SHAKE SHACK INC., 10-K filed on 2/18/2022
Annual Report
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COVER PAGE - USD ($)
 12 Months Ended
Dec. 29, 2021
Feb. 09, 2022
Jun. 30, 2021
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 29, 2021    
Current Fiscal Year End Date --12-29    
Document Transition Report false    
Entity File Number 001-36823    
Entity Registrant Name SHAKE SHACK INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 47-1941186    
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 Address, Postal Zip Code 10014    
City Area Code 646    
Local Phone Number 747-7200    
Title of 12(b) Security Class A Common Stock, par value $0.001    
Trading Symbol SHAK    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 3,966,783,414
Documents Incorporated by Reference Portions of the registrant’s definitive Proxy Statement for its 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K.    
Amendment Flag false    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001620533    
Class A Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   39,143,325  
Class B Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   2,921,587  
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Audit Information
 12 Months Ended
Dec. 29, 2021
Auditor Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location New York, New York
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 29, 2021
Dec. 30, 2020
Current assets:    
Cash and cash equivalents $ 302,406 $ 146,873
Marketable securities 80,000 36,887
Accounts receivable, net 13,657 9,464
Inventories 3,850 2,888
Prepaid expenses and other current assets 9,763 7,074
Total current assets 409,676 203,186
Property and equipment, net of accumulated depreciation of $222,768 and $166,156, respectively 389,386 336,541
Operating lease assets 347,277 306,317
Deferred income taxes, net 298,668 287,007
Other assets 12,563 12,297
TOTAL ASSETS 1,457,570 1,145,348
Current liabilities:    
Accounts payable 19,947 23,487
Accrued expenses 36,892 25,920
Accrued wages and related liabilities 14,638 10,441
Operating lease liabilities, current 35,519 35,657
Other current liabilities 14,501 14,200
Total current liabilities 121,497 109,705
Long-term debt 243,542 0
Long-term operating lease liabilities 400,113 343,736
Liabilities under tax receivable agreement, net of current portion 234,045 232,954
Other long-term liabilities 22,773 24,460
Total liabilities 1,021,970 710,855
Commitments and contingencies (Note 17)
Stockholders' equity:    
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 29, 2021 and December 30, 2020. 0 0
Additional paid-in capital 405,940 395,067
Retained earnings 3,554 12,209
Accumulated other comprehensive income 1 3
Total stockholders' equity attributable to Shake Shack Inc. 409,537 407,321
Non-controlling interests 26,063 27,172
Total equity 435,600 434,493
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,457,570 1,145,348
Class A common stock, $0.001 par value—200,000,000 shares authorized; 39,142,397 and 38,717,790 shares issued and outstanding as of December 29, 2021 and December 30, 2020, respectively.    
Stockholders' equity:    
Common stock 39 39
Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,921,587 and 2,951,188 shares issued and outstanding as of December 29, 2021 and December 30, 2020, respectively.    
Stockholders' equity:    
Common stock $ 3 $ 3
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 29, 2021
Dec. 30, 2020
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) 39,142,397 38,717,790
Common stock, shares, outstanding (in shares) 39,142,397 38,717,790
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) 2,921,587 2,951,188
Common stock, shares, outstanding (in shares) 2,921,587 2,951,188
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CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
TOTAL REVENUE $ 739,893 $ 522,867 $ 594,519
Shack-level operating expenses:      
Food and paper costs 218,262 153,335 168,176
Labor and related expenses 215,114 156,814 160,811
Other operating expenses 103,232 73,220 69,169
Occupancy and related expenses 59,228 51,592 48,451
General and administrative expenses 85,996 64,250 65,649
Depreciation and amortization expense 58,991 48,801 40,392
Pre-opening costs 13,291 8,580 14,834
Impairment and loss on disposal of assets 1,632 10,151 1,352
TOTAL EXPENSES 755,746 566,743 568,834
INCOME (LOSS) FROM OPERATIONS (15,853) (43,876) 25,685
Other income (expense), net 95 (786) 2,263
Interest expense (1,577) (815) (434)
INCOME (LOSS) BEFORE INCOME TAXES (17,335) (45,477) 27,514
Income tax expense (benefit) (7,224) 57 3,386
NET INCOME (LOSS) (10,111) (45,534) 24,128
Less: Net income (loss) attributable to non-controlling interests (1,456) (3,376) 4,301
Net income (loss) attributable to Shake Shack Inc.—diluted $ (8,655) $ (42,158) $ 19,827
Earnings (loss) per share of Class A common stock      
Basic (in dollars per share) $ (0.22) $ (1.14) $ 0.63
Diluted (in dollars per share) $ (0.22) $ (1.14) $ 0.61
Weighted-average shares of Class A common stock outstanding      
Basic (shares) 39,085 37,129 31,381
Diluted (shares) 39,085 37,129 32,251
Shack sales      
TOTAL REVENUE $ 714,989 $ 506,339 $ 574,625
Licensing revenue      
TOTAL REVENUE $ 24,904 $ 16,528 $ 19,894
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Statement of Comprehensive Income [Abstract]      
Net income $ (10,111) $ (45,534) $ 24,128
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]      
Change in foreign currency translation adjustment (2) 1 2
Available-for-sale Securities:      
Net change [1] (2) 1 2
Net unrealized losses related to available-for-sale securities (2) 1 2
COMPREHENSIVE INCOME (10,113) (45,533) 24,130
Less: Comprehensive income (loss) attributable to non-controlling interests (1,456) (3,376) 4,301
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAKE SHACK INC. $ (8,657) $ (42,157) $ 19,829
[1] Net of tax benefit of $0 for fiscal years ended December 29, 2021, December 30, 2020 and December 25, 2019.
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical)
 12 Months Ended
Dec. 29, 2021
USD ($)
Statement of Comprehensive Income [Abstract]  
Comprehensive income net of tax benefit $ 0
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' AND MEMBERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
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
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period of Adoption, Adjustment
Non- Controlling Interest
Non- Controlling Interest
Cumulative Effect, Period of Adoption, Adjustment
Secondary Offering and Redemption of Units
Secondary Offering and Redemption of Units
Common stock
Class A Common Stock
Secondary Offering and Redemption of Units
Common stock
Class B Common Stock
Secondary Offering and Redemption of Units
Additional Paid-In Capital
Beginning balance at Dec. 26, 2018 $ 273,455       $ 30 $ 8 $ 195,633 $ 30,404   $ 0   $ 47,380          
Beginning balance (in shares) at Dec. 26, 2018         29,520,833 7,557,347                      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Net income 24,128             19,827       4,301          
Other comprehensive loss:                                  
Net unrealized losses related to available-for-sale securities 2                                
Net change in foreign currency translation adjustment 2                 2              
Equity-based compensation 7,700           7,700                    
Equity-based compensation 7,805       $ 0   4,517         3,288          
Activity under stock compensation (in shares)         484,319                        
Redemptions 0                     (11,934)   $ 0 $ (2) $ (2) $ (11,934)
Redemptions (in shares)         (1,721,887)                   (1,721,887) (1,721,887)  
Effect of GTC Merger         $ (3) $ (3) (19,218)         (19,218)          
Effect of GTC Merger (in shares)         (2,690,263) (2,690,263)                      
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis 5,408           5,408                    
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis (1,708)                     (1,708)          
Ending balance at Dec. 25, 2019 321,985 $ 5,195     $ 35 $ 3 244,410 54,367 $ 4,136 2 23,168 $ 1,059        
Ending balance (in shares) at Dec. 25, 2019         34,417,302 3,145,197                      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Net income (45,534)             (42,158)       (3,376)          
Other comprehensive loss:                                  
Net unrealized losses related to available-for-sale securities 1                                
Net change in foreign currency translation adjustment 1                 1              
Equity-based compensation 5,600           5,600                    
Equity-based compensation 6,215       $ 1   5,909         305          
Activity under stock compensation (in shares)         456,942                        
Redemptions                       (1,723)   0 $ 0 $ 0 (1,723)
Redemptions (in shares)         (194,009)                   (194,009) (194,009)  
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis 1,707           1,707                    
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis (478)                     (478)          
Equity offering (in shares)         3,649,537                        
Issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs 144,997       $ 3   135,718         9,276          
Ending balance at Dec. 30, 2020 434,493       $ 39 $ 3 395,067 12,209   3   27,172          
Ending balance (in shares) at Dec. 30, 2020     38,717,790 2,951,188 38,717,790 2,951,188                      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Net income (10,111)             (8,655)       (1,456)          
Other comprehensive loss:                                  
Net unrealized losses related to available-for-sale securities (2)                                
Net change in foreign currency translation adjustment (2)                 (2)              
Equity-based compensation 8,803           8,803                    
Equity-based compensation 3,177       $ 0   1,829         1,348          
Activity under stock compensation (in shares)         395,006                        
Redemptions                       (33)   $ 0 $ 0 $ 0 $ (33)
Redemptions (in shares)         (29,601)                   (29,601) (29,601)  
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis 208           208                    
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis (968)                     (968)          
Ending balance at Dec. 29, 2021 $ 435,600       $ 39 $ 3 $ 405,940 $ 3,554   $ 1   $ 26,063          
Ending balance (in shares) at Dec. 29, 2021     39,142,397 2,921,587 39,142,397 2,921,587                      
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
OPERATING ACTIVITIES      
Net income (loss) (including amounts attributable to non-controlling interests) $ (10,111) $ (45,534) $ 24,128
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization expense 58,991 48,801 40,392
Amortization of debt issuance costs 867 0 0
Amortization of cloud computing asset 1,245 1,444 312
Non-cash operating lease cost 50,888 44,910 40,068
Equity-based compensation 8,703 5,560 7,505
Deferred income taxes (10,379) (1,356) (6,064)
Non-cash interest expense 353 66 170
(Gain) loss on sale of marketable securities 5 (79) (22)
Impairment and loss on disposal of assets 1,632 10,151 1,352
Other non-cash expense (income) (4) 1,937 (338)
Unrealized (gain) loss on equity securities 277 59 (194)
Changes in operating assets and liabilities:      
Accounts receivable (4,193) 1,006 10,726
Inventories (962) (667) (472)
Prepaid expenses and other current assets 4,913 (5,197) 134
Other assets (2,722) (2,940) (8,245)
Accounts payable (6,450) 4,626 4,248
Accrued expenses 7,175 2,170 9,856
Accrued wages and related liabilities 4,200 (1,010) 799
Other current liabilities (1,166) 1,752 1,438
Long-term operating lease liabilities (43,417) (33,724) (37,308)
Other long-term liabilities (1,443) 5,375 1,372
NET CASH PROVIDED BY OPERATING ACTIVITIES 58,402 37,350 89,857
INVESTING ACTIVITIES      
Purchases of property and equipment (101,495) (69,038) (106,507)
Purchases of marketable securities (47,399) (20,359) (1,179)
Sales of marketable securities 4,004 20,000 27,000
NET CASH USED IN INVESTING ACTIVITIES (144,890) (69,397) (80,686)
FINANCING ACTIVITIES      
Proceeds from issuance of convertible notes, net of discount 243,750 0 0
Proceeds from Revolving Credit Facility 0 50,000 0
Payments on Revolving Credit Facility 0 (50,000) 0
Deferred financing costs (169) (64) (286)
Proceeds from issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs 0 144,997 0
Payments on principal of finance leases (2,694) (2,206) (1,926)
Distributions paid to non-controlling interest holders (968) (478) (1,708)
Debt issuance costs (1,075) 0 0
Payments under tax receivable agreement 0 (6,643) (707)
Net proceeds from stock option exercises 6,731 8,033 9,201
Employee withholding taxes related to net settled equity awards (3,554) (1,818) (1,396)
Net Cash Provided by (Used in) Financing Activities, Total 242,021 141,821 3,178
INCREASE IN CASH AND CASH EQUIVALENTS 155,533 109,774 12,349
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 146,873 37,099 24,750
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 302,406 $ 146,873 $ 37,099
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SUPPLEMENTAL CASH FLOW INFORMATION
 12 Months Ended
Dec. 29, 2021
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION
The following table sets forth supplemental cash flow information for fiscal 2021, fiscal 2020 and fiscal 2019:
202120202019
Cash paid for:
Income taxes, net of refunds$2,808 $1,612 $3,044 
Interest, net of amounts capitalized252 643 255 
Non-cash investing activities:
Accrued purchases of property and equipment22,241 15,515 12,620 
Capitalized equity-based compensation66 37 101 
Non-cash financing activities:
Establishment of liabilities under tax receivable agreement1,093 4,024 32,065 
Class A common stock issued in connection with the redemption of LLC Interests— — 2 
Class A common stock issued in connection with the GTC Merger— — 3 
Cancellation of Class B common stock in connection with the redemption of LLC Interests— — (2)
Cancellation of Class B common stock in connection with the GTC Merger— — (3)
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SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
 12 Months Ended
Dec. 29, 2021
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Flow Information
The following table sets forth supplemental cash flow information for fiscal 2021, fiscal 2020 and fiscal 2019:
202120202019
Cash paid for:
Income taxes, net of refunds$2,808 $1,612 $3,044 
Interest, net of amounts capitalized252 643 255 
Non-cash investing activities:
Accrued purchases of property and equipment22,241 15,515 12,620 
Capitalized equity-based compensation66 37 101 
Non-cash financing activities:
Establishment of liabilities under tax receivable agreement1,093 4,024 32,065 
Class A common stock issued in connection with the redemption of LLC Interests— — 2 
Class A common stock issued in connection with the GTC Merger— — 3 
Cancellation of Class B common stock in connection with the redemption of LLC Interests— — (2)
Cancellation of Class B common stock in connection with the GTC Merger— — (3)
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SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Cash paid for:      
Income taxes, net of refunds $ 2,808 $ 1,612 $ 3,044
Interest, net of amounts capitalized 252 643 255
Non-cash investing activities:      
Accrued purchases of property and equipment 22,241 15,515 12,620
Share-based Payment Arrangement, Amount Capitalized into Other Assets 66 37 101
Non-cash financing activities:      
Establishment of liabilities under tax receivable agreement 1,093 4,024 32,065
Redemption or Exchange of Units | Class A Common Stock      
Non-cash investing activities:      
Class A common stock issued 0 0 2
Redemption or Exchange of Units | Class B Common Stock      
Non-cash financing activities:      
Cancellation of Class B common stock 0 0 (2)
Gramercy Tavern | Class A Common Stock      
Non-cash investing activities:      
Class A common stock issued 0 0 3
Gramercy Tavern | Class B Common Stock      
Non-cash financing activities:      
Cancellation of Class B common stock $ 0 $ 0 $ (3)
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NATURE OF OPERATIONS
 12 Months Ended
Dec. 29, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NATURE OF OPERATIONS NATURE OF OPERATIONSShake 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"). We are the sole managing member of SSE Holdings and, as sole managing member, we operate and control all of the business and affairs of SSE Holdings. As a result, we consolidate the financial results of SSE Holdings and report a non-controlling interest representing the economic interest in SSE Holdings held by the other members of SSE Holdings. As of December 29, 2021 we 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.We operate and license Shake Shack restaurants ("Shacks"), which serve hamburgers, hot dogs, chicken, crinkle cut fries, shakes, frozen custard, beer, wine and more. As of December 29, 2021, there were 369 Shacks in operation, system-wide, of which 218 were domestic Company-operated Shacks, 25 were domestic licensed Shacks and 126 were international licensed Shacks.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 29, 2021
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of Shake Shack Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current year presentation.
SSE Holdings is a variable interest entity. Shake Shack Inc. is the primary beneficiary as we have the majority economic interest in SSE Holdings and, as the sole managing member, have 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, we will continue to consolidate SSE Holdings. The assets and liabilities of SSE Holdings represent substantially all of our consolidated assets and liabilities with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement. As of December 29, 2021 and December 30, 2020, the net assets of SSE Holdings were $376,857 and $383,669, respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreement. Refer to Note 8, Debt, for additional information.
Fiscal Year
We operate on a 52/53 week fiscal year ending on the last Wednesday of December. Fiscal year 2021 contained 52 weeks and ended on December 29, 2021 ("fiscal 2021"). Fiscal year 2020 contained 53 weeks and ended on December 30, 2020 ("fiscal 2020"). Fiscal year 2019 contained 52 weeks and ended on December 25, 2019 ("fiscal 2019"). Unless otherwise stated, references to years in this report relate to fiscal years.
Use of Estimates
The preparation of these 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.
Segment Reporting
Our chief operating decision maker (the "CODM") is the Chief Executive Officer. We have determined we have one operating segment and one reportable segment, as the CODM regularly reviews Shack operations and financial performance at a consolidated level to allocate resources.
Fair Value Measurements
We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. We categorize our assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below.
▪Level 1 — Quoted prices in active markets for identical assets or liabilities
▪Level 2 — Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
▪Level 3 — Inputs that are both unobservable and significant to the overall fair value measurements reflecting an entity's estimates of assumptions that market participants would use in pricing the asset or liability.
Cash and Cash Equivalents
Cash and cash equivalents consist primarily of cash on hand, deposits with banks, money market funds and short-term, highly liquid investments that have original maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value.
Marketable Securities
Marketable securities consist of mutual funds that primarily invest in corporate bonds, certificates of deposits, asset-backed securities, commercial paper, U.S. Treasury obligations, and foreign government securities. Marketable securities are recorded at fair value, with unrealized gains and losses recorded in Other income (expense), net. Dividend and interest income are recognized when earned and are recorded in Other income (expense), net on the Consolidated Statements of Income (Loss).
Accounts Receivable, Net
Accounts receivable, net consist primarily of receivables from our licensees for licensing revenue and related reimbursements, credit card receivables and vendor rebates. We evaluate the collectability of the accounts receivable based on a variety of factors, including historical experience, current economic conditions and other factors.
Inventories
Inventories, which consist of food, paper goods, beverages, beer, wine and retail merchandise, are valued at the lower of weighted average cost or net realizable value. No adjustment is deemed necessary to reduce inventory to net realizable value due to the rapid turnover and high utilization of inventory.
Property and Equipment, Net
Property and equipment, net is stated at historical cost less accumulated depreciation. Property and equipment is depreciated based on the straight-line method over the estimated useful lives of the assets, generally ranging from five to seven years for both equipment, and furniture and fixtures, and two to five years for computer equipment and software. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the related lease terms.
Costs incurred when constructing Shacks are capitalized. The cost of repairs and maintenance are expensed when incurred. Costs for refurbishments and improvements that significantly increase the productive capacity or extend the useful life of the
asset are capitalized. When assets are disposed of, the resulting gain or loss is recognized in Impairment and loss on disposal of assets on the Consolidated Statements of Income (Loss).
Valuation of Long-lived Assets
We assess potential impairments to our long-lived assets, which includes property and equipment and operating lease right-of-use assets, whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of an asset is measured by a comparison of the carrying value of the asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying value of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying value of the asset exceeds the fair value of the asset, considering external market participant assumptions. Since the determination of future cash flows is an estimate of future performance, there may be future impairments in the event that future cash flows do not meet expectations. Refer to Note 4, Fair Value Measurements, for additional information.
Deferred Financing Costs
Deferred financing costs incurred in connection with the issuance of long-term debt and establishing credit facilities are capitalized and amortized in Interest expense based on the related debt agreements. Deferred financing costs are included in Other assets on the Consolidated Balance Sheets.
Other Assets
Other assets consist primarily of capitalized implementation costs from cloud computing arrangements, certain custom pre-ordered furniture, fixtures and equipment for future and existing Shacks, transferable liquor licenses, and security deposits.
Implementation costs associated with cloud computing arrangements hosted by third party vendors are capitalized when incurred during the application development phase. Amortization is calculated on a straight-line basis over the contractual term of the cloud computing arrangement and is recorded within General and administrative expenses on the Consolidated Statements of Income (Loss). As of December 29, 2021 and December 30, 2020, capitalized implementation costs from cloud computing arrangements totaled $6,431 and $6,497, respectively, net of accumulated amortization.
The costs of obtaining non-transferable liquor licenses that are directly issued by local government agencies for nominal fees are expensed as incurred. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets. Annual liquor license renewal fees, for both types of licenses, are expensed over the renewal term. As of December 29, 2021 and December 30, 2020, indefinite-lived intangible assets relating to transferable liquor licenses totaled $1,461 and $1,437, respectively. We evaluate our indefinite-lived intangible assets for impairment annually during the fiscal fourth quarter, and whenever events or changes in circumstances indicate that an impairment may exist. When evaluating intangible assets for impairment, we first perform a qualitative assessment to determine whether it is more likely than not that an intangible asset group is impaired. If we determine that it is more likely than not that the carrying value of the intangible asset group exceeds its fair value, we perform a quantitative assessment to derive the fair value of the intangible asset group. If the carrying value of the intangible asset group exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. In addition, we continuously monitor and may revise our intangible asset useful lives if and when facts and circumstances change.
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 we expect 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 as sales tax payable until the taxes are remitted to the appropriate taxing authorities. Revenue from gift cards is deferred and recognized upon redemption.
Licensing revenues include 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 in our contracts, 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 licenses and considered as one performance obligation per Shack. We determine the transaction price for each contract, which is comprised of the initial territory fee and an estimate of the total Shack opening fees we expect to be entitled to. The calculation of total Shack opening fees included in the transaction price requires judgment, as it is based on an estimate of the number of Shacks we expect the licensee to open. The transaction price is then allocated equally to each Shack expected to open. The performance obligations are satisfied over time, starting when a Shack opens, through the end of the term of the license granted to the Shack. Because we are transferring licenses to access our intellectual property during a contractual term, 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 licensing agreement and payment for the Shack opening fees are received either in advance of or upon 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.
Equity-based Compensation
Equity-based compensation expense is measured based on the grant-date fair value of the awards. For awards with graded-vesting features and service conditions only, compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award. For awards with graded-vesting features and a combination of service and performance conditions, compensation expense is recognized using a graded-vesting attribution method over the vesting period based on the most probable outcome of the performance conditions. Actual distributed shares are calculated upon conclusion of the service and performance periods. For stock option awards, the grant-date fair value of the awards is determined using the Black-Scholes option pricing model and involves several assumptions, including the expected term of the option, expected volatility and risk-free interest rate. Forfeitures are recognized as they occur for all equity awards. Equity-based compensation expense is included in General and administrative expenses and Labor and related expenses on the Consolidated Statements of Income (Loss).
Advertising
The cost of advertising is expensed as incurred. Advertising costs amounted to $5,677, $1,449 and $857 in fiscal 2021, fiscal 2020 and fiscal 2019, respectively, and are included in General and administrative expense and Other operating expenses on the Consolidated Statements of Income (Loss).
Leases
We currently lease all of our domestic Company-operated Shacks, our home office and certain equipment under various non-cancelable lease agreements that expire on various dates through 2038. Upon the possession of a leased asset, we determine its classification as an operating or financing lease. All of our real estate leases are classified as operating leases and most of our equipment leases are classified as finance leases.
Generally, our real estate leases have initial terms ranging from 10 to 15 years and typically include two five-year renewal options. Renewal options are typically not included in the lease term as it is not reasonably certain at commencement date that we would exercise the options to extend the lease. Our real estate leases typically provide for fixed minimum rent payments and/or contingent rent payments 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 starting on the date we take possession of the leased property. Lease expense incurred before a Shack opens is recorded in Pre-opening costs on the Consolidated Statements of Income (Loss). Once a Shack opens, we record the straight-line lease expense and contingent rent, if applicable, in Occupancy and related expenses on the Consolidated Statements of Income (Loss). Many of our leases also require us to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in Occupancy and related expenses on the Consolidated Statements of Income (Loss).
We calculate 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. We measure the lease liability by discounting the future fixed contractual payments included in the lease agreement, using either the rate explicit in the lease or our incremental borrowing rate (“IBR”). 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 our 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.
For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. 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 leases with a lease term of 12 months or less ("short-term lease"), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Consolidated Balance Sheets. 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 cost for both operating and finance leases, if any, is recognized as incurred.
We expend cash for leasehold improvements to build out and equip our leased premises. Generally, a portion of the leasehold improvements and building costs are reimbursed by our landlords through landlord incentives pursuant to agreed-upon terms in our lease agreements. If obtained, landlord incentives usually take the form of up-front cash, full or partial credits against our future minimum or contingent rents otherwise payable by us, or a combination thereof. In most cases, landlord incentives are received after we take possession of the property and as we meet required milestones during the construction of the property. We include 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.
Pre-opening Costs
Pre-opening costs are expensed as incurred and consist primarily of occupancy, manager and team member wages, legal fees, travel and related training costs, cookware and marketing expenses incurred prior to the opening of a Shack.
Income Taxes
We account for income taxes pursuant to the asset and liability method which requires the recognition of deferred income tax assets and liabilities related to the expected future tax consequences arising from temporary differences between the carrying values and tax bases of assets and liabilities based on enacted statutory tax rates applicable to the periods in which the temporary differences are expected to reverse. Any effects of changes in income tax rates or laws are included in Income tax expense in the period of enactment. A valuation allowance is recognized if we determine it is more likely than not that all or a portion of a deferred tax asset will not be recognized. In making such determination, the Company considers all available evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent and expected future results of operations.
Recently Adopted Accounting Pronouncements     
We adopted the Accounting Standards Update ("ASU") summarized below in fiscal 2021.
ASUDescriptionDate
Adopted
Simplifying the Accounting for Income Taxes

