STOCKHOLDER'S EQUITY

12 Months Ended

Dec. 27, 2023

Equity [Abstract]

STOCKHOLDER'S EQUITY

STOCKHOLDERS' EQUITY

Redemptions of LLC Interests

The SSE Holdings LLC Agreement provides that holders of LLC Interests may, from time to time, require SSE Holdings to redeem all or a portion of their LLC Interests for newly-issued shares of Class A common stock on a one-for-one basis. In connection with any redemption or exchange, the Company receives a corresponding number of LLC Interests, increasing its total ownership interest in SSE Holdings. Simultaneously, and in connection with a redemption, the corresponding number of shares of Class B common stock are surrendered and cancelled.

A summary of activity related to redemptions of LLC Interests were as follows:

		2023	2022	2021
Redemption and acquisition of LLC Interests
	Number of LLC Interests redeemed by non-controlling interest holders	35,000	52,074	29,601
	Number of LLC Interests received by Shake Shack Inc.	35,000	52,074	29,601
Issuance of Class A common stock
	Shares of Class A common stock issued in connection with redemptions of LLC Interests	35,000	52,074	29,601
Cancellation of Class B common stock
	Shares of Class B common stock surrendered and cancelled	35,000	52,074	29,601

Stock Compensation Plan Activity

The Company received an aggregate of 154,317, 90,527 and 395,006 LLC Interests in connection with the activity under the stock compensation plan during fiscal 2023, fiscal 2022 and fiscal 2021, respectively. 

Dividend Restrictions

Shake Shack Inc. is a holding company with no direct operations. As a result, its ability to pay cash dividends on its common stock, if any, is dependent upon cash dividends, distributions or other transfers from SSE Holdings. The amounts available to pay cash dividends are subject to certain covenants and restrictions set forth in the Revolving Credit Facility. As of December 27, 2023, essentially all of the net assets of SSE Holdings were restricted.