10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 26, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to ______

Commission file number: 001-36823

SHAKE SHACK INC.

(Exact name of registrant as specified in its charter)

Delaware			47-1941186
(State or other jurisdiction of incorporation or organization)			(IRS Employer Identification No.)
225 Varick Street
Suite 301
	New York,	New York	10014
	(Address of principal executive offices)		(Zip Code)

(646) 747-7200

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.001	SHAK	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule-405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). þ Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☑ No

As of July 24, 2024, there were 39,982,821 shares of Class A common stock outstanding and 2,487,936 shares of Class B common stock outstanding.

SHAKE SHACK INC.

TABLE OF CONTENTS

Cautionary Note Regarding Forward-Looking Information			1
Part I			2
	Item 1.	Financial Statements (Unaudited)	2
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	26
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42
	Item 4.	Controls and Procedures	42
Part II			44
	Item 1.	Legal Proceedings	44
	Item 1A.	Risk Factors	44
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
	Item 3.	Defaults Upon Senior Securities	44
	Item 5.	Other Information	44
	Item 6.	Exhibits	45
SIGNATURES			46

Cautionary Note Regarding Forward-Looking Information

This Quarterly Report on Form 10-Q ("Form 10-Q") contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"), which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact included in this Form 10-Q are forward-looking statements, including, but not limited to, statements about the Company's growth, strategic plan, and liquidity. Forward-looking statements discuss the Company's current expectations and projections relating to its financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "intend," "likely," "outlook," "potential," "project," "projection," "plan," "seek," "may," "could," "would," "will," "should," "can," "can have," the negatives thereof and other similar expressions.

All forward-looking statements are expressly qualified in their entirety by these cautionary statements. Some of the factors which could cause results to differ materially from the Company's expectations include the Company's ability to develop and open new Shacks on a timely basis, increased costs or shortages or interruptions in the supply and delivery of products, increased labor costs or shortages, inflationary pressures, the Company's management of its digital capabilities and expansion into delivery, as well as kiosk, drive-thru and multiple format investments, the Company's ability to maintain and grow sales at existing Shacks, and risks relating to the restaurant industry generally, and the impact of any material weakness in the Company's internal controls over financial reporting identified in connection with the restatement described in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 29, 2024 or otherwise. You should evaluate all forward-looking statements made in this Form 10-Q in the context of the risks and uncertainties disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 27, 2023 as filed with the Securities and Exchange Commission (the "SEC").

The forward-looking statements included in this Form 10-Q are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Shake Shack Inc. Form 10-Q | 1

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

	Page
Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Income (Loss)	4
Condensed Consolidated Statements of Comprehensive Income (Loss)	5
Condensed Consolidated Statements of Stockholders' Equity	6
Condensed Consolidated Statements of Cash Flows	8
Notes to Condensed Consolidated Financial Statements	9

2 | Shake Shack Inc. Form 10-Q

SHAKE SHACK INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share amounts)

		June 26 2024		December 27 2023
ASSETS
Current assets:
	Cash and cash equivalents	$	301,838	$	224,653
	Marketable securities	2,574		68,561
	Accounts receivable, net	15,914		16,847
	Inventories	5,194		5,404
	Prepaid expenses and other current assets	20,160		18,967
	Total current assets	345,680		334,432
Property and equipment, net of accumulated depreciation of $425,428 and $376,760, respectively		545,225		530,995
Operating lease assets		419,527		398,296
Deferred income taxes, net		338,538		326,208
Other assets		12,788		15,926
TOTAL ASSETS		$	1,661,758	$	1,605,857
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable	$	18,576	$	22,273
	Accrued expenses	56,376		54,742
	Accrued wages and related liabilities	22,584		20,945
	Operating lease liabilities, current	53,140		49,004
	Other current liabilities	17,412		17,103
	Total current liabilities	168,088		164,067
Long-term debt		246,160		245,636
Long-term operating lease liabilities		487,600		464,533
Liabilities under tax receivable agreement, net of current portion		246,878		235,613
Other long-term liabilities		26,667		26,638
Total liabilities		1,175,393		1,136,487
Commitments and contingencies (Note 13)
Stockholders' equity:
	Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of June 26, 2024 and December 27, 2023.	—		—
	Class A common stock, $0.001 par value—200,000,000 shares authorized; 39,966,973 and 39,474,315 shares issued and outstanding as of June 26, 2024 and December 27, 2023, respectively.	40		39
	Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,487,936 and 2,834,513 shares issued and outstanding as of June 26, 2024 and December 27, 2023, respectively.	2		3
	Additional paid-in capital	433,877		426,601
	Retained earnings	28,485		16,777
	Accumulated other comprehensive loss	(4)		(3)
	Total stockholders' equity attributable to Shake Shack Inc.	462,400		443,417
Non-controlling interests		23,965		25,953
Total equity		486,365		469,370
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,661,758	$	1,605,857

See accompanying Notes to Condensed Consolidated Financial Statements.

Shake Shack Inc. Form 10-Q | 3

SHAKE SHACK INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(in thousands, except per share amounts)

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
		June 26 2024		June 28 2023		June 26 2024		June 28 2023
Shack sales		$	305,480	$	261,810	$	586,032	$	506,064
Licensing revenue		11,016		9,995		20,968		19,019
TOTAL REVENUE		316,496		271,805		607,000		525,083
Shack-level operating expenses:
	Food and paper costs	85,053		75,800		165,306		147,572
	Labor and related expenses	86,614		75,158		168,123		149,422
	Other operating expenses	43,953		36,109		85,809		71,045
	Occupancy and related expenses	23,226		19,801		45,414		38,384
General and administrative expenses		36,313		31,476		72,257		62,787
Depreciation and amortization expense		25,496		22,252		50,937		43,574
Pre-opening costs		4,014		5,577		6,767		9,134
Impairment and loss on disposal of assets		1,045		884		1,571		1,606
TOTAL EXPENSES		305,714		267,057		596,184		523,524
INCOME FROM OPERATIONS		10,782		4,748		10,816		1,559
Other income, net		3,300		3,227		6,506		6,064
Interest expense		(527)		(405)		(1,035)		(808)
INCOME BEFORE INCOME TAXES		13,555		7,570		16,287		6,815
Income tax expense		3,173		347		3,691		1,214
NET INCOME		10,382		7,223		12,596		5,601
Less: Net income attributable to non-controlling interests		714		275		888		187
NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC.		$	9,668	$	6,948	$	11,708	$	5,414
Earnings per share of Class A common stock:
	Basic	$	0.24	$	0.18	$	0.30	$	0.14
	Diluted	$	0.23	$	0.16	$	0.28	$	0.13
Weighted-average shares of Class A common stock outstanding:
	Basic	39,750		39,416		39,632		39,374
	Diluted	41,480		43,886		41,369		43,837

See accompanying Notes to Condensed Consolidated Financial Statements.

4 | Shake Shack Inc. Form 10-Q

SHAKE SHACK INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

(in thousands)

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
		June 26 2024		June 28 2023		June 26 2024		June 28 2023
Net income		$	10,382	$	7,223	$	12,596	$	5,601
Other comprehensive loss, net of tax(1):
	Change in foreign currency translation adjustment	—		—		(1)		(4)
OTHER COMPREHENSIVE LOSS		—		—		(1)		(4)
COMPREHENSIVE INCOME		10,382		7,223		12,595		5,597
Less: Comprehensive income attributable to non-controlling interests		714		275		888		187
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAKE SHACK INC.		$	9,668	$	6,948	$	11,707	$	5,410

(1)Net of tax expense of $0 for the thirteen and twenty-six weeks ended June 26, 2024 and June 28, 2023.

See accompanying Notes to Condensed Consolidated Financial Statements.

Shake Shack Inc. Form 10-Q | 5

SHAKE SHACK INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(UNAUDITED)

(in thousands, except share amounts)

For the Thirteen Weeks Ended June 26, 2024 and June 28, 2023
		Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Non- Controlling Interest		Total Equity
		Shares	Amount		Shares	Amount
BALANCE, MARCH 27, 2024		39,635,382	$	40	2,801,013	$	3	$	427,530	$	18,817	$	(4)	$	25,907	$	472,293
	Net income	—	—		—	—		—		9,668		—		714		10,382
	Other comprehensive income (loss):
	Net change in foreign currency translation adjustment	—	—		—	—		—		—		—		—		—
	Equity-based compensation	—	—		—	—		3,840		—		—		—		3,840
	Activity under stock compensation plans	18,514	—		—	—		(320)		—		—		296		(24)
	Redemption of LLC Interests	313,077	—		(313,077)	(1)		2,953		—		—		(2,952)		—
	Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	—	—		—	—		(126)		—		—		—		(126)
	Distributions paid to non-controlling interest holders	—	—		—	—		—		—		—		—		—
BALANCE, JUNE 26, 2024		39,966,973	$	40	2,487,936	$	2	$	433,877	$	28,485	$	(4)	$	23,965	$	486,365
BALANCE, MARCH 29, 2023		39,404,905	$	39	2,844,513	$	3	$	417,489	$	(5,021)	$	(4)	$	24,487	$	436,993
	Net income	—	—		—	—		—		6,948		—		275		7,223
	Other comprehensive income (loss):
	Net change in foreign currency translation adjustment	—	—		—	—		—		—		—		—		—
	Equity-based compensation	—	—		—	—		4,011		—		—		—		4,011
	Activity under stock compensation plans	44,341	—		—	—		145		—		—		329		474
	Redemption of LLC Interests	—	—		—	—		—		—		—		—		—
	Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	—	—		—	—		(251)		—		—		—		(251)
	Distributions paid to non-controlling interest holders	—	—		—	—		—		—		—		(3)		(3)
BALANCE, JUNE 28, 2023		39,449,246	$	39	2,844,513	$	3	$	421,394	$	1,927	$	(4)	$	25,088	$	448,447

6 | Shake Shack Inc. Form 10-Q

For the Twenty-Six Weeks Ended June 26, 2024 and June 28, 2023
		Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Non- Controlling Interest		Total Equity
		Shares	Amount		Shares	Amount
BALANCE, DECEMBER 27, 2023		39,474,315	$	39	2,834,513	$	3	$	426,601	$	16,777	$	(3)	$	25,953	$	469,370
	Net income	—	—		—	—		—		11,708		—		888		12,596
	Other comprehensive income (loss):
	Net change in foreign currency translation adjustment	—	—		—	—		—		—		(1)		—		(1)
	Equity-based compensation	—	—		—	—		7,558		—		—		—		7,558
	Activity under stock compensation plans	146,081	1		—	—		(5,897)		—		—		507		(5,389)
	Redemption of LLC Interests	346,577	—		(346,577)	(1)		3,239		—		—		(3,238)		—
	Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	—	—		—	—		2,376		—		—		—		2,376
	Distributions paid to non-controlling interest holders	—	—		—	—		—		—		—		(145)		(145)
BALANCE, JUNE 26, 2024		39,966,973	$	40	2,487,936	$	2	$	433,877	$	28,485	$	(4)	$	23,965	$	486,365
BALANCE, DECEMBER 28, 2022		39,284,998	$	39	2,869,513	$	3	$	415,649	$	(3,487)	$	—	$	24,632	$	436,836
	Net income	—	—		—	—		—		5,414		—		187		5,601
	Other comprehensive income (loss):
	Net change in foreign currency translation adjustment	—	—		—	—		—		—		(4)		—		(4)
	Equity-based compensation	—	—		—	—		7,875		—		—		—		7,875
	Activity under stock compensation plans	139,248	—		—	—		(2,554)		—		—		515		(2,039)
	Redemption of LLC Interests	25,000	—		(25,000)	—		194		—		—		(194)		—
	Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	—	—		—	—		230		—		—		—		230
	Distributions paid to non-controlling interest holders	—	—		—	—		—		—		—		(52)		(52)
BALANCE, JUNE 28, 2023		39,449,246	$	39	2,844,513	$	3	$	421,394	$	1,927	$	(4)	$	25,088	$	448,447

See accompanying Notes to Condensed Consolidated Financial Statements.

Shake Shack Inc. Form 10-Q | 7

SHAKE SHACK INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

			Twenty-Six Weeks Ended
			June 26 2024		June 28 2023
OPERATING ACTIVITIES
Net income (including amounts attributable to non-controlling interests)			$	12,596	$	5,601
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization expense		50,937		43,574
	Amortization of debt issuance costs		524		524
	Amortization of cloud computing assets		1,048		880
	Non-cash operating lease cost		37,655		32,598
	Equity-based compensation		7,381		7,734
	Deferred income taxes		1,311		2,733
	Non-cash interest		(128)		99
	Gain on sale of equity securities		—		(81)
	Net amortization of discount on held-to-maturity securities		(434)		(89)
	Impairment and loss on disposal of assets		1,571		1,606
	Changes in operating assets and liabilities:
		Accounts receivable	933		(455)
		Inventories	210		(490)
		Prepaid expenses and other current assets	(864)		(519)
		Other assets	(1,219)		(3,217)
		Accounts payable	(1,084)		(3,939)
		Accrued expenses	4,409		39
		Accrued wages and related liabilities	1,639		592
		Other current liabilities	(732)		(2,081)
		Operating lease liabilities	(32,553)		(25,584)
		Other long-term liabilities	1,010		2,666
NET CASH PROVIDED BY OPERATING ACTIVITIES			84,210		62,191
INVESTING ACTIVITIES
Purchases of property and equipment			(65,992)		(74,755)
Purchases of held-to-maturity securities			—		(91,448)
Maturities of held-to-maturity marketable securities			66,420		—
Purchases of equity securities			—		(690)
Sales of equity securities			—		81,478
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES			428		(85,415)
FINANCING ACTIVITIES
Payments on principal of finance leases			(1,918)		(1,504)
Distributions paid to non-controlling interest holders			(145)		(52)
Net proceeds from stock option exercises			552		630
Employee withholding taxes related to net settled equity awards			(5,941)		(2,670)
NET CASH USED IN FINANCING ACTIVITIES			(7,452)		(3,596)
Effect of exchange rate changes on cash and cash equivalents			(1)		(4)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			77,185		(26,824)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			224,653		230,521
CASH AND CASH EQUIVALENTS AT END OF PERIOD			$	301,838	$	203,697

See accompanying Notes to Condensed Consolidated Financial Statements.

8 | Shake Shack Inc. Form 10-Q

SHAKE SHACK INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

		Page
Note 1	Nature of Operations	10
Note 2	Summary of Significant Accounting Policies	10
Note 3	Revenue	11
Note 4	Fair Value Measurements	12
Note 5	Supplemental Balance Sheet Information	13
Note 6	Debt	14
Note 7	Leases	15
Note 8	Non-Controlling Interests	17
Note 9	Equity-Based Compensation	19
Note 10	Income Taxes	20
Note 11	Earnings (Loss) Per Share	22
Note 12	Supplemental Cash Flow Information	23
Note 13	Commitments and Contingencies	24
Note 14	Related Party Transactions	24

Shake Shack Inc. Form 10-Q | 9

NOTE 1: NATURE OF OPERATIONS

Shake Shack Inc. was formed on September 23, 2014 as a Delaware corporation for the purpose of facilitating an initial public offering and other related transactions in order to carry on the business of SSE Holdings, LLC and its subsidiaries ("SSE Holdings"). Shake Shack Inc. is the sole managing member of SSE Holdings and, as sole managing member, the Company operates and controls all of the business and affairs of SSE Holdings. As a result, the Company consolidates the financial results of SSE Holdings and reports a non-controlling interest representing the economic interest in SSE Holdings held by the other members of SSE Holdings. As of June 26, 2024 the Company owned 94.1% of SSE Holdings. Unless the context otherwise requires, "we," "us," "our," "Shake Shack," the "Company" and other similar references, refer to Shake Shack Inc. and, unless otherwise stated, all of its subsidiaries, including SSE Holdings.

The Company operates and licenses Shake Shack restaurants ("Shacks"), which serve burgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine and more. As of June 26, 2024, there were 547 Shacks in operation system-wide, of which 311 were Company-operated Shacks and 236 were licensed Shacks.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Shake Shack Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and on a basis consistent in all material respects with the accounting policies described in its Annual Report on Form 10-K for the fiscal year ended December 27, 2023 ("2023 Form 10-K"). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These interim Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes thereto included in its 2023 Form 10-K. In the Company's opinion, all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the financial position and results of operation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year.

SSE Holdings is considered a variable interest entity. Shake Shack Inc. is the primary beneficiary as the Company has the majority economic interest in SSE Holdings and, as the sole managing member, has decision making authority that significantly affects the economic performance of the entity, while the limited partners have no substantive kick-out or participating rights. As a result, the Company consolidates SSE Holdings. The assets and liabilities of SSE Holdings represent substantially all of the Company's consolidated assets and liabilities with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement. As of June 26, 2024 and December 27, 2023, the net assets of SSE Holdings were $409,417 and $388,250, respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreement.

Fiscal Year

The Company operates on a 52/53 week fiscal year ending on the last Wednesday of December. Fiscal 2024 contains 52 weeks and ends on December 25, 2024. Fiscal 2023 contained 52 weeks and ended on December 27, 2023. Unless otherwise stated, references to years in this report relate to fiscal years.

Use of Estimates

The preparation of these Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates.

10 | Shake Shack Inc. Form 10-Q

Recently Issued Accounting Pronouncements

The Company reviewed all recently issued accounting pronouncements and concluded that they were not applicable or not expected to have a significant impact on its Condensed Consolidated Financial Statements.

NOTE 3: REVENUE

Revenue Recognition

Shack Sales

Revenue from Shack sales is recognized when payment is tendered at the point of sale, net of discounts as the performance obligation has been satisfied at that time. Sales tax collected from guests is excluded from Shack sales and the obligation is included in Other current liabilities on the Condensed Consolidated Balance Sheets until the taxes are remitted to the appropriate taxing authorities.

Delivery services are fulfilled by third-party delivery partners whether ordered through the Shack app, website (collectively, "Company-owned platforms") or through third-party delivery platforms. Revenue from orders through Company-owned platforms includes delivery fees and is recognized when the delivery partner transfers the order to the guest as the Company controls the delivery. For these sales, the Company receives payment directly from the guest at the time of sale. Revenue from orders through third-party delivery platforms is recognized when the order is transferred to the third-party delivery partner and excludes delivery fees collected by the delivery partner as the Company does not control the delivery. The Company receives payment from the delivery partner subsequent to the transfer of the order and the payment terms are short-term in nature. For all delivery sales, the Company is considered the principal and recognizes revenue on a gross basis.

The Company sells gift cards which do not have expiration dates. Revenue from gift cards is recognized when gift cards are redeemed by the guest or, in the event a gift card is not expected to be redeemed, in proportion to actual redemptions of gift cards ("gift card breakage"). The gift card breakage rate is determined from historical gift card redemption patterns. Gift card breakage income for the thirteen weeks ended June 26, 2024 and June 28, 2023 was $110 and $72, respectively. Gift card breakage income for the twenty-six weeks ended June 26, 2024 and June 28, 2023 was $244 and $178, respectively. Gift card breakage income is included in Shack sales on the Condensed Consolidated Statements of Income.

Licensing Revenue

Licensing revenue includes initial territory fees, Shack opening fees and ongoing sales-based royalty fees from licensed Shacks. Generally, the licenses granted to develop, open and operate each Shack in a specified territory are the predominant good or service transferred to the licensee and represent distinct performance obligations. Ancillary promised services, such as training and assistance during the initial opening of a Shack, are typically combined with the license and considered one performance obligation per Shack.

The Company determines the transaction price for each contract, which requires judgement as the transaction price is comprised of the initial territory fee and an estimate of the total Shack opening fees based on the estimated number of Shacks the Company expects the licensee to open. The transaction price is then allocated equally to each Shack expected to open. The performance obligation is satisfied over time, starting when a Shack opens through the end of the license term for the related Shack, therefore revenue is recognized on a straight-line basis over the license term.

Generally, payment for the initial territory fee is received upon execution of the license agreement and payment for the Shack opening fees is received either in advance of or upon opening the related Shack. These payments are initially deferred and recognized in revenue as the performance obligations are satisfied. Revenue from sales-based royalties is recognized as the related sales occur.

Shake Shack Inc. Form 10-Q | 11

Revenue disaggregated by type was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Shack sales	$	305,480	$	261,810	$	586,032	$	506,064
Licensing revenue:
Sales-based royalties	10,624		9,712		20,257		18,490
Initial territory and opening fees	392		283		711		529
Total revenue	$	316,496	$	271,805	$	607,000	$	525,083

The aggregate amount of the transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of June 26, 2024 was $22,978. The Company expects to recognize this amount as revenue over a long-term period, as the license term for each Shack ranges from five to twenty years. This amount excludes any variable consideration related to sales-based royalties.

Contract Balances

Contract liabilities and receivables from contracts with customers were as follows:

	June 26 2024		December 27 2023
Shack sales receivables	$	9,399	$	9,884
Licensing receivables, net of allowance for doubtful accounts	5,440		4,610
Gift card liability	2,047		2,603
Deferred revenue, current	1,328		1,192
Deferred revenue, long-term	16,777		17,157

Revenue recognized that was included in the respective liability balances at the beginning of the period was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Gift card liability	$	168	$	144	$	587	$	477
Deferred revenue	385		274		702		518

NOTE 4: FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The carrying values of the Company's Cash and cash equivalents, Accounts receivable, net, Accounts payable and Accrued expenses approximate fair value due to the short-term nature of these financial instruments.

The Company's marketable securities were as follows:

	June 26 2024		December 27 2023
Held-to-maturity securities	$	2,574	$	68,561

The Company classified its held-to-maturity securities as Level 1 within the fair value hierarchy. Refer to Note 6, Debt, for additional information relating to the fair value of the Company's outstanding debt instruments.

12 | Shake Shack Inc. Form 10-Q

The Company's held-to-maturity securities were as follows:

	June 26, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Treasuries	$	2,574	$	456	$	—	$	3,030

As of June 26, 2024, the contractual maturities of held-to-maturity securities were less than 12 months. Any expected credit losses would not be material to the Condensed Consolidated Statements of Income.

A summary of other income (expense) from marketable securities was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Income from marketable securities	$	90	$	126	$	625	$	621
Realized gain on sale of equity securities	—		—		—		81
Total	$	90	$	126	$	625	$	702

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis include long-lived assets, operating lease right-of-use assets and indefinite-lived intangible assets. The Company performs its impairment analysis at least annually or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. There were no impairment charges recognized during the thirteen and twenty-six weeks ended June 26, 2024 and June 28, 2023.

NOTE 5: SUPPLEMENTAL BALANCE SHEET INFORMATION

The components of Prepaid expenses and other current assets were as follows:

	June 26 2024		December 27 2023
Prepaid expenses	$	6,332	$	5,641
Tenant allowance receivables	12,465		12,136
Other	1,363		1,190
Prepaid expenses and other current assets	$	20,160	$	18,967

The components of Other current liabilities were as follows:

	June 26 2024		December 27 2023
Sales tax payable	$	6,220	$	6,076
Current portion of financing equipment lease liabilities	3,789		3,435
Gift card liability	2,047		2,603
Other	5,356		4,989
Other current liabilities	$	17,412	$	17,103

Shake Shack Inc. Form 10-Q | 13

NOTE 6: DEBT

Convertible Notes

The Company's $250,000 aggregate principal amount of 0% Convertible Senior Notes due 2028 (“Convertible Notes”) will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in certain circumstances. Upon conversion, the Company pays or delivers, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company's election.

The Convertible Notes are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding December 1, 2027, only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on June 30, 2021 (and only during such fiscal quarter), if the last reported sale price of the Company's Class A common stock, par value $0.001 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the Convertible Notes on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per one thousand dollar principal amount of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate for the Convertible Notes on each such trading day; (3) if the Company calls such Convertible Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the Convertible Notes called (or deemed called) for redemption; and (4) upon the occurrence of specified corporate events as set forth in the Indenture. On or after December 1, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Convertible Notes may convert all or any portion of their Convertible Notes at any time, regardless of the foregoing circumstances.

The Convertible Notes had an initial conversion rate of 5.8679 shares of Class A common stock per one thousand dollar principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $170.42 per share of Class A common stock. The fair value of the Convertible Notes was approximately $214,375 and $205,000, respectively, as of June 26, 2024 and December 27, 2023, based on external pricing data, including available quoted market prices of these instruments, and consideration of comparable debt instruments with similar interest rates and trading frequency, among other factors, and is classified as a Level 2 measurement within the fair value hierarchy.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amortization expense on Convertible Notes	Interest expense	$	262	$	262	$	524	$	524

	June 26 2024		December 27 2023
Convertible Notes	$	250,000	$	250,000
Discount and debt issuance costs, net of amortization	(3,840)		(4,364)
Long-term debt	$	246,160	$	245,636

Revolving Credit Facility

The Company maintains a revolving credit facility agreement ("Revolving Credit Facility") which permits borrowings up to $50,000 with the ability to increase available borrowings up to an additional $100,000, subject to satisfaction of certain conditions. The Revolving Credit Facility has a maturity date of March 5, 2026.