(ASU 2019-12)
This standard simplifies various aspects related to accounting for income taxes by removing certain exceptions to the general principles in ASC 740, “Income Taxes” (“ASC 740”), and clarifying certain aspects of the current guidance to promote consistency among reporting entities.

The adoption of this standard did not have a material impact to the Company's consolidated financial statements.
December 31, 2020
Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own
Equity (Subtopic 815-40)—Accounting For Convertible Instruments and Contracts in an Entity's Own Equity.

(ASU 2020-06)
This ASU amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity and improves and amends the related earnings per share guidance for both Subtopics.

The Company elected to early adopt this standard, beginning December 31, 2020.

The guidance of this ASU is applicable to the convertible notes issued in March 2021. As a result, the convertible notes are accounted for as a single liability measured at amortized cost. The if-converted earnings per share ("EPS") method is used, with the effect of potential share settlement included in diluted EPS. Refer to Note 8, Debt, and Note 15, Earnings Per Share, for additional information.
December 31, 2020
Recently Issued Accounting Pronouncements
v3.22.0.1
REVENUE (Notes)
 12 Months Ended
Dec. 29, 2021
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Revenue Recognition
Revenue recognized during fiscal 2021, fiscal 2020 and fiscal 2019 disaggregated by type is as follows:
202120202019
Shack sales$714,989 $506,339 $574,625 
Licensing revenue:
Sales-based royalties24,150 15,773 19,318 
Initial territory and opening fees754 755 576 
Total revenue$739,893 $522,867 $594,519 
The aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of December 29, 2021 is $17,633. We expect 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
Opening and closing balances of contract liabilities and receivables from contracts with customers is as follows:
December 29
2021		December 30
2020
Shack sales receivables$6,939 $5,373 
Licensing receivables, net of allowance for doubtful accounts4,005 2,647 
Gift card liability3,297 2,637 
Deferred revenue, current763 608 
Deferred revenue, long-term12,669 12,151 
Revenue recognized during fiscal 2021 and fiscal 2020 that was included in their respective liability balances at the beginning of the period is as follows:
20212020
Gift card liability$456 $537 
Deferred revenue716 723 
v3.22.0.1
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 29, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS 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 approximate their fair value due to the short-term nature of these financial instruments.
As of December 29, 2021 and December 30, 2020, 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. 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 December 29, 2021 and December 30, 2020 were as follows:
Fair Value Measurements
December 29
2021		December 30
2020
Level 1Level 1
Equity securities:
Mutual funds$80,000 $36,887 
Total Marketable securities$80,000 $36,887 
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 from equity securities recognized during fiscal 2021, fiscal 2020 and fiscal 2019 is as follows:
202120202019
Equity securities:
Dividend income$301 $359 $1,244 
Realized gain (loss) on sale of investments(5)79 22 
Unrealized gain (loss) on equity securities(277)(59)194 
Total$19 $379 $1,460 
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
Assets and liabilities that are measured at fair value on a non-recurring basis include our long-lived assets, operating lease right-of-use assets and indefinite-lived intangible assets. There were no impairment charges recognized during fiscal 2021. During 2020, the Company recognized an impairment charge of $7,644 at two Shacks, as well as the home office. Of the total impairment charge, $5,698 was attributed to operating lease right-of-use assets, $1,893 was attributed to property and equipment held and used, and $53 was attributed to finance lease right-of-use assets. The impairment charge was included in Impairment and loss on disposal of assets on the Consolidated Statement of Income (Loss). The fair values of assets were determined using an income-based approach and are classified as Level 3 within the fair value hierarchy. Significant inputs include projections of future cash flows, discount rates, Shack sales and profitability. There were no impairment charges recognized during fiscal 2019.
v3.22.0.1
ACCOUNTS RECEIVABLE
 12 Months Ended
Dec. 29, 2021
Receivables [Abstract]  
ACCOUNTS RECEIVABLE ACCOUNTS RECEIVABLE, NET
The components of Accounts receivable, net as of December 29, 2021 and December 30, 2020 are as follows:
December 29
2021		December 30
2020
Licensing receivables$4,005 $2,675 
Credit card receivables4,091 2,989 
Delivery receivables2,553 2,229 
Other receivables3,008 1,599 
Allowance for doubtful accounts— (28)
Accounts receivable, net$13,657 $9,464 
v3.22.0.1
PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 29, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT, NET
The components of Property and equipment, net as of December 29, 2021 and December 30, 2020 are as follows:

December 29
2021		December 30
2020
Leasehold improvements$413,893 $342,724 
Equipment68,682 60,064 
Furniture and fixtures23,735 20,178 
Computer equipment and software44,821 30,477 
Financing equipment lease right-of-use assets13,741 9,622 
Construction in progress47,282 39,632 
Property and equipment, gross612,154 502,697 
Less: accumulated depreciation(222,768)(166,156)
Property and equipment, net$389,386 $336,541 
Depreciation expense was $58,961, $48,801 and $40,392 for fiscal 2021, fiscal 2020 and fiscal 2019, respectively.
v3.22.0.1
SUPPLEMENTAL BALANCE SHEET INFORMATION
 12 Months Ended
Dec. 29, 2021
Supplemental Balance Sheet Disclosures [Abstract]  
SUPPLEMENTAL BALANCE SHEET INFORMATION SUPPLEMENTAL BALANCE SHEET INFORMATION
The components of Other current liabilities as of December 29, 2021 and December 30, 2020 are as follows:
December 29
2021		December 30
2020
Sales tax payable$4,575 $4,285 
Gift card liability3,297 2,637 
Current portion of financing equipment lease liabilities2,711 1,998 
Other3,918 5,280 
Other current liabilities$14,501 $14,200 
The components of Other long-term liabilities as of December 29, 2021 and December 30, 2020 are as follows:
December 29
2021		December 30
2020
Deferred licensing revenue$12,669 $12,151 
Long-term portion of financing equipment lease liabilities4,303 3,586 
Other(1)
5,801 8,723 
Other long-term liabilities$22,773 $24,460 
(1)As of December 29, 2021, Other included $3,334 of deferred lease incentive liabilities related to leases with variable lease cost as well as $2,182 of deferred social security taxes associated with the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). As of December 30, 2020, Other included $3,182 of deferred lease incentive liabilities related to leases with variable lease cost as well as $5,214 of deferred social security taxes associated with the CARES Act. Refer to Note 14, Income Taxes, for additional information relating to the CARES Act
v3.22.0.1
DEBT
 12 Months Ended
Dec. 29, 2021
Debt Disclosure [Abstract]  
DEBT DEBT
Revolving Credit Facility
In August 2019, we entered into a revolving credit facility agreement ("Revolving Credit Facility"), which permits borrowings up to $50,000, of which the entire amount is available immediately, with the ability to increase available borrowings up to an additional $100,000, to be made available subject to satisfaction of certain conditions. The Revolving Credit Facility also permits the issuance of letters of credit upon our request of up to $15,000.
In March 2020, we drew down the full $50,000 available under the Revolving Credit Facility to enhance liquidity and financial flexibility given the uncertain market conditions created by the COVID-19 pandemic. We repaid this amount in full, plus interest, in June 2020.
In May 2020, we entered into a first amendment to the Revolving Credit Facility ("First Amendment"), which, among other things, provides for modified financial covenant compliance requirements for a period of time. The First Amendment requires us to maintain minimum liquidity of $25,000 through July 1, 2021 and outstanding borrowings during the applicable period covered by the First Amendment bear interest at either: (i) LIBOR plus a percentage ranging from 1.0% to 2.5% or (ii) the base rate plus a percentage ranging from 0.0% to 1.5%, in each case depending on our net lease adjusted leverage ratio.
In March 2021, the Company entered into a second amendment to the Revolving Credit Facility (“Second Amendment”). The Second Amendment modified the applicable covenants and restrictions in the Revolving Credit Facility to permit the incurrence of the Convertible Notes (as defined below), including obligations and transactions in connection therewith. In addition, the Second Amendment, among other things, (i) permit minimum liquidity to be less than $25,000 through July 1, 2022; (ii) extended the period applicable to the increased interest rate margin as set forth in the First Amendment; (iii) shortened the maturity date of the Revolving Credit Facility from August 2024 to September 2022 and (iv) added mechanics relating to the transition from the use of LIBOR to the Secured Overnight Financing Rate ("SOFR") upon the discontinuance or unavailability of LIBOR.
Subsequently, and also in March 2021, the Company entered into a third amendment to the Revolving Credit Facility (“Third Amendment”) as Wells Fargo Bank resigned as administrative agent under the Revolving Credit Facility and assigned its commitments thereunder to JPMorgan Bank, N.A. The Third Amendment appoints JPMorgan Bank, N.A. as administrative agent under the Revolving Credit Facility. In addition, the Third Amendment, among other things, extends the maturity date of the Revolving Credit Facility from September 2022 to March 2026. As of December 29, 2021 and December 30, 2020, 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. The Company is not subject to these coverage ratios for a period of time due to the Second Amendment to the Revolving Credit Facility described above. In addition, the Revolving Credit Facility contains other customary affirmative and negative covenants, including those which (subject to certain exceptions and dollar thresholds) limit the Company's ability to incur debt; incur liens; make investments; engage in mergers, consolidations, liquidations or acquisitions; dispose of assets; make distributions on or repurchase equity securities; pay dividends; engage in transactions with affiliates; and prohibits the Company, with certain exceptions, from engaging in any line of business not related to its current line of business. As of December 29, 2021, the Company was in compliance with all covenants.
As of December 29, 2021, the Revolving Credit Facility had unamortized deferred financing costs of $82, and was included in Other assets on the Consolidated Balance Sheets. Total interest expense related to the Revolving Credit Facility was $479, $531 and $49, respectively, for fiscal 2021, fiscal 2020 and fiscal 2019. Interest expense for fiscal 2021 primarily included the write-off of previously capitalized costs on the Revolving Credit Facility.
Convertible Notes
In March 2021, the Company issued $225,000 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 Company granted an option to the initial purchasers to purchase up to an additional $25,000 aggregate principal amount of Convertible Notes to cover over-allotments, which was subsequently fully exercised during March 2021, resulting in a total issuance of $250,000 aggregate principal amount of Convertible Notes. 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 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 December 29, 2021, the Convertible Notes had a gross principal balance of $250,000 and a balance of $243,542, net of unamortized discount and debt issuance costs of $6,458. As of December 29, 2021, the unamortized balance of discount and debt issuance costs was recorded as a contra-liability and netted with Long-term debt on the Consolidated Balance Sheets and was being amortized as interest expense using the effective interest method. Total amortization expense was $867 and was included in Interest expense in the Consolidated Statements of Income (Loss). In connection with the issuance of the Convertible Notes, the Company also incurred consulting and advisory fees of $231 as of December 29, 2021 and was included in General and administrative expenses in the Consolidated Statements of Income (Loss).
At December 29, 2021, the fair value of the Convertible Notes was approximately $206,018, 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.
v3.22.0.1
LEASES
 12 Months Ended
Dec. 29, 2021
Leases [Abstract]  
LEASES LEASES
Nature of Leases
We currently lease all of our domestic Company-operated Shacks, our home office and certain equipment under various non-cancelable lease agreements that expire on various dates through 2038. We evaluate 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. We evaluate whether we control the use of the asset, which is determined by assessing whether we obtain substantially all economic benefits from the use of the asset, and whether we have the right to direct the use of the asset. If these criteria are met and we have identified a lease, we account for the contract under the requirements of Accounting Standards Codification Topic 842.
Upon the possession of a leased asset, we determine its classification as an operating or finance lease. Our real estate leases are classified as operating leases and most of our equipment leases are classified as finance leases. Generally, our 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 we would exercise the options to extend the lease. Our real estate leases typically provide for fixed minimum rent payments and/or contingent rent payments 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 we take possession of the leased property. Lease expense incurred before a Shack opens is recorded in Pre-opening costs on the Consolidated Statements of Income (Loss). Once a domestic Company-operated Shack opens, we record the straight-line lease expense and contingent rent, if applicable, in Occupancy and related expenses on the Consolidated Statements of Income (Loss). Many of our leases also require us to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in Occupancy and related expenses on the Consolidated Statements of Income (Loss).
As there are no explicit rates provided in our leases, we use our incremental borrowing rate in determining the present value of future lease payments. The discount rate 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 incremental borrowing rate is our credit rating and is subject to judgment. We determined our credit rating based on a comparison of the financial information of SSE Holdings to other public companies and then use their respective credit ratings to develop our own.
We expend cash for leasehold improvements to build out and equip our leased premises. Generally, a portion of the leasehold improvements and building costs are reimbursed by our landlords through landlord incentives pursuant to agreed-upon terms in our lease agreements. If obtained, landlord incentives usually take the form of cash, full or partial credits against our future minimum or contingent rents otherwise payable by us or a combination thereof. In most cases, landlord incentives are received after we take possession of the property and as we meet required milestones during the construction of the property. We include
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 right-of-use assets and liabilities as of December 29, 2021 and December 30, 2020 is as follows:
ClassificationDecember 29
2021		December 30
2020
Operating leasesOperating lease assets$347,277 $306,317 
Finance leasesProperty and equipment, net6,810 5,409 
Total right-of-use assets$354,087 $311,726 
Operating leases:
Operating lease liabilities, current$35,519 $35,657 
Long-term operating lease liabilities400,113 343,736 
Finance leases:
Other current liabilities2,711 1,998 
Other long-term liabilities4,303 3,586 
Total lease liabilities$442,646 $384,977 
The components of lease expense for fiscal 2021 and fiscal 2020 are as follows:
ClassificationDecember 29
2021		December 30
2020
Operating lease cost
Occupancy and related expenses
Pre-opening costs
General and administrative expenses
$50,888 $44,910 
Finance lease cost:
Amortization of right-of-use assetsDepreciation and amortization expense2,719 2,257 
Interest on lease liabilitiesInterest expense207 213 
Variable lease costOccupancy and related expenses
Other operating expenses
Pre-opening costs
General and administrative expenses		13,019 13,766 
Short-term lease costOccupancy and related expenses290 494 
Total lease cost$67,123 $61,640 
As of December 29, 2021, future minimum lease payments for operating and finance leases consisted of the following:
Operating LeasesFinance Leases
2022(1)
$50,444 $2,886 
202362,729 1,996 
202462,700 1,234 
202561,795 674 
202658,011 409 
Thereafter249,730 244 
Total minimum payments545,409 7,443 
Less: imputed interest117,380 428 
Total lease liabilities$428,029 $7,015 
(1)Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of December 29, 2021.

As of December 29, 2021 we had additional operating lease commitments of $77,955 for non-cancelable leases without a possession date, which begin to commence in fiscal 2022. These lease commitments are consistent with the leases that we have executed thus far.
A summary of lease terms and discount rates for operating and finance leases as of December 29, 2021 and December 30, 2020 is as follows:
December 29
2021		December 30
2020
Weighted average remaining lease term (years):
Operating leases9.59.7
Finance leases5.45.2
Weighted average discount rate:
Operating leases3.9 %4.2 %
Finance leases3.1 %3.6 %
Supplemental cash flow information related to leases as of December 29, 2021 and December 30, 2020 is as follows:
December 29
2021		December 30
2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$49,079 $42,144 
Operating cash flows from finance leases207 213 
Financing cash flows from finance leases2,694 2,206 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases66,959 59,969 
Finance leases4,119 2,298 
LEASES LEASES
Nature of Leases
We currently lease all of our domestic Company-operated Shacks, our home office and certain equipment under various non-cancelable lease agreements that expire on various dates through 2038. We evaluate 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. We evaluate whether we control the use of the asset, which is determined by assessing whether we obtain substantially all economic benefits from the use of the asset, and whether we have the right to direct the use of the asset. If these criteria are met and we have identified a lease, we account for the contract under the requirements of Accounting Standards Codification Topic 842.
Upon the possession of a leased asset, we determine its classification as an operating or finance lease. Our real estate leases are classified as operating leases and most of our equipment leases are classified as finance leases. Generally, our 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 we would exercise the options to extend the lease. Our real estate leases typically provide for fixed minimum rent payments and/or contingent rent payments 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 we take possession of the leased property. Lease expense incurred before a Shack opens is recorded in Pre-opening costs on the Consolidated Statements of Income (Loss). Once a domestic Company-operated Shack opens, we record the straight-line lease expense and contingent rent, if applicable, in Occupancy and related expenses on the Consolidated Statements of Income (Loss). Many of our leases also require us to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in Occupancy and related expenses on the Consolidated Statements of Income (Loss).
As there are no explicit rates provided in our leases, we use our incremental borrowing rate in determining the present value of future lease payments. The discount rate 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 incremental borrowing rate is our credit rating and is subject to judgment. We determined our credit rating based on a comparison of the financial information of SSE Holdings to other public companies and then use their respective credit ratings to develop our own.
We expend cash for leasehold improvements to build out and equip our leased premises. Generally, a portion of the leasehold improvements and building costs are reimbursed by our landlords through landlord incentives pursuant to agreed-upon terms in our lease agreements. If obtained, landlord incentives usually take the form of cash, full or partial credits against our future minimum or contingent rents otherwise payable by us or a combination thereof. In most cases, landlord incentives are received after we take possession of the property and as we meet required milestones during the construction of the property. We include
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 right-of-use assets and liabilities as of December 29, 2021 and December 30, 2020 is as follows:
ClassificationDecember 29
2021		December 30
2020
Operating leasesOperating lease assets$347,277 $306,317 
Finance leasesProperty and equipment, net6,810 5,409 
Total right-of-use assets$354,087 $311,726 
Operating leases:
Operating lease liabilities, current$35,519 $35,657 
Long-term operating lease liabilities400,113 343,736 
Finance leases:
Other current liabilities2,711 1,998 
Other long-term liabilities4,303 3,586 
Total lease liabilities$442,646 $384,977 
The components of lease expense for fiscal 2021 and fiscal 2020 are as follows:
ClassificationDecember 29
2021		December 30
2020
Operating lease cost
Occupancy and related expenses
Pre-opening costs
General and administrative expenses
$50,888 $44,910 
Finance lease cost:
Amortization of right-of-use assetsDepreciation and amortization expense2,719 2,257 
Interest on lease liabilitiesInterest expense207 213 
Variable lease costOccupancy and related expenses
Other operating expenses
Pre-opening costs
General and administrative expenses		13,019 13,766 
Short-term lease costOccupancy and related expenses290 494 
Total lease cost$67,123 $61,640 
As of December 29, 2021, future minimum lease payments for operating and finance leases consisted of the following:
Operating LeasesFinance Leases
2022(1)
$50,444 $2,886 
202362,729 1,996 
202462,700 1,234 
202561,795 674 
202658,011 409 
Thereafter249,730 244 
Total minimum payments545,409 7,443 
Less: imputed interest117,380 428 
Total lease liabilities$428,029 $7,015 
(1)Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of December 29, 2021.

