |   | 2009            |   |       | 2008            |   |
| December 26, 2009 and December 27, 2008                               |   | (52 weeks) |       |   | (52 weeks) |   |       | (52 weeks) |   |
| Net sales                                                                                           |   | $               | 2,620,378  |   |            | $      | 2,516,175  |            |   | $ | 2,422,361 |   |
| Cost of sales, including warehousing and distribution expenses                                      |   |            | 1,906,753  |   |            |   | 1,838,003  |            |   |   | 1,795,570 |   |
| Gross profit on sales                                                                               |   |            | 713,625    |   |            |   | 678,172    |            |   |   | 626,791 |   |
| Operating, general and administrative expenses                                                      |   |            | 608,309    |   |            |   | 581,821    |            |   |   | 559,210 |   |
| Income from operations                                                                              |   |            | 105,316    |   |            |   | 96,351     |            |   |   | 67,581 |   |
| Investment income                                                                                   |   |            | 2,069      |   |            |   | 1,556      |            |   |   | 2,532 |   |
| Income before provision for income taxes                                                            |   |            | 107,385    |   |            |   | 97,907     |            |   |   | 70,113 |   |
| Provision for income taxes                                                                          |   |            | 39,094     |   |            |   | 35,107     |            |   |   | 23,118 |   |
| Net income                                                                                          |   | $               | 68,291     |   |            | $      | 62,800     |            |   | $ | 46,995 |   |
|                                                                                                |   |            |       |   |            |   |       |            |   |   |   |   |
| Weighted-average shares outstanding, basic and diluted                                              |   |            | 26,898,443 |   |            |   | 26,920,551 |            |   |   | 26,966,647 |   |
|                                                                                                |   |            |       |   |            |   |       |            |   |   |   |   |
| Cash dividends per share                                                                            |   | $               | 1.16       |   |            | $      | 1.16       |            |   | $ | 1.16 |   |
| Basic and diluted earnings per share                                                                |   | $               | 2.54       |   |            | $      | 2.33       |            |   | $ | 1.74 |   |

----

|                                                                        |   |              |       |   |     |   |    |          |   |   | Accumulated         |   |   |                |    |   |   |   |      |   |   |
|----------------------------------------------------------------------------------|--------|-------------------|------------|--------|----------|--------|---------|---------------|--------|--------|---------------------|--------|--------|---------------------|---------|--------|--------|--------|-----------|--------|--------|
| (dollars in thousands, except shares)                        |   |              |       |   |     |   |    |          |   |   | Other               |   |   |                |    |   |   |   |      | Total  |   |
| For the Fiscal Years Ended December 25, 2010, |   | Common Stock |       |   | Retained |   |    | Comprehensive |   |   | Treasury Stock |   |   | Shareholders’ |    |
| December 26, 2009 and December 27, 2008            |   | Shares            |       |   | Amount   |   |    | Earnings      |   |   | Income (Loss)  |   |   | Shares              |    |   | Amount |   |      | Equity |   |
| Balance at December 29, 2007                                                     |   |              | 33,044,357 |   |     | $      | 9,830   |          |   | $      | 779,760             |   |   | $                   | 7,339   |   |   |   | 6,077,311 |   |   | $ | (148,701 | ) |   | $ | 648,228 |   |
| Net income                                                                       |   |              | —    |   |     |   | — |          |   |   | 46,995              |   |   |                | — |   |   |   | —   |   |   |   | — |   |   |   | 46,995 |   |
