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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 March 30, 2022
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
shak-20220330_g1.jpg
SHAKE SHACK INC.
(Exact name of registrant as specified in its charter)
Delaware47-1941186
(State or other jurisdiction of
incorporation or organization)
(IRS Employer
Identification No.)
225 Varick Street
Suite 301
New York,New York10014
(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 $0.001SHAKNew 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 FilerAccelerated 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 April 27, 2022, there were 39,223,790 shares of Class A common stock outstanding and 2,906,587 shares of Class B common stock outstanding.



SHAKE SHACK INC.
TABLE OF CONTENTS



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 our growth, strategic plan, and our 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," "outlook," "potential," "project," "projection," "plan," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," 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 continuing impact of the COVID-19 pandemic, including the potential impact of any COVID-19 variants, 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 our products, increased labor costs or shortages, inflationary pressures, the Company's management of its digital capabilities and expansion into new channels, including drive-thru, our ability to maintain and grow sales at our existing Shacks, and risks relating to the restaurant industry generally. 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 29, 2021 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. shak-20220330_g2.jpg Form 10-Q | 1

PART I – FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited).
2 | Shake Shack Inc. shak-20220330_g2.jpg Form 10-Q

SHAKE SHACK INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and per share amounts)
March 30
2022
December 29
2021
ASSETS
Current assets:
Cash and cash equivalents$279,251 $302,406 
Marketable securities79,676 80,000 
Accounts receivable, net11,755 13,657 
Inventories3,780 3,850 
Prepaid expenses and other current assets12,155 9,763 
Total current assets386,617 409,676 
Property and equipment, net of accumulated depreciation of $236,933 and $222,768, respectively
398,971 389,386 
Operating lease assets346,128 347,277 
Deferred income taxes, net304,166 298,668 
Other assets13,846 12,563 
TOTAL ASSETS$1,449,728 $1,457,570 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$13,395 $19,947 
Accrued expenses38,997 36,892 
Accrued wages and related liabilities16,032 14,638 
Operating lease liabilities, current36,951 35,519 
Other current liabilities20,586 14,501 
Total current liabilities125,961 121,497 
Long-term debt243,804 243,542 
Long-term operating lease liabilities399,487 400,113 
Liabilities under tax receivable agreement, net of current portion234,273 234,045 
Other long-term liabilities20,944 22,773 
Total liabilities1,024,469 1,021,970 
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of March 30, 2022 and December 29, 2021.  
Class A common stock, $0.001 par value—200,000,000 shares authorized; 39,218,290 and
39,142,397 shares issued and outstanding as of March 30, 2022 and December 29, 2021, respectively.
39 39 
Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,911,587 and
2,921,587 shares issued and outstanding as of March 30, 2022 and December 29, 2021, respectively.
3 3 
Additional paid-in capital406,981 405,940 
Retained earnings (accumulated deficit)(6,608)3,554 
Accumulated other comprehensive income (loss) 1 
Total stockholders' equity attributable to Shake Shack Inc.400,415 409,537 
Non-controlling interests24,844 26,063 
Total equity425,259 435,600 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,449,728 $1,457,570 
See accompanying Notes to Condensed Consolidated Financial Statements.
Shake Shack Inc. shak-20220330_g2.jpg Form 10-Q | 3

SHAKE SHACK INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
(in thousands, except per share amounts)
Thirteen Weeks Ended
March 30
2022
March 31
2021
Shack sales$196,791 $150,668 
Licensing revenue6,600 4,614 
TOTAL REVENUE203,391 155,282 
Shack-level operating expenses:
Food and paper costs59,884 44,630 
Labor and related expenses60,465 46,382 
Other operating expenses30,237 23,144 
Occupancy and related expenses16,276 13,911 
General and administrative expenses31,320 19,565 
Depreciation and amortization expense16,855 13,726 
Pre-opening costs2,712 3,576 
Impairment and loss on disposal of assets577 369 
TOTAL EXPENSES218,326 165,303 
LOSS FROM OPERATIONS(14,935)(10,021)
Other income (expense), net(289)31 
Interest expense(355)(515)
LOSS BEFORE INCOME TAXES(15,579)(10,505)
Benefit from income taxes(4,297)(11,080)
NET INCOME (LOSS)(11,282)575 
Less: Net loss attributable to non-controlling interests(1,120)(734)
NET INCOME (LOSS) ATTRIBUTABLE TO SHAKE SHACK INC.$(10,162)$1,309 
Earnings (loss) per share of Class A common stock:
Basic$(0.26)$0.03 
Diluted$(0.26)$0.01 
Weighted average shares of Class A common stock outstanding:
Basic39,163 38,948 
Diluted39,163 42,789 
See accompanying Notes to Condensed Consolidated Financial Statements.