As of December 29, 2021 we had additional operating lease commitments of $77,955 for non-cancelable leases without a possession date, which begin to commence in fiscal 2022. These lease commitments are consistent with the leases that we have executed thus far.
A summary of lease terms and discount rates for operating and finance leases as of December 29, 2021 and December 30, 2020 is as follows:
December 29
2021		December 30
2020
Weighted average remaining lease term (years):
Operating leases9.59.7
Finance leases5.45.2
Weighted average discount rate:
Operating leases3.9 %4.2 %
Finance leases3.1 %3.6 %
Supplemental cash flow information related to leases as of December 29, 2021 and December 30, 2020 is as follows:
December 29
2021		December 30
2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$49,079 $42,144 
Operating cash flows from finance leases207 213 
Financing cash flows from finance leases2,694 2,206 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases66,959 59,969 
Finance leases4,119 2,298 
v3.22.0.1
EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 29, 2021
Compensation Related Costs [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANSDefined Contribution PlanOur team members are eligible to participate in a defined contribution savings plan maintained by Shake Shack. The plan is funded by participant and employer contributions. We pay our share of the employer contributions directly to the third party trustee. Employer contributions to the plan are at our discretion. We make contributions matching a portion of participants' contributions. We match 100% of participants' contributions for the first 3% of eligible compensation contributed and 50% of contributions made in excess of 3% of eligible compensation up to 5% of eligible compensation. Employer contributions totaled $1,337, $895 and $772, respectively, for fiscal 2021, fiscal 2020 and fiscal 2019.
v3.22.0.1
STOCKHOLDER'S EQUITY
 12 Months Ended
Dec. 29, 2021
Equity [Abstract]  
STOCKHOLDER'S EQUITY STOCKHOLDERS' EQUITY
Equity Offering
On April 17, 2020, we announced an “at-the-market” equity offering program (the “ATM Program”), under which we may offer and sell shares of our Class A common stock having an aggregate price of up to $75,000 from time to time. On April 21, 2020, we completed the sale of 233,467 shares of our Class A common stock pursuant to the ATM Program and received $9,794 of proceeds, net of commissions. The proceeds were used to purchase newly-issued LLC Interests.
On April 21, 2020, we completed an underwritten offering of 3,416,070 shares of our Class A common stock, resulting in $135,857 of proceeds, net of underwriting discounts and commissions. The proceeds were used to purchase newly-issued LLC Interests.
Redemptions of LLC Interests
The SSE Holdings LLC Agreement provides that holders of LLC Interests may, from time to time, require SSE Holdings to redeem all or a portion of their LLC Interests for newly-issued shares of Class A common stock on a one-for-one basis. In connection with any redemption or exchange, we receive a corresponding number of LLC Interests, increasing our total ownership interest in SSE Holdings. Simultaneously, and in connection with a redemption, the corresponding number of shares of Class B common stock are surrendered and cancelled.
The following table summarizes redemptions of LLC Interests activity during fiscal 2021, fiscal 2020 and fiscal 2019:
202120202019
Redemption and acquisition of LLC Interests
Number of LLC Interests redeemed by non-controlling interest holders29,601 194,009 1,721,887 
Number of LLC Interests acquired in connection with the Gramercy Tavern Corp. Merger— — 2,690,263 
Number of LLC Interests received by Shake Shack Inc.29,601 194,009 4,412,150 
Issuance of Class A common stock
Shares of Class A common stock issued in connection with redemptions of LLC Interests29,601 194,009 1,721,887 
Shares of Class A common stock issued in connection with the Gramercy Tavern Corp. Merger— — 2,690,263 
Cancellation of Class B common stock
Shares of Class B common stock surrendered and cancelled29,601 194,009 1,721,887 
Shares of Class B common stock surrendered and cancelled in connection with the Gramercy Tavern Merger— — 2,690,263 
Stock Compensation Plan Activity
We received an aggregate of 395,006, 456,942 and 484,319 LLC Interests in connection with the activity under our stock compensation plan during fiscal 2021, fiscal 2020 and fiscal 2019, respectively. 
Dividend Restrictions
We are a holding company with no direct operations. As a result, our ability to pay cash dividends on our common stock, if any, is dependent upon cash dividends, distributions or other transfers from SSE Holdings. The amounts available to us to pay cash dividends are subject to certain covenants and restrictions set forth in the Revolving Credit Facility. As of December 29, 2021, essentially all of the net assets of SSE Holdings were restricted. Refer to Note 8, Debt, for additional information relating to the covenants and restrictions set forth in the Revolving Credit Facility.
Gramercy Tavern Corp. Merger
Pursuant to a Stockholders Agreement, dated February 4, 2015, as amended, by and among Daniel H. Meyer, the Daniel H. Meyer 2012 Gift Trust, now known as the DHM Gift Trust (the "Gift Trust"), other affiliates (collectively, the "Meyer Stockholders") and other parties thereto, the Meyer Stockholders had the right to cause all of the shares of Gramercy Tavern Corp. ("GTC") to be exchanged for shares of our Class A common stock pursuant to a tax-free reorganization. In August 2019, the Meyer Stockholders exercised their right with respect to GTC (the "GTC Merger"). To effect the GTC Merger, a newly-formed wholly-owned subsidiary of Shake Shack Inc. merged with and into GTC, with GTC as the surviving entity, which was then merged with and into Shake Shack Inc. Prior to the GTC Merger, GTC owned 2,690,263 LLC Interests and an equivalent number of shares of our Class B common stock. The stockholders of GTC, received on a one-for-one basis, 2,690,263 shares of Class A common stock based upon the amount of shares of GTC held by the stockholders; all of the shares of Class B common stock held by GTC were cancelled; and all of the LLC Interests held by GTC were transferred to us.
v3.22.0.1
NON-CONTROLLING INTERESTS
 12 Months Ended
Dec. 29, 2021
Noncontrolling Interest [Abstract]  
NON-CONTROLLING INTERESTS NON-CONTROLLING INTERESTSWe are the sole managing member of SSE Holdings and, as a result, consolidate the financial results of SSE Holdings. We report 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, we will receive a corresponding number of LLC Interests, increasing our total ownership interest in SSE
Holdings. Changes in our ownership interest in SSE Holdings while we retain a 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 December 29, 2021 and December 30, 2020:
20212020
LLC InterestsOwnership %LLC InterestsOwnership %
Number of LLC Interests held by Shake Shack Inc.39,142,397 93.1 %38,717,790 92.9 %
Number of LLC Interests held by non-controlling interest holders2,921,587 6.9 %2,951,188 7.1 %
Total LLC Interests outstanding42,063,984 100.0 %41,668,978 100.0 %
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 fiscal 2021 and fiscal 2020 was 7.0% and 7.7%, respectively.
During fiscal 2021, an aggregate of 29,601 LLC Interests were redeemed by the non-controlling interest holders for newly-issued shares of Class A common stock, and we received 29,601 LLC Interests, increasing our total ownership interest in SSE Holdings to 93.1%.
During fiscal 2020, an aggregate of 194,009 LLC Interests were redeemed by the non-controlling interest holders for newly-issued shares of Class A common stock, and we received 194,009 LLC Interests, increasing our total ownership interest in SSE Holdings to 92.9%.
The following table summarizes the effects of changes in ownership in SSE Holdings on our equity during fiscal 2021, fiscal 2020 and fiscal 2019.
202120202019
Net income (loss) attributable to Shake Shack Inc.$(8,655)$(42,158)$19,827 
Other comprehensive income (loss):
Unrealized gain (loss) on foreign currency translation adjustment(2)1 2 
Transfers (to) from non-controlling interests:
Increase in additional paid-in capital as a result of the redemption of LLC Interests33 1,723 11,934 
Increase in additional paid-in-capital as a result of the GTC Merger— — 19,218 
Increase in additional paid-in capital as a result of activity under the stock compensation plan and the related income tax effect1,829 5,909 4,517 
Increase in additional paid-in-capital as a result of the issuance of Class A common stock sold in equity offerings— 135,718 — 
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.$(6,795)$101,193 $55,498 
We received an aggregate of 395,006 and 456,942 LLC Interests in connection with the activity under our stock compensation plans during fiscal 2021 and fiscal 2020, respectively.
v3.22.0.1
EQUITY-BASED COMPENSATION
 12 Months Ended
Dec. 29, 2021
Share-based Payment Arrangement [Abstract]  
EQUITY-BASED COMPENSATION EQUITY-BASED COMPENSATION
A summary of equity-based compensation expense recognized during fiscal 2021, fiscal 2020 and fiscal 2019 is as follows:
202120202019
Stock options$3 $322 $2,626 
Performance stock units3,471 1,309 3,035 
Restricted stock units5,229 3,929 1,844 
Equity-based compensation expense$8,703 $5,560 $7,505 
Total income tax benefit recognized related to equity-based compensation$223 $204 $188 
Equity-based compensation expense is recorded in General and administrative expenses and Labor and related expenses on the Consolidated Statements of Income (Loss) during fiscal 2021, fiscal 2020 and fiscal 2019 as follows:
202120202019
General and administrative expenses$7,907 $5,039 $7,189 
Labor and related expenses796 521 316 
Equity-based compensation expense$8,703 $5,560 $7,505 
We capitalized $100, $40 and $195 of equity-based compensation expense associated with the construction cost of our Shacks and our enterprise-wide system upgrade, Project Concrete, during fiscal 2021, fiscal 2020 and fiscal 2019, respectively.
Stock Options
In January 2015, we adopted the 2015 Incentive Award Plan (the "2015 Plan") under which we may grant up to 5,865,522 stock options and other equity-based awards to team members, directors and officers. The stock options granted generally vest equally over periods ranging from one to five years. We do not use cash to settle any of our equity-based awards, and we issue new shares of Class A common stock upon the exercise of stock options.
The fair value of stock option awards was determined on the grant date using the Black-Scholes valuation model based on the following weighted average assumptions:
202120202019
Expected term (years)(1)
7.57.57.5
Expected volatility(2)
45.4 %42.3 %42.2 %
Risk-free interest rate(3)
1.4 %0.7 %2.4 %
Dividend yield(4)
— %— %— %
(1)Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.
(2)Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.
(3)The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.
(4)We have assumed a dividend yield of zero as we have no plans to declare dividends in the foreseeable future.
A summary of stock option activity for fiscal year 2021 is as follows:
Stock
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic ValueWeighted Average Remaining Contractual Life (Years)
Outstanding as of December 30, 2020489,024 $21.83 
Granted1,698 119.39 
Exercised(323,512)21.19 
Forfeited(12,979)51.15 
Outstanding as of December 29, 2021154,231 $21.77 $7,456 3.2
Options vested and exercisable as of December 29, 2021154,231 $21.77 $7,456 3.2
Options expected to vest as of December 29, 2021— $— $— —
As of December 29, 2021, total unrecognized compensation expense related to unvested stock options was nil. Cash received from stock options exercised was $6,731 and the cash tax benefit realized for the tax deductions from these option exercises was $365 for fiscal 2021. The weighted average grant date fair value of options granted during fiscal 2021, fiscal 2020 and fiscal 2019 was $58.92, $16.21, $26.42, respectively. The total intrinsic value of stock options exercised during fiscal 2021, fiscal 2020 and fiscal 2019 was $30,533, $25,824 and $16,905, respectively. The total fair value of stock options vested during fiscal 2021, fiscal 2020 and fiscal 2019 was $60, $2,674 and $2,950, respectively.
The following table summarizes information about stock options outstanding and exercisable as December 29, 2021:
Options OutstandingOptions Exercisable
Number Outstanding at December 29, 2021Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise PriceNumber Exercisable at December 29, 2021Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise Price
Exercise Price
$21.00 145,712 3.1$21.00 145,712 3.1$21.00 
$34.62 7,411 4.4$34.62 7,411 4.4$34.62 
$36.41 1,108 4.9$36.41 1,108 4.9$36.41 
Performance Stock Units
Under the 2015 Plan, we may grant performance stock units and other types of performance-based equity awards that vest based on the outcome of certain performance criteria that are established and approved by the Compensation Committee of the Board of Directors. The actual number of equity awards earned is based on the level of performance achieved over a predetermined performance period, relative to established financial goals, none of which are considered market conditions.
For performance stock units granted during fiscal 2021, the amount of awards that can be earned ranges from 0% to 200% of the number of performance stock units granted, based on the achievement of approved financial goals over a one-year or three-year performance period. In addition to the performance conditions, performance stock units are also subject to a requisite service period and the awards vest ratably over four years or cliff vest over three years. The fair value of performance stock units is determined based on the closing market price of our Class A common stock on the date of grant. Compensation expense related to the performance stock units is recognized using either a graded-vesting attribution method or straight-line over the vesting period based on the most probable outcome of the performance conditions.
A summary of performance stock unit activity for fiscal year 2021, is as follows:
Performance
Stock
Units
Weighted
Average
Grant Date Fair Value
Outstanding as of December 30, 2020137,221 $55.67 
Granted165,263 98.87 
Performance achievement(1)
(74,137)57.20 
Vested(29,892)55.24 
Forfeited(12,296)103.83 
Outstanding as of December 29, 2021186,159 $90.31 
(1)Represents the incremental awards earned and/or awards forfeited based on the achievement of performance conditions.

