Shake Shack (SHAK) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document and Entity Information - shares	3 Months Ended
	Mar. 29, 2017	Apr. 26, 2017
Document Information [Line Items]
Document type	10-Q
Amendment flag	false
Document period end date	Mar. 29, 2017
Document fiscal year focus	2,017
Document fiscal period focus	Q1
Entity registrant name	Shake Shack Inc.
Entity central index key	1,620,533
Current fiscal year end date	--12-27
Entity filer category	Accelerated Filer
Entity current reporting status	Yes
Class A Common Stock
Document Information [Line Items]
Entity common stock, shares outstanding (in shares)		25,757,064
Class B Common Stock
Document Information [Line Items]
Entity common stock, shares outstanding (in shares)		10,879,592

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 29, 2017	Dec. 28, 2016
Current assets:
Cash and cash equivalents	$ 15,711	$ 11,607
Marketable Securities, Current	57,840	62,040
Accounts receivable	5,044	6,006
Inventories	903	806
Prepaid expenses and other current assets	4,302	3,485
Total current assets	83,800	83,944
Property and equipment, net	147,485	136,264
Deferred tax asset, non-current	319,530	313,207
Other assets	4,613	4,779
TOTAL ASSETS	555,428	538,194
Current liabilities:
Accounts payable	5,663	6,921
Accrued expenses	7,699	8,538
Accrued wages and related liabilities	4,027	6,084
Other current liabilities	11,427	10,173
Total current liabilities	28,816	31,716
Deemed Landlord Financing Liability	8,016	2,007
Deferred rent	31,354	31,107
Liabilities under tax receivable agreement, net of current portion	274,259	267,902
Other long-term liabilities	1,512	4,109
Total liabilities	343,957	336,841
Stockholders' equity:
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of March 29, 2017 and December 28, 2016.	0	0
Additional paid-in capital	141,940	135,448
Retained earnings	18,986	16,719
Accumulated other comprehensive loss	(19)	(15)
Total stockholders' equity attributable to Shake Shack Inc.	160,944	152,188
Non-controlling interests	50,527	49,165
Total equity	211,471	201,353
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	555,428	538,194
Class A Common Stock
Stockholders' equity:
Common stock	26	25
Class B Common Stock
Stockholders' equity:
Common stock	$ 11	$ 11

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Mar. 29, 2017	Dec. 28, 2016
Preferred Stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A Common Stock
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares, issued (in shares)	25,681,875	25,151,384
Common Stock, Shares, Outstanding	25,681,875	25,151,384
Class B Common Stock
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	35,000,000	35,000,000
Common stock, shares, issued (in shares)	10,929,592	11,253,592
Common Stock, Shares, Outstanding	10,929,592	11,253,592

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Income Statement [Abstract]
Shack sales	$ 74,155	$ 52,153
Licensing revenue	2,594	2,012
TOTAL REVENUE	76,749	54,165
Shack-level operating expenses:
Food and paper costs	21,174	15,032
Labor and related expenses	20,460	13,162
Other operating expenses	7,665	4,919
Occupancy and related expenses	6,176	4,323
General and administrative expenses	8,470	6,884
Depreciation expense	4,748	3,106
Pre-opening costs	2,415	2,025
Loss on disposal of property and equipment	13	0
TOTAL EXPENSES	71,121	49,451
OPERATING INCOME	5,628	4,714
Other income, net	195	23
Interest Expense	303	87
INCOME BEFORE INCOME TAXES	5,520	4,650
Income tax expense	1,658	1,299
NET INCOME	3,862	3,351
Less: net income attributable to non-controlling interests	1,595	1,889
NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC.	$ 2,267	$ 1,462
Earnings per share of Class A common stock:
Basic (in dollars per share)	$ 0.09	$ 0.07
Diluted (in dollars per share)	$ 0.09	$ 0.07
Weighted-average shares of Class A common stock outstanding:
Basic (in shares)	25,376	20,353
Diluted (in shares)	25,955	20,812

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands		3 Months Ended
		Mar. 29, 2017	Mar. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income		$ 3,862	$ 3,351
Available-for-sale securities:
Change in net unrealized holding losses	[1]	(9)	(2)
Less: reclassification adjustments for net realized losses included in net income	[1]	3	0
OTHER COMPREHENSIVE LOSS		(6)	(2)
COMPREHENSIVE INCOME		3,856	3,349
Less: comprehensive income attributable to non-controlling interests		1,593	1,888
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAKE SHACK INC.		$ 2,263	$ 1,461
[1]	Net of tax benefit of $0 for the thirteen weeks ended March 29, 2017 and March 30, 2016.