In June 2023, the Company entered into the fourth amendment to the Revolving Credit Facility ("Fourth Amendment"), which, among other things, modified the benchmark interest rate to either: (i) the base rate plus applicable margin ranging from 0.0% to 1.5% or (ii) the Secured Overnight Financing Rate (“SOFR”) plus applicable margin ranging from 1.0% to 2.5%, in each case

14 | Shake Shack Inc. Form 10-Q

dependent upon the net lease adjusted leverage ratio. As of June 26, 2024 and December 27, 2023, no amounts were outstanding under the Revolving Credit Facility.

The obligations under the Revolving Credit Facility are secured by a first-priority security interest in substantially all of the assets of SSE Holdings and the guarantors. The obligations under the Revolving Credit Facility are guaranteed by each of SSE Holdings' direct and indirect subsidiaries, with certain exceptions. The Revolving Credit Facility requires the Company to comply with maximum net lease adjusted leverage and minimum fixed charge coverage ratios, as well as other customary affirmative and negative covenants. As of June 26, 2024, the Company was in compliance with all covenants.

The Revolving Credit Facility also permits the issuance of letters of credit upon our request of up to $15,000. As of June 26, 2024 and December 27, 2023, the Company had outstanding letters of credit of $3,310 and $3,147, respectively, in connection with the Revolving Credit Facility.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Interest expense on Revolving Credit Facility	Interest expense	$	17	$	22	$	34	$	46

	Classification	June 26 2024		December 27 2023
Unamortized deferred financing costs on Revolving Credit Facility	Other assets	$	33	$	42

NOTE 7: LEASES

Nature of Leases

Shake Shack currently leases all of its Company-operated Shacks, the home office and certain equipment under various non-cancelable lease agreements that expire on various dates through 2045. The Company evaluates contracts entered into to determine whether the contract involves the use of property or equipment, which is either explicitly or implicitly identified in the contract. The Company evaluates whether it controls the use of the asset, which is determined by assessing whether substantially all economic benefit from the use of the asset is obtained, and whether the Company has the right to direct the use of the asset. If these criteria are met, the Company has identified a lease within the contract, and therefore a right of use asset and lease liability are recorded on the Condensed Consolidated Balance Sheets. Upon possession of a leased asset, the Company determines whether the lease is an operating or finance lease. All of the Company's real estate leases are classified as operating leases and most equipment leases are classified as finance leases.

Generally, real estate leases have initial terms ranging from 10 to 15 years and typically include two five-year renewal options. Renewal options are generally not recognized as part of the right-of-use assets and lease liabilities as it is not reasonably certain at commencement date that the Company would exercise the renewal options. Real estate leases typically contain fixed minimum rent payments and/or contingent rent payments which are based upon sales in excess of specified thresholds. When the achievement of such sales thresholds are deemed to be probable, contingent rent is accrued in proportion to the sales recognized during the period.

For operating leases, fixed lease payments are recognized as operating lease costs on a straight-line basis over the lease term on the Condensed Consolidated Statements of Income in the following line items. Lease expense incurred before a Shack opens is recorded in Pre-opening costs. Once a Company-operated Shack opens, the straight-line lease expense and contingent rent, if applicable, are recorded in Occupancy and related expenses. Many of these leases also require the Company to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in Occupancy and related expenses. Finance leases are recognized in depreciation expense on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability.

Shake Shack Inc. Form 10-Q | 15

For both operating and finance leases that contain lease and non-lease components, the components are combined and accounted for as a single lease component. Variable lease costs for both operating and finance leases, if any, are recognized as incurred. Leases with a term of 12 months or less are deemed short-term and are not recognized on the Condensed Consolidated Balance Sheets. Fixed lease payments for short-term leases are recognized on a straight-line basis over the lease term.

The Company calculates operating lease assets and lease liabilities as the present value of fixed lease payments over the reasonably certain lease term beginning at the commencement date. The Company uses its incremental borrowing rate ("IBR") in determining the present value of future lease payments as there are no explicit rates provided in the leases. The IBR used to measure the lease liability is derived from the average of the yield curves obtained from using the notching method and the recovery rate method. The most significant assumption in calculating the IBR is the Company's credit rating and is subject to judgment. The credit rating used to develop the IBR is determined by utilizing the credit ratings of other public companies with similar financial information as SSE Holdings.

The Company expends cash for leasehold improvements to build out and equip leased properties. Generally, a portion of the leasehold improvements and building costs are reimbursed by the landlords through landlord incentives pursuant to agreed-upon terms in the lease agreements. Landlord incentives usually take the form of cash, full or partial credits against future minimum or contingent rents otherwise payable by the Company, or a combination thereof. In most cases, landlord incentives are received after the Company takes possession of the property and as milestones are met during the construction of the property. The Company includes these amounts in the measurement of the initial operating lease liability, and lease asset.

A summary of operating and finance right-of-use assets and lease liabilities were as follows:

	Classification	June 26 2024		December 27 2023
Operating leases	Operating lease assets	$	419,527	$	398,296
Finance leases	Property and equipment, net	12,278		11,801
Total right-of-use assets		$	431,805	$	410,097
Operating leases:
	Operating lease liabilities, current	$	53,140	$	49,004
	Long-term operating lease liabilities	487,600		464,533
Finance leases:
	Other current liabilities	3,789		3,435
	Other long-term liabilities	8,969		8,721
Total lease liabilities		$	553,498	$	525,693

The components of lease expense were as follows:

			Thirteen Weeks Ended				Twenty-Six Weeks Ended
		Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Operating lease cost		Occupancy and related expenses Pre-opening costs General and administrative expenses	$	19,165	$	16,523	$	37,655	$	32,598
Finance lease cost:
	Amortization of right-of-use assets	Depreciation and amortization expense	1,075		703		2,043		1,440
	Interest on lease liabilities	Interest expense	207		72		387		142
Variable lease cost		Occupancy and related expenses Pre-opening costs General and administrative expenses	5,523		4,682		10,729		8,452
Short-term lease cost		Occupancy and related expenses	190		273		406		513
Total lease cost			$	26,160	$	22,253	$	51,220	$	43,145

16 | Shake Shack Inc. Form 10-Q

As of June 26, 2024, future minimum lease payments for operating and finance leases consisted of the following:

	Operating Leases		Finance Leases
2024(1)	$	29,716	$	2,306
2025	85,913		4,151
2026	86,224		3,397
2027	81,318		2,719
2028	76,993		1,493
Thereafter	342,271		228
Total minimum payments	702,435		14,294
Less: imputed interest	174,160		1,536
Total lease liabilities	$	528,275	$	12,758

(1)Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of June 26, 2024.

As of June 26, 2024, the Company had additional operating lease commitments of $134,340 for non-cancelable leases without a possession date, which commence in 2024 or later. These lease commitments are materially consistent with leases recognized on the Condensed Consolidated Balance Sheets.

A summary of lease terms and discount rates for operating and finance leases were as follows:

		June 26 2024		December 27 2023
Weighted average remaining lease term (years):
	Operating leases	8.9		8.9
	Finance leases	4.7		4.7
Weighted average discount rate:
	Operating leases	6.2	%	6.2	%
	Finance leases	5.7	%	5.6	%

Supplemental cash flow information related to leases was as follows:

		Twenty-Six Weeks Ended
		June 26 2024		June 28 2023
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from operating leases	$	40,095	$	34,454
	Operating cash flows from finance leases	387		142
	Financing cash flows from finance leases	1,918		1,504
Right-of-use assets obtained in exchange for lease obligations:
	Operating leases	43,822		37,625
	Finance leases	2,520		1,408

NOTE 8: NON-CONTROLLING INTERESTS

Shake Shack is the primary beneficiary and sole managing member of SSE Holdings and, as a result, consolidates the financial results of SSE Holdings. The Company reports a non-controlling interest representing the economic interest held by the other members of SSE Holdings. The Third Amended and Restated Limited Liability Company Agreement, as further amended, (the "LLC Agreement") of SSE Holdings provides that holders of SSE Holdings, LLC membership interests ("LLC Interests") may,

Shake Shack Inc. Form 10-Q | 17

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 will receive a corresponding number of LLC Interests, increasing the total ownership interest in SSE Holdings. Changes in the ownership interest in SSE Holdings while the Company retains its controlling interest in SSE Holdings will be accounted for as equity transactions. As such, future redemptions or direct exchanges of LLC Interests in SSE Holdings by the other members of SSE Holdings will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase additional paid-in capital.

The following table summarizes the ownership interest in SSE Holdings:

	June 26, 2024			December 27, 2023
	LLC Interests	Ownership %		LLC Interests	Ownership %
Number of LLC Interests held by Shake Shack Inc.	39,966,973	94.1	%	39,474,315	93.3	%
Number of LLC Interests held by non-controlling interest holders	2,487,936	5.9	%	2,834,513	6.7	%
Total LLC Interests outstanding	42,454,909	100.0	%	42,308,828	100.0	%

The weighted average ownership percentages for the applicable reporting periods are used to attribute Net income and Other comprehensive income to the non-controlling interest holders and were as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Non-controlling interest holders' weighted average ownership percentages	6.3	%	6.7	%	6.5	%	6.7	%

The following table summarizes the effects of changes in ownership of SSE Holdings on the Company's equity:

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
		June 26 2024		June 28 2023		June 26 2024		June 28 2023
Net income attributable to Shake Shack Inc.		$	9,668	$	6,948	$	11,708	$	5,414
Other comprehensive loss:
	Unrealized holding loss on foreign currency translation adjustment	—		—		(1)		(4)
Transfers (to) from non-controlling interests:
	Increase in additional paid-in capital as a result of the redemption of LLC Interests	2,953		—		3,239		194
	Increase (decrease) in additional paid-in capital as a result of activity under stock compensation plan	(320)		145		(5,897)		(2,554)
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.		$	12,301	$	7,093	$	9,049	$	3,050

18 | Shake Shack Inc. Form 10-Q

The following table summarizes the LLC Interests activity:

		Thirteen Weeks Ended		Twenty-Six Weeks Ended
		June 26 2024	June 28 2023	June 26 2024	June 28 2023
LLC Interests activity under the Company's stock compensation plan
	Number of LLC Interests received by Shake Shack Inc.	18,514	44,341	146,081	139,248
Redemption and acquisition of LLC Interests
	Number of LLC Interests redeemed by non-controlling interest holders	313,077	—	346,577	25,000
	Number of LLC Interests received by Shake Shack Inc.	313,077	—	346,577	25,000
Issuance of Class A common stock
	Shares of Class A common stock issued in connection with redemptions of LLC Interests	313,077	—	346,577	25,000
Cancellation of Class B common stock
	Shares of Class B common stock surrendered and canceled	313,077	—	346,577	25,000

NOTE 9: EQUITY-BASED COMPENSATION

A summary of equity-based compensation expense by award type was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Performance stock units	$	(505)	$	749	$	278	$	2,059
Restricted stock units	4,244		3,183		7,103		5,675
Equity-based compensation expense	$	3,739	$	3,932	$	7,381	$	7,734
Total income tax benefit recognized related to equity-based compensation	$	113	$	98	$	217	$	200

Equity-based compensation expense recognized was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
General and administrative expenses	$	3,317	$	3,562	$	6,633	$	7,091
Labor and related expenses	422		370		748		643
Equity-based compensation expense	$	3,739	$	3,932	$	7,381	$	7,734

Shake Shack Inc. Form 10-Q | 19

NOTE 10: INCOME TAXES

Shake Shack is the sole managing member of SSE Holdings and, as a result, consolidates the financial results of SSE Holdings. SSE Holdings is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, SSE Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by SSE Holdings is passed through to and included in the taxable income or loss of its members, including the Company, on a pro rata basis. The Company is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to its allocable share of any taxable income or loss of SSE Holdings, as well as any stand-alone income or loss generated by Shake Shack Inc. The Company is also subject to withholding taxes in foreign jurisdictions.

Effective Income Tax Rates

The following table presents the Company’s effective income tax rates:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Effective income tax rates	23.4	%	4.6	%	22.7	%	17.8	%

The increases in the effective income tax rates for the thirteen and twenty-six weeks ended June 26, 2024 were primarily driven by increases in pre-tax income. Additionally, increases in the Company's ownership interest in SSE Holdings for the thirteen and twenty-six weeks ended June 26, 2024 increase its share of the taxable income of SSE Holdings.

The Company's weighted average ownership interest in SSE Holdings was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Shake Shack's weighted average ownership percentages	93.7	%	93.3	%	93.5	%	93.3	%

Deferred Tax Assets and Liabilities

The Company acquires LLC Interests in connection with the redemption of LLC Interests and activity relating to its stock compensation plan and recognizes deferred tax assets associated with the basis difference in its investment in SSE Holdings upon acquisition of these LLC Interests.

The following table summarizes the LLC Interests acquired by the Company:

	Thirteen Weeks Ended		Twenty-Six Weeks Ended
	June 26 2024	June 28 2023	June 26 2024	June 28 2023
LLC Interests activity under the Company's stock compensation plan	18,514	44,341	146,081	139,248
LLC Interests activity from redemptions of LLC Interests	313,077	—	346,577	25,000
Total LLC Interests acquired by the Company	331,591	44,341	492,658	164,248

20 | Shake Shack Inc. Form 10-Q

Deferred tax assets related to the basis difference in the Company's investment in SSE Holdings were as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Deferred tax assets recognized upon acquisition of LLC Interests	$	7,263	$	(251)	$	10,577	$	573

	June 26 2024		December 27 2023
Total deferred tax assets related to the acquisition of LLC Interests	$	101,746	$	90,419

The Company also recognizes deferred tax assets related to additional tax basis increases generated from expected future payments under the Tax Receivable Agreement and related deductions for imputed interest on such payments. Refer to "Tax Receivable Agreement," herein for additional information.

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Deferred tax assets recognized under the Tax Receivable Agreement	$	2,760	$	—	$	3,063	$	129

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized. As of June 26, 2024, the Company concluded, based on the weight of all available positive and negative evidence, that all of its deferred tax assets (except for those deferred tax assets relating to certain state tax credits and net operating losses) are more likely than not to be realized. As such, no additional valuation allowance was recognized.

Tax Receivable Agreement

On February 4, 2015, the Company entered into a tax receivable agreement with certain of the then-existing members of SSE Holdings (the "Tax Receivable Agreement") that provides for the payment by the Company of 85% of the amount of any tax benefits that are actually realized, or in some cases are deemed to realize, as a result of (i) increases in the Company's share of the tax basis in the net assets of SSE Holdings resulting from any redemptions or exchanges of LLC Interests, (ii) tax basis increases attributable to payments made under the Tax Receivable Agreement, and (iii) deductions attributable to imputed interest pursuant to the Tax Receivable Agreement (the "TRA Payments"). The Company expects to benefit from the remaining 15% of any tax benefits that may actually realize. The TRA Payments are not conditioned upon any continued ownership interest in SSE Holdings or the Company. The rights of each member of SSE Holdings that is a party to the Tax Receivable Agreement, are assignable to transferees of their respective LLC Interests.

Pursuant to the Company's election under Section 754 of the Internal Revenue Code (the "Code"), the Company expects to obtain an increase in its share of the tax basis in the net assets of SSE Holdings when LLC Interests are redeemed or exchanged by the other members of SSE Holdings. The Company plans to make an election under Section 754 of the Code for each taxable year in which a redemption or exchange of LLC Interest occurs. The Company intends to treat any redemptions and exchanges of LLC Interests as direct purchases of LLC Interests for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that would otherwise be paid in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.

Amounts payable under the Tax Receivable Agreement are contingent upon, among other things, (i) generation of future taxable income over the term of the Tax Receivable Agreement and (ii) future changes in tax laws. There were no transactions subject to the Tax Receivable Agreement for which the Company did not recognize the related liability, as the Company concluded that it would have sufficient future taxable income to utilize all of the related tax benefits generated by all transactions that occurred during the twenty-six weeks ended June 26, 2024 and June 28, 2023.

Shake Shack Inc. Form 10-Q | 21

A summary of obligations under the Tax Receivable Agreement were as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Additional liabilities recognized under the Tax Receivable Agreement	$	10,150	$	(4)	$	11,265	$	468

	June 26 2024		December 27 2023
Total obligations under the Tax Receivable Agreement	$	246,878	$	235,613

During the twenty-six weeks ended June 26, 2024 and June 28, 2023, inclusive of interest, no payments were made to the parties to the Tax Receivable Agreement.

NOTE 11: EARNINGS (LOSS) PER SHARE

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 (in thousands, except per share amounts):

			Thirteen Weeks Ended				Twenty-Six Weeks Ended
			June 26 2024		June 28 2023		June 26 2024		June 28 2023
Numerator:
	Net income attributable to Shake Shack Inc.—basic		$	9,668	$	6,948	$	11,708	$	5,414
	Reallocation of net income attributable to non-controlling interests from the assumed conversion of Class B shares		—		275		—		187
	Net income attributable to Shake Shack Inc.—diluted		$	9,668	$	7,223	$	11,708	$	5,601
Denominator:
	Weighted average shares of Class A common stock outstanding—basic		39,750		39,416		39,632		39,374
	Effect of dilutive securities:
		Stock options	60		79		65		79
		Performance stock units	63		6		39		11
		Restricted stock units	140		73		166		58
		Convertible Notes	1,467		1,467		1,467		1,467
		Shares of Class B common stock	—		2,845		—		2,848
	Weighted average shares of Class A common stock outstanding—diluted		41,480		43,886		41,369		43,837
Earnings per share of Class A common stock—basic			$	0.24	$	0.18	$	0.30	$	0.14
Earnings per share of Class A common stock—diluted			$	0.23	$	0.16	$	0.28	$	0.13

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 per share, except when the effect would be anti-dilutive. Refer to Note 6, Debt, for additional information.

22 | Shake Shack Inc. Form 10-Q

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 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 per share, except when the effect would be anti-dilutive.

The following table presents potentially dilutive securities excluded from the computations of diluted earnings per share of Class A common stock:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Performance stock units	121,131	(1)	109,749	(1)	121,131	(1)	109,749	(1)
Shares of Class B common stock	2,487,936	(2)	—		2,487,936	(2)	—

(1)Number of securities outstanding at the end of the period that were 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.

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

NOTE 12: SUPPLEMENTAL CASH FLOW INFORMATION

The following table sets forth supplemental cash flow information:

		Twenty-Six Weeks Ended
		June 26 2024		June 28 2023
Cash paid for:
	Income taxes, net of refunds	$	3,696	$	1,877
	Interest, net of amounts capitalized	493		185
Non-cash investing activities:
	Accrued purchases of property and equipment	19,749		26,178
	Capitalized equity-based compensation	107		92
Non-cash financing activities:
	Establishment of liabilities under Tax Receivable Agreement	11,265		468

Shake Shack Inc. Form 10-Q | 23

NOTE 13: COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company is obligated under various operating leases for Shacks and the home office space, expiring in various years through 2045. Under certain of these leases, the Company is liable for contingent rent based on a percentage of sales in excess of specified thresholds and typically responsible for its proportionate share of real estate taxes, common area maintenance costs and other occupancy costs. Refer to Note 7, Leases, for additional information.

Certain leases require the Company to obtain letters of credit. As of June 26, 2024, the Company held three letters of credit, one for $402, which expires in August 2024 and renews automatically for one-year periods through January 2034, one for $163, which expires in December 2024 and renews automatically for one-year periods through December 2029 and one for $130 which expires in February 2026.

Purchase Commitments

Purchase obligations include legally binding contracts, including commitments for the purchase, construction or remodeling of real estate and facilities, firm minimum commitments for inventory purchases, equipment purchases, marketing-related contracts, software acquisition/license commitments and service contracts. These obligations are generally short-term in nature and are recorded as liabilities when the related goods are received or services rendered. The Company also enters into long-term, exclusive contracts with certain vendors to supply food, beverages and paper goods, obligating the Company to purchase specified quantities.

Legal Contingencies

The Company is subject to various legal proceedings, claims and liabilities, involving employees and guests alike, which arise in the ordinary course of business and are generally covered by insurance. As of June 26, 2024, the amount of the ultimate liability with respect to these matters was not material.

Liabilities under Tax Receivable Agreement

The Company is a party to the Tax Receivable Agreement under which it is contractually committed to pay certain of the members of SSE Holdings 85% of the amount of any tax benefits that are actually realized, or in some cases are deemed to realize, as a result of certain transactions. The Company is not obligated to make any payments under the Tax Receivable Agreement until the tax benefits associated with the transactions that gave rise to the payments are realized. Refer to Note 10, Income Taxes, for additional information relating to the Tax Receivable Agreement.

NOTE 14: RELATED PARTY TRANSACTIONS

Union Square Hospitality Group

The Chairman of the Board of Directors serves as the Executive Chairman of Union Square Hospitality Group, LLC. As a result, Union Square Hospitality Group, LLC and its subsidiary, set forth below, are considered related parties.

Hudson Yards Sports and Entertainment

In fiscal 2011, Shake Shack entered into a Master License Agreement (as amended, "MLA") with Hudson Yards Sports and Entertainment LLC ("HYSE") to operate Shake Shack branded limited menu concession stands in sports and entertainment venues within the United States. In February 2019, the agreement was assigned to Hudson Yards Catering ("HYC"), the parent of HYSE. The agreement expires in January 2027 and includes five consecutive five-year renewal options at HYC's option. As consideration for these rights, HYC pays the Company a license fee based on a percentage of net food sales, as defined in the MLA. HYC also pays a percentage of profits on sales of branded beverages, as defined in the MLA.

24 | Shake Shack Inc. Form 10-Q

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts received from HYC	Licensing revenue	$	144	$	163	$	242	$	309

	Classification	June 26 2024		December 27 2023
Amounts due from HYC	Accounts receivable, net	$	218	$	57

Madison Square Park Conservancy

The Chairman of the Board of Directors serves as a director of the Madison Square Park Conservancy ("MSP Conservancy"), with which Shake Shack has a license agreement and pays license fees to operate the Madison Square Park Shack.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to MSP Conservancy	Occupancy and related expenses	$	229	$	224	$	458	$	448

	Classification	June 26 2024		December 27 2023
Amounts due to MSP Conservancy	Accrued expenses	$	20	$	—

Olo, Inc.

The Chairman of the Board of Directors serves as a director of Olo, Inc., a platform the Company uses in connection with its mobile ordering application.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to Olo, Inc.	Other operating expenses	$	133	$	143	$	314	$	267

	Classification	June 26 2024		December 27 2023
Amounts due to Olo, Inc.	Accounts payable Accrued expenses	$	222	$	116

Block, Inc.

The Company's former Chief Executive Officer is a member of the board of directors of Block, Inc. (formerly known as "Square, Inc."). The Company currently uses certain point-of-sale applications, payment processing services, hardware and other enterprise platform services in connection with its kiosk technology, sales for certain off-site events and the processing of a limited amount of sales at certain locations.

Shake Shack Inc. Form 10-Q | 25

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to Block, Inc.	Other operating expenses	$	3,170	$	1,909	$	5,875	$	3,585

	Classification	June 26 2024		December 27 2023
Amounts due to Block, Inc.	Accounts payable Accrued expenses	$	—	$	59

Tax Receivable Agreement

The Company entered into a Tax Receivable Agreement that provides for the payment by the Company of 85% of the amount of any tax benefits that are actually realized, or in some cases are deemed to realize, as a result of certain transactions. Refer to Note 10, Income Taxes, for additional information. No payments were made to the members of SSE Holdings pursuant to the Tax Receivable Agreement during the twenty-six weeks ended June 26, 2024 and June 28, 2023.

	Classification	June 26 2024		December 27 2023
Amounts due under the Tax Receivable Agreement	Other current liabilities Liabilities under Tax Receivable Agreement, net of current portion	$	246,878	$	235,613

Distributions to Members of SSE Holdings

Under the terms of the SSE Holdings LLC Agreement, SSE Holdings is obligated to make tax distributions to its members. No tax distributions were payable to non-controlling interest holders as of June 26, 2024 and December 27, 2023, respectively.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to non-controlling interest holders	Non-controlling interests	$	—	$	3	$	145	$	52

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

This section and other parts of this Quarterly Report on Form 10-Q ("Form 10-Q") contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"), which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact are forward-looking statements including, but not limited to, statements about the Company's growth, strategic plan, and liquidity. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "intend," "likely," "outlook," "potential," "project," "projection," "plan," "seek," "may," "could," "would," "will," "should," "can," "can have," the negatives thereof and other similar expressions.

All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this Form 10-Q in the context of the risks and uncertainties disclosed in our Annual Report on Form 10-K for the fiscal year ended December 27, 2023 ("2023 Form 10-K").