As of December 29, 2021, there were 186,159 performance stock units outstanding, of which none were vested. The weighted average grant date fair value of share awards granted during fiscal 2021, fiscal 2020 and fiscal 2019 were $98.87, $57.20, and $52.47, respectively. The total fair value of awards that vested during fiscal 2021, fiscal 2020 and fiscal 2019 was $3,083, $2,730 and $3,456, respectively. As of December 29, 2021, total unrecognized compensation expense related to unvested performance stock units was $12,058, which is expected to be recognized over a weighted average period of 2.8 years.
Restricted Stock Units
Under the 2015 Plan, we may grant restricted stock units to team members, directors and officers. The restricted stock units granted generally vest equally over periods ranging from one to five years. The fair value of restricted stock units is determined based on the closing market price of our Class A common stock on the date of grant. Compensation expense related to the restricted stock units is recognized using a straight-line attribution method over the vesting period.
A summary of restricted stock unit activity for fiscal year 2021 is as follows:
Restricted
Stock
Units
Weighted
Average
Grant Date Fair Value
Outstanding as of December 30, 2020258,493 $54.33 
Granted127,013 117.39 
Vested(75,312)55.23 
Forfeited(78,765)66.87 
Outstanding as of December 29, 2021231,429 $84.37 
As of December 29, 2021, there were 231,429 restricted stock units outstanding, of which none were vested. The weighted average grant date fair value of share awards granted during fiscal 2021, fiscal 2020 and fiscal 2019 were $117.39, $57.41, and $52.51, respectively. The total fair value of shares vested during fiscal 2021, fiscal 2020 and fiscal 2019 was $8,385, $2,463 and $947, respectively. As of December 29, 2021, total unrecognized compensation expense related to unvested restricted stock units was $14,984, which is expected to be recognized over a weighted average period of 2.9 years.
v3.22.0.1
INCOME TAXES
 12 Months Ended
Dec. 29, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXESWe are the sole managing member of SSE Holdings, and as a result, consolidate the financial results of SSE Holdings. SSE Holdings is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, SSE Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by
SSE Holdings is passed through to and included in the taxable income or loss of its members, including us, on a pro rata basis. We are subject to U.S. federal income taxes, in addition to state and local income taxes with respect to our allocable share of any taxable income or loss of SSE Holdings, as well as any stand-alone income or loss generated by Shake Shack Inc. We are also subject to withholding taxes in foreign jurisdictions.
Income Tax Expense
The components of Income (loss) before income taxes are follows:
202120202019
Domestic$(38,833)$(59,873)$11,797 
Foreign21,498 14,396 15,717 
Income (loss) before income taxes$(17,335)$(45,477)$27,514 
The components of Income tax expense (benefit) are as follows:
202120202019
Current income taxes:
Federal$— $— $2,984 
State and local275 190 4,283 
Foreign2,880 1,223 2,183 
Total current income taxes3,155 1,413 9,450 
Deferred income taxes:
Federal(9,798)(12,638)(5,643)
State and local(581)11,282 (421)
Total deferred income taxes(10,379)(1,356)(6,064)
Income tax expense (benefit)$(7,224)$57 $3,386 
Reconciliations of Income tax expense (benefit) computed at the U.S. federal statutory income tax rate to the recognized Income tax expense (benefit) and the U.S. statutory income tax rate to our effective tax rates are as follows:
202120202019
Expected U.S. federal income taxes at statutory rate$(3,641)21.0 %$(9,550)21.0 %$5,778 21.0 %
State and local income taxes, net of federal benefit862 (5.0)%5,776 (12.7)%3,924 14.2 %
Foreign withholding taxes2,880 (16.6)%1,223 (2.7)%2,183 7.9 %
Tax credits(3,655)21.1 %(1,533)3.4 %(3,007)(10.9)%
Non-controlling interest1,327 (7.7)%537 (1.2)%(1,405)(5.1)%
Remeasurement of deferred tax assets in connection with other tax rate changes1,034 (6.0)%5,433 (11.9)%208 0.8 %
Change in valuation allowance(6,059)35.0 %(2,264)5.0 %(4,669)(17.0)%
Other28 (0.2)%435 (1.0)%374 1.4 %
Income tax expense (benefit)$(7,224)41.7 %$57 (0.1)%$3,386 12.3 %
Our effective income tax rates for fiscal 2021, fiscal 2020 and fiscal 2019 were 41.7%, (0.1)% and 12.3%, respectively. The increase in our effective income tax rate from fiscal 2020 to fiscal 2021 was primarily driven by the increase in the income tax benefit from the release of the valuation allowance and higher tax credits, partially offset by higher foreign tax expense. The decrease in our effective income tax rate from fiscal 2019 to fiscal 2020 was primarily driven by lower tax rates for foreign and state taxes mainly in connection with lower pre-tax book income and remeasurement of deferred tax assets, partially offset by lower tax credit and an increase in valuation allowance.
Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities are as follows:
December 29
2021		December 30
2020
Deferred tax assets:
Investment in partnership$116,639 $139,379 
Tax Receivable Agreement63,983 63,853 
Operating lease liability3,873 3,470 
Financing lease liability63 51 
Deferred revenue150 141 
Equity-based compensation263 331 
Net operating loss carryforwards108,207 75,522 
Tax credits13,297 9,610 
Other assets569 457 
Total gross deferred tax assets307,044 292,814 
Valuation allowance(5,173)(2,656)
Total deferred tax assets, net of valuation allowance301,871 290,158 
Deferred tax liabilities:
Property and equipment(21)(300)
Operating lease right-of-use asset (3,121)(2,802)
Financing lease right-of-use asset (61)(49)
Total gross deferred tax liabilities(3,203)(3,151)
Net deferred tax assets$298,668 $287,007 
As of December 29, 2021, our federal and state net operating loss carryforwards for income tax purposes were $448,833 and $237,691. If not utilized, $396,966 of our federal net operating losses can be carried forward indefinitely, and the remainder will begin to expire in 2035. If not utilized $41,271 of our state net operating loss carryforwards can be carried forward indefinitely, and the remainder will begin to expire in 2023. As of December 29, 2021, we had federal tax credit carryforwards of $12,689 which will begin to expire in 2025 and gross state tax credits of $770 which will begin to expire in 2022.
As described in Note 11, Stockholders' Equity, we acquired an aggregate of 424,607 LLC Interests during fiscal 2021 through redemptions of LLC Interests and activity under stock-based compensation plans. We recognized a deferred tax asset in the amount of $9,609 associated with the basis difference in our investment in SSE Holdings upon acquiring these LLC Interests. As of December 29, 2021, the total deferred tax asset related to the basis difference in our investment in SSE Holdings was $116,639. However, a portion of the total basis difference will only reverse upon the eventual sale of our interest in SSE Holdings, which we expect would result in a capital loss. During fiscal 2021, the total valuation allowance established against this deferred tax asset to which it relates was $361.
During fiscal 2021, we also recognized other income of $2, related to additional tax basis changes 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.
We evaluate the realizability of our deferred tax assets on a quarterly basis and establish 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 December 29, 2021, we concluded, based on the weight of all available positive and negative evidence, that all of our deferred tax assets (except for those deferred tax assets described above relating to basis differences that expected to result in a capital loss upon the eventual sale of our interest in SSE Holdings) are more likely than not to be realized, except for tax credits related to New York City UBT and certain foreign
tax credits no longer expected to be utilized before expiration. As such, a valuation allowance in the amount of $5,173 was recognized. The net change in valuation allowance for fiscal 2021 was an increase of $2,517. See "Schedule II " for details.
Uncertain Tax Positions
There were no reserves for uncertain tax positions as of December 29, 2021 and December 30, 2020. Shake Shack Inc. was formed in September 2014 and did not engage in any operations prior to the IPO and Organizational Transactions. The statute of limitations remains open for tax years beginning in 2015 for Shake Shack Inc. Additionally, although SSE Holdings is treated as a partnership for U.S. federal and state income taxes purposes, it is still required to file an annual U.S. Return of Partnership Income, which is subject to examination by the Internal Revenue Service ("IRS"). The statute of limitations has expired for tax years through 2017 for SSE Holdings.
Tax Receivable Agreement
Pursuant to our election under Section 754 of the Internal Revenue Code (the "Code"), we expect to obtain an increase in our share of the tax basis in the net assets of SSE Holdings when LLC Interests are redeemed or exchanged by the non-controlling interest holders and other qualifying transactions. We plan to make an election under Section 754 of Code for each taxable year in which a redemption or exchange of LLC Interest occurs. We intend to treat any redemptions and exchanges of LLC Interests by the non-controlling interest holders as direct purchases of LLC Interests for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that we would otherwise pay 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, we entered into a tax receivable agreement with the then-existing non-controlling interest holders (the "Tax Receivable Agreement") that provides for the payment by us to the non-controlling interest holders of 85% of the amount of any tax benefits that we actually realize, or in some cases are deemed to realize, as a result of (i) increases in our 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"). We expect to benefit from the remaining 15% of any tax benefits that we may actually realize. The TRA Payments are not conditioned upon any continued ownership interest in SSE Holdings or us. The rights of each non-controlling interest holder under the Tax Receivable Agreement are assignable to transferees of its LLC Interests.
During fiscal 2021, we acquired an aggregate of 29,601 LLC Interests in connection with the redemption of LLC Interests that resulted in an increase in the tax basis of our investment in SSE Holdings subject to the provisions of the Tax Receivable Agreement. We recognized an additional liability in the amount of $1,093 for the TRA Payments due to the redeeming members, representing 85% of the aggregate tax benefits we expect 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 our estimates of future taxable income. During fiscal 2021, inclusive of interest, no payments were made to the members of SSE Holdings pursuant to the Tax Receivable Agreement. Payments of $6,643 were made to members of SSE Holdings pursuant to the Tax Receivable Agreement during fiscal 2020. As of December 29, 2021, the total amount of TRA Payments due under the Tax Receivable Agreement was $234,045, of which no amount was included in Other current liabilities on the Consolidated Balance Sheet. Refer to Note 17, Commitments and Contingencies, for additional information relating to our liabilities under the Tax Receivable Agreement.
v3.22.0.1
EARNINGS PER SHARE
 12 Months Ended
Dec. 29, 2021
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share of Class A common stock is computed by dividing Net income (loss) attributable to Shake Shack Inc. by the weighted average number of shares of Class A common stock outstanding during the period. Diluted earnings (loss) per share of Class A common stock is computed by dividing Net income (loss) attributable to Shake Shack Inc. by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings (loss) per share of Class A common stock (in thousands, except per share amounts) for fiscal 2021, fiscal 2020 and fiscal 2019.
202120202019
Numerator:
Net income (loss) attributable to Shake Shack Inc.—basic$(8,655)$(42,158)$19,827 
Net income (loss) attributable to Shake Shack Inc.—diluted$(8,655)$(42,158)$19,827 
Denominator:
Weighted average shares of Class A common stock outstanding—basic39,085 37,129 31,381 
Effect of dilutive securities:
Stock options— — 743 
Performance stock units— — 70 
Restricted stock units— — 57 
Weighted average shares of Class A common stock outstanding—diluted39,085 37,129 32,251 
Earnings (loss) per share of Class A common stock—basic$(0.22)$(1.14)$0.63 
Earnings (loss) per share of Class A common stock—diluted$(0.22)$(1.14)$0.61 
Shares of Class B common stock do not share in the earnings or losses of Shake Shack and are therefore not participating securities. As such, separate presentation of basic and diluted earnings (loss) per share of Class B common stock under the two-class method has not been presented. However, shares of Class B common stock outstanding for the period are considered potentially dilutive shares of Class A common stock under application of the if-converted method and are included in the computation of diluted earnings (loss) per share, except when the effect would be anti-dilutive.
The effect of potential share settlement of the Convertible Notes outstanding for the period is included as potentially dilutive shares of Class A common stock under application of the if-converted method in the computation of diluted earnings (loss) per share, except when the effect would be anti-dilutive. Refer to Note 8, Debt, for additional information.
The following table presents potentially dilutive securities, as of the end of the period, excluded from the computations of diluted earnings (loss) per share of Class A common stock for fiscal 2021, fiscal 2020 and fiscal 2019.
202120202019
Stock options154,231 (1)489,024 (1)946 (2)
Performance stock units186,159 (1)137,221 (1)51,197 (3)
Restricted stock units231,429 (1)258,493 (1)— 
Shares of Class B common stock2,921,587 (1)2,951,188 (1)3,145,197 (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)Weighted average number of securities excluded from the computation of diluted earnings per share of Class A common stock because the exercise price of the stock options exceeded the average market price of our Class A common stock during the period ("out-of-the-money").
(3)Weighted average number of securities excluded from the computation of diluted earnings per share of Class A common stock because the performance conditions associated with these awards were not met for a portion of the fiscal year.
v3.22.0.1
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 29, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Lease Commitments
We are obligated under various operating leases for Shacks and our home office space, expiring in various years through 2038. Under certain of these leases, we are liable for contingent rent based on a percentage of sales in excess of specified thresholds and are responsible for our proportionate share of real estate taxes, common area maintenance costs and other occupancy costs. Refer to Note 9, Leases, for additional information.
As security under the terms of one of our leases, we are obligated under a letter of credit totaling $130 as of December 29, 2021, which expires in February 2026. Additionally, in September 2017, we entered into a letter of credit in conjunction with our new home office lease in the amount of $603, which expires in August 2022 and renews automatically for one-year periods through January 31, 2034.
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. We also enter into long-term, exclusive contracts with certain vendors to supply us with food, beverages and paper goods, obligating us to purchase specified quantities.
Legal Contingencies
We are involved with ongoing regulatory and private matters involving New York City's predictive scheduling laws. We intend to defend against these claims and it is not possible at this time to reasonably estimate the outcome of or any potential liability from these matters. No amounts have been accrued as of December 29, 2021 and December 30, 2020.
In March 2020, a claim was filed against Shake Shack alleging certain violations of the Fair Labor Standards Act. At a mediation between the parties, we agreed to settle the matter with the plaintiff and other team members who elect to participate in the settlement for $560. We initially accrued for this matter during the thirteen weeks ended March 31, 2021 with an additional accrual established during fiscal 2021, and paid in full as of December 29, 2021.
In February 2018, a claim was filed against Shake Shack in California state court alleging certain violations of the California Labor Code. At a mediation between the parties, we agreed to settle the matter with the plaintiff and all other California team members who elected to participate in the settlement for $1,200. We accrued for this matter during the fiscal 2018, and paid in full as of December 29, 2021.
We are subject to various legal proceedings, claims and liabilities, such as employment-related claims and slip and fall cases, which arise in the ordinary course of business and are generally covered by insurance. As of December 29, 2021, the amount of the ultimate liability with respect to these matters was not material.
Liabilities under Tax Receivable Agreement
As described in Note 14, Income Taxes, we are a party to the Tax Receivable Agreement under which we are contractually committed to pay the non-controlling interest holders 85% of the amount of any tax benefits that we actually realize, or in some cases are deemed to realize, as a result of certain transactions. We are not obligated to make any payments under the Tax Receivable Agreement until the tax benefits associated the transaction that gave rise to the payment are realized. 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 TRA Payments. As of December 29, 2021, we recognized $234,045 of liabilities relating to our obligations under the Tax Receivable Agreement, after concluding that it was probable that we would have sufficient future taxable income to utilize the related tax benefits. There were no transactions subject to the Tax Receivable Agreement for which we did not recognize the related liability, as we concluded that we would have sufficient future taxable income to utilize all of the related tax benefits generated by all transactions that occurred in fiscal 2021.
v3.22.0.1
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 29, 2021
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
Union Square Hospitality Group
The Chairman of our board of directors serves as the Chief Executive Officer of Union Square Hospitality Group, LLC. As a
result, Union Square Hospitality Group, LLC and its subsidiaries, set forth below, are considered related parties.
Hudson Yards Sports and Entertainment
In fiscal 2011, we 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 us a license fee based on a percentage of net food sales, as defined in the MLA. HYC also pays us a percentage of profits on sales of branded beverages, as defined in the MLA.
Classification202120202019
Amounts received from HYCLicensing revenue$320 $67 $571 
ClassificationDecember 29
2021		December 30
2020
Amounts due from HYCAccounts receivable, net$90 $8 
Madison Square Park Conservancy
The Chairman of our Board of Directors serves as a director of the Madison Square Park Conservancy ("MSP Conservancy"), with which we have a license agreement and pay license fees to operate our Madison Square Park Shack. No amounts were due to MSP Conservancy as of both December 29, 2021 and December 30, 2020.
Classification202120202019
Amounts paid to MSP ConservancyOccupancy and related expenses$863 $846 $964 
Olo, Inc.
The Chairman of our Board of Directors serves as a director of Olo, Inc. (formerly known as "Mobo Systems, Inc."), a platform we use in connection with our mobile ordering application.
Classification202120202019
Amounts paid to Olo, Inc.Other operating expenses$406 $242 $170 
ClassificationDecember 29
2021		December 30
2020
Amounts due to Olo, Inc.Accounts payable$33 $— 
Block, Inc.
Our Chief Executive Officer is a member of the board of directors of Block, Inc. (formerly known as "Square, Inc."). We currently use certain point-of-sale applications, payment processing services, hardware and other enterprise platform services in connection with the processing of a limited amount of sales at certain of our locations, sales for certain off-site events and in connection with our kiosk technology.
Classification202120202019
Amounts paid to Block, Inc.Other operating expenses$2,844 $1,697 $1,692 
ClassificationDecember 29
2021		December 30
2020
Amounts due to Block, Inc.Accounts payable$52 $— 
USHG Acquisition Corp.
Our Chief Executive Officer has been appointed to the board of directors of USHG Acquisition Corp. in which the Chairman of our Board of Directors serves as the chairman of the board of directors of USHG Acquisition Corp. USHG Acquisition Corp. is a newly organized blank check company incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. No amounts were due to or due from USHG Acquisition Corp as of both December 29, 2021 and December 30, 2020. No amounts were paid to USHG Acquisition Corp during fiscal 2021, fiscal 2020 and fiscal 2019.
Tax Receivable Agreement
As described in Note 14, Income Taxes, we entered into a Tax Receivable Agreement with certain members of SSE Holdings that provides for the payment by us of 85% of the amount of tax benefits, if any, that Shake Shack actually realizes or in some cases is deemed to realize as a result of certain transactions.
Classification202120202019
Amounts paid to members (inclusive of interest)Other current liabilities$— $6,643 $707 
ClassificationDecember 29
2021		December 30
2020
Amounts due under the Tax Receivable AgreementOther current liabilities
Liabilities under Tax Receivable Agreement, net of current portion		$234,045 $232,954 
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 December 29, 2021 and December 30, 2020.
Classification202120202019
Amounts paid to non-controlling interest holdersNon-controlling interests$968 $478 $1,708 
Share Our Strength
The Chairman of our Board of Directors served as a director of Share Our Strength in fiscal 2019, for which Shake Shack held the "Great American Shake Sale" to raise money and awareness for childhood hunger. During the Great American Shake Sale, we encouraged guests to donate money to Share Our Strength's No Kid Hungry campaign in exchange for a coupon for a free shake. All of the guest donations we collected went directly to Share Our Strength. No amounts were due to Share Our Strength as of both December 29, 2021 and December 30, 2020.
Classification202120202019
Amounts raised through donations—$— $— $190 
Costs incurred for free shakes redeemedGeneral and administrative expenses$— $— $30 
Gramercy Tavern Corp. Merger
Pursuant to a Stockholders Agreement, dated as of February 4, 2015, as amended, by and among Daniel H. Meyer, the Daniel H. Meyer 2012 Gift Trust dtd 10/31/12 (the "Gift Trust"), other affiliates (collectively, the "Meyer Stockholders") and other parties thereto, the Meyer Stockholders had the right to cause all of the shares of Gramercy Tavern Corp. ("GTC") to be exchanged for shares of our Class A common stock pursuant to a tax-free reorganization. In August 2019, the Meyer Stockholders exercised their right with respect to GTC (the "GTC Merger"). To effect the GTC Merger, a newly-formed wholly-owned subsidiary of Shake Shack Inc. merged with and into GTC, with GTC as the surviving entity, which was then merged with and into Shake Shack Inc. The stockholders of GTC received on a one-for-one basis shares of Class A common stock based upon the amount of shares of GTC held by the stockholders; all of the shares of Class B common stock held by GTC were canceled; and all of the LLC Interests held by GTC were transferred to us. Refer to Note 11, Stockholders' Equity, for additional information.
v3.22.0.1
GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 29, 2021
Segment Reporting [Abstract]  
GEOGRAPHIC INFORMATION GEOGRAPHIC INFORMATION
Revenue by geographic area for fiscal 2021, fiscal 2020 and fiscal 2019 is as follows:
202120202019
United States$718,128 $508,292 $578,702 
Other countries21,765 14,575 15,817 
Total revenue$739,893 $522,867 $594,519 
Revenues are shown based on the geographic location of our customers and licensees. Our long-lived assets are primarily located in the United States.
v3.22.0.1
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 29, 2021
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT
SHAKE SHACK INC.
CONDENSED BALANCE SHEETS
(PARENT COMPANY ONLY)
(in thousands, except share and per share amounts)
December 29
2021		December 30
2020
ASSETS
Current assets:
Cash$7,821 $9,469 
Prepaid expenses64 45 
Total current assets7,885 9,514 
Due from SSE Holdings2,035 2,103 
Deferred income taxes, net304,442 285,577 
Investment in SSE Holdings350,794 356,497 
Note receivable from SSE Holdings 201,080 — 
Note receivable - conversion option16,000 — 
TOTAL ASSETS$882,236 $653,691 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable9 3 
Accrued expenses222 125 
Due to SSE Holdings14,109 13,288 
Total current liabilities14,340 13,416 
Long-term debt243,542 — 
Liabilities under tax receivable agreement, net of current portion234,045 232,954 
Total liabilities491,927 246,370 
Commitments and contingencies
Stockholders' equity:
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 29, 2021 and December 30, 2020.— — 
Class A common stock, $0.001 par value—200,000,000 shares authorized; 39,142,397 and 38,717,790 shares issued and outstanding as of December 29, 2021 and December 30, 2020, respectively.39 39 
Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,921,587 and 2,951,188 shares issued and outstanding as of December 29, 2021 and December 30, 2020, respectively.3 3 
Additional paid-in capital405,940 395,067 
Retained earnings (accumulated deficit)(15,674)12,209 
Accumulated other comprehensive income1 3 
Total stockholders' equity390,309 407,321 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$882,236 $653,691 
See accompanying Notes to Condensed Financial Statements.
SHAKE SHACK INC.
CONDENSED STATEMENTS OF INCOME (LOSS)
(PARENT COMPANY ONLY)
(in thousands)
Fiscal Year Ended
December 29
2021		December 30
2020		December 25
2019
Intercompany revenue$2,878 $1,560 $2,018 
TOTAL REVENUE2,878 1,560 2,018 
General and administrative expenses2,491 2,179 1,683 
TOTAL EXPENSES2,491 2,179 1,683 
INCOME (LOSS) FROM OPERATIONS387 (619)335 
Equity in net income (loss) from SSE Holdings(19,393)(41,152)19,831 
Other income (expense), net(25,593)(1,147)808 
Interest expense(867)— (150)
INCOME (LOSS) BEFORE INCOME TAXES(45,466)(42,918)20,824 
Income tax expense (benefit)(17,583)(760)997 
NET INCOME (LOSS)$(27,883)$(42,158)$19,827 
See accompanying Notes to Condensed Financial Statements.
SHAKE SHACK INC.
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(PARENT COMPANY ONLY)
(in thousands)
Fiscal Year Ended
December 29
2021		December 30
2020		December 25
2019
Net income (loss)$(27,883)$(42,158)$19,827 
Other comprehensive income, net of tax(1):
Change in foreign currency translation adjustment(2)1 — 
Change in net unrealized holding gains— — — 
Net change(2)1 — 
OTHER COMPREHENSIVE INCOME (LOSS)(2)1 — 
COMPREHENSIVE INCOME (LOSS)$(27,885)$(42,157)$19,827 
(1)Net of tax benefit of $0 for fiscal years ended December 29, 2021, December 30, 2020 and December 25, 2019.
See accompanying Notes to Condensed Financial Statements.
SHAKE SHACK INC.
CONDENSED STATEMENTS OF CASH FLOWS
(PARENT COMPANY ONLY)
(in thousands)
Fiscal Year Ended
December 29
2021		December 30
2020		December 25
2019
OPERATING ACTIVITIES
Net income (loss)$(27,883)$(42,158)$19,827 
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in net (income) loss from SSE Holdings19,393 41,152 (19,831)
Amortization of debt issuance costs867 — — 
Equity-based compensation526 555 279 
Deferred income taxes(17,583)(721)(5,317)
Non-cash interest expense— — 151 
Unrealized loss on Note receivable - conversion option32,200 — — 
Other non-cash (income) expense(6,609)1,147 (808)
Changes in operating assets and liabilities:
Accounts receivable— 1 (1)
Prepaid expenses and other current assets(19)161 (71)
Due to SSE Holdings(8,229)(1,254)(5,190)
Accounts payable6 2 1 
Accrued expenses118 (29)6,003 
NET CASH USED IN OPERATING ACTIVITIES(7,213)(1,144)(4,957)
INVESTING ACTIVITIES
Purchases of LLC Interests from SSE Holdings(41,875)(171,180)(29,481)
Loan to SSE Holdings(243,750)— — 
NET CASH USED IN INVESTING ACTIVITIES(285,625)(171,180)(29,481)
FINANCING ACTIVITIES
Proceeds from issuance of convertible notes, net of discount243,750 — — 
Debt issuance costs(1,075)— — 
Proceeds from issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs— 144,861 — 
Proceeds from issuance of Class A common stock to SSE Holdings upon settlement of equity awards41,875 26,319 29,481 
Proceeds from stock option exercises6,640 8,033 9,201 
Payments under tax receivable agreement— (6,643)(707)
NET CASH PROVIDED BY FINANCING ACTIVITIES291,190 172,570 37,975 
INCREASE (DECREASE) IN CASH(1,648)246 3,537 
CASH AT BEGINNING OF PERIOD9,469 9,223 5,686 
CASH AT END OF PERIOD$7,821 $9,469 $9,223 

