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NON-CONTROLLING INTERESTS

6 Months Ended

Jun. 26, 2024

Noncontrolling Interest [Abstract]

NON-CONTROLLING INTERESTS

NON-CONTROLLING INTERESTS

Shake Shack is the primary beneficiary and sole managing member of SSE Holdings and, as a result, consolidates the financial results of SSE Holdings. The Company reports a non-controlling interest representing the economic interest 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 SSE Holdings, LLC membership interests ("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, the Company will receive a corresponding number of LLC Interests, increasing the total ownership interest in SSE Holdings. Changes in the ownership interest in SSE Holdings while the Company retains its 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:

			June 26, 2024												December 27, 2023
			LLC Interests						Ownership %						LLC Interests						Ownership %
Number of LLC Interests held by Shake Shack Inc.			39,966,973						94.1		%				39,474,315						93.3		%
Number of LLC Interests held by non-controlling interest holders			2,487,936						5.9		%				2,834,513						6.7		%
Total LLC Interests outstanding			42,454,909						100.0		%				42,308,828						100.0		%

The weighted average ownership percentages for the applicable reporting periods are used to attribute Net income and Other comprehensive income to the non-controlling interest holders and were as follows:

						Thirteen Weeks Ended												Twenty-Six Weeks Ended
						June 26 2024						June 28 2023						June 26 2024						June 28 2023
Non-controlling interest holders' weighted average ownership percentages						6.3		%				6.7		%				6.5		%				6.7		%

The following table summarizes the effects of changes in ownership of SSE Holdings on the Company's equity:

						Thirteen Weeks Ended												Twenty-Six Weeks Ended
						June 26 2024						June 28 2023						June 26 2024						June 28 2023
Net income attributable to Shake Shack Inc.						$	9,668					$	6,948					$	11,708					$	5,414
Other comprehensive loss:
			Unrealized holding loss on foreign currency translation adjustment			—						—						(1)						(4)
Transfers (to) from non-controlling interests:
			Increase in additional paid-in capital as a result of the redemption of LLC Interests			2,953						—						3,239						194
			Increase (decrease) in additional paid-in capital as a result of activity under stock compensation plan			(320)						145						(5,897)						(2,554)
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.						$	12,301					$	7,093					$	9,049					$	3,050

The following table summarizes the LLC Interests activity:

						Thirteen Weeks Ended												Twenty-Six Weeks Ended
						June 26 2024						June 28 2023						June 26 2024						June 28 2023
LLC Interests activity under the Company's stock compensation plan
			Number of LLC Interests received by Shake Shack Inc.			18,514						44,341						146,081						139,248
Redemption and acquisition of LLC Interests
			Number of LLC Interests redeemed by non-controlling interest holders			313,077						—						346,577						25,000
			Number of LLC Interests received by Shake Shack Inc.			313,077						—						346,577						25,000
Issuance of Class A common stock
			Shares of Class A common stock issued in connection with redemptions of LLC Interests			313,077						—						346,577						25,000
Cancellation of Class B common stock
			Shares of Class B common stock surrendered and canceled			313,077						—						346,577						25,000

X

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 810
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//810/tableOfContent

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- References

No definition available.

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