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($)	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Statement of Comprehensive Income [Abstract]
Income tax benefit	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - 3 months ended Mar. 29, 2017 - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Common stockClass A Common Stock	Common stockClass B Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Non- Controlling Interest
Beginning balance (shares) at Dec. 28, 2016		25,151,384	11,253,592	25,151,384	11,253,592
Beginning balance at Dec. 28, 2016	$ 201,353			$ 25	$ 11	$ 135,448	$ 16,719	$ (15)	$ 49,165
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,862						2,267		1,595
Other comprehensive loss:
Net unrealized losses related to available-for-sale securities	(6)							(4)	(2)
Equity-based compensation	1,289					1,289
Stock option exercises (in shares)				206,491
Activity under stock compensation plans	4,317			$ 1		2,870			1,446
Redemption of LLC Interests (in shares)				324,000	(324,000)
Redemption of LLC Interests	0			$ 0	$ 0	1,322			(1,322)
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	1,011					1,011
Distributions paid to non-controlling interest holders	(355)								355
Ending balance (shares) at Mar. 29, 2017		25,681,875	10,929,592	25,681,875	10,929,592
Ending balance at Mar. 29, 2017	$ 211,471			$ 26	$ 11	$ 141,940	$ 18,986	$ (19)	$ 50,527

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
OPERATING ACTIVITIES
Net income (including amounts attributable to non-controlling interests)	$ 3,862,000	$ 3,351,000
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation expense	4,748,000	3,106,000
Equity-based compensation	1,249,000	1,030,000
Deferred income taxes	(1,009,000)	3,000
Non-cash interest expense	71,000	70,000
Excess tax benefits on equity-based compensation	0	(28,000)
Loss on sale of marketable securities	3,000	0
Loss on disposal of property and equipment	(13,000)	0
Changes in operating assets and liabilities:
Accounts receivable	2,312,000	1,019,000
Inventories	(97,000)	(78,000)
Prepaid expenses and other current assets	(505,000)	345,000
Other assets	(520,000)	(234,000)
Accounts payable	400,000	561,000
Accrued expenses	1,029,000	(89,000)
Accrued wages and related liabilities	(2,057,000)	(2,086,000)
Other current liabilities	62,000	202,000
Deferred rent	164,000	1,354,000
Other long-term liabilities	(46,000)	(48,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES	9,679,000	8,478,000
INVESTING ACTIVITIES
Purchases of property and equipment	(13,132,000)	(14,128,000)
Purchases of marketable securities	(325,000)	0
Sales of marketable securities	5,155,000	0
NET CASH USED IN INVESTING ACTIVITIES	(8,302,000)	(14,128,000)
FINANCING ACTIVITIES
Proceeds from Deemed Landlord Financing	293,000	0
Payments On Deemed Landlord Financing	(36,000)	0
Distributions paid to non-controlling interest holders	(355,000)	0
Tax Receivable Agreement Payments To Related Parties	(1,471,000)	0
Proceeds from stock option exercises	4,296,000	628,000
Excess tax benefits from equity-based compensation	0	28,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	2,727,000	656,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	4,104,000	$ (4,994,000)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	11,607,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 15,711,000

