EARNINGS PER SHARE

6 Months Ended

Jun. 29, 2022

EARNINGS (LOSS) PER SHAREThe 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 the thirteen and twenty-six weeks ended June 29, 2022 and June 30, 2021.


			Thirteen Weeks Ended				Twenty-Six Weeks Ended
			June 29 2022		June 30 2021		June 29 2022		June 30 2021
Numerator:
	Net income (loss) attributable to Shake Shack Inc.—basic		$	(1,188)	$	1,944	$	(11,350)	$	3,253
	Reallocation of net income (loss) attributable to non-controlling interests from the assumed conversion of Class B shares		—		121		—		(613)
	Net income (loss) attributable to Shake Shack Inc.—diluted		$	(1,188)	$	2,065	$	(11,350)	$	2,640
Denominator:
	Weighted average shares of Class A common stock outstanding—basic		39,227		39,114		39,195		39,031
	Effect of dilutive securities:
		Stock options	—		133		—		182
		Performance stock units	—		35		—		44
		Restricted stock units	—		118		—		141
		Convertible Notes	—		1,467		—		959
		Shares of Class B common stock	—		2,922		—		2,932

	Weighted average shares of Class A common stock outstanding—diluted		39,227		43,789		39,195		43,289

Earnings per share of Class A common stock—basic			$	(0.03)	$	0.05	$	(0.29)	$	0.08
Earnings per share of Class A common stock—diluted			$	(0.03)	$	0.05	$	(0.29)	$	0.06

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 6, Debt, for additional information.

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 following table presents potentially dilutive securities excluded from the computations of diluted earnings (loss) per share of Class A common stock for the thirteen and twenty-six weeks ended June 29, 2022 and June 30, 2021.


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 29 2022		June 30 2021		June 29 2022		June 30 2021
Stock options	145,856	(1)	—		145,856	(1)	—
Performance stock units	160,427	(1)	46,768	(2)	160,427	(1)	46,768	(2)
Restricted stock units	409,698	(1)	—		409,698	(1)	—
Shares of Class B common stock	2,871,513	(1)	—		2,871,513	(1)	—
Convertible notes	1,466,975	(1)	—		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)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 performance conditions associated with these awards were not met assuming the end of the reporting period was the end of the performance period.