See accompanying Notes to Condensed Financial Statements.
NOTE 1: ORGANIZATION
Shake Shack Inc. (the "Parent Company") was formed on September 23, 2014 as a Delaware corporation and is a holding company with no direct operations. The Parent Company's assets consist primarily of its equity interest in SSE Holdings, LLC ("SSE Holdings") and certain deferred tax assets.
The Parent Company's cash inflows are primarily from cash dividends or distributions and other transfers from SSE Holdings. The amounts available to the Parent Company to fulfill cash commitments and pay cash dividends on its common stock are subject to certain restrictions in SSE Holdings' Revolving Credit Facility. Refer to Note 8, Debt, in the accompanying Consolidated Financial Statements, for additional information.
NOTE 2: BASIS OF PRESENTATION
These Condensed Parent Company financial statements should be read in conjunction with the Consolidated Financial Statements of Shake Shack Inc. and the accompanying notes thereto, included in this Annual Report on Form 10-K. For purposes of these condensed financial statements, the Parent Company's interest in SSE Holdings is recorded based upon its proportionate share of SSE Holdings' net assets (similar to presenting them on the equity method).
The Parent Company is the sole managing member of SSE Holdings, and pursuant to the Third Amended and Restated LLC Agreement of SSE Holdings (the “SSE Holdings LLC Agreement”), receives compensation in the form of reimbursements for all costs associated with being a public company and maintaining its existence. Intercompany revenue consists of these reimbursement payments and is recognized when the corresponding expense to which it relates is recognized. Certain intercompany balances presented in these Condensed Parent Company financial statements are eliminated in the Company's Consolidated Financial Statements.
The following table presents amounts in the Parent Company's Condensed Balance Sheets that were eliminated in consolidation as of December 29, 2021 and December 30, 2020:
December 29
2021		December 30
2020
Due from SSE Holdings$2,035 $2,103 
Deferred income taxes, net7,234 — 
Note receivable from SSE Holdings201,080 — 
Note receivable - conversion option16,000 — 
Due to SSE Holdings14,109 13,288 

Related party amounts that were not eliminated in the Company's Consolidated Financial Statements include the Parent Company's liabilities under the tax receivable agreement, which totaled $234,045 and $232,954 as of December 29, 2021 and December 30, 2020, respectively.
The following table presents amounts in the Parent Company's Condensed Statements of Income (Loss) that were eliminated in consolidation during fiscal 2021, fiscal 2020 and fiscal 2019:
202120202019
Intercompany revenue$2,878 $1,560 $2,018 
Equity in net income (loss) from SSE Holdings(19,393)(41,152)19,831 
Other income (expense), net(25,595)— — 
Income tax expense (benefit)(7,234)— — 
NOTE 3: NOTE RECEIVABLE FROM SSE HOLDINGS
In March 2021, contemporaneously with the issuance of the Convertible Notes described in Note 4, Debt, below, the Parent Company entered into a $250,000 intercompany note with SSE Holdings (the "Intercompany Note"). SSE Holdings promises to pay the Parent Company, for value received, the principal amount with interest of the Intercompany Note in March 2028. The Parent Company 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 the Parent Company and the aggregate number of outstanding shares of Class A common stock.
The Parent Company's right to convert the Intercompany Note into common units of SSE Holdings (the "Conversion Option") is required to be bifurcated from the Intercompany Note and shown separately on the Parent Company's Condensed Balance Sheets. The Conversion Option is to be recorded at fair value and remeasured at each subsequent reporting date. On the date of issuance, the Conversion Option was determined to be an asset with a fair value of $48,200. As of December 29, 2021, the fair value of the Conversion Option was $16,000. The Parent Company recorded an unrealized loss of $32,200 in fiscal 2021 within Other income (expense), net due to the change in fair value of the Conversion Option during the year.
As of December 29, 2021, the balance of the Note receivable from SSE Holdings was $201,080, net of accretion. The Parent Company recognized interest income of $6,605 in fiscal 2021 within Other income (expense), net associated primarily with the accretion of the Conversion Option value at issuance.
NOTE 4: DEBT
In March 2021, the Parent Company issued $225,000 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 Parent Company granted an option to the initial purchasers to purchase up to an additional $25,000 aggregate principal amount of Convertible Notes to cover over-allotments, which was subsequently fully exercised during March 2021, resulting in a total issuance of $250,000 aggregate principal amount of Convertible Notes. 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. Refer to Note 8, Debt, in the accompanying Consolidated Financial Statements, for additional information relating to the Convertible Notes.
NOTE 5: COMMITMENTS AND CONTINGENCIES
On February 4, 2015, the Parent Company entered into a tax receivable agreement with the non-controlling interest holders that provides for payments to the non-controlling interest holders of 85% of the amount of any tax benefits that the Parent Company actually realizes, or in some cases is deemed to realize, as a result of certain transactions. Refer to Note 14, Income Taxes, to the Company's Consolidated Financial Statements for additional information relating to the Parent Company's Tax Receivable Agreement. As described in Note 17, Commitments and Contingencies, to the Company's Consolidated Financial Statements, amounts payable under the Tax Receivable Agreement are contingent upon, among other things, (i) generation of future taxable income of Shake Shack Inc. over the term of the Tax Receivable Agreement and (ii) future changes in tax laws. As of December 29, 2021 and December 30, 2020, liabilities under the tax receivable agreement totaled $234,045 and $232,954, respectively.
NOTE 6: SUPPLEMENTAL CASH FLOW INFORMATION
The following table sets forth supplemental cash flow information for fiscal 2021, fiscal 2020 and fiscal 2019:
202120202019
Cash paid for:
Income taxes$19 $124 $233 
Non-cash investing activities:
Accrued contribution related to stock option exercises6,731 8,094 9,227 
Class A common stock issued in connection with the acquisition of LLC Interests upon redemption by the non-controlling interest holders33 1,723 11,934 
Class A common stock issued in connection with the GTC merger— — 19,218 
Non-cash contribution made in connection with equity awards granted to employees of SSE Holdings11,468 5,193 4,402 
Non-cash financing activities:
Cancellation of Class B common stock in connection with the redemption of LLC Interests— — (2)
Cancellation of Class B common stock in connection with the GTC merger— — (3)
Establishment of liabilities under tax receivable agreement1,093 4,024 32,065 
v3.22.0.1
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS
 12 Months Ended
Dec. 29, 2021
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS Schedule II: Valuation and Qualifying Accounts
Balance at beginning of periodAdditionsReductionsBalance at end of period
(in thousands)Charged to costs and expensesCharged to other accounts
Deferred tax asset valuation allowance:
Fiscal year ended December 25, 2019$6,925 $(4,654)$— $(1,317)$954 
Fiscal year ended December 30, 2020$954 $(2,610)$4,312 $— $2,656 
Fiscal year ended December 29, 2021$2,656 $(6,063)$8,580 (1)$— $5,173 
(1)Amount relates to a valuation allowance established on deferred tax assets related to our investment in SSE Holdings.
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 29, 2021
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of Shake Shack Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current year presentation.
SSE Holdings is a variable interest entity. Shake Shack Inc. is the primary beneficiary as we have the majority economic interest in SSE Holdings and, as the sole managing member, have 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, we will continue to consolidate SSE Holdings. The assets and liabilities of SSE Holdings represent substantially all of our consolidated assets and liabilities with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement. As of December 29, 2021 and December 30, 2020, the net assets of SSE Holdings were $376,857 and $383,669, respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreement. Refer to Note 8, Debt, for additional information.
Fiscal Year
Fiscal Year
We operate on a 52/53 week fiscal year ending on the last Wednesday of December. Fiscal year 2021 contained 52 weeks and ended on December 29, 2021 ("fiscal 2021"). Fiscal year 2020 contained 53 weeks and ended on December 30, 2020 ("fiscal 2020"). Fiscal year 2019 contained 52 weeks and ended on December 25, 2019 ("fiscal 2019"). Unless otherwise stated, references to years in this report relate to fiscal years.
Use of Estimates
Use of Estimates
The preparation of these 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.
Segment Reporting
Segment Reporting
Our chief operating decision maker (the "CODM") is the Chief Executive Officer. We have determined we have one operating segment and one reportable segment, as the CODM regularly reviews Shack operations and financial performance at a consolidated level to allocate resources.
Fair Value Measurements
Fair Value Measurements
We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. We categorize our assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below.
▪Level 1 — Quoted prices in active markets for identical assets or liabilities
▪Level 2 — Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
▪Level 3 — Inputs that are both unobservable and significant to the overall fair value measurements reflecting an entity's estimates of assumptions that market participants would use in pricing the asset or liability.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents consist primarily of cash on hand, deposits with banks, money market funds and short-term, highly liquid investments that have original maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value.
Accounts Receivable Accounts Receivable, NetAccounts receivable, net consist primarily of receivables from our licensees for licensing revenue and related reimbursements, credit card receivables and vendor rebates. We evaluate the collectability of the accounts receivable based on a variety of factors, including historical experience, current economic conditions and other factors.
Inventories
Inventories
Inventories, which consist of food, paper goods, beverages, beer, wine and retail merchandise, are valued at the lower of weighted average cost or net realizable value. No adjustment is deemed necessary to reduce inventory to net realizable value due to the rapid turnover and high utilization of inventory.
Property and Equipment
Property and Equipment, Net
Property and equipment, net is stated at historical cost less accumulated depreciation. Property and equipment is depreciated based on the straight-line method over the estimated useful lives of the assets, generally ranging from five to seven years for both equipment, and furniture and fixtures, and two to five years for computer equipment and software. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the related lease terms.
Costs incurred when constructing Shacks are capitalized. The cost of repairs and maintenance are expensed when incurred. Costs for refurbishments and improvements that significantly increase the productive capacity or extend the useful life of the
asset are capitalized. When assets are disposed of, the resulting gain or loss is recognized in Impairment and loss on disposal of assets on the Consolidated Statements of Income (Loss).
Valuation of Long-lived Assets
We assess potential impairments to our long-lived assets, which includes property and equipment and operating lease right-of-use assets, whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of an asset is measured by a comparison of the carrying value of the asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying value of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying value of the asset exceeds the fair value of the asset, considering external market participant assumptions. Since the determination of future cash flows is an estimate of future performance, there may be future impairments in the event that future cash flows do not meet expectations.
Deferred Financing Costs
Deferred Financing Costs
Deferred financing costs incurred in connection with the issuance of long-term debt and establishing credit facilities are capitalized and amortized in Interest expense based on the related debt agreements. Deferred financing costs are included in Other assets on the Consolidated Balance Sheets.
Other Assets
Other Assets
Other assets consist primarily of capitalized implementation costs from cloud computing arrangements, certain custom pre-ordered furniture, fixtures and equipment for future and existing Shacks, transferable liquor licenses, and security deposits.
Implementation costs associated with cloud computing arrangements hosted by third party vendors are capitalized when incurred during the application development phase. Amortization is calculated on a straight-line basis over the contractual term of the cloud computing arrangement and is recorded within General and administrative expenses on the Consolidated Statements of Income (Loss). As of December 29, 2021 and December 30, 2020, capitalized implementation costs from cloud computing arrangements totaled $6,431 and $6,497, respectively, net of accumulated amortization.
The costs of obtaining non-transferable liquor licenses that are directly issued by local government agencies for nominal fees are expensed as incurred. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets. Annual liquor license renewal fees, for both types of licenses, are expensed over the renewal term. As of December 29, 2021 and December 30, 2020, indefinite-lived intangible assets relating to transferable liquor licenses totaled $1,461 and $1,437, respectively. We evaluate our indefinite-lived intangible assets for impairment annually during the fiscal fourth quarter, and whenever events or changes in circumstances indicate that an impairment may exist. When evaluating intangible assets for impairment, we first perform a qualitative assessment to determine whether it is more likely than not that an intangible asset group is impaired. If we determine that it is more likely than not that the carrying value of the intangible asset group exceeds its fair value, we perform a quantitative assessment to derive the fair value of the intangible asset group. If the carrying value of the intangible asset group exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. In addition, we continuously monitor and may revise our intangible asset useful lives if and when facts and circumstances change.
Equity-based Compensation
Equity-based Compensation
Equity-based compensation expense is measured based on the grant-date fair value of the awards. For awards with graded-vesting features and service conditions only, compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award. For awards with graded-vesting features and a combination of service and performance conditions, compensation expense is recognized using a graded-vesting attribution method over the vesting period based on the most probable outcome of the performance conditions. Actual distributed shares are calculated upon conclusion of the service and performance periods. For stock option awards, the grant-date fair value of the awards is determined using the Black-Scholes option pricing model and involves several assumptions, including the expected term of the option, expected volatility and risk-free interest rate. Forfeitures are recognized as they occur for all equity awards. Equity-based compensation expense is included in General and administrative expenses and Labor and related expenses on the Consolidated Statements of Income (Loss).
Leases
Leases
We currently lease all of our domestic Company-operated Shacks, our home office and certain equipment under various non-cancelable lease agreements that expire on various dates through 2038. Upon the possession of a leased asset, we determine its classification as an operating or financing lease. All of our real estate leases are classified as operating leases and most of our equipment leases are classified as finance leases.
Generally, our real estate leases have initial terms ranging from 10 to 15 years and typically include two five-year renewal options. Renewal options are typically not included in the lease term as it is not reasonably certain at commencement date that we would exercise the options to extend the lease. Our real estate leases typically provide for fixed minimum rent payments and/or contingent rent payments 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 starting on the date we take possession of the leased property. Lease expense incurred before a Shack opens is recorded in Pre-opening costs on the Consolidated Statements of Income (Loss). Once a Shack opens, we record the straight-line lease expense and contingent rent, if applicable, in Occupancy and related expenses on the Consolidated Statements of Income (Loss). Many of our leases also require us to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in Occupancy and related expenses on the Consolidated Statements of Income (Loss).
We calculate 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. We measure the lease liability by discounting the future fixed contractual payments included in the lease agreement, using either the rate explicit in the lease or our incremental borrowing rate (“IBR”). 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 our 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.
For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. 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 leases with a lease term of 12 months or less ("short-term lease"), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Consolidated Balance Sheets. 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 cost for both operating and finance leases, if any, is recognized as incurred.
We expend cash for leasehold improvements to build out and equip our leased premises. Generally, a portion of the leasehold improvements and building costs are reimbursed by our landlords through landlord incentives pursuant to agreed-upon terms in our lease agreements. If obtained, landlord incentives usually take the form of up-front cash, full or partial credits against our future minimum or contingent rents otherwise payable by us, or a combination thereof. In most cases, landlord incentives are received after we take possession of the property and as we meet required milestones during the construction of the property. We include 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.
Pre-opening Costs
Pre-opening costs are expensed as incurred and consist primarily of occupancy, manager and team member wages, legal fees, travel and related training costs, cookware and marketing expenses incurred prior to the opening of a Shack.
Income Taxes
Income Taxes
We account for income taxes pursuant to the asset and liability method which requires the recognition of deferred income tax assets and liabilities related to the expected future tax consequences arising from temporary differences between the carrying values and tax bases of assets and liabilities based on enacted statutory tax rates applicable to the periods in which the temporary differences are expected to reverse. Any effects of changes in income tax rates or laws are included in Income tax expense in the period of enactment. A valuation allowance is recognized if we determine it is more likely than not that all or a portion of a deferred tax asset will not be recognized. In making such determination, the Company considers all available evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent and expected future results of operations.
Recently Issued Accounting Pronouncements
Recently Adopted Accounting Pronouncements     
We adopted the Accounting Standards Update ("ASU") summarized below in fiscal 2021.
ASUDescriptionDate
Adopted
Simplifying the Accounting for Income Taxes

(ASU 2019-12)
This standard simplifies various aspects related to accounting for income taxes by removing certain exceptions to the general principles in ASC 740, “Income Taxes” (“ASC 740”), and clarifying certain aspects of the current guidance to promote consistency among reporting entities.

The adoption of this standard did not have a material impact to the Company's consolidated financial statements.
December 31, 2020
Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own
Equity (Subtopic 815-40)—Accounting For Convertible Instruments and Contracts in an Entity's Own Equity.

(ASU 2020-06)
This ASU amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity and improves and amends the related earnings per share guidance for both Subtopics.

The Company elected to early adopt this standard, beginning December 31, 2020.