NATURE OF OPERATIONS

NATURE OF OPERATIONS	3 Months Ended
	Mar. 29, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS Shake Shack Inc. ("we," "us," "our," "Shake Shack" and the "Company") was formed on September 23, 2014 as a Delaware corporation for the purpose of facilitating an initial public offering and other related transactions in order to carry on the business of SSE Holdings, LLC and its subsidiaries ("SSE Holdings"). On February 4, 2015, we completed an initial public offering ("IPO") of 5,750,000 shares of our Class A common stock at a public offering price of $21.00 per share. We used the net proceeds from the IPO to purchase newly-issued membership interests from SSE Holdings ("LLC Interests"). Following the organizational transactions completed in connection with the IPO, we became the sole managing member of SSE Holdings. As sole managing member, we operate and control all of the business and affairs of SSE Holdings and, as a result, consolidate the financial results of SSE Holdings. We report a non-controlling interest representing the economic interest in SSE Holdings held by the other members of SSE Holdings. As of March 29, 2017 we owned 70.1% of SSE Holdings. Unless the context otherwise requires, "we," "us," "our," "Shake Shack," the "Company," and other similar references, refer to Shake Shack Inc. and, unless otherwise stated, all of its subsidiaries, including SSE Holdings. We operate and license Shake Shack restaurants ("Shacks"), which serve hamburgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer, wine and more. As of March 29, 2017 , there were 127 Shacks in operation, system-wide, of which 71 were domestic company-operated Shacks, seven were domestic licensed Shacks and 49 were international licensed Shacks.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 29, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Shake Shack Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and on a basis consistent in all material respects with the accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 28, 2016 ("2016 Form 10-K"). In our opinion, all adjustments, which are normal and recurring in nature, necessary for a fair presentation of our financial position and results of operation have been included. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year. The accompanying Condensed Consolidated Balance Sheet as of December 28, 2016 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our 2016 Form 10-K. SSE Holdings is considered a VIE. Shake Shack Inc. is the primary beneficiary as we have the majority economic interest in SSE Holdings and, as the sole managing member, have decision making authority that significantly affects the economic performance of the entity, while the limited partners have no substantive kick-out or participating rights. As a result, we consolidate SSE Holdings. The assets and liabilities of SSE Holdings represent substantially all of our consolidated assets and liabilities with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement. As of March 29, 2017 and December 28, 2016 , the net assets of SSE Holdings were $169,267 and $158,845 , respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreements. See Note 7 for more information. Fiscal Year We operate on a 52/53 week fiscal year ending on the last Wednesday in December. Fiscal 2017 contains 52 weeks and ends on December 27, 2017 . Fiscal 2016 contained 52 weeks and ended on December 28, 2016 . Unless otherwise stated, references to years in this report relate to fiscal years. Use of Estimates The preparation of these condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements We adopted the Accounting Standards Updates (“ASUs”) summarized below in fiscal 2017. The effects of adoption did not have a material impact on our consolidated financial statements. Accounting Standards Update (“ASU”) Description Date Adopted Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) This standard simplifies certain aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, certain classifications on the statement of cash flows, and an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur. Upon adoption, we made such policy election. The adoption methodology applied varied based on each applicable provision of the standard, and none of the provisions had a material impact on our consolidated financial statements. December 29, 2016 Simplifying the Measurement of Inventory (ASU 2015-11) This standard applies to inventory measured using methods other than last-in, first-out (LIFO) or the retail method, and requires entities to measure such inventory at the lower of cost or net realizable value. It should be applied prospectively. December 29, 2016 Recently Issued Accounting Pronouncements Accounting Standards Update (“ASU”) Description Expected Impact Effective Date Statement of Cash Flows: Classification of Certain Cash Receipts and Payments (ASU 2016-15) This standard provides guidance on eight specific cash flow issues with the objective of reducing diversity in practice. It should be applied retrospectively to each period presented, subject to certain conditions. We are currently evaluating the impact this standard will have on our consolidated financial statements. December 28, 2017 Accounting Standards Update (“ASU”) Description Expected Impact Effective Date Recognition and Measurement of Financial Assets and Financial Liabilities For public business entities, this standard requires: (i) certain equity investments to be measured at fair value with changes in fair value recognized in net income; (ii) a qualitative assessment to identify impairment of equity investments without readily determinable fair values; (iii) elimination of the requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet; (iv) use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) separate presentation of financial assets and liabilities by measurement category and form of financial asset in the financial statements; and (vii) an entity to evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The standard should be applied by means of a cumulative-effect adjustment to the balance sheet at the beginning of the fiscal year of adoption. Early adoption is permitted, subject to certain conditions resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value. We are currently evaluating the impact this standard will have on our consolidated financial statements. December 28, 2017 Revenue from Contracts with Customers and related standards This standard supersedes the existing revenue recognition guidance and provides a new framework for recognizing revenue. The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard also requires significantly more comprehensive disclosures than the existing standard. Guidance subsequent to ASU 2014-09 has been issued to clarify various provisions in the standard, including principal versus agent considerations, identifying performance obligations, licensing transactions, as well as various technical corrections and improvements. This standard may be adopted using either a retrospective or modified retrospective method. Early adoption is permitted. We are currently in the process of evaluating the impact this standard is expected to have on our consolidated financial statements. It is still too early in our process to determine the magnitude of the potential impact. However, based on our preliminary assessment, we believe that further evaluation of the initial territory fees associated with our licensing agreements may reveal differences in the timing of revenue recognition from current policy, but that it is likely that recognition of sales-based royalties will not significantly change. In addition to further evaluating each of our licensing agreements, we are in the process of assessing whether any sales promotions or discounts we currently offer related to our Shack sales could be considered separate performance obligations. As we continue our evaluation, we will further clarify the expected impact of the adoption of the standard. December 28, 2017 Leases (ASU 2016-02) This standard establishes a new lease accounting model, which introduces the recognition of lease assets and liabilities for those leases classified as operating leases under previous GAAP. It should be applied using a modified retrospective approach, with the option to elect various practical expedients. Early adoption is permitted. We are currently evaluating the impact this standard will have on our consolidated financial statements. December 27, 2018

