EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 26, 2024

Basic earnings per share of Class A common stock is computed by dividing Net income attributable 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 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 per share of Class A common stock (in thousands, except per share amounts):


			Thirteen Weeks Ended				Twenty-Six Weeks Ended
			June 26 2024		June 28 2023		June 26 2024		June 28 2023
Numerator:
	Net income attributable to Shake Shack Inc.—basic		$	9,668	$	6,948	$	11,708	$	5,414
	Reallocation of net income attributable to non-controlling interests from the assumed conversion of Class B shares		—		275		—		187
	Net income attributable to Shake Shack Inc.—diluted		$	9,668	$	7,223	$	11,708	$	5,601
Denominator:
	Weighted average shares of Class A common stock outstanding—basic		39,750		39,416		39,632		39,374
	Effect of dilutive securities:
		Stock options	60		79		65		79
		Performance stock units	63		6		39		11
		Restricted stock units	140		73		166		58
		Convertible Notes	1,467		1,467		1,467		1,467
		Shares of Class B common stock	—		2,845		—		2,848

	Weighted average shares of Class A common stock outstanding—diluted		41,480		43,886		41,369		43,837

Earnings per share of Class A common stock—basic			$	0.24	$	0.18	$	0.30	$	0.14
Earnings per share of Class A common stock—diluted			$	0.23	$	0.16	$	0.28	$	0.13

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 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 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 per share, except when the effect would be anti-dilutive.

The following table presents potentially dilutive securities excluded from the computations of diluted earnings per share of Class A common stock:


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26 2024		June 28 2023		June 26 2024		June 28 2023

Performance stock units	121,131	(1)	109,749	(1)	121,131	(1)	109,749	(1)

Shares of Class B common stock	2,487,936	(2)	—		2,487,936	(2)	—

(1)Number of securities outstanding at the end of the period that were excluded from the computation of diluted earnings 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.

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