EARNINGS PER SHARE

Basic earnings per share of Class A common stock is computed by dividing net income available to Shake Shack Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income available 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.

As described in Note 1, on February 4, 2015, the SSE Holdings LLC Agreement was amended and restated to, among other things, (i) provide for a new single class of common membership interests, the LLC Interests, and (ii) exchange all of the then-existing membership interests of the Original SSE Equity Owners for LLC Interests. For purposes of calculating earnings per share, the prior period amounts have been retroactively adjusted to give effect to the above-mentioned amendment and resulting recapitalization. The computation does not consider the 5,750,000 shares of Class A common stock issued to investors in our IPO or the 339,306 shares of Class A common stock issued upon settlement of outstanding UARs in connection with the IPO.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock for the thirteen and twenty-six weeks ended July 1, 2015 and June 25, 2014.



			Thirteen Weeks Ended				Twenty-Six Weeks Ended
			July 1, 2015		June 25, 2014		July 1, 2015			June 25, 2014
Numerator:
	Net income		$	5,145	$	1,949	$	(6,115	)	$	3,041
	Less: net loss attributable to non-controlling interests		4,027		—		5,435			—
	Net income attributable to Shake Shack Inc.		$	1,118	$	1,949	$	(11,550	)	$	3,041
Denominator:
	Weighted-average shares of Class A common stock outstanding—basic		12,058		29,963		12,006			29,963
	Effect of dilutive securities:
		Restricted Class B units	—		164		—			163
		Stock options	1,281		—		—			—
	Weighted-average shares of Class A common stock outstanding—diluted		13,339		30,127		12,006			30,126

Earnings per share of Class A common stock—basic			$	0.09	$	0.07	$	(0.96	)	$	0.10
Earnings per share of Class A common stock—diluted			$	0.08	$	0.06	$	(0.96	)	$	0.10

2,600,281 stock options were excluded from the computation of diluted earnings per share of Class A common stock for the twenty-six weeks ended July 1, 2015 because the effect would have been anti-dilutive as we recorded a net loss for the period.

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 per share of Class B common stock under the two-class method has not been presented. Shares of our Class B common stock are, however, considered potentially dilutive shares of Class A common stock. After evaluating the potential dilutive effect under the if-converted and two-class methods, the 24,191,853 shares of Class B common stock outstanding as of July 1, 2015 were determined to be anti-dilutive and have therefore been excluded from the computations of diluted earnings per share of Class A common stock.