4 | Shake Shack Inc. shak-20220330_g2.jpg Form 10-Q

SHAKE SHACK INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
(in thousands)
Thirteen Weeks Ended
March 30
2022
March 31
2021
Net income (loss)$(11,282)$575 
Other comprehensive loss, net of tax(1):
Change in foreign currency translation adjustment(1)(1)
Net change(1)(1)
OTHER COMPREHENSIVE LOSS(1)(1)
COMPREHENSIVE INCOME (LOSS)(11,283)574 
Less: Comprehensive loss attributable to non-controlling interests(1,120)(734)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHAKE SHACK INC.$(10,163)$1,308 
(1)Net of tax expense of $0 for the thirteen weeks ended March 30, 2022 and March 31, 2021.
See accompanying Notes to Condensed Consolidated Financial Statements.
Shake Shack Inc. shak-20220330_g2.jpg Form 10-Q | 5

SHAKE SHACK INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(UNAUDITED)
(in thousands, except share amounts)
For the Thirteen Weeks Ended March 30, 2022 and March 31, 2021
Class A
Common Stock
Class B
Common Stock
Additional
Paid-In
Capital
Retained Earnings (Accumulated Deficit)Accumulated Other Comprehensive IncomeNon-
Controlling
Interest
Total
Equity
SharesAmountSharesAmount
BALANCE, DECEMBER 29, 202139,142,397 $39 2,921,587 $3 $405,940 $3,554 $1 $26,063 $435,600 
Net income (loss)(10,162)(1,120)(11,282)
Other comprehensive income (loss):
Net change in foreign currency translation adjustment(1)(1)
Equity-based compensation3,224 3,224 
Activity under stock compensation plans65,893 (2,276)252 (2,024)
Redemption of LLC Interests10,000 (10,000)49 (49) 
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis44 44 
Distributions paid to non-controlling interest holders(302)(302)
BALANCE, MARCH 30, 202239,218,290 $39 2,911,587 $3 $406,981 $(6,608)$ $24,844 $425,259 
BALANCE, DECEMBER 30, 202038,717,790 $39 2,951,188 $3 $395,067 $12,209 $3 $27,172 $434,493 
Net income (loss)1,309 (734)575 
Other comprehensive income (loss):
Net change in foreign currency translation adjustment(1)(1)
Equity-based compensation1,696 1,696 
Activity under stock compensation plans355,849 3,359 82 3,441 
Redemption of LLC Interests29,600 (29,600)36 (36) 
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis213 213 
Distributions paid to non-controlling interest holders(467)(467)
BALANCE, MARCH 31, 202139,103,239 $39 2,921,588 $3 $400,371 $13,518 $2 $26,017 $439,950 
See accompanying Notes to Condensed Consolidated Financial Statements.
6 | Shake Shack Inc. shak-20220330_g2.jpg Form 10-Q

