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REVENUE
 6 Months Ended
Jun. 26, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Revenue Recognition
Shack Sales
Revenue from Shack sales is recognized when payment is tendered at the point of sale, net of discounts as the performance obligation has been satisfied at that time. Sales tax collected from guests is excluded from Shack sales and the obligation is included in Other current liabilities on the Condensed Consolidated Balance Sheets until the taxes are remitted to the appropriate taxing authorities.
Delivery services are fulfilled by third-party delivery partners whether ordered through the Shack app, website (collectively, "Company-owned platforms") or through third-party delivery platforms. Revenue from orders through Company-owned platforms includes delivery fees and is recognized when the delivery partner transfers the order to the guest as the Company controls the delivery. For these sales, the Company receives payment directly from the guest at the time of sale. Revenue from orders through third-party delivery platforms is recognized when the order is transferred to the third-party delivery partner and excludes delivery fees collected by the delivery partner as the Company does not control the delivery. The Company receives payment from the delivery partner subsequent to the transfer of the order and the payment terms are short-term in nature. For all delivery sales, the Company is considered the principal and recognizes revenue on a gross basis.
The Company sells gift cards which do not have expiration dates. Revenue from gift cards is recognized when gift cards are redeemed by the guest or, in the event a gift card is not expected to be redeemed, in proportion to actual redemptions of gift cards ("gift card breakage"). The gift card breakage rate is determined from historical gift card redemption patterns. Gift card breakage income for the thirteen weeks ended June 26, 2024 and June 28, 2023 was $110 and $72, respectively. Gift card breakage income for the twenty-six weeks ended June 26, 2024 and June 28, 2023 was $244 and $178, respectively. Gift card breakage income is included in Shack sales on the Condensed Consolidated Statements of Income.
Licensing Revenue
Licensing revenue includes initial territory fees, Shack opening fees and ongoing sales-based royalty fees from licensed Shacks. Generally, the licenses granted to develop, open and operate each Shack in a specified territory are the predominant good or service transferred to the licensee and represent distinct performance obligations. Ancillary promised services, such as training and assistance during the initial opening of a Shack, are typically combined with the license and considered one performance obligation per Shack.
The Company determines the transaction price for each contract, which requires judgement as the transaction price is comprised of the initial territory fee and an estimate of the total Shack opening fees based on the estimated number of Shacks the Company expects the licensee to open. The transaction price is then allocated equally to each Shack expected to open. The performance obligation is satisfied over time, starting when a Shack opens through the end of the license term for the related Shack, therefore revenue is recognized on a straight-line basis over the license term.
Generally, payment for the initial territory fee is received upon execution of the license agreement and payment for the Shack opening fees is received either in advance of or upon opening the related Shack. These payments are initially deferred and recognized in revenue as the performance obligations are satisfied. Revenue from sales-based royalties is recognized as the related sales occur.
Revenue disaggregated by type was as follows:
Thirteen Weeks EndedTwenty-Six Weeks Ended
June 26
2024		June 28
2023		June 26
2024		June 28
2023
Shack sales$305,480 $261,810 $586,032 $506,064 
Licensing revenue:
Sales-based royalties10,624 9,712 20,257 18,490 
Initial territory and opening fees392 283 711 529 
Total revenue$316,496 $271,805 $607,000 $525,083 
The aggregate amount of the transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of June 26, 2024 was $22,978. The Company expects to recognize this amount as revenue over a long-term period, as the license term for each Shack ranges from five to twenty years. This amount excludes any variable consideration related to sales-based royalties.
Contract Balances
Contract liabilities and receivables from contracts with customers were as follows:
June 26
2024		December 27
2023
Shack sales receivables$9,399 $9,884 
Licensing receivables, net of allowance for doubtful accounts5,440 4,610 
Gift card liability2,047 2,603 
Deferred revenue, current1,328 1,192 
Deferred revenue, long-term16,777 17,157 
Revenue recognized that was included in the respective liability balances at the beginning of the period was as follows:
Thirteen Weeks EndedTwenty-Six Weeks Ended
June 26
2024		June 28
2023		June 26
2024		June 28
2023
Gift card liability
$168 $144 $587 $477 
Deferred revenue385 274 702 518