| Other comprehensive loss, net of reclassification adjustments and tax            |   |              | —    |   |     |   | — |          |   |   | —             |   |   |                | (2,779  | )      |   |   | —   |   |   |   | — |   |   |   | (2,779 | ) |
| Comprehensive income                                                             |   |              |       |   |     |   |    |          |   |   |                |   |   |                |    |   |   |   |      |   |   |   |   |   |   |   | 44,216 |   |
| Shares issued for options                                                        |   |              | 3,450      |   |     |   | 119     |          |   |   | —             |   |   |                | — |   |   |   | 1,688     |   |   |   | (67 | ) |   |   | 52 |   |
| Treasury stock purchased                                                         |   |              | —    |   |     |   | — |          |   |   | —             |   |   |                | — |   |   |   | 2,909     |   |   |   | (114 | ) |   |   | (114 | ) |
| Dividends paid                                                                   |   |              | —    |   |     |   | — |          |   |   | (31,282             | )      |   |                | — |   |   |   | —   |   |   |   | — |   |   |   | (31,282 | ) |
| Balance at December 27, 2008                                                     |   |              | 33,047,807 |   |     |   | 9,949   |          |   |   | 795,473             |   |   |                | 4,560   |   |   |   | 6,081,908 |   |   |   | (148,882 | ) |   |   | 661,100 |   |
| Net income                                                                       |   |              | —    |   |     |   | — |          |   |   | 62,800              |   |   |                | — |   |   |   | —   |   |   |   | — |   |   |   | 62,800 |   |
| Other comprehensive income, net of reclassification adjustments and tax          |   |              | —    |   |     |   | — |          |   |   | —             |   |   |                | 68      |   |   |   | —   |   |   |   | — |   |   |   | 68 |   |
| Comprehensive income                                                             |   |              |       |   |     |   |    |          |   |   |                |   |   |                |    |   |   |   |      |   |   |   |   |   |   |   | 62,868 |   |
| Treasury stock purchased                                                         |   |              | —    |   |     |   | — |          |   |   | —             |   |   |                | — |   |   |   | 67,407    |   |   |   | (1,973 | ) |   |   | (1,973 | ) |
| Dividends paid                                                                   |   |              | —    |   |     |   | — |          |   |   | (31,231             | )      |   |                | — |   |   |   | —   |   |   |   | — |   |   |   | (31,231 | ) |
| Balance at December 26, 2009                                                     |   |              | 33,047,807 |   |     |   | 9,949   |          |   |   | 827,042             |   |   |                | 4,628   |   |   |   | 6,149,315 |   |   |   | (150,855 | ) |   |   | 690,764 |   |
| Net income                                                                       |   |              | —    |   |     |   | — |          |   |   | 68,291              |   |   |                | — |   |   |   | —   |   |   |   | — |   |   |   | 68,291 |   |
| Other comprehensive income, net of reclassification adjustments and tax          |   |              | —    |   |     |   | — |          |   |   | —             |   |   |                | 275     |   |   |   | —   |   |   |   | — |   |   |   | 275 |   |
| Comprehensive income                                                             |   |              |       |   |     |   |    |          |   |   |                |   |   |                |    |   |   |   |      |   |   |   |   |   |   |   | 68,566 |   |
| Treasury stock purchased                                                         |   |              | —    |   |     |   | — |          |   |   | —             |   |   |                | — |   |   |   | 49        |   |   |   | (2 | ) |   |   | (2 | ) |
| Dividends paid                                                                   |   |              | —    |   |     |   | — |          |   |   | (31,201             | )      |   |                | — |   |   |   | —   |   |   |   | — |   |   |   | (31,201 | ) |
| Balance at December 25, 2010                                                     |   |              | 33,047,807 |   |     | $      | 9,949   |          |   | $      | 864,132             |   |   | $                   | 4,903   |   |   |   | 6,149,364 |   |   | $ | (150,857 | ) |   | $ | 728,127 |   |