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 29, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis as of March 29, 2017 and December 28, 2016 , and indicate the classification within the fair value hierarchy. Cash, Cash Equivalents and Marketable Securities The following tables summarize our cash, cash equivalents and marketable securities by significant investment categories as of March 29, 2017 and December 28, 2016 : March 29, 2017 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 10,683 $ — $ — $ 10,683 $ 10,683 $ — Level 1: Money market funds 5,028 — — 5,028 5,028 — Mutual funds 55,393 — — 55,393 — 55,393 Level 2: Corporate debt securities (1) 2,480 2 (35 ) 2,447 2,447 Total $ 73,584 $ 2 $ (35 ) $ 73,551 $ 15,711 $ 57,840 December 28, 2016 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 6,322 $ — $ — $ 6,322 $ 6,322 $ — Level 1: Money market funds 5,285 — — 5,285 5,285 — Mutual funds 60,232 — — 60,232 — 60,232 Level 2: Corporate debt securities (1) 2,473 3 (30 ) 2,446 — 2,446 Total $ 74,312 $ 3 $ (30 ) $ 74,285 $ 11,607 $ 62,678 (1) Corporate debt securities were measured at fair value using a market approach utilizing observable prices for identical securities or securities with similar characteristics and inputs that are observable or can be corroborated by observable market data. Net unrealized losses on available-for-sale securities totaling $33 and $27 were included in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheet as of March 29, 2017 and December 28, 2016 , respectively. The following tables summarize the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 29, 2017 and December 28, 2016 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position: March 29, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Money market funds $ — $ — $ — $ — $ — $ — Mutual funds — — — — — — Corporate debt securities 1,117 (6 ) 637 (29 ) 1,754 (35 ) Total $ 1,117 $ (6 ) $ 637 $ (29 ) $ 1,754 $ (35 ) December 28, 2016 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Money market funds $ — $ — $ — $ — $ — $ — Mutual funds — — — — — — Corporate debt securities 1,244 (10 ) 540 (20 ) 1,784 (30 ) Total $ 1,244 $ (10 ) $ 540 $ (20 ) $ 1,784 $ (30 ) A summary of other income from available-for-sale securities recognized during the thirteen weeks ended March 29, 2017 and March 30, 2016 is as follows: Thirteen Weeks Ended March 29 March 30 Available-for-sale securities: Dividend income $ 178 $ — Interest income 20 23 Loss on investments 3 — Total other income, net $ 201 $ 23 A summary of available-for-sale securities sold and gross realized gains and losses recognized during the thirteen weeks ended March 29, 2017 and March 30, 2016 is as follows: Thirteen Weeks Ended March 29 March 30 Available-for-sale securities: Gross proceeds from sales and redemptions $ 155 $ — Cost basis of sales and redemptions 158 — Gross realized gains included in net income — — Gross realized losses included in net income (3 ) — Amounts reclassified out of accumulated other comprehensive loss 3 — Realized gains and losses are determined on a specific identification method and are included in other income,net on the Condensed Consolidated Statements of Income . The estimated fair value of our investments in corporate debt securities that are accounted for as available-for-sale securities are all due within one year and are included within marketable securities on the Condensed Consolidated Balance Sheets. We periodically review our marketable securities for other-than-temporary impairment. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and our intent to sell. For our debt securities, we also consider whether (i) it is more likely than not that we will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. As of March 29, 2017 and December 28, 2016 , the declines in the market value of our marketable securities investment portfolio were considered to be temporary in nature. Other Financial Instruments The carrying value of our other financial instruments, including accounts receivable, accounts payable, and accrued expenses as of March 29, 2017 and December 28, 2016 approximated their fair value due to the short-term nature of these financial instruments. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Assets and liabilities that are measured at fair value on a non-recurring basis include our long-lived assets and indefinite-lived intangible assets. There were no impairments recognized during the thirteen weeks ended March 29, 2017 and March 30, 2016 .

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 29, 2017
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories as of March 29, 2017 and December 28, 2016 consisted of the following: March 29 December 28 Food $ 577 $ 543 Wine 54 47 Beer 58 58 Beverages 91 79 Retail merchandise 123 79 Inventories $ 903 $ 806

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 29, 2017
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT Property and equipment as of March 29, 2017 and December 28, 2016 consisted of the following: March 29 December 28 Leasehold improvements $ 131,817 $ 120,629 Landlord funded assets 3,296 — Equipment 25,411 23,194 Furniture and fixtures 7,987 7,342 Computer equipment and software 9,582 8,710 Construction in progress (includes assets under construction from deemed landlord financing) 11,465 13,510 Property and equipment, gross 189,558 173,385 Less: accumulated depreciation 42,073 37,121 Property and equipment, net $ 147,485 $ 136,264