The guidance of this ASU is applicable to the convertible notes issued in March 2021. As a result, the convertible notes are accounted for as a single liability measured at amortized cost. The if-converted earnings per share ("EPS") method is used, with the effect of potential share settlement included in diluted EPS. Refer to Note 8, Debt, and Note 15, Earnings Per Share, for additional information.
December 31, 2020
Recently Issued Accounting Pronouncements
v3.22.0.1
REVENUE (Tables)
 12 Months Ended
Dec. 29, 2021
Revenue from Contract with Customer [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
Revenue recognized during fiscal 2021, fiscal 2020 and fiscal 2019 disaggregated by type is as follows:
202120202019
Shack sales$714,989 $506,339 $574,625 
Licensing revenue:
Sales-based royalties24,150 15,773 19,318 
Initial territory and opening fees754 755 576 
Total revenue$739,893 $522,867 $594,519 
Contract with Customer, Asset and Liability
Opening and closing balances of contract liabilities and receivables from contracts with customers is as follows:
December 29
2021		December 30
2020
Shack sales receivables$6,939 $5,373 
Licensing receivables, net of allowance for doubtful accounts4,005 2,647 
Gift card liability3,297 2,637 
Deferred revenue, current763 608 
Deferred revenue, long-term12,669 12,151 
Revenue recognized during fiscal 2021 and fiscal 2020 that was included in their respective liability balances at the beginning of the period is as follows:
20212020
Gift card liability$456 $537 
Deferred revenue716 723 
v3.22.0.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 29, 2021
Fair Value Disclosures [Abstract]  
Schedule of Cash and Cash Equivalents
Assets measured at fair value on a recurring basis as of December 29, 2021 and December 30, 2020 were as follows:
Fair Value Measurements
December 29
2021		December 30
2020
Level 1Level 1
Equity securities:
Mutual funds$80,000 $36,887 
Total Marketable securities$80,000 $36,887 
Schedule of Gain (Loss) on Investments
A summary of other income from equity securities recognized during fiscal 2021, fiscal 2020 and fiscal 2019 is as follows:
202120202019
Equity securities:
Dividend income$301 $359 $1,244 
Realized gain (loss) on sale of investments(5)79 22 
Unrealized gain (loss) on equity securities(277)(59)194 
Total$19 $379 $1,460 
v3.22.0.1
ACCOUNTS RECEIVABLE (Tables)
 12 Months Ended
Dec. 29, 2021
Receivables [Abstract]  
Schedule of Accounts Receivable
The components of Accounts receivable, net as of December 29, 2021 and December 30, 2020 are as follows:
December 29
2021		December 30
2020
Licensing receivables$4,005 $2,675 
Credit card receivables4,091 2,989 
Delivery receivables2,553 2,229 
Other receivables3,008 1,599 
Allowance for doubtful accounts— (28)
Accounts receivable, net$13,657 $9,464 
v3.22.0.1
PROPERTY AND EQUIPMENT (Tables)
 12 Months Ended
Dec. 29, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment Property and equipment, net as of December 29, 2021 and December 30, 2020 are as follows:
December 29
2021		December 30
2020
Leasehold improvements$413,893 $342,724 
Equipment68,682 60,064 
Furniture and fixtures23,735 20,178 
Computer equipment and software44,821 30,477 
Financing equipment lease right-of-use assets13,741 9,622 
Construction in progress47,282 39,632 
Property and equipment, gross612,154 502,697 
Less: accumulated depreciation(222,768)(166,156)
Property and equipment, net$389,386 $336,541 
v3.22.0.1
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables)
 12 Months Ended
Dec. 29, 2021
Supplemental Balance Sheet Disclosures [Abstract]  
Components of Other Current Liabilities
The components of Other current liabilities as of December 29, 2021 and December 30, 2020 are as follows:
December 29
2021		December 30
2020
Sales tax payable$4,575 $4,285 
Gift card liability3,297 2,637 
Current portion of financing equipment lease liabilities2,711 1,998 
Other3,918 5,280 
Other current liabilities$14,501 $14,200 
The components of Other long-term liabilities as of December 29, 2021 and December 30, 2020 are as follows:
December 29
2021		December 30
2020
Deferred licensing revenue$12,669 $12,151 
Long-term portion of financing equipment lease liabilities4,303 3,586 
Other(1)
5,801 8,723 
Other long-term liabilities$22,773 $24,460 
v3.22.0.1
LEASES (Tables)
 12 Months Ended
Dec. 29, 2021
Leases [Abstract]  
Lease Cost
A summary of operating and finance lease right-of-use assets and liabilities as of December 29, 2021 and December 30, 2020 is as follows:
ClassificationDecember 29
2021		December 30
2020
Operating leasesOperating lease assets$347,277 $306,317 
Finance leasesProperty and equipment, net6,810 5,409 
Total right-of-use assets$354,087 $311,726 
Operating leases:
Operating lease liabilities, current$35,519 $35,657 
Long-term operating lease liabilities400,113 343,736 
Finance leases:
Other current liabilities2,711 1,998 
Other long-term liabilities4,303 3,586 
Total lease liabilities$442,646 $384,977 
The components of lease expense for fiscal 2021 and fiscal 2020 are as follows:
ClassificationDecember 29
2021		December 30
2020
Operating lease cost
Occupancy and related expenses
Pre-opening costs
General and administrative expenses
$50,888 $44,910 
Finance lease cost:
Amortization of right-of-use assetsDepreciation and amortization expense2,719 2,257 
Interest on lease liabilitiesInterest expense207 213 
Variable lease costOccupancy and related expenses
Other operating expenses
Pre-opening costs
General and administrative expenses		13,019 13,766 
Short-term lease costOccupancy and related expenses290 494 
Total lease cost$67,123 $61,640 
A summary of lease terms and discount rates for operating and finance leases as of December 29, 2021 and December 30, 2020 is as follows:
December 29
2021		December 30
2020
Weighted average remaining lease term (years):
Operating leases9.59.7
Finance leases5.45.2
Weighted average discount rate:
Operating leases3.9 %4.2 %
Finance leases3.1 %3.6 %
Supplemental cash flow information related to leases as of December 29, 2021 and December 30, 2020 is as follows:
December 29
2021		December 30
2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$49,079 $42,144 
Operating cash flows from finance leases207 213 
Financing cash flows from finance leases2,694 2,206 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases66,959 59,969 
Finance leases4,119 2,298 
Operating Lease, Liability, Maturity
As of December 29, 2021, future minimum lease payments for operating and finance leases consisted of the following:
Operating LeasesFinance Leases
2022(1)
$50,444 $2,886 
202362,729 1,996 
202462,700 1,234 
202561,795 674 
202658,011 409 
Thereafter249,730 244 
Total minimum payments545,409 7,443 
Less: imputed interest117,380 428 
Total lease liabilities$428,029 $7,015 
Finance Lease, Liability, Maturity
As of December 29, 2021, future minimum lease payments for operating and finance leases consisted of the following:
Operating LeasesFinance Leases
2022(1)
$50,444 $2,886 
202362,729 1,996 
202462,700 1,234 
202561,795 674 
202658,011 409 
Thereafter249,730 244 
Total minimum payments545,409 7,443 
Less: imputed interest117,380 428 
Total lease liabilities$428,029 $7,015 
v3.22.0.1
STOCKHOLDER'S EQUITY (Tables)
 12 Months Ended
Dec. 29, 2021
Equity [Abstract]  
Redemption of LLC Interests
The following table summarizes redemptions of LLC Interests activity during fiscal 2021, fiscal 2020 and fiscal 2019:
202120202019
Redemption and acquisition of LLC Interests
Number of LLC Interests redeemed by non-controlling interest holders29,601 194,009 1,721,887 
Number of LLC Interests acquired in connection with the Gramercy Tavern Corp. Merger— — 2,690,263 
Number of LLC Interests received by Shake Shack Inc.29,601 194,009 4,412,150 
Issuance of Class A common stock
Shares of Class A common stock issued in connection with redemptions of LLC Interests29,601 194,009 1,721,887 
Shares of Class A common stock issued in connection with the Gramercy Tavern Corp. Merger— — 2,690,263 
Cancellation of Class B common stock
Shares of Class B common stock surrendered and cancelled29,601 194,009 1,721,887 
Shares of Class B common stock surrendered and cancelled in connection with the Gramercy Tavern Merger— — 2,690,263 
v3.22.0.1
NON-CONTROLLING INTERESTS (Tables)
 12 Months Ended
Dec. 29, 2021
Noncontrolling Interest [Abstract]  
Schedule of Ownership Interest in SSE Holdings
The following table summarizes the ownership interest in SSE Holdings as of December 29, 2021 and December 30, 2020:
20212020
LLC InterestsOwnership %LLC InterestsOwnership %
Number of LLC Interests held by Shake Shack Inc.39,142,397 93.1 %38,717,790 92.9 %
Number of LLC Interests held by non-controlling interest holders2,921,587 6.9 %2,951,188 7.1 %
Total LLC Interests outstanding42,063,984 100.0 %41,668,978 100.0 %
Schedule of Non-Controlling Interest
The following table summarizes the effects of changes in ownership in SSE Holdings on our equity during fiscal 2021, fiscal 2020 and fiscal 2019.
202120202019
Net income (loss) attributable to Shake Shack Inc.$(8,655)$(42,158)$19,827 
Other comprehensive income (loss):
Unrealized gain (loss) on foreign currency translation adjustment(2)1 2 
Transfers (to) from non-controlling interests:
Increase in additional paid-in capital as a result of the redemption of LLC Interests33 1,723 11,934 
Increase in additional paid-in-capital as a result of the GTC Merger— — 19,218 
Increase in additional paid-in capital as a result of activity under the stock compensation plan and the related income tax effect1,829 5,909 4,517 
Increase in additional paid-in-capital as a result of the issuance of Class A common stock sold in equity offerings— 135,718 — 
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.$(6,795)$101,193 $55,498 
v3.22.0.1
EQUITY-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 29, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of Equity-Based Compensation Expense Recognized
A summary of equity-based compensation expense recognized during fiscal 2021, fiscal 2020 and fiscal 2019 is as follows:
202120202019
Stock options$3 $322 $2,626 
Performance stock units3,471 1,309 3,035 
Restricted stock units5,229 3,929 1,844 
Equity-based compensation expense$8,703 $5,560 $7,505 
Total income tax benefit recognized related to equity-based compensation$223 $204 $188 
Equity-based compensation expense is recorded in General and administrative expenses and Labor and related expenses on the Consolidated Statements of Income (Loss) during fiscal 2021, fiscal 2020 and fiscal 2019 as follows:
202120202019
General and administrative expenses$7,907 $5,039 $7,189 
Labor and related expenses796 521 316 
Equity-based compensation expense$8,703 $5,560 $7,505 
Schedule of Fair Value of Stock Options
The fair value of stock option awards was determined on the grant date using the Black-Scholes valuation model based on the following weighted average assumptions:
202120202019
Expected term (years)(1)
7.57.57.5
Expected volatility(2)
45.4 %42.3 %42.2 %
Risk-free interest rate(3)
1.4 %0.7 %2.4 %
Dividend yield(4)
— %— %— %
(1)Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.
(2)Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.
(3)The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.
(4)We have assumed a dividend yield of zero as we have no plans to declare dividends in the foreseeable future.
Schedule of Stock Options, Activity
A summary of stock option activity for fiscal year 2021 is as follows:
Stock
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic ValueWeighted Average Remaining Contractual Life (Years)
Outstanding as of December 30, 2020489,024 $21.83 
Granted1,698 119.39 
Exercised(323,512)21.19 
Forfeited(12,979)51.15 
Outstanding as of December 29, 2021154,231 $21.77 $7,456 3.2
Options vested and exercisable as of December 29, 2021154,231 $21.77 $7,456 3.2
Options expected to vest as of December 29, 2021— $— $— —
Schedule of Information About Stock Options
The following table summarizes information about stock options outstanding and exercisable as December 29, 2021:
Options OutstandingOptions Exercisable
Number Outstanding at December 29, 2021Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise PriceNumber Exercisable at December 29, 2021Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise Price
Exercise Price
$21.00 145,712 3.1$21.00 145,712 3.1$21.00 
$34.62 7,411 4.4$34.62 7,411 4.4$34.62 
$36.41 1,108 4.9$36.41 1,108 4.9$36.41 
Schedule of Stock Options Outstanding and Exercisable, Option Plans
A summary of performance stock unit activity for fiscal year 2021, is as follows:
Performance
Stock
Units
Weighted
Average
Grant Date Fair Value
Outstanding as of December 30, 2020137,221 $55.67 
Granted165,263 98.87 
Performance achievement(1)
(74,137)57.20 
Vested(29,892)55.24 
Forfeited(12,296)103.83 
Outstanding as of December 29, 2021186,159 $90.31 
(1)Represents the incremental awards earned and/or awards forfeited based on the achievement of performance conditions
Summary of Restricted Stock Unit Activity
A summary of restricted stock unit activity for fiscal year 2021 is as follows:
Restricted
Stock
Units
Weighted
Average
Grant Date Fair Value
Outstanding as of December 30, 2020258,493 $54.33 
Granted127,013 117.39 
Vested(75,312)55.23 
Forfeited(78,765)66.87 
Outstanding as of December 29, 2021231,429 $84.37 
v3.22.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 29, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The components of Income (loss) before income taxes are follows:
202120202019
Domestic$(38,833)$(59,873)$11,797 
Foreign21,498 14,396 15,717 
Income (loss) before income taxes$(17,335)$(45,477)$27,514 
Schedule of Components of Income Tax Expense
The components of Income tax expense (benefit) are as follows:
202120202019
Current income taxes:
Federal$— $— $2,984 
State and local275 190 4,283 
Foreign2,880 1,223 2,183 
Total current income taxes3,155 1,413 9,450 
Deferred income taxes:
Federal(9,798)(12,638)(5,643)
State and local(581)11,282 (421)
Total deferred income taxes(10,379)(1,356)(6,064)
Income tax expense (benefit)$(7,224)$57 $3,386 
Reconciliation of Income Tax Expense, US Income Tax Rate
Reconciliations of Income tax expense (benefit) computed at the U.S. federal statutory income tax rate to the recognized Income tax expense (benefit) and the U.S. statutory income tax rate to our effective tax rates are as follows:
202120202019
Expected U.S. federal income taxes at statutory rate$(3,641)21.0 %$(9,550)21.0 %$5,778 21.0 %
State and local income taxes, net of federal benefit862 (5.0)%5,776 (12.7)%3,924 14.2 %
Foreign withholding taxes2,880 (16.6)%1,223 (2.7)%2,183 7.9 %
Tax credits(3,655)21.1 %(1,533)3.4 %(3,007)(10.9)%
Non-controlling interest1,327 (7.7)%537 (1.2)%(1,405)(5.1)%
Remeasurement of deferred tax assets in connection with other tax rate changes1,034 (6.0)%5,433 (11.9)%208 0.8 %
Change in valuation allowance(6,059)35.0 %(2,264)5.0 %(4,669)(17.0)%
Other28 (0.2)%435 (1.0)%374 1.4 %
Income tax expense (benefit)$(7,224)41.7 %$57 (0.1)%$3,386 12.3 %
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities are as follows:
December 29
2021		December 30
2020
Deferred tax assets:
Investment in partnership$116,639 $139,379 
Tax Receivable Agreement63,983 63,853 
Operating lease liability3,873 3,470 
Financing lease liability63 51 
Deferred revenue150 141 
Equity-based compensation263 331 
Net operating loss carryforwards108,207 75,522 
Tax credits13,297 9,610 
Other assets569 457 
Total gross deferred tax assets307,044 292,814 
Valuation allowance(5,173)(2,656)
Total deferred tax assets, net of valuation allowance301,871 290,158 
Deferred tax liabilities:
Property and equipment(21)(300)
Operating lease right-of-use asset (3,121)(2,802)
Financing lease right-of-use asset (61)(49)
Total gross deferred tax liabilities(3,203)(3,151)
Net deferred tax assets$298,668 $287,007 
v3.22.0.1
EARNINGS PER SHARE (Tables)
 12 Months Ended
Dec. 29, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings (loss) per share of Class A common stock (in thousands, except per share amounts) for fiscal 2021, fiscal 2020 and fiscal 2019.
202120202019
Numerator:
Net income (loss) attributable to Shake Shack Inc.—basic$(8,655)$(42,158)$19,827 
Net income (loss) attributable to Shake Shack Inc.—diluted$(8,655)$(42,158)$19,827 
Denominator:
Weighted average shares of Class A common stock outstanding—basic39,085 37,129 31,381 
Effect of dilutive securities:
Stock options— — 743 
Performance stock units— — 70 
Restricted stock units— — 57 
Weighted average shares of Class A common stock outstanding—diluted39,085 37,129 32,251 
Earnings (loss) per share of Class A common stock—basic$(0.22)$(1.14)$0.63 
Earnings (loss) per share of Class A common stock—diluted$(0.22)$(1.14)$0.61 
Schedule of Antidilutive Securities
The following table presents potentially dilutive securities, as of the end of the period, excluded from the computations of diluted earnings (loss) per share of Class A common stock for fiscal 2021, fiscal 2020 and fiscal 2019.
202120202019
Stock options154,231 (1)489,024 (1)946 (2)
Performance stock units186,159 (1)137,221 (1)51,197 (3)
Restricted stock units231,429 (1)258,493 (1)— 
Shares of Class B common stock2,921,587 (1)2,951,188 (1)3,145,197 (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)Weighted average number of securities excluded from the computation of diluted earnings per share of Class A common stock because the exercise price of the stock options exceeded the average market price of our Class A common stock during the period ("out-of-the-money").
(3)Weighted average number of securities excluded from the computation of diluted earnings per share of Class A common stock because the performance conditions associated with these awards were not met for a portion of the fiscal year.
v3.22.0.1
RELATED PARTY TRANSACTIONS (Tables)
 12 Months Ended
Dec. 29, 2021
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
Classification202120202019
Amounts received from HYCLicensing revenue$320 $67 $571 
ClassificationDecember 29
2021		December 30
2020
Amounts due from HYCAccounts receivable, net$90 $8 
Classification202120202019
Amounts paid to MSP ConservancyOccupancy and related expenses$863 $846 $964 
Classification202120202019
Amounts paid to Olo, Inc.Other operating expenses$406 $242 $170 
ClassificationDecember 29
2021		December 30
2020
Amounts due to Olo, Inc.Accounts payable$33 $— 
Classification202120202019
Amounts paid to Block, Inc.Other operating expenses$2,844 $1,697 $1,692 
ClassificationDecember 29
2021		December 30
2020
Amounts due to Block, Inc.Accounts payable$52 $— 
USHG Acquisition Corp.
Our Chief Executive Officer has been appointed to the board of directors of USHG Acquisition Corp. in which the Chairman of our Board of Directors serves as the chairman of the board of directors of USHG Acquisition Corp. USHG Acquisition Corp. is a newly organized blank check company incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. No amounts were due to or due from USHG Acquisition Corp as of both December 29, 2021 and December 30, 2020. No amounts were paid to USHG Acquisition Corp during fiscal 2021, fiscal 2020 and fiscal 2019.
Classification202120202019
Amounts paid to members (inclusive of interest)Other current liabilities$— $6,643 $707 
ClassificationDecember 29
2021		December 30
2020
Amounts due under the Tax Receivable AgreementOther current liabilities
Liabilities under Tax Receivable Agreement, net of current portion		$234,045 $232,954 
Classification202120202019
Amounts paid to non-controlling interest holdersNon-controlling interests$968 $478 $1,708 
v3.22.0.1
GEOGRAPHIC INFORMATION (Tables)
 12 Months Ended
Dec. 29, 2021
Segment Reporting [Abstract]  
Revenue from Customers by Geographic Areas
Revenue by geographic area for fiscal 2021, fiscal 2020 and fiscal 2019 is as follows:
202120202019
United States$718,128 $508,292 $578,702 
Other countries21,765 14,575 15,817 
Total revenue$739,893 $522,867 $594,519 
v3.22.0.1
NATURE OF OPERATIONS - Organization and Nature of Operations - Franchiser (Details)
Dec. 29, 2021
Restaurant
Franchisor Disclosure [Line Items]  
Number of Restaurants 369
Company-operated | United States  
Franchisor Disclosure [Line Items]  
Number of Restaurants 218
Licensed | United States  
Franchisor Disclosure [Line Items]  
Number of Restaurants 25
Licensed | Other countries  
Franchisor Disclosure [Line Items]  
Number of Restaurants 126
v3.22.0.1
NATURE OF OPERATIONS - Organizational Transactions (Details)
Feb. 04, 2015
Class A Common Stock  
Class of Stock [Line Items]  
Ratio of common stock to limited liability company interest 1
v3.22.0.1
NATURE OF OPERATIONS - Secondary Offering (Details) - shares
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Class of Stock [Line Items]      
Units acquired during the period (in shares)   194,009  
Class A Common Stock | Common stock      
Class of Stock [Line Items]      
Redemptions (in shares) 29,601 194,009 1,721,887
Class B Common Stock | Common stock      
Class of Stock [Line Items]      
Effect of redemption (in shares) 29,601 194,009 1,721,887
Limited Liability Company      
Class of Stock [Line Items]      
Number of units redeemed (in shares) 29,601 194,009 4,412,150
Units acquired during the period (in shares) 424,607    
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of Presentation (Details) - USD ($)
$ in Thousands
Dec. 29, 2021
Dec. 30, 2020
Variable Interest Entity, Primary Beneficiary    
Variable Interest Entity [Line Items]    
Net assets of SSE Holdings $ 376,857 $ 383,669
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details)
 12 Months Ended
Dec. 29, 2021
reportable_segment
operating_segment
Accounting Policies [Abstract]  
Number of operating segments | operating_segment 1
Number of reportable segments | reportable_segment 1
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - USD ($)
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Property, Plant and Equipment [Line Items]      
Impairment charges $ 0 $ 7,644,000 $ 0
Equipment | Minimum      
Property, Plant and Equipment [Line Items]      
Useful life of property and equipment 5 years    
Equipment | Maximum      
Property, Plant and Equipment [Line Items]      
Useful life of property and equipment 7 years    
Furniture and Fixtures | Minimum      
Property, Plant and Equipment [Line Items]      
Useful life of property and equipment 5 years    
Furniture and Fixtures | Maximum      
Property, Plant and Equipment [Line Items]      
Useful life of property and equipment 7 years    
Computer Equipment and Software | Minimum      
Property, Plant and Equipment [Line Items]      
Useful life of property and equipment 2 years    
Computer Equipment and Software | Maximum      
Property, Plant and Equipment [Line Items]      
Useful life of property and equipment 5 years    
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Assets (Details) - USD ($)
$ in Thousands
Dec. 29, 2021
Dec. 30, 2020
Accounting Policies [Abstract]    
Capitalized implementation costs $ 6,431 $ 6,497
Indefinite-lived intangible assets $ 1,461 $ 1,437
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Details)
 12 Months Ended
Dec. 29, 2021
renewal_option
Operating Leased Assets [Line Items]  
Number of renewal options 2
Period of renewal term 5 years
Minimum  
Operating Leased Assets [Line Items]  
Terms of lease contract 10 years
Maximum  
Operating Leased Assets [Line Items]  
Terms of lease contract 15 years
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Accounting Policies [Abstract]      
Advertising and promotions $ 5,677 $ 1,449 $ 857
v3.22.0.1
REVENUE Narrative (Details)
$ in Thousands
Dec. 29, 2021
USD ($)
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 17,633
v3.22.0.1