SHAKE SHACK INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Thirteen Weeks Ended
March 30
2022
March 31
2021
OPERATING ACTIVITIES
Net income (loss) (including amounts attributable to non-controlling interests)$(11,282)$575 
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization expense16,855 13,726 
Amortization of debt issuance costs262 86 
Amortization of cloud computing asset332 313 
Non-cash operating lease cost13,681 12,330 
Equity-based compensation3,188 1,681 
Deferred income taxes5,719 (1,523)
Non-cash interest expense5 337 
Impairment and loss on disposal of assets577 369 
Unrealized loss on equity securities400 46 
Other non-cash income(1)(1)
Changes in operating assets and liabilities:
Accounts receivable1,902 626 
Inventories70 154 
Prepaid expenses and other current assets(2,392)(731)
Other assets(2,111)(216)
Accounts payable(2,862)1,474 
Accrued expenses(10,369)(9,420)
Accrued wages and related liabilities1,394 2,865 
Other current liabilities5,312 (158)
Long-term operating lease liabilities(11,726)(10,754)
Other long-term liabilities(985)(1,828)
NET CASH PROVIDED BY OPERATING ACTIVITIES7,969 9,951 
INVESTING ACTIVITIES
Purchases of property and equipment(27,974)(23,155)
Purchases of marketable securities(77)(4,073)
NET CASH USED IN INVESTING ACTIVITIES(28,051)(27,228)
FINANCING ACTIVITIES
Proceeds from issuance of convertible notes, net of discount 243,750 
Deferred financing costs (70)
Payments on principal of finance leases(747)(602)
Distributions paid to non-controlling interest holders(302)(467)
Debt issuance costs (649)
Proceeds from stock option exercises84 6,451 
Employee withholding taxes related to net settled equity awards(2,108)(3,010)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES(3,073)245,403 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS(23,155)228,126 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD302,406 146,873 
CASH AND CASH EQUIVALENTS AT END OF PERIOD$279,251 $374,999 
See accompanying Notes to Condensed Consolidated Financial Statements.
Shake Shack Inc. shak-20220330_g2.jpg Form 10-Q | 7

SHAKE SHACK INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts)
8 | Shake Shack Inc. shak-20220330_g2.jpg Form 10-Q

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 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 March 30, 2022 the Company owned 93.1% 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 March 30, 2022, there were 382 Shacks in operation, system-wide, of which 225 were domestic Company-operated Shacks, 27 were domestic licensed Shacks and 130 were international 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 29, 2021 ("2021 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 such rules and regulations. These interim Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes thereto included in its 2021 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 March 30, 2022 and December 29, 2021, the net assets of SSE Holdings were $363,632 and $376,857, respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreement. Refer to Note 6, Debt, for additional information.
Fiscal Year
The Company operates on a 52/53 week fiscal year ending on the last Wednesday in December. Fiscal 2022 contains 52 weeks and ends on December 28, 2022. Fiscal 2021 contained 52 weeks and ended on December 29, 2021. 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.
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Recently Adopted Accounting Pronouncements
The Company adopted the Accounting Standards Updates (“ASUs”) summarized below in fiscal 2022.
Accounting Standards UpdateDescriptionDate
Adopted
Government Assistance (Topic 832)—Disclosures by Business Entities about Government Assistance

(ASU 2021-10)
This ASU requires certain disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about the types of transactions, the accounting for the transactions and the effect of the transactions on an entity’s financial statements.

The guidance of this ASU is primarily related to disclosures of certain transactions with a government and therefore did not have a material impact on the financial statements. Refer to Note 10, Income Taxes, for disclosure of our accounting for the Employee Retention Credit received.
December 30, 2021
NOTE 3: REVENUE
Revenue Recognition
Revenue consists of Shack sales and Licensing revenue. Generally, revenue is recognized as promised goods or services transfer to the guest or customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. 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.
Sales tax collected from guests is excluded from Shack sales and the obligation is included in sales tax payable until the taxes are remitted to the appropriate taxing authorities. Revenue from gift cards is deferred and recognized over time as redemptions occur.
During fiscal 2022, we concluded we have accumulated a sufficient level of historical data from a large pool of homogeneous transactions to allow us to reasonably and objectively determine an estimated gift card breakage rate and the pattern of actual gift card redemptions. Accordingly, we will begin to recognize breakage income and reduce the related gift card liability for unredeemed gift cards in proportion to actual redemptions of gift cards. We will continue to review historical gift card redemption information at each reporting period to assess the continued appropriateness of the gift card breakage rate and pattern of redemption.
In accordance with ASC 250, Accounting Changes and Error Corrections, we concluded that this accounting change represented a change in accounting estimate. As a result, we recorded a cumulative catch-up adjustment during the thirteen weeks ended March 30, 2022 that resulted in $1,281 of gift card breakage income. Inclusive of this cumulative catch-up, we recognized $1,309 of gift card breakage income during the thirteen weeks ended March 30, 2022. Gift card breakage income is included in Shack sales in the Condensed Consolidated Statement of Income (Loss).
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 is comprised of the initial territory fee, and an estimate of the total Shack opening fees the Company expects to be entitled to. The calculation of total Shack opening fees included in the transaction price requires judgment, as it is based on an estimated number of Shacks the Company expects the licensee to open. The transaction price is then allocated equally to each Shack expected to open. Because the Company is transferring a license to access intellectual property throughout a contractual term, the performance obligation is satisfied over time, starting when a Shack opens, through the end of the term of the license granted to the 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
10 | Shake Shack Inc. shak-20220330_g2.jpg Form 10-Q

