EARNINGS PER SHARE

3 Months Ended

Mar. 30, 2022

EARNINGS (LOSS) PER SHAREThe following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings (loss) per share of Class A common stock (in thousands, except per share amounts) for the thirteen weeks ended March 30, 2022 and March 31, 2021.


			Thirteen Weeks Ended
			March 30 2022		March 31 2021
Numerator:
	Net income (loss) attributable to Shake Shack Inc.—basic		$	(10,162)	$	1,309
	Reallocation of net loss attributable to non-controlling interests from the assumed conversion of Class B shares		(1,120)		(734)
	Net income (loss) attributable to Shake Shack Inc.—diluted		$	(11,282)	$	575
Denominator:
	Weighted average shares of Class A common stock outstanding—basic		39,163		38,948
	Effect of dilutive securities:
		Stock options	—		232
		Performance stock units	—		53
		Restricted stock units	—		164
		Convertible Notes	—		451
		Shares of Class B common stock	—		2,941

	Weighted average shares of Class A common stock outstanding—diluted		39,163		42,789

Earnings (loss) per share of Class A common stock—basic			$	(0.26)	$	0.03
Earnings (loss) per share of Class A common stock—diluted			$	(0.26)	$	0.01

The effect of potential share settlement of the Convertible Notes outstanding for the period is included as potentially dilutive shares of Class A common stock under application of the if-converted method in the computation of diluted earnings (loss) per share, except when the effect would be anti-dilutive. Refer to Note 6, Debt, for additional information.

Shares of Class B common stock do not share in the earnings or losses of Shake Shack and are therefore not participating securities. As such, separate presentation of basic and diluted earnings (loss) per share of Class B common stock under the two-class method has not been presented. However, shares of Class B common stock outstanding for the period are considered potentially dilutive shares of Class A common stock under application of the if-converted method and are included in the computation of diluted earnings (loss) per share, except when the effect would be anti-dilutive.

The following table presents potentially dilutive securities excluded from the computations of diluted earnings (loss) per share of Class A common stock for the thirteen weeks ended March 30, 2022 and March 31, 2021.


	Thirteen Weeks Ended
	March 30 2022		March 31 2021
Stock options	149,731	(1)	1,698	(2)
Performance stock units	165,108	(1)	51,974	(3)
Restricted stock units	401,716	(1)	—
Shares of Class B common stock	2,911,587	(1)	—
Convertible notes	1,466,975	(1)	—

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

(2)Number of securities outstanding at the end of the period that were excluded from the computation of diluted earnings (loss) per share of Class A common stock because the exercise price of the stock options exceeded the average market price of our Class A common stock during the period ("out-of-the-money").

(3)Number of securities outstanding at the end of the period that were excluded from the computation of diluted earnings (loss) per share of Class A common stock because the performance conditions associated with these awards were not met assuming the end of the reporting period was the end of the performance period.