EARNINGS PER SHARE

12 Months Ended

Dec. 29, 2021

EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share of Class A common stock is computed by dividing Net income (loss) attributable to Shake Shack Inc. by the weighted average number of shares of Class A common stock outstanding during the period. Diluted earnings (loss) per share of Class A common stock is computed by dividing Net income (loss) 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 (loss) per share of Class A common stock (in thousands, except per share amounts) for fiscal 2021, fiscal 2020 and fiscal 2019.


			2021		2020		2019
Numerator:
	Net income (loss) attributable to Shake Shack Inc.—basic		$	(8,655)	$	(42,158)	$	19,827

	Net income (loss) attributable to Shake Shack Inc.—diluted		$	(8,655)	$	(42,158)	$	19,827
Denominator:
	Weighted average shares of Class A common stock outstanding—basic		39,085		37,129		31,381
	Effect of dilutive securities:
		Stock options	—		—		743
		Performance stock units	—		—		70
		Restricted stock units	—		—		57



	Weighted average shares of Class A common stock outstanding—diluted		39,085		37,129		32,251

Earnings (loss) per share of Class A common stock—basic			$	(0.22)	$	(1.14)	$	0.63
Earnings (loss) per share of Class A common stock—diluted			$	(0.22)	$	(1.14)	$	0.61

Shares of 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 (loss) per share of Class B common stock under the two-class method has not been presented. However, shares of Class B common stock outstanding for the period are considered potentially dilutive shares of Class A common stock under application of the if-converted method and are included in the computation of diluted earnings (loss) per share, except when the effect would be anti-dilutive.

The effect of potential share settlement of the Convertible Notes outstanding for the period is included as potentially dilutive shares of Class A common stock under application of the if-converted method in the computation of diluted earnings (loss) per share, except when the effect would be anti-dilutive. Refer to Note 8, Debt, for additional information.

The following table presents potentially dilutive securities, as of the end of the period, excluded from the computations of diluted earnings (loss) per share of Class A common stock for fiscal 2021, fiscal 2020 and fiscal 2019.


	2021		2020		2019
Stock options	154,231	(1)	489,024	(1)	946	(2)
Performance stock units	186,159	(1)	137,221	(1)	51,197	(3)
Restricted stock units	231,429	(1)	258,493	(1)	—
Shares of Class B common stock	2,921,587	(1)	2,951,188	(1)	3,145,197	(1)
Convertible notes	1,466,975	(1)	—		—

(1)Number of securities outstanding at the end of the period that were excluded from the computation of diluted earnings (loss) per share of Class A common stock because the effect would have been anti-dilutive.

(2)Weighted average 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").

(3)Weighted average number of securities 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 for a portion of the fiscal year.