opening the related Shack. These payments are initially deferred and recognized as revenue as the performance obligations are satisfied, which occurs over a long-term period.
Revenue from sales-based royalties is recognized as the related sales occur.
Revenue recognized during the thirteen weeks ended March 30, 2022 and March 31, 2021, disaggregated by type was as follows:
Thirteen Weeks Ended
March 30
2022
March 31
2021
Shack sales$196,791 $150,668 
Licensing revenue:
Sales-based royalties6,400 4,425 
Initial territory and opening fees200 189 
Total revenue$203,391 $155,282 
The aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of March 30, 2022 was $18,433. The Company expects to recognize this amount as revenue over a long-term period, as the license term for each Shack ranges from 5 to 20 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:
March 30
2022
December 29
2021
Shack sales receivables$6,639 $6,939 
Licensing receivables, net of allowance for doubtful accounts3,262 4,005 
Gift card liability1,847 3,297 
Deferred revenue, current837 763 
Deferred revenue, long-term13,277 12,669 
Revenue recognized during the thirteen weeks ended March 30, 2022 and March 31, 2021 that was included in the respective liability balances at the beginning of the period was as follows:
Thirteen Weeks Ended
March 30
2022
March 31
2021
Gift card liability(1)
$1,506 $219 
Deferred revenue197 181 
(1)For the thirteen weeks ended March 30, 2022, amount includes the cumulative catch-up adjustment that resulted in $1,281 of gift card breakage income as noted above.
NOTE 4: FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The carrying value of the Company's Cash and cash equivalents, Accounts receivable, net, Accounts payable and Accrued expenses approximates fair value due to the short-term nature of these financial instruments.
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As of March 30, 2022 and December 29, 2021, the Company held certain assets that are required to be measured at fair value on a recurring basis including Marketable securities, which consist of investments in equity securities. The fair value of these investments is measured using Level 1 inputs. The carrying value of these investments in equity securities approximates fair value.
Assets measured at fair value on a recurring basis as of March 30, 2022 and December 29, 2021 were as follows:
Fair Value Measurements
March 30
2022
December 29
2021
Level 1Level 1
Equity securities:
Mutual funds$79,676 $80,000 
Total Marketable securities$79,676 $80,000 
Refer to Note 6, Debt, for additional information relating to the fair value of the Company's outstanding debt instruments.
A summary of other income (expense) from equity securities recognized during the thirteen weeks ended March 30, 2022 and March 31, 2021 was as follows:
Thirteen Weeks Ended
March 30
2022
March 31
2021
Equity securities:
Dividend income$77 $74 
Unrealized loss on equity securities(400)(46)
Total$(323)$28 
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. There were no impairment charges recognized during the thirteen weeks ended March 30, 2022 and March 31, 2021.
NOTE 5: SUPPLEMENTAL BALANCE SHEET INFORMATION
The components of Other current liabilities as of March 30, 2022 and December 29, 2021 were as follows:
March 30
2022
December 29
2021
Sales tax payable$4,931 $4,575 
Gift card liability1,847 3,297 
Current portion of financing equipment lease liabilities2,697 2,711 
Legal reserve6,275 533 
Other4,836 3,385 
Other current liabilities$20,586 $14,501 
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The components of Other long-term liabilities as of March 30, 2022 and December 29, 2021 were as follows:
March 30
2022
December 29
2021
Deferred licensing revenue$13,277 $12,669 
Long-term portion of financing equipment lease liabilities4,246 4,303 
Other3,421 5,801 
Other long-term liabilities$20,944 $22,773 
NOTE 6: DEBT
Long-term debt consisted of the following components:
March 30
2022
December 29
2021
2021 Convertible Notes$250,000 $250,000 
Discount and debt issuance costs, net of amortization6,196 6,458 
Total Long-term debt$243,804 $243,542 
Convertible Notes
In March 2021, the Company issued $250,000 aggregate principal amount of 0% Convertible Senior Notes due 2028 (“Convertible Notes”) 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, 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.
Shake Shack may not redeem the Convertible Notes prior to March 6, 2025. The Company may redeem for cash all or any portion of the Convertible Notes, at the Company's option, on or after March 6, 2025 if the last reported sale price of Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption
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price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date.
In addition, if Shake Shack undergoes a fundamental change (as defined in the indenture governing the Convertible Notes), subject to certain conditions, holders may require it to repurchase for cash all or any portion of their Convertible Notes at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events that occur prior to the maturity date of the Convertible Notes or if the Company delivers a notice of redemption in respect of some or all of the Convertible Notes, the Company will, in certain circumstances, increase the conversion rate of the Convertible Notes for a holder who elects to convert the Convertible Notes in connection with such a corporate event or convert the Convertible Notes called (or deemed called) for redemption during the related redemption period, as the case may be.