26 | Shake Shack Inc. Form 10-Q

The forward-looking statements included in this Form 10-Q are made only as of the date hereof. We undertake no obligation to publicly update any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.

The following discussion should be read in conjunction with our 2023 Form 10-K and the Condensed Consolidated Financial Statements and notes thereto included in Part I, Item 1 of this Form 10-Q. All information presented herein is based on our fiscal calendar. Unless otherwise stated, references to particular years, quarters, months or periods refer to our fiscal years and the associated quarters, months and periods of those fiscal years.

OVERVIEW

Shake Shack serves modern, fun and elevated versions of American classics using only premium ingredients. We are known for our made-to-order 100% Angus beef burgers, crispy chicken, hand-spun milkshakes, house-made lemonades, beer, wine, and more. With our fine-dining roots and a commitment to crafting uplifting experiences, Shake Shack has become a cult-brand and created a new category, fine-casual.

Our mission is to Stand For Something Good in all aspects of our business, including the talented team we hire and train, the premium ingredients making up our menu, our community engagement and the design of our Shacks. Stand For Something Good is a call to action for all of our stakeholders — our team, guests, communities, suppliers and investors — and we actively invite them all to share in this philosophy with us. This commitment drives our integration into the local communities in which we operate and fosters a deep and lasting connection with our guests.

The following definitions apply to these terms as used herein:

"Average weekly sales" is calculated by dividing total Shack sales by the number of operating weeks for all Shacks in operation during the period. For Shacks that are not open for the entire period, fractional adjustments are made to the number of operating weeks open such that it corresponds to the period of associated sales.

"Same-Shack sales" represents Shack sales for the comparable Shack base, which is defined as the number of Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shacks were temporarily closed, the comparative period was also adjusted.

“System-wide sales” is an operating measure and consists of sales from Company-operated Shacks and licensed Shacks. The Company does not recognize the sales from licensed Shacks as revenue. Of these amounts, revenue is limited to licensing revenue based on a percentage of sales from licensed Shacks, as well as certain up-front fees, such as territory fees and opening fees.

Key Operating Metrics

Same-Shack sales for the thirteen weeks ended June 26, 2024 increased 4.0% compared to the same period last year, driven by a 4.8% increase in price mix partially offset by a 0.8% decline in guest traffic. Same-Shack sales for the twenty-six weeks ended June 26, 2024 increased 2.8% compared to the same period last year, driven by a 4.2% increase in price mix partially offset by a 1.4% decline in guest traffic. For the purpose of calculating same-Shack sales for the thirteen and twenty-six weeks ended June 26, 2024, Shack sales for 228 Shacks were included in the comparable Shack base.

Average weekly sales were $77,000 and $75,000, respectively, for the thirteen and twenty-six weeks ended June 26, 2024, which were flat compared to the same periods last year, primarily driven by higher menu prices, partially offset by a decline in guest traffic and menu mix.

System-wide sales for the thirteen weeks ended June 26, 2024 increased 13.5% to $483.7 million compared to the same period last year. System-wide sales for the twenty-six weeks ended June 26, 2024 increased 12.9% to $927.0 million compared to the same period last year.

Digital sales for the thirteen weeks ended June 26, 2024 increased 20.9% to $105.1 million compared to the same period last year. Digital sales for the twenty-six weeks ended June 26, 2024 increased 18.1% to $208.3 million compared to the same

Shake Shack Inc. Form 10-Q | 27

period last year. Digital sales includes orders placed on the Shake Shack app, website and third-party delivery platforms, which represented 34.4% and 35.5%, respectively, of Shack sales during the thirteen and twenty-six weeks ended June 26, 2024.

Development Highlights

During the thirteen weeks ended June 26, 2024, we opened 12 new Company-operated Shacks and 11 new licensed Shacks. There was one permanent licensed Shack closure in the second quarter of 2024.

The following table presents the Shacks opened during the thirteen weeks ended June 26, 2024:

Location	Type	Opening Date
New York, NY — Penn Station	Company-operated	3/28/2024
Dubai, UAE — Mirdif City Centre	Licensed	4/5/2024
Scottsdale, AZ — Salt River	Company-operated	4/10/2024
Kuala Lumpur, Malaysia — The Exchange TRX	Licensed	4/10/2024
Tokyo, Japan — Joule Shibuya	Licensed	4/13/2024
Newington, CT — Newington	Company-operated	4/24/2024
Deerfield, IL — Deerfield	Company-operated	4/25/2024
Foshan, China — Lingnan Tiandi	Licensed	4/29/2024
Costa Mesa, CA — Costa Mesa	Company-operated	5/8/2024
Shanghai, China — Kerry Parkside	Licensed	5/11/2024
Pittsburgh, PA — The Terminal	Company-operated	5/19/2024
Stamford, CT — Stamford	Company-operated	5/22/2024
Wellesley, MA — Wellesley	Company-operated	5/29/2024
Midlothian, VA — Midlothian	Company-operated	5/29/2024
Secaucus, NJ — Secaucus	Company-operated	6/9/2024
London, United Kingdom — St. Pancras Station	Licensed	6/11/2024
Pasay, Philippines — NAIA Terminal 3	Licensed	6/11/2024
Mexico City, Mexico — Interlomas	Licensed	6/12/2024
Toronto, Canada — Yonge and Dundas	Licensed	6/13/2024
Seoul, South Korea — Dogok	Licensed	6/14/2024
Bellevue, WA — Bellevue Square	Company-operated	6/17/2024
Freehold, NJ — Freehold	Company-operated	6/23/2024
Sloatsburg, NY — Ramapo Travel Plaza	Licensed	6/26/2024

As of June 26, 2024, there were 547 Shacks in operation system-wide, of which 311 were Company-operated Shacks and 236 were licensed Shacks.

28 | Shake Shack Inc. Form 10-Q

RESULTS OF OPERATIONS

The following table summarizes our results of operations for the thirteen and twenty-six weeks ended June 26, 2024 and June 28, 2023:

		Thirteen Weeks Ended								Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024				June 28 2023				June 26 2024				June 28 2023
Shack sales		$	305,480	96.5	%	$	261,810	96.3	%	$	586,032	96.5	%	$	506,064	96.4	%
Licensing revenue		11,016		3.5	%	9,995		3.7	%	20,968		3.5	%	19,019		3.6	%
TOTAL REVENUE		316,496		100.0	%	271,805		100.0	%	607,000		100.0	%	525,083		100.0	%
Shack-level operating expenses(1):
	Food and paper costs	85,053		27.8	%	75,800		29.0	%	165,306		28.2	%	147,572		29.2	%
	Labor and related expenses	86,614		28.4	%	75,158		28.7	%	168,123		28.7	%	149,422		29.5	%
	Other operating expenses	43,953		14.4	%	36,109		13.8	%	85,809		14.6	%	71,045		14.0	%
	Occupancy and related expenses	23,226		7.6	%	19,801		7.6	%	45,414		7.7	%	38,384		7.6	%
General and administrative expenses		36,313		11.5	%	31,476		11.6	%	72,257		11.9	%	62,787		12.0	%
Depreciation and amortization expense		25,496		8.1	%	22,252		8.2	%	50,937		8.4	%	43,574		8.3	%
Pre-opening costs		4,014		1.3	%	5,577		2.1	%	6,767		1.1	%	9,134		1.7	%
Impairment and loss on disposal of assets		1,045		0.3	%	884		0.3	%	1,571		0.3	%	1,606		0.3	%
TOTAL EXPENSES		305,714		96.6	%	267,057		98.3	%	596,184		98.2	%	523,524		99.7	%
INCOME FROM OPERATIONS		10,782		3.4	%	4,748		1.7	%	10,816		1.8	%	1,559		0.3	%
Other income, net		3,300		1.0	%	3,227		1.2	%	6,506		1.1	%	6,064		1.2	%
Interest expense		(527)		(0.2)	%	(405)		(0.1)	%	(1,035)		(0.2)	%	(808)		(0.2)	%
INCOME BEFORE INCOME TAXES		13,555		4.3	%	7,570		2.8	%	16,287		2.7	%	6,815		1.3	%
Income tax expense		3,173		1.0	%	347		0.1	%	3,691		0.6	%	1,214		0.2	%
NET INCOME		10,382		3.3	%	7,223		2.7	%	12,596		2.1	%	5,601		1.1	%
Less: Net income attributable to non-controlling interests		714		0.2	%	275		0.1	%	888		0.1	%	187		—	%
NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC.		$	9,668	3.1	%	$	6,948	2.6	%	$	11,708	1.9	%	$	5,414	1.0	%

(1)As a percentage of Shack sales.

Shack Sales

Shack sales represent the aggregate sales of food, beverages and Shake Shack branded merchandise at our Company-operated Shacks and gift card breakage income. Shack sales in any period are directly influenced by the number of operating weeks in such period and the total number of open Shacks.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Shack sales		$	305,480		$	261,810		$	586,032		$	506,064
	Percentage of Total revenue	96.5		%	96.3		%	96.5		%	96.4		%
	Dollar change compared to prior year	$	43,670					$	79,968
	Percentage change compared to prior year	16.7		%				15.8		%

Shack sales for the thirteen weeks ended June 26, 2024 increased 16.7% to $305.5 million versus the same period last year. The increase was primarily due to the opening of 41 new Company-operated Shacks between June 28, 2023 and June 26, 2024, which contributed $32.1 million, as well as increased menu prices, which contributed $18.3 million, partially offset by menu mix, mainly related to strategic investments in marketing.

Shake Shack Inc. Form 10-Q | 29

Shack sales for the twenty-six weeks ended June 26, 2024 increased 15.8% to $586.0 million versus the same period last year. The increase was primarily due to the opening of 41 new Company-operated Shacks between June 28, 2023 and June 26, 2024, which contributed $57.0 million, as well as increased menu prices, which contributed $22.0 million.

Licensing Revenue

Licensing revenue is comprised of license fees and opening fees and territory fees for certain licensed Shacks. License fees are calculated as a percentage of sales and territory fees are payments for the exclusive right to develop Shacks in a specific geographic area.     

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Licensing revenue		$	11,016		$	9,995		$	20,968		$	19,019
	Percentage of Total revenue	3.5		%	3.7		%	3.5		%	3.6		%
	Dollar change compared to prior year	$	1,021					$	1,949
	Percentage change compared to prior year	10.2		%				10.2		%

Licensing revenue for the thirteen weeks ended June 26, 2024 increased 10.2% to $11.0 million versus the same period last year. Licensing revenue for the twenty-six weeks ended June 26, 2024 increased 10.2% to $21.0 million versus the same period last year. The increases in Licensing revenue for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to the opening of 35 net new licensed Shacks between June 28, 2023 and June 26, 2024, which contributed $1.3 million and $2.4 million, respectively, as well as higher sales at existing domestic licensed Shacks, partially offset by a decline in sales in China.

Food and Paper Costs

Food and paper costs include the direct costs associated with food, beverage and packaging of our menu items. The components of Food and paper costs are variable by nature, change with sales volume, impacted by menu mix, channel mix and fluctuations in commodity costs, as well as geographic scale and proximity.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Food and paper costs		$	85,053		$	75,800		$	165,306		$	147,572
	Percentage of Shack sales	27.8		%	29.0		%	28.2		%	29.2		%
	Dollar change compared to prior year	$	9,253					$	17,734
	Percentage change compared to prior year	12.2		%				12.0		%

Food and paper costs for the thirteen weeks ended June 26, 2024 increased 12.2% to $85.1 million versus the same period last year. Food and paper costs for the twenty-six weeks ended June 26, 2024 increased 12.0% to $165.3 million versus the same period last year. The increases for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to the opening of 41 new Company-operated Shacks between June 28, 2023 and June 26, 2024, which contributed approximately $9.4 million and $17.3 million, respectively.

As a percentage of Shack sales, the decreases in Food and paper costs for the thirteen and twenty-six weeks ended June 26, 2024 were primarily driven by menu price increases partially offset by increases in certain commodity costs, mainly beef and increases in marketing promotions.

30 | Shake Shack Inc. Form 10-Q

Labor and Related Expenses

Labor and related expenses include Company-operated Shack-level hourly and management wages, bonuses, payroll taxes, equity-based compensation, workers' compensation expense and medical benefits. As we expect with other variable expense items, labor costs should grow as our Shack sales grow. Factors that influence labor costs include minimum wage and payroll tax legislation, health care costs, size and location of the Shack and the performance of our Company-operated Shacks.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Labor and related expenses		$	86,614		$	75,158		$	168,123		$	149,422
	Percentage of Shack sales	28.4		%	28.7		%	28.7		%	29.5		%
	Dollar change compared to prior year	$	11,456					$	18,701
	Percentage change compared to prior year	15.2		%				12.5		%

Labor and related expenses for the thirteen weeks ended June 26, 2024 increased 15.2% to $86.6 million versus the same period last year. Labor and related expenses for the twenty-six weeks ended June 26, 2024 increased 12.5% to $168.1 million versus the same period last year. The increases for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to the opening of 41 new Company-operated Shacks between June 28, 2023 and June 26, 2024.

As a percentage of Shack sales, the decreases in Labor and related expenses for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to labor efficiencies and sales leverage partially offset by increased wages and incremental expenses from the opening of 41 new Company-operated Shacks between June 28, 2023 and June 26, 2024.

Other Operating Expenses

Other operating expenses consist of delivery commissions, Shack-level marketing expenses, repairs and maintenance, utilities and other operating expenses incidental to operating our Company-operated Shacks, such as non-perishable supplies, credit card fees and property insurance.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Other operating expenses		$	43,953		$	36,109		$	85,809		$	71,045
	Percentage of Shack sales	14.4		%	13.8		%	14.6		%	14.0		%
	Dollar change compared to prior year	$	7,844					$	14,764
	Percentage change compared to prior year	21.7		%				20.8		%

Other operating expenses for the thirteen weeks ended June 26, 2024 increased 21.7% to $44.0 million versus the same period last year. Other operating expenses for the twenty-six weeks ended June 26, 2024 increased 20.8% to $85.8 million versus the same period last year. The increases for the thirteen and twenty-six weeks ended June 26, 2024 were primarily driven by increased transaction costs associated with higher sales and higher facilities costs, mainly professional services and utilities, due to the opening of 41 new Company-operated Shacks between June 28, 2023 and June 26, 2024 as well as increased marketing spend.

As a percentage of Shack sales, the increases in Other operating expenses for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to increases in marketing spend and delivery commissions associated with higher delivery sales.

Shake Shack Inc. Form 10-Q | 31

Occupancy and Related Expenses

Occupancy and related expenses consist of Shack-level occupancy expenses (including rent, common area expenses and certain local taxes), and exclude occupancy expenses associated with unopened Shacks, which are recorded separately in Pre-opening costs.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Occupancy and related expenses		$	23,226		$	19,801		$	45,414		$	38,384
	Percentage of Shack sales	7.6		%	7.6		%	7.7		%	7.6		%
	Dollar change compared to prior year	$	3,425					$	7,030
	Percentage change compared to prior year	17.3		%				18.3		%

Occupancy and related expenses for the thirteen weeks ended June 26, 2024 increased 17.3% to $23.2 million versus the same period last year. Occupancy and related expenses for the twenty-six weeks ended June 26, 2024 increased 18.3% to $45.4 million versus the same period last year. The increases for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to the opening of 41 new Company-operated Shacks between June 28, 2023 and June 26, 2024.

As a percentage of Shack sales, Occupancy and related expenses was flat for the thirteen weeks ended June 26, 2024 primarily driven by higher base rent offset by sales leverage. As a percentage of Shack sales, the increase in Occupancy and related expenses for the twenty-six weeks ended June 26, 2024 was primarily due to higher base rent and variable rent.

General and Administrative Expenses

General and administrative expenses consist of costs associated with corporate and administrative functions that support Shack development and operations, as well as equity-based compensation expense.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
General and administrative expenses		$	36,313		$	31,476		$	72,257		$	62,787
	Percentage of Total revenue	11.5		%	11.6		%	11.9		%	12.0		%
	Dollar change compared to prior year	$	4,837					$	9,470
	Percentage change compared to prior year	15.4		%				15.1		%

General and administrative expenses for the thirteen weeks ended June 26, 2024 increased 15.4% to $36.3 million versus the same period last year. General and administrative expenses for the twenty-six weeks ended June 26, 2024 increased 15.1% to $72.3 million versus the same period last year. The increase in General and administrative expenses for the thirteen weeks ended June 26, 2024 was primarily due to increased investments in marketing as well as increases in wages and other team costs to support our Shack growth. The increase in General and administrative expenses for the twenty-six weeks ended June 26, 2024 was primarily due to the aforementioned items as well as costs related to the prior restatement of prior periods included in the fiscal 2023 Form 10-K and investments in technology initiatives.

As a percentage of Total revenue, the decreases in General and administrative expenses for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to sales leverage partially offset by the aforementioned items.

32 | Shake Shack Inc. Form 10-Q

Depreciation and Amortization Expense

Depreciation and amortization expense primarily consists of the depreciation of fixed assets, including leasehold improvements and equipment.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Depreciation and amortization expense		$	25,496		$	22,252		$	50,937		$	43,574
	Percentage of Total revenue	8.1		%	8.2		%	8.4		%	8.3		%
	Dollar change compared to prior year	$	3,244					$	7,363
	Percentage change compared to prior year	14.6		%				16.9		%

Depreciation and amortization expense for the thirteen weeks ended June 26, 2024 increased 14.6% to $25.5 million versus the same period last year. Depreciation and amortization expense for the twenty-six weeks ended June 26, 2024 increased 16.9% to $50.9 million versus the same period last year. The increases in Depreciation and amortization expense for the thirteen and twenty-six weeks ended June 26, 2024 were predominantly due to incremental depreciation of capital expenditures related to the opening of 41 new Company-operated Shacks and technology projects placed into service between June 28, 2023 and June 26, 2024.

Pre-Opening Costs

Pre-opening costs consist primarily of occupancy, manager and team member wages, cookware, travel and lodging costs for our opening training team and other supporting team members, marketing expenses, legal fees and inventory costs incurred prior to the opening of a Shack. All such costs incurred prior to the opening of a Company-operated Shack are expensed in the period in which the expense was incurred. Pre-opening costs can fluctuate significantly from period to period, based on the number and timing of Company-operated Shack openings and the specific pre-opening costs incurred for each Company-operated Shack. Additionally, Company-operated Shack openings in new geographic markets may initially experience higher pre-opening costs than our established geographic markets, such as the New York City metropolitan area, where we have greater economies of scale and incur lower travel and lodging costs for our training team.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Pre-opening costs		$	4,014		$	5,577		$	6,767		$	9,134
	Percentage of Total revenue	1.3		%	2.1		%	1.1		%	1.7		%
	Dollar change compared to prior year	$	(1,563)					$	(2,367)
	Percentage change compared to prior year	(28.0)		%				(25.9)		%

Pre-opening costs for the thirteen weeks ended June 26, 2024 decreased 28.0% to $4.0 million versus the same period last year. Pre-opening costs for the twenty-six weeks ended June 26, 2024 decreased 25.9% to $6.8 million versus the same period last year. The decreases in Pre-opening costs for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to reductions in wages and team costs as we standardize the training process for unopened Shacks.

Impairment and Loss on Disposal of Assets

Impairment and loss on disposal of assets primarily consists of impairment charges related to our long-lived assets, which includes property and equipment, as well as operating and finance lease assets. Additionally, Impairment and loss on disposal of assets includes the net book value of assets that have been retired which primarily consists of furniture, equipment and fixtures that were replaced in the normal course of business.

Shake Shack Inc. Form 10-Q | 33

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Impairment and loss on disposal of assets		$	1,045		$	884		$	1,571		$	1,606
	Percentage of Total revenue	0.3		%	0.3		%	0.3		%	0.3		%
	Dollar change compared to prior year	$	161					$	(35)
	Percentage change compared to prior year	18.2		%				(2.2)		%

Impairment and loss on disposal of assets for the thirteen weeks ended June 26, 2024 increased 18.2% to $1.0 million versus the same period last year. The increase was primarily due to an increase in abandoned construction projects, partially offset by decreases in costs of disposed assets at our Shacks and home office.

Impairment and loss on disposal of assets for the twenty-six weeks ended June 26, 2024 decreased 2.2% to $1.6 million versus the same period last year. The decrease was primarily due to decreases in costs of disposed assets at our home office and at our Shacks, partially offset by an increase in the cost of abandoned projects.

Other Income, Net

Other income, net consists primarily of interest income, adjustments to liabilities under the Tax Receivable Agreement, dividend income and net unrealized and realized gains and losses from marketable securities.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Other income, net		$	3,300		$	3,227		$	6,506		$	6,064
	Percentage of Total revenue	1.0		%	1.2		%	1.1		%	1.2		%
	Dollar change compared to prior year	$	73					$	442
	Percentage change compared to prior year	2.3		%				7.3		%

Other income, net for the thirteen weeks ended June 26, 2024 increased to $3.3 million from $3.2 million. Other income, net for the twenty-six weeks ended June 26, 2024 increased to $6.5 million from $6.1 million. The increases in Other income, net for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to an increase in interest income from investments.

Interest Expense

Interest expense generally consists of interest on the current portion of our liabilities under the Tax Receivable Agreement, imputed interest related to our financing equipment leases, amortization of deferred financing costs, interest and fees on our Revolving Credit Facility and amortization of debt issuance costs.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Interest expense		$	(527)		$	(405)		$	(1,035)		$	(808)
	Percentage of Total revenue	(0.2)		%	(0.1)		%	(0.2)		%	(0.2)		%
	Dollar change compared to prior year	$	(122)					$	(227)
	Percentage change compared to prior year	30.1		%				28.1		%

Interest expense for the thirteen weeks ended June 26, 2024 increased 30.1% to $0.5 million versus the same period last year. Interest expense for the twenty-six weeks ended June 26, 2024 increased 28.1% to $1.0 million versus the same period last year. The increases in Interest expense for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to increased finance lease charges from the opening of 41 new Company-operated Shacks between June 28, 2023 and June 26, 2024.

34 | Shake Shack Inc. Form 10-Q

Income Tax Expense

We are the sole managing member of SSE Holdings and, as a result, consolidate the financial results of SSE Holdings. SSE Holdings is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, SSE Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by SSE Holdings is passed through to and included in the taxable income or loss of its members, including us, on a pro rata basis. We are subject to U.S. federal income taxes, in addition to state and local income taxes with respect to our allocable share of any taxable income or loss of SSE Holdings, as well as any stand-alone income or loss generated by us. We are also subject to withholding taxes in foreign jurisdictions.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Income tax expense		$	3,173		$	347		$	3,691		$	1,214
	Percentage of Total revenue	1.0		%	0.1		%	0.6		%	0.2		%
	Dollar change compared to prior year	$	2,826					$	2,477
	Percentage change compared to prior year	814.4		%				204.0		%

Our effective income tax rates for the thirteen weeks ended June 26, 2024 and June 28, 2023 were 23.4% and 4.6%, respectively. Our effective income tax rates for the twenty-six weeks ended June 26, 2024 and June 28, 2023 were 22.7% and 17.8%, respectively. The increases were primarily driven by increases in pre-tax income compared to the same periods last year. The Company's ownership interest in SSE Holdings is directly related to its share of the taxable income of SSE Holdings. Our weighted average ownership interest in SSE Holdings was 93.7% and 93.3%, respectively, for the thirteen weeks ended June 26, 2024 and June 28, 2023, and 93.5% and 93.3%, respectively, for the twenty-six weeks ended June 26, 2024 and June 28, 2023. These increases in the Company's ownership interest in SSE Holdings LLC increased its share of the taxable income of SSE Holdings.

Net Income Attributable to Non-Controlling Interests

We are the sole managing member of SSE Holdings and have the sole voting power in, and control the management of, SSE Holdings. Accordingly, we consolidate the financial results of SSE Holdings and report a non-controlling interest on our Condensed Consolidated Statements of Income, representing the portion of net income attributable to the other members of SSE Holdings. The Third Amended and Restated Limited Liability Company Agreement of SSE Holdings 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, we will receive a corresponding number of LLC Interests, increasing our total ownership interest in SSE Holdings. The weighted average ownership percentages for the applicable reporting periods are used to attribute net income and other comprehensive income to Shake Shack Inc. and the non-controlling interest holders.

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Net income attributable to non-controlling interests		$	714		$	275		$	888		$	187
	Percentage of Total revenue	0.2		%	0.1		%	0.1		%	—		%

Net income attributable to non-controlling interests for the thirteen weeks ended June 26, 2024 increased to $0.7 million from $0.3 million in the same period last year. Net income attributable to non-controlling interests for the twenty-six weeks ended June 26, 2024 increased to $0.9 million from $0.2 million in the same period last year. The increases in Net income attributable to non-controlling interests for the thirteen and twenty-six weeks ended June 26, 2024 were primarily due to increases in net results compared to the same periods last year, partially offset by a decrease in the non-controlling interest holders' weighted average ownership, which was 6.3% and 6.5%, respectively, for the thirteen and twenty-six weeks ended June 26, 2024 and 6.7% for the thirteen and twenty-six weeks ended June 28, 2023.