SUPPLEMENTAL BALANCE SHEET INFO

SUPPLEMENTAL BALANCE SHEET INFORMATION	3 Months Ended
	Mar. 29, 2017
Supplemental Balance Sheet Disclosures [Abstract]
SUPPLEMENTAL BALANCE SHEET INFORMATION	SUPPLEMENTAL BALANCE SHEET INFORMATION The components of other current liabilities as of March 29, 2017 and December 28, 2016 are as follows: March 29 December 28 Sales tax payable $ 1,498 $ 1,324 Current portion of liabilities under tax receivable agreement 3,110 4,580 Gift card liability 1,083 1,153 Deferred compensation 2,350 — Other 3,386 3,116 Other current liabilities $ 11,427 $ 10,173

DEBT

DEBT	3 Months Ended
	Mar. 29, 2017
Debt Disclosure [Abstract]
DEBT	DEBT In January 2015, we executed a Third Amended and Restated Credit Agreement, which became effective on February 4, 2015 (together with the prior agreements and amendments, and as further amended, the "Revolving Credit Facility"), which provides for a revolving total commitment amount of $50,000 , of which $20,000 is available immediately. The Revolving Credit Facility will mature and all amounts outstanding will be due and payable five years from the effective date. The Revolving Credit Facility permits the issuance of letters of credit upon our request of up to $10,000 . Borrowings under the Revolving Credit Facility bear interest at either: (i) LIBOR plus a percentage ranging from 2.3% to 3.3% or (ii) the prime rate plus a percentage ranging from 0.0% to 0.8% , depending on the type of borrowing made under the Revolving Credit Facility. As of March 29, 2017 and December 28, 2016 , there were no amounts outstanding under the Revolving Credit Facility. As of March 29, 2017 , we had $19,920 of availability under the Revolving Credit Facility, after giving effect to $80 in outstanding letters of credit. The Revolving Credit Facility is secured by a first-priority security interest in substantially all of the assets of SSE Holdings and the guarantors. The obligations under the Revolving Credit Facility are guaranteed by each of SSE Holdings' wholly-owned domestic subsidiaries (with certain exceptions). The Revolving Credit Facility contains a number of covenants that, among other things, limit our ability to, subject to specified exceptions, incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve ourselves; pay dividends or make distributions; engage in businesses that are not in a related line of business; make loans, advances or guarantees; engage in transactions with affiliates; and make investments. In addition, the Revolving Credit Facility contains certain cross-default provisions. We are required to maintain a specified consolidated fixed-charge coverage ratio and a specified funded net debt to adjusted EBITDA ratio, both as defined under the Revolving Credit Facility. As of March 29, 2017 , we were in compliance with all covenants. As of March 29, 2017 and December 28, 2016 we had deemed landlord financing liabilities of $8,016 and $2,007 , respectively, for certain leases where we are involved in the construction of leased assets and are considered the accounting owner of the construction project. Total interest costs incurred were $324 and $87 for the thirteen weeks ended March 29, 2017 and March 30, 2016 , respectively. During the thirteen weeks ended March 29, 2017 we capitalized $21 into property and equipment. No amounts were capitalized for the thirteen weeks ended March 30, 2016 .

NON-CONTROLLING INTERESTS

NON-CONTROLLING INTERESTS	3 Months Ended
	Mar. 29, 2017
Noncontrolling Interest [Abstract]
NON-CONTROLLING INTERESTS	NON-CONTROLLING INTERESTS We are the sole managing member of SSE Holdings and, as a result, consolidate the financial results of SSE Holdings. We report a non-controlling interest representing the economic interest in SSE Holdings 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 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, we will receive a corresponding number of LLC Interests, increasing our total ownership interest in SSE Holdings. Changes in our ownership interest in SSE Holdings while we retain our 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 as of March 29, 2017 and December 28, 2016 . March 29, 2017 December 28, 2016 LLC Interests Ownership % LLC Interests Ownership % Number of LLC Interests held by Shake Shack Inc. 25,681,875 70.1 % 25,151,384 69.1 % Number of LLC Interests held by non-controlling interest holders 10,929,592 29.9 % 11,253,592 30.9 % Total LLC Interests outstanding 36,611,467 100.0 % 36,404,976 100.0 % The weighted average ownership percentages for the applicable reporting periods are used to attribute net income and other comprehensive loss to Shake Shack Inc. and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentage for the thirteen weeks ended March 29, 2017 and March 30, 2016 was 30.4% and 43.9% , respectively. The following table summarizes the effects of changes in ownership in SSE Holdings on our equity during the thirteen weeks ended March 29, 2017 and March 30, 2016 . Thirteen Weeks Ended March 29 March 30 Net income attributable to Shake Shack Inc. $ 2,267 $ 1,462 Other comprehensive loss: Unrealized holding losses on available-for-sale securities (4 ) (1 ) Transfers (to) from non-controlling interests: Increase in additional paid-in capital as a result of the redemption of LLC Interests 1,322 4,642 Increase in additional paid-in capital as a result of activity under stock compensation plans 2,870 216 Total effect of changes in ownership interest on equity attributable to Shake Shack Inc. $ 6,455 $ 6,319 During thirteen weeks ended March 29, 2017 , an aggregate of 324,000 LLC Interests were redeemed by non-controlling interest holders for newly-issued shares of Class A common stock, and we received 324,000 LLC Interests in connection with these redemptions, increasing our total ownership interest in SSE Holdings. During the thirteen weeks ended March 30, 2016 an aggregate of 1,877,855 LLC Interests were redeemed by non-controlling interest holders for newly-issued shares of Class A common stock, and we received 1,877,855 LLC Interests in connection with these redemptions, increasing our total ownership interest in SSE Holdings. During thirteen weeks ended March 29, 2017 and March 30, 2016 , we received an aggregate of 206,491 and 33,070 LLC Interests, respectively, in connection with the activity under our stock compensation plan.