Contemporaneously with the issuance of the Convertible Notes, Shake Shack Inc. entered into an intercompany note with SSE Holdings (“Intercompany Note”). SSE Holdings promises to pay Shake Shack Inc., for value received, the principal amount with interest of the Intercompany Note in March 2028. Shake Shack Inc. will exercise its right to convert the Intercompany Note to maintain at all times a one-to-one ratio between the number of common units, directly or indirectly, held by Shake Shack Inc. and the aggregate number of outstanding shares of common stock.
As of March 30, 2022, the Convertible Notes had a gross principal balance of $250,000 and a balance of $243,804, net of unamortized discount and debt issuance costs of $6,196. Total amortization expense was $262 and $86 for the thirteen weeks ended March 30, 2022 and March 31, 2021, respectively, and was included in Interest expense in the Condensed Consolidated Statements of Income (Loss). In connection with the issuance of the Convertible Notes, the Company also incurred consulting and advisory fees of $236 for the thirteen weeks ended March 31, 2021 and was included in General and administrative expenses in the Condensed Consolidated Statements of Income (Loss).
At March 30, 2022, the fair value of the Convertible Notes was approximately $200,025, 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.
Revolving Credit Facility
The Company also maintains a revolving credit facility agreement ("Revolving Credit Facility"). As of March 30, 2022 and December 29, 2021, no amounts were outstanding under the Revolving Credit Facility.
As of March 30, 2022, the Revolving Credit Facility had unamortized deferred financing costs of $77 which were included in Other assets on the Condensed Consolidated Balance Sheets. Total interest expense related to the Revolving Credit Facility were $36 and $368 for the thirteen weeks ended March 30, 2022 and March 31, 2021, respectively. Interest expense for the thirteen weeks ended March 31, 2021 primarily included the write-off of previously capitalized costs on the Revolving Credit Facility.
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 March 30, 2022, the Company was in compliance with all covenants.
NOTE 7: LEASES
Nature of Leases
Shake Shack currently leases all of its domestic Company-operated Shacks, the home office and certain equipment under various non-cancelable lease agreements that expire on various dates through 2044. 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 benefits 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 and the Company has identified a lease, the contract is accounted for under the requirements of Accounting Standards Codification Topic 842.
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Upon possession of a leased asset, the Company determines whether the lease is an operating or finance lease. Real estate leases are classified as operating leases and most of the 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.
Fixed minimum rent payments are recognized on a straight-line basis over the lease term from the date the Company takes possession of the leased property. Lease expense incurred before a Shack opens is recorded in Pre-opening costs on the Condensed Consolidated Statements of Income (Loss). Once a domestic Company-operated Shack opens, the straight-line lease expense and contingent rent, if applicable, is recorded in Occupancy and related expenses on the Condensed Consolidated Statements of Income (Loss). Many of the 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 on the Condensed Consolidated Statements of Income (Loss).
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, which are also reflected as a reduction to the initial measurement of the right-of-use asset.
A summary of operating and finance lease assets and lease liabilities as of March 30, 2022 and December 29, 2021 were as follows:
ClassificationMarch 30
2022
December 29
2021
Operating leasesOperating lease assets$346,128 $347,277 
Finance leasesProperty and equipment, net6,733 6,810 
Total right-of-use assets$352,861 $354,087 
Operating leases:
Operating lease liabilities, current$36,951 $35,519 
Long-term operating lease liabilities399,487 400,113 
Finance leases:
Other current liabilities2,697 2,711 
Other long-term liabilities4,246 4,303 
Total lease liabilities$443,381 $442,646 
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The components of lease expense for the thirteen weeks ended March 30, 2022 and March 31, 2021 were as follows:
Thirteen Weeks Ended
ClassificationMarch 30
2022
March 31
2021
Operating lease costOccupancy and related expenses
Pre-opening costs
General and administrative expenses
$13,681 $12,330 
Finance lease cost:
Amortization of right-of-use assetsDepreciation and amortization expense753 613 
Interest on lease liabilitiesInterest expense52 54 
Variable lease cost
Occupancy and related expenses
Other operating expenses
Pre-opening costs
General and administrative expenses
3,504 2,851 
Short-term lease costOccupancy and related expenses98 82 
Total lease cost$18,088 $15,930 