Shake Shack Inc. Form 10-Q | 35

NON-GAAP FINANCIAL MEASURES

To supplement the Condensed Consolidated Financial Statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we use the following non-GAAP financial measures: Restaurant-level profit, Restaurant-level profit margin, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share (collectively the "non-GAAP financial measures").

Restaurant-Level Profit

Restaurant-level profit, formerly referred to as Shack-level operating profit, is defined as Shack sales less Shack-level operating expenses which include Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses.

How This Measure Is Useful

When used in conjunction with GAAP financial measures, Restaurant-level profit and Restaurant-level profit margin are supplemental measures of operating performance that we believe are useful measures to evaluate the performance and profitability of our Shacks. Additionally, Restaurant-level profit and Restaurant-level profit margin are key metrics used internally by our management to develop internal budgets and forecasts, as well as assess the performance of our Shacks relative to budget and against prior periods. It is also used to evaluate team member compensation as it serves as a metric in certain of our performance-based team member bonus arrangements. We believe the presentation of Restaurant-level profit and Restaurant-level profit margin provides investors with a supplemental view of our operating performance that can provide meaningful insights to the underlying operating performance of our Shacks, as these measures depict the operating results that are directly impacted by our Shacks and exclude items that may not be indicative of, or are unrelated to, the ongoing operations of our Shacks. It may also assist investors to evaluate our performance relative to peers of various sizes and maturities and provides greater transparency with respect to how our management evaluates our business, as well as our financial and operational decision-making.

Limitations of the Usefulness of this Measure

Restaurant-level profit and Restaurant-level profit margin may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of Restaurant-level profit and Restaurant-level profit margin is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Restaurant-level profit excludes certain costs, such as General and administrative expenses and Pre-opening costs, which are considered normal, recurring cash operating expenses and are essential to support the operation and development of our Shacks. Therefore, this measure may not provide a complete understanding of the operating results of our Company as a whole and Restaurant-level profit and Restaurant-level profit margin should be reviewed in conjunction with our GAAP financial results. A reconciliation of Restaurant-level profit to Income from operations, the most directly comparable GAAP financial measure, is as follows.

36 | Shake Shack Inc. Form 10-Q

		Thirteen Weeks Ended						Twenty-Six Weeks Ended
(dollar amounts in thousands)		June 26 2024			June 28 2023			June 26 2024			June 28 2023
Income from operations		$	10,782		$	4,748		$	10,816		$	1,559
Less:
	Licensing revenue	11,016			9,995			20,968			19,019
Add:
	General and administrative expenses	36,313			31,476			72,257			62,787
	Depreciation and amortization expense	25,496			22,252			50,937			43,574
	Pre-opening costs	4,014			5,577			6,767			9,134
	Impairment and loss on disposal of assets	1,045			884			1,571			1,606
Adjustment:
	Employee benefit charges(1)	445			—			445			—
Restaurant-level profit		$	67,079		$	54,942		$	121,825		$	99,641
Total revenue		$	316,496		$	271,805		$	607,000		$	525,083
Less: Licensing revenue		11,016			9,995			20,968			19,019
Shack sales		$	305,480		$	261,810		$	586,032		$	506,064
Restaurant-level profit margin(2)		22.0		%	21.0		%	20.8		%	19.7		%

(1)Expenses related to California healthcare charges for fiscal 2020 through 2023 which do not represent fiscal 2024 Labor and related expenses.

(2)As a percentage of Shack sales.

EBITDA and Adjusted EBITDA

EBITDA is defined as Net income before Interest expense (net of interest income), Income tax expense and Depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA (as defined above) excluding equity-based compensation expense, Impairment and loss on disposal of assets, amortization of cloud-based software implementation costs, as well as certain non-recurring items that we do not believe directly reflect our core operations and may not be indicative of our recurring business operations.

How These Measures Are Useful

When used in conjunction with GAAP financial measures, EBITDA and adjusted EBITDA are supplemental measures of operating performance that we believe are useful measures to facilitate comparisons to historical performance and competitors' operating results. Adjusted EBITDA is a key metric used internally by our management to develop internal budgets and forecasts and also serves as a metric in our performance-based equity incentive programs and certain of our bonus arrangements. We believe presentation of EBITDA and adjusted EBITDA provides investors with a supplemental view of our operating performance that facilitates analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operating performance.

Limitations of the Usefulness of These Measures

EBITDA and adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of EBITDA and adjusted EBITDA is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA and adjusted EBITDA exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of our performance and should be reviewed in conjunction with our GAAP financial measures. A reconciliation of EBITDA and adjusted EBITDA to Net income, the most directly comparable GAAP measure, is as follows.

Shake Shack Inc. Form 10-Q | 37

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
(dollar amounts in thousands)	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Net income	$	10,382	$	7,223	$	12,596	$	5,601
Depreciation and amortization expense	25,496		22,252		50,937		43,574
Interest expense, net	395		278		368		681
Income tax expense	3,173		347		3,691		1,214
EBITDA	39,446		30,100		67,592		51,070
Equity-based compensation	3,739		3,932		7,381		7,734
Amortization of cloud-based software implementation costs	530		441		1,048		880
Impairment and loss on disposal of assets	1,045		884		1,571		1,606
Restatement costs(1)	208		—		1,599		—
CEO transition costs	109		—		588		—
Employee benefit charges(2)	445		—		445		—
Legal settlements(3)	—		—		—		1,004
Other(4)	1,687		1,693		2,870		2,321
Adjusted EBITDA	$	47,209	$	37,050	$	83,094	$	64,615
Adjusted EBITDA margin(5)	14.9 %		13.6 %		13.7 %		12.3 %

(1)Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K.

(2)Expenses related to California healthcare charges for fiscal 2020 through 2023 which do not represent fiscal 2024 Labor and related expenses.

(3)Expenses incurred to establish accruals related to the settlements of legal matters.

(4)Expenses incurred for professional fees related to non-recurring matters.

(5)Calculated as a percentage of Total revenue, which was $316.5 million and $607.0 million for the thirteen and twenty-six weeks ended June 26, 2024, respectively, and $271.8 million and $525.1 million for the thirteen and twenty-six weeks ended June 28, 2023, respectively.

Adjusted Pro Forma Net Income and Adjusted Pro Forma Earnings Per Fully Exchanged and Diluted Share

Adjusted pro forma net income represents Net income attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Class A common stock, adjusted for certain non-recurring items that we do not believe are directly related to our core operations and may not be indicative of our recurring business operations. Adjusted pro forma earnings per fully exchanged and diluted share is calculated by dividing adjusted pro forma net income by the weighted average shares of Class A common stock outstanding, assuming the full exchange of all outstanding LLC Interests, after giving effect to the dilutive effect of outstanding equity-based awards.

How These Measures Are Useful

When used in conjunction with GAAP financial measures, adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share are supplemental measures of operating performance that we believe are useful measures to evaluate our performance period over period and relative to our competitors. By assuming the full exchange of all outstanding LLC Interests, we believe these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in Net income attributable to Shake Shack Inc. driven by increases in our ownership of SSE Holdings, which are unrelated to our operating performance, and excludes items that are non-recurring or may not be indicative of our ongoing operating performance.

Limitations of the Usefulness of These Measures

Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share should not be considered alternatives to Net income and earnings per share, as determined under GAAP. While these measures are useful in evaluating our performance, they do not account for the earnings attributable to the non-controlling interest holders and therefore do not provide a complete understanding of the Net income attributable to Shake Shack Inc. Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share should be evaluated in conjunction with our GAAP financial results. A

38 | Shake Shack Inc. Form 10-Q

reconciliation of adjusted pro forma net income to Net income attributable to Shake Shack Inc., the most directly comparable GAAP measure, and the computation of adjusted pro forma earnings per fully exchanged and diluted share are set forth below.

			Thirteen Weeks Ended				Twenty-Six Weeks Ended
(in thousands, except per share amounts)			June 26 2024		June 28 2023		June 26 2024		June 28 2023
Numerator:
	Net income attributable to Shake Shack Inc.		$	9,668	$	6,948	$	11,708	$	5,414
	Adjustments:
		Reallocation of Net income attributable to non-controlling interests from the assumed exchange of LLC Interests(1)	714		275		888		187
		Restatement costs(2)	208		—		1,599		—
		CEO transition costs	109		—		588		—
		Employee benefit charges(3)	445		—		445		—
		Legal settlements	—		—		—		1,004
		Other(4)	1,687		1,693		2,870		2,321
		Tax impact of above adjustments(5)	(685)		(1,036)		(329)		(1,336)
Adjusted pro forma net income			$	12,146	$	7,880	$	17,769	$	7,590
Denominator:
	Weighted average shares of Class A common stock outstanding—diluted		41,480		43,886		41,369		43,837
	Adjustments:
		Assumed exchange of LLC Interests for shares of Class A common stock(1)	2,693		—		2,761		—
	Adjusted pro forma fully exchanged weighted average shares of Class A common stock outstanding—diluted		44,173		43,886		44,130		43,837
Adjusted pro forma earnings per fully exchanged share—diluted			$	0.27	$	0.18	$	0.40	$	0.17

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
		June 26 2024		June 28 2023		June 26 2024		June 28 2023
Earnings per share of Class A common stock—diluted		$	0.23	$	0.16	$	0.28	$	0.13
	Assumed exchange of LLC Interests for shares of Class A common stock(1)	0.01		—		0.01		—
	Non-GAAP adjustments(6)	0.03		0.02		0.11		0.04
Adjusted pro forma earnings per fully exchanged share—diluted		$	0.27	$	0.18	$	0.40	$	0.17

(1)Assumes the exchange of all outstanding LLC Interests for shares of Class A common stock, resulting in the elimination of the non-controlling interest and recognition of the net income attributable to non-controlling interests. Refer to Note 11, Earnings (Loss) per Share, in the accompanying Condensed Consolidated Financial Statements, for additional information.

(2)Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K.

(3)Expenses related to California healthcare charges for fiscal 2020 through 2023 which do not represent fiscal 2024 Labor and related expenses.

(4)Expenses incurred for professional fees related to non-recurring matters.

(5)Represents the tax effect of the aforementioned adjustments and pro forma adjustments to reflect corporate income taxes at assumed effective tax rates of 24.1% and 18.4% for the thirteen and twenty-six weeks ended June 26, 2024, respectively, and 14.9% and 25.1% for the thirteen and twenty-six weeks ended June 28, 2023, respectively. Amounts include provisions for U.S. federal income taxes, certain LLC entity-level taxes and foreign withholding taxes, assuming the highest statutory rates apportioned to each applicable state, local and foreign jurisdiction.

(6)Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation of Adjusted pro forma net income above, for additional information.

Shake Shack Inc. Form 10-Q | 39

LIQUIDITY AND CAPITAL RESOURCES

Sources and Uses of Cash

Our primary sources of liquidity are cash from operations, cash and cash equivalents on hand, short-term investments and availability under our Revolving Credit Facility. As of June 26, 2024, we maintained a Cash and cash equivalents balance of $301.8 million and a short-term investments balance of $2.6 million in Marketable securities. In March 2021, we issued 0% Convertible Senior Notes (“Convertible Notes”), and received $243.8 million of proceeds, net of discounts. Refer to Note 6, Debt, in the accompanying Condensed Consolidated Financial Statements, for additional information.

On June 6, 2024, we filed a Registration Statement on Form S-3 with the SEC which permits us to issue a combination of securities described in the prospectus in one or more offerings from time to time. To date, we have not experienced difficulty accessing the capital markets; however, future volatility in the capital markets may affect our ability to access those markets or increase the costs associated with issuing debt or equity instruments.

Our primary requirements for liquidity are to fund our working capital needs, operating and finance lease obligations, capital expenditures and general corporate needs. Our requirements for working capital are generally not significant because our guests pay for their food and beverage purchases in cash or on debit or credit cards at the time of the sale and we are able to sell many of our inventory items before payment is due to the supplier of such items. Our ongoing capital expenditures are principally related to opening new Shacks, existing Shack capital investments (both for remodels and maintenance), as well as investments in our corporate technology infrastructure to support our home office, Shake Shack locations, and digital strategy.

In addition, we are obligated to make payments to certain members of SSE Holdings under the Tax Receivable Agreement. As of June 26, 2024, such obligations totaled $246.9 million. Amounts payable under the Tax Receivable Agreement are contingent upon, among other things, (i) generation of future taxable income over the term of the Tax Receivable Agreement and (ii) future changes in tax laws. If we do not generate sufficient taxable income in the aggregate over the term of the Tax Receivable Agreement to utilize the tax benefits, then we would not be required to make the related payments under the Tax Receivable Agreement. Although the amount of any payments that must be made under the Tax Receivable Agreement may be significant, the timing of these payments will vary and will generally be limited to one payment per member per year. The amount of such payments are also limited to the extent we utilize the related deferred tax assets. The payments that we are required to make will generally reduce the amount of overall cash flow that might have otherwise been available to us or to SSE Holdings, but we expect the cash tax savings we will realize from the utilization of the related deferred tax assets to fund the required payments.

We believe our existing cash and cash equivalents balances and cash from operations will be sufficient to fund our operating and finance lease obligations, capital expenditures, Tax Receivable Agreement obligations and working capital needs for at least the next 12 months.

Summary of Cash Flows

The following table presents a summary of our cash flows from operating, investing and financing activities.

	Twenty-Six Weeks Ended
(in thousands)	June 26 2024		June 28 2023
Net cash provided by operating activities	$	84,210	$	62,191
Net cash provided by (used in) investing activities	428		(85,415)
Net cash used in financing activities	(7,452)		(3,596)
Effect of exchange rate changes on cash and cash equivalents	(1)		(4)
Net increase (decrease) in Cash and cash equivalents	77,185		(26,824)
Cash and cash equivalents at beginning of period	224,653		230,521
Cash and cash equivalents at end of period	$	301,838	$	203,697

40 | Shake Shack Inc. Form 10-Q

Operating Activities

For the twenty-six weeks ended June 26, 2024, net cash provided by operating activities was $84.2 million compared to $62.2 million for the twenty-six weeks ended June 28, 2023, an increase of $22.0 million. The increase was primarily driven by a $17.3 million improvement in net results after excluding non-cash charges as well as changes in working capital of $4.7 million. The changes in working capital included an increase in liabilities related to marketing promotions and a change in the timing and payments related to accruals, partially offset by an increase in payments on lease liabilities due to the opening of 41 new Company-operated Shacks between June 28, 2023 and June 26, 2024 and higher base rent.

Investing Activities

For the twenty-six weeks ended June 26, 2024, net cash provided by investing activities was $0.4 million compared to net cash used in investing activities of $85.4 million for the twenty-six weeks ended June 28, 2023, an increase of $85.8 million. The increase was primarily due to a net increase in marketable securities activity as a result of maturities of held-to-maturity marketable securities in the current year of $66.4 million, partially offset by the purchase of held-to-maturity marketable securities of $91.4 million and the sale of equity securities of $81.5 million in the prior year.

Financing Activities

For the twenty-six weeks ended June 26, 2024, net cash used in financing activities was $7.5 million compared to $3.6 million for the twenty-six weeks ended June 28, 2023, an increase of $3.9 million. This increase was primarily due to an increase in withholding taxes related to net settled equity awards.

Convertible Notes

In March 2021, we issued $250.0 million aggregate principal amount of 0% Convertible Senior Notes due 2028 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. The Convertible Notes will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in certain circumstances. Upon conversion, we pay or deliver, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at our election. Refer to Note 6, Debt, in the accompanying Condensed Consolidated Financial Statements, for additional information.

Revolving Credit Facility

In August 2019, we entered into a Revolving Credit Facility, which matures in March 2026 and permits borrowings up to $50.0 million, with the ability to increase available borrowings up to an additional $100.0 million, subject to satisfaction of certain conditions. The Revolving Credit Facility also permits the issuance of letters of credit upon our request of up to $15.0 million.

In June 2023, the Company entered into the fourth amendment to the Revolving Credit Facility ("Fourth Amendment"), which, among other things, modified the benchmark interest rate to either: (i) the base rate plus applicable margin ranging from 0.0% to 1.5% or (ii) the Secured Overnight Financing Rate (“SOFR”) plus applicable margin ranging from 1.0% to 2.5%, in each case depending on the net lease adjusted leverage ratio. As of June 26, 2024 and December 27, 2023, no amounts were outstanding under the Revolving Credit Facility.

The obligations under the Revolving Credit Facility are secured by a first-priority security interest in substantially all of the assets of SSE Holdings and the guarantors. The obligations under the Revolving Credit Facility are guaranteed by each of SSE Holdings' direct and indirect subsidiaries, with certain exceptions.

The Revolving Credit Facility requires us to comply with maximum net lease adjusted leverage and minimum fixed charge coverage ratios, as well as other customary affirmative and negative covenants. As of June 26, 2024, we were in compliance with all covenants.

Contractual Obligations

Material contractual obligations arising in the normal course of business primarily consist of operating and finance lease obligations, long-term debt, liabilities under the Tax Receivable Agreement and purchase obligations. The timing and nature of these commitments are expected to have an impact on our liquidity and capital requirements in future periods. Refer to Note 6, Debt and Note 7, Leases, in the accompanying Condensed Consolidated Financial Statements included in Part I, Item 1 for additional information relating to our long-term debt and operating and financing leases.

Shake Shack Inc. Form 10-Q | 41

Liabilities under the Tax Receivable Agreement include amounts to be paid to the non-controlling interest holders, assuming we will have sufficient taxable income over the term of the Tax Receivable Agreement to utilize the related tax benefits. Refer to Note 10, Income Taxes, in the accompanying Condensed Consolidated Financial Statements included in Part I, Item 1, for additional information relating to our Tax Receivable Agreement and related liabilities.

Purchase obligations include all legally binding contracts, including commitments for the purchase, construction or remodeling of real estate and facilities, firm minimum commitments for inventory purchases, equipment purchases, marketing-related contracts, software acquisition/license commitments and service contracts. The majority of our purchase obligations are due within the next 12 months.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our discussion and analysis of our consolidated financial condition and results of operations is based upon the accompanying Condensed Consolidated Financial Statements and notes thereto, which have been prepared in accordance with GAAP. The preparation of the Condensed Consolidated Financial Statements requires us to make estimates, judgments and assumptions, which we believe to be reasonable, based on the information available. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Variances in the estimates or assumptions used to actual experience could yield materially different accounting results. On an ongoing basis, we evaluate the continued appropriateness of our accounting policies and resulting estimates to make adjustments we consider appropriate under the facts and circumstances. There have been no significant changes to our critical accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 27, 2023.

Recently Issued Accounting Pronouncements

Refer to Note 2, Summary of Significant Accounting Policies under Part I, Item 1 of this Form 10-Q.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes to our exposure to market risks as described in Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended December 27, 2023.

Item 4. Controls and Procedures.

DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the the Securities Exchange Act of 1934 (the "Exchange Act")) as of the end of the period covered by this report. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Based upon the evaluation of our disclosure controls and procedures as of June 26, 2024, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective due to the existence of the material weakness in our internal control over financial reporting identified in fiscal 2023, as described below.

42 | Shake Shack Inc. Form 10-Q

PREVIOUSLY REPORTED MATERIAL WEAKNESS

As previously disclosed in Item 9A. “Controls and Procedures” on Form 10-K for the year ended December 27, 2023, management identified a material weakness in our internal control over financial reporting related to the calculation of state deferred taxes and the related income tax expense (benefit). Specifically, the internal controls in place with respect to the calculation of state deferred taxes and the related income tax expense (benefit) were not designed appropriately. The material weakness existed as of December 27, 2023 and prior periods.

Management identified and reported this weakness to both our audit committee and Ernst & Young LLP, our independent registered public accounting firm, immediately upon identification. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues have been detected. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under potential future conditions, regardless of how remote.

REMEDIATION STATUS OF MATERIAL WEAKNESS

We are designing and implementing measures to remediate the material weakness noted above and to enhance our internal control over financial reporting. As previously disclosed, we have established a Steering Committee with representatives from key departments within our Finance organization as well as representatives from IT and Securities Counsel and we have continued our remediation activities. We have hired a Head of Tax with over 20 years of tax leadership experience including working with Up-C structures, enhancing controls, processes, and tax technology. Additionally, we are currently supplementing our tax resources through the use of third-party tax consultants and intend to utilize the third-party tax consultants, under the supervision of management, throughout the remediation process. In addition, we are in the process of developing enhanced management review control procedures over the calculation of state deferred taxes and the related income tax expense (benefit). The new Head of Tax has completed an assessment of the tax function and has developed a strategy to work with third-party tax consultants to enhance our tax technology and transformation which we believe will strengthen our controls.

The actions that we are taking are subject to ongoing senior management review, as well as oversight of the audit committee of our board of directors. The material weakness cannot be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We will continue to monitor the design and effectiveness of these and other processes, procedures and controls and make any further changes management deems appropriate.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

Except as described above, there were no changes to our internal control over financial reporting that occurred during the quarter ended June 26, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Shake Shack Inc. Form 10-Q | 43

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

The information required by this Item is incorporated by reference to Part I, Item 1, Note 13, Commitments and Contingencies.

Item 1A. Risk Factors.

There have been no material changes to the risk factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 27, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 5. Other Information.

(a) On August 2, 2024 the Company entered into amendments to the Employment Agreements for each of Robert Lynch and Stephanie Sentell, dated March 18, 2024 and June 20, 2024, respectively, copies of which are attached to this Quarterly Report on Form 10-Q as Exhibits 10.2 and 10.4. The amendments correct the maximum bonus opportunity payable to each of Mr. Lynch and Ms. Sentell, from two times their annual base salary to two times their target bonus opportunity, to reflect the previously agreed terms between the Company and the parties.

(b) Rule 10b5-1 Trading Plans

No officer or director adopted, terminated, or modified a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

44 | Shake Shack Inc. Form 10-Q

Item 6. Exhibits.

Exhibit Number		Incorporated by Reference			Filed Herewith
	Exhibit Description	Form	Exhibit	Filing Date
3.1	Amended and Restated Certificate of Incorporation of Shake Shack Inc., effective February 4, 2015	8-K	3.1	2/10/2015
3.2	Second Amended and Restated Bylaws of Shack Shake Inc., dated October 1, 2019	8-K	3.1	10/4/2019
4.1	Form of Class A Common Stock Certificate	S-1/A	4.1	1/28/2015
10.1	Employment Agreement, dated March 18, 2024, effective May 20, 2024, by and among Robert Lynch, Shake Shack Inc., SSE Holdings, LLC, and Shake Shack Enterprises, LLC	8-K	10.1	3/21/2024
10.2	Amendment No. 1, made August 2, 2024, to the Employment Agreement, dated March 18, 2024, effective May 20, 2024, by and among Robert Lynch, Shake Shack Inc., SSE Holdings, LLC, and Shake Shack Enterprises, LLC				*
10.3	Employment Agreement, dated June 20, 2024, effective July 1, 2024, by and among Stephanie Sentell, Shake Shack Inc., SSE Holdings, LLC, and Shake Shack Enterprises, LLC	8-K	10.1	6/21/2024
10.4	Amendment No. 1, made August 2, 2024, to the Employment Agreement, dated June 20, 2024, effective July 1, 2024, by and among Stephanie Sentell, Shake Shack Inc., SSE Holdings, LLC, and Shake Shack Enterprises, LLC				*
10.5	Shake Shack Inc. Amended and Restated 2025 Incentive Award Plan	8-K	10.1	6/13/2024
31.1	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				*
31.2	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				*
32	Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002				#
101.INS	XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document				*
101.SCH	XBRL Taxonomy Extension Schema Document				*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document				*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document				*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document				*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document				*
104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document				*

#    Furnished herewith.

Shake Shack Inc. Form 10-Q | 45

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Shake Shack Inc.
	(Registrant)
Date: August 2, 2024	By:	/s/ Robert Lynch
		Robert Lynch
		Chief Executive Officer (Principal Executive Officer and Duly Authorized Officer)
Date: August 2, 2024	By:	/s/ Katherine I. Fogertey
		Katherine I. Fogertey
		Chief Financial Officer (Principal Financial Officer and Duly Authorized Officer)

46 | Shake Shack Inc. Form 10-Q

EX-10.2

First Amendment to Employment Agreement

This First Amendment to Employment Agreement (the “Amendment”), is made and entered into on August 2, 2024 (the “Effective Date”), by and between Rob Lynch (“Executive”), on the one hand, and each of Shake Shack Inc, a corporation organized under the laws of the State of Delaware (“Pubco”), SSE Holdings, LLC, a limited liability company organized under the laws of the State of Delaware (“Partnership”), and Shake Shack Enterprises, LLC, a limited liability company organized under the laws of the State of New York, on the other hand (“Enterprises” and, together with Pubco and Partnership, collectively, the “Company”).