EQUITY-BASED COMPENSATION

EQUITY-BASED COMPENSATION	3 Months Ended
	Mar. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EQUITY-BASED COMPENSATION	EQUITY-BASED COMPENSATION A summary of equity-based compensation expense recognized during the thirteen weeks ended March 29, 2017 and March 30, 2016 is as follows: Thirteen Weeks Ended March 29 March 30 Stock options $ 964 $ 1,030 Performance stock units 285 — Equity-based compensation expense $ 1,249 $ 1,030 Total income tax benefit recognized related to equity-based compensation $ 51 $ 31 Amounts are included in general and administrative expense and labor and related expenses on the Condensed Consolidated Statements of Income .

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 29, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES We are the sole managing member of SSE Holdings, and as a result, consolidate the financial results of SSE Holdings. SSE Holdings is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, SSE Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by SSE Holdings is passed through to and included in the taxable income or loss of its members, including us, on a pro rata basis. We are subject to U.S. federal income taxes, in addition to state and local income taxes with respect to our allocable share of any taxable income or loss of SSE Holdings, as well as any stand-alone income or loss generated by Shake Shack Inc. We are also subject to withholding taxes in foreign jurisdictions. Income Tax Expense A reconciliation of income tax expense computed at the U.S. federal statutory income tax rate to the recognized income tax expense is as follows: Thirteen Weeks Ended March 29 March 30 Expected U.S. federal income taxes at statutory rate $ 1,932 35.0 % $ 1,581 34.0 % State and local income taxes, net of federal benefit 349 6.3 % 272 5.8 % Foreign withholding taxes 186 3.4 % 240 5.2 % Tax credits (130 ) (2.4 )% (39 ) (0.8 )% Non-controlling interest (679 ) (12.3 )% (755 ) (16.3 )% Income tax expense $ 1,658 30.0 % $ 1,299 27.9 % Our effective income tax rates for the thirteen weeks ended March 29, 2017 and March 30, 2016 were 30.0% and 27.9% , respectively. The increase in our effective income tax rate for the period is primarily due to an increase in our ownership interest in SSE Holdings, partially offset by higher tax credits. As our ownership interest in SSE Holdings increases, our share of the taxable income of SSE Holdings also increases. Our weighted-average ownership interest in SSE Holdings was 69.6% and 56.1% for the thirteen weeks ended March 29, 2017 and March 30, 2016 , respectively. Deferred Tax Assets and Liabilities During the thirteen weeks ended March 29, 2017 , we acquired an aggregate of 530,491 LLC Interests in connection with the redemption of LLC Interests and activity relating to our stock compensation plan. We recognized a deferred tax asset in the amount of $5,310 associated with the basis difference in our investment in SSE Holdings upon acquisition of these LLC Interests. As of March 29, 2017 , the total deferred tax asset related to the basis difference in our investment in SSE Holdings was $216,281 . However, a portion of the total basis difference will only reverse upon the eventual sale of our interest in SSE Holdings, which we expect would result in a capital loss. As of March 29, 2017 , we established a valuation allowance in the amount of $16,077 against the deferred tax asset to which this portion relates. During the thirteen weeks ended March 29, 2017 , we also recognized $2,567 of deferred tax assets related to additional tax basis increases generated from expected future payments under the Tax Receivable Agreement and related deductions for imputed interest on such payments. See "—Tax Receivable Agreement" for more information. We evaluate the realizability of our deferred tax assets on a quarterly basis and establish valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized. As of March 29, 2017 , we concluded, based on the weight of all available positive and negative evidence, that all of our deferred tax assets (except for those deferred tax assets described above relating to basis differences that are expected to result in a capital loss upon the eventual sale of our interest in SSE Holdings) are more likely than not to be realized. As such, no additional valuation allowance was recognized. Uncertain Tax Positions No uncertain tax positions existed as of March 29, 2017 . Shake Shack Inc. was formed in September 2014 and did not engage in any operations prior to the IPO and related organizational transactions. Shake Shack Inc. first filed tax returns for tax year 2014, which is the first tax year subject to examination by taxing authorities for U.S. federal and state income tax purposes. Additionally, although SSE Holdings is treated as a partnership for U.S. federal and state income taxes purposes, it is still required to file an annual U.S. Return of Partnership Income, which is subject to examination by the Internal Revenue Service ("IRS"). The statute of limitations has expired for tax years through 2012 for SSE Holdings. Tax Receivable Agreement Pursuant to our election under Section 754 of the Internal Revenue Code (the "Code"), we expect to obtain an increase in our share of the tax basis in the net assets of SSE Holdings when LLC Interests are redeemed or exchanged by the other members of SSE Holdings. We plan to make an election under Section 754 of the Code for each taxable year in which a redemption or exchange of LLC Interest occurs. We intend to treat any redemptions and exchanges of LLC Interests as direct purchases of LLC Interests for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that we would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. On February 4, 2015, we entered into a tax receivable agreement with certain of the then-existing members of SSE Holdings (the "Tax Receivable Agreement") that provides for the payment by us of 85% of the amount of any tax benefits that we actually realize, or in some cases are deemed to realize, as a result of (i) increases in our share of the tax basis in the net assets of SSE Holdings resulting from any redemptions or exchanges of LLC Interests, (ii) tax basis increases attributable to payments made under the Tax Receivable Agreement, and (iii) deductions attributable to imputed interest pursuant to the Tax Receivable Agreement (the "TRA Payments"). We expect to benefit from the remaining 15% of any tax benefits that we may actually realize. The TRA Payments are not conditioned upon any continued ownership interest in SSE Holdings or us. The rights of each SSE Holdings member party under the Tax Receivable Agreement are assignable to transferees of its LLC Interests. During the thirteen weeks ended March 29, 2017 , we acquired an aggregate of 324,000 LLC Interests in connection with the redemption of LLC Interests, which resulted in an increase in the tax basis of our investment in SSE Holdings subject to the provisions of the Tax Receivable Agreement. We recognized an additional liability in the amount of $6,357 for the TRA Payments due to the redeeming members, representing 85% of the aggregate tax benefits we expect to realize from the tax basis increases related to the redemption of LLC Interests, after concluding it was probable that such TRA Payments would be paid based on our estimates of future taxable income. During the thirteen weeks ended March 29, 2017 , payments of $1,471 , inclusive of interest, were made to the members of SSE Holdings pursuant to the Tax Receivable Agreement. No amounts were paid to the members during the thirteen weeks ended March 30, 2016 . As of March 29, 2017 , the total amount of TRA Payments due under the Tax Receivable Agreement, was $277,370 , of which $3,110 was included in other current liabilities on the Condensed Consolidated Balance Sheet. See Note 13 for more information relating to our liabilities under the Tax Receivable Agreement.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 29, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	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. 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 weeks ended March 29, 2017 and March 30, 2016 . Thirteen Weeks Ended March 29 March 30 Numerator: Net income $ 3,862 $ 3,351 Less: net income attributable to non-controlling interests 1,595 1,889 Net income attributable to Shake Shack Inc. $ 2,267 $ 1,462 Denominator: Weighted-average shares of Class A common stock outstanding—basic 25,376 20,353 Effect of dilutive securities: Stock options 552 459 Performance stock units 27 — Weighted-average shares of Class A common stock outstanding—diluted 25,955 20,812 Earnings (loss) per share of Class A common stock—basic $ 0.09 $ 0.07 Earnings (loss) per share of Class A common stock—diluted $ 0.09 $ 0.07 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 10,929,592 shares of Class B common stock outstanding as of March 29, 2017 and the 14,582,886 share of Class B common stock outstanding as of March 30, 2016 were determined to be anti-dilutive and have therefore been excluded from the computations of diluted earnings per share of Class A common stock.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	3 Months Ended
	Mar. 29, 2017
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	SUPPLEMENTAL CASH FLOW INFORMATION The following table sets forth supplemental cash flow information for the thirteen weeks ended March 29, 2017 and March 30, 2016 : Thirteen Weeks Ended March 29 March 30 Cash paid for: Income taxes, net of refunds $ 1,093 $ 475 Interest, net of amounts capitalized 19 15 Non-cash investing activities: Accrued purchases of property and equipment 4,415 3,133 Capitalized landlord assets for leases where we are deemed the accounting owner 4,545 — Capitalized equity-based compensation 40 30 Non-cash financing activities: Class A common stock issued in connection with the redemption of LLC Interests — 2 Cancellation of Class B common stock in connection with the redemption of LLC Interests — (2 ) Establishment of liabilities under tax receivable agreement 6,357 34,920