As of March 30, 2022, future minimum lease payments for operating and finance leases consisted of the following:
Operating LeasesFinance Leases
2022(1)
$34,003 $2,252 
202364,088 2,205 
202464,127 1,450 
202562,986 718 
202659,230 425 
Thereafter255,488 273 
Total minimum payments539,922 7,323 
Less: imputed interest111,396 392 
Total lease liabilities$428,526 $6,931 
(1)Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of March 30, 2022.
As of March 30, 2022 the Company had additional operating lease commitments of $129,255 for non-cancelable leases without a possession date, which begin to commence in 2022. These lease commitments are consistent with the leases that have been executed thus far.
A summary of lease terms and discount rates for operating and finance leases as of March 30, 2022 and December 29, 2021 were as follows:
March 30
2022
December 29
2021
Weighted average remaining lease term (years):
Operating leases9.19.5
Finance leases5.35.4
Weighted average discount rate:
Operating leases5.2 %3.9 %
Finance leases3.1 %3.1 %
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Supplemental cash flow information related to leases for the thirteen weeks ended March 30, 2022 and March 31, 2021 were as follows:
Thirteen Weeks Ended
March 30
2022
March 31
2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$13,525 $11,825 
Operating cash flows from finance leases52 54 
Financing cash flows from finance leases747 602 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases5,541 11,095 
Finance leases676 1,518 
NOTE 8: NON-CONTROLLING INTERESTS
Shake Shack is the 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 in SSE Holdings 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 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 as of March 30, 2022 and December 29, 2021.
March 30, 2022December 29, 2021
LLC InterestsOwnership %LLC InterestsOwnership %
Number of LLC Interests held by Shake Shack Inc.39,218,290 93.1 %39,142,397 93.1 %
Number of LLC Interests held by non-controlling interest holders2,911,587 6.9 %2,921,587 6.9 %
Total LLC Interests outstanding42,129,877 100.0 %42,063,984 100.0 %
The weighted average ownership percentages for the applicable reporting periods are used to attribute Net income (loss) and Other comprehensive income (loss) to Shake Shack Inc. and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentage for the thirteen weeks ended March 30, 2022 and March 31, 2021 was 6.9% and 7.0%, respectively.
The following table summarizes the effects of changes in ownership of SSE Holdings on the Company's equity during the thirteen weeks ended March 30, 2022 and March 31, 2021.
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Thirteen Weeks Ended
March 30
2022
March 31
2021
Net income (loss) attributable to Shake Shack Inc.$(10,162)$1,309 
Other comprehensive income (loss):
Unrealized loss on foreign currency translation adjustment(1)(1)
Transfers (to) from non-controlling interests:
Increase in additional paid-in capital as a result of the redemption of LLC Interests49 36 
Increase (decrease) in additional paid-in capital as a result of activity under stock compensation plans and the related income tax effects(2,276)3,359 
Total effect of changes in ownership interest on equity (loss) attributable to Shake Shack Inc.$(12,390)$4,703 
The following table summarizes redemptions of LLC Interests activity during the thirteen weeks ended March 30, 2022 and March 31, 2021.
Thirteen Weeks Ended
March 30
2022
March 31
2021
Redemption and acquisition of LLC Interests
Number of LLC Interests redeemed by non-controlling interest holders10,000 29,600 
Number of LLC Interests received by Shake Shack Inc.10,000 29,600 
Issuance of Class A common stock
Shares of Class A common stock issued in connection with redemptions of LLC Interests10,000 29,600 
Cancellation of Class B common stock
Shares of Class B common stock surrendered and canceled10,000 29,600 
During the thirteen weeks ended March 30, 2022 and March 31, 2021, the Company received an aggregate of 65,893 and 355,849 LLC Interests, respectively, in connection with the activity under its stock compensation plans.
NOTE 9: EQUITY-BASED COMPENSATION
A summary of equity-based compensation expense recognized during the thirteen weeks ended March 30, 2022 and March 31, 2021 was as follows:
Thirteen Weeks Ended
March 30
2022
March 31
2021
Stock options$ $20 
Performance stock units1,424 414 
Restricted stock units1,764 1,247 
Equity-based compensation expense$3,188 $1,681 
Total income tax benefit recognized related to equity-based compensation$56 $67 