RECITALS

WHEREAS, Executive and Company are parties to an Employment Agreement, dated as of March 18, 2024, but effective as of May 20, 2024 (the “Employment Agreement”);

WHEREAS, pursuant to Section 13 of the Employment Agreement, the Employment Agreement may not be amended or modified except by a written agreement executed by the parties thereto; and

WHEREAS, the parties now desire to amend the Employment Agreement to reflect the previously agreed terms between the parties as provided herein.

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, including the respective covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree, effective as of the Effective Date, as follows:

1.Defined Terms. All capitalized terms used herein that are not otherwise defined herein shall have the meanings ascribed to such terms in the Employment Agreement unless the context clearly indicates to the contrary.

2.Amendment.

(a)Section 3(b) of the Employment Agreement is hereby amended and restated in its entirety as follows (with emphasis on the amended provisions):

“(b)     Bonuses.

(i)During the portion of the Term beginning after the conclusion of Fiscal Year 2024, if any, Executive shall be eligible to receive an annual bonus, semi-annual bonus or such other periodic bonus as determined by the Board (or the Compensation Committee thereof), in each case based on an annualized target bonus opportunity of One Hundred Fifty Percent (150%) of the Annual Base Salary (the “Target Annual Bonus”), which shall be payable based upon the attainment of Company performance goals established by the Board (or the Compensation Committee thereof), with the opportunity to make up to Two Hundred Percent (200%), on an annualized basis, of the Target Annual Bonus, which shall be payable if the Company exceeds such performance goals. Each such bonus shall be payable on, or at such date as is determined by the Board within one hundred twenty (120) days

following the last day of the Fiscal Month, Fiscal Quarter or Fiscal Year, as applicable, with respect to which such bonus relates.

(ii)Notwithstanding anything in Section 3(b)(i) to the contrary, for Fiscal Year 2024, Executive shall be eligible to receive a pro rata amount of an annual performance-based cash bonus (the “2024 Annual Bonus”) based on a target bonus opportunity of One Hundred Fifty Percent (150%) of the Annual Base Salary, which shall be payable based upon the attainment of Company performance goals established for Fiscal Year 2024 by the Compensation Committee solely for purposes of determining the 2024 Annual Bonus, with the opportunity to make up to Two Hundred Percent (200%) of the Target Annual Bonus, which shall be payable if the Company exceeds such performance goals, with such pro rata amount being equal to the target amount of the 2024 Annual Bonus as adjusted based on the attainment of such Company performance goals established for Fiscal Year 2024 as determined by the Compensation Committee multiplied by a fraction, the numerator of which is the number of full Fiscal Months in Fiscal Year 2024 on or following the Effective Date and the denominator of which is the number of full Fiscal Months in Fiscal Year 2024. The performance criteria and goals for the 2024 Annual Bonus have been established by the Compensation Committee and will be communicated to Executive no later than the Effective Date. The 2024 Annual Bonus shall be payable on, or at such date as is determined by the Board within one hundred twenty (120) days following, the last day of Fiscal Year 2024.

(iii)Except as provided in Section 5, notwithstanding any other provision of this Section 3(b), no bonus shall be payable under this Section 3(b) unless Executive remains continuously employed with the Company during the period beginning on the Effective Date and ending on the applicable bonus payment date.”

3.Effective Date and Incorporation.The operative provisions of this Amendment shall be effective as of the Effective Date, and shall be deemed to be a part of the Employment Agreement as if originally provided therein. Except as provided herein, all other terms of the Employment Agreement shall continue without modification and remain in full force and effect.

2

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Employment Agreement on the date and year first above written, effective as of the Effective Date.

PUBCO
SHAKE SHACK INC.
By:	/s/ Ronald Palmese Jr.
Name: Ronald Palmese Jr.
Title: Chief Legal Officer
PARTNERSHIP
SSE HOLDINGS, LLC
By:	/s/ Ronald Palmese Jr.
Name: Ronald Palmese Jr.
Title: Chief Legal Officer
ENTERPRISES
SHAKE SHACK ENTERPRISES, LLC
By:	/s/ Ronald Palmese Jr.
Name: Ronald Palmese Jr.
Title: Chief Legal Officer
EMPLOYEE
By:	/s/ Robert Lynch
Name: Rob Lynch
Title: Chief Executive Officer

EX-10.4

First Amendment to Employment Agreement

This First Amendment to Employment Agreement (the “Amendment”), is made and entered into on August 2, 2024 (the “Effective Date”), by and between Stephanie Sentell (“Executive”), on the one hand, and each of Shake Shack Inc, a corporation organized under the laws of the State of Delaware (“Pubco”), SSE Holdings, LLC, a limited liability company organized under the laws of the State of Delaware (“Partnership”), and Shake Shack Enterprises, LLC, a limited liability company organized under the laws of the State of New York, on the other hand (“Enterprises” and, together with Pubco and Partnership, collectively, the “Company”).

RECITALS

WHEREAS, Executive and Company are parties to an Employment Agreement, dated as of June 20, 2024, but effective as of July 1, 2024 (the “Employment Agreement”);

WHEREAS, pursuant to Section 13 of the Employment Agreement, the Employment Agreement may not be amended or modified except by a written agreement executed by the parties thereto; and

WHEREAS, the parties now desire to amend the Employment Agreement to reflect the previously agreed terms between the parties as provided herein.

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, including the respective covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree, effective as of the Effective Date, as follows:

1.Defined Terms. All capitalized terms used herein that are not otherwise defined herein shall have the meanings ascribed to such terms in the Employment Agreement unless the context clearly indicates to the contrary.

2.Amendment.

(a)Section 3(b) of the Employment Agreement is hereby amended and restated in its entirety as follows (with emphasis on the amended provisions):

“(b)     Bonuses.

(i)During the portion of the Term beginning after the conclusion of fiscal year 2024, Employee shall be eligible to receive an annual bonus, semi-annual bonus, or such other periodic performance-based cash bonus as determined by the Board (or the Compensation Committee thereof), in each case based on an annualized target bonus opportunity of Seventy-Five Percent (75%) of the Annual Base Salary (the “Bonus”; such target bonus opportunity, the “Target Bonus Opportunity”), which shall be payable based upon the attainment of individual and Company performance goals established each fiscal year by the Board (or the Compensation Committee thereof), with the opportunity to make up to Two Hundred Percent (200%), on an annualized basis, of the Target Bonus Opportunity, which shall be payable if the Company and/or Employee exceed such performance goals. Each such bonus shall be payable on, or at such date as is determined by the Board within one hundred twenty (120) days

following, the last day of the Fiscal Month, Fiscal Quarter or Fiscal Year, as applicable, with respect to which such bonus relates.

(ii)For fiscal year 2024, Executive shall be eligible to receive a semi-annual performance-based cash bonus (the “2024 Semi-Annual Bonus”) based on the Target Bonus Opportunity, which shall be payable based upon the attainment of individual and Company performance goals established for the second half of fiscal year 2024, with the opportunity to make up to Two Hundred Percent (200%), on an annualized basis, of the Target Bonus Opportunity, which shall be payable if the Company and/or Employee exceed such performance goals, with such amount being equal to the target amount of the 2024 Semi-Annual Bonus for the second half of fiscal year 2024 as adjusted based on the attainment of such Company and Employee performance goals established for the second half of fiscal year 2024. The 2024 Semi-Annual Bonus shall be payable on, or at such date as is determined by the Board within one hundred twenty (120) days following, the last day of fiscal year 2024.

(i)Except as provided in Section 5, notwithstanding any other provision of this Section 3(b), no bonus shall be payable under this Section 3(b) unless Employee remains continuously employed with the Company during the period beginning on the Effective Date and ending on the applicable bonus payment date.”

3.Effective Date and Incorporation.The operative provisions of this Amendment shall be effective as of the Effective Date, and shall be deemed to be a part of the Employment Agreement as if originally provided therein. Except as provided herein, all other terms of the Employment Agreement shall continue without modification and remain in full force and effect.

2

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Employment Agreement on the date and year first above written, effective as of the Effective Date.

PUBCO
SHAKE SHACK INC.
By:	/s/ Ronald Palmese Jr.
Name: Ronald Palmese Jr.
Title: Chief Legal Officer
PARTNERSHIP
SSE HOLDINGS, LLC
By:	/s/ Ronald Palmese Jr.
Name: Ronald Palmese Jr.
Title: Chief Legal Officer
ENTERPRISES
SHAKE SHACK ENTERPRISES, LLC
By:	/s/ Ronald Palmese Jr.
Name: Ronald Palmese Jr.
Title: Chief Legal Officer
EMPLOYEE
By:	/s/ Stephanie Sentell
Name: Stephanie Sentell
Title: Chief Operations Officer

EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Robert Lynch, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended June 26, 2024 of Shake Shack Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2024
	/s/ Robert Lynch
	Robert Lynch
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Katherine I. Fogertey, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended June 26, 2024 of Shake Shack Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2024
	/s/ Katherine I. Fogertey
	Katherine I. Fogertey
	Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Shake Shack Inc. (the “Company”), for the quarterly period ended June 26, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 2, 2024
	/s/ Robert Lynch
	Robert Lynch
	Chief Executive Officer

Date: August 2, 2024
	/s/ Katherine I. Fogertey
	Katherine I. Fogertey
	Chief Financial Officer

XML

Document and Entity Information Document and Entity Information - shares	3 Months Ended
	Jun. 26, 2024	Jul. 24, 2024
Document Information [Line Items]
Security Exchange Name	NYSE
Trading Symbol	SHAK
Title of 12(b) Security	Class A Common Stock, par value $0.001
Entity Interactive Data Current	Yes
Local Phone Number	747-7200
City Area Code	646
Entity Address, Postal Zip Code	10014
Entity Tax Identification Number	47-1941186
Entity Incorporation, State or Country Code	DE
Entity File Number	001-36823
Document Transition Report	false
Document Quarterly Report	true
Document type	10-Q
Amendment flag	false
Document Period End Date	Jun. 26, 2024
Document fiscal year focus	2024
Document fiscal period focus	Q2
Entity registrant name	SHAKE SHACK INC.
Entity Address, Address Line One	225 Varick Street
Entity Address, Address Line Two	Suite 301
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity central index key	0001620533
Current fiscal year end date	--12-25
Entity filer category	Large Accelerated Filer
Entity current reporting status	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Class A Common Stock
Document Information [Line Items]
Entity common stock, shares outstanding (in shares)		39,982,821
Class B Common Stock
Document Information [Line Items]
Entity common stock, shares outstanding (in shares)		2,487,936

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 26, 2024	Dec. 27, 2023
Current assets:
Cash and cash equivalents	$ 301,838	$ 224,653
Marketable securities	2,574	68,561
Accounts receivable, net	15,914	16,847
Inventories	5,194	5,404
Prepaid expenses and other current assets	20,160	18,967
Total current assets	345,680	334,432
Property and equipment, net of accumulated depreciation of $425,428 and $376,760, respectively	545,225	530,995
Operating lease assets	419,527	398,296
Deferred income taxes, net	338,538	326,208
Other assets	12,788	15,926
TOTAL ASSETS	1,661,758	1,605,857
Current liabilities:
Accounts payable	18,576	22,273
Accrued expenses	56,376	54,742
Accrued wages and related liabilities	22,584	20,945
Operating lease liabilities, current	53,140	49,004
Other current liabilities	17,412	17,103
Total current liabilities	168,088	164,067
Long-term debt	246,160	245,636
Long-term operating lease liabilities	487,600	464,533
Liabilities under tax receivable agreement, net of current portion	246,878	235,613
Other long-term liabilities	26,667	26,638
Total liabilities	1,175,393	1,136,487
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of June 26, 2024 and December 27, 2023.	0	0
Additional paid-in capital	433,877	426,601
Retained earnings	28,485	16,777
Accumulated other comprehensive loss	(4)	(3)
Total stockholders' equity attributable to Shake Shack Inc.	462,400	443,417
Non-controlling interests	23,965	25,953
Total equity	486,365	469,370
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	1,661,758	1,605,857
Class A Common Stock
Stockholders' equity:
Common stock	40	39
Class B Common Stock
Stockholders' equity:
Common stock	$ 2	$ 3

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
TOTAL REVENUE	$ 316,496	$ 271,805	$ 607,000	$ 525,083
Shack-level operating expenses:
Food and paper costs	85,053	75,800	165,306	147,572
Labor and related expenses	86,614	75,158	168,123	149,422
Other operating expenses	43,953	36,109	85,809	71,045
Occupancy and related expenses	23,226	19,801	45,414	38,384
General and administrative expenses	36,313	31,476	72,257	62,787
Depreciation and amortization expense	25,496	22,252	50,937	43,574
Pre-opening costs	4,014	5,577	6,767	9,134
Impairment and loss on disposal of assets	1,045	884	1,571	1,606
TOTAL EXPENSES	305,714	267,057	596,184	523,524
INCOME FROM OPERATIONS	10,782	4,748	10,816	1,559
Other income, net	3,300	3,227	6,506	6,064
Interest expense	(527)	(405)	(1,035)	(808)
INCOME BEFORE INCOME TAXES	13,555	7,570	16,287	6,815
Income tax expense	3,173	347	3,691	1,214
NET INCOME	10,382	7,223	12,596	5,601
Less: Net income attributable to non-controlling interests	714	275	888	187
NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC.	$ 9,668	$ 6,948	$ 11,708	$ 5,414
Earnings per share of Class A common stock:
Basic (in dollars per share)	$ 0.24	$ 0.18	$ 0.30	$ 0.14
Diluted (in dollars per share)	$ 0.23	$ 0.16	$ 0.28	$ 0.13
Weighted-average shares of Class A common stock outstanding:
Basic (in shares)	39,750	39,416	39,632	39,374
Diluted (in shares)	41,480	43,886	41,369	43,837
Shack sales
TOTAL REVENUE	$ 305,480	$ 261,810	$ 586,032	$ 506,064
Licensing revenue
TOTAL REVENUE	$ 11,016	$ 9,995	$ 20,968	$ 19,019

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 26, 2024		Jun. 28, 2023		Jun. 26, 2024	Jun. 28, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 10,382		$ 7,223		$ 12,596	$ 5,601
Other comprehensive loss, net of tax:
Change in foreign currency translation adjustment	0	[1]	0	[1]	(1)	(4)
OTHER COMPREHENSIVE LOSS	0		0		(1)	(4)
COMPREHENSIVE INCOME	10,382		7,223		12,595	5,597
Less: Comprehensive income attributable to non-controlling interests	714		275		888	187
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAKE SHACK INC.	$ 9,668		$ 6,948		$ 11,707	$ 5,410

[1] Net of tax expense of $0 for the thirteen and twenty-six weeks ended June 26, 2024 and June 28, 2023.

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Statement of Comprehensive Income [Abstract]
Income tax expense	$ 0	$ 0	$ 0	$ 0

XML

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total		Class A Common Stock	Class B Common Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Loss	Non- Controlling Interest
Beginning balance (shares) at Dec. 28, 2022					39,284,998	2,869,513
Beginning balance at Dec. 28, 2022	$ 436,836				$ 39	$ 3	$ 415,649	$ (3,487)	$ 0	$ 24,632
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,601							5,414		187
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(4)								(4)
Equity-based compensation	7,875						7,875
Activity under stock compensation plans (in shares)					139,248
Activity under stock compensation plans	(2,039)						(2,554)			515
Redemption of LLC Interests (in shares)					25,000	(25,000)
Redemption of LLC Interests	0						194			(194)
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	230						230
Distributions paid to non-controlling interest holders	(52)									(52)
Ending balance (shares) at Jun. 28, 2023					39,449,246	2,844,513
Ending balance at Jun. 28, 2023	448,447				$ 39	$ 3	421,394	1,927	(4)	25,088
Beginning balance (shares) at Mar. 29, 2023					39,404,905	2,844,513
Beginning balance at Mar. 29, 2023	436,993				$ 39	$ 3	417,489	(5,021)	(4)	24,487
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,223							6,948		275
Other comprehensive income (loss):
Change in foreign currency translation adjustment	0	[1]							0
Equity-based compensation	4,011						4,011
Activity under stock compensation plans (in shares)					44,341
Activity under stock compensation plans	474						145			329
Redemption of LLC Interests (in shares)					0	0
Redemption of LLC Interests	0						0			0
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	(251)						(251)
Distributions paid to non-controlling interest holders	(3)									(3)
Ending balance (shares) at Jun. 28, 2023					39,449,246	2,844,513
Ending balance at Jun. 28, 2023	448,447				$ 39	$ 3	421,394	1,927	(4)	25,088
Beginning balance (shares) at Dec. 27, 2023			39,474,315	2,834,513	39,474,315	2,834,513
Beginning balance at Dec. 27, 2023	469,370				$ 39	$ 3	426,601	16,777	(3)	25,953
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,596							11,708		888
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(1)								(1)
Equity-based compensation	7,558						7,558
Activity under stock compensation plans (in shares)					146,081
Activity under stock compensation plans	(5,389)				$ 1		(5,897)			507
Redemption of LLC Interests (in shares)					346,577	(346,577)
Redemption of LLC Interests	0					$ (1)	3,239			(3,238)
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	2,376						2,376
Distributions paid to non-controlling interest holders	(145)									(145)
Ending balance (shares) at Jun. 26, 2024			39,966,973	2,487,936	39,966,973	2,487,936
Ending balance at Jun. 26, 2024	486,365				$ 40	$ 2	433,877	28,485	(4)	23,965
Beginning balance (shares) at Mar. 27, 2024					39,635,382	2,801,013
Beginning balance at Mar. 27, 2024	472,293				$ 40	$ 3	427,530	18,817	(4)	25,907
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,382							9,668		714
Other comprehensive income (loss):
Change in foreign currency translation adjustment	0	[1]							0
Equity-based compensation	3,840						3,840
Activity under stock compensation plans (in shares)					18,514
Activity under stock compensation plans	(24)						(320)			296
Redemption of LLC Interests (in shares)					313,077	(313,077)
Redemption of LLC Interests	0					$ (1)	2,953			(2,952)
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	(126)						(126)
Distributions paid to non-controlling interest holders	0									0
Ending balance (shares) at Jun. 26, 2024			39,966,973	2,487,936	39,966,973	2,487,936
Ending balance at Jun. 26, 2024	$ 486,365				$ 40	$ 2	$ 433,877	$ 28,485	$ (4)	$ 23,965

[1] Net of tax expense of $0 for the thirteen and twenty-six weeks ended June 26, 2024 and June 28, 2023.

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023
OPERATING ACTIVITIES
Net income (including amounts attributable to non-controlling interests)	$ 12,596	$ 5,601
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	50,937	43,574
Amortization of debt issuance costs	524	524
Amortization of cloud computing assets	1,048	880
Non-cash operating lease cost	37,655	32,598
Equity-based compensation	7,381	7,734
Deferred income taxes	1,311	2,733
Non-cash interest	(128)	99
Gain on sale of equity securities	0	(81)
Net amortization of discount on held-to-maturity securities	(434)	(89)
Impairment and loss on disposal of assets	1,571	1,606
Changes in operating assets and liabilities:
Accounts receivable	933	(455)
Inventories	210	(490)
Prepaid expenses and other current assets	(864)	(519)
Other assets	(1,219)	(3,217)
Accounts payable	(1,084)	(3,939)
Accrued expenses	4,409	39
Accrued wages and related liabilities	1,639	592
Other current liabilities	(732)	(2,081)
Operating lease liabilities	(32,553)	(25,584)
Other long-term liabilities	1,010	2,666
NET CASH PROVIDED BY OPERATING ACTIVITIES	84,210	62,191
INVESTING ACTIVITIES
Purchases of property and equipment	(65,992)	(74,755)
Purchases of held-to-maturity securities	0	(91,448)
Maturities of held-to-maturity marketable securities	66,420	0
Purchases of equity securities	0	(690)
Sales of equity securities	0	81,478
NET CASH USED IN INVESTING ACTIVITIES	428	(85,415)
FINANCING ACTIVITIES
Payments on principal of finance leases	(1,918)	(1,504)
Distributions paid to non-controlling interest holders	(145)	(52)
Net proceeds from stock option exercises	552	630
Employee withholding taxes related to net settled equity awards	(5,941)	(2,670)
NET CASH USED IN FINANCING ACTIVITIES	(7,452)	(3,596)
Effect of exchange rate changes on cash and cash equivalents	(1)	(4)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	77,185	(26,824)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	224,653	230,521
CASH AND CASH EQUIVALENTS AT END OF PERIOD	301,838	203,697
0% Convertible Senior Notes Due 2028 | Senior Notes | Private Placement
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of debt issuance costs	$ 524	$ 524

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Jun. 26, 2024	Dec. 27, 2023
Accumulated depreciation	$ 376,760	$ 425,428
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A Common Stock
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares, issued (in shares)	39,966,973	39,474,315
Common stock, shares, outstanding (in shares)	39,966,973	39,474,315
Class B Common Stock
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	35,000,000	35,000,000
Common stock, shares, issued (in shares)	2,487,936	2,834,513
Common stock, shares, outstanding (in shares)	2,487,936	2,834,513

XML

NATURE OF OPERATIONS

6 Months Ended

Jun. 26, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS

NATURE OF OPERATIONS

Shake Shack Inc. was formed on September 23, 2014 as a Delaware corporation for the purpose of facilitating an initial public offering and other related transactions in order to carry on the business of SSE Holdings, LLC and its subsidiaries ("SSE Holdings"). Shake Shack Inc. is the sole managing member of SSE Holdings and, as sole managing member, the Company operates and controls all of the business and affairs of SSE Holdings. As a result, the Company consolidates the financial results of SSE Holdings and reports a non-controlling interest representing the economic interest in SSE Holdings held by the other members of SSE Holdings. As of June 26, 2024 the Company owned 94.1% of SSE Holdings. Unless the context otherwise requires, "we," "us," "our," "Shake Shack," the "Company" and other similar references, refer to Shake Shack Inc. and, unless otherwise stated, all of its subsidiaries, including SSE Holdings.

The Company operates and licenses Shake Shack restaurants ("Shacks"), which serve burgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine and more. As of June 26, 2024, there were 547 Shacks in operation system-wide, of which 311 were Company-operated Shacks and 236 were licensed Shacks.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 26, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Shake Shack Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and on a basis consistent in all material respects with the accounting policies described in its Annual Report on Form 10-K for the fiscal year ended December 27, 2023 ("2023 Form 10-K"). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These interim Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes thereto included in its 2023 Form 10-K. In the Company's opinion, all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the financial position and results of operation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year.

SSE Holdings is considered a variable interest entity. Shake Shack Inc. is the primary beneficiary as the Company has the majority economic interest in SSE Holdings and, as the sole managing member, has decision making authority that significantly affects the economic performance of the entity, while the limited partners have no substantive kick-out or participating rights. As a result, the Company consolidates SSE Holdings. The assets and liabilities of SSE Holdings represent substantially all of the Company's consolidated assets and liabilities with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement. As of June 26, 2024 and December 27, 2023, the net assets of SSE Holdings were $409,417 and $388,250, respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreement.

Fiscal Year

The Company operates on a 52/53 week fiscal year ending on the last Wednesday of December. Fiscal 2024 contains 52 weeks and ends on December 25, 2024. Fiscal 2023 contained 52 weeks and ended on December 27, 2023. Unless otherwise stated, references to years in this report relate to fiscal years.

Use of Estimates

The preparation of these Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates.

Recently Issued Accounting Pronouncements

The Company reviewed all recently issued accounting pronouncements and concluded that they were not applicable or not expected to have a significant impact on its Condensed Consolidated Financial Statements.

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REVENUE

6 Months Ended

Jun. 26, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Revenue Recognition

Shack Sales

Revenue from Shack sales is recognized when payment is tendered at the point of sale, net of discounts as the performance obligation has been satisfied at that time. Sales tax collected from guests is excluded from Shack sales and the obligation is included in Other current liabilities on the Condensed Consolidated Balance Sheets until the taxes are remitted to the appropriate taxing authorities.

Delivery services are fulfilled by third-party delivery partners whether ordered through the Shack app, website (collectively, "Company-owned platforms") or through third-party delivery platforms. Revenue from orders through Company-owned platforms includes delivery fees and is recognized when the delivery partner transfers the order to the guest as the Company controls the delivery. For these sales, the Company receives payment directly from the guest at the time of sale. Revenue from orders through third-party delivery platforms is recognized when the order is transferred to the third-party delivery partner and excludes delivery fees collected by the delivery partner as the Company does not control the delivery. The Company receives payment from the delivery partner subsequent to the transfer of the order and the payment terms are short-term in nature. For all delivery sales, the Company is considered the principal and recognizes revenue on a gross basis.

