EARNINGS PER SHARE

3 Months Ended

Mar. 27, 2019

Basic earnings per share of Class A common stock is computed by dividing net income attributable 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 attributable 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 weeks ended March 27, 2019 and March 28, 2018.



			Thirteen Weeks Ended
			March 27 2019		March 28 2018
Numerator:
	Net income		$	3,607	$	4,979
	Less: net income attributable to non-controlling interests		1,061		1,471
	Net income attributable to Shake Shack Inc.		$	2,546	$	3,508
Denominator:
	Weighted-average shares of Class A common stock outstanding—basic		29,563		27,039
	Effect of dilutive securities:
		Stock options	731		702
		Performance stock units	76		70
		Restricted stock units	22		11
	Weighted-average shares of Class A common stock outstanding—diluted		30,392		27,822

Earnings per share of Class A common stock—basic			$	0.09	$	0.13
Earnings per share of Class A common stock—diluted			$	0.08	$	0.13

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 weeks ended March 27, 2019 and March 28, 2018.



	Thirteen Weeks Ended
	March 27 2019		March 28 2018
Stock options	3,785	(1)	—
Performance stock units	69,772	(2)	—
Shares of Class B common stock	7,453,515	(3)	9,220,236	(3)

(1) Number of securities excluded from the computation of diluted earnings per share of Class A common stock because the exercise price of the stock options exceeded the average market price of our Class A common stock during the period ("out-of-the-money").

(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 outstanding as of the end of the period 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.