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Equity-based compensation expense recorded during the thirteen weeks ended March 30, 2022 and March 31, 2021 was as follows:
Thirteen Weeks Ended
March 30
2022
March 31
2021
General and administrative expenses$2,991 $1,541 
Labor and related expenses197 140 
Equity-based compensation expense$3,188 $1,681 
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.
The effective income tax rates for the thirteen weeks ended March 30, 2022 and March 31, 2021 were 27.6% and 105.5%, respectively. The decrease was primarily driven by a decrease in windfall benefits associated with equity-based compensation resulting in the accrual of a valuation allowance in our investment in the partnership as well as higher foreign tax expense, partly offset by an increase in pre-tax loss and higher tax credits. Additionally, an increase in the Company's ownership interest in SSE Holdings increases its share of the taxable income (loss) of SSE Holdings. The weighted average ownership interest in SSE Holdings was 93.1% and 93.0% for the thirteen weeks ended March 30, 2022 and March 31, 2021, respectively.
Deferred Tax Assets and Liabilities
During the thirteen weeks ended March 30, 2022, the Company acquired an aggregate of 75,893 LLC Interests in connection with the redemption of LLC Interests, and activity relating to its stock compensation plan. The Company recognized a deferred tax asset in the amount of $631 associated with the basis difference in its investment in SSE Holdings upon acquisition of these LLC Interests. As of March 30, 2022, the total deferred tax asset related to the basis difference in the Company's investment in SSE Holdings was $111,548. However, a portion of the total basis difference will only reverse upon the eventual sale of its interest in SSE Holdings, which the Company expects would result in a capital loss. As of March 30, 2022, the total valuation allowance established against the deferred tax asset to which this portion relates was $959.
During the thirteen weeks ended March 30, 2022, the Company also recognized $62 of 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.
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 March 30, 2022, 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 described above relating to basis differences that are expected to result in a capital loss upon eventual sale of its interest in SSE Holdings, New York City UBT credits and certain foreign tax credits) are more likely than not to be realized. As such, no additional valuation allowance was recognized.
Tax Receivable Agreement
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
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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.
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.
During the thirteen weeks ended March 30, 2022, the Company acquired an aggregate of 10,000 LLC Interests in connection with the redemption of LLC Interests, which resulted in an increase in the tax basis of its investment in SSE Holdings subject to the provisions of the Tax Receivable Agreement. The Company recognized an additional liability in the amount of $228 for the TRA Payments due to the redeeming members, representing 85% of the aggregate tax benefits the Company expects to realize from the tax basis increases related to the redemption of LLC Interests, after concluding it was probable that such TRA Payments would be paid based on estimates of future taxable income. During the thirteen weeks ended March 30, 2022 and March 31, 2021, inclusive of interest, no payments were made to the members of SSE Holdings pursuant to the Tax Receivable Agreement. As of March 30, 2022, the total amount of TRA Payments due under the Tax Receivable Agreement, was $234,273. Refer to Note 13, Commitments and Contingencies, for additional information relating to the liabilities under the Tax Receivable Agreement.
CARES Act
On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") to provide certain relief as a result of the COVID-19 pandemic. The CARES Act provides tax relief, along with other stimulus measures, including a provision for an Employee Retention Credit (“ERC”), which allows for employers to claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages paid to employees after December 31, 2020 through September 30, 2021. The ERC was designed to encourage businesses to keep employees on the payroll during the COVID-19 pandemic.