----

| (dollars in thousands)                                                            |   |       |    |   |       |   |    |       |   |
|-----------------------------------------------------------------------------------|--------|------------|---------|--------|------------|--------|---------|------------|--------|
| For the Fiscal Years Ended December 25, 2010,                                     |   | 2010       |    |   | 2009       |   |    | 2008       |   |
| December 26, 2009 and December 27, 2008                                           |   | (52 weeks) |    |   | (52 weeks) |   |    | (52 weeks) |   |
| Cash flows from operating activities:                                             |   |       |    |   |       |   |    |       |   |
| Net income                                                                        |   | $          | 68,291  |   |       | $      | 62,800  |       |   | $ | 46,995 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |       |    |   |       |   |    |       |   |   |   |   |
| Depreciation                                                                      |   |       | 48,567  |   |       |   | 47,201  |       |   |   | 47,053 |   |
| Amortization                                                                      |   |       | 6,491   |   |       |   | 6,207   |       |   |   | 7,978 |   |
| (Gain) loss on disposition / impairment of fixed assets                           |   |       | (1,023  | )      |       |   | 60      |       |   |   | 155 |   |
| Gain on sale of marketable securities                                             |   |       | (223    | )      |       |   | — |       |   |   | — |   |
| Changes in operating assets and liabilities:                                      |   |       |    |   |       |   |    |       |   |   |   |   |
| Inventories                                                                       |   |       | (8,006  | )      |       |   | (27,780 | )          |   |   | 6,299 |   |
| Accounts receivable and prepaid expenses                                          |   |       | (1,272  | )      |       |   | (8,066  | )          |   |   | 1,434 |   |
| Income taxes recoverable                                                          |   |       | (2,712  | )      |       |   | — |       |   |   | 8,074 |   |
| Accounts payable and other liabilities                                            |   |       | 297     |   |       |   | 37,472  |       |   |   | (7,441 | ) |
| Income taxes payable                                                              |   |       | (484    | )      |       |   | (254    | )          |   |   | 738 |   |
| Deferred income taxes                                                             |   |       | 38,195  |   |       |   | 1,372   |       |   |   | 3,946 |   |
| Other                                                                             |   |       | (1,379  | )      |       |   | (93     | )          |   |   | 95 |   |
| Net cash provided by operating activities                                         |   |       | 146,742 |   |       |   | 118,919 |       |   |   | 115,326 |   |
| Cash flows from investing activities:                                             |   |       |    |   |       |   |    |       |   |   |   |   |
| Purchase of property and equipment                                                |   |       | (69,869 | )      |       |   | (45,249 | )          |   |   | (66,958 | ) |
| Proceeds from the sale of property and equipment                                  |   |       | 2,013   |   |       |   | 991     |       |   |   | 324 |   |
| Purchase of marketable securities                                                 |   |       | (12,245 | )      |       |   | — |       |   |   | — |   |
| Proceeds from maturities of marketable securities                                 |   |       | 6,296   |   |       |   | 2,197   |       |   |   | 1,210 |   |
| Proceeds from the sale of marketable securities                                   |   |       | 341     |   |       |   | — |       |   |   | — |   |
| Acquisition of business                                                           |   |       | — |   |       |   | (35,802 | )          |   |   | — |   |
| Purchase of intangible assets                                                     |   |       | — |   |       |   | (138    | )          |   |   | (394 | ) |
| Net cash used in investing activities                                             |   |       | (73,464 | )      |       |   | (78,001 | )          |   |   | (65,818 | ) |
| Cash flows from financing activities:                                             |   |       |    |   |       |   |    |       |   |   |   |   |
| Proceeds from issuance of common stock                                            |   |       | — |   |       |   | — |       |   |   | 119 |   |
| Dividends paid                                                                    |   |       | (31,201 | )      |       |   | (31,231 | )          |   |   | (31,282 | ) |
| Purchase of treasury stock                                                        |   |       | (2      | )      |       |   | (1,973  | )          |   |   | (181 | ) |
| Net cash used in financing activities                                             |   |       | (31,203 | )      |       |   | (33,204 | )          |   |   | (31,344 | ) |
| Net increase in cash and cash equivalents                                         |   |       | 42,075  |   |       |   | 7,714   |       |   |   | 18,164 |   |
| Cash and cash equivalents at beginning of year                                    |   |       | 67,065  |   |       |   | 59,351  |       |   |   | 41,187 |   |
| Cash and cash equivalents at end of year                                          |   | $          | 109,140 |   |       | $      | 67,065  |       |   | $ | 59,351 |   |

----

----

|                             |   |  December 25, 2010 |   |   |  December 26, 2009 |   |
|----------------------------------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|
|                             |   |                              |   |   | Accumulated                       |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
| (dollars in thousands) |   | Gross                             |   |   | Amortization                      |   |   | Net |   |   | Gross |   |   | Amortization |   |   | Net |   |
| Non-Compete Agreements           |   | $                                 | 1,200  |   |                              | $      | 960 |   |   | $ | 240 |   |   | $ | 1,350 |   |   | $ | 1,000 |   |   | $ | 350 |   |
| Lease Acquisitions               |   |                              | 5,409  |   |                              |   | 2,546 |   |   |   | 2,863 |   |   |   | 5,409 |   |   |   | 2,298 |   |   |   | 3,111 |   |
| Total                            |   | $                                 | 6,609  |   |                              | $      | 3,506 |   |   | $ | 3,103 |   |   | $ | 6,759 |   |   | $ | 3,298 |   |   | $ | 3,461 |   |

----

----

----

----

|   | Level 1  | Observable inputs such as quoted prices in active markets for identical assets or liabilities; |
|--------|--------------------|------------------------------------------------------------------------------------------------|

|   | Level 2  | Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and |
|--------|--------------------|------------------------------------------------------------------------------------------------------------------------|

|   | Level 3  | Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. |
|--------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

|                             |   |      |   |   | Gross      |   |   | Gross      |   |   |    |   |
|----------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|---------|--------|
|                             |   |      |   |   | Unrealized |   |   | Unrealized |   |   |    |   |
| (dollars in thousands) |   | Amortized |   |   | Holding    |   |   | Holding    |   |   | Fair    |   |
| December 25, 2010      |   | Cost      |   |   | Gains      |   |   | Losses     |   |   | Value   |   |
| Available-for-sale:              |   |      |   |   |       |   |   |       |   |   |    |   |
| Municipal bonds                  |   | $         | 15,623 |   |       | $      | 12     |       |   | $      | — |   |   | $ | 15,635 |   |
| Equity securities                |   |      | 1,756  |   |       |   | 8,368  |       |   |   | — |   |   |   | 10,124 |   |
|                             |   | $         | 17,379 |   |       | $      | 8,380  |       |   | $      | — |   |   | $ | 25,759 |   |

|                             |   |      |   |   | Gross      |   |   | Gross      |   |   |    |   |
|----------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|---------|--------|
|                             |   |      |   |   | Unrealized |   |   | Unrealized |   |   |    |   |
| (dollars in thousands) |   | Amortized |   |   | Holding    |   |   | Holding    |   |   | Fair    |   |
| December 26, 2009      |   | Cost      |   |   | Gains      |   |   | Losses     |   |   | Value   |   |
| Available-for-sale:              |   |      |   |   |       |   |   |       |   |   |    |   |
| Municipal bonds                  |   | $         | 8,295  |   |       | $      | 132    |       |   | $      | — |   |   | $ | 8,427 |   |
| Equity securities                |   |      | 1,874  |   |       |   | 7,804  |       |   |   | 26      |   |   |   | 9,652 |   |
|                             |   | $         | 10,169 |   |       | $      | 7,936  |       |   | $      | 26      |   |   | $ | 18,079 |   |

|                                   |   | Amortized |   |   | Fair   |   |
|----------------------------------------|--------|-----------|--------|--------|--------|--------|
| (dollars in thousands)                 |   | Cost      |   |   | Value  |   |
| Available-for-sale:                    |   |      |   |   |   |   |
| Due within one year                    |   | $         | 2,060  |   |   | $      | 2,071 |   |
| Due after one year through five years  |   |      | 8,918  |   |   |   | 8,919 |   |
| Due after five years through ten years |   |      | 4,645  |   |   |   | 4,645 |   |
| Equity securities                      |   |      | 1,756  |   |   |   | 10,124 |   |
|                                   |   | $         | 17,379 |   |   | $      | 25,759 |   |

----

| (dollars in thousands) |   | 2010   |    |   | 2009   |   |
|------------------------|--------|--------|---------|--------|--------|--------|
| LIFO                   |   | $      | 190,038 |   |   | $      | 177,807 |   |
| Average cost           |   |   | 40,983  |   |   |   | 45,208 |   |
|                   |   | $      | 231,021 |   |   | $      | 223,015 |   |

|                                           |   | Useful Life |   |   |   |      |   |   |   |
|------------------------------------------------|--------|------------------|--------|--------|--------|-----------|--------|--------|--------|
| (dollars in thousands)               |   | (in years)  |   |   | 2010   |      |   | 2009   |   |
| Land                                           |   |             |   |   | $      | 91,596    |   |   | $      | 86,193 |   |
| Buildings and improvements                     |   | 10-60            |   |   |   | 447,648   |   |   |   | 427,797 |   |
| Equipment                                      |   | 3-12             |   |   |   | 714,308   |   |   |   | 682,622 |   |
| Leasehold improvements                         |   | 5-20             |   |   |   | 142,319   |   |   |   | 139,418 |   |
| Total, at cost                                 |   |        |   |   |   | 1,395,871 |   |   |   | 1,336,030 |   |
| Less accumulated depreciation and amortization |   |             |   |   |   | 870,809   |   |   |   | 825,148 |   |
|                                           |   |        |   |   | $      | 525,062   |   |   | $      | 510,882 |   |

| (dollars in thousands)   |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Minimum annual rentals   |   | $      | 33,285 |   |   | $      | 31,436 |   |   | $ | 30,733 |   |
| Contingent rentals       |   |   | 598    |   |   |   | 569    |   |   |   | 473 |   |
| Lease or sublease income |   |   | (6,514 | )      |   |   | (6,482 | )      |   |   | (6,206 | ) |
|                     |   | $      | 27,369 |   |   | $      | 25,523 |   |   | $ | 25,000 |   |

----

| (dollars in thousands) |   | Leases |    |   | Subleases |   |
|----------------------------------|--------|--------|---------|--------|-----------|--------|
| 2011                             |   | $      | 28,362  |   |      | $      | (2,987 | ) |
| 2012                             |   |   | 27,981  |   |      |   | (2,417 | ) |
| 2013                             |   |   | 27,629  |   |      |   | (1,593 | ) |
| 2014                             |   |   | 26,292  |   |      |   | (1,234 | ) |
| 2015                             |   |   | 22,719  |   |      |   | (962 | ) |
| Thereafter                       |   |   | 87,817  |   |      |   | (2,831 | ) |
|                             |   | $      | 220,800 |   |      | $      | (12,024 | ) |

| (dollars in thousands)                |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Retirement savings plan               |   | $      | 1,134  |   |   | $      | 1,070  |   |   | $ | 1,095 |   |
| Profit-sharing plan                   |   |   | 1,414  |   |   |   | 2,000  |   |   |   | 900 |   |
| Employee stock bonus plan             |   |   | (3     | )      |   |   | 2      |   |   |   | — |   |
| Deferred compensation plan            |   |   | 570    |   |   |   | 570    |   |   |   | 525 |   |
| Supplemental retirement plan          |   |   | 798    |   |   |   | 1,304  |   |   |   | (1,976 | ) |
| Pharmacist deferred compensation plan |   |   | 81     |   |   |   | (4     | )      |   |   | 3 |   |
|                                  |   | $      | 3,994  |   |   | $      | 4,942  |   |   | $ | 547 |   |

----

| (dollars in thousands)                   |   | 2010   |   |   | 2009   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|
| Benefit obligations at beginning of year |   | $      | 7,406  |   |   | $      | 7,068 |   |
| Interest cost                            |   |   | 538    |   |   |   | 513 |   |
| Benefit payments                         |   |   | (232   | )      |   |   | (232 | ) |
| Actuarial gain                           |   |   | 32     |   |   |   | 57 |   |
|                                     |   | $      | 7,744  |   |   | $      | 7,406 |   |

| Weighted-average assumptions used to determine benefit obligations: |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Discount rate                                                       |   |   | 7.50   | %      |   |   | 7.50 | % |

| (dollars in thousands)    |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Interest cost             |   | $      | 538    |   |   | $      | 513    |   |   | $ | 491 |   |
| Amount of recognized gain |   |   | 200    |   |   |   | 175    |   |   |   | 198 |   |

| (dollars in thousands) |   | Benefits |   |
|------------------------|--------|----------|--------|
| 2011                   |   | $        | 232    |   |
| 2012                   |   |     | 1,334  |   |
| 2013                   |   |     | 1,334  |   |
| 2014                   |   |     | 1,334  |   |
| 2015                   |   |     | 1,334  |   |
| 2016 – 2020      |   |     | 6,668  |   |

----

|                       |   | Weighted-Average    |    |   | Shares            |   |
|----------------------------|--------|---------------------|---------|--------|-------------------|--------|
|                       |   | Exercise Price |    |   | Under Option |   |
| Balance, December 29, 2007 |   | $                   | 36.88   |   |              |   | 47,050 |   |
| Exercised                  |   | $                   | 34.59   |   |              |   | (3,450 | ) |
| Expired                    |   | $                   | 34.31   |   |              |   | (1,100 | ) |
| Forfeited                  |   | $                   | 35.95   |   |              |   | (950 | ) |
| Balance, December 27, 2008 |   | $                   | 37.16   |   |              |   | 41,550 |   |
| Expired                    |   | $                   | 37.94   |   |              |   | (8,900 | ) |
| Forfeited                  |   | $                   | 37.42   |   |              |   | (25,950 | ) |
| Balance, December 26, 2009 |   | $                   | 35.13   |   |              |   | 6,700 |   |
| Expired                    |   | $                   | 35.13   |   |              |   | (500 | ) |
| Forfeited                  |   | $                   | 35.13   |   |              |   | (6,200 | ) |
| Balance, December 25, 2010 |   |                | — |   |              |   | — |   |

| (dollars in thousands) |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Current:               |   |   |   |   |   |   |   |   |   |
| Federal                |   | $      | 1,578  |   |   | $      | 30,415 |   |   | $ | 17,017 |   |
| State                  |   |   | (679   | )      |   |   | 3,320  |   |   |   | 2,155 |   |
| Deferred:              |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                |   |   | 33,612 |   |   |   | 1,805  |   |   |   | 6,843 |   |
| State                  |   |   | 4,583  |   |   |   | (433   | )      |   |   | (2,897 | ) |
|                   |   | $      | 39,094 |   |   | $      | 35,107 |   |   | $ | 23,118 |   |

| (dollars in thousands)                                                               |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Income taxes at federal statutory rate                                               |   | $      | 37,585 |   |   | $      | 34,268 |   |   | $ | 24,540 |   |
| State income taxes, net of federal income tax benefit                                |   |   | 2,538  |   |   |   | 1,877  |   |   |   | (483 | ) |
| Other                                                                                |   |   | (1,029 | )      |   |   | (1,038 | )      |   |   | (939 | ) |
| Provision for income taxes (effective tax rate 36.4%, 35.9% and 33.0%, respectively) |   | $      | 39,094 |   |   | $      | 35,107 |   |   | $ | 23,118 |   |

----

| (dollars in thousands)                    |   | 2010   |    |   | 2009   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred tax assets:                      |   |   |    |   |   |   |
| Accounts receivable                       |   | $      | 190     |   |   | $      | 189 |   |
| Compensated absences                      |   |   | 520     |   |   |   | 550 |   |
| Employee benefit plans                    |   |   | 4,080   |   |   |   | 5,214 |   |
| General liability insurance               |   |   | 1,413   |   |   |   | 1,410 |   |
| Postretirement benefit obligations        |   |   | 6,064   |   |   |   | 5,780 |   |
| Net operating loss carryforwards          |   |   | 9,253   |   |   |   | 3,700 |   |
| Total deferred tax assets                 |   |   | 21,520  |   |   |   | 16,843 |   |
| Deferred tax liabilities:                 |   |   |    |   |   |   |   |   |
| Inventories                               |   |   | (7,191  | )      |   |   | (6,219 | ) |
| Unrealized gains on marketable securities |   |   | (3,477  | )      |   |   | (3,282 | ) |
| Nondeductible accruals and other          |   |   | (195    | )      |   |   | (1,206 | ) |
| Depreciation                              |   |   | (70,823 | )      |   |   | (27,912 | ) |
| Total deferred tax liabilities            |   |   | (81,686 | )      |   |   | (38,619 | ) |
| Net deferred tax liability                |   | $      | (60,166 | )      |   | $      | (21,776 | ) |
| Current deferred liability - net          |   | $      | (5,818  | )      |   | $      | (3,344 | ) |
| Noncurrent deferred liability - net       |   |   | (54,348 | )      |   |   | (18,432 | ) |
| Net deferred tax liability                |   | $      | (60,166 | )      |   | $      | (21,776 | ) |

| (dollars in thousands)                                           |   | 2010   |    |   | 2009   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Unrecognized tax benefits at beginning of year                   |   | $      | 925     |   |   | $      | 800 |   |
| Increases based on tax positions related to the current year     |   |   | — |   |   |   | — |   |
| Additions for tax positions of prior years                       |   |   | — |   |   |   | 125 |   |
| Reductions for tax positions of prior years                      |   |   | — |   |   |   | — |   |
| Settlements                                                      |   |   | — |   |   |   | — |   |
| Expiration of the statute of limitations for assessment of taxes |   |   | — |   |   |   | — |   |
| Unrecognized tax benefits at end of year                         |   | $      | 925     |   |   | $      | 925 |   |

----

| (dollars in thousands)                                        |   | 2010   |   |   | 2009   |   |    | 2008   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
| Net income                                                    |   | $      | 68,291 |   |   | $      | 62,800  |   |   | $ | 46,995 |   |
| Other comprehensive income by component, net of tax:          |   |   |   |   |   |   |    |   |   |   |   |   |
| Unrealized holding gains (losses) arising during period       |   |   |   |   |   |   |    |   |   |   |   |   |
| (Net of deferred taxes of $288, $47 and $1,970, respectively) |   |   | 405    |   |   |   | 68      |   |   |   | (2,779 | ) |
| Reclassification adjustment for gains included in net income  |   |   |   |   |   |   |    |   |   |   |   |   |
| (Net of deferred taxes of $93, $0 and $0, respectively)       |   |   | (130   | )      |   |   | — |   |   |   | — |   |
| Other comprehensive income (loss), net of tax                 |   |   | 275    |   |   |   | 68      |   |   |   | (2,779 | ) |
| Comprehensive income, net of tax                              |   | $      | 68,566 |   |   | $      | 62,868  |   |   | $ | 44,216 |   |

| (dollars in thousands) |   | August 23, 2009 |   |
|----------------------------------|--------|---------------------------|--------|
| Inventories                      |   | $                         | 7,802  |   |
| Equipment                        |   |                      | 8,560  |   |
| Goodwill                         |   |                      | 19,440 |   |
| Total Assets Acquired            |   | $                         | 35,802 |   |

| (dollars in thousands,         |   |                           |    |   |                    |   |    |                    |   |   |                    |   |
|------------------------------------------|--------|--------------------------------|---------|--------|-------------------------|--------|---------|-------------------------|--------|--------|-------------------------|--------|
| except per share amounts) |   | Thirteen Weeks Ended |    |
|                                     |   | March 27, 2010       |    |   | June 26, 2010 |   |    | Sep. 25, 2010 |   |   | Dec. 25, 2010 |   |
| Net sales                                |   | $                              | 664,256 |   |                    | $      | 653,677 |                    |   | $      | 639,967                 |   |   | $ | 662,478 |   |
| Gross profit on sales                    |   |                           | 179,697 |   |                    |   | 184,374 |                    |   |   | 177,719                 |   |   |   | 171,835 |   |
| Net income                               |   |                           | 17,382  |   |                    |   | 20,509  |                    |   |   | 16,316                  |   |   |   | 14,084 |   |
| Basic and diluted earnings per share     |   |                           | .65     |   |                    |   | .76     |                    |   |   | .61                     |   |   |   | .52 |   |

| (dollars in thousands,         |   |                           |    |   |                    |   |    |                    |   |   |                    |   |
|------------------------------------------|--------|--------------------------------|---------|--------|-------------------------|--------|---------|-------------------------|--------|--------|-------------------------|--------|
| except per share amounts) |   | Thirteen Weeks Ended |    |
|                                     |   | March 28, 2009       |    |   | June 27, 2009 |   |    | Sep. 26, 2009 |   |   | Dec. 26, 2009 |   |
| Net sales                                |   | $                              | 606,239 |   |                    | $      | 615,378 |                    |   | $      | 623,158                 |   |   | $ | 671,400 |   |
| Gross profit on sales                    |   |                           | 163,510 |   |                    |   | 165,957 |                    |   |   | 170,960                 |   |   |   | 177,745 |   |
| Net income                               |   |                           | 16,518  |   |                    |   | 15,205  |                    |   |   | 15,554                  |   |   |   | 15,523 |   |
| Basic and diluted earnings per share     |   |                           | .61     |   |                    |   | .56     |                    |   |   | .58                     |   |   |   | .58 |   |

----

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|                                          | Page   |
|---------------------------------------------------------|--------|
| Financial Statements                                    |   |
| Consolidated Balance Sheets                             | 18     |
| Consolidated Statements of Income                       | 19     |
| Consolidated Statements of Shareholders’ Equity   | 20     |
| Consolidated Statements of Cash Flows                   | 21     |
| Notes to Consolidated Financial Statements              | 22     |
| Report of Independent Registered Public Accounting Firm | 34     |

----

| Exhibit No. |   | Exhibits                                                                                                                                                                                                                                                                                                                               |
|------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3-A              |   | Articles of Incorporation, filed as exhibit 4.1 in Form S-8 on September 13, 2002 and incorporated herein by reference.                                                                                                                                                                                                                |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 3-B              |   | By-Laws, filed as exhibit under Part IV, Item 14(c) in the annual report on Form 10-K for the fiscal year ended December 29, 2001 and incorporated herein by reference.                                                                                                                                                                |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 10-A             |   | Retirement Savings Plan, filed as exhibit under Part IV, Item 15(a)(3) in the annual report on Form 10-K for the fiscal year ended December 26, 2009 and incorporated herein by reference.                                                                                                                                             |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 10-B             |   | Supplemental Executive Retirement Plan, filed as exhibit under Part IV, Item 15(a)(3) in the annual report on Form 10-K for the fiscal year ended December 26, 2009 and incorporated herein by reference.                                                                                                                              |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 10-C             |   | Deferred Compensation Plan for Pharmacists, filed as exhibit under Part IV, Item 15(a)(3) in the annual report on Form 10-K for the fiscal year ended December 26, 2009 and incorporated herein by reference.                                                                                                                          |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 10-D             |   | Executive Benefits Agreement between the Company and Robert F. Weis, Chairman of the Board, signed on March 24, 2006, commencing immediately and continuing thereafter through December 31, 2023, filed on Form 8-K March 24, 2006 and incorporated herein by reference. *                                                             |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 10-E             |   | Deferred Compensation Agreement between the Company and Mr. Robert F. Weis, filed as exhibit under Part IV, Item 15(a)(3) in the annual report on Form 10-K for the fiscal year ended December 26, 2009 and incorporated herein by reference. *                                                                                        |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 10-F             |   | Executive Employment Agreement between the Company and David J. Hepfinger, President and Chief Executive Officer, signed on March 6, 2008, commencing on March 1, 2008 and continuing thereafter through February 28, 2010, filed on Form 8-K March 6, 2008 and incorporated herein by reference. *                                    |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 10-G             |   | Executive Employment Agreement between the Company and David J. Hepfinger, President and Chief Executive Officer, signed on October 26, 2010, with retroactive effect to March 1, 2010 and continuing thereafter through February 28, 2013, filed as Exhibit 10.1 to Form 8-K November 1, 2010 and incorporated herein by reference. * |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 10-H             |   | CEO Incentive Award Plan between the Company and David J. Hepfinger, President and Chief Executive Officer, signed on October 26, 2010, with retroactive effect to January 1, 2010 and continuing thereafter through December 31, 2014, filed as Exhibit 10.2 to Form 8-K November 1, 2010 and incorporated herein by reference. *     |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 10-I             |   | Executive Employment Agreement between the Company and William R. Mills, Former Senior Vice President, Treasurer and Chief Financial Officer, signed on June 27, 2007, commencing on January 1, 2008 and continuing thereafter through December 31, 2010, filed on Form 8-K June 29, 2007 and incorporated herein by reference. *      |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 21               |   | Subsidiaries of the Registrant, filed with this annual report on Form 10-K                                                                                                                                                                                                                                                             |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 23               |   | Consent of Grant Thornton LLP, filed with this annual report on Form 10-K                                                                                                                                                                                                                                                              |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 31.1             |   | Rule 13a-14(a) Certification - CEO, filed with this annual report on Form 10-K                                                                                                                                                                                                                                                         |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 31.2             |   | Rule 13a-14(a) Certification - CFO, filed with this annual report on Form 10-K                                                                                                                                                                                                                                                         |
|             |   |                                                                                                                                                                                                                                                                                                                                   |
| 32               |   | Certification Pursuant to 18 U.S.C. Section 1350, filed with this annual report on Form 10-K                                                                                                                                                                                                                                           |

----

| Col. A                          |   | Col. B     |   |   | Col. C     |   |   | Col. D     |   |   | Col. E       |   |
|--------------------------------------|--------|-----------------|--------|--------|-----------------|--------|--------|-----------------|--------|--------|-------------------|--------|
|                                 |   |            |   |   | Additions       |   |   |            |   |   |              |   |
|                                 |   | Balance at |   |   | Charged to |   |   | Charged to |   |   |              |   |   | Balance at |   |
|                                 |   | Beginning       |   |   | Costs and  |   |   | Accounts        |   |   | Deductions        |   |   | End of |   |
| Description                          |   | of Period  |   |   | Expenses        |   |   | Describe        |   |   | Describe (1) |   |   | Period |   |
| Fiscal Year ended December 25, 2010: |   |            |   |   |            |   |   |            |   |   |              |   |   |   |   |
| Deducted from asset accounts:        |   |            |   |   |            |   |   |            |   |   |              |   |   |   |   |
| Allowance for uncollectible accounts |   | $               | 969    |   |            | $      | 872    |            |   | $      | —           |   |   | $ | 804 |   |   | $ | 1,037 |   |
|                                 |   |            |   |   |            |   |   |            |   |   |              |   |   |   |   |   |   |   |   |   |
| Fiscal Year ended December 26, 2009: |   |            |   |   |            |   |   |            |   |   |              |   |   |   |   |   |   |   |   |   |
| Deducted from asset accounts:        |   |            |   |   |            |   |   |            |   |   |              |   |   |   |   |   |   |   |   |   |
| Allowance for uncollectible accounts |   | $               | 673    |   |            | $      | 859    |            |   | $      | —           |   |   | $ | 563 |   |   | $ | 969 |   |
|                                 |   |            |   |   |            |   |   |            |   |   |              |   |   |   |   |   |   |   |   |   |
| Fiscal Year ended December 27, 2008: |   |            |   |   |            |   |   |            |   |   |              |   |   |   |   |   |   |   |   |   |
| Deducted from asset accounts:        |   |            |   |   |            |   |   |            |   |   |              |   |   |   |   |   |   |   |   |   |
| Allowance for uncollectible accounts |   | $               | 1,147  |   |            | $      | 619    |            |   | $      | —           |   |   | $ | 1,093 |   |   | $ | 673 |   |

----

|            | WEIS MARKETS, INC.                    |
|-----------------|---------------------------------------|
|            | (Registrant)                          |
|            |                                  |
| Date 03/10/2011 | /S/David J. Hepfinger                 |
|            | David J. Hepfinger                    |
|            | President and Chief Executive Officer |
|            | and Director                          |
|            | (principal executive officer)         |

| Date 03/10/2011 | /S/Robert F. Weis                              |
|-----------------|------------------------------------------------|
|            | Robert F. Weis                                 |
|            | Chairman of the Board of Directors             |
|            |                                           |
| Date 03/10/2011 | /S/Jonathan H. Weis                            |
|            | Jonathan H. Weis                               |
|            | Vice Chairman and Secretary                    |
|            | and Director                                   |
|            |                                           |
| Date 03/10/2011 | /S/David J. Hepfinger                          |
|            | David J. Hepfinger                             |
|            | President and Chief Executive Officer          |
|            | and Director                                   |
|            | (principal executive officer)                  |
|            |                                           |
| Date 03/10/2011 | /S/Scott F. Frost                              |
|            | Scott F. Frost                                 |
|            | Senior Vice President, Chief Financial Officer |
|            | and Treasurer                                  |
|            | (principal financial officer)                  |
|            |                                           |
| Date 03/10/2011 | /S/Richard E. Shulman                          |
|            | Richard E. Shulman                             |
|            | Director                                       |
|            |                                           |
| Date 03/10/2011 | /S/Gerrald B. Silverman                        |
|            | Gerrald B. Silverman                           |
|            | Director                                       |
|            |                                           |
| Date 03/10/2011 | /S/Steven C. Smith                             |
|            | Steven C. Smith                                |
|            | Director                                       |
|            |                                           |
| Date 03/10/2011 | /S/Glenn D. Steele Jr.                         |
|            | Glenn D. Steele Jr.                            |
|            | Director                                       |
|            |                                           |
| Date 03/10/2011 | /S/Paul M. Stombaugh                           |
|            | Paul M. Stombaugh                              |
|            | Corporate Controller                           |
|            | (principal accounting officer)                 |

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