The Company sells gift cards which do not have expiration dates. Revenue from gift cards is recognized when gift cards are redeemed by the guest or, in the event a gift card is not expected to be redeemed, in proportion to actual redemptions of gift cards ("gift card breakage"). The gift card breakage rate is determined from historical gift card redemption patterns. Gift card breakage income for the thirteen weeks ended June 26, 2024 and June 28, 2023 was $110 and $72, respectively. Gift card breakage income for the twenty-six weeks ended June 26, 2024 and June 28, 2023 was $244 and $178, respectively. Gift card breakage income is included in Shack sales on the Condensed Consolidated Statements of Income.

Licensing Revenue

Licensing revenue includes initial territory fees, Shack opening fees and ongoing sales-based royalty fees from licensed Shacks. Generally, the licenses granted to develop, open and operate each Shack in a specified territory are the predominant good or service transferred to the licensee and represent distinct performance obligations. Ancillary promised services, such as training and assistance during the initial opening of a Shack, are typically combined with the license and considered one performance obligation per Shack.

The Company determines the transaction price for each contract, which requires judgement as the transaction price is comprised of the initial territory fee and an estimate of the total Shack opening fees based on the estimated number of Shacks the Company expects the licensee to open. The transaction price is then allocated equally to each Shack expected to open. The performance obligation is satisfied over time, starting when a Shack opens through the end of the license term for the related Shack, therefore revenue is recognized on a straight-line basis over the license term.

Generally, payment for the initial territory fee is received upon execution of the license agreement and payment for the Shack opening fees is received either in advance of or upon opening the related Shack. These payments are initially deferred and recognized in revenue as the performance obligations are satisfied. Revenue from sales-based royalties is recognized as the related sales occur.

Revenue disaggregated by type was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Shack sales	$	305,480	$	261,810	$	586,032	$	506,064
Licensing revenue:
Sales-based royalties	10,624		9,712		20,257		18,490
Initial territory and opening fees	392		283		711		529
Total revenue	$	316,496	$	271,805	$	607,000	$	525,083

The aggregate amount of the transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of June 26, 2024 was $22,978. The Company expects to recognize this amount as revenue over a long-term period, as the license term for each Shack ranges from five to twenty years. This amount excludes any variable consideration related to sales-based royalties.

Contract Balances

Contract liabilities and receivables from contracts with customers were as follows:

	June 26 2024		December 27 2023
Shack sales receivables	$	9,399	$	9,884
Licensing receivables, net of allowance for doubtful accounts	5,440		4,610
Gift card liability	2,047		2,603
Deferred revenue, current	1,328		1,192
Deferred revenue, long-term	16,777		17,157

Revenue recognized that was included in the respective liability balances at the beginning of the period was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Gift card liability	$	168	$	144	$	587	$	477
Deferred revenue	385		274		702		518

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 26, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The carrying values of the Company's Cash and cash equivalents, Accounts receivable, net, Accounts payable and Accrued expenses approximate fair value due to the short-term nature of these financial instruments.

The Company's marketable securities were as follows:

	June 26 2024		December 27 2023
Held-to-maturity securities	$	2,574	$	68,561

The Company classified its held-to-maturity securities as Level 1 within the fair value hierarchy. Refer to Note 6, Debt, for additional information relating to the fair value of the Company's outstanding debt instruments.

The Company's held-to-maturity securities were as follows:

	June 26, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Treasuries	$	2,574	$	456	$	—	$	3,030

As of June 26, 2024, the contractual maturities of held-to-maturity securities were less than 12 months. Any expected credit losses would not be material to the Condensed Consolidated Statements of Income.

A summary of other income (expense) from marketable securities was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Income from marketable securities	$	90	$	126	$	625	$	621
Realized gain on sale of equity securities	—		—		—		81
Total	$	90	$	126	$	625	$	702

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis include long-lived assets, operating lease right-of-use assets and indefinite-lived intangible assets. The Company performs its impairment analysis at least annually or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. There were no impairment charges recognized during the thirteen and twenty-six weeks ended June 26, 2024 and June 28, 2023.

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SUPPLEMENTAL BALANCE SHEET INFORMATION

6 Months Ended

Jun. 26, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL BALANCE SHEET INFORMATION

SUPPLEMENTAL BALANCE SHEET INFORMATION

The components of Prepaid expenses and other current assets were as follows:

	June 26 2024		December 27 2023
Prepaid expenses	$	6,332	$	5,641
Tenant allowance receivables	12,465		12,136
Other	1,363		1,190
Prepaid expenses and other current assets	$	20,160	$	18,967

The components of Other current liabilities were as follows:

	June 26 2024		December 27 2023
Sales tax payable	$	6,220	$	6,076
Current portion of financing equipment lease liabilities	3,789		3,435
Gift card liability	2,047		2,603
Other	5,356		4,989
Other current liabilities	$	17,412	$	17,103

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DEBT

6 Months Ended

Jun. 26, 2024

Debt Disclosure [Abstract]

DEBT

DEBT

Convertible Notes

The Company's $250,000 aggregate principal amount of 0% Convertible Senior Notes due 2028 (“Convertible Notes”) will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in certain circumstances. Upon conversion, the Company pays or delivers, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company's election.

The Convertible Notes are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding December 1, 2027, only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on June 30, 2021 (and only during such fiscal quarter), if the last reported sale price of the Company's Class A common stock, par value $0.001 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the Convertible Notes on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per one thousand dollar principal amount of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate for the Convertible Notes on each such trading day; (3) if the Company calls such Convertible Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the Convertible Notes called (or deemed called) for redemption; and (4) upon the occurrence of specified corporate events as set forth in the Indenture. On or after December 1, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Convertible Notes may convert all or any portion of their Convertible Notes at any time, regardless of the foregoing circumstances.

The Convertible Notes had an initial conversion rate of 5.8679 shares of Class A common stock per one thousand dollar principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $170.42 per share of Class A common stock. The fair value of the Convertible Notes was approximately $214,375 and $205,000, respectively, as of June 26, 2024 and December 27, 2023, based on external pricing data, including available quoted market prices of these instruments, and consideration of comparable debt instruments with similar interest rates and trading frequency, among other factors, and is classified as a Level 2 measurement within the fair value hierarchy.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amortization expense on Convertible Notes	Interest expense	$	262	$	262	$	524	$	524

	June 26 2024		December 27 2023
Convertible Notes	$	250,000	$	250,000
Discount and debt issuance costs, net of amortization	(3,840)		(4,364)
Long-term debt	$	246,160	$	245,636

Revolving Credit Facility

The Company maintains a revolving credit facility agreement ("Revolving Credit Facility") which permits borrowings up to $50,000 with the ability to increase available borrowings up to an additional $100,000, subject to satisfaction of certain conditions. The Revolving Credit Facility has a maturity date of March 5, 2026.

In June 2023, the Company entered into the fourth amendment to the Revolving Credit Facility ("Fourth Amendment"), which, among other things, modified the benchmark interest rate to either: (i) the base rate plus applicable margin ranging from 0.0% to 1.5% or (ii) the Secured Overnight Financing Rate (“SOFR”) plus applicable margin ranging from 1.0% to 2.5%, in each case

dependent upon the net lease adjusted leverage ratio. As of June 26, 2024 and December 27, 2023, no amounts were outstanding under the Revolving Credit Facility.

The obligations under the Revolving Credit Facility are secured by a first-priority security interest in substantially all of the assets of SSE Holdings and the guarantors. The obligations under the Revolving Credit Facility are guaranteed by each of SSE Holdings' direct and indirect subsidiaries, with certain exceptions. The Revolving Credit Facility requires the Company to comply with maximum net lease adjusted leverage and minimum fixed charge coverage ratios, as well as other customary affirmative and negative covenants. As of June 26, 2024, the Company was in compliance with all covenants.

The Revolving Credit Facility also permits the issuance of letters of credit upon our request of up to $15,000. As of June 26, 2024 and December 27, 2023, the Company had outstanding letters of credit of $3,310 and $3,147, respectively, in connection with the Revolving Credit Facility.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Interest expense on Revolving Credit Facility	Interest expense	$	17	$	22	$	34	$	46

	Classification	June 26 2024		December 27 2023
Unamortized deferred financing costs on Revolving Credit Facility	Other assets	$	33	$	42

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LEASES

6 Months Ended

Jun. 26, 2024

Leases [Abstract]

LEASES

LEASES

Nature of Leases

Shake Shack currently leases all of its Company-operated Shacks, the home office and certain equipment under various non-cancelable lease agreements that expire on various dates through 2045. The Company evaluates contracts entered into to determine whether the contract involves the use of property or equipment, which is either explicitly or implicitly identified in the contract. The Company evaluates whether it controls the use of the asset, which is determined by assessing whether substantially all economic benefit from the use of the asset is obtained, and whether the Company has the right to direct the use of the asset. If these criteria are met, the Company has identified a lease within the contract, and therefore a right of use asset and lease liability are recorded on the Condensed Consolidated Balance Sheets. Upon possession of a leased asset, the Company determines whether the lease is an operating or finance lease. All of the Company's real estate leases are classified as operating leases and most equipment leases are classified as finance leases.

Generally, real estate leases have initial terms ranging from 10 to 15 years and typically include two five-year renewal options. Renewal options are generally not recognized as part of the right-of-use assets and lease liabilities as it is not reasonably certain at commencement date that the Company would exercise the renewal options. Real estate leases typically contain fixed minimum rent payments and/or contingent rent payments which are based upon sales in excess of specified thresholds. When the achievement of such sales thresholds are deemed to be probable, contingent rent is accrued in proportion to the sales recognized during the period.

For operating leases, fixed lease payments are recognized as operating lease costs on a straight-line basis over the lease term on the Condensed Consolidated Statements of Income in the following line items. Lease expense incurred before a Shack opens is recorded in Pre-opening costs. Once a Company-operated Shack opens, the straight-line lease expense and contingent rent, if applicable, are recorded in Occupancy and related expenses. Many of these leases also require the Company to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in Occupancy and related expenses. Finance leases are recognized in depreciation expense on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability.

For both operating and finance leases that contain lease and non-lease components, the components are combined and accounted for as a single lease component. Variable lease costs for both operating and finance leases, if any, are recognized as incurred. Leases with a term of 12 months or less are deemed short-term and are not recognized on the Condensed Consolidated Balance Sheets. Fixed lease payments for short-term leases are recognized on a straight-line basis over the lease term.

The Company calculates operating lease assets and lease liabilities as the present value of fixed lease payments over the reasonably certain lease term beginning at the commencement date. The Company uses its incremental borrowing rate ("IBR") in determining the present value of future lease payments as there are no explicit rates provided in the leases. The IBR used to measure the lease liability is derived from the average of the yield curves obtained from using the notching method and the recovery rate method. The most significant assumption in calculating the IBR is the Company's credit rating and is subject to judgment. The credit rating used to develop the IBR is determined by utilizing the credit ratings of other public companies with similar financial information as SSE Holdings.

The Company expends cash for leasehold improvements to build out and equip leased properties. Generally, a portion of the leasehold improvements and building costs are reimbursed by the landlords through landlord incentives pursuant to agreed-upon terms in the lease agreements. Landlord incentives usually take the form of cash, full or partial credits against future minimum or contingent rents otherwise payable by the Company, or a combination thereof. In most cases, landlord incentives are received after the Company takes possession of the property and as milestones are met during the construction of the property. The Company includes these amounts in the measurement of the initial operating lease liability, and lease asset.

A summary of operating and finance right-of-use assets and lease liabilities were as follows:

	Classification	June 26 2024		December 27 2023
Operating leases	Operating lease assets	$	419,527	$	398,296
Finance leases	Property and equipment, net	12,278		11,801
Total right-of-use assets		$	431,805	$	410,097
Operating leases:
	Operating lease liabilities, current	$	53,140	$	49,004
	Long-term operating lease liabilities	487,600		464,533
Finance leases:
	Other current liabilities	3,789		3,435
	Other long-term liabilities	8,969		8,721
Total lease liabilities		$	553,498	$	525,693

The components of lease expense were as follows:

			Thirteen Weeks Ended				Twenty-Six Weeks Ended
		Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Operating lease cost		Occupancy and related expenses Pre-opening costs General and administrative expenses	$	19,165	$	16,523	$	37,655	$	32,598
Finance lease cost:
	Amortization of right-of-use assets	Depreciation and amortization expense	1,075		703		2,043		1,440
	Interest on lease liabilities	Interest expense	207		72		387		142
Variable lease cost		Occupancy and related expenses Pre-opening costs General and administrative expenses	5,523		4,682		10,729		8,452
Short-term lease cost		Occupancy and related expenses	190		273		406		513
Total lease cost			$	26,160	$	22,253	$	51,220	$	43,145

As of June 26, 2024, future minimum lease payments for operating and finance leases consisted of the following:

	Operating Leases		Finance Leases
2024(1)	$	29,716	$	2,306
2025	85,913		4,151
2026	86,224		3,397
2027	81,318		2,719
2028	76,993		1,493
Thereafter	342,271		228
Total minimum payments	702,435		14,294
Less: imputed interest	174,160		1,536
Total lease liabilities	$	528,275	$	12,758

(1)Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of June 26, 2024.

As of June 26, 2024, the Company had additional operating lease commitments of $134,340 for non-cancelable leases without a possession date, which commence in 2024 or later. These lease commitments are materially consistent with leases recognized on the Condensed Consolidated Balance Sheets.

A summary of lease terms and discount rates for operating and finance leases were as follows:

		June 26 2024		December 27 2023
Weighted average remaining lease term (years):
	Operating leases	8.9		8.9
	Finance leases	4.7		4.7
Weighted average discount rate:
	Operating leases	6.2	%	6.2	%
	Finance leases	5.7	%	5.6	%

Supplemental cash flow information related to leases was as follows:

		Twenty-Six Weeks Ended
		June 26 2024		June 28 2023
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from operating leases	$	40,095	$	34,454
	Operating cash flows from finance leases	387		142
	Financing cash flows from finance leases	1,918		1,504
Right-of-use assets obtained in exchange for lease obligations:
	Operating leases	43,822		37,625
	Finance leases	2,520		1,408

LEASES

LEASES

Nature of Leases

Shake Shack currently leases all of its Company-operated Shacks, the home office and certain equipment under various non-cancelable lease agreements that expire on various dates through 2045. The Company evaluates contracts entered into to determine whether the contract involves the use of property or equipment, which is either explicitly or implicitly identified in the contract. The Company evaluates whether it controls the use of the asset, which is determined by assessing whether substantially all economic benefit from the use of the asset is obtained, and whether the Company has the right to direct the use of the asset. If these criteria are met, the Company has identified a lease within the contract, and therefore a right of use asset and lease liability are recorded on the Condensed Consolidated Balance Sheets. Upon possession of a leased asset, the Company determines whether the lease is an operating or finance lease. All of the Company's real estate leases are classified as operating leases and most equipment leases are classified as finance leases.

Generally, real estate leases have initial terms ranging from 10 to 15 years and typically include two five-year renewal options. Renewal options are generally not recognized as part of the right-of-use assets and lease liabilities as it is not reasonably certain at commencement date that the Company would exercise the renewal options. Real estate leases typically contain fixed minimum rent payments and/or contingent rent payments which are based upon sales in excess of specified thresholds. When the achievement of such sales thresholds are deemed to be probable, contingent rent is accrued in proportion to the sales recognized during the period.

For operating leases, fixed lease payments are recognized as operating lease costs on a straight-line basis over the lease term on the Condensed Consolidated Statements of Income in the following line items. Lease expense incurred before a Shack opens is recorded in Pre-opening costs. Once a Company-operated Shack opens, the straight-line lease expense and contingent rent, if applicable, are recorded in Occupancy and related expenses. Many of these leases also require the Company to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in Occupancy and related expenses. Finance leases are recognized in depreciation expense on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability.

For both operating and finance leases that contain lease and non-lease components, the components are combined and accounted for as a single lease component. Variable lease costs for both operating and finance leases, if any, are recognized as incurred. Leases with a term of 12 months or less are deemed short-term and are not recognized on the Condensed Consolidated Balance Sheets. Fixed lease payments for short-term leases are recognized on a straight-line basis over the lease term.

The Company calculates operating lease assets and lease liabilities as the present value of fixed lease payments over the reasonably certain lease term beginning at the commencement date. The Company uses its incremental borrowing rate ("IBR") in determining the present value of future lease payments as there are no explicit rates provided in the leases. The IBR used to measure the lease liability is derived from the average of the yield curves obtained from using the notching method and the recovery rate method. The most significant assumption in calculating the IBR is the Company's credit rating and is subject to judgment. The credit rating used to develop the IBR is determined by utilizing the credit ratings of other public companies with similar financial information as SSE Holdings.

The Company expends cash for leasehold improvements to build out and equip leased properties. Generally, a portion of the leasehold improvements and building costs are reimbursed by the landlords through landlord incentives pursuant to agreed-upon terms in the lease agreements. Landlord incentives usually take the form of cash, full or partial credits against future minimum or contingent rents otherwise payable by the Company, or a combination thereof. In most cases, landlord incentives are received after the Company takes possession of the property and as milestones are met during the construction of the property. The Company includes these amounts in the measurement of the initial operating lease liability, and lease asset.

A summary of operating and finance right-of-use assets and lease liabilities were as follows:

	Classification	June 26 2024		December 27 2023
Operating leases	Operating lease assets	$	419,527	$	398,296
Finance leases	Property and equipment, net	12,278		11,801
Total right-of-use assets		$	431,805	$	410,097
Operating leases:
	Operating lease liabilities, current	$	53,140	$	49,004
	Long-term operating lease liabilities	487,600		464,533
Finance leases:
	Other current liabilities	3,789		3,435
	Other long-term liabilities	8,969		8,721
Total lease liabilities		$	553,498	$	525,693

The components of lease expense were as follows:

			Thirteen Weeks Ended				Twenty-Six Weeks Ended
		Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Operating lease cost		Occupancy and related expenses Pre-opening costs General and administrative expenses	$	19,165	$	16,523	$	37,655	$	32,598
Finance lease cost:
	Amortization of right-of-use assets	Depreciation and amortization expense	1,075		703		2,043		1,440
	Interest on lease liabilities	Interest expense	207		72		387		142
Variable lease cost		Occupancy and related expenses Pre-opening costs General and administrative expenses	5,523		4,682		10,729		8,452
Short-term lease cost		Occupancy and related expenses	190		273		406		513
Total lease cost			$	26,160	$	22,253	$	51,220	$	43,145

As of June 26, 2024, future minimum lease payments for operating and finance leases consisted of the following:

	Operating Leases		Finance Leases
2024(1)	$	29,716	$	2,306
2025	85,913		4,151
2026	86,224		3,397
2027	81,318		2,719
2028	76,993		1,493
Thereafter	342,271		228
Total minimum payments	702,435		14,294
Less: imputed interest	174,160		1,536
Total lease liabilities	$	528,275	$	12,758

(1)Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of June 26, 2024.

As of June 26, 2024, the Company had additional operating lease commitments of $134,340 for non-cancelable leases without a possession date, which commence in 2024 or later. These lease commitments are materially consistent with leases recognized on the Condensed Consolidated Balance Sheets.

A summary of lease terms and discount rates for operating and finance leases were as follows:

		June 26 2024		December 27 2023
Weighted average remaining lease term (years):
	Operating leases	8.9		8.9
	Finance leases	4.7		4.7
Weighted average discount rate:
	Operating leases	6.2	%	6.2	%
	Finance leases	5.7	%	5.6	%

Supplemental cash flow information related to leases was as follows:

		Twenty-Six Weeks Ended
		June 26 2024		June 28 2023
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from operating leases	$	40,095	$	34,454
	Operating cash flows from finance leases	387		142
	Financing cash flows from finance leases	1,918		1,504
Right-of-use assets obtained in exchange for lease obligations:
	Operating leases	43,822		37,625
	Finance leases	2,520		1,408

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NON-CONTROLLING INTERESTS

6 Months Ended

Jun. 26, 2024

Noncontrolling Interest [Abstract]

NON-CONTROLLING INTERESTS

NON-CONTROLLING INTERESTS

Shake Shack is the primary beneficiary and sole managing member of SSE Holdings and, as a result, consolidates the financial results of SSE Holdings. The Company reports a non-controlling interest representing the economic interest held by the other members of SSE Holdings. The Third Amended and Restated Limited Liability Company Agreement, as further amended, (the "LLC Agreement") of SSE Holdings provides that holders of SSE Holdings, LLC membership interests ("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 will receive a corresponding number of LLC Interests, increasing the total ownership interest in SSE Holdings. Changes in the ownership interest in SSE Holdings while the Company retains its controlling interest in SSE Holdings will be accounted for as equity transactions. As such, future redemptions or direct exchanges of LLC Interests in SSE Holdings by the other members of SSE Holdings will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase additional paid-in capital.

The following table summarizes the ownership interest in SSE Holdings:

	June 26, 2024			December 27, 2023
	LLC Interests	Ownership %		LLC Interests	Ownership %
Number of LLC Interests held by Shake Shack Inc.	39,966,973	94.1	%	39,474,315	93.3	%
Number of LLC Interests held by non-controlling interest holders	2,487,936	5.9	%	2,834,513	6.7	%
Total LLC Interests outstanding	42,454,909	100.0	%	42,308,828	100.0	%

The weighted average ownership percentages for the applicable reporting periods are used to attribute Net income and Other comprehensive income to the non-controlling interest holders and were as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Non-controlling interest holders' weighted average ownership percentages	6.3	%	6.7	%	6.5	%	6.7	%

The following table summarizes the effects of changes in ownership of SSE Holdings on the Company's equity:

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
		June 26 2024		June 28 2023		June 26 2024		June 28 2023
Net income attributable to Shake Shack Inc.		$	9,668	$	6,948	$	11,708	$	5,414
Other comprehensive loss:
	Unrealized holding loss on foreign currency translation adjustment	—		—		(1)		(4)
Transfers (to) from non-controlling interests:
	Increase in additional paid-in capital as a result of the redemption of LLC Interests	2,953		—		3,239		194
	Increase (decrease) in additional paid-in capital as a result of activity under stock compensation plan	(320)		145		(5,897)		(2,554)
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.		$	12,301	$	7,093	$	9,049	$	3,050

The following table summarizes the LLC Interests activity:

		Thirteen Weeks Ended		Twenty-Six Weeks Ended
		June 26 2024	June 28 2023	June 26 2024	June 28 2023
LLC Interests activity under the Company's stock compensation plan
	Number of LLC Interests received by Shake Shack Inc.	18,514	44,341	146,081	139,248
Redemption and acquisition of LLC Interests
	Number of LLC Interests redeemed by non-controlling interest holders	313,077	—	346,577	25,000
	Number of LLC Interests received by Shake Shack Inc.	313,077	—	346,577	25,000
Issuance of Class A common stock
	Shares of Class A common stock issued in connection with redemptions of LLC Interests	313,077	—	346,577	25,000
Cancellation of Class B common stock
	Shares of Class B common stock surrendered and canceled	313,077	—	346,577	25,000

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EQUITY-BASED COMPENSATION

6 Months Ended

Jun. 26, 2024

Share-Based Payment Arrangement [Abstract]

EQUITY-BASED COMPENSATION

EQUITY-BASED COMPENSATION

A summary of equity-based compensation expense by award type was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Performance stock units	$	(505)	$	749	$	278	$	2,059
Restricted stock units	4,244		3,183		7,103		5,675
Equity-based compensation expense	$	3,739	$	3,932	$	7,381	$	7,734
Total income tax benefit recognized related to equity-based compensation	$	113	$	98	$	217	$	200

Equity-based compensation expense recognized was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
General and administrative expenses	$	3,317	$	3,562	$	6,633	$	7,091
Labor and related expenses	422		370		748		643
Equity-based compensation expense	$	3,739	$	3,932	$	7,381	$	7,734

XML

INCOME TAXES

6 Months Ended

Jun. 26, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Shake Shack is the sole managing member of SSE Holdings and, as a result, consolidates the financial results of SSE Holdings. SSE Holdings is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, SSE Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by SSE Holdings is passed through to and included in the taxable income or loss of its members, including the Company, on a pro rata basis. The Company is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to its allocable share of any taxable income or loss of SSE Holdings, as well as any stand-alone income or loss generated by Shake Shack Inc. The Company is also subject to withholding taxes in foreign jurisdictions.

Effective Income Tax Rates

The following table presents the Company’s effective income tax rates:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Effective income tax rates	23.4	%	4.6	%	22.7	%	17.8	%

The increases in the effective income tax rates for the thirteen and twenty-six weeks ended June 26, 2024 were primarily driven by increases in pre-tax income. Additionally, increases in the Company's ownership interest in SSE Holdings for the thirteen and twenty-six weeks ended June 26, 2024 increase its share of the taxable income of SSE Holdings.