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Lease Commitments We are obligated under various operating leases for Shacks and our home office space, expiring in various years through 2035. Under certain of these leases, we are liable for contingent rent based on a percentage of sales in excess of specified thresholds and are typically responsible for our proportionate share of real estate taxes, common area maintenance charges and utilities. As security under the terms of several of our leases, we are obligated under letters of credit totaling $160 as of March 29, 2017 . The letters of credit expire on April 23, 2018 and February 28, 2026. In addition, in December 2013, we entered into an irrevocable standby letter of credit in conjunction with our home office lease in the amount of $80 . The letter of credit expires in September 2017 and renews automatically for one -year periods through September 30, 2019. Purchase Commitments Purchase obligations include legally binding contracts, including commitments for the purchase, construction or remodeling of real estate and facilities, firm minimum commitments for inventory purchases, equipment purchases, marketing-related contracts, software acquisition/license commitments and service contracts. These obligations are generally short-term in nature and are recorded as liabilities when the related goods are received or services rendered. We also enter into long-term, exclusive contracts with certain vendors to supply us with food, beverages and paper goods, obligating us to purchase specified quantities. Legal Contingencies In November 2015, we participated in a voluntary mediation with counsel representing two former Shake Shack managers, who alleged that we improperly classified our restaurant managers as exempt from overtime protections. At the conclusion of the mediation, the parties mutually agreed to fully and finally resolve the matter by settling, rather than litigating. In connection with the settlement, the parties entered into a memorandum of understanding, pursuant to which we agreed to create a settlement fund in the amount of $750 and, in exchange for their participation in the settlement fund, all participating employees (current and former) will be required to release Shake Shack from all federal and/or state wage and hour claims that may exist through the settlement date. On March 11, 2016, as required by the memorandum of understanding, the parties entered into a settlement agreement in the amount of $750 million. To facilitate the resolution of the matter, the parties coordinated the filing by the plaintiff's counsel of a Complaint on March 17, 2016 with the Supreme Court of the State of New York (the “Court”). On October 25, 2016, the Court granted preliminary approval of the settlement agreement. On December 13, 2016, all eligible class members were mailed the notice of settlement, and the deadline to opt-out or object was January 27, 2017. On March 7, 2017, the Court held a fairness hearing, at which time it determined that the settlement agreement was fair, adequate and equitable, and subsequently issued its order granting final approval of the settlement. As of March 29, 2017, an accrual in the amount of $770 was recorded for this matter and the related expenses. On May 1, 2017, we paid to the claims administrator $774 in full satisfaction of the amounts owed by us under the settlement agreement. We are subject to various legal and regulatory proceedings, claims and liabilities, such as employment-related claims and slip and fall cases, which arise in the ordinary course of business and are generally covered by insurance. As of March 29, 2017 , the amount of ultimate liability with respect to these matters was not material. Liabilities under Tax Receivable Agreement As described in Note 10 , we are a party to the Tax Receivable Agreement under which we are contractually committed to pay certain of the members of SSE Holdings 85% of the amount of any tax benefits that we actually realize, or in some cases are deemed to realize, as a result of certain transactions. We are not obligated to make any payments under the Tax Receivable Agreement until the tax benefits associated with the transactions that gave rise to the payments are realized. Amounts payable under the Tax Receivable Agreement are contingent upon, among other things, (i) generation of future taxable income over the term of the Tax Receivable Agreement and (ii) future changes in tax laws. If we do not generate sufficient taxable income in the aggregate over the term of the Tax Receivable Agreement to utilize the tax benefits, then we would not be required to make the related TRA Payments. During the thirteen weeks ended March 29, 2017 and March 30, 2016 , we recognized liabilities totaling $6,357 and $34,920 , respectively, relating to our obligations under the Tax Receivable Agreement, after concluding that it was probable that we would have sufficient future taxable income to utilize the related tax benefits. As of March 29, 2017 and December 28, 2016 , our total obligations under the Tax Receivable Agreement, including accrued interest, were $277,370 and $272,482 , respectively. There were no transactions subject to the Tax Receivable Agreement for which we did not recognize the related liability, as we concluded that we would have sufficient future taxable income to utilize all of the related tax benefits.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 29, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Union Square Hospitality Group The Chairman of our Board of Directors serves as the Chief Executive Officer of Union Square Hospitