SHAKE SHACK INC., 10-K filed on 2/26/2021
Annual Report
v3.20.4
COVER PAGE - USD ($)
 12 Months Ended
Dec. 30, 2020
Feb. 17, 2021
Jun. 24, 2020
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 30, 2020    
Current Fiscal Year End Date --12-30    
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     $ 1,845,175,639
Documents Incorporated by Reference Portions of the registrant’s definitive Proxy Statement for its 2021 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K.    
Amendment Flag false    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001620533    
Class A Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   39,022,298  
Class B Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   2,948,788  
v3.20.4
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
TOTAL REVENUE $ 522,867 $ 594,519 $ 459,310
Shack-level operating expenses:      
Food and paper costs 153,335 168,176 126,096
Labor and related expenses 156,814 160,811 122,094
Other operating expenses 73,220 69,169 51,783
Occupancy and related expenses 51,592 48,451 32,710
General and administrative expenses 64,250 65,649 52,720
Depreciation expense 48,801 40,392 29,000
Pre-opening costs 8,580 14,834 12,279
Impairment and loss on disposal of assets 10,151 1,352 917
TOTAL EXPENSES 566,743 568,834 427,599
OPERATING INCOME (LOSS) (43,876) 25,685 31,711
Other income (expense), net (786) 2,263 1,514
Interest expense (815) (434) (2,415)
INCOME (LOSS) BEFORE INCOME TAXES (45,477) 27,514 30,810
Income tax expense (benefit) 57 3,386 8,862
NET INCOME (LOSS) (45,534) 24,128 21,948
Less: net income (loss) attributable to non-controlling interests (3,376) 4,301 6,769
Net income (loss) attributable to Shake Shack Inc. $ (42,158) $ 19,827 $ 15,179
Earnings (loss) per share of Class A common stock      
Basic (in dollars per share) $ (1.14) $ 0.63 $ 0.54
Diluted (in dollars per share) $ (1.14) $ 0.61 $ 0.52
Weighted-average shares of Class A common stock outstanding      
Basic (shares) 37,129 31,381 28,299
Diluted (shares) 37,129 32,251 29,179
Shack sales      
TOTAL REVENUE $ 506,339 $ 574,625 $ 445,589
Licensing revenue      
TOTAL REVENUE $ 16,528 $ 19,894 $ 13,721
v3.20.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Statement of Comprehensive Income [Abstract]      
Net income $ (45,534) $ 24,128 $ 21,948
Other comprehensive income, net of tax(1):      
Change in foreign currency translation adjustment 1 2 0
Available-for-sale Securities:      
Change in net unrealized holding losses [1] 0 0 (3)
Less: reclassification adjustments for net realized losses included in net income [1] 0 0 16
Net change [1] 1 2 13
Net unrealized losses related to available-for-sale securities 1 2 13
COMPREHENSIVE INCOME (45,533) 24,130 21,961
Less: comprehensive income (loss) attributable to non-controlling interests (3,376) 4,301 6,772
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAKE SHACK INC. $ (42,157) $ 19,829 $ 15,189
[1] Net of tax benefit of $0 for fiscal years ended December 30, 2020, December 25, 2019 and December 26, 2018.
v3.20.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($)
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Statement of Comprehensive Income [Abstract]      
Comprehensive income net of tax benefit $ 0 $ 0 $ 0
v3.20.4
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. 27, 2017 $ 224,479 $ (1,574)     $ 27 $ 10 $ 153,105 $ 16,399 $ (1,174) $ (49) $ 39 $ 54,987 $ (439)        
Beginning balance (in shares) at Dec. 27, 2017         26,527,477 10,250,007                      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Net income 21,948             15,179       6,769          
Other comprehensive loss:                                  
Net unrealized losses related to available-for-sale securities 13                 10   3          
Net change in foreign currency translation adjustment 0                 0              
Equity-based compensation 6,250           6,250                    
Equity-based compensation 4,523       $ 1   2,509         2,013          
Activity under stock compensation (in shares)         300,696                        
Redemptions                       (15,202)   $ 0 $ (2) $ (2) $ (15,202)
Redemptions (in shares)         (2,692,660)                   (2,692,660) (2,692,660)  
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis 18,567           18,567                    
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis (751)                     (751)          
Ending balance at Dec. 26, 2018 273,455 $ 5,195     $ 30 $ 8 195,633 30,404 $ 4,136 0   47,380 $ 1,059        
Ending 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                 0              
Net change in foreign currency translation adjustment 2                 2              
Equity-based compensation 7,700           7,700                    
Equity-based compensation 7,805         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) (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       $ 35 $ 3 244,410 54,367   2   23,168          
Ending balance (in shares) at Dec. 25, 2019     34,417,302 3,145,197 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                 0              
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                      
v3.20.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
OPERATING ACTIVITIES      
Net income (loss) (including amounts attributable to non-controlling interests) $ (45,534) $ 24,128 $ 21,948
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation expense 48,801 40,392 29,000
Amortization of cloud computing asset 1,444 312 0
Non-cash operating lease cost 44,910 40,068 0
Equity-based compensation 5,560 7,505 6,143
Deferred income taxes (1,356) (6,064) 788
Non-cash interest expense 66 170 72
(Gain) loss on sale of marketable securities (79) (22) 16
Impairment and loss on disposal of assets 10,151 1,352 917
Other non-cash expense (income) 1,937 (338) (78)
Unrealized (gain) loss on equity securities 59   0
Unrealized Gain (Loss) on Investments   194  
Net loss on sublease 0 0 672
Changes in operating assets and liabilities:      
Accounts receivable 1,006 10,726 5,530
Inventories (667) (472) (491)
Prepaid expenses and other current assets (5,197) 134 (270)
Other assets (2,940) (8,245) (2,726)
Accounts payable 4,626 4,248 3,156
Accrued expenses 2,170 9,856 7,979
Accrued wages and related liabilities (1,010) 799 4,424
Other current liabilities 1,752 1,438 860
Deferred rent 0 0 1,247
Long-term operating lease liabilities (33,724) (37,308) 0
Other long-term liabilities 5,375 1,372 6,208
NET CASH PROVIDED BY OPERATING ACTIVITIES 37,350 89,857 85,395
INVESTING ACTIVITIES      
Purchases of property and equipment (69,038) (106,507) (87,525)
Purchases of marketable securities (20,359) (1,179) (1,223)
Sales of marketable securities 20,000 27,000 2,144
NET CASH USED IN INVESTING ACTIVITIES (69,397) (80,686) (86,604)
FINANCING ACTIVITIES      
Proceeds from Revolving Credit Facility 50,000 0 0
Payments on Revolving Credit Facility (50,000) 0 0
Proceeds from deemed landlord financing 0 0 1,382
Payments on deemed landlord financing 0 0 (702)
Deferred financing costs (64) (286) 0
Proceeds from issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs 144,997 0 0
Payments on principal of finance leases (2,206) (1,926) 0
Distributions paid to non-controlling interest holders (478) (1,708) (751)
Payments under tax receivable agreement (6,643) (707) 0
Net proceeds from stock option exercises 8,033 9,201 5,472
Employee withholding taxes related to net settled equity awards (1,818) (1,396) (949)
NET CASH PROVIDED BY FINANCING ACTIVITIES 141,821 3,178 4,452
INCREASE IN CASH AND CASH EQUIVALENTS 109,774 12,349 3,243
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 37,099 24,750 21,507
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 146,873 $ 37,099 $ 24,750
v3.20.4
SUPPLEMENTAL CASH FLOW INFORMATION
 12 Months Ended
Dec. 30, 2020
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION
The following table sets forth supplemental cash flow information for fiscal 2020, fiscal 2019 and fiscal 2018:
202020192018
Cash paid for:
Income taxes, net of refunds$1,612 $3,044 $3,272 
Interest, net of amounts capitalized643 255 2,261 
Non-cash investing activities:
Accrued purchases of property and equipment15,515 12,620 17,443 
Capitalized landlord assets for leases where we are deemed the accounting owner— — 5,443 
Capitalized equity-based compensation37 101 107 
Non-cash financing activities:
Class A common stock issued in connection with the redemption of LLC Interests— 2 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)(2)
Cancellation of Class B common stock in connection with the GTC Merger— (3)— 
Establishment of liabilities under tax receivable agreement4,024 32,065 44,338 
v3.20.4
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
 12 Months Ended
Dec. 30, 2020
Quarterly Financial Information Disclosure [Abstract]  
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
The following table sets forth certain unaudited financial information for each quarter of fiscal 2020 and fiscal 2019. The unaudited quarterly information includes all adjustments (consisting of normal recurring adjustments) that, in the opinion of management, are necessary for the fair presentation of the information presented. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year.
2020
FirstSecondThirdFourth
QuarterQuarterQuarterQuarter
Total revenue$143,170 $91,786 $130,401 $157,510 
Operating loss (787)(24,075)(6,798)(12,216)
Net loss(1,079)(18,031)(6,110)(20,314)
Net loss attributable to Shake Shack Inc. (960)(16,211)(5,559)(19,428)
Loss per share(1):
Basic$(0.03)$(0.43)$(0.15)$(0.50)
Diluted$(0.03)$(0.43)$(0.15)$(0.50)

2019
FirstSecondThirdFourth
QuarterQuarterQuarterQuarter
Total revenue$132,609 $152,713 $157,762 $151,435 
Operating income5,162 11,871 8,164 488 
Net income (loss)3,607 11,171 11,423 (2,073)
Net income (loss) attributable to Shake Shack Inc. 2,546 9,030 10,344 (2,093)
Earnings (loss) per share(1):
Basic$0.09 $0.30 $0.32 $(0.06)
Diluted$0.08 $0.29 $0.31 $(0.06)
(1)    Basic and diluted earnings (loss) per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings (loss) per share amounts may not equal annual basic and diluted earnings (loss) per share amounts.
v3.20.4
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
 12 Months Ended
Dec. 30, 2020
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Flow Information
The following table sets forth supplemental cash flow information for fiscal 2020, fiscal 2019 and fiscal 2018:
202020192018
Cash paid for:
Income taxes, net of refunds$1,612 $3,044 $3,272 
Interest, net of amounts capitalized643 255 2,261 
Non-cash investing activities:
Accrued purchases of property and equipment15,515 12,620 17,443 
Capitalized landlord assets for leases where we are deemed the accounting owner— — 5,443 
Capitalized equity-based compensation37 101 107 
Non-cash financing activities:
Class A common stock issued in connection with the redemption of LLC Interests— 2 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)(2)
Cancellation of Class B common stock in connection with the GTC Merger— (3)— 
Establishment of liabilities under tax receivable agreement4,024 32,065 44,338 
v3.20.4
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
 12 Months Ended
Dec. 30, 2020
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information
The following table sets forth certain unaudited financial information for each quarter of fiscal 2020 and fiscal 2019. The unaudited quarterly information includes all adjustments (consisting of normal recurring adjustments) that, in the opinion of management, are necessary for the fair presentation of the information presented. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year.
2020
FirstSecondThirdFourth
QuarterQuarterQuarterQuarter
Total revenue$143,170 $91,786 $130,401 $157,510 
Operating loss (787)(24,075)(6,798)(12,216)
Net loss(1,079)(18,031)(6,110)(20,314)
Net loss attributable to Shake Shack Inc. (960)(16,211)(5,559)(19,428)
Loss per share(1):
Basic$(0.03)$(0.43)$(0.15)$(0.50)
Diluted$(0.03)$(0.43)$(0.15)$(0.50)

2019
FirstSecondThirdFourth
QuarterQuarterQuarterQuarter
Total revenue$132,609 $152,713 $157,762 $151,435 
Operating income5,162 11,871 8,164 488 
Net income (loss)3,607 11,171 11,423 (2,073)
Net income (loss) attributable to Shake Shack Inc. 2,546 9,030 10,344 (2,093)
Earnings (loss) per share(1):
Basic$0.09 $0.30 $0.32 $(0.06)
Diluted$0.08 $0.29 $0.31 $(0.06)
(1)    Basic and diluted earnings (loss) per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings (loss) per share amounts may not equal annual basic and diluted earnings (loss) per share amounts.
v3.20.4
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Cash paid for:      
Income taxes, net of refunds $ 1,612 $ 3,044 $ 3,272
Interest, net of amounts capitalized 643 255 2,261
Non-cash investing activities:      
Accrued purchases of property and equipment 15,515 12,620 17,443
Capitalized landlord assets for leases where we are deemed the accounting owner 0 0 5,443
Share-based Payment Arrangement, Amount Capitalized into Other Assets 37 101  
Capitalized equity-based compensation 40 195 107
Non-cash financing activities:      
Establishment of liabilities under tax receivable agreement 4,024 32,065 44,338
Redemption or Exchange of Units | Class A Common Stock      
Non-cash investing activities:      
Class A common stock issued 0 2 2
Redemption or Exchange of Units | Class B Common Stock      
Non-cash financing activities:      
Cancellation of Class B common stock 0 (2) (2)
Gramercy Tavern | Class A Common Stock      
Non-cash investing activities:      
Class A common stock issued 0 3 0
Gramercy Tavern | Class B Common Stock      
Non-cash financing activities:      
Cancellation of Class B common stock $ 0 $ (3) $ 0
v3.20.4
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 30, 2020
Sep. 23, 2020
Jun. 24, 2020
Mar. 25, 2020
Dec. 25, 2019
Sep. 25, 2019
Jun. 26, 2019
Mar. 27, 2019
Quarterly Financial Information Disclosure [Abstract]                
TOTAL REVENUE $ 157,510 $ 130,401 $ 91,786 $ 143,170 $ 151,435 $ 157,762 $ 152,713 $ 132,609
Operating loss (12,216) (6,798) (24,075) (787) 488 8,164 11,871 5,162
Net income (20,314) (6,110) (18,031) (1,079) (2,073) 11,423 11,171 3,607
Net income attributable to Shake Shack Inc. $ (19,428) $ (5,559) $ (16,211) $ (960) $ (2,093) $ 10,344 $ 9,030 $ 2,546
Earnings (loss) per share                
Basic (in dollars per share) $ (0.50) $ (0.15) $ (0.43) $ (0.03) $ (0.06) $ 0.32 $ 0.30 $ 0.09
Diluted (in dollars per share) $ (0.50) $ (0.15) $ (0.43) $ (0.03) $ (0.06) $ 0.31 $ 0.29 $ 0.08
v3.20.4
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF INCOME (LOSS) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Condensed Income Statements, Captions [Line Items]      
General and administrative expenses $ 64,250 $ 65,649 $ 52,720
TOTAL EXPENSES 566,743 568,834 427,599
OPERATING INCOME (LOSS) (43,876) 25,685 31,711
Other income (loss) (1,937) 338 78
Interest expense (815) (434) (2,415)
INCOME (LOSS) BEFORE INCOME TAXES (45,477) 27,514 30,810
Income tax expense (benefit) 57 3,386 8,862
Net income (loss) (including amounts attributable to non-controlling interests) (45,534) 24,128 21,948
Parent Company      
Condensed Income Statements, Captions [Line Items]      
Intercompany revenue 1,560 2,018 2,055
Revenues 1,560 2,018 2,055
General and administrative expenses 2,179 1,683 1,933
TOTAL EXPENSES 2,179 1,683 1,933
OPERATING INCOME (LOSS) (619) 335 122
Equity in net income (loss) of subsidiaries (41,152) 19,831 21,537
Other income (loss) (1,147) 808 78
Interest expense 0 (150) (14)
INCOME (LOSS) BEFORE INCOME TAXES (42,918) 20,824 21,723
Income tax expense (benefit) (760) 997 6,544
Net income (loss) (including amounts attributable to non-controlling interests) $ (42,158) $ 19,827 $ 15,179
v3.20.4
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) - USD ($)
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Condensed Statement of Income Captions [Line Items]      
Net income $ (45,534,000) $ 24,128,000 $ 21,948,000
Available-for-sale Securities:      
Change in net unrealized holding losses [1] 0 0 (3,000)
Less: reclassification adjustments for net realized losses included in net income [1] 0 0 16,000
OTHER COMPREHENSIVE LOSS, NET OF TAX 1,000 2,000 13,000
COMPREHENSIVE INCOME (45,533,000) 24,130,000 21,961,000
Income tax benefit 0 0 0
Change in foreign currency translation adjustment 1,000 2,000 0
Parent Company      
Condensed Statement of Income Captions [Line Items]      
Net income (42,158,000) 19,827,000 15,179,000
Available-for-sale Securities:      
Change in net unrealized holding losses [1] 0 0 (3,000)
Less: reclassification adjustments for net realized losses included in net income [1] 0 0 13,000
OTHER COMPREHENSIVE LOSS, NET OF TAX [1] 1,000 0 10,000
COMPREHENSIVE INCOME (42,157,000) 19,827,000 15,189,000
Income tax benefit   0 0
Change in foreign currency translation adjustment $ 1,000 $ 0 $ 0
[1] Net of tax benefit of $0 for fiscal years ended December 30, 2020, December 25, 2019 and December 26, 2018.
v3.20.4
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF CASH FLOWS (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 30, 2020
Mar. 25, 2020
Dec. 25, 2019
Mar. 27, 2019
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
OPERATING ACTIVITIES              
Net income $ (20,314) $ (1,079) $ (2,073) $ 3,607 $ (45,534) $ 24,128 $ 21,948
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:              
Equity-based compensation         5,560 7,505 6,143
Deferred income taxes         (1,356) (6,064) 788
Non-cash interest expense         66 170 72
Other non-cash income         1,937 (338) (78)
Changes in operating assets and liabilities:              
Accounts receivable         1,006 10,726 5,530
Prepaid expenses and other current assets         (5,197) 134 (270)
Accounts payable         4,626 4,248 3,156
Accrued expenses         2,170 9,856 7,979
Other current liabilities         1,752 1,438 860
NET CASH PROVIDED BY OPERATING ACTIVITIES         37,350 89,857 85,395
INVESTING ACTIVITIES              
NET CASH USED IN INVESTING ACTIVITIES         (69,397) (80,686) (86,604)
FINANCING ACTIVITIES              
Proceeds from issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs         144,997 0 0
Proceeds from stock option exercises         8,033 9,201 5,472
Payments under tax receivable agreement         (6,643) (707) 0
NET CASH PROVIDED BY FINANCING ACTIVITIES         141,821 3,178 4,452
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD   37,099   24,750 37,099 24,750 21,507
CASH AND CASH EQUIVALENTS AT END OF PERIOD 146,873   37,099   146,873 37,099 24,750
Parent Company              
OPERATING ACTIVITIES              
Net income         (42,158) 19,827 15,179
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:              
Equity in net income of subsidiaries         41,152 (19,831) (21,537)
Equity-based compensation         555 279 252
Deferred income taxes         (721) (5,317) 777
Non-cash interest expense         0 151 0
Other non-cash income         1,147 (808) (78)
Changes in operating assets and liabilities:              
Accounts receivable         1 (1) 0
Prepaid expenses and other current assets         161 (71) 0
Due to/from SSE Holdings         (1,254) (5,190) (7,103)
Accounts payable         2 1 0
Accrued expenses         (29) 6,003 5,669
Other current liabilities         0 0 14
NET CASH PROVIDED BY OPERATING ACTIVITIES         (1,144) (4,957) (6,827)
INVESTING ACTIVITIES              
Purchases of LLC Interests from SSE Holdings         (171,180) (29,481) (11,142)
Return of investment in SSE Holdings         0 0 2,053
NET CASH USED IN INVESTING ACTIVITIES         (171,180) (29,481) (9,089)
FINANCING ACTIVITIES              
Proceeds from issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs         144,861 0 0
Proceeds from issuance of Class A common stock to SSE Holdings upon settlement of equity awards         26,319 29,481 11,142
Proceeds from stock option exercises         8,033 9,201 5,472
Payments under tax receivable agreement         (6,643) (707) 0
NET CASH PROVIDED BY FINANCING ACTIVITIES         172,570 37,975 16,614
INCREASE IN CASH AND CASH EQUIVALENTS         246 3,537 698
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD   $ 9,223   $ 5,686 9,223 5,686 4,988
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 9,469   $ 9,223   $ 9,469 $ 9,223 $ 5,686
v3.20.4
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT - NOTES TO FINANCIAL STATEMENTS (Details) - USD ($)
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Class of Stock [Line Items]      
Percentage of tax benefits due to equity owners 85.00%    
Payments under tax receivable agreement $ (6,643,000) $ (707,000) $ 0
Cash paid for:      
Income taxes 1,612,000 3,044,000 3,272,000
Non-cash financing activities:      
Establishment of Liabilities Under Tax Receivable Agreement $ 4,024,000 32,065,000 44,338,000
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 3,000 0
Class B Common Stock | Gramercy Tavern      
Non-cash financing activities:      
Cancellation of Class B common stock 0 (3,000) 0
Parent Company      
Class of Stock [Line Items]      
Due from SSE Holdings 2,103,000 7,124,000  
Due to SSE Holdings 13,288,000 9,652,000  
Intercompany revenue 1,560,000 2,018,000 2,055,000
Equity in net income (loss) of subsidiaries $ (41,152,000) 19,831,000 21,537,000
Percentage of tax benefits due to equity owners 85.00%    
Payments under tax receivable agreement $ (6,643,000) (707,000) 0
Non-cash investing activities:      
Accrued contribution related to stock option exercises 8,094,000 9,227,000 5,472,000
Non-cash contribution made in connection with equity awards granted to employees of SSE Holdings 5,193,000 4,402,000 5,999,000
Parent Company | Class A Common Stock | Secondary Offering and Redemption of Units      
Non-cash investing activities:      
Class A common stock issued 1,723,000 11,934,000 15,202,000
Parent Company | Class A Common Stock | Gramercy Tavern      
Non-cash investing activities:      
Class A common stock issued 0 19,218,000 0
Parent Company | Class B Common Stock | USC Merger      
Non-cash financing activities:      
Cancellation of Class B common stock 0 (3,000) 0
Parent Company | Class B Common Stock | Secondary Offering and Redemption of Units      
Non-cash financing activities:      
Cancellation of Class B common stock   (2,000) (2,000)
Consolidation, Eliminations | Parent Company      
Class of Stock [Line Items]      
Intercompany revenue 1,560,000    
Equity in net income (loss) of subsidiaries (41,152,000)    
Cash paid for:      
Income taxes 124,000 233,000 185,000
Non-cash financing activities:      
Establishment of Liabilities Under Tax Receivable Agreement $ 4,024,000 $ 32,065,000 $ 44,338,000
v3.20.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Dec. 27, 2017
Current assets:        
Cash and cash equivalents $ 146,873 $ 37,099 $ 24,750 $ 21,507
Marketable securities 36,887 36,508    
Accounts receivable, net 9,464 9,970    
Inventories 2,888 2,221    
Prepaid expenses and other current assets 7,074 1,877    
Total current assets 203,186 87,675    
Property and equipment, net 336,541 314,862    
Operating lease assets 306,317 274,426    
Other assets 12,297 11,488    
TOTAL ASSETS 1,145,348 968,268    
Current liabilities:        
Accounts payable 23,487 14,300    
Accrued expenses 25,920 24,140    
Accrued wages and related liabilities 10,441 11,451    
Operating lease liabilities, current 35,657 30,002    
Other current liabilities 14,200 19,499    
Total current liabilities 109,705 99,392    
Long-term operating lease liabilities 343,736 304,914    
Liabilities under tax receivable agreement, net of current portion 232,954 226,649    
Other long-term liabilities 24,460 15,328    
Total liabilities 710,855 646,283    
Commitments and contingencies    
Stockholders' equity:        
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 30, 2020 and December 25, 2019, respectively. 0 0    
Additional paid-in capital 395,067 244,410    
Retained earnings 12,209 54,367    
Accumulated other comprehensive income 3 2    
Total stockholders' equity attributable to Shake Shack Inc. 407,321 298,817    
Non-controlling interests 27,172 23,168    
Total equity 434,493 321,985 $ 273,455 $ 224,479
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,145,348 968,268    
Deferred Income Tax Assets, Net 287,007 279,817    
Class A common stock, $0.001 par value—200,000,000 shares authorized; 38,717,790 and 34,417,302 shares issued and outstanding as of December 30, 2020 and December 25, 2019, respectively.        
Stockholders' equity:        
Common stock 39 35    
Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,951,188 and 3,145,197 shares issued and outstanding as of December 30, 2020 and December 25, 2019, respectively.        
Stockholders' equity:        
Common stock $ 3 $ 3    
v3.20.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 30, 2020
Dec. 25, 2019
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) 38,717,790 34,417,302
Common stock, shares, outstanding (in shares) 38,717,790 34,417,302
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) 2,951,188 3,145,197
Common stock, shares, outstanding (in shares) 2,951,188 3,145,197
v3.20.4
NATURE OF OPERATIONS
 12 Months Ended
Dec. 30, 2020
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 30, 2020 we owned 92.9% 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 30, 2020, there were 311 Shacks in operation, system-wide, of which 183 were domestic Company-operated Shacks, 22 were domestic licensed Shacks and 106 were international licensed Shacks.
v3.20.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 30, 2020
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 our accounts and the accounts of our 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 considered 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 30, 2020 and December 25, 2019, the net assets of SSE Holdings were $383,669 and $270,542, respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreements. See Note 9, Debt, for more information.
Fiscal Year
We operate on a 52/53 week fiscal year ending on the last Wednesday in December. Fiscal year 2020 contained 53 weeks and ended on December 30, 2020 ("fiscal 2020"). Fiscal years 2019 and 2018 each contained 52 weeks and ended on December 25, 2019 ("fiscal 2019") and December 26, 2018 ("fiscal 2018"), respectively. 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. Significant estimates inherent in the preparation of the consolidated financial statements include useful lives and impairments of long-lived tangible and intangible assets, accounting for income taxes and related uncertain tax positions, the valuation of equity-based compensation and awards, and reserves for litigation and other contingencies, amongst others. Actual results could differ from those estimates.
Segment Reporting
We own and operate Shacks in the United States. We also have domestic and international licensed operations. Our chief operating decision makers (the "CODMs") are our Chief Executive Officer and our President and Chief Financial Officer. As the CODMs review financial performance and allocate resources at a consolidated level on a recurring basis, we have one operating segment and one reportable segment.
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. The three levels of the hierarchy are defined as follows:
▪Level 1 — Unadjusted 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, 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. In fiscal 2019, cash equivalents consist primarily of money market funds.
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, 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 consist primarily of receivables from our licensees for licensing revenue and related reimbursements, credit card receivables and vendor rebates. We evaluate the collectibility of our 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 amount of an asset may not be recoverable. Recoverability of an asset is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount 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 further details.
Deferred Financing Costs
Deferred financing costs incurred in connection with the issuance of long-term debt and establishing credit facilities are capitalized and amortized to 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, transferable liquor licenses, certain custom furniture pre-ordered for future Shacks and yet to be placed in service and security deposits.
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 are expensed over the renewal term. As of both December 30, 2020 and December 25, 2019, indefinite-lived intangible assets relating to transferable liquor licenses totaled $1,437. We evaluate our indefinite-lived intangible assets for impairment annually during our fiscal fourth quarter, and whenever events or changes in circumstances indicate that an impairment may exist. When evaluating intangible assets for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that an intangible asset group is impaired. If we do not perform the qualitative assessment, or if we determine that it is not more likely than not that the fair value of the intangible asset group exceeds its carrying amount, we calculate the estimated fair value of the intangible asset group. If the carrying amount 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. Shack revenues are recognized when payment is tendered at the point of sale as the performance obligation has been satisfied.
Revenue from Shack sales is presented net of discounts and recognized when food, beverage and retail products are sold. Sales tax collected from customers is excluded from Shack sales and the obligation is included in sales tax payable until the taxes are remitted to the appropriate taxing authorities. Revenue from our 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 goods or services 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 those 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 within 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 $1,449, $857 and $399 in fiscal 2020, fiscal 2019 and fiscal 2018, respectively, and are included in General and administrative expense and Other operating expenses on the Consolidated Statements of Income (Loss).
Leases
On December 27, 2018 we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), using a modified retrospective approach. Refer to Note 10, Leases, for further details.
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 2037. 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. Once a Shack opens, we record the straight-line lease expense and any contingent rent, if applicable, in Occupancy and related expenses on the Consolidated Statements of Income. 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 our incremental borrowing rate (“IBR”). There are no explicit rates provided in our leases. The IBR 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. We determined our credit rating based on a comparison of the financial information of SSE Holdings to other public companies and then used their respective credit ratings to develop our own.
For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases, the asset is depreciated 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. 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 as 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, 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 employee 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 amounts 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 operation.
Recently Adopted Accounting Pronouncements     
We adopted the Accounting Standards Update ("ASU") summarized below in fiscal 2020.
ASUDescriptionDate
Adopted
Measurement of Credit Losses on Financial Instruments

(ASU 2016-13)
This standard replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.

The adoption of this standard did not have a material impact to our consolidated financial statements.		December 26, 2019
Facilitation of the Effects of Reference Rate Reform on Financial Reporting


(ASU 2020-04)		This standard provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued.

The adoption of this standard did not have a material impact to our consolidated financial statements.		Effective upon issuance (March 12, 2020)
Recently Issued Accounting Pronouncements
v3.20.4
REVENUE (Notes)
 12 Months Ended
Dec. 30, 2020
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Revenue Recognition
Revenue recognized during fiscal 2020, fiscal 2019 and fiscal 2018 disaggregated by type is as follows:
202020192018
Shack sales$506,339 $574,625 $445,589 
Licensing revenue:
Sales-based royalties15,773 19,318 13,422 
Initial territory and opening fees755 576 299 
Total revenue$522,867 $594,519 $459,310 
The aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of December 30, 2020 is $16,937. 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 30
2020		December 25
2019
Shack sales receivables$5,373 $4,265 
Licensing receivables, net of allowance for doubtful accounts2,647 4,510 
Gift card liability2,637 2,258 
Deferred revenue, current608 511 
Deferred revenue, long-term12,151 11,310 
Revenue recognized during fiscal 2020 and fiscal 2019 that was included in their respective liability balances at the beginning of the period is as follows:
20202019
Gift card liability$537 $524 
Deferred revenue723 536 
v3.20.4
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 30, 2020
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis as of December 30, 2020 and December 25, 2019, and indicate the classification within the fair value hierarchy. Refer to Note 2, Summary of Significant Accounting Policies, for further information.
Cash and Cash Equivalents and Marketable Securities
The following tables summarize our Cash and cash equivalents and Marketable securities by significant investment categories as of December 30, 2020 and December 25, 2019:
December 30, 2020
Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash EquivalentsMarketable Securities
Cash$146,873 $— $— $146,873 $146,873 $— 
Level 1:
Money market funds— — — — — — 
Mutual funds36,874 13 — 36,887 — 36,887 
Total$183,747 $13 $— $183,760 $146,873 $36,887 
December 25, 2019
Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash EquivalentsMarketable Securities
Cash$32,094 $— $— $32,094 $32,094 $— 
Level 1:
Money market funds5,005 — — 5,005 5,005 — 
Mutual funds36,436 72 36,508 — 36,508 
Total$73,535 $72 $— $73,607 $37,099 $36,508 

A summary of other income from equity securities recognized during fiscal 2020, fiscal 2019 and fiscal 2018 is as follows:
202020192018
Equity securities:
Dividend income$359 $1,244 $1,392 
Interest income— — 9 
Realized gain (loss) on sale of investments79 22 (3)
Unrealized gain (loss) on equity securities(59)194 (61)
Total$379 $1,460 $1,337 
A summary of equity securities sold and gross realized gains and losses recognized during fiscal 2020, fiscal 2019 and fiscal 2018 is as follows:
202020192018
Equity securities:
Gross proceeds from sales and redemptions$20,000 $27,000 $2,144 
Cost basis of sales and redemptions19,921 26,978 2,160 
Gross realized gains included in net income (loss)79 36 2 
Gross realized losses included in net income (loss)— (14)(18)
Amounts reclassified out of accumulated other comprehensive loss— — 16 
Realized gains and losses are determined on a specific identification method and are included in Other income (expense), net on the Consolidated Statements of Income (Loss).
We periodically review our marketable securities for other-than-temporary impairment. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and our intent to sell. As of December 30, 2020 and December 25, 2019, the declines in the market value of our marketable securities investment portfolio are considered to be temporary in nature.
Other Financial Instruments
The carrying value of our financial instruments, including accounts receivable, accounts payable and accrued expenses as of December 30, 2020 and December 25, 2019 approximated their fair value due to the short-term nature of these financial instruments.
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. When the Company evaluates its long-lived assets for impairment, the assessment is performed for the related asset group that represents the lowest level for which identifiable cash flows are independent of the cash flows of other assets. This determination requires judgment, and is dependent on the Company's overall operating strategy. During fiscal 2020, we recognized an impairment charge of $7,644 at two Shacks, as well as our 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 asset impairment charge is 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 impairments recognized during fiscal 2019 and fiscal 2018.
v3.20.4
ACCOUNTS RECEIVABLE
 12 Months Ended
Dec. 30, 2020
Receivables [Abstract]  
ACCOUNTS RECEIVABLE ACCOUNTS RECEIVABLE
The components of accounts receivable as of December 30, 2020 and December 25, 2019 are as follows:
December 30
2020		December 25
2019
Licensing receivables$2,675 $4,510 
Credit card receivables2,989 3,417 
Delivery receivables2,229 722 
Other receivables1,599 1,321 
Allowance for doubtful accounts(28)— 
Accounts receivable, net$9,464 $9,970 
v3.20.4
INVENTORIES
 12 Months Ended
Dec. 30, 2020
Inventory Disclosure [Abstract]  
INVENTORIES INVENTORIES
Inventories consisted of the following:
December 30
2020		December 25
2019
Food$1,947 $1,738 
Wine75 107 
Beer111 114 
Beverages218 233 
Retail merchandise74 29 
Paper goods463 — 
Inventories$2,888 $2,221 
v3.20.4
PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 30, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
Property and equipment consisted of the following:
December 30
2020		December 25
2019
Leasehold improvements$342,724 $302,204 
Equipment60,064 54,404 
Furniture and fixtures20,178 18,082 
Computer equipment and software30,477 24,226 
Financing equipment lease right-of-use assets9,622 7,442 
Construction in progress39,632 30,290 
Property and equipment, gross502,697 436,648 
Less: accumulated depreciation(166,156)(121,786)
Property and equipment, net$336,541 $314,862 
Depreciation expense was $48,801, $40,392 and $29,000 for fiscal 2020, fiscal 2019 and fiscal 2018, respectively.
v3.20.4
SUPPLEMENTAL BALANCE SHEET INFORMATION
 12 Months Ended
Dec. 30, 2020
Supplemental Balance Sheet Disclosures [Abstract]  
SUPPLEMENTAL BALANCE SHEET INFORMATION SUPPLEMENTAL BALANCE SHEET INFORMATION
The components of other current liabilities as of December 30, 2020 and December 25, 2019 are as follows:
December 30
2020		December 25
2019
Sales tax payable$4,285 $4,086 
Current portion of liabilities under tax receivable agreement— 7,777 
Gift card liability2,637 2,258 
Current portion of financing equipment lease liabilities1,998 1,873 
Other5,280 3,505 
Other current liabilities$14,200 $19,499 
The components of other long-term liabilities as of December 30, 2020 and December 25, 2019 are as follows:
December 30
2020		December 25
2019
Deferred licensing revenue$12,151 $11,310 
Long-term portion of financing equipment lease liabilities3,586 3,643 
Other(1)
8,723 375 
Other long-term liabilities$24,460 $15,328 
(1) 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. For further information relating to the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), see Note 15, Income Taxes.
v3.20.4
DEBT
 12 Months Ended
Dec. 30, 2020
Debt Disclosure [Abstract]  
DEBT DEBT
Revolving Credit Facility
In August 2019, we terminated our previous revolving credit facility and entered into a new 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 will mature and all amounts outstanding will be due and payable in August 2024. The Revolving Credit Facility also permits the issuance of letters of credit upon our request of up to $15,000. Borrowings under the Revolving Credit Facility will bear interest at either: (i) LIBOR plus a percentage ranging from 1.0% to 1.5% or (ii) the base rate plus a percentage ranging from 0.0% to 0.5%, in each case depending on our net lease adjusted leverage ratio. To the extent the LIBOR reference rate is no longer available, the administrative agent, in consultation with us, will determine a replacement rate which will be generally in accordance with similar transactions in which it serves as administrative agent. 
The obligations under the Revolving Credit Facility are secured by a first-priority security interest in substantially all of the assets of SSE Holdings and the guarantors. The obligations under the Revolving Credit Facility are guaranteed by each of SSE Holdings' direct and indirect subsidiaries (with certain exceptions).
The Revolving Credit Facility requires us to comply with maximum net lease adjusted leverage and minimum fixed charge coverage ratios. We are not subject to these coverage ratios for a period of time due to the First Amendment to the Revolving Credit Facility described below. In addition, the Revolving Credit Facility contains other customary affirmative and negative covenants, including those which (subject to certain exceptions and dollar thresholds) limit our 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; engage in transactions with affiliates; and prohibits us, with certain exceptions, from engaging in any line of business not related to our current line of business. As of December 30, 2020 we were in compliance with all covenants.

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 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. As of December 30, 2020 and December 25, 2019, no amounts were outstanding under the revolving credit facility.

Total interest costs incurred were $815, $434 and $2,572 in fiscal 2020, fiscal 2019 and fiscal 2018, respectively. Amounts capitalized into property and equipment were $157 during fiscal 2018. No amounts were capitalized into property and equipment during fiscal 2020 and fiscal 2019, respectively.
Paycheck Protection Program
In April 2020, we entered into a $10,000 note payable with J.P. Morgan pursuant to the Paycheck Protection Program (“PPP Loan”) under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") and returned the entire outstanding balance plus interest in April 2020.
v3.20.4
LEASES
 12 Months Ended
Dec. 30, 2020
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 2037. 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 ("ASC 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 any 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 used 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 as 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, 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 finance and operating lease right-of-use assets and liabilities as of December 30, 2020 and December 25, 2019 is as follows:
ClassificationDecember 30, 2020December 25, 2019
Finance leasesProperty and equipment, net$5,409 $5,444 
Operating leasesOperating lease assets306,317 274,426 
Total right-of-use assets$311,726 $279,870 
Finance leases:
Other current liabilities$1,998 $1,873 
Other long-term liabilities3,586 3,643 
Operating leases:
Operating lease liabilities, current35,657 30,002 
Long-term operating lease liabilities343,736 304,914 
Total lease liabilities$384,977 $340,432 
The components of lease expense for fiscal 2020 and fiscal 2019 are as follows:
ClassificationDecember 30
2020		December 25
2019
Finance lease cost:
Amortization of right-of-use assetsDepreciation expense$2,257 $1,998 
Interest on lease liabilitiesInterest expense213 193 
Operating lease cost
Occupancy and related expenses
Pre-opening costs
General and administrative expenses
44,910 40,068 
Short-term lease costOccupancy and related expenses494 394 
Variable lease costOccupancy and related expenses
Other operating expenses
Pre-opening costs
General and administrative expenses		13,766 16,060 
Total lease cost$61,640 $58,713 
As of December 30, 2020, future minimum lease payments for finance and operating leases consisted of the following:
Finance LeasesOperating Leases
2021$2,169 $45,961 
20221,633 53,114 
20231,078 55,055 
2024584 54,404 
2025347 53,042 
Thereafter172 234,731 
Total minimum payments5,983 496,307 
Less: imputed interest399 116,914 
Total lease liabilities$5,584 $379,393 
As of December 30, 2020 we had additional operating lease commitments of $36,788 for non-cancelable leases without a possession date, which will begin to commence in fiscal 2021. These lease commitments are consistent with the leases that we have executed thus far.
A summary of lease terms and discount rates for finance and operating leases as of December 30, 2020 and December 25, 2019 is as follows:
December 30
2020		December 25
2019
Weighted-average remaining lease term (years):
Finance leases5.25.1
Operating leases9.710.1
Weighted-average discount rate:
Finance leases3.6 %3.7 %
Operating leases4.2 %5.4 %
Supplemental cash flow information related to leases as of December 30, 2020 and December 25, 2019 is as follows:
December 30
2020		December 25
2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$213 $193 
Operating cash flows from operating leases42,144 37,468 
Financing cash flows from finance leases2,206 1,926 
Right-of-use assets obtained in exchange for lease obligations:
Finance leases2,298 2,831 
Operating leases59,969 65,556 
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 2037. 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 ("ASC 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 any 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 used 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 as 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, 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 finance and operating lease right-of-use assets and liabilities as of December 30, 2020 and December 25, 2019 is as follows:
ClassificationDecember 30, 2020December 25, 2019
Finance leasesProperty and equipment, net$5,409 $5,444 
Operating leasesOperating lease assets306,317 274,426 
Total right-of-use assets$311,726 $279,870 
Finance leases:
Other current liabilities$1,998 $1,873 
Other long-term liabilities3,586 3,643 
Operating leases:
Operating lease liabilities, current35,657 30,002 
Long-term operating lease liabilities343,736 304,914 
Total lease liabilities$384,977 $340,432 
The components of lease expense for fiscal 2020 and fiscal 2019 are as follows:
ClassificationDecember 30
2020		December 25
2019
Finance lease cost:
Amortization of right-of-use assetsDepreciation expense$2,257 $1,998 
Interest on lease liabilitiesInterest expense213 193 
Operating lease cost
Occupancy and related expenses
Pre-opening costs
General and administrative expenses
44,910 40,068 
Short-term lease costOccupancy and related expenses494 394 
Variable lease costOccupancy and related expenses
Other operating expenses
Pre-opening costs
General and administrative expenses		13,766 16,060 
Total lease cost$61,640 $58,713 
As of December 30, 2020, future minimum lease payments for finance and operating leases consisted of the following:
Finance LeasesOperating Leases
2021$2,169 $45,961 
20221,633 53,114 
20231,078 55,055 
2024584 54,404 
2025347 53,042 
Thereafter172 234,731 
Total minimum payments5,983 496,307 
Less: imputed interest399 116,914 
Total lease liabilities$5,584 $379,393 
As of December 30, 2020 we had additional operating lease commitments of $36,788 for non-cancelable leases without a possession date, which will begin to commence in fiscal 2021. These lease commitments are consistent with the leases that we have executed thus far.
A summary of lease terms and discount rates for finance and operating leases as of December 30, 2020 and December 25, 2019 is as follows:
December 30
2020		December 25
2019
Weighted-average remaining lease term (years):
Finance leases5.25.1
Operating leases9.710.1
Weighted-average discount rate:
Finance leases3.6 %3.7 %
Operating leases4.2 %5.4 %
Supplemental cash flow information related to leases as of December 30, 2020 and December 25, 2019 is as follows:
December 30
2020		December 25
2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$213 $193 
Operating cash flows from operating leases42,144 37,468 
Financing cash flows from finance leases2,206 1,926 
Right-of-use assets obtained in exchange for lease obligations:
Finance leases2,298 2,831 
Operating leases59,969 65,556 
v3.20.4
EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 30, 2020
Compensation Related Costs [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANSDefined Contribution PlanOur employees are eligible to participate in a defined contribution savings plan maintained by Shake Shack. The plan is funded by employee 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 $895, $772 and $509 for fiscal 2020, fiscal 2019 and fiscal 2018, respectively.
v3.20.4
STOCKHOLDER'S EQUITY
 12 Months Ended
Dec. 30, 2020
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 2020, fiscal 2019 and fiscal 2018:
202020192018
Redemption and acquisition of LLC Interests
Number of LLC Interests redeemed by non-controlling interest holders194,009 1,721,887 2,692,660 
Number of LLC Interests acquired in connection with the Gramercy Tavern Merger— 2,690,263 — 
Number of LLC Interests received by Shake Shack Inc.194,009 4,412,150 2,692,660 
Issuance of Class A common stock
Shares of Class A common stock issued in connection with redemptions of LLC Interests194,009 1,721,887 2,692,660 
Shares of Class A common stock issued in connection with the Gramercy Tavern Merger— 2,690,263 — 
Cancellation of Class B common stock
Shares of Class B common stock surrendered and cancelled194,009 1,721,887 2,692,660 
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 456,942, 484,319 and 300,696 LLC Interests in connection with the activity under our stock compensation plan during fiscal 2020, fiscal 2019 and fiscal 2018, 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 30, 2020, essentially all of the net assets of SSE Holdings were restricted. See Note 9, Debt, for more information regarding the covenants and restrictions set forth in the Revolving Credit Facility.
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, 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.
v3.20.4
NON-CONTROLLING INTERESTS
 12 Months Ended
Dec. 30, 2020
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 our 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 30, 2020 and December 25, 2019:
20202019
LLC InterestsOwnership %LLC InterestsOwnership %
Number of LLC Interests held by Shake Shack Inc.38,717,790 92.9 %34,417,302 91.6 %
Number of LLC Interests held by non-controlling interest holders2,951,188 7.1 %3,145,197 8.4 %
Total LLC Interests outstanding41,668,978 100.0 %37,562,499 100.0 %
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 2020 and fiscal 2019 was 7.7% and 15.9%, respectively.
The following table summarizes the effects of changes in ownership in SSE Holdings on our equity during fiscal 2020, fiscal 2019 and fiscal 2018.
202020192018
Net income (loss) attributable to Shake Shack Inc.$(42,158)$19,827 $15,179 
Other comprehensive income (loss):
Unrealized holding gains on equity securities— — 10 
Unrealized gain on foreign currency translation adjustment1 2 — 
Transfers (to) from non-controlling interests:
Increase in additional paid-in capital as a result of the redemption of LLC Interests1,723 11,934 15,202 
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 effect5,909 4,517 2,509 
Increase in additional paid-in-capital as a result of the issuance of Class A common stock sold in equity offerings135,718 — — 
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.$101,193 $55,498 $32,900 
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%.
During fiscal 2019, an aggregate of 4,412,150 LLC Interests were redeemed by the non-controlling interest holders for newly-issued shares of Class A common stock, of which 2,690,263 were received through the Gramercy Tavern Merger as described in Note 12, Stockholders' Equity, and we received 4,412,150 LLC Interests, increasing our total ownership interest in SSE Holdings to 91.6%.
We received an aggregate of 456,942 and 484,319 LLC Interests in connection with the activity under our stock compensation plans during fiscal 2020 and fiscal 2019, respectively.
v3.20.4
EQUITY-BASED COMPENSATION
 12 Months Ended
Dec. 30, 2020
Share-based Payment Arrangement [Abstract]  
EQUITY-BASED COMPENSATION EQUITY-BASED COMPENSATION
A summary of equity-based compensation expense recognized during fiscal 2020, fiscal 2019 and fiscal 2018 is as follows:
202020192018
Stock options$322 $2,626 $3,039 
Performance stock units1,309 3,035 2,449 
Restricted stock units3,929 1,844 655 
Equity-based compensation expense$5,560 $7,505 $6,143 
Total income tax benefit recognized related to equity-based compensation$204 $188 $172 
Equity-based compensation expense is allocated to General and administrative expenses and Labor and related expenses on the Consolidated Statements of Income (Loss) during fiscal 2020, fiscal 2019 and fiscal 2018 as follows:
202020192018
General and administrative expenses$5,039 $7,189 $5,991 
Labor and related expenses521 316 152 
Equity-based compensation expense$5,560 $7,505 $6,143 
We capitalized $40, $195 and $107 of equity-based compensation expense associated with the construction cost of our Shacks and our enterprise-wide system upgrade, Project Concrete, during fiscal 2020, fiscal 2019 and fiscal 2018, 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 employees, 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:
202020192018
Expected term (years)(1)
7.57.57.5
Expected volatility(2)
42.3 %42.2 %42.5 %
Risk-free interest rate(3)
0.7 %2.4 %2.8 %
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 years 2020 is as follows:
Stock
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic ValueWeighted Average Remaining Contractual Life (Years)
Outstanding as of December 25, 2019890,267 $21.44 
Granted6,170 35.89 
Exercised(405,688)21.20 
Forfeited(1,725)(21.00)
Outstanding as of December 30, 2020489,024 $21.83 $30,824 4.2
Options vested and exercisable as of December 30, 2020474,744 $21.25 $30,199 4.1
Options expected to vest as of December 30, 202014,280 $41.09 $625 8.2
As of December 30, 2020, total unrecognized compensation expense related to unvested stock options was $223, which is expected to be recognized over a weighted-average period of 3.2 years. The weighted-average grant date fair value of options granted during fiscal 2020, fiscal 2019 and fiscal 2018 was $16.21, $26.42, $19.86, respectively. The total intrinsic value of stock options exercised during fiscal 2020, fiscal 2019 and fiscal 2018 was $25,824, $16,905 and $5,786, respectively. Cash received from stock option exercises was $8,224 and the cash tax benefit realized for the tax deductions from these option exercises was $229 for fiscal 2020. The total fair value of stock options vested during fiscal 2020, fiscal 2019 and fiscal 2018 was $2,674, $2,950 and $3,483, respectively.
The total fair value of stock options vested during fiscal 2020, fiscal 2019 and fiscal 2018 was $2,674, $2,950 and $3,483, respectively.
The following table summarizes information about stock options outstanding and exercisable as December 30, 2020:
Options OutstandingOptions Exercisable
Number Outstanding at December 30, 2020Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise PriceNumber Exercisable at December 30, 2020Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise Price
Exercise Price
$21.00466,225 4.1$21.00 466,225 4.1$21.00 
$34.627,411 5.4$34.62 7,411 5.4$34.62 
$36.411,108 5.9$36.41 1,108 5.9$36.41 
$38.912,060 6.4$38.91 — — $— 
$39.913,022 7.2$39.91 — — $— 
$54.363,028 8.2$54.36 — — $— 
$35.896,170 9.2$35.89 — — $— 
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 2020, the amount of awards that can be earned ranges from 0% to 125% of the number of performance stock units granted, based on the achievement of approved financial goals over a one-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. 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 a graded-vesting attribution method over the vesting period based on the most probable outcome of the performance conditions.
A summary of unvested performance stock unit activity for fiscal year 2020, is as follows:
Performance
Stock
Units
Weighted
Average
Grant Date Fair Value
Outstanding as of December 25, 2019117,517 $51.97 
Granted79,388 57.20 
Performance achievement(1)
7,792 52.47 
Vested(50,242)49.34 
Forfeited(17,234)54.45 
Outstanding as of December 30, 2020137,221 $55.67 
(1)    Represents the incremental awards earned and/or awards forfeited based on the achievement of performance conditions.

As of December 30, 2020, there were 137,221 performance stock units outstanding, of which none were vested. The weighted average grant date fair value of share awards granted during fiscal 2020, fiscal 2019 and fiscal 2018 were $57.20, $52.47, and $58.46, respectively. The total fair value of awards that vested during fiscal 2020, fiscal 2019 and fiscal 2018 was $2,730, $3,456 and $2,310, respectively. As of December 30, 2020, total unrecognized compensation expense related to unvested performance stock units was $966, which is expected to be recognized over a weighted-average period of 1.9 years.
Restricted Stock Units
Under the 2015 Plan, we may grant restricted stock units to employees, 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 unvested restricted stock unit activity for fiscal year 2020 is as follows:
Restricted
Stock
Units
Weighted
Average
Grant Date Fair Value
Outstanding as of December 25, 2019152,098 $49.87 
Granted170,528 57.41 
Vested(41,974)50.66 
Forfeited(22,159)54.46 
Outstanding as of December 30, 2020258,493 $54.33 
As of December 30, 2020, there were 258,493 restricted stock units outstanding, of which none were vested. The weighted average grant date fair value of share awards granted during fiscal 2020, fiscal 2019 and fiscal 2018 were $57.41, $52.51, and $49.12, respectively. The total fair value of shares vested during fiscal 2020, fiscal 2019 and fiscal 2018 was $2,463, $947 and $867, respectively. As of December 30, 2020, total unrecognized compensation expense related to unvested restricted stock units was $10,654, which is expected to be recognized over a weighted-average period of 2.8 years.
v3.20.4
INCOME TAXES
 12 Months Ended
Dec. 30, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
We are the sole managing member of SSE Holdings, and as a result, consolidate the financial results of SSE Holdings. SSE Holdings is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, SSE Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by SSE Holdings is passed through to and included in the taxable income or loss of its members, including us, on a pro rata basis. We are subject to U.S. federal income taxes, in addition to state and local income taxes with respect to our allocable share of any taxable income or loss of SSE Holdings, as well as any stand-alone income or loss generated by Shake Shack Inc. We are also subject to withholding taxes in foreign jurisdictions.
Income Tax Expense
The components of income (loss) before income taxes are follows:
202020192018
Domestic$(59,873)$11,797 $21,595 
Foreign14,396 15,717 9,215 
Income (loss) before income taxes $(45,477)$27,514 $30,810 
The components of income tax expense are as follows:
202020192018
Current income taxes:
Federal$— $2,984 $5,281 
State and local190 4,283 858 
Foreign1,223 2,183 1,935 
Total current income taxes1,413 9,450 8,074 
Deferred income taxes:
Federal(12,638)(5,643)(210)
State and local11,282 (421)998 
Total deferred income taxes(1,356)(6,064)788 
Income tax expense$57 $3,386 $8,862 
Reconciliations of income tax expense computed at the U.S. federal statutory income tax rate to the recognized income tax expense and the U.S. statutory income tax rate to our effective tax rates are as follows:
202020192018
Expected U.S. federal income taxes at statutory rate$(9,550)21.0 %$5,778 21.0 %$6,470 21.0 %
State and local income taxes, net of federal benefit5,776 (12.7)%3,924 14.2 %797 2.6 %
Foreign withholding taxes1,223 (2.7)%2,183 7.9 %1,935 6.3 %
Tax credits(1,533)3.4 %(3,007)(10.9)%(2,151)(7.0)%
Non-controlling interest537 (1.2)%(1,405)(5.1)%(1,908)(6.2)%
Remeasurement of deferred tax assets in connection with other tax rate changes5,433 (11.9)%208 0.8 %3,794 12.3 %
Change in valuation allowance(2,264)5.0 %(4,669)(17.0)%— — %
Other435 (1.0)%374 1.4 %(75)(0.2)%
Income tax expense$57 (0.1)%$3,386 12.3 %$8,862 28.8 %

Our effective income tax rates for fiscal 2020, fiscal 2019 and fiscal 2018 were (0.1)%, 12.3% and 28.8%, respectively. 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 credits and an increase in valuation allowance. The decrease in our effective income tax rate from fiscal 2018 to fiscal 2019 was primarily due to higher tax credits, an increase in windfall benefits from equity-based compensation and a decrease in valuation allowance, partially offset by an increase in our ownership of SSE Holdings, which increases our share of taxable income of SSE Holdings.
Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities are as follows:
December 30
2020		December 25
2019
Deferred tax assets:
Investment in partnership$139,379 $179,363 
Tax Receivable Agreement63,853 65,679 
Operating lease liability3,470 4,768 
Financing lease liability51 78 
Deferred revenue141 199 
Equity-based compensation331 347 
Net operating loss carryforwards75,522 26,058 
Tax credits9,610 8,419 
Other assets457 398 
Total gross deferred tax assets292,814 285,309 
Valuation allowance(2,656)(954)
Total deferred tax assets, net of valuation allowance290,158 284,355 
Deferred tax liabilities:
Property and equipment(300)(585)
Operating lease right-of-use asset (2,802)(3,876)
Financing lease right-of-use asset (49)(77)
Total gross deferred tax liabilities(3,151)(4,538)
Net deferred tax assets$287,007 $279,817 
As of December 30, 2020, our federal and state net operating loss carryforwards for income tax purposes were $313,940 and $183,829. If not utilized, $262,073 of our federal net operating losses can be carried forward indefinitely, and the remainder will begin to expire in 2035. If not utilized $40,695 of our state net operating loss carryforwards can be carried forward indefinitely, and the remainder will begin to expire in 2023. As of December 30, 2020, we had federal tax credit carryforwards of $9,002 which will begin to expire in 2025 and state tax credits of $608 which have an indefinite carryforward period.
As described in Note 12, Stockholders' Equity, we acquired an aggregate of 650,951 LLC Interests during fiscal 2020 through redemptions of LLC Interests and activity under stock-based compensation plans. We recognized a deferred tax asset in the amount of $8,609 associated with the basis difference in our investment in SSE Holdings upon acquiring these LLC Interests. As of December 30, 2020, the total deferred tax asset related to the basis difference in our investment in SSE Holdings was $139,379. 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 2020, the total valuation allowance established against this deferred tax asset to which it relates was $77.
During fiscal 2020, we also recognized $1,106 of deferred tax assets, and other loss of $1,147, 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. See "—Tax Receivable Agreement" for more 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 30, 2020, 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 $2,579 was recognized. The net change in valuation allowance for fiscal 2020 was an increase of $1,625.
Uncertain Tax Positions
There were no reserves for uncertain tax positions as of December 30, 2020 and December 25, 2019. 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 2016 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 2020, we acquired an aggregate of 194,009 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 $4,024 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 2020 payments of $6,643, inclusive of interest, were made to the members of SSE Holdings pursuant to the Tax Receivable Agreement. Payments of $707 were made to members of SSE Holdings pursuant to the Tax Receivable Agreement during fiscal 2019. As of December 30, 2020, the total amount of TRA Payments due under the Tax Receivable Agreement was $232,954, of which no amount was included in Other current liabilities on the Consolidated Balance Sheet. See Note 18, Commitments and Contingencies, for more information relating to our liabilities under the Tax Receivable Agreement.
v3.20.4
EARNINGS PER SHARE
 12 Months Ended
Dec. 30, 2020
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Shake Shack Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Shake Shack Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings (loss) per share of Class A common stock for fiscal 2020, fiscal 2019 and fiscal 2018.
202020192018
Numerator:
Net income (loss)$(45,534)$24,128 $21,948 
Less: net income (loss) attributable to non-controlling interests(3,376)4,301 6,769 
Net income (loss) attributable to Shake Shack Inc.$(42,158)$19,827 $15,179 
Denominator:
Weighted-average shares of Class A common stock outstanding—basic37,129 31,381 28,299 
Effect of dilutive securities:
Stock options— 743 798 
Performance stock units— 70 63 
Restricted stock units— 57 19 
Weighted-average shares of Class A common stock outstanding—diluted37,129 32,251 29,179 
Earnings (loss) per share of Class A common stock—basic$(1.14)$0.63 $0.54 
Earnings (loss) per share of Class A common stock—diluted$(1.14)$0.61 $0.52 
Shares of our 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.
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 2020, fiscal 2019 and fiscal 2018.
202020192018
Stock options489,024 (1)946 (2)— 
Performance stock units137,221 (1)51,197 (3)21,560 (3)
Restricted stock units258,493 (1)— — 
Shares of Class B common stock2,951,188 (4)3,145,197 (4)7,557,347 (4)
(1)    Represents number of instruments 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 (loss) per share of Class A common stock because the exercise price of the stock options exceeded the average market price of our Class A common stock during the period ("out-of-the-money").
(3)    Weighted-average number of securities excluded from the computation of diluted earnings (loss) per share of Class A common stock because the performance conditions associated with these awards were not met for a portion of the fiscal year.
(4)    Shares of our Class B common stock outstanding as of the end of the period are considered potentially dilutive shares of Class A common stock. Amounts have been excluded from the computations of diluted earnings (loss) per share of Class A common stock because the effect would have been anti-dilutive under the if-converted and two-class methods.
v3.20.4
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 30, 2020
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 2037. 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. See Note 10, Leases.
As security under the terms of one of our leases, we are obligated under a letter of credit totaling $130 as of December 30, 2020, 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 2021 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
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 employees who elected to participate in the settlement for $1,200. As of December 30, 2020, an accrual in the amount of $1,180 was recorded for this matter and related expenses.
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 30, 2020, the amount of the ultimate liability with respect to these matters was not material.
Liabilities under Tax Receivable Agreement
As described in Note 15, 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 30, 2020, we recognized $232,954 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 2020.
v3.20.4
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 30, 2020
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.
Classification202020192018
Amounts received from HYCLicensing revenue$67 $571 $420 
ClassificationDecember 30
2020		December 25
2019
Amounts due from HYCAccounts receivable$8 $47 
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.
Classification202020192018
Amounts paid to MSP ConservancyOccupancy and related expenses$846 $964 $877 
ClassificationDecember 30
2020		December 25
2019
Amounts due to MSP ConservancyAccrued expenses$— $53 
Share Our Strength
The Chairman of our Board of Directors serves as a director of Share Our Strength, for which Shake Shack has held the "Great American Shake Sale" to raise money and awareness for childhood hunger. During the Great American Shake Sale, we encourage guests to donate money to Share Our Strength's No Kid Hungry campaign in exchange for a coupon for a free shake. All of the guest donations we collect go directly to Share Our Strength. No amounts were due to Share Our Strength as of both December 30, 2020 and December 25, 2019.
Classification202020192018
Amounts raised through donations—$— $190 $343 
Costs incurred for free shakes redeemedGeneral and administrative expenses$— $30 $53 
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. No amounts were due to Olo as of both December 30, 2020 and December 25, 2019.
Classification202020192018
Amounts paid to OloOther operating expenses$242 $170 $111 
Square, Inc.
Our Chief Executive Officer is a member of the Board of Directors of Square, Inc. ("Square"). 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. No amounts were due to Square as of both December 30, 2020 and December 25, 2019.
Classification202020192018
Amounts paid to SquareOther operating expenses$1,697 $1,692 $445 
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 30, 2020 and December 25, 2019.
Tax Receivable Agreement
As described in Note 15, 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.
Classification202020192018
Amounts paid to members (inclusive of interest)Other current liabilities$6,643 $707 $— 
ClassificationDecember 30
2020		December 25
2019
Amounts due under the Tax Receivable AgreementOther current liabilities
Liabilities under Tax Receivable Agreement, net of current portion		$232,954 $234,426 
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 30, 2020 and December 25, 2019.
Classification202020192018
Amounts paid to non-controlling interest holdersNon-controlling interests$478 $1,708 $751 
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. See Note 12 for more information.
v3.20.4
GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 30, 2020
Segment Reporting [Abstract]  
GEOGRAPHIC INFORMATION GEOGRAPHIC INFORMATION
Revenue by geographic area for fiscal 2020, fiscal 2019 and fiscal 2018 is as follows:
202020192018
United States$508,292 $578,702 $447,575 
Other countries14,575 15,817 11,735 
Total revenue$522,867 $594,519 $459,310 
Revenues are shown based on the geographic location of our customers and licensees. Our long-lived assets are primarily located in the United States.
v3.20.4
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 30, 2020
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 30
2020		December 25
2019
ASSETS
Current assets:
Cash$9,469 $9,223 
Accounts receivable— 1 
Prepaid expenses45 206 
Total current assets9,514 9,430 
Due from SSE Holdings2,103 7,124 
Deferred income taxes, net285,577 279,012 
Investment in subsidiaries356,497 247,372 
TOTAL ASSETS$653,691 $542,938 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable3 1 
Accrued expenses125 44 
Due to SSE Holdings13,288 9,652 
Current portion of liabilities under tax receivable agreement— 7,777 
Total current liabilities13,416 17,474 
Liabilities under tax receivable agreement, net of current portion232,954 226,649 
Total liabilities246,370 244,123 
Commitments and contingencies
Stockholders' equity:
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 30, 2020 and December 25, 2019, respectively.— — 
Class A common stock, $0.001 par value—200,000,000 shares authorized; 38,717,790 and 34,417,302 shares issued and outstanding as of December 30, 2020 and December 25, 2019, respectively.39 35 
Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,951,188 and 3,145,197 shares issued and outstanding as of December 30, 2020 and December 25, 2019, respectively.3 3 
Additional paid-in capital395,067 244,410 
Retained earnings12,209 54,367 
Accumulated other comprehensive loss3 — 
Total stockholders' equity407,321 298,815 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$653,691 $542,938 
See accompanying Notes to Condensed Financial Statements.
SHAKE SHACK INC.
CONDENSED STATEMENTS OF INCOME (LOSS)
(PARENT COMPANY ONLY)
(in thousands)
Fiscal Year Ended
December 30
2020		December 25
2019		December 26
2018
Intercompany revenue$1,560 $2,018 $2,055 
TOTAL REVENUE1,560 2,018 2,055 
General and administrative expenses2,179 1,683 1,933 
TOTAL EXPENSES2,179 1,683 1,933 
OPERATING INCOME (LOSS)(619)335 122 
Equity in net income (loss) of subsidiaries(41,152)19,831 21,537 
Other income (loss)(1,147)808 78 
Interest expense— (150)(14)
INCOME (LOSS) BEFORE INCOME TAXES(42,918)20,824 21,723 
Income tax expense (benefit)(760)997 6,544 
NET INCOME (LOSS)$(42,158)$19,827 $15,179 
See accompanying Notes to Condensed Financial Statements.
SHAKE SHACK INC.
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(PARENT COMPANY ONLY)
(in thousands)
Fiscal Year Ended
December 30
2020		December 25
2019		December 26
2018
Net income (loss)$(42,158)$19,827 $15,179 
Other comprehensive income, net of tax(1):
Change in foreign currency translation adjustment1 — — 
Equity securities:
Change in net unrealized holding losses
— — (3)
Less: reclassification adjustments for net realized losses included in net income— — 13 
Net change
1 — 10 
OTHER COMPREHENSIVE INCOME1 — 10 
COMPREHENSIVE INCOME (LOSS)$(42,157)$19,827 $15,189 
(1) Net of tax benefit of $0 for fiscal years ended December 30, 2020, December 25, 2019 and December 26, 2018.
See accompanying Notes to Condensed Financial Statements.
SHAKE SHACK INC.
CONDENSED STATEMENTS OF CASH FLOWS
(PARENT COMPANY ONLY)
(in thousands)
Fiscal Year Ended
December 30
2020		December 25
2019		December 26
2018
OPERATING ACTIVITIES
Net income (loss)$(42,158)$19,827 $15,179 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in net income of subsidiaries41,152 (19,831)(21,537)
Equity-based compensation555 279 252 
Deferred income taxes(721)(5,317)777 
Non-cash interest expense— 151 — 
Other non-cash income1,147 (808)(78)
Changes in operating assets and liabilities:
Accounts receivable1 (1)— 
Prepaid expenses and other current assets161 (71)— 
Due to/from SSE Holdings(1,254)(5,190)(7,103)
Accounts payable2 1 — 
Accrued expenses(29)6,003 5,669 
Other current liabilities— — 14 
NET CASH USED IN OPERATING ACTIVITIES(1,144)(4,957)(6,827)
INVESTING ACTIVITIES
Purchases of LLC Interests from SSE Holdings(171,180)(29,481)(11,142)
Return of investment in SSE Holdings— — 2,053 
NET CASH USED IN INVESTING ACTIVITIES(171,180)(29,481)(9,089)
FINANCING ACTIVITIES
Proceeds from issuance of Class A common stock sold in equity offerings, net of underwriting discounts, commissions and offering costs144,861 — — 
Proceeds from issuance of Class A common stock to SSE Holdings upon settlement of equity awards26,319 29,481 11,142 
Proceeds from stock option exercises
8,033 9,201 5,472 
Payments under tax receivable agreement(6,643)(707)— 
NET CASH PROVIDED BY FINANCING ACTIVITIES172,570 37,975 16,614 
INCREASE IN CASH246 3,537 698 
CASH AT BEGINNING OF PERIOD9,223 5,686 4,988 
CASH AT END OF PERIOD$9,469 $9,223 $5,686 

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. See Note 9, Debt, to the Company's consolidated financial statements.
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 consolidated financial statements. Intercompany receivables of $2,103 and $7,124 were eliminated in consolidation as of December 30, 2020 and December 25, 2019, respectively. Intercompany payables of $13,288 and $9,652 were eliminated in consolidation as of December 30, 2020 and December 25, 2019, respectively.
For fiscal 2020, $1,560 and $41,152 of intercompany revenue and equity in net loss of subsidiaries, respectively, was eliminated in consolidation. For fiscal 2019, $2,018 and $19,831 of intercompany revenue and equity in net income of subsidiaries, respectively, was eliminated in consolidation. Related party amounts that were not eliminated in the consolidated financial statements include the Parent Company's liabilities under the tax receivable agreement, which totaled $232,954 and $234,426 as of December 30, 2020 and December 25, 2019, respectively.
NOTE 3: 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. See Note 15, Income Taxes, to the consolidated financial statements for more information regarding the Parent Company's Tax Receivable Agreement. As described in Note 18, Commitments and Contingencies, to the 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 30, 2020 and December 25, 2019, liabilities under the tax receivable agreement totaled $232,954 and $234,426, respectively.
NOTE 4: SUPPLEMENTAL CASH FLOW INFORMATION
The following table sets forth supplemental cash flow information for fiscal 2020, fiscal 2019 and fiscal 2018:
202020192018
Cash paid for:
Income taxes$124 $233 $185 
Non-cash investing activities:
Accrued contribution related to stock option exercises8,094 9,227 5,472 
Class A common stock issued in connection with the acquisition of LLC Interests upon redemption by the non-controlling interest holders1,723 11,934 15,202 
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 Holdings5,193 4,402 5,999 
Non-cash financing activities:
Cancellation of Class B common stock in connection with the redemption of LLC Interests— (2)(2)
Cancellation of Class B common stock in connection with the GTC merger— (3)— 
Establishment of liabilities under tax receivable agreement4,024 32,065 44,338 
v3.20.4
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS
 12 Months Ended
Dec. 30, 2020
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 26, 2018$10,114 $782 $— $(3,971)$6,925 
Fiscal year ended December 25, 2019$6,925 $(4,654)$— $(1,317)$954 
Fiscal year ended December 30, 2020$954 $(2,610)$4,312 (1)$— $2,656 
(1)    Amount relates to a valuation allowance established on deferred tax assets related to our investment in SSE Holdings.
v3.20.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 30, 2020
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 our accounts and the accounts of our 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 considered 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 30, 2020 and December 25, 2019, the net assets of SSE Holdings were $383,669 and $270,542, respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreements. See Note 9, Debt, for more information.
Fiscal Year
Fiscal Year
We operate on a 52/53 week fiscal year ending on the last Wednesday in December. Fiscal year 2020 contained 53 weeks and ended on December 30, 2020 ("fiscal 2020"). Fiscal years 2019 and 2018 each contained 52 weeks and ended on December 25, 2019 ("fiscal 2019") and December 26, 2018 ("fiscal 2018"), respectively. 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. Significant estimates inherent in the preparation of the consolidated financial statements include useful lives and impairments of long-lived tangible and intangible assets, accounting for income taxes and related uncertain tax positions, the valuation of equity-based compensation and awards, and reserves for litigation and other contingencies, amongst others. Actual results could differ from those estimates.
Segment Reporting
Segment Reporting
We own and operate Shacks in the United States. We also have domestic and international licensed operations. Our chief operating decision makers (the "CODMs") are our Chief Executive Officer and our President and Chief Financial Officer. As the CODMs review financial performance and allocate resources at a consolidated level on a recurring basis, we have one operating segment and one reportable segment.
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. The three levels of the hierarchy are defined as follows:
▪Level 1 — Unadjusted 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, 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. In fiscal 2019, cash equivalents consist primarily of money market funds.
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, 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 Accounts Receivable, NetAccounts receivable consist primarily of receivables from our licensees for licensing revenue and related reimbursements, credit card receivables and vendor rebates. We evaluate the collectibility of our 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 amount of an asset may not be recoverable. Recoverability of an asset is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount 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 to 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, transferable liquor licenses, certain custom furniture pre-ordered for future Shacks and yet to be placed in service and security deposits.
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 are expensed over the renewal term. As of both December 30, 2020 and December 25, 2019, indefinite-lived intangible assets relating to transferable liquor licenses totaled $1,437. We evaluate our indefinite-lived intangible assets for impairment annually during our fiscal fourth quarter, and whenever events or changes in circumstances indicate that an impairment may exist. When evaluating intangible assets for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that an intangible asset group is impaired. If we do not perform the qualitative assessment, or if we determine that it is not more likely than not that the fair value of the intangible asset group exceeds its carrying amount, we calculate the estimated fair value of the intangible asset group. If the carrying amount 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 those 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 within General and administrative expenses and Labor and related expenses on the Consolidated Statements of Income (Loss).
Leases
Leases
On December 27, 2018 we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), using a modified retrospective approach. Refer to Note 10, Leases, for further details.
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 2037. 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. Once a Shack opens, we record the straight-line lease expense and any contingent rent, if applicable, in Occupancy and related expenses on the Consolidated Statements of Income. 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 our incremental borrowing rate (“IBR”). There are no explicit rates provided in our leases. The IBR 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. We determined our credit rating based on a comparison of the financial information of SSE Holdings to other public companies and then used their respective credit ratings to develop our own.
For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases, the asset is depreciated 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. 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 as 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, 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 employee 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 amounts 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 operation.
Recently Issued Accounting Pronouncements
Recently Adopted Accounting Pronouncements     
We adopted the Accounting Standards Update ("ASU") summarized below in fiscal 2020.
ASUDescriptionDate
Adopted
Measurement of Credit Losses on Financial Instruments

(ASU 2016-13)
This standard replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.

The adoption of this standard did not have a material impact to our consolidated financial statements.		December 26, 2019
Facilitation of the Effects of Reference Rate Reform on Financial Reporting


(ASU 2020-04)		This standard provides optional guidance for a limited time to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued.

The adoption of this standard did not have a material impact to our consolidated financial statements.		Effective upon issuance (March 12, 2020)
Recently Issued Accounting Pronouncements
v3.20.4
REVENUE (Tables)
 12 Months Ended
Dec. 30, 2020
Revenue from Contract with Customer [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
Revenue recognized during fiscal 2020, fiscal 2019 and fiscal 2018 disaggregated by type is as follows:
202020192018
Shack sales$506,339 $574,625 $445,589 
Licensing revenue:
Sales-based royalties15,773 19,318 13,422 
Initial territory and opening fees755 576 299 
Total revenue$522,867 $594,519 $459,310 
Contract with Customer, Asset and Liability
Opening and closing balances of contract liabilities and receivables from contracts with customers is as follows:
December 30
2020		December 25
2019
Shack sales receivables$5,373 $4,265 
Licensing receivables, net of allowance for doubtful accounts2,647 4,510 
Gift card liability2,637 2,258 
Deferred revenue, current608 511 
Deferred revenue, long-term12,151 11,310 
Revenue recognized during fiscal 2020 and fiscal 2019 that was included in their respective liability balances at the beginning of the period is as follows:
20202019
Gift card liability$537 $524 
Deferred revenue723 536 
v3.20.4
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of Cash and Cash Equivalents
The following tables summarize our Cash and cash equivalents and Marketable securities by significant investment categories as of December 30, 2020 and December 25, 2019:
December 30, 2020
Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash EquivalentsMarketable Securities
Cash$146,873 $— $— $146,873 $146,873 $— 
Level 1:
Money market funds— — — — — — 
Mutual funds36,874 13 — 36,887 — 36,887 
Total$183,747 $13 $— $183,760 $146,873 $36,887 
December 25, 2019
Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash EquivalentsMarketable Securities
Cash$32,094 $— $— $32,094 $32,094 $— 
Level 1:
Money market funds5,005 — — 5,005 5,005 — 
Mutual funds36,436 72 36,508 — 36,508 
Total$73,535 $72 $— $73,607 $37,099 $36,508 
Schedule of Gain (Loss) on Investments
A summary of other income from equity securities recognized during fiscal 2020, fiscal 2019 and fiscal 2018 is as follows:
202020192018
Equity securities:
Dividend income$359 $1,244 $1,392 
Interest income— — 9 
Realized gain (loss) on sale of investments79 22 (3)
Unrealized gain (loss) on equity securities(59)194 (61)
Total$379 $1,460 $1,337 
Schedule of Realized Gain (Loss)
A summary of equity securities sold and gross realized gains and losses recognized during fiscal 2020, fiscal 2019 and fiscal 2018 is as follows:
202020192018
Equity securities:
Gross proceeds from sales and redemptions$20,000 $27,000 $2,144 
Cost basis of sales and redemptions19,921 26,978 2,160 
Gross realized gains included in net income (loss)79 36 2 
Gross realized losses included in net income (loss)— (14)(18)
Amounts reclassified out of accumulated other comprehensive loss— — 16 
v3.20.4
ACCOUNTS RECEIVABLE (Tables)
 12 Months Ended
Dec. 30, 2020
Receivables [Abstract]  
Schedule of Accounts Receivable
The components of accounts receivable as of December 30, 2020 and December 25, 2019 are as follows:
December 30
2020		December 25
2019
Licensing receivables$2,675 $4,510 
Credit card receivables2,989 3,417 
Delivery receivables2,229 722 
Other receivables1,599 1,321 
Allowance for doubtful accounts(28)— 
Accounts receivable, net$9,464 $9,970 
v3.20.4
INVENTORIES (Tables)
 12 Months Ended
Dec. 30, 2020
Inventory Disclosure [Abstract]  
Inventories
Inventories consisted of the following:
December 30
2020		December 25
2019
Food$1,947 $1,738 
Wine75 107 
Beer111 114 
Beverages218 233 
Retail merchandise74 29 
Paper goods463 — 
Inventories$2,888 $2,221 
v3.20.4
PROPERTY AND EQUIPMENT (Tables)
 12 Months Ended
Dec. 30, 2020
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Property and equipment consisted of the following:
December 30
2020		December 25
2019
Leasehold improvements$342,724 $302,204 
Equipment60,064 54,404 
Furniture and fixtures20,178 18,082 
Computer equipment and software30,477 24,226 
Financing equipment lease right-of-use assets9,622 7,442 
Construction in progress39,632 30,290 
Property and equipment, gross502,697 436,648 
Less: accumulated depreciation(166,156)(121,786)
Property and equipment, net$336,541 $314,862 
v3.20.4
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables)
 12 Months Ended
Dec. 30, 2020
Supplemental Balance Sheet Disclosures [Abstract]  
Components of Other Current Liabilities
The components of other current liabilities as of December 30, 2020 and December 25, 2019 are as follows:
December 30
2020		December 25
2019
Sales tax payable$4,285 $4,086 
Current portion of liabilities under tax receivable agreement— 7,777 
Gift card liability2,637 2,258 
Current portion of financing equipment lease liabilities1,998 1,873 
Other5,280 3,505 
Other current liabilities$14,200 $19,499 
The components of other long-term liabilities as of December 30, 2020 and December 25, 2019 are as follows:
December 30
2020		December 25
2019
Deferred licensing revenue$12,151 $11,310 
Long-term portion of financing equipment lease liabilities3,586 3,643 
Other(1)
8,723 375 
Other long-term liabilities$24,460 $15,328 
v3.20.4
LEASES (Tables)
 12 Months Ended
Dec. 30, 2020
Leases [Abstract]  
Lease Cost
A summary of finance and operating lease right-of-use assets and liabilities as of December 30, 2020 and December 25, 2019 is as follows:
ClassificationDecember 30, 2020December 25, 2019
Finance leasesProperty and equipment, net$5,409 $5,444 
Operating leasesOperating lease assets306,317 274,426 
Total right-of-use assets$311,726 $279,870 
Finance leases:
Other current liabilities$1,998 $1,873 
Other long-term liabilities3,586 3,643 
Operating leases:
Operating lease liabilities, current35,657 30,002 
Long-term operating lease liabilities343,736 304,914 
Total lease liabilities$384,977 $340,432 
The components of lease expense for fiscal 2020 and fiscal 2019 are as follows:
ClassificationDecember 30
2020		December 25
2019
Finance lease cost:
Amortization of right-of-use assetsDepreciation expense$2,257 $1,998 
Interest on lease liabilitiesInterest expense213 193 
Operating lease cost
Occupancy and related expenses
Pre-opening costs
General and administrative expenses
44,910 40,068 
Short-term lease costOccupancy and related expenses494 394 
Variable lease costOccupancy and related expenses
Other operating expenses
Pre-opening costs
General and administrative expenses		13,766 16,060 
Total lease cost$61,640 $58,713 
A summary of lease terms and discount rates for finance and operating leases as of December 30, 2020 and December 25, 2019 is as follows:
December 30
2020		December 25
2019
Weighted-average remaining lease term (years):
Finance leases5.25.1
Operating leases9.710.1
Weighted-average discount rate:
Finance leases3.6 %3.7 %
Operating leases4.2 %5.4 %
Supplemental cash flow information related to leases as of December 30, 2020 and December 25, 2019 is as follows:
December 30
2020		December 25
2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$213 $193 
Operating cash flows from operating leases42,144 37,468 
Financing cash flows from finance leases2,206 1,926 
Right-of-use assets obtained in exchange for lease obligations:
Finance leases2,298 2,831 
Operating leases59,969 65,556 
Operating Lease, Liability, Maturity
As of December 30, 2020, future minimum lease payments for finance and operating leases consisted of the following:
Finance LeasesOperating Leases
2021$2,169 $45,961 
20221,633 53,114 
20231,078 55,055 
2024584 54,404 
2025347 53,042 
Thereafter172 234,731 
Total minimum payments5,983 496,307 
Less: imputed interest399 116,914 
Total lease liabilities$5,584 $379,393 
Finance Lease, Liability, Maturity
As of December 30, 2020, future minimum lease payments for finance and operating leases consisted of the following:
Finance LeasesOperating Leases
2021$2,169 $45,961 
20221,633 53,114 
20231,078 55,055 
2024584 54,404 
2025347 53,042 
Thereafter172 234,731 
Total minimum payments5,983 496,307 
Less: imputed interest399 116,914 
Total lease liabilities$5,584 $379,393 
v3.20.4
STOCKHOLDER'S EQUITY (Tables)
 12 Months Ended
Dec. 30, 2020
Equity [Abstract]  
Redemption of LLC Interests
The following table summarizes redemptions of LLC Interests activity during fiscal 2020, fiscal 2019 and fiscal 2018:
202020192018
Redemption and acquisition of LLC Interests
Number of LLC Interests redeemed by non-controlling interest holders194,009 1,721,887 2,692,660 
Number of LLC Interests acquired in connection with the Gramercy Tavern Merger— 2,690,263 — 
Number of LLC Interests received by Shake Shack Inc.194,009 4,412,150 2,692,660 
Issuance of Class A common stock
Shares of Class A common stock issued in connection with redemptions of LLC Interests194,009 1,721,887 2,692,660 
Shares of Class A common stock issued in connection with the Gramercy Tavern Merger— 2,690,263 — 
Cancellation of Class B common stock
Shares of Class B common stock surrendered and cancelled194,009 1,721,887 2,692,660 
Shares of Class B common stock surrendered and cancelled in connection with the Gramercy Tavern Merger— 2,690,263 — 
v3.20.4
NON-CONTROLLING INTERESTS (Tables)
 12 Months Ended
Dec. 30, 2020
Noncontrolling Interest [Abstract]  
Schedule of Ownership Interest in SSE Holdings
The following table summarizes the ownership interest in SSE Holdings as of December 30, 2020 and December 25, 2019:
20202019
LLC InterestsOwnership %LLC InterestsOwnership %
Number of LLC Interests held by Shake Shack Inc.38,717,790 92.9 %34,417,302 91.6 %
Number of LLC Interests held by non-controlling interest holders2,951,188 7.1 %3,145,197 8.4 %
Total LLC Interests outstanding41,668,978 100.0 %37,562,499 100.0 %
Schedule of Non-Controlling Interest
The following table summarizes the effects of changes in ownership in SSE Holdings on our equity during fiscal 2020, fiscal 2019 and fiscal 2018.
202020192018
Net income (loss) attributable to Shake Shack Inc.$(42,158)$19,827 $15,179 
Other comprehensive income (loss):
Unrealized holding gains on equity securities— — 10 
Unrealized gain on foreign currency translation adjustment1 2 — 
Transfers (to) from non-controlling interests:
Increase in additional paid-in capital as a result of the redemption of LLC Interests1,723 11,934 15,202 
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 effect5,909 4,517 2,509 
Increase in additional paid-in-capital as a result of the issuance of Class A common stock sold in equity offerings135,718 — — 
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.$101,193 $55,498 $32,900 
v3.20.4
EQUITY-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 30, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Equity-Based Compensation Expense Recognized
A summary of equity-based compensation expense recognized during fiscal 2020, fiscal 2019 and fiscal 2018 is as follows:
202020192018
Stock options$322 $2,626 $3,039 
Performance stock units1,309 3,035 2,449 
Restricted stock units3,929 1,844 655 
Equity-based compensation expense$5,560 $7,505 $6,143 
Total income tax benefit recognized related to equity-based compensation$204 $188 $172 
Equity-based compensation expense is allocated to General and administrative expenses and Labor and related expenses on the Consolidated Statements of Income (Loss) during fiscal 2020, fiscal 2019 and fiscal 2018 as follows:
202020192018
General and administrative expenses$5,039 $7,189 $5,991 
Labor and related expenses521 316 152 
Equity-based compensation expense$5,560 $7,505 $6,143 
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:
202020192018
Expected term (years)(1)
7.57.57.5
Expected volatility(2)
42.3 %42.2 %42.5 %
Risk-free interest rate(3)
0.7 %2.4 %2.8 %
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 years 2020 is as follows:
Stock
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic ValueWeighted Average Remaining Contractual Life (Years)
Outstanding as of December 25, 2019890,267 $21.44 
Granted6,170 35.89 
Exercised(405,688)21.20 
Forfeited(1,725)(21.00)
Outstanding as of December 30, 2020489,024 $21.83 $30,824 4.2
Options vested and exercisable as of December 30, 2020474,744 $21.25 $30,199 4.1
Options expected to vest as of December 30, 202014,280 $41.09 $625 8.2
Schedule of Information About Stock Options
The following table summarizes information about stock options outstanding and exercisable as December 30, 2020:
Options OutstandingOptions Exercisable
Number Outstanding at December 30, 2020Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise PriceNumber Exercisable at December 30, 2020Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise Price
Exercise Price
$21.00466,225 4.1$21.00 466,225 4.1$21.00 
$34.627,411 5.4$34.62 7,411 5.4$34.62 
$36.411,108 5.9$36.41 1,108 5.9$36.41 
$38.912,060 6.4$38.91 — — $— 
$39.913,022 7.2$39.91 — — $— 
$54.363,028 8.2$54.36 — — $— 
$35.896,170 9.2$35.89 — — $— 
Schedule of Stock Options Outstanding and Exercisable, Option Plans
A summary of unvested performance stock unit activity for fiscal year 2020, is as follows:
Performance
Stock
Units
Weighted
Average
Grant Date Fair Value
Outstanding as of December 25, 2019117,517 $51.97 
Granted79,388 57.20 
Performance achievement(1)
7,792 52.47 
Vested(50,242)49.34 
Forfeited(17,234)54.45 
Outstanding as of December 30, 2020137,221 $55.67 
(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 unvested restricted stock unit activity for fiscal year 2020 is as follows:
Restricted
Stock
Units
Weighted
Average
Grant Date Fair Value
Outstanding as of December 25, 2019152,098 $49.87 
Granted170,528 57.41 
Vested(41,974)50.66 
Forfeited(22,159)54.46 
Outstanding as of December 30, 2020258,493 $54.33 
v3.20.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 30, 2020
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The components of income (loss) before income taxes are follows:
202020192018
Domestic$(59,873)$11,797 $21,595 
Foreign14,396 15,717 9,215 
Income (loss) before income taxes $(45,477)$27,514 $30,810 
Schedule of Components of Income Tax Expense
The components of income tax expense are as follows:
202020192018
Current income taxes:
Federal$— $2,984 $5,281 
State and local190 4,283 858 
Foreign1,223 2,183 1,935 
Total current income taxes1,413 9,450 8,074 
Deferred income taxes:
Federal(12,638)(5,643)(210)
State and local11,282 (421)998 
Total deferred income taxes(1,356)(6,064)788 
Income tax expense$57 $3,386 $8,862 
Reconciliation of Income Tax Expense, US Income Tax Rate
Reconciliations of income tax expense computed at the U.S. federal statutory income tax rate to the recognized income tax expense and the U.S. statutory income tax rate to our effective tax rates are as follows:
202020192018
Expected U.S. federal income taxes at statutory rate$(9,550)21.0 %$5,778 21.0 %$6,470 21.0 %
State and local income taxes, net of federal benefit5,776 (12.7)%3,924 14.2 %797 2.6 %
Foreign withholding taxes1,223 (2.7)%2,183 7.9 %1,935 6.3 %
Tax credits(1,533)3.4 %(3,007)(10.9)%(2,151)(7.0)%
Non-controlling interest537 (1.2)%(1,405)(5.1)%(1,908)(6.2)%
Remeasurement of deferred tax assets in connection with other tax rate changes5,433 (11.9)%208 0.8 %3,794 12.3 %
Change in valuation allowance(2,264)5.0 %(4,669)(17.0)%— — %
Other435 (1.0)%374 1.4 %(75)(0.2)%
Income tax expense$57 (0.1)%$3,386 12.3 %$8,862 28.8 %
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities are as follows:
December 30
2020		December 25
2019
Deferred tax assets:
Investment in partnership$139,379 $179,363 
Tax Receivable Agreement63,853 65,679 
Operating lease liability3,470 4,768 
Financing lease liability51 78 
Deferred revenue141 199 
Equity-based compensation331 347 
Net operating loss carryforwards75,522 26,058 
Tax credits9,610 8,419 
Other assets457 398 
Total gross deferred tax assets292,814 285,309 
Valuation allowance(2,656)(954)
Total deferred tax assets, net of valuation allowance290,158 284,355 
Deferred tax liabilities:
Property and equipment(300)(585)
Operating lease right-of-use asset (2,802)(3,876)
Financing lease right-of-use asset (49)(77)
Total gross deferred tax liabilities(3,151)(4,538)
Net deferred tax assets$287,007 $279,817 
v3.20.4
EARNINGS PER SHARE (Tables)
 12 Months Ended
Dec. 30, 2020
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings (loss) per share of Class A common stock for fiscal 2020, fiscal 2019 and fiscal 2018.
202020192018
Numerator:
Net income (loss)$(45,534)$24,128 $21,948 
Less: net income (loss) attributable to non-controlling interests(3,376)4,301 6,769 
Net income (loss) attributable to Shake Shack Inc.$(42,158)$19,827 $15,179 
Denominator:
Weighted-average shares of Class A common stock outstanding—basic37,129 31,381 28,299 
Effect of dilutive securities:
Stock options— 743 798 
Performance stock units— 70 63 
Restricted stock units— 57 19 
Weighted-average shares of Class A common stock outstanding—diluted37,129 32,251 29,179 
Earnings (loss) per share of Class A common stock—basic$(1.14)$0.63 $0.54 
Earnings (loss) per share of Class A common stock—diluted$(1.14)$0.61 $0.52 
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 2020, fiscal 2019 and fiscal 2018.
202020192018
Stock options489,024 (1)946 (2)— 
Performance stock units137,221 (1)51,197 (3)21,560 (3)
Restricted stock units258,493 (1)— — 
Shares of Class B common stock2,951,188 (4)3,145,197 (4)7,557,347 (4)
(1)    Represents number of instruments 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 (loss) per share of Class A common stock because the exercise price of the stock options exceeded the average market price of our Class A common stock during the period ("out-of-the-money").
(3)    Weighted-average number of securities excluded from the computation of diluted earnings (loss) per share of Class A common stock because the performance conditions associated with these awards were not met for a portion of the fiscal year.
(4)    Shares of our Class B common stock outstanding as of the end of the period are considered potentially dilutive shares of Class A common stock. Amounts have been excluded from the computations of diluted earnings (loss) per share of Class A common stock because the effect would have been anti-dilutive under the if-converted and two-class methods.
v3.20.4
RELATED PARTY TRANSACTIONS (Tables)
 12 Months Ended
Dec. 30, 2020
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
Classification202020192018
Amounts received from HYCLicensing revenue$67 $571 $420 
ClassificationDecember 30
2020		December 25
2019
Amounts due from HYCAccounts receivable$8 $47 
Classification202020192018
Amounts paid to MSP ConservancyOccupancy and related expenses$846 $964 $877 
ClassificationDecember 30
2020		December 25
2019
Amounts due to MSP ConservancyAccrued expenses$— $53 
Classification202020192018
Amounts raised through donations—$— $190 $343 
Costs incurred for free shakes redeemedGeneral and administrative expenses$— $30 $53 
Classification202020192018
Amounts paid to OloOther operating expenses$242 $170 $111 
Classification202020192018
Amounts paid to SquareOther operating expenses$1,697 $1,692 $445 
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 30, 2020 and December 25, 2019.
Classification202020192018
Amounts paid to members (inclusive of interest)Other current liabilities$6,643 $707 $— 
ClassificationDecember 30
2020		December 25
2019
Amounts due under the Tax Receivable AgreementOther current liabilities
Liabilities under Tax Receivable Agreement, net of current portion		$232,954 $234,426 
Classification202020192018
Amounts paid to non-controlling interest holdersNon-controlling interests$478 $1,708 $751 
v3.20.4
GEOGRAPHIC INFORMATION (Tables)
 12 Months Ended
Dec. 30, 2020
Segment Reporting [Abstract]  
Revenue from Customers by Geographic Areas
Revenue by geographic area for fiscal 2020, fiscal 2019 and fiscal 2018 is as follows:
202020192018
United States$508,292 $578,702 $447,575 
Other countries14,575 15,817 11,735 
Total revenue$522,867 $594,519 $459,310 
v3.20.4
NATURE OF OPERATIONS - Organization and Nature of Operations - Franchiser (Details)
Dec. 30, 2020
Restaurant
Franchisor Disclosure [Line Items]  
Number of Restaurants 311
Company-operated | United States  
Franchisor Disclosure [Line Items]  
Number of Restaurants 183
Licensed | United States  
Franchisor Disclosure [Line Items]  
Number of Restaurants 22
Licensed | Other countries  
Franchisor Disclosure [Line Items]  
Number of Restaurants 106
v3.20.4
NATURE OF OPERATIONS - Organizational Transactions (Details)
 12 Months Ended
Feb. 04, 2015
Dec. 30, 2020
shares
Dec. 25, 2019
shares
Dec. 26, 2018
shares
Class of Stock [Line Items]        
LLC interests acquired (in shares)     4,412,150  
Class B Common Stock | Common stock        
Class of Stock [Line Items]        
Effect of redemption (in shares)   194,009 1,721,887 2,692,660
Class A Common Stock        
Class of Stock [Line Items]        
Ratio of common stock to limited liability company interest 1      
v3.20.4
NATURE OF OPERATIONS - Secondary Offering (Details) - shares
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Class of Stock [Line Items]      
Units acquired during the period (in shares)   4,412,150  
Class A Common Stock | Common stock      
Class of Stock [Line Items]      
Redemptions (in shares) 194,009 1,721,887 2,692,660
Class B Common Stock | Common stock      
Class of Stock [Line Items]      
Effect of redemption (in shares) 194,009 1,721,887 2,692,660
Limited Liability Company      
Class of Stock [Line Items]      
Number of units redeemed (in shares) 194,009 4,412,150 2,692,660
Units acquired during the period (in shares) 650,951    
v3.20.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of Presentation (Details) - USD ($)
$ in Thousands
Dec. 30, 2020
Dec. 25, 2019
Variable Interest Entity, Primary Beneficiary    
Variable Interest Entity [Line Items]    
Net assets of SSE Holdings $ 383,669 $ 270,542
v3.20.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details)
 12 Months Ended
Dec. 30, 2020
reportable_segment
operating_segment
Accounting Policies [Abstract]  
Number of operating segments | operating_segment 1
Number of reportable segments | reportable_segment 1
v3.20.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - USD ($)
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Property, Plant and Equipment [Line Items]      
Impairment charges $ 7,644,000 $ 0 $ 0
Equipment | Maximum      
Property, Plant and Equipment [Line Items]      
Useful life of property and equipment 7 years    
Equipment | Minimum      
Property, Plant and Equipment [Line Items]      
Useful life of property and equipment 2 years    
Furniture and Fixtures | 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 2 years    
Computer Equipment and Software | 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    
v3.20.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Assets (Details) - USD ($)
$ in Thousands
Dec. 30, 2020
Dec. 25, 2019
Accounting Policies [Abstract]    
Indefinite-lived intangible assets $ 1,437 $ 1,437
v3.20.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Details)
 12 Months Ended
Dec. 30, 2020
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
v3.20.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Accounting Policies [Abstract]      
Advertising and promotions $ 1,449 $ 857 $ 399
v3.20.4
REVENUE Narrative (Details)
$ in Thousands
Dec. 30, 2020
USD ($)
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 16,937
v3.20.4
REVENUE Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 30, 2020
Sep. 23, 2020
Jun. 24, 2020
Mar. 25, 2020
Dec. 25, 2019
Sep. 25, 2019
Jun. 26, 2019
Mar. 27, 2019
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Disaggregation of Revenue [Line Items]                      
TOTAL REVENUE $ 157,510 $ 130,401 $ 91,786 $ 143,170 $ 151,435 $ 157,762 $ 152,713 $ 132,609 $ 522,867 $ 594,519 $ 459,310
Shack sales                      
Disaggregation of Revenue [Line Items]                      
TOTAL REVENUE                 506,339 574,625 445,589
Sales-based royalties                      
Disaggregation of Revenue [Line Items]                      
TOTAL REVENUE                 15,773 19,318 13,422
Initial territory and opening fees                      
Disaggregation of Revenue [Line Items]                      
TOTAL REVENUE                 $ 755 $ 576 $ 299
v3.20.4
REVENUE Contract Balances (Details) - USD ($)
$ in Thousands
Dec. 30, 2020
Dec. 25, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Gift card liability $ 2,637 $ 2,258
Deferred revenue, current 608 511
Deferred revenue, long-term 12,151 11,310
Shack sales    
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Contract with customer, asset, net 5,373 4,265
Licensing receivables, net of allowance for doubtful accounts    
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]    
Contract with customer, asset, net $ 2,647 $ 4,510
v3.20.4
REVENUE Liability (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Revenue from Contract with Customer [Abstract]    
Gift card liability $ 537 $ 524
Deferred revenue $ 723 $ 536
v3.20.4
FAIR VALUE MEASUREMENTS - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($)
$ in Thousands
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Dec. 27, 2017
Debt Securities, Available-for-sale [Line Items]        
Cost Basis $ 146,873 $ 37,099 $ 24,750 $ 21,507
Cash and cash equivalents fair value 146,873 37,099    
Gross Unrealized Gains 13 72    
Gross Unrealized Losses 0 0    
Fair value of marketable securities 36,887 36,508    
Total cost basis 183,747 73,535    
Total fair value 183,760 73,607    
Level 1: | Mutual Fund        
Debt Securities, Available-for-sale [Line Items]        
Cost Basis 36,874 36,436    
Cash and cash equivalents fair value 36,887 36,508    
Gross Unrealized Gains 13 72    
Gross Unrealized Losses      
Fair value of marketable securities 36,887 36,508    
Cash        
Debt Securities, Available-for-sale [Line Items]        
Cost Basis 146,873 32,094    
Cash and cash equivalents fair value 146,873 32,094    
Money market funds | Level 1:        
Debt Securities, Available-for-sale [Line Items]        
Cost Basis 0 5,005    
Cash and cash equivalents fair value $ 0 $ 5,005    
v3.20.4
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Fair Value, Option, Quantitative Disclosures [Line Items]      
Net unrealized gains on equity securities $ (59,000)   $ 0
Impairment charges 7,644,000 $ 0 $ 0
Operating Lease, Right-of-Use Assets      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Impairment charges 5,698,000    
Property, Plant and Equipment      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Impairment charges 1,893,000    
Finance Lease, Right-of-Use Assets      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Impairment charges $ 53,000    
v3.20.4
FAIR VALUE MEASUREMENTS - Schedule of Income for AFS Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Fair Value Disclosures [Abstract]      
Dividend income $ 359 $ 1,244 $ 1,392
Interest income 0 0 9
Realized gain (loss) on sale of investments 79 22 (3)
Unrealized gain (loss) on equity securities (59) 194 (61)
Total $ 379 $ 1,460 $ 1,337
v3.20.4
FAIR VALUE MEASUREMENTS - Schedule of AFS Sold (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Equity securities:      
Gross proceeds from sales and redemptions $ 20,000 $ 27,000 $ 2,144
Cost basis of sales and redemptions 19,921 26,978 2,160
Gross realized gains included in net income (loss) 79 36 2
Gross realized losses included in net income (loss) 0 (14) (18)
Amounts reclassified out of accumulated other comprehensive loss [1] $ 0 $ 0 $ 16
[1] Net of tax benefit of $0 for fiscal years ended December 30, 2020, December 25, 2019 and December 26, 2018.
v3.20.4
ACCOUNTS RECEIVABLE - Schedule of Accounts Receivable (Details) - USD ($)
Dec. 30, 2020
Dec. 25, 2019
Receivables [Abstract]    
Licensing receivables $ 2,675,000 $ 4,510,000
Credit card receivables 2,989,000 3,417,000
Delivery receivables 2,229,000 722,000
Other receivables 1,599,000 1,321,000
Allowance for doubtful accounts (28,000) 0
Accounts receivable, net $ 9,464,000 $ 9,970,000
v3.20.4
INVENTORIES - Schedule of Inventories (Details) - USD ($)
$ in Thousands
Dec. 30, 2020
Dec. 25, 2019
Inventory [Line Items]    
Inventories $ 2,888 $ 2,221
Food    
Inventory [Line Items]    
Inventories 1,947 1,738
Wine    
Inventory [Line Items]    
Inventories 75 107
Beer    
Inventory [Line Items]    
Inventories 111 114
Beverages    
Inventory [Line Items]    
Inventories 218 233
Retail merchandise    
Inventory [Line Items]    
Inventories 74 29
Paper goods    
Inventory [Line Items]    
Inventories $ 463 $ 0
v3.20.4
PROPERTY AND EQUIPMENT (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 502,697 $ 436,648  
Less: accumulated depreciation (166,156) (121,786)  
Property and equipment, net 336,541 314,862  
Depreciation 48,801 40,392 $ 29,000
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 342,724 302,204  
Equipment      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 60,064 54,404  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 20,178 18,082  
Computer equipment and software      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 30,477 24,226  
Financing equipment lease right-of-use assets      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 9,622 7,442  
Construction in progress      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 39,632 $ 30,290  
v3.20.4
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($)
Dec. 30, 2020
Dec. 25, 2019
Supplemental Balance Sheet Disclosures [Abstract]    
Sales tax payable $ 4,285,000 $ 4,086,000
Current portion of liabilities under tax receivable agreement 0 7,777,000
Gift card liability 2,637,000 2,258,000
Current portion of financing equipment lease liabilities 1,998,000 1,873,000
Other 5,280,000 3,505,000
Other current liabilities 14,200,000 19,499,000
Deferred licensing revenue 12,151,000 11,310,000
Long-term portion of financing equipment lease liabilities 3,586,000 3,643,000
Other(1) 8,723,000 375,000
Other long-term liabilities 24,460,000 $ 15,328,000
Deferred lease incentive liabilities 3,182  
Deferred social security taxes $ 5,214  
v3.20.4
DEBT (Details) - USD ($)
 1 Months Ended 12 Months Ended
May 31, 2020
Mar. 31, 2020
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Apr. 30, 2020
Debt Instrument [Line Items]            
Proceeds from Revolving Credit Facility     $ 50,000,000 $ 0 $ 0  
Interest costs incurred     815,000 $ 434,000 2,572,000  
Interest costs capitalized     0   $ 157,000  
Line of Credit Facility, Fair Value of Amount Outstanding     0      
Notes payable            
Debt Instrument [Line Items]            
Proceeds from Revolving Credit Facility   $ 50,000,000        
Notes Payable to Banks            
Debt Instrument [Line Items]            
Proceeds from bank debt           $ 10,000
Revolving Credit Facility | Revolving Credit Facility            
Debt Instrument [Line Items]            
Maximum borrowing capacity     50,000,000      
Incremental borrowing capacity     100,000,000      
Revolving Credit Facility | Letter of credit | Line of credit            
Debt Instrument [Line Items]            
Maximum borrowing capacity     $ 15,000,000      
Revolving Credit Facility | Minimum | Line of credit | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Basis spread on variable rate     1.00%      
Revolving Credit Facility | Minimum | Line of credit | Prime rate            
Debt Instrument [Line Items]            
Basis spread on variable rate     0.00%      
Revolving Credit Facility | Maximum | Line of credit | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Basis spread on variable rate     1.50%      
Revolving Credit Facility | Maximum | Line of credit | Prime rate            
Debt Instrument [Line Items]            
Basis spread on variable rate     0.50%      
First Amendment to the Credit Agreement | Line of credit            
Debt Instrument [Line Items]            
Debt instrument, minimum required liquidity $ 25,000,000          
First Amendment to the Credit Agreement | Minimum | Line of credit | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Basis spread on variable rate 1.00%          
First Amendment to the Credit Agreement | Minimum | Line of credit | Prime rate            
Debt Instrument [Line Items]            
Basis spread on variable rate 0.00%          
First Amendment to the Credit Agreement | Maximum | Line of credit | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Basis spread on variable rate 2.50%          
First Amendment to the Credit Agreement | Maximum | Line of credit | Prime rate            
Debt Instrument [Line Items]            
Basis spread on variable rate 1.50%          
v3.20.4
LEASES - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
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 | $ $ 36,788
Minimum  
Lessee, Lease, Description [Line Items]  
Terms of lease contract 10 years
Maximum  
Lessee, Lease, Description [Line Items]  
Terms of lease contract 15 years
v3.20.4
LEASES - Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Total right-of-use assets    
Finance lease right-of-use asset $ 5,409 $ 5,444
Operating lease assets 306,317 274,426
Total right-of-use assets 311,726 279,870
Total lease liabilities    
Other current liabilities, finance leases 1,998 1,873
Other long-term liabilities, finance leases 3,586 3,643
Operating lease liabilities, current 35,657 30,002
Long-term operating lease liabilities 343,736 304,914
Total lease liabilities 384,977 340,432
Total lease cost    
Amortization of right-of-use assets 2,257 1,998
Interest on lease liabilities 213 193
Operating lease cost 44,910 40,068
Short-term lease cost 494 394
Variable lease cost 13,766 16,060
Total lease cost $ 61,640 $ 58,713
Weighted-average remaining lease term (years):    
Finance leases 5 years 2 months 12 days 5 years 1 month 6 days
Operating leases 9 years 8 months 12 days 10 years 1 month 6 days
Weighted-average discount rate:    
Finance leases 3.60% 3.70%
Operating leases 4.20% 5.40%
Operating cash flows from finance leases $ 213 $ 193
Operating cash flows from operating leases 42,144 37,468
Financing cash flows from finance leases 2,206 1,926
Right-of-use assets obtained in exchange for lease obligations: Finance leases 2,298 2,831
Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 59,969 $ 65,556
Operating Lease, Liability, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilities us-gaap:OtherLiabilities
v3.20.4
LEASES - Future Minimum Lease Payments (Details)
$ in Thousands
Dec. 30, 2020
USD ($)
Finance Leases  
2020 $ 2,169
2021 1,633
2022 1,078
2023 584
2024 347
Thereafter 172
Total minimum payments 5,983
Less: imputed interest 399
Total lease liabilities 5,584
Operating Leases  
2020 45,961
2021 53,114
2022 55,055
2023 54,404
2024 53,042
Thereafter 234,731
Total minimum payments 496,307
Less: imputed interest 116,914
Total lease liabilities $ 379,393
v3.20.4
EMPLOYEE BENEFIT PLANS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Defined Benefit Plan Disclosure [Line Items]      
Employer contributions $ 895 $ 772 $ 509
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%    
v3.20.4
STOCKHOLDER'S EQUITY - Redemption of LLC Interests (Details) - shares
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Limited Liability Company      
Class of Stock [Line Items]      
Number of units redeemed (in shares) 194,009 4,412,150 2,692,660
Common Stock | Class A Common Stock      
Class of Stock [Line Items]      
Redemptions (in shares) 194,009 1,721,887 2,692,660
Common Stock | Class B Common Stock      
Class of Stock [Line Items]      
Effect of redemption (in shares) 194,009 1,721,887 2,692,660
Gramercy Tavern | Limited Liability Company      
Class of Stock [Line Items]      
Number of units redeemed (in shares)   2,690,263 0
Gramercy Tavern | Common Stock | Class A Common Stock      
Class of Stock [Line Items]      
Redemptions (in shares) 0 2,690,263 0
Gramercy Tavern | Common Stock | Class B Common Stock      
Class of Stock [Line Items]      
Effect of redemption (in shares) 0 2,690,263 0
Redemptions by NCI Holders | Limited Liability Company      
Class of Stock [Line Items]      
Number of units redeemed (in shares) 194,009 1,721,887 2,692,660
v3.20.4
STOCKHOLDER'S EQUITY (Details) - USD ($)
 1 Months Ended 12 Months Ended
Apr. 21, 2020
Aug. 31, 2019
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Class of Stock [Line Items]          
LLC interests acquired (in shares)       4,412,150  
Effect of GTC Merger (in shares)   2,690,263   2,690,263  
Share-based Payment Arrangement, Option          
Class of Stock [Line Items]          
LLC interests acquired (in shares)     456,942 484,319 300,696
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        
v3.20.4
NON-CONTROLLING INTERESTS - Narrative (Details)
 1 Months Ended 12 Months Ended
Feb. 04, 2015
Aug. 31, 2019
shares
Dec. 30, 2020
shares
Dec. 25, 2019
shares
Dec. 26, 2018
shares
Noncontrolling Interest [Line Items]          
Weighted average ownership percentage     7.70% 15.90%  
Effect of GTC Merger (in shares)   2,690,263   2,690,263  
Units acquired during the period (in shares)       4,412,150  
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)     194,009 4,412,150 2,692,660
Units acquired during the period (in shares)     650,951    
Stock options          
Noncontrolling Interest [Line Items]          
Units acquired during the period (in shares)     456,942 484,319 300,696
v3.20.4
NON-CONTROLLING INTERESTS - Ownership Interest in SSE Holdings (Details) - shares
Dec. 30, 2020
Dec. 25, 2019
Noncontrolling Interest [Line Items]    
Number of LLC Interests held by Shake Shack Inc. (in shares) 38,717,790 34,417,302
Number of LLC Interests held by non-controlling interest holders (in shares) 2,951,188 3,145,197
Consolidation, Less than Wholly Owned Subsidiary, Number of Shares 41,668,978 37,562,499
Noncontrolling Interest, Total Ownership Percentage 100.00% 100.00%
Shake Shack Inc.    
Noncontrolling Interest [Line Items]    
Ownership percent of noncontrolling interest 92.90% 91.60%
Non-Controlling Interest Holders    
Noncontrolling Interest [Line Items]    
Noncontrolling owners ownership percentage 7.10% 8.40%
v3.20.4
NON-CONTROLLING INTERESTS - Schedule of Non-Controlling Interest (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 30, 2020
Sep. 23, 2020
Jun. 24, 2020
Mar. 25, 2020
Dec. 25, 2019
Sep. 25, 2019
Jun. 26, 2019
Mar. 27, 2019
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Noncontrolling Interest [Line Items]                      
Net income (loss) attributable to Shake Shack Inc. $ (19,428) $ (5,559) $ (16,211) $ (960) $ (2,093) $ 10,344 $ 9,030 $ 2,546 $ (42,158) $ 19,827 $ 15,179
Other comprehensive income (loss):                      
Unrealized holding gains on equity securities                 1 2 13
Net change in foreign currency translation adjustment                 1 2 0
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.                 101,193 55,498 32,900
AOCI Attributable to Parent                      
Other comprehensive income (loss):                      
Unrealized holding gains on equity securities                 0 0 10
Net change in foreign currency translation adjustment                 1 2 0
Common stock | Class A common stock, $0.001 par value—200,000,000 shares authorized; 38,717,790 and 34,417,302 shares issued and outstanding as of December 30, 2020 and December 25, 2019, respectively.                      
Other comprehensive income (loss):                      
Transfers (to) from non-controlling interests                 135,718 0 0
Stock options | Additional Paid-in Capital                      
Other comprehensive income (loss):                      
Transfers (to) from non-controlling interests                 5,909 4,517 2,509
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                 1,723 11,934 15,202
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 $ 19,218 $ 0
v3.20.4
EQUITY-BASED COMPENSATION - Schedule of compensation expense recognized (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense $ 5,560 $ 7,505 $ 6,143
Total income tax benefit recognized related to equity-based compensation 204 188 172
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense 322 2,626 3,039
Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense 1,309 3,035 2,449
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense 3,929 1,844 655
General and administrative expenses      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense 5,039 7,189 5,991
Labor and related expenses      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity-based compensation expense $ 521 $ 316 $ 152
Two Thousand and Fifteen 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, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 55.67 $ 51.97  
Two Thousand and Fifteen 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, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 54.33 $ 49.87  
v3.20.4
EQUITY-BASED COMPENSATION - Narrative (Details) - USD ($)
 1 Months Ended 12 Months Ended
Jan. 31, 2015
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Equity based compensation   $ 40,000 $ 195,000 $ 107,000
Net proceeds from stock option exercises   8,033,000 9,201,000 5,472,000
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Fair value vested   2,674,000 $ 2,950,000 3,483,000
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      
2015 Incentive Award Plan | Minimum | Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Award vesting period 1 year      
2015 Incentive Award Plan | Maximum | Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Award vesting period 5 years      
2015 Incentive Award Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation expense   $ 223,000    
Weighted-average period for recognition compensation expense   3 years 2 months 12 days    
Intrinsic value of stock options exercised   $ 30,199,000    
Net proceeds from stock option exercises   $ 8,224,000    
2015 Incentive Award Plan | Restricted Class B units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Performance shares granted (in shares)   258,493 152,098  
2015 Incentive Award Plan | Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Intrinsic value of stock options exercised   $ 25,824,000 $ 16,905,000 5,786,000
2015 Incentive Award Plan | Performance Shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Award vesting period   4 years    
Weighted-average period for recognition compensation expense   1 year 10 months 24 days    
Fair value vested   $ 2,730,000 $ 3,456,000 $ 2,310,000
Performance period   1 year    
Performance shares granted (in shares)   137,221 117,517  
Shares expected to be recognized   $ 966,000    
Issuance of common stock in settlement of unit appreciation rights   $ 10,654,000    
Weighted average period   2 years 9 months 18 days    
2015 Incentive Award Plan | Minimum | Restricted Class B units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Award vesting period   1 year    
2015 Incentive Award Plan | Minimum | Performance Shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Range of awards   0.00%    
2015 Incentive Award Plan | Maximum | Restricted Class B units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Award vesting period   5 years    
2015 Incentive Award Plan | Maximum | Performance Shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Range of awards   125.00%    
v3.20.4
EQUITY-BASED COMPENSATION - Schedule of Fair Value of Stock Options (Details) - 2015 Incentive Award Plan - Stock options
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
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 42.30% 42.20% 42.50%
Risk-free interest rate 0.70% 2.40% 2.80%
Dividend yield 0.00% 0.00% 0.00%
v3.20.4
EQUITY-BASED COMPENSATION - Schedule of Stock Options (Details) - 2015 Incentive Award Plan - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Stock Options      
Outstanding at beginning of period (in shares) 890,267    
Granted (in shares) 6,170    
Exercised (in shares) (405,688)    
Forfeited (in shares) (1,725)    
Outstanding at end of period (in shares) 489,024 890,267  
Options vested and exercisable at end of period (in shares) 474,744    
Options expected to vest (in shares) 14,280    
Weighted Average Exercise Price      
Outstanding at beginning of period (in USD per share) $ 21.44    
Granted (in USD per share) 35.89    
Exercised (in USD per share) 21.20    
Forfeited (in USD per share) (21.00)    
Outstanding at end of period (in USD per share) 21.83 $ 21.44  
Weighted average options vested and exercisable (in USD per share) 21.25    
Options expected to vest (in USD per share) $ 41.09    
Aggregate Intrinsic Value      
Outstanding at end of period $ 30,824    
Options exercised during period 30,199    
Options expected to vest as of December 30, 2020 $ 625    
Weighted Average Remaining Contractual Life (Years)      
Outstanding at end of period 4 years 2 months 12 days    
Options exercisable at end of year 4 years 1 month 6 days    
Options expected to vest at end of year 8 years 2 months 12 days    
Stock options      
Weighted Average Exercise Price      
Granted (in USD per share) $ 16.21 $ 26.42 $ 19.86
Aggregate Intrinsic Value      
Options exercised during period $ 25,824 $ 16,905 $ 5,786
v3.20.4
EQUITY-BASED COMPENSATION - Summary of Performance and Restricted Stock Activity (Details) - 2015 Incentive Award Plan - $ / shares
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 4 years    
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]      
Outstanding at beginning of period (in shares) 117,517    
Granted (in shares) 79,388    
Performance achievement (in shares) 7,792    
Vested (in shares) (50,242)    
Forfeited (in shares) (17,234)    
Outstanding at end of period (in shares) 137,221 117,517  
Stock Options      
Outstanding at beginning of period (in USD per share) $ 51.97    
Granted (in USD per share) 57.20 $ 52.47 $ 58.46
Performance achievement (in USD per share) 52.47    
Vested (in USD per share) 49.34    
Forfeited (in USD per share) 54.45    
Outstanding at end of period (in USD per share) $ 55.67 $ 51.97  
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) 152,098    
Granted (in shares) 170,528    
Vested (in shares) (41,974)    
Forfeited (in shares) (22,159)    
Outstanding at end of period (in shares) 258,493 152,098  
Stock Options      
Outstanding at beginning of period (in USD per share) $ 49.87    
Granted (in USD per share) 57.41 $ 52.51 $ 49.12
Vested (in USD per share) 50.66    
Forfeited (in USD per share) 54.46    
Outstanding at end of period (in USD per share) $ 54.33 $ 49.87  
Maximum | Restricted Stock Units      
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    
Minimum | Restricted Stock Units      
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    
v3.20.4
EQUITY-BASED COMPENSATION -asdf (Details) - 2015 Incentive Award Plan
 12 Months Ended
Dec. 30, 2020
$ / shares
shares
Twenty-One Dollars  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number Outstanding (in shares) | shares 466,225
Weighted Average Remaining Contractual Life (Years) 4 years 1 month 6 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 21.00
Number Exercisable (in shares) | shares 466,225
Weighted Average Remaining Contractual Life (Years) 4 years 1 month 6 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 21.00
Thirty-Four Point Sixty Two Dollars  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number Outstanding (in shares) | shares 7,411
Weighted Average Remaining Contractual Life (Years) 5 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) 5 years 4 months 24 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 34.62
Thirty-Six Point Forty One Dollars  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number Outstanding (in shares) | shares 1,108
Weighted Average Remaining Contractual Life (Years) 5 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) 5 years 10 months 24 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 36.41
Thirty-Eight Point Ninety One Dollars  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number Outstanding (in shares) | shares 2,060
Weighted Average Remaining Contractual Life (Years) 6 years 4 months 24 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 38.91
Number Exercisable (in shares) | shares 0
Weighted Average Exercise Price (in USD per share) | $ / shares $ 0
Thirty-Nine Point Ninety-One Dollars  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number Outstanding (in shares) | shares 3,022
Weighted Average Remaining Contractual Life (Years) 7 years 2 months 12 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 39.91
Number Exercisable (in shares) | shares 0
Weighted Average Exercise Price (in USD per share) | $ / shares $ 0
Fifty-Four Point Thirty-Six Dollars  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number Outstanding (in shares) | shares 3,028
Weighted Average Remaining Contractual Life (Years) 8 years 2 months 12 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 54.36
Number Exercisable (in shares) | shares 0
Weighted Average Exercise Price (in USD per share) | $ / shares $ 0
Thirty-Five Point Eighty-Nine Dollars  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number Outstanding (in shares) | shares 6,170
Weighted Average Remaining Contractual Life (Years) 9 years 2 months 12 days
Weighted Average Exercise Price (in USD per share) | $ / shares $ 35.89
Number Exercisable (in shares) | shares 0
Weighted Average Exercise Price (in USD per share) | $ / shares $ 0
v3.20.4
INCOME TAXES - Schedule of Components of Income before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Income Tax Disclosure [Abstract]      
Domestic $ (59,873) $ 11,797 $ 21,595
Foreign 14,396 15,717 9,215
Income (loss) before income taxes $ (45,477) $ 27,514 $ 30,810
v3.20.4
INCOME TAXES - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Income Tax Contingency [Line Items]      
Effective income tax rate (percent) (0.10%) 12.30% 28.80%
Deferred tax assets, carryforwards, federal $ 313,940,000    
Deferred tax assets, carryforwards, state and local 183,829,000    
Net operating loss carryforwards 75,522,000 $ 26,058,000  
Additional deferred tax asset recognized, investment in partnership 8,609,000    
Additional deferred tax asset recognized, tax receivable agreement 1,106,000    
Other Income related to additional tax basis on TRA 1,147,000    
Valuation allowance recognized 2,579,000    
Decrease in valuation allowance 1,625,000    
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%    
Consolidated Entity, Ownership By Parent, LLC Units Acquired 194,009    
LLC interests acquired (in shares)   4,412,150  
Establishment of liabilities under tax receivable agreement $ 4,024,000 $ 32,065,000 $ 44,338,000
Other income recognized related to reduction of tax receivable agreement liability 6,643,000 707,000 0
Establishment of liabilities under tax receivable agreement 232,954,000 234,426,000  
Current portion of liabilities under tax receivable agreement 0 7,777,000  
Accelerated tax depreciation deductions related to assets placed in service 351    
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 139,379,000    
Decrease in valuation allowance $ (77)    
LLC interests acquired (in shares) 650,951    
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 $ 6,643,000 707,000 0
Establishment of liabilities under tax receivable agreement 232,954,000 234,426,000  
Current portion of liabilities under tax receivable agreement 0 7,777,000  
Consolidation, Eliminations | Parent Company      
Income Tax Contingency [Line Items]      
Establishment of liabilities under tax receivable agreement 4,024,000 $ 32,065,000 $ 44,338,000
Domestic Tax Authority      
Income Tax Contingency [Line Items]      
Net operating loss carryforwards 262,073,000    
Tax credit carryforwards 9,002,000    
State and Local Jurisdiction      
Income Tax Contingency [Line Items]      
Net operating loss carryforwards 40,695,000    
Tax credit carryforwards $ 608,000    
v3.20.4
INCOME TAXES - Schedule of Components of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Current income taxes:      
Federal $ 0 $ 2,984 $ 5,281
State and local 190 4,283 858
Foreign 1,223 2,183 1,935
Total current income taxes 1,413 9,450 8,074
Deferred income taxes:      
Federal (12,638) (5,643) (210)
State and local 11,282 (421) 998
Total deferred income taxes (1,356) (6,064) 788
Income tax expense $ 57 $ 3,386 $ 8,862
v3.20.4
INCOME TAXES - Reconciliation of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Income Tax Disclosure [Abstract]      
Income taxes at U.S. federal statutory rate $ (9,550) $ 5,778 $ 6,470
U.S. federal statutory income tax rate, percentage 21.00% 21.00% 21.00%
State and local income taxes, net of federal benefit $ 5,776 $ 3,924 $ 797
State and local income taxes, net of federal benefit, percentage (12.70%) 14.20% 2.60%
Foreign withholding taxes $ 1,223 $ 2,183 $ 1,935
Foreign withholding taxes, percentage (2.70%) 7.90% 6.30%
Tax credits $ (1,533) $ (3,007) $ (2,151)
Tax credits, percentage 3.40% (10.90%) (7.00%)
Non-controlling interest $ 537 $ (1,405) $ (1,908)
Non-controlling interest, percentage (1.20%) (5.10%) (6.20%)
Remeasurement of deferred tax assets in connection with other tax rate changes $ 5,433 $ 208 $ 3,794
Remeasurement of deferred tax assets in connection with other tax rate changes, percentage (11.90%) 0.80% 12.30%
Change in valuation allowance $ (2,264) $ (4,669) $ 0
Change in valuation allowance, percentage 5.00% (17.00%) 0.00%
Other $ 435 $ 374 $ (75)
Other, percentage (1.00%) 1.40% (0.20%)
Income tax expense $ 57 $ 3,386 $ 8,862
Effective income tax rate, percentage (0.10%) 12.30% 28.80%
v3.20.4
INCOME TAXES- Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 30, 2020
Dec. 25, 2019
Deferred tax assets:    
Investment in partnership $ 139,379 $ 179,363
Tax Receivable Agreement 63,853 65,679
Operating lease liability 3,470 4,768
Financing lease liability 51 78
Deferred revenue 141 199
Equity-based compensation 331 347
Net operating loss carryforwards 75,522 26,058
Tax credits 9,610 8,419
Other assets 457 398
Total gross deferred tax assets 292,814 285,309
Valuation allowance (2,656) (954)
Total deferred tax assets, net of valuation allowance 290,158 284,355
Deferred tax liabilities:    
Property and equipment (300) (585)
Operating lease right-of-use asset (2,802) (3,876)
Financing lease right-of-use asset (49) (77)
Total gross deferred tax liabilities (3,151) (4,538)
Net deferred tax assets $ 287,007 $ 279,817
v3.20.4
EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 30, 2020
Sep. 23, 2020
Jun. 24, 2020
Mar. 25, 2020
Dec. 25, 2019
Sep. 25, 2019
Jun. 26, 2019
Mar. 27, 2019
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]                      
Net income $ (20,314) $ (6,110) $ (18,031) $ (1,079) $ (2,073) $ 11,423 $ 11,171 $ 3,607 $ (45,534) $ 24,128 $ 21,948
Less: net income (loss) attributable to non-controlling interests                 (3,376) 4,301 6,769
Net income (loss) attributable to Shake Shack Inc. $ (19,428) $ (5,559) $ (16,211) $ (960) $ (2,093) $ 10,344 $ 9,030 $ 2,546 $ (42,158) $ 19,827 $ 15,179
Denominator:                      
Weighted-average shares of Class A common stock outstanding—basic (shares)                 37,129 31,381 28,299
Effect of dilutive securities:                      
Weighted-average shares of Class A common stock outstanding—diluted (shares)                 37,129 32,251 29,179
Earnings per share of Class A common stock—basic (in dollars per share)                 $ (1.14) $ 0.63 $ 0.54
Earnings per share of Class A common stock—diluted (in dollars per share)                 $ (1.14) $ 0.61 $ 0.52
Stock options                      
Effect of dilutive securities:                      
Restricted Class B units (shares)                 0 743 798
Performance Shares                      
Effect of dilutive securities:                      
Restricted Class B units (shares)                 0 70 63
Restricted Stock                      
Effect of dilutive securities:                      
Restricted Class B units (shares)                 0 57 19
v3.20.4
EARNINGS PER SHARE - Antidilutive Securities (Details) (Details) - shares
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares (in shares) 489,024 946 0
Performance Shares      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares (in shares) 137,221 51,197 21,560
Restricted Stock Units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares (in shares) 258,493 0 0
Class B Common Stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares (in shares) 2,951,188 3,145,197 7,557,347
v3.20.4
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
 1 Months Ended 12 Months Ended
Feb. 28, 2018
Dec. 30, 2020
Dec. 25, 2019
Sep. 26, 2018
Loss Contingencies [Line Items]        
Percentage of tax benefits due to equity owners   85.00%    
Establishment of tax receivable agreement liability   $ 232,954,000 $ 234,426,000  
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 $ 1,200,000 $ 1,180,000    
IPO        
Loss Contingencies [Line Items]        
Percentage of tax benefits due to equity owners   85.00%    
v3.20.4
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Related Party Transaction [Line Items]    
Percentage of tax benefits due to equity owners 85.00%  
Tax distributions payable to non-controlling interest holders   $ 0
Subsidiary to Affiliated Entity    
Related Party Transaction [Line Items]    
Renewal option period 5 years  
Entity with Common Management    
Related Party Transaction [Line Items]    
Due to related parties, current $ 0  
v3.20.4
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 23, 2020
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Related Party Transaction [Line Items]        
Tax receivable agreement payments to related parties $ 0 $ 6,643 $ 707  
Establishment of tax receivable agreement liability   232,954 234,426  
Payments to noncontrolling interests   478 1,708 $ 751
Board of Directors Chairman | Square, Inc        
Related Party Transaction [Line Items]        
Related party transaction, expenses from transactions with related party   1,697 1,692 445
Board of Directors Chairman | Mobo Systems, Inc.        
Related Party Transaction [Line Items]        
Related party transaction, expenses from transactions with related party   242 170 111
Share Our Strength        
Related Party Transaction [Line Items]        
Related party transaction, expenses from transactions with related party   0 30 53
Charitable campaign flow through   0 190 343
Entity with Common Management        
Related Party Transaction [Line Items]        
Due to related parties, current   0    
Entity with Common Management | Square, Inc        
Related Party Transaction [Line Items]        
Due to related parties, current   0    
Entity with Common Management | Mobo Systems, Inc.        
Related Party Transaction [Line Items]        
Due to related parties, current   0    
Entity with Common Management | Rent Expense        
Related Party Transaction [Line Items]        
Related party transaction, expenses from transactions with related party   846 964 877
Due to related parties, current   0 53  
Entity with Common Management | Share Our Strength        
Related Party Transaction [Line Items]        
Due to related parties, current   0    
Entity with Common Management | USHG Acquisition Corp        
Related Party Transaction [Line Items]        
Due to related parties, current   0    
Subsidiary to Affiliated Entity | Concession Income        
Related Party Transaction [Line Items]        
Revenue from related parties   67 571 $ 420
Due from related parties, current   $ 8 $ 47  
v3.20.4
GEOGRAPHIC INFORMATION (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 30, 2020
Sep. 23, 2020
Jun. 24, 2020
Mar. 25, 2020
Dec. 25, 2019
Sep. 25, 2019
Jun. 26, 2019
Mar. 27, 2019
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]                      
TOTAL REVENUE $ 157,510 $ 130,401 $ 91,786 $ 143,170 $ 151,435 $ 157,762 $ 152,713 $ 132,609 $ 522,867 $ 594,519 $ 459,310
United States                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
TOTAL REVENUE                 508,292 578,702 447,575
Other countries                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
TOTAL REVENUE                 $ 14,575 $ 15,817 $ 11,735
v3.20.4
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF REGISTRANT - BALANCE SHEET (Details) - USD ($)
$ / shares in Units, $ in Thousands
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
Dec. 27, 2017
Preferred stock, par value (in dollars per share) $ 0 $ 0    
Current assets:        
Accounts receivable $ 9,464 $ 9,970    
Total current assets 203,186 87,675    
TOTAL ASSETS 1,145,348 968,268    
Current liabilities:        
Accounts payable 23,487 14,300    
Accrued expenses 25,920 24,140    
Current portion of liabilities under tax receivable agreement 0 7,777    
Total current liabilities 109,705 99,392    
Liabilities under tax receivable agreement, net of current portion 232,954 226,649    
Total liabilities 710,855 646,283    
Commitments and contingencies    
Stockholders' equity:        
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 30, 2020 and December 25, 2019, respectively. 0 0    
Additional paid-in capital 395,067 244,410    
Retained earnings 12,209 54,367    
Total stockholders' equity 434,493 321,985 $ 273,455 $ 224,479
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,145,348 $ 968,268    
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 Tax Assets, Net $ 287,007 $ 279,817    
Class A Common Stock        
Stockholders' equity:        
Common stock $ 39 $ 35    
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) 38,717,790 34,417,302    
Common stock, shares, outstanding (in shares) 38,717,790 34,417,302    
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) 2,951,188 3,145,197    
Common stock, shares, outstanding (in shares) 2,951,188 3,145,197    
Parent Company        
Preferred stock, par value (in dollars per share) $ 0 $ 0    
Current assets:        
Cash $ 9,469 $ 9,223    
Accounts receivable 0 1    
Prepaid expenses 45 206    
Total current assets 9,514 9,430    
Due from SSE Holdings 2,103 7,124    
Investment in subsidiaries 356,497 247,372    
TOTAL ASSETS 653,691 542,938    
Current liabilities:        
Accounts payable 3 1    
Accrued expenses 125 44    
Due to SSE Holdings 13,288 9,652    
Current portion of liabilities under tax receivable agreement 0 7,777    
Total current liabilities 13,416 17,474    
Liabilities under tax receivable agreement, net of current portion 232,954 226,649    
Total liabilities 246,370 244,123    
Commitments and contingencies    
Stockholders' equity:        
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 30, 2020 and December 25, 2019, respectively. 0 0    
Additional paid-in capital 395,067 244,410    
Retained earnings 12,209 54,367    
Total stockholders' equity 407,321 298,815    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 653,691 $ 542,938    
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 Tax Assets, Net $ 285,577 $ 279,012    
Parent Company | Class A Common Stock        
Stockholders' equity:        
Common stock $ 39 $ 35    
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    
v3.20.4
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS (Details) - Deferred tax asset valuation allowance - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2020
Dec. 25, 2019
Dec. 26, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period $ 954 $ 6,925 $ 10,114
Charged to costs and expenses (2,610) (4,654) 782
Charged to other accounts 4,312 0 0
Reductions 0 (1,317) (3,971)
Balance at end of period $ 2,656 $ 954 $ 6,925