REVENUE Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Disaggregation of Revenue [Line Items]      
TOTAL REVENUE $ 739,893 $ 522,867 $ 594,519
Shack sales      
Disaggregation of Revenue [Line Items]      
TOTAL REVENUE 714,989 506,339 574,625
Sales-based royalties      
Disaggregation of Revenue [Line Items]      
TOTAL REVENUE 24,150 15,773 19,318
Initial territory and opening fees      
Disaggregation of Revenue [Line Items]      
TOTAL REVENUE $ 754 $ 755 $ 576
v3.22.0.1
REVENUE Contract Balances (Details) - USD ($)
$ in Thousands
Dec. 29, 2021
Dec. 30, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Gift card liability $ 3,297 $ 2,637
Deferred revenue, current 763 608
Deferred revenue, long-term $ 12,669 12,151
Maximum    
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 20 years  
Minimum    
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 5 years  
Shack sales    
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Contract with customer, asset, net $ 6,939 5,373
Licensing receivables, net of allowance for doubtful accounts    
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Contract with customer, asset, net $ 4,005 $ 2,647
v3.22.0.1
REVENUE Liability (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Revenue from Contract with Customer [Abstract]    
Gift card liability $ 456 $ 537
Deferred revenue $ 716 $ 723
v3.22.0.1
FAIR VALUE MEASUREMENTS - Assets Measured On a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 29, 2021
Dec. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities $ 80,000 $ 36,887
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 80,000 36,887
Level 1 | Mutual Fund    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities $ 80,000 $ 36,887
v3.22.0.1
FAIR VALUE MEASUREMENTS - Other Income From Available For Sale Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Available-for-sale securities      
Realized gain (loss) on sale of investments $ (5) $ 79 $ 22
Unrealized gain (loss) on equity securities (277) (59) 194
Total 19 379 1,460
Available-for-sale Securities      
Available-for-sale securities      
Dividend income $ 301 $ 359 $ 1,244
v3.22.0.1
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Impairment charges $ 0 $ 7,644,000 $ 0
Property, Plant and Equipment      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Impairment charges 1,893,000    
Operating Lease, Right-of-Use Assets      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Impairment charges 5,698,000    
Finance Lease, Right-of-Use Assets      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Impairment charges $ 53,000    
v3.22.0.1
ACCOUNTS RECEIVABLE - Schedule of Accounts Receivable (Details) - USD ($)
$ in Thousands
Dec. 29, 2021
Dec. 30, 2020
Receivables [Abstract]    
Licensing receivables $ 4,005 $ 2,675
Credit card receivables 4,091 2,989
Delivery receivables 2,553 2,229
Other receivables 3,008 1,599
Allowance for doubtful accounts 0 (28)
Accounts receivable, net $ 13,657 $ 9,464
v3.22.0.1
PROPERTY AND EQUIPMENT (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 612,154 $ 502,697
Less: accumulated depreciation (222,768) (166,156)
Property and equipment, net 389,386 336,541
Depreciation 58,961  
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 413,893 342,724
Equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 68,682 60,064
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 23,735 20,178
Computer equipment and software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 44,821 30,477
Financing equipment lease right-of-use assets    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 13,741 9,622
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 47,282 $ 39,632
v3.22.0.1
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($)
$ in Thousands
Dec. 29, 2021
Dec. 30, 2020
Supplemental Balance Sheet Disclosures [Abstract]    
Sales tax payable $ 4,575 $ 4,285
Current portion of liabilities under tax receivable agreement 0  
Gift card liability $ 3,297 $ 2,637
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Current portion of financing equipment lease liabilities $ 2,711 $ 1,998
Other 3,918 5,280
Other current liabilities 14,501 14,200
Deferred licensing revenue $ 12,669 $ 12,151
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other long-term liabilities Other long-term liabilities
Long-term portion of financing equipment lease liabilities $ 4,303 $ 3,586
Other(1) 5,801 8,723
Other long-term liabilities 22,773 24,460
Deferred lease incentive liabilities 3,334 3,182
Deferred social security taxes $ 2,182 $ 5,214
v3.22.0.1
DEBT - Revolving Credit Facility (Details) - USD ($)
 1 Months Ended 12 Months Ended
May 31, 2020
Mar. 31, 2020
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Debt Instrument [Line Items]          
Proceeds from Revolving Credit Facility     $ 0 $ 50,000,000 $ 0
Line of Credit Facility, Fair Value of Amount Outstanding     0    
Payments of Financing Costs     169,000 64,000 286,000
Interest costs incurred     479,000 $ 531,000 $ 49,000
Revolving Credit Facility          
Debt Instrument [Line Items]          
Payments of Financing Costs     82,000    
Line of credit | First Amendment to the Credit Agreement          
Debt Instrument [Line Items]          
Debt instrument, minimum required liquidity $ 25,000,000        
Line of credit | First Amendment to the Credit Agreement | Minimum | London Interbank Offered Rate (LIBOR)          
Debt Instrument [Line Items]          
Basis spread on variable rate 1.00%        
Line of credit | First Amendment to the Credit Agreement | Minimum | Prime rate          
Debt Instrument [Line Items]          
Basis spread on variable rate 0.00%        
Line of credit | First Amendment to the Credit Agreement | Maximum | London Interbank Offered Rate (LIBOR)          
Debt Instrument [Line Items]          
Basis spread on variable rate 2.50%        
Line of credit | First Amendment to the Credit Agreement | Maximum | Prime rate          
Debt Instrument [Line Items]          
Basis spread on variable rate 1.50%        
Notes payable          
Debt Instrument [Line Items]          
Proceeds from Revolving Credit Facility   $ 50,000,000      
Revolving Credit Facility | Revolving Credit Facility          
Debt Instrument [Line Items]          
Maximum borrowing capacity     50,000,000    
Incremental borrowing capacity     100,000,000    
Letter of credit | Line of credit | Revolving Credit Facility          
Debt Instrument [Line Items]          
Maximum borrowing capacity     $ 15,000,000    
v3.22.0.1
DEBT - Convertible Notes (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Debt Instrument [Line Items]        
Issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs     $ 144,997  
Amortization of debt issuance costs   $ 867 $ 0 $ 0
Fair value of convertible notes   206,018    
0% Convertible Senior Notes        
Debt Instrument [Line Items]        
Issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs $ 225,000      
0% Convertible Senior Notes | Over-Allotment Option        
Debt Instrument [Line Items]        
Issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs $ 25,000      
0% Convertible Senior Notes | Private Placement        
Debt Instrument [Line Items]        
Issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs   250,000    
Stock Issued During Period, Value, Net Of Debt Issuance Costs   243,542    
Payments of Debt Issuance Costs   6,458    
Amortization of debt issuance costs   867    
Payment of Financing and Stock Issuance Costs   $ 231    
Conversion rate   5,867.9000    
Conversion of stock, price per share   $ 170,420    
Class A common stock, $0.001 par value—200,000,000 shares authorized; 39,142,397 and 38,717,790 shares issued and outstanding as of December 29, 2021 and December 30, 2020, respectively.        
Debt Instrument [Line Items]        
Common stock par value (in dollars per share)   $ 0.001 $ 0.001  
v3.22.0.1
LEASES - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
USD ($)
option
Lessee, Lease, Description [Line Items]  
Number of renewal options | option 2
Period of renewal term 5 years
Operating lease for non-cancellable leases | $ $ 77,955
Minimum  
Lessee, Lease, Description [Line Items]  
Terms of lease contract 10 years
Maximum  
Lessee, Lease, Description [Line Items]  
Terms of lease contract 15 years
v3.22.0.1
LEASES - Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Total right-of-use assets    
Finance lease right-of-use asset $ 6,810 $ 5,409
Operating lease assets 347,277 306,317
Total right-of-use assets 354,087 311,726
Total lease liabilities    
Other current liabilities, finance leases 2,711 1,998
Other long-term liabilities, finance leases 4,303 3,586
Operating lease liabilities, current 35,519 35,657
Long-term operating lease liabilities 400,113 343,736
Total lease liabilities 442,646 384,977
Total lease cost    
Amortization of right-of-use assets 2,719 2,257
Interest on lease liabilities 207 213
Operating lease cost 50,888 44,910
Short-term lease cost 290 494
Variable lease cost 13,019 13,766
Total lease cost $ 67,123 $ 61,640
Weighted average remaining lease term (years):    
Finance leases 5 years 4 months 24 days 5 years 2 months 12 days
Operating leases 9 years 6 months 9 years 8 months 12 days
Weighted average discount rate:    
Finance leases 3.10% 3.60%
Operating leases 3.90% 4.20%
Operating cash flows from finance leases $ 207 $ 213
Operating cash flows from operating leases 49,079 42,144
Financing cash flows from finance leases 2,694 2,206
Right-of-use assets obtained in exchange for lease obligations: Finance leases 4,119 2,298
Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 66,959 $ 59,969
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Operating lease assets Operating lease assets
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property and equipment, net of accumulated depreciation of $222,768 and $166,156, respectively Property and equipment, net of accumulated depreciation of $222,768 and $166,156, respectively
v3.22.0.1
LEASES - Future Minimum Lease Payments (Details)
$ in Thousands
Dec. 29, 2021
USD ($)
Finance Leases  
2020 $ 2,886
2021 1,996
2022 1,234
2023 674
2024 409
Thereafter 244
Total minimum payments 7,443
Less: imputed interest 428
Total lease liabilities 7,015
Operating Leases  
2020 50,444
2021 62,729
2022 62,700
2023 61,795
2024 58,011
Thereafter 249,730
Total minimum payments 545,409
Less: imputed interest 117,380
Total lease liabilities $ 428,029
v3.22.0.1
EMPLOYEE BENEFIT PLANS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Defined Benefit Plan Disclosure [Line Items]      
Employer contributions $ 1,337 $ 895 $ 772
Defined Contribution Plan, Initial Contribution      
Defined Benefit Plan Disclosure [Line Items]      
Employer matching contribution percentage 50.00%    
Employer matching contribution as a percent of employees' gross pay 3.00%    
Defined Contribution Plan, Additional Contribution      
Defined Benefit Plan Disclosure [Line Items]      
Employer matching contribution as a percent of employees' gross pay 3.00%    
Defined Contribution Plan, Additional Contribution | Maximum      
Defined Benefit Plan Disclosure [Line Items]      
Employer matching contribution as a percent of employees' gross pay 5.00%    
v3.22.0.1
STOCKHOLDER'S EQUITY - Redemption of LLC Interests (Details) - shares
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Limited Liability Company      
Class of Stock [Line Items]      
Number of units redeemed (in shares) 29,601 194,009 4,412,150
Common Stock | Class A Common Stock      
Class of Stock [Line Items]      
Redemptions (in shares) 29,601 194,009 1,721,887
Common Stock | Class B Common Stock      
Class of Stock [Line Items]      
Effect of redemption (in shares) 29,601 194,009 1,721,887
Gramercy Tavern | Limited Liability Company      
Class of Stock [Line Items]      
Number of units redeemed (in shares)   0 2,690,263
Gramercy Tavern | Common Stock | Class A Common Stock      
Class of Stock [Line Items]      
Redemptions (in shares) 0 0 2,690,263
Gramercy Tavern | Common Stock | Class B Common Stock      
Class of Stock [Line Items]      
Effect of redemption (in shares) 0 0 2,690,263
Redemptions by NCI Holders | Limited Liability Company      
Class of Stock [Line Items]      
Number of units redeemed (in shares) 29,601 194,009 1,721,887
v3.22.0.1
STOCKHOLDER'S EQUITY (Details) - USD ($)
 1 Months Ended 12 Months Ended
Apr. 21, 2020
Aug. 31, 2019
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Class of Stock [Line Items]          
LLC interests acquired (in shares)       194,009  
Effect of GTC Merger (in shares)   2,690,263      
Share-based Payment Arrangement, Option          
Class of Stock [Line Items]          
LLC interests acquired (in shares)     395,006 456,942 484,319
Class A Common Stock | ATM Program          
Class of Stock [Line Items]          
Sale of stock, maximum offering price $ 75,000        
Sale of stock, number of shares issued in transaction (in shares) 233,467        
Proceeds from sale of stock $ 9,794        
Class A Common Stock | Over-Allotment Option          
Class of Stock [Line Items]          
Sale of stock, number of shares issued in transaction (in shares) 3,416,070        
Proceeds from sale of stock $ 135,857        
v3.22.0.1
NON-CONTROLLING INTERESTS - Narrative (Details)
 1 Months Ended 12 Months Ended
Feb. 04, 2015
Aug. 31, 2019
shares
Dec. 29, 2021
shares
Dec. 30, 2020
shares
Dec. 25, 2019
shares
Noncontrolling Interest [Line Items]          
Weighted average ownership percentage     7.00% 7.70%  
Effect of GTC Merger (in shares)   2,690,263      
Units acquired during the period (in shares)       194,009  
Class A Common Stock          
Noncontrolling Interest [Line Items]          
Ratio of common stock to limited liability company interest 1        
Limited Liability Company          
Noncontrolling Interest [Line Items]          
Number of units redeemed (in shares)     29,601 194,009 4,412,150
Units acquired during the period (in shares)     424,607    
Stock options          
Noncontrolling Interest [Line Items]          
Units acquired during the period (in shares)     395,006 456,942 484,319
v3.22.0.1
NON-CONTROLLING INTERESTS - Ownership Interest in SSE Holdings (Details) - shares
Dec. 29, 2021
Dec. 30, 2020
Noncontrolling Interest [Line Items]    
Number of LLC Interests held by Shake Shack Inc. (in shares) 39,142,397 38,717,790
Number of LLC Interests held by non-controlling interest holders (in shares) 2,921,587 2,951,188
Total LLC Interests outstanding (in shares) 42,063,984 41,668,978
Noncontrolling Interest, Total Ownership Percentage 100.00% 100.00%
Shake Shack Inc.    
Noncontrolling Interest [Line Items]    
Ownership percent of noncontrolling interest 93.10% 92.90%
Non-Controlling Interest Holders    
Noncontrolling Interest [Line Items]    
Noncontrolling owners ownership percentage 6.90% 7.10%
v3.22.0.1
NON-CONTROLLING INTERESTS - Schedule of Non-Controlling Interest (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Noncontrolling Interest [Line Items]      
Net income (loss) attributable to Shake Shack Inc. $ (8,655) $ (42,158) $ 19,827
Other comprehensive income (loss):      
Unrealized holding gains on equity securities (2) 1 2
Net change in foreign currency translation adjustment (2) 1 2
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc. (6,795) 101,193 55,498
AOCI Attributable to Parent      
Other comprehensive income (loss):      
Net change in foreign currency translation adjustment (2) 1 2
Common stock | Class A common stock, $0.001 par value—200,000,000 shares authorized; 39,142,397 and 38,717,790 shares issued and outstanding as of December 29, 2021 and December 30, 2020, respectively.      
Other comprehensive income (loss):      
Transfers (to) from non-controlling interests 0 135,718 0
Stock options | Additional Paid-in Capital      
Other comprehensive income (loss):      
Transfers (to) from non-controlling interests   5,909 4,517
Increase in additional paid-in capital as a result of the redemption of LLC Interests | Additional Paid-in Capital      
Other comprehensive income (loss):      
Transfers (to) from non-controlling interests 33 1,723 11,934
Increase in additional paid-in-capital as a result of the GTC Merger | Additional Paid-in Capital      
Other comprehensive income (loss):      
Transfers (to) from non-controlling interests $ 0 $ 0 $ 19,218
v3.22.0.1
EQUITY-BASED COMPENSATION - Schedule of compensation expense recognized (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense $ 8,703 $ 5,560 $ 7,505
Total income tax benefit recognized related to equity-based compensation 223 204 188
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense 3 322 2,626
Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense 3,471 1,309 3,035
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense 5,229 3,929 1,844
General and administrative expenses      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense 7,907 5,039 7,189
Labor and related expenses      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense $ 796 $ 521 $ 316
v3.22.0.1
EQUITY-BASED COMPENSATION - Stock Options (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Jan. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Capitalized equity-based compensation $ 100 $ 40 $ 195  
2015 Incentive Award Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares available for grant (in shares)       5,865,522
v3.22.0.1
EQUITY-BASED COMPENSATION - Schedule of Fair Value of Stock Options (Details) - 2015 Incentive Award Plan - Stock options
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 7 years 6 months 7 years 6 months 7 years 6 months
Expected volatility 45.40% 42.30% 42.20%
Risk-free interest rate 1.40% 0.70% 2.40%
Dividend yield 0.00% 0.00% 0.00%
v3.22.0.1
EQUITY-BASED COMPENSATION - Schedule of Stock Options (Details) - 2015 Incentive Award Plan - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Stock Options      
Outstanding at beginning of period (in shares) 489,024    
Granted (in shares) 1,698    
Exercised (in shares) (323,512)    
Forfeited (in shares) (12,979)    
Outstanding at end of period (in shares) 154,231 489,024  
Options vested and exercisable at end of period (in shares) 154,231    
Options expected to vest (in shares) 0    
Weighted Average Exercise Price      
Outstanding at beginning of period (in USD per share) $ 21.83    
Granted (in USD per share) 119.39    
Exercised (in USD per share) 21.19    
Forfeited (in USD per share) 51.15    
Outstanding at end of period (in USD per share) 21.77 $ 21.83  
Weighted average options vested and exercisable (in USD per share) 21.77    
Options expected to vest (in USD per share) $ 0    
Aggregate Intrinsic Value      
Outstanding at end of period $ 7,456    
Options exercised during period 7,456    
Options expected to vest as of December 29, 2021 $ 0    
Weighted Average Remaining Contractual Life (Years)      
Outstanding at end of period 3 years 2 months 12 days    
Options exercisable at end of year 3 years 2 months 12 days    
Stock options      
Weighted Average Exercise Price      
Granted (in USD per share) $ 58.92 $ 16.21 $ 26.42
Aggregate Intrinsic Value      
Options exercised during period $ 30,533 $ 25,824 $ 16,905
v3.22.0.1
EQUITY-BASED COMPENSATION - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Net proceeds from stock option exercises $ 6,731,000 $ 8,033,000 $ 9,201,000
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value (60,000) $ (2,674,000) $ (2,950,000)
2015 Incentive Award Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Net proceeds from stock option exercises 6,731,000    
Cash tax benefit realized $ 365,000    
Granted (in USD per share) $ 119.39    
Options exercised during period $ 7,456,000    
2015 Incentive Award Plan | Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in USD per share) $ 58.92 $ 16.21 $ 26.42
Options exercised during period $ 30,533,000 $ 25,824,000 $ 16,905,000
2015 Incentive Award Plan | Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value $ (3,083,000) $ (2,730,000) $ (3,456,000)
Performance shares granted (in shares) 186,159 137,221  
Granted (in USD per share) $ 98.87 $ 57.20 $ 52.47
Shares expected to be recognized $ 12,058,000    
Weighted-average period for recognition compensation expense 2 years 9 months 18 days    
2015 Incentive Award Plan | Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value $ (8,385,000) $ (2,463,000) $ (947,000)
Performance shares granted (in shares) 231,429,000 258,493,000  
Granted (in USD per share) $ 117.39 $ 57.41 $ 52.51
2015 Incentive Award Plan | Restricted Stock Units | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 1 year    
2015 Incentive Award Plan | Restricted Stock Units | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 5 years    
v3.22.0.1
EQUITY-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Details) - 2015 Incentive Award Plan
 12 Months Ended
Dec. 29, 2021
$ / shares
shares
Twenty-One Dollars  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Number Outstanding (in shares) | shares 145,712
Weighted Average Remaining Contractual Life (Years) 3 years 1 month 6 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 21.00
Number Exercisable (in shares) | shares 145,712
Weighted Average Remaining Contractual Life (Years) 3 years 1 month 6 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 21.00
Thirty-Four Point Sixty Two Dollars  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Number Outstanding (in shares) | shares 7,411
Weighted Average Remaining Contractual Life (Years) 4 years 4 months 24 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 34.62
Number Exercisable (in shares) | shares 7,411
Weighted Average Remaining Contractual Life (Years) 4 years 4 months 24 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 34.62
Thirty-Six Point Forty One Dollars  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Number Outstanding (in shares) | shares 1,108
Weighted Average Remaining Contractual Life (Years) 4 years 10 months 24 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 36.41
Number Exercisable (in shares) | shares 1,108
Weighted Average Remaining Contractual Life (Years) 4 years 10 months 24 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 36.41
v3.22.0.1
EQUITY-BASED COMPENSATION - Summary of Performance and Restricted Stock Activity (Details) - 2015 Incentive Award Plan - USD ($)
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Requisite service period 4 years    
Requisite service period, cliff vest option 3 years    
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]      
Outstanding at beginning of period (in shares) 137,221    
Granted (in shares) 165,263    
Performance achievement (in shares) (74,137)    
Vested (in shares) (29,892)    
Forfeited (in shares) (12,296)    
Outstanding at end of period (in shares) 186,159 137,221  
Stock Options      
Outstanding at beginning of period (in USD per share) $ 55.67    
Granted (in USD per share) 98.87 $ 57.20 $ 52.47
Performance achievement (in USD per share) 57.20    
Vested (in USD per share) 55.24    
Forfeited (in USD per share) 103.83    
Outstanding at end of period (in USD per share) $ 90.31 $ 55.67  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value $ 3,083,000 $ 2,730,000 $ 3,456,000
Issuance of common stock in settlement of unit appreciation rights $ 14,984,000    
Weighted average period 2 years 10 months 24 days    
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]      
Outstanding at beginning of period (in shares) 258,493,000    
Granted (in shares) 127,013,000    
Vested (in shares) (75,312,000)    
Forfeited (in shares) (78,765,000)    
Outstanding at end of period (in shares) 231,429,000 258,493,000  
Stock Options      
Outstanding at beginning of period (in USD per share) $ 54.33    
Granted (in USD per share) 117.39 $ 57.41 $ 52.51
Vested (in USD per share) 55.23    
Forfeited (in USD per share) 66.87    
Outstanding at end of period (in USD per share) $ 84.37 $ 54.33  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value $ 8,385,000 $ 2,463,000 $ 947,000
Minimum | Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Range of awards 0.00%    
Performance period 1 year    
Maximum | Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Range of awards 200.00%    
Performance period 3 years    
v3.22.0.1
INCOME TAXES - Schedule of Components of Income before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Income Tax Disclosure [Abstract]      
Domestic $ (38,833) $ (59,873) $ 11,797
Foreign 21,498 14,396 15,717
Income (loss) before income taxes $ (17,335) $ (45,477) $ 27,514
v3.22.0.1
INCOME TAXES - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Income Tax Contingency [Line Items]      
Effective income tax rate (percent) 41.70% (0.10%) 12.30%
Deferred tax assets, carryforwards, federal $ 448,833,000    
Deferred tax assets, carryforwards, state and local 237,691,000    
Net operating loss carryforwards 108,207,000 $ 75,522,000  
Additional deferred tax asset recognized, investment in partnership 9,609,000    
Decrease in valuation allowance 2,517,000    
Uncertain tax positions $ 0 $ 0  
Percentage of tax benefits due to equity owners 85.00%    
Remaining percentage of tax benefits due to equity owners 15.00%    
LLC interests acquired (in shares)   194,009  
Establishment of liabilities under tax receivable agreement $ 1,093,000 $ 4,024,000 $ 32,065,000
Other income recognized related to reduction of tax receivable agreement liability 0 6,643,000 707,000
Establishment of liabilities under tax receivable agreement 234,045,000 232,954,000  
Current portion of liabilities under tax receivable agreement 0    
Deferred Tax Assets, Valuation Allowance 5,173,000 2,656,000  
Members' Equity      
Income Tax Contingency [Line Items]      
Other income recognized related to reduction of tax receivable agreement liability   6,643,000  
Limited Liability Company      
Income Tax Contingency [Line Items]      
Additional deferred tax asset recognized, investment in partnership $ 116,639,000    
LLC interests acquired (in shares) 424,607    
Deferred Tax Assets, Valuation Allowance $ 361,000    
Parent Company      
Income Tax Contingency [Line Items]      
Percentage of tax benefits due to equity owners 85.00%    
Other income recognized related to reduction of tax receivable agreement liability $ 0 6,643,000 707,000
Consolidation, Eliminations | Parent Company      
Income Tax Contingency [Line Items]      
Establishment of liabilities under tax receivable agreement 1,093,000 $ 4,024,000 $ 32,065,000
Domestic Tax Authority      
Income Tax Contingency [Line Items]      
Net operating loss carryforwards 396,966,000    
Tax credit carryforwards 12,689,000    
State and Local Jurisdiction      
Income Tax Contingency [Line Items]      
Net operating loss carryforwards 41,271,000    
Tax credit carryforwards $ 770,000    
v3.22.0.1
INCOME TAXES - Schedule of Components of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Current income taxes:      
Federal $ 0 $ 0 $ 2,984
State and local 275 190 4,283
Foreign 2,880 1,223 2,183
Total current income taxes 3,155 1,413 9,450
Deferred income taxes:      
Federal (9,798) (12,638) (5,643)
State and local (581) 11,282 (421)
Total deferred income taxes (10,379) (1,356) (6,064)
Income tax expense (benefit) $ (7,224) $ 57 $ 3,386
v3.22.0.1
INCOME TAXES - Reconciliation of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Income Tax Disclosure [Abstract]      
Income taxes at U.S. federal statutory rate $ (3,641) $ (9,550) $ 5,778
U.S. federal statutory income tax rate, percentage 21.00% 21.00% 21.00%
State and local income taxes, net of federal benefit $ 862 $ 5,776 $ 3,924
State and local income taxes, net of federal benefit, percentage (5.00%) (12.70%) 14.20%
Foreign withholding taxes $ 2,880 $ 1,223 $ 2,183
Foreign withholding taxes, percentage (16.60%) (2.70%) 7.90%
Tax credits $ (3,655) $ (1,533) $ (3,007)
Tax credits, percentage 21.10% 3.40% (10.90%)
Non-controlling interest $ 1,327 $ 537 $ (1,405)
Non-controlling interest, percentage (7.70%) (1.20%) (5.10%)
Remeasurement of deferred tax assets in connection with other tax rate changes $ 1,034 $ 5,433 $ 208
Remeasurement of deferred tax assets in connection with other tax rate changes, percentage (6.00%) (11.90%) 0.80%
Change in valuation allowance $ (6,059) $ (2,264) $ (4,669)
Change in valuation allowance, percentage 35.00% 5.00% (17.00%)
Other $ 28 $ 435 $ 374
Other, percentage (0.20%) (1.00%) 1.40%
Income tax expense (benefit) $ (7,224) $ 57 $ 3,386
Effective income tax rate, percentage 41.70% (0.10%) 12.30%
v3.22.0.1
INCOME TAXES- Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 29, 2021
Dec. 30, 2020
Deferred tax assets:    
Investment in partnership $ 116,639 $ 139,379
Tax Receivable Agreement 63,983 63,853
Operating lease liability 3,873 3,470
Financing lease liability 63 51
Deferred revenue 150 141
Equity-based compensation 263 331
Net operating loss carryforwards 108,207 75,522
Tax credits 13,297 9,610
Other assets 569 457
Total gross deferred tax assets 307,044 292,814
Valuation allowance (5,173) (2,656)
Total deferred tax assets, net of valuation allowance 301,871 290,158
Deferred tax liabilities:    
Property and equipment (21) (300)
Operating lease right-of-use asset (3,121) (2,802)
Financing lease right-of-use asset (61) (49)
Total gross deferred tax liabilities (3,203) (3,151)
Net deferred tax assets $ 298,668 $ 287,007
v3.22.0.1
EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Net income $ (10,111) $ (45,534) $ 24,128
Reallocation of net income attributable to non-controlling interests from the assumed conversion of Class B shares (1,456) (3,376) 4,301
Net income (loss) attributable to Shake Shack Inc.—diluted (8,655) (42,158) 19,827
Net Income (Loss) Attributable to Parent, Diluted $ (8,655) $ (42,158) $ 19,827
Denominator:      
Weighted-average shares of Class A common stock outstanding—basic (shares) 39,085 37,129 31,381
Effect of dilutive securities:      
Weighted-average shares of Class A common stock outstanding—diluted (shares) 39,085 37,129 32,251
Earnings per share of Class A common stock—basic (in dollars per share) $ (0.22) $ (1.14) $ 0.63
Earnings per share of Class A common stock—diluted (in dollars per share) $ (0.22) $ (1.14) $ 0.61
Stock options      
Effect of dilutive securities:      
Restricted Class B units (shares) 0 0 743
Performance Shares      
Effect of dilutive securities:      
Restricted Class B units (shares) 0 0 70
Restricted Stock      
Effect of dilutive securities:      
Restricted Class B units (shares) 0 0 57
v3.22.0.1
EARNINGS PER SHARE - Antidilutive Securities (Details) (Details) - shares
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares (in shares) 154,231 489,024 946
Performance Shares      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares (in shares) 186,159 137,221 51,197
Restricted Stock Units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares (in shares) 231,429 258,493 0
Class B Common Stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares (in shares) 2,921,587 2,951,188 3,145,197
Convertible notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares (in shares) 1,466,975 0 0
v3.22.0.1
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
 1 Months Ended
Mar. 31, 2020
Feb. 28, 2018
Dec. 29, 2021
Dec. 30, 2020
Sep. 27, 2017
Loss Contingencies [Line Items]          
Litigation settlement expense $ 560        
Percentage of tax benefits due to equity owners     85.00%    
Establishment of tax receivable agreement liability     $ 234,045,000 $ 232,954,000  
Retail site          
Loss Contingencies [Line Items]          
Letters of credit outstanding     $ 130,000    
Home Office Lease          
Loss Contingencies [Line Items]          
Letters of credit outstanding         $ 603,000
Former Shake Shack Manager Litigation          
Loss Contingencies [Line Items]          
Settlement agreement amount funded   $ 1,200      
IPO          
Loss Contingencies [Line Items]          
Percentage of tax benefits due to equity owners     85.00%    
v3.22.0.1
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 29, 2021
Dec. 30, 2020
Related Party Transaction [Line Items]    
Percentage of tax benefits due to equity owners 85.00%  
Entity with Common Management    
Related Party Transaction [Line Items]    
Due to related parties, current $ 0 $ 0
v3.22.0.1
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($)
 3 Months Ended 12 Months Ended
Sep. 29, 2021
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Related Party Transaction [Line Items]        
Tax receivable agreement payments to related parties $ 707,000 $ 0 $ 6,643,000  
Establishment of tax receivable agreement liability   234,045,000 232,954,000  
Payments to noncontrolling interests   968,000 478,000 $ 1,708,000
Board of Directors Chairman | Square, Inc        
Related Party Transaction [Line Items]        
Related party transaction, expenses from transactions with related party   2,844,000 1,697,000 1,692,000
Due to related parties, current   52,000 0  
Board of Directors Chairman | Mobo Systems, Inc.        
Related Party Transaction [Line Items]        
Related party transaction, expenses from transactions with related party   406,000 242,000 170,000
Due to related parties, current   33,000 0  
Share Our Strength        
Related Party Transaction [Line Items]        
Related party transaction, expenses from transactions with related party   0 0 30,000
Charitable campaign flow through   0 0 190,000
Entity with Common Management        
Related Party Transaction [Line Items]        
Due to related parties, current   0 0  
Entity with Common Management | Rent Expense        
Related Party Transaction [Line Items]        
Related party transaction, expenses from transactions with related party   863,000 846,000 964,000
Due to related parties, current   0 0  
Entity with Common Management | Share Our Strength        
Related Party Transaction [Line Items]        
Due to related parties, current   0 0  
Entity with Common Management | USHG Acquisition Corp        
Related Party Transaction [Line Items]        
Related party transaction, expenses from transactions with related party   0 0 0
Due to related parties, current   0 0  
Subsidiary to Affiliated Entity | Concession Income        
Related Party Transaction [Line Items]        
Revenue from related parties   320,000 67,000 $ 571,000
Due from related parties, current   $ 90,000 $ 8,000  
v3.22.0.1
GEOGRAPHIC INFORMATION (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]      
TOTAL REVENUE $ 739,893 $ 522,867 $ 594,519
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
TOTAL REVENUE 718,128 508,292 578,702
Other countries      
Revenues from External Customers and Long-Lived Assets [Line Items]      
TOTAL REVENUE $ 21,765 $ 14,575 $ 15,817
v3.22.0.1
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT - BALANCE SHEET (Details) - USD ($)
$ / shares in Units, $ in Thousands
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Preferred stock, par value (in dollars per share) $ 0 $ 0    
Current assets:        
Accounts receivable $ 13,657 $ 9,464    
Total current assets 409,676 203,186    
Note receivable from SSE Holdings 201,080 0    
Note receivable - conversion option 16,000 0    
TOTAL ASSETS 1,457,570 1,145,348    
Current liabilities:        
Accounts payable 19,947 23,487    
Accrued expenses 36,892 25,920    
Current portion of liabilities under tax receivable agreement 0      
Total current liabilities 121,497 109,705    
Long-term debt 243,542 0    
Liabilities under tax receivable agreement, net of current portion 234,045 232,954    
Total liabilities 1,021,970 710,855    
Commitments and contingencies    
Stockholders' equity:        
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 29, 2021 and December 30, 2020. 0 0    
Additional paid-in capital 405,940 395,067    
Retained earnings 3,554 12,209    
Accumulated other comprehensive income 1 3    
Total stockholders' equity 435,600 434,493 $ 321,985 $ 273,455
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,457,570 $ 1,145,348    
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    
Deferred income taxes, net $ 298,668 $ 287,007    
Class A Common Stock        
Stockholders' equity:        
Common stock $ 39 $ 39    
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) 39,142,397 38,717,790    
Common stock, shares, outstanding (in shares) 39,142,397 38,717,790    
Class B Common Stock        
Stockholders' equity:        
Common stock $ 3 $ 3    
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) 2,921,587 2,951,188    
Common stock, shares, outstanding (in shares) 2,921,587 2,951,188    
Parent Company        
Preferred stock, par value (in dollars per share) $ 0 $ 0    
Current assets:        
Cash $ 7,821 $ 9,469    
Prepaid expenses 64 45    
Total current assets 7,885 9,514    
Due from SSE Holdings 2,035 2,103    
Investment in SSE Holdings 350,794 356,497    
TOTAL ASSETS 882,236 653,691    
Current liabilities:        
Accounts payable 9 3    
Accrued expenses 222 125    
Due to SSE Holdings 14,109 13,288    
Total current liabilities 14,340 13,416    
Liabilities under tax receivable agreement, net of current portion 234,045 232,954    
Total liabilities 491,927 246,370    
Commitments and contingencies    
Stockholders' equity:        
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 29, 2021 and December 30, 2020. 0 0    
Additional paid-in capital 405,940 395,067    
Retained earnings (15,674) 12,209    
Total stockholders' equity 390,309 407,321    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 882,236 $ 653,691    
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    
Deferred income taxes, net $ 304,442 $ 285,577    
Parent Company | Class A Common Stock        
Stockholders' equity:        
Common stock $ 39 $ 39    
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) 34,417,302 29,520,833    
Common stock, shares, outstanding (in shares) 34,417,302 29,520,833    
Parent Company | Class B Common Stock        
Stockholders' equity:        
Common stock $ 3 $ 3    
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) 3,145,197 7,557,347    
Common stock, shares, outstanding (in shares) 3,145,197 7,557,347    
v3.22.0.1
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF INCOME (LOSS) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Condensed Income Statements, Captions [Line Items]      
General and administrative expenses $ 85,996 $ 64,250 $ 65,649
TOTAL EXPENSES 755,746 566,743 568,834
INCOME (LOSS) FROM OPERATIONS (15,853) (43,876) 25,685
Interest expense (1,577) (815) (434)
INCOME (LOSS) BEFORE INCOME TAXES (17,335) (45,477) 27,514
Income tax expense (benefit) (7,224) 57 3,386
Net income (loss) (including amounts attributable to non-controlling interests) (10,111) (45,534) 24,128
Parent Company      
Condensed Income Statements, Captions [Line Items]      
Intercompany revenue   1,560 2,018
Revenues 2,878 1,560 2,018
General and administrative expenses 2,491 2,179 1,683
TOTAL EXPENSES 2,491 2,179 1,683
INCOME (LOSS) FROM OPERATIONS 387 (619) 335
Equity in net income (loss) from SSE Holdings (19,393) (41,152) 19,831
Other Operating Income (Expense), Net (25,593) (1,147) 808
Interest expense (867) 0 (150)
INCOME (LOSS) BEFORE INCOME TAXES (45,466) (42,918) 20,824
Income tax expense (benefit) (17,583) (760) 997
Net income (loss) (including amounts attributable to non-controlling interests) $ (27,883) $ (42,158) $ 19,827
v3.22.0.1
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) - USD ($)
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Condensed Statement of Income Captions [Line Items]      
Net income $ (10,111,000) $ (45,534,000) $ 24,128,000
Available-for-sale Securities:      
OTHER COMPREHENSIVE LOSS, NET OF TAX (2,000) 1,000 2,000
COMPREHENSIVE INCOME (10,113,000) (45,533,000) 24,130,000
Income tax benefit 0    
Change in foreign currency translation adjustment (2,000) 1,000 2,000
Parent Company      
Condensed Statement of Income Captions [Line Items]      
Net income (27,883,000) (42,158,000) 19,827,000
Available-for-sale Securities:      
Change in net unrealized holding gains [1] 0 0 0
OTHER COMPREHENSIVE LOSS, NET OF TAX [1] (2,000) 1,000 0
COMPREHENSIVE INCOME (27,885,000) (42,157,000) 19,827,000
Change in foreign currency translation adjustment $ (2,000) $ 1,000 $ 0
[1] Net of tax benefit of $0 for fiscal years ended December 29, 2021, December 30, 2020 and December 25, 2019.
v3.22.0.1
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF CASH FLOWS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
OPERATING ACTIVITIES      
Net income $ (10,111) $ (45,534) $ 24,128
Adjustments to reconcile net income (loss) to net cash used in operating activities:      
Equity-based compensation 8,703 5,560 7,505
Deferred income taxes (10,379) (1,356) (6,064)
Non-cash interest expense 353 66 170
Unrealized gain (loss) on equity securities (277) (59) 194
Amortization of debt issuance costs (867) 0 0
Other non-cash (income) expense (4) 1,937 (338)
Changes in operating assets and liabilities:      
Accounts receivable (4,193) 1,006 10,726
Prepaid expenses and other current assets 4,913 (5,197) 134
Accounts payable (6,450) 4,626 4,248
Accrued expenses 7,175 2,170 9,856
Other current liabilities (1,166) 1,752 1,438
NET CASH PROVIDED BY OPERATING ACTIVITIES 58,402 37,350 89,857
INVESTING ACTIVITIES      
NET CASH USED IN INVESTING ACTIVITIES (144,890) (69,397) (80,686)
FINANCING ACTIVITIES      
Proceeds from issuance of convertible notes, net of discount 243,750 0 0
Proceeds from issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs 0 144,997 0
Proceeds from stock option exercises 6,731 8,033 9,201
Payments under tax receivable agreement 0 (6,643) (707)
NET CASH PROVIDED BY FINANCING ACTIVITIES 242,021 141,821 3,178
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 146,873 37,099 24,750
CASH AND CASH EQUIVALENTS AT END OF PERIOD 302,406 146,873 37,099
Parent Company      
OPERATING ACTIVITIES      
Net income (27,883) (42,158) 19,827
Adjustments to reconcile net income (loss) to net cash used in operating activities:      
Equity in net (income) loss from SSE Holdings 19,393 41,152 (19,831)
Equity-based compensation 526 555 279
Deferred income taxes (17,583) (721) (5,317)
Non-cash interest expense 0 0 151
Unrealized gain (loss) on equity securities 32,200 0 0
Amortization of debt issuance costs 867 0 0
Other non-cash (income) expense (6,609) 1,147 (808)
Changes in operating assets and liabilities:      
Accounts receivable 0 1 (1)
Prepaid expenses and other current assets (19) 161 (71)
Due to SSE Holdings (8,229) (1,254) (5,190)
Accounts payable 6 2 1
Accrued expenses 118 (29) 6,003
NET CASH PROVIDED BY OPERATING ACTIVITIES (7,213) (1,144) (4,957)
INVESTING ACTIVITIES      
Purchases of LLC Interests from SSE Holdings (41,875) (171,180) (29,481)
Loan to SSE Holdings (243,750) 0 0
NET CASH USED IN INVESTING ACTIVITIES (285,625) (171,180) (29,481)
FINANCING ACTIVITIES      
Proceeds from issuance of convertible notes, net of discount 243,750 0 0
Debt issuance costs (1,075) 0 0
Proceeds from issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs 0 144,861 0
Proceeds from issuance of Class A common stock to SSE Holdings upon settlement of equity awards 41,875 26,319 29,481
Proceeds from stock option exercises 6,640 8,033 9,201
Payments under tax receivable agreement 0 (6,643) (707)
NET CASH PROVIDED BY FINANCING ACTIVITIES 291,190 172,570 37,975
Cash and Cash Equivalents, Period Increase (Decrease) (1,648) 246 3,537
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 9,469 9,223 5,686
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 7,821 $ 9,469 $ 9,223
v3.22.0.1
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT - NOTES TO FINANCIAL STATEMENTS (Details) - USD ($)
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Mar. 31, 2021
Class of Stock [Line Items]        
Percentage of tax benefits due to equity owners 85.00%      
Payments under tax receivable agreement $ 0 $ (6,643,000) $ (707,000)  
Cash paid for:        
Income taxes 2,808,000 1,612,000 3,044,000  
Non-cash financing activities:        
Establishment of Liabilities Under Tax Receivable Agreement 1,093,000 4,024,000 32,065,000  
Other income (expense), net 95,000 (786,000) 2,263,000  
Income tax expense (benefit) (7,224,000) 57,000 3,386,000  
Deferred income taxes, net $ 298,668,000 287,007,000    
IPO        
Class of Stock [Line Items]        
Percentage of tax benefits due to equity owners 85.00%      
Class A Common Stock | Gramercy Tavern        
Non-cash investing activities:        
Class A common stock issued $ 0 0 3,000  
Class B Common Stock | Gramercy Tavern        
Non-cash financing activities:        
Cancellation of Class B common stock 0 0 (3,000)  
Parent Company        
Class of Stock [Line Items]        
Due to SSE Holdings 14,109,000 13,288,000    
Intercompany revenue   1,560,000 2,018,000  
Equity in net income (loss) from SSE Holdings $ (19,393,000) (41,152,000) 19,831,000  
Percentage of tax benefits due to equity owners 85.00%      
Payments under tax receivable agreement $ 0 (6,643,000) (707,000)  
Non-cash investing activities:        
Accrued contribution related to stock option exercises 6,731,000 8,094,000 9,227,000  
Non-cash contribution made in connection with equity awards granted to employees of SSE Holdings 11,468,000 5,193,000 4,402,000  
Non-cash financing activities:        
Income tax expense (benefit) (17,583,000) (760,000) 997,000  
Deferred income taxes, net 304,442,000 285,577,000    
Parent Company | Affiliated Entity        
Non-cash financing activities:        
Deferred income taxes, net 7,234,000 0    
Parent Company | Class A Common Stock | Secondary Offering and Redemption of Units        
Non-cash investing activities:        
Class A common stock issued 33,000 1,723,000 11,934,000  
Parent Company | Class A Common Stock | Gramercy Tavern        
Non-cash investing activities:        
Class A common stock issued 0 0 19,218,000  
Parent Company | Class B Common Stock | USC Merger        
Non-cash financing activities:        
Cancellation of Class B common stock 0 0 (3,000)  
Parent Company | Class B Common Stock | Secondary Offering and Redemption of Units        
Non-cash financing activities:        
Cancellation of Class B common stock   0 (2,000)  
Consolidation, Eliminations | Parent Company        
Class of Stock [Line Items]        
Intercompany revenue 2,878,000      
Equity in net income (loss) from SSE Holdings (19,393,000)      
Cash paid for:        
Income taxes 19,000 124,000 233,000  
Non-cash financing activities:        
Establishment of Liabilities Under Tax Receivable Agreement 1,093,000 $ 4,024,000 $ 32,065,000  
Other income (expense), net (25,595,000)      
Income tax expense (benefit) (7,234,000)      
Intersegment Eliminations | Parent Company        
Class of Stock [Line Items]        
Intercompany note       $ 250,000
Fair value of receivable 16,000     $ 48,200
Unrealized loss on receivable 32,200      
Balance of receivable, net of accretion 201,080      
Interest income $ 6,605      
v3.22.0.1
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS (Details) - Deferred tax asset valuation allowance - USD ($)
$ in Thousands
 12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period $ 2,656 $ 954 $ 6,925
Charged to costs and expenses (6,063) (2,610) (4,654)
Charged to other accounts 8,580 4,312 0
Reductions 0 0 (1,317)
Balance at end of period $ 5,173 $ 2,656 $ 954