The Company's weighted average ownership interest in SSE Holdings was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Shake Shack's weighted average ownership percentages	93.7	%	93.3	%	93.5	%	93.3	%

Deferred Tax Assets and Liabilities

The Company acquires LLC Interests in connection with the redemption of LLC Interests and activity relating to its stock compensation plan and recognizes deferred tax assets associated with the basis difference in its investment in SSE Holdings upon acquisition of these LLC Interests.

The following table summarizes the LLC Interests acquired by the Company:

	Thirteen Weeks Ended		Twenty-Six Weeks Ended
	June 26 2024	June 28 2023	June 26 2024	June 28 2023
LLC Interests activity under the Company's stock compensation plan	18,514	44,341	146,081	139,248
LLC Interests activity from redemptions of LLC Interests	313,077	—	346,577	25,000
Total LLC Interests acquired by the Company	331,591	44,341	492,658	164,248

Deferred tax assets related to the basis difference in the Company's investment in SSE Holdings were as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Deferred tax assets recognized upon acquisition of LLC Interests	$	7,263	$	(251)	$	10,577	$	573

	June 26 2024		December 27 2023
Total deferred tax assets related to the acquisition of LLC Interests	$	101,746	$	90,419

The Company also recognizes deferred tax assets related to additional tax basis increases generated from expected future payments under the Tax Receivable Agreement and related deductions for imputed interest on such payments. Refer to "Tax Receivable Agreement," herein for additional information.

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Deferred tax assets recognized under the Tax Receivable Agreement	$	2,760	$	—	$	3,063	$	129

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized. As of June 26, 2024, the Company concluded, based on the weight of all available positive and negative evidence, that all of its deferred tax assets (except for those deferred tax assets relating to certain state tax credits and net operating losses) are more likely than not to be realized. As such, no additional valuation allowance was recognized.

Tax Receivable Agreement

On February 4, 2015, the Company entered into a tax receivable agreement with certain of the then-existing members of SSE Holdings (the "Tax Receivable Agreement") that provides for the payment by the Company of 85% of the amount of any tax benefits that are actually realized, or in some cases are deemed to realize, as a result of (i) increases in the Company's share of the tax basis in the net assets of SSE Holdings resulting from any redemptions or exchanges of LLC Interests, (ii) tax basis increases attributable to payments made under the Tax Receivable Agreement, and (iii) deductions attributable to imputed interest pursuant to the Tax Receivable Agreement (the "TRA Payments"). The Company expects to benefit from the remaining 15% of any tax benefits that may actually realize. The TRA Payments are not conditioned upon any continued ownership interest in SSE Holdings or the Company. The rights of each member of SSE Holdings that is a party to the Tax Receivable Agreement, are assignable to transferees of their respective LLC Interests.

Pursuant to the Company's election under Section 754 of the Internal Revenue Code (the "Code"), the Company expects to obtain an increase in its share of the tax basis in the net assets of SSE Holdings when LLC Interests are redeemed or exchanged by the other members of SSE Holdings. The Company plans to make an election under Section 754 of the Code for each taxable year in which a redemption or exchange of LLC Interest occurs. The Company intends to treat any redemptions and exchanges of LLC Interests as direct purchases of LLC Interests for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that would otherwise be paid in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.

Amounts payable under the Tax Receivable Agreement are contingent upon, among other things, (i) generation of future taxable income over the term of the Tax Receivable Agreement and (ii) future changes in tax laws. There were no transactions subject to the Tax Receivable Agreement for which the Company did not recognize the related liability, as the Company concluded that it would have sufficient future taxable income to utilize all of the related tax benefits generated by all transactions that occurred during the twenty-six weeks ended June 26, 2024 and June 28, 2023.

A summary of obligations under the Tax Receivable Agreement were as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Additional liabilities recognized under the Tax Receivable Agreement	$	10,150	$	(4)	$	11,265	$	468

	June 26 2024		December 27 2023
Total obligations under the Tax Receivable Agreement	$	246,878	$	235,613

During the twenty-six weeks ended June 26, 2024 and June 28, 2023, inclusive of interest, no payments were made to the parties to the Tax Receivable Agreement.

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EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 26, 2024

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

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 (in thousands, except per share amounts):

			Thirteen Weeks Ended				Twenty-Six Weeks Ended
			June 26 2024		June 28 2023		June 26 2024		June 28 2023
Numerator:
	Net income attributable to Shake Shack Inc.—basic		$	9,668	$	6,948	$	11,708	$	5,414
	Reallocation of net income attributable to non-controlling interests from the assumed conversion of Class B shares		—		275		—		187
	Net income attributable to Shake Shack Inc.—diluted		$	9,668	$	7,223	$	11,708	$	5,601
Denominator:
	Weighted average shares of Class A common stock outstanding—basic		39,750		39,416		39,632		39,374
	Effect of dilutive securities:
		Stock options	60		79		65		79
		Performance stock units	63		6		39		11
		Restricted stock units	140		73		166		58
		Convertible Notes	1,467		1,467		1,467		1,467
		Shares of Class B common stock	—		2,845		—		2,848
	Weighted average shares of Class A common stock outstanding—diluted		41,480		43,886		41,369		43,837
Earnings per share of Class A common stock—basic			$	0.24	$	0.18	$	0.30	$	0.14
Earnings per share of Class A common stock—diluted			$	0.23	$	0.16	$	0.28	$	0.13

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 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 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 per share, except when the effect would be anti-dilutive.

The following table presents potentially dilutive securities excluded from the computations of diluted earnings per share of Class A common stock:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Performance stock units	121,131	(1)	109,749	(1)	121,131	(1)	109,749	(1)
Shares of Class B common stock	2,487,936	(2)	—		2,487,936	(2)	—

(1)Number of securities outstanding at the end of the period that were 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.

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

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SUPPLEMENTAL CASH FLOW INFORMATION

6 Months Ended

Jun. 26, 2024

Cash and Cash Equivalents [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

The following table sets forth supplemental cash flow information:

		Twenty-Six Weeks Ended
		June 26 2024		June 28 2023
Cash paid for:
	Income taxes, net of refunds	$	3,696	$	1,877
	Interest, net of amounts capitalized	493		185
Non-cash investing activities:
	Accrued purchases of property and equipment	19,749		26,178
	Capitalized equity-based compensation	107		92
Non-cash financing activities:
	Establishment of liabilities under Tax Receivable Agreement	11,265		468

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 26, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company is obligated under various operating leases for Shacks and the home office space, expiring in various years through 2045. Under certain of these leases, the Company is liable for contingent rent based on a percentage of sales in excess of specified thresholds and typically responsible for its proportionate share of real estate taxes, common area maintenance costs and other occupancy costs. Refer to Note 7, Leases, for additional information.

Certain leases require the Company to obtain letters of credit. As of June 26, 2024, the Company held three letters of credit, one for $402, which expires in August 2024 and renews automatically for one-year periods through January 2034, one for $163, which expires in December 2024 and renews automatically for one-year periods through December 2029 and one for $130 which expires in February 2026.

Purchase Commitments

Purchase obligations include legally binding contracts, including commitments for the purchase, construction or remodeling of real estate and facilities, firm minimum commitments for inventory purchases, equipment purchases, marketing-related contracts, software acquisition/license commitments and service contracts. These obligations are generally short-term in nature and are recorded as liabilities when the related goods are received or services rendered. The Company also enters into long-term, exclusive contracts with certain vendors to supply food, beverages and paper goods, obligating the Company to purchase specified quantities.

Legal Contingencies

The Company is subject to various legal proceedings, claims and liabilities, involving employees and guests alike, which arise in the ordinary course of business and are generally covered by insurance. As of June 26, 2024, the amount of the ultimate liability with respect to these matters was not material.

Liabilities under Tax Receivable Agreement

The Company is a party to the Tax Receivable Agreement under which it is contractually committed to pay certain of the members of SSE Holdings 85% of the amount of any tax benefits that are actually realized, or in some cases are deemed to realize, as a result of certain transactions. The Company is not obligated to make any payments under the Tax Receivable Agreement until the tax benefits associated with the transactions that gave rise to the payments are realized. Refer to Note 10, Income Taxes, for additional information relating to the Tax Receivable Agreement.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 26, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Union Square Hospitality Group

The Chairman of the Board of Directors serves as the Executive Chairman of Union Square Hospitality Group, LLC. As a result, Union Square Hospitality Group, LLC and its subsidiary, set forth below, are considered related parties.

Hudson Yards Sports and Entertainment

In fiscal 2011, Shake Shack entered into a Master License Agreement (as amended, "MLA") with Hudson Yards Sports and Entertainment LLC ("HYSE") to operate Shake Shack branded limited menu concession stands in sports and entertainment venues within the United States. In February 2019, the agreement was assigned to Hudson Yards Catering ("HYC"), the parent of HYSE. The agreement expires in January 2027 and includes five consecutive five-year renewal options at HYC's option. As consideration for these rights, HYC pays the Company a license fee based on a percentage of net food sales, as defined in the MLA. HYC also pays a percentage of profits on sales of branded beverages, as defined in the MLA.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts received from HYC	Licensing revenue	$	144	$	163	$	242	$	309

	Classification	June 26 2024		December 27 2023
Amounts due from HYC	Accounts receivable, net	$	218	$	57

Madison Square Park Conservancy

The Chairman of the Board of Directors serves as a director of the Madison Square Park Conservancy ("MSP Conservancy"), with which Shake Shack has a license agreement and pays license fees to operate the Madison Square Park Shack.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to MSP Conservancy	Occupancy and related expenses	$	229	$	224	$	458	$	448

	Classification	June 26 2024		December 27 2023
Amounts due to MSP Conservancy	Accrued expenses	$	20	$	—

Olo, Inc.

The Chairman of the Board of Directors serves as a director of Olo, Inc., a platform the Company uses in connection with its mobile ordering application.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to Olo, Inc.	Other operating expenses	$	133	$	143	$	314	$	267

	Classification	June 26 2024		December 27 2023
Amounts due to Olo, Inc.	Accounts payable Accrued expenses	$	222	$	116

Block, Inc.

The Company's former Chief Executive Officer is a member of the board of directors of Block, Inc. (formerly known as "Square, Inc."). The Company currently uses certain point-of-sale applications, payment processing services, hardware and other enterprise platform services in connection with its kiosk technology, sales for certain off-site events and the processing of a limited amount of sales at certain locations.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to Block, Inc.	Other operating expenses	$	3,170	$	1,909	$	5,875	$	3,585

	Classification	June 26 2024		December 27 2023
Amounts due to Block, Inc.	Accounts payable Accrued expenses	$	—	$	59

Tax Receivable Agreement

The Company entered into a Tax Receivable Agreement that provides for the payment by the Company of 85% of the amount of any tax benefits that are actually realized, or in some cases are deemed to realize, as a result of certain transactions. Refer to Note 10, Income Taxes, for additional information. No payments were made to the members of SSE Holdings pursuant to the Tax Receivable Agreement during the twenty-six weeks ended June 26, 2024 and June 28, 2023.

	Classification	June 26 2024		December 27 2023
Amounts due under the Tax Receivable Agreement	Other current liabilities Liabilities under Tax Receivable Agreement, net of current portion	$	246,878	$	235,613

Distributions to Members of SSE Holdings

Under the terms of the SSE Holdings LLC Agreement, SSE Holdings is obligated to make tax distributions to its members. No tax distributions were payable to non-controlling interest holders as of June 26, 2024 and December 27, 2023, respectively.

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to non-controlling interest holders	Non-controlling interests	$	—	$	3	$	145	$	52

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Pay vs Performance Disclosure
Net income attributable to Shake Shack Inc.	$ 9,668	$ 6,948	$ 11,708	$ 5,414

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Insider Trading Arrangements	3 Months Ended
	Jun. 26, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 26, 2024

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Shake Shack Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and on a basis consistent in all material respects with the accounting policies described in its Annual Report on Form 10-K for the fiscal year ended December 27, 2023 ("2023 Form 10-K"). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These interim Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes thereto included in its 2023 Form 10-K. In the Company's opinion, all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the financial position and results of operation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year.

SSE Holdings is considered a variable interest entity. Shake Shack Inc. is the primary beneficiary as the Company has the majority economic interest in SSE Holdings and, as the sole managing member, has decision making authority that significantly affects the economic performance of the entity, while the limited partners have no substantive kick-out or participating rights. As a result, the Company consolidates SSE Holdings. The assets and liabilities of SSE Holdings represent substantially all of the Company's consolidated assets and liabilities with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement. As of June 26, 2024 and December 27, 2023, the net assets of SSE Holdings were $409,417 and $388,250, respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreement.

Fiscal Year

Fiscal Year

The Company operates on a 52/53 week fiscal year ending on the last Wednesday of December. Fiscal 2024 contains 52 weeks and ends on December 25, 2024. Fiscal 2023 contained 52 weeks and ended on December 27, 2023. Unless otherwise stated, references to years in this report relate to fiscal years.

Use of Estimates

Use of Estimates

The preparation of these Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

The Company reviewed all recently issued accounting pronouncements and concluded that they were not applicable or not expected to have a significant impact on its Condensed Consolidated Financial Statements.

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REVENUE (Tables)

6 Months Ended

Jun. 26, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

Revenue disaggregated by type was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Shack sales	$	305,480	$	261,810	$	586,032	$	506,064
Licensing revenue:
Sales-based royalties	10,624		9,712		20,257		18,490
Initial territory and opening fees	392		283		711		529
Total revenue	$	316,496	$	271,805	$	607,000	$	525,083

Schedule of Contract with Customer, Asset and Liability

Contract liabilities and receivables from contracts with customers were as follows:

	June 26 2024		December 27 2023
Shack sales receivables	$	9,399	$	9,884
Licensing receivables, net of allowance for doubtful accounts	5,440		4,610
Gift card liability	2,047		2,603
Deferred revenue, current	1,328		1,192
Deferred revenue, long-term	16,777		17,157

Revenue recognized that was included in the respective liability balances at the beginning of the period was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Gift card liability	$	168	$	144	$	587	$	477
Deferred revenue	385		274		702		518

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 26, 2024

Fair Value Disclosures [Abstract]

Summary of Investment Holdings, Schedule of Investments

The Company's marketable securities were as follows:

	June 26 2024		December 27 2023
Held-to-maturity securities	$	2,574	$	68,561

Debt Securities, Held-to-Maturity

The Company's held-to-maturity securities were as follows:

	June 26, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Treasuries	$	2,574	$	456	$	—	$	3,030

Schedule of Other Income From Available for Sale Securities

A summary of other income (expense) from marketable securities was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Income from marketable securities	$	90	$	126	$	625	$	621
Realized gain on sale of equity securities	—		—		—		81
Total	$	90	$	126	$	625	$	702

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SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables)

6 Months Ended

Jun. 26, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

The components of Prepaid expenses and other current assets were as follows:

	June 26 2024		December 27 2023
Prepaid expenses	$	6,332	$	5,641
Tenant allowance receivables	12,465		12,136
Other	1,363		1,190
Prepaid expenses and other current assets	$	20,160	$	18,967

Other Current Liabilities

The components of Other current liabilities were as follows:

	June 26 2024		December 27 2023
Sales tax payable	$	6,220	$	6,076
Current portion of financing equipment lease liabilities	3,789		3,435
Gift card liability	2,047		2,603
Other	5,356		4,989
Other current liabilities	$	17,412	$	17,103

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DEBT (Tables)

6 Months Ended

Jun. 26, 2024

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amortization expense on Convertible Notes	Interest expense	$	262	$	262	$	524	$	524

	June 26 2024		December 27 2023
Convertible Notes	$	250,000	$	250,000
Discount and debt issuance costs, net of amortization	(3,840)		(4,364)
Long-term debt	$	246,160	$	245,636

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Interest expense on Revolving Credit Facility	Interest expense	$	17	$	22	$	34	$	46

	Classification	June 26 2024		December 27 2023
Unamortized deferred financing costs on Revolving Credit Facility	Other assets	$	33	$	42

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LEASES (Tables)

6 Months Ended

Jun. 26, 2024

Leases [Abstract]

Lease, Cost

A summary of operating and finance right-of-use assets and lease liabilities were as follows:

	Classification	June 26 2024		December 27 2023
Operating leases	Operating lease assets	$	419,527	$	398,296
Finance leases	Property and equipment, net	12,278		11,801
Total right-of-use assets		$	431,805	$	410,097
Operating leases:
	Operating lease liabilities, current	$	53,140	$	49,004
	Long-term operating lease liabilities	487,600		464,533
Finance leases:
	Other current liabilities	3,789		3,435
	Other long-term liabilities	8,969		8,721
Total lease liabilities		$	553,498	$	525,693

The components of lease expense were as follows:

			Thirteen Weeks Ended				Twenty-Six Weeks Ended
		Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Operating lease cost		Occupancy and related expenses Pre-opening costs General and administrative expenses	$	19,165	$	16,523	$	37,655	$	32,598
Finance lease cost:
	Amortization of right-of-use assets	Depreciation and amortization expense	1,075		703		2,043		1,440
	Interest on lease liabilities	Interest expense	207		72		387		142
Variable lease cost		Occupancy and related expenses Pre-opening costs General and administrative expenses	5,523		4,682		10,729		8,452
Short-term lease cost		Occupancy and related expenses	190		273		406		513
Total lease cost			$	26,160	$	22,253	$	51,220	$	43,145

		June 26 2024		December 27 2023
Weighted average remaining lease term (years):
	Operating leases	8.9		8.9
	Finance leases	4.7		4.7
Weighted average discount rate:
	Operating leases	6.2	%	6.2	%
	Finance leases	5.7	%	5.6	%

Supplemental cash flow information related to leases was as follows:

		Twenty-Six Weeks Ended
		June 26 2024		June 28 2023
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from operating leases	$	40,095	$	34,454
	Operating cash flows from finance leases	387		142
	Financing cash flows from finance leases	1,918		1,504
Right-of-use assets obtained in exchange for lease obligations:
	Operating leases	43,822		37,625
	Finance leases	2,520		1,408

Lessee, Operating Lease, Liability, Maturity

As of June 26, 2024, future minimum lease payments for operating and finance leases consisted of the following:

	Operating Leases		Finance Leases
2024(1)	$	29,716	$	2,306
2025	85,913		4,151
2026	86,224		3,397
2027	81,318		2,719
2028	76,993		1,493
Thereafter	342,271		228
Total minimum payments	702,435		14,294
Less: imputed interest	174,160		1,536
Total lease liabilities	$	528,275	$	12,758

(1)Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of June 26, 2024.

Finance Lease, Liability, Maturity

As of June 26, 2024, future minimum lease payments for operating and finance leases consisted of the following:

	Operating Leases		Finance Leases
2024(1)	$	29,716	$	2,306
2025	85,913		4,151
2026	86,224		3,397
2027	81,318		2,719
2028	76,993		1,493
Thereafter	342,271		228
Total minimum payments	702,435		14,294
Less: imputed interest	174,160		1,536
Total lease liabilities	$	528,275	$	12,758

(1)Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of June 26, 2024.

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NON-CONTROLLING INTERESTS (Tables)

6 Months Ended

Jun. 26, 2024

Noncontrolling Interest [Abstract]

Schedule of Ownership Interests in SSE Holdings

The following table summarizes the ownership interest in SSE Holdings:

	June 26, 2024			December 27, 2023
	LLC Interests	Ownership %		LLC Interests	Ownership %
Number of LLC Interests held by Shake Shack Inc.	39,966,973	94.1	%	39,474,315	93.3	%
Number of LLC Interests held by non-controlling interest holders	2,487,936	5.9	%	2,834,513	6.7	%
Total LLC Interests outstanding	42,454,909	100.0	%	42,308,828	100.0	%

Noncontrolling Interest, Ownership Percentages

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Non-controlling interest holders' weighted average ownership percentages	6.3	%	6.7	%	6.5	%	6.7	%

Schedule of Non-Controlling Interest

The following table summarizes the effects of changes in ownership of SSE Holdings on the Company's equity:

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
		June 26 2024		June 28 2023		June 26 2024		June 28 2023
Net income attributable to Shake Shack Inc.		$	9,668	$	6,948	$	11,708	$	5,414
Other comprehensive loss:
	Unrealized holding loss on foreign currency translation adjustment	—		—		(1)		(4)
Transfers (to) from non-controlling interests:
	Increase in additional paid-in capital as a result of the redemption of LLC Interests	2,953		—		3,239		194
	Increase (decrease) in additional paid-in capital as a result of activity under stock compensation plan	(320)		145		(5,897)		(2,554)
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.		$	12,301	$	7,093	$	9,049	$	3,050

Redemption of LLC Interests

The following table summarizes the LLC Interests activity:

		Thirteen Weeks Ended		Twenty-Six Weeks Ended
		June 26 2024	June 28 2023	June 26 2024	June 28 2023
LLC Interests activity under the Company's stock compensation plan
	Number of LLC Interests received by Shake Shack Inc.	18,514	44,341	146,081	139,248
Redemption and acquisition of LLC Interests
	Number of LLC Interests redeemed by non-controlling interest holders	313,077	—	346,577	25,000
	Number of LLC Interests received by Shake Shack Inc.	313,077	—	346,577	25,000
Issuance of Class A common stock
	Shares of Class A common stock issued in connection with redemptions of LLC Interests	313,077	—	346,577	25,000
Cancellation of Class B common stock
	Shares of Class B common stock surrendered and canceled	313,077	—	346,577	25,000

The following table summarizes the LLC Interests acquired by the Company:

	Thirteen Weeks Ended		Twenty-Six Weeks Ended
	June 26 2024	June 28 2023	June 26 2024	June 28 2023
LLC Interests activity under the Company's stock compensation plan	18,514	44,341	146,081	139,248
LLC Interests activity from redemptions of LLC Interests	313,077	—	346,577	25,000
Total LLC Interests acquired by the Company	331,591	44,341	492,658	164,248

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EQUITY-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 26, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Equity-Based Compensation Expense Recognized

A summary of equity-based compensation expense by award type was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Performance stock units	$	(505)	$	749	$	278	$	2,059
Restricted stock units	4,244		3,183		7,103		5,675
Equity-based compensation expense	$	3,739	$	3,932	$	7,381	$	7,734
Total income tax benefit recognized related to equity-based compensation	$	113	$	98	$	217	$	200

Equity-based compensation expense recognized was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
General and administrative expenses	$	3,317	$	3,562	$	6,633	$	7,091
Labor and related expenses	422		370		748		643
Equity-based compensation expense	$	3,739	$	3,932	$	7,381	$	7,734

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INCOME TAXES (Tables)

6 Months Ended

Jun. 26, 2024

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

The following table presents the Company’s effective income tax rates:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Effective income tax rates	23.4	%	4.6	%	22.7	%	17.8	%

Schedule Of Weighted Average Ownership Interest

The Company's weighted average ownership interest in SSE Holdings was as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Shake Shack's weighted average ownership percentages	93.7	%	93.3	%	93.5	%	93.3	%

Redemption of LLC Interests

The following table summarizes the LLC Interests activity:

		Thirteen Weeks Ended		Twenty-Six Weeks Ended
		June 26 2024	June 28 2023	June 26 2024	June 28 2023
LLC Interests activity under the Company's stock compensation plan
	Number of LLC Interests received by Shake Shack Inc.	18,514	44,341	146,081	139,248
Redemption and acquisition of LLC Interests
	Number of LLC Interests redeemed by non-controlling interest holders	313,077	—	346,577	25,000
	Number of LLC Interests received by Shake Shack Inc.	313,077	—	346,577	25,000
Issuance of Class A common stock
	Shares of Class A common stock issued in connection with redemptions of LLC Interests	313,077	—	346,577	25,000
Cancellation of Class B common stock
	Shares of Class B common stock surrendered and canceled	313,077	—	346,577	25,000

The following table summarizes the LLC Interests acquired by the Company:

	Thirteen Weeks Ended		Twenty-Six Weeks Ended
	June 26 2024	June 28 2023	June 26 2024	June 28 2023
LLC Interests activity under the Company's stock compensation plan	18,514	44,341	146,081	139,248
LLC Interests activity from redemptions of LLC Interests	313,077	—	346,577	25,000
Total LLC Interests acquired by the Company	331,591	44,341	492,658	164,248

Schedule of Deferred Tax Assets

Deferred tax assets related to the basis difference in the Company's investment in SSE Holdings were as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Deferred tax assets recognized upon acquisition of LLC Interests	$	7,263	$	(251)	$	10,577	$	573

	June 26 2024		December 27 2023
Total deferred tax assets related to the acquisition of LLC Interests	$	101,746	$	90,419

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Deferred tax assets recognized under the Tax Receivable Agreement	$	2,760	$	—	$	3,063	$	129

Schedule Of Obligations Under Tax Receivable Agreement

A summary of obligations under the Tax Receivable Agreement were as follows:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Additional liabilities recognized under the Tax Receivable Agreement	$	10,150	$	(4)	$	11,265	$	468

	June 26 2024		December 27 2023
Total obligations under the Tax Receivable Agreement	$	246,878	$	235,613

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EARNINGS (LOSS) PER SHARE (Tables)

6 Months Ended

Jun. 26, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

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 (in thousands, except per share amounts):

			Thirteen Weeks Ended				Twenty-Six Weeks Ended
			June 26 2024		June 28 2023		June 26 2024		June 28 2023
Numerator:
	Net income attributable to Shake Shack Inc.—basic		$	9,668	$	6,948	$	11,708	$	5,414
	Reallocation of net income attributable to non-controlling interests from the assumed conversion of Class B shares		—		275		—		187
	Net income attributable to Shake Shack Inc.—diluted		$	9,668	$	7,223	$	11,708	$	5,601
Denominator:
	Weighted average shares of Class A common stock outstanding—basic		39,750		39,416		39,632		39,374
	Effect of dilutive securities:
		Stock options	60		79		65		79
		Performance stock units	63		6		39		11
		Restricted stock units	140		73		166		58
		Convertible Notes	1,467		1,467		1,467		1,467
		Shares of Class B common stock	—		2,845		—		2,848
	Weighted average shares of Class A common stock outstanding—diluted		41,480		43,886		41,369		43,837
Earnings per share of Class A common stock—basic			$	0.24	$	0.18	$	0.30	$	0.14
Earnings per share of Class A common stock—diluted			$	0.23	$	0.16	$	0.28	$	0.13

The following table presents potentially dilutive securities excluded from the computations of diluted earnings per share of Class A common stock:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Performance stock units	121,131	(1)	109,749	(1)	121,131	(1)	109,749	(1)
Shares of Class B common stock	2,487,936	(2)	—		2,487,936	(2)	—

(1)Number of securities outstanding at the end of the period that were 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.

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

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SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

6 Months Ended

Jun. 26, 2024

Cash and Cash Equivalents [Abstract]

Schedule of Cash Flow Information

The following table sets forth supplemental cash flow information:

		Twenty-Six Weeks Ended
		June 26 2024		June 28 2023
Cash paid for:
	Income taxes, net of refunds	$	3,696	$	1,877
	Interest, net of amounts capitalized	493		185
Non-cash investing activities:
	Accrued purchases of property and equipment	19,749		26,178
	Capitalized equity-based compensation	107		92
Non-cash financing activities:
	Establishment of liabilities under Tax Receivable Agreement	11,265		468

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RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 26, 2024

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts received from HYC	Licensing revenue	$	144	$	163	$	242	$	309

	Classification	June 26 2024		December 27 2023
Amounts due from HYC	Accounts receivable, net	$	218	$	57

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to MSP Conservancy	Occupancy and related expenses	$	229	$	224	$	458	$	448

	Classification	June 26 2024		December 27 2023
Amounts due to MSP Conservancy	Accrued expenses	$	20	$	—

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to Olo, Inc.	Other operating expenses	$	133	$	143	$	314	$	267

	Classification	June 26 2024		December 27 2023
Amounts due to Olo, Inc.	Accounts payable Accrued expenses	$	222	$	116

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to Block, Inc.	Other operating expenses	$	3,170	$	1,909	$	5,875	$	3,585

	Classification	June 26 2024		December 27 2023
Amounts due to Block, Inc.	Accounts payable Accrued expenses	$	—	$	59

	Classification	June 26 2024		December 27 2023
Amounts due under the Tax Receivable Agreement	Other current liabilities Liabilities under Tax Receivable Agreement, net of current portion	$	246,878	$	235,613

		Thirteen Weeks Ended				Twenty-Six Weeks Ended
	Classification	June 26 2024		June 28 2023		June 26 2024		June 28 2023
Amounts paid to non-controlling interest holders	Non-controlling interests	$	—	$	3	$	145	$	52

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NATURE OF OPERATIONS (Details) - Restaurant	Jun. 26, 2024	Dec. 27, 2023
Class of Stock [Line Items]
Number of restaurants	547
Company-operated
Class of Stock [Line Items]
Number of restaurants	311
Licensed
Class of Stock [Line Items]
Number of restaurants	236
Shake Shack Inc.
Class of Stock [Line Items]
Ownership percent of noncontrolling interest	94.10%	93.30%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Jun. 26, 2024	Dec. 27, 2023
Variable Interest Entity [Line Items]
Net assets held by SSE holders	$ 1,661,758	$ 1,605,857
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Net assets held by SSE holders	$ 409,417	$ 388,250

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REVENUE - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Disaggregation of Revenue [Line Items]
Gift card breakage income	$ 110	$ 72	$ 244	$ 178
Revenue, remaining performance obligation	$ 22,978		$ 22,978
Minimum
Disaggregation of Revenue [Line Items]
License term	5 years		5 years
Maximum
Disaggregation of Revenue [Line Items]
License term	20 years		20 years

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REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 316,496	$ 271,805	$ 607,000	$ 525,083
Shack sales
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	305,480	261,810	586,032	506,064
Sales-based royalties
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	10,624	9,712	20,257	18,490
Initial territory and opening fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 392	$ 283	$ 711	$ 529

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REVENUE - Schedule of Respective Liability Balances (Details) - USD ($) $ in Thousands	Jun. 26, 2024	Dec. 27, 2023
Disaggregation of Revenue [Line Items]
Gift card liability	$ 2,047	$ 2,603
Deferred revenue, current	1,328	1,192
Deferred revenue, long-term	16,777	17,157
Shack sales
Disaggregation of Revenue [Line Items]
Contract with customer, asset, net	9,399	9,884
Licensing receivables, net of allowance for doubtful accounts
Disaggregation of Revenue [Line Items]
Contract with customer, asset, net	$ 5,440	$ 4,610

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REVENUE - Liability Balance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Revenue from Contract with Customer [Abstract]
Gift card liability	$ 168	$ 144	$ 587	$ 477
Deferred revenue	$ 385	$ 274	$ 702	$ 518

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FAIR VALUE MEASUREMENTS - Investments (Details) - USD ($) $ in Thousands	Jun. 26, 2024	Dec. 27, 2023
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities	$ 2,574	$ 68,561

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FAIR VALUE MEASUREMENTS - Held-To-Maturity Securities (Details) - U.S. Treasuries - USD ($) $ in Thousands	Jun. 26, 2024	Dec. 27, 2023
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	$ 2,574	$ 68,561
Gross Unrealized Gains	456
Gross Unrealized Losses	0
Estimated Fair Value	$ 3,030

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FAIR VALUE MEASUREMENTS - Other Income (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Fair Value Disclosures [Abstract]
Income from marketable securities	$ 90	$ 126	$ 625	$ 621
Realized gain on sale of equity securities	0	0	0	81
Total	$ 90	$ 126	$ 625	$ 702

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FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Fair Value Disclosures [Abstract]
Asset impairment charges	$ 0	$ 0	$ 0	$ 0

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SUPPLEMENTAL BALANCE SHEET INFORMATION - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 26, 2024	Dec. 27, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 6,332	$ 5,641
Tenant allowance receivables	12,465	12,136
Other	1,363	1,190
Prepaid expenses and other current assets	$ 20,160	$ 18,967

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SUPPLEMENTAL BALANCE SHEET INFORMATION - Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 26, 2024	Dec. 27, 2023
Other Liabilities, Current
Sales tax payable	$ 6,220	$ 6,076
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Current portion of financing equipment lease liabilities	$ 3,789	$ 3,435
Gift card liability	2,047	2,603
Other	5,356	4,989
Other current liabilities	$ 17,412	$ 17,103

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DEBT - Convertible Notes (Details) $ / shares in Units, $ in Thousands	1 Months Ended
	Mar. 31, 2021 USD ($) d $ / shares shares	Jun. 26, 2024 USD ($) $ / shares	Dec. 27, 2023 USD ($) $ / shares
Class A Common Stock
Debt Instrument [Line Items]
Common stock par value (in dollars per share) | $ / shares		$ 0.001	$ 0.001
0% Convertible Senior Notes Due 2028 | Senior Notes | Private Placement
Debt Instrument [Line Items]
Aggregate principal amount | $	$ 250,000
Interest rate (in percent)	0.00%
Conversion rate | shares	5,867.9000
Conversion price (in dollars per share) | $ / shares	$ 170,420
Fair value of convertible notes | $		$ 214,375	$ 205,000
0% Convertible Senior Notes Due 2028 | Senior Notes | Private Placement | Debt Conversion, Condition One
Debt Instrument [Line Items]
Threshold trading days	20
Threshold consecutive trading days	30
Threshold percentage of stock price trigger (in percent)	130.00%
0% Convertible Senior Notes Due 2028 | Senior Notes | Private Placement | Debt Conversion, Condition One | Class A Common Stock
Debt Instrument [Line Items]
Common stock par value (in dollars per share) | $ / shares	$ 0.001
0% Convertible Senior Notes Due 2028 | Senior Notes | Private Placement | Debt Conversion, Condition Two
Debt Instrument [Line Items]
Threshold consecutive trading days	10
Threshold percentage of stock price trigger (in percent)	98.00%
Threshold business days	5

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DEBT - Convertible Notes Classification (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023	Dec. 27, 2023
Debt Instrument [Line Items]
Amortization expense on Convertible Notes			$ 524	$ 524
Long-term debt	$ 246,160		246,160		$ 245,636
0% Convertible Senior Notes Due 2028 | Senior Notes | Private Placement
Debt Instrument [Line Items]
Amortization expense on Convertible Notes	262	$ 262	524	$ 524
Convertible Notes	250,000		250,000		250,000
Discount and debt issuance costs, net of amortization	(3,840)		(3,840)		(4,364)
Long-term debt	$ 246,160		$ 246,160		$ 245,636

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DEBT - Revolving Credit Facility (Details) - Revolving Credit Facility - Line of Credit - USD ($)	3 Months Ended
	Mar. 27, 2024	Jun. 26, 2024	Dec. 27, 2023
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 50,000,000
Incremental borrowing capacity		100,000,000
Outstanding amount under credit facility		0	$ 0
Third Amendment and Restated Credit Arrangement
Line of Credit Facility [Line Items]
Maximum borrowing capacity		15,000,000
Letters of credit outstanding		$ 3,310,000	$ 3,147,000
Minimum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate (in percent)	0.00%
Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate (in percent)	1.00%
Maximum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate (in percent)	1.50%
Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate (in percent)	2.50%

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DEBT - Revolving Credit Facility Classification (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023	Dec. 27, 2023
Debt Instrument [Line Items]
Interest expense	$ 527	$ 405	$ 1,035	$ 808
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Interest expense	17	$ 22	34	$ 46
Unamortized debt issuance cost	$ 33		$ 33		$ 42

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LEASES - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 26, 2024 USD ($) option
Operating Leased Assets [Line Items]
Number of renewal options | option	2
Renewal term	5 years
Operating lease for non-cancellable leases | $	$ 134,340
Minimum
Operating Leased Assets [Line Items]
Term of contract	10 years
Maximum
Operating Leased Assets [Line Items]
Term of contract	15 years

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LEASES - Balance Sheet Clasification (Details) - USD ($) $ in Thousands	Jun. 26, 2024	Dec. 27, 2023
Leases [Abstract]
Operating lease assets	$ 419,527	$ 398,296
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Operating lease assets	Operating lease assets
Finance lease right-of-use asset	$ 12,278	$ 11,801
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net of accumulated depreciation of $425,428 and $376,760, respectively	Property and equipment, net of accumulated depreciation of $425,428 and $376,760, respectively
Total right-of-use assets	$ 431,805	$ 410,097
Operating leases:
Operating lease liabilities, current	53,140	49,004
Long-term operating lease liabilities	487,600	464,533
Finance leases:
Other current liabilities	3,789	3,435
Other long-term liabilities	8,969	8,721
Total lease liabilities	$ 553,498	$ 525,693

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LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Total lease cost
Operating lease cost	$ 19,165	$ 16,523	$ 37,655	$ 32,598
Amortization of right-of-use assets	1,075	703	2,043	1,440
Interest on lease liabilities	207	72	387	142
Variable lease cost	5,523	4,682	10,729	8,452
Short-term lease cost	190	273	406	513
Total lease cost	$ 26,160	$ 22,253	$ 51,220	$ 43,145

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LEASES - Future Minimum Lease Payments (Details) $ in Thousands	Jun. 26, 2024 USD ($)
Operating Leases
2024	$ 29,716
2025	85,913
2026	86,224
2027	81,318
2028	76,993
Thereafter	342,271
Total minimum payments	702,435
Less: imputed interest	174,160
Total lease liabilities	528,275
Finance Leases
2024	2,306
2025	4,151
2026	3,397
2027	2,719
2028	1,493
Thereafter	228
Total minimum payments	14,294
Less: imputed interest	1,536
Total lease liabilities	$ 12,758

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LEASES - Lease Terms and Discount Rates (Details)	Jun. 26, 2024	Dec. 27, 2023
Weighted average remaining lease term (years):
Operating leases	8 years 10 months 24 days	8 years 10 months 24 days
Finance leases	4 years 8 months 12 days	4 years 8 months 12 days
Weighted average discount rate:
Operating leases	6.20%	6.20%
Finance leases	5.70%	5.60%

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LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 40,095	$ 34,454
Operating cash flows from finance leases	387	142
Financing cash flows from finance leases	1,918	1,504
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	43,822	37,625
Finance leases	$ 2,520	$ 1,408

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NON-CONTROLLING INTERESTS - Narrative (Details)	Feb. 04, 2015
Class A Common Stock
Noncontrolling Interest [Line Items]
Ratio of common stock to limited liability company interest	1

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NON-CONTROLLING INTERESTS - Ownership Interest in SSE Holdings (Details) - shares	Jun. 26, 2024	Dec. 27, 2023
Noncontrolling Interest [Line Items]
Number of LLC Interests held by Shake Shack Inc. (in shares)	39,966,973	39,474,315
Number of LLC Interests held by non-controlling interest holders (in shares)	2,487,936	2,834,513
Total LLC Interests outstanding (in shares)	42,454,909	42,308,828
Total LLC Interests outstanding (as a percentage)	100.00%	100.00%
Shake Shack Inc.
Noncontrolling Interest [Line Items]
Number of LLC Interests held by Shake Shack Inc. (as a percentage)	94.10%	93.30%
Non-Controlling Interest Holders
Noncontrolling Interest [Line Items]
Number of LLC Interests held by non-controlling interest holders (as a percentage)	5.90%	6.70%

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NON-CONTROLLING INTERESTS - Weighted Average Ownership Percentages (Details)	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Noncontrolling Interest [Abstract]
Non-controlling interest holders' weighted average ownership percentages	6.30%	6.70%	6.50%	6.70%

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NON-CONTROLLING INTERESTS - Changes in Ownership Interests in SSE Holdings (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 26, 2024		Jun. 28, 2023		Jun. 26, 2024	Jun. 28, 2023
Noncontrolling Interest [Line Items]
Net income attributable to Shake Shack Inc.	$ 9,668		$ 6,948		$ 11,708	$ 5,414
Other comprehensive loss:
Net change in foreign currency translation adjustment	0	[1]	0	[1]	(1)	(4)
Transfers (to) from non-controlling interests:
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.	12,301		7,093		9,049	3,050
Unrealized holding gains on equity securities
Other comprehensive loss:
Net change in foreign currency translation adjustment	0		0		(1)	(4)
Additional Paid-In Capital | Redemption or Exchange of Units
Transfers (to) from non-controlling interests:
Increase (decrease) in additional paid-in capital	2,953		0		3,239	194
Additional Paid-In Capital | Employee Stock Option
Transfers (to) from non-controlling interests:
Increase (decrease) in additional paid-in capital	$ (320)		$ 145		$ (5,897)	$ (2,554)

[1] Net of tax expense of $0 for the thirteen and twenty-six weeks ended June 26, 2024 and June 28, 2023.

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NON-CONTROLLING INTERESTS - Redemption of LLC Interests (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Limited Liability Company
Class of Stock [Line Items]
Number of LLC Interests received by Shake Shack Inc. (in shares)	331,591	44,341	492,658	164,248
Number of units redeemed (in shares)	313,077	0	346,577	25,000
Stock options | Limited Liability Company
Class of Stock [Line Items]
Number of LLC Interests received by Shake Shack Inc. (in shares)	18,514	44,341	146,081	139,248
Redemptions by NCI Holders | Limited Liability Company
Class of Stock [Line Items]
Number of units redeemed (in shares)	313,077	0	346,577	25,000
Common Stock | Class A Common Stock
Class of Stock [Line Items]
Shares of Class A common stock issued in connection with redemptions of LLC Interests (in shares)	313,077	0	346,577	25,000
Common Stock | Class B Common Stock
Class of Stock [Line Items]
Shares of Class A common stock issued in connection with redemptions of LLC Interests (in shares)	(313,077)	0	(346,577)	(25,000)
Shares of Class B common stock surrendered and canceled (in shares)	313,077	0	346,577	25,000

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EQUITY-BASED COMPENSATION - Schedule of compensation expense recognized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 3,739	$ 3,932	$ 7,381	$ 7,734
Total income tax benefit recognized related to equity-based compensation	113	98	217	200
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	(505)	749	278	2,059
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	4,244	3,183	7,103	5,675
General and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	3,317	3,562	6,633	7,091
Labor and related expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 422	$ 370	$ 748	$ 643

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INCOME TAXES - Effective Income Tax Rates (Details)	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Income Tax Disclosure [Abstract]
Effective income tax rates (in percentage)	23.40%	4.60%	22.70%	17.80%

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INCOME TAXES - Weighted Average Ownership Interest (Details)	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Income Tax Disclosure [Abstract]
Shake Shack's weighted average ownership percentages (in percent)	93.70%	93.30%	93.50%	93.30%

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INCOME TAXES - LLC Interests Acquired By The Company (Details) - Limited Liability Company - shares	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Income Tax Contingency [Line Items]
Total LLC Interests acquired by the Company (in shares)	331,591	44,341	492,658	164,248
LLC Interests activity from redemptions of LLC Interests	313,077	0	346,577	25,000
Stock options
Income Tax Contingency [Line Items]
Total LLC Interests acquired by the Company (in shares)	18,514	44,341	146,081	139,248

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INCOME TAXES - Deferred Tax Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Income Tax Contingency [Line Items]
Deferred tax assets recognized upon acquisition of LLC Interests	$ 7,263	$ (251)	$ 10,577	$ 573
Deferred tax assets recognized under the Tax Receivable Agreement	2,760	0	3,063	129
Limited Liability Company
Income Tax Contingency [Line Items]
Total deferred tax assets related to the acquisition of LLC Interests	$ 101,746	$ 90,419	$ 101,746	$ 90,419

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INCOME TAXES - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023
Income Tax Contingency [Line Items]
Percentage of tax benefits due to equity owners	85.00%
Percentage of tax benefits expected to be realized	15.00%
Payments to related parties	$ 0	$ 0
Foreign Tax Credit
Income Tax Contingency [Line Items]
Deferred tax assets, valuation allowance	$ 0

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INCOME TAXES - Obligations Under Tax Receivable Agreement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023	Dec. 27, 2023
Income Tax Disclosure [Abstract]
Additional liabilities recognized under the Tax Receivable Agreement	$ 10,150	$ (4)	$ 11,265	$ 468
Total obligations under the Tax Receivable Agreement, current and noncurrent	246,878		246,878
Total obligations under the Tax Receivable Agreement, noncurrent	$ 246,878		$ 246,878		$ 235,613

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EARNINGS (LOSS) PER SHARE - Schedule of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Numerator:
Net income attributable to Shake Shack Inc.—basic	$ 9,668	$ 6,948	$ 11,708	$ 5,414
Reallocation of net income attributable to non-controlling interests from the assumed conversion of Class B shares	714	275	888	187
Net income attributable to Shake Shack Inc.—diluted	$ 9,668	$ 7,223	$ 11,708	$ 5,601
Denominator:
Weighted average shares of Class A common stock outstanding—basic	39,750	39,416	39,632	39,374
Effect of dilutive securities:
Weighted average shares of Class A common stock outstanding—diluted	41,480	43,886	41,369	43,837
Earnings per share of Class A common stock—basic (in dollars per share)	$ 0.24	$ 0.18	$ 0.30	$ 0.14
Earnings per share of Class A common stock—diluted (in dollars per share)	$ 0.23	$ 0.16	$ 0.28	$ 0.13
Performance stock units
Effect of dilutive securities:
Incremental common shares (in shares)	63	6	39	11
Restricted stock units
Effect of dilutive securities:
Incremental common shares (in shares)	140	73	166	58
Convertible Notes
Effect of dilutive securities:
Incremental common shares (in shares)	1,467	1,467	1,467	1,467
Class B Common Stock
Numerator:
Reallocation of net income attributable to non-controlling interests from the assumed conversion of Class B shares	$ 0	$ 275	$ 0	$ 187
Effect of dilutive securities:
Incremental common shares (in shares)	0	2,845	0	2,848
Stock options
Effect of dilutive securities:
Incremental common shares (in shares)	60	79	65	79

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EARNINGS (LOSS) PER SHARE - Antidilutive Securities (Details) - Common Stock - shares	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	121,131	109,749	121,131	109,749
Shares of Class B common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	2,487,936	0	2,487,936	0

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SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Cash paid for:
Income taxes, net of refunds			$ 3,696	$ 1,877
Interest, net of amounts capitalized			493	185
Non-cash investing activities:
Accrued purchases of property and equipment			19,749	26,178
Capitalized equity-based compensation			107	92
Non-cash financing activities:
Establishment of liabilities under Tax Receivable Agreement	$ 10,150	$ (4)	$ 11,265	$ 468

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COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 26, 2024 USD ($)
Loss Contingencies [Line Items]
Percentage of tax benefits due to equity owners	85.00%
Letter Of Credit, Expiring August 2024
Loss Contingencies [Line Items]
Letters of credit outstanding	$ 402
Letter Of Credit, Expiring December 2024
Loss Contingencies [Line Items]
Letters of credit outstanding	163
Letter Of Credit - Expiring December February 2026
Loss Contingencies [Line Items]
Letters of credit outstanding	$ 130

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RELATED PARTY TRANSACTIONS - Additional Information (Details)	6 Months Ended
	Jun. 26, 2024 USD ($) renewal_option	Jun. 28, 2023 USD ($)
Related Party Transaction [Line Items]
Percentage of tax benefits due to equity owners	85.00%
Payments to related parties | $	$ 0	$ 0
Related Party | Hudson Yards Catering ("HYC")
Related Party Transaction [Line Items]
Master license agreement, number of renewal terms | renewal_option	5
Renewal option period	5 years

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RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023	Dec. 27, 2023
Related Party Transaction [Line Items]
Revenue from contract with customer	$ 316,496,000	$ 271,805,000	$ 607,000,000	$ 525,083,000
Accounts receivable, net	15,914,000		15,914,000		$ 16,847,000
Occupancy and related expenses	23,226,000	19,801,000	45,414,000	38,384,000
Accrued expenses	56,376,000		56,376,000		54,742,000
Other operating expenses	43,953,000	36,109,000	85,809,000	71,045,000
Accounts payable	18,576,000		18,576,000		22,273,000
Hudson Yards Catering ("HYC") | Related Party
Related Party Transaction [Line Items]
Revenue from contract with customer	144,000	163,000	242,000	309,000
Accounts receivable, net	218,000		218,000		57,000
Madison Square Park Conservancy ("MSP Conservancy") | Related Party
Related Party Transaction [Line Items]
Occupancy and related expenses	229,000	224,000	458,000	448,000
Accrued expenses	20,000		20,000		0
Olo, Inc. | Related Party
Related Party Transaction [Line Items]
Other operating expenses	133,000	143,000	314,000	267,000
Accounts payable	222,000		222,000		116,000
Block, Inc. | Related Party
Related Party Transaction [Line Items]
Other operating expenses	3,170,000	$ 1,909,000	5,875,000	$ 3,585,000
Accounts payable	$ 0		$ 0		$ 59,000

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RELATED PARTY TRANSACTIONS - Tax Receivable Agreement (Details) - USD ($) $ in Thousands	Jun. 26, 2024	Dec. 27, 2023
Related Party Transactions [Abstract]
Liabilities under tax receivable agreement, net of current portion	$ 246,878	$ 235,613

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RELATED PARTY TRANSACTIONS - Distributions to Members of SSE Holdings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 28, 2023	Jun. 26, 2024	Jun. 28, 2023
Related Party Transactions [Abstract]
Distributions paid to non-controlling interest holders	$ 0	$ 3	$ 145	$ 52