As there is no authoritative guidance under U.S. GAAP on accounting for government assistance to for-profit business entities, we account for the ERC by analogy to International Accounting Standard ("IAS") 20, Accounting for Government Grants and Disclosure of Government Assistance. In accordance with IAS 20, management determined it has reasonable assurance for receipt of the ERC and recorded the ERC benefit of $500 within Labor and other related expenses in the Condensed Consolidated Statement of Income (Loss) for the thirteen weeks ended March 30, 2022 as an offset to Social Security tax expense. We recorded a corresponding accrual for the benefit expected to be received within Accrued wages and related liabilities on the Condensed Consolidated Balance Sheet as of March 30, 2022.
NOTE 11: EARNINGS (LOSS) PER SHARE
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings (loss) per share of Class A common stock (in thousands, except per share amounts) for the thirteen weeks ended March 30, 2022 and March 31, 2021.
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Thirteen Weeks Ended
March 30
2022
March 31
2021
Numerator:
Net income (loss) attributable to Shake Shack Inc.—basic$(10,162)$1,309 
Reallocation of net loss attributable to non-controlling interests from the assumed conversion of Class B shares(1,120)(734)
Net income (loss) attributable to Shake Shack Inc.—diluted$(11,282)$575 
Denominator:
Weighted average shares of Class A common stock outstanding—basic39,163 38,948 
Effect of dilutive securities:
Stock options 232 
Performance stock units 53 
Restricted stock units 164 
Convertible Notes 451 
Shares of Class B common stock 2,941 
Weighted average shares of Class A common stock outstanding—diluted39,163 42,789 
Earnings (loss) per share of Class A common stock—basic$(0.26)$0.03 
Earnings (loss) per share of Class A common stock—diluted$(0.26)$0.01 
The effect of potential share settlement of the Convertible Notes outstanding for the period is included as potentially dilutive shares of Class A common stock under application of the if-converted method in the computation of diluted earnings (loss) per share, except when the effect would be anti-dilutive. Refer to Note 6, Debt, for additional information.
Shares of Class B common stock do not share in the earnings or losses of Shake Shack and are therefore not participating securities. As such, separate presentation of basic and diluted earnings (loss) per share of Class B common stock under the two-class method has not been presented. However, shares of Class B common stock outstanding for the period are considered potentially dilutive shares of Class A common stock under application of the if-converted method and are included in the computation of diluted earnings (loss) per share, except when the effect would be anti-dilutive.
The following table presents potentially dilutive securities excluded from the computations of diluted earnings (loss) per share of Class A common stock for the thirteen weeks ended March 30, 2022 and March 31, 2021.
Thirteen Weeks Ended
March 30
2022
March 31
2021
Stock options149,731 (1)1,698 (2)
Performance stock units165,108 (1)51,974 (3)
Restricted stock units401,716 (1) 
Shares of Class B common stock2,911,587 (1) 
Convertible notes1,466,975 (1) 
(1)Number of securities outstanding at the end of the period that were excluded from the computation of diluted earnings (loss) per share of Class A common stock because the effect would have been anti-dilutive.
(2)Number of securities outstanding at the end of the period that were excluded from the computation of diluted earnings (loss) per share of Class A common stock because the exercise price of the stock options exceeded the average market price of our Class A common stock during the period ("out-of-the-money").
(3)Number of securities outstanding at the end of the period that were excluded from the computation of diluted earnings (loss) per share of Class A common stock because the performance conditions associated with these awards were not met assuming the end of the reporting period was the end of the performance period.
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NOTE 12: SUPPLEMENTAL CASH FLOW INFORMATION
The following table sets forth supplemental cash flow information for the thirteen weeks ended March 30, 2022 and March 31, 2021:
Thirteen Weeks Ended
March 30
2022
March 31
2021
Cash paid for:
Income taxes, net of refunds$936 $388 
Interest, net of amounts capitalized57 70 
Non-cash investing activities:
Accrued purchases of property and equipment20,080 12,949 
Capitalized equity-based compensation25 9 
Non-cash financing activities: