EARNINGS PER SHARE

9 Months Ended

Sep. 28, 2016

Basic earnings per share of Class A common stock is computed by dividing net income available to Shake Shack Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income available to Shake Shack Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock for the thirteen and thirty-nine weeks ended September 28, 2016 and September 30, 2015.



			Thirteen Weeks Ended				Thirty-Nine Weeks Ended
			September 28 2016		September 30 2015		September 28 2016		September 30 2015
Numerator:
	Net income		$	6,789	$	6,193	$	16,689	$	78
	Less: net income attributable to non-controlling interests		3,023		4,665		8,163		10,100
	Net income (loss) attributable to Shake Shack Inc.		$	3,766	$	1,528	$	8,526	$	(10,022	)
Denominator:
	Weighted-average shares of Class A common stock outstanding—basic		24,023		13,757		22,310		12,590
	Effect of dilutive securities:
		Stock options	531		1,028		495		—
	Weighted-average shares of Class A common stock outstanding—diluted		24,554		14,785		22,805		12,590

Earnings (loss) per share of Class A common stock—basic			$	0.16	$	0.11	$	0.38	$	(0.80	)
Earnings (loss) per share of Class A common stock—diluted			$	0.15	$	0.10	$	0.37	$	(0.80	)

Shares of our Class B common stock do not share in the earnings or losses of Shake Shack and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented.

The following table presents potentially dilutive securities excluded from the computations of diluted earnings per share of Class A common stock for the thirteen and thirty-nine weeks ended September 28, 2016 and September 30, 2015.



	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 28 2016		September 30 2015		September 28 2016		September 30 2015
Stock options	—		—		—		2,580,856	(1)
Performance stock units	62,800	(2)	—		62,800	(2)	—
Shares of Class B common stock	11,754,078	(3)	21,036,580	(3)	11,754,078	(3)	21,036,580	(3)


(1)	Excluded from the computation of diluted earnings per share of Class A common stock because the effect would have been anti-dilutive since we recognized a net loss for the period.


(2)	Excluded from the computation of diluted earnings per share of Class A common stock because the performance conditions associated with these awards were not met assuming the end of the reporting period was the end of the performance period.


(3)	Shares of our Class B common stock are considered potentially dilutive shares of Class A common stock. Amounts have been excluded from the computations of diluted earnings per share of Class A common stock because the effect would have been anti-dilutive under the if-converted and two-class methods.