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EQUITY-BASED COMPENSATION
 12 Months Ended
Dec. 29, 2021
Share-based Payment Arrangement [Abstract]  
EQUITY-BASED COMPENSATION EQUITY-BASED COMPENSATION
A summary of equity-based compensation expense recognized during fiscal 2021, fiscal 2020 and fiscal 2019 is as follows:
202120202019
Stock options$3 $322 $2,626 
Performance stock units3,471 1,309 3,035 
Restricted stock units5,229 3,929 1,844 
Equity-based compensation expense$8,703 $5,560 $7,505 
Total income tax benefit recognized related to equity-based compensation$223 $204 $188 
Equity-based compensation expense is recorded in General and administrative expenses and Labor and related expenses on the Consolidated Statements of Income (Loss) during fiscal 2021, fiscal 2020 and fiscal 2019 as follows:
202120202019
General and administrative expenses$7,907 $5,039 $7,189 
Labor and related expenses796 521 316 
Equity-based compensation expense$8,703 $5,560 $7,505 
We capitalized $100, $40 and $195 of equity-based compensation expense associated with the construction cost of our Shacks and our enterprise-wide system upgrade, Project Concrete, during fiscal 2021, fiscal 2020 and fiscal 2019, respectively.
Stock Options
In January 2015, we adopted the 2015 Incentive Award Plan (the "2015 Plan") under which we may grant up to 5,865,522 stock options and other equity-based awards to team members, directors and officers. The stock options granted generally vest equally over periods ranging from one to five years. We do not use cash to settle any of our equity-based awards, and we issue new shares of Class A common stock upon the exercise of stock options.
The fair value of stock option awards was determined on the grant date using the Black-Scholes valuation model based on the following weighted average assumptions:
202120202019
Expected term (years)(1)
7.57.57.5
Expected volatility(2)
45.4 %42.3 %42.2 %
Risk-free interest rate(3)
1.4 %0.7 %2.4 %
Dividend yield(4)
— %— %— %
(1)Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.
(2)Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.
(3)The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.
(4)We have assumed a dividend yield of zero as we have no plans to declare dividends in the foreseeable future.
A summary of stock option activity for fiscal year 2021 is as follows:
Stock
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic ValueWeighted Average Remaining Contractual Life (Years)
Outstanding as of December 30, 2020489,024 $21.83 
Granted1,698 119.39 
Exercised(323,512)21.19 
Forfeited(12,979)51.15 
Outstanding as of December 29, 2021154,231 $21.77 $7,456 3.2
Options vested and exercisable as of December 29, 2021154,231 $21.77 $7,456 3.2
Options expected to vest as of December 29, 2021— $— $— —
As of December 29, 2021, total unrecognized compensation expense related to unvested stock options was nil. Cash received from stock options exercised was $6,731 and the cash tax benefit realized for the tax deductions from these option exercises was $365 for fiscal 2021. The weighted average grant date fair value of options granted during fiscal 2021, fiscal 2020 and fiscal 2019 was $58.92, $16.21, $26.42, respectively. The total intrinsic value of stock options exercised during fiscal 2021, fiscal 2020 and fiscal 2019 was $30,533, $25,824 and $16,905, respectively. The total fair value of stock options vested during fiscal 2021, fiscal 2020 and fiscal 2019 was $60, $2,674 and $2,950, respectively.
The following table summarizes information about stock options outstanding and exercisable as December 29, 2021:
Options OutstandingOptions Exercisable
Number Outstanding at December 29, 2021Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise PriceNumber Exercisable at December 29, 2021Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise Price
Exercise Price
$21.00 145,712 3.1$21.00 145,712 3.1$21.00 
$34.62 7,411 4.4$34.62 7,411 4.4$34.62 
$36.41 1,108 4.9$36.41 1,108 4.9$36.41 
Performance Stock Units
Under the 2015 Plan, we may grant performance stock units and other types of performance-based equity awards that vest based on the outcome of certain performance criteria that are established and approved by the Compensation Committee of the Board of Directors. The actual number of equity awards earned is based on the level of performance achieved over a predetermined performance period, relative to established financial goals, none of which are considered market conditions.
For performance stock units granted during fiscal 2021, the amount of awards that can be earned ranges from 0% to 200% of the number of performance stock units granted, based on the achievement of approved financial goals over a one-year or three-year performance period. In addition to the performance conditions, performance stock units are also subject to a requisite service period and the awards vest ratably over four years or cliff vest over three years. The fair value of performance stock units is determined based on the closing market price of our Class A common stock on the date of grant. Compensation expense related to the performance stock units is recognized using either a graded-vesting attribution method or straight-line over the vesting period based on the most probable outcome of the performance conditions.
A summary of performance stock unit activity for fiscal year 2021, is as follows:
Performance
Stock
Units
Weighted
Average
Grant Date Fair Value
Outstanding as of December 30, 2020137,221 $55.67 
Granted165,263 98.87 
Performance achievement(1)
(74,137)57.20 
Vested(29,892)55.24 
Forfeited(12,296)103.83 
Outstanding as of December 29, 2021186,159 $90.31 
(1)Represents the incremental awards earned and/or awards forfeited based on the achievement of performance conditions.

As of December 29, 2021, there were 186,159 performance stock units outstanding, of which none were vested. The weighted average grant date fair value of share awards granted during fiscal 2021, fiscal 2020 and fiscal 2019 were $98.87, $57.20, and $52.47, respectively. The total fair value of awards that vested during fiscal 2021, fiscal 2020 and fiscal 2019 was $3,083, $2,730 and $3,456, respectively. As of December 29, 2021, total unrecognized compensation expense related to unvested performance stock units was $12,058, which is expected to be recognized over a weighted average period of 2.8 years.
Restricted Stock Units
Under the 2015 Plan, we may grant restricted stock units to team members, directors and officers. The restricted stock units granted generally vest equally over periods ranging from one to five years. The fair value of restricted stock units is determined based on the closing market price of our Class A common stock on the date of grant. Compensation expense related to the restricted stock units is recognized using a straight-line attribution method over the vesting period.
A summary of restricted stock unit activity for fiscal year 2021 is as follows:
Restricted
Stock
Units
Weighted
Average
Grant Date Fair Value
Outstanding as of December 30, 2020258,493 $54.33 
Granted127,013 117.39 
Vested(75,312)55.23 
Forfeited(78,765)66.87 
Outstanding as of December 29, 2021231,429 $84.37 
As of December 29, 2021, there were 231,429 restricted stock units outstanding, of which none were vested. The weighted average grant date fair value of share awards granted during fiscal 2021, fiscal 2020 and fiscal 2019 were $117.39, $57.41, and $52.51, respectively. The total fair value of shares vested during fiscal 2021, fiscal 2020 and fiscal 2019 was $8,385, $2,463 and $947, respectively. As of December 29, 2021, total unrecognized compensation expense related to unvested restricted stock units was $14,984, which is expected to be recognized over a weighted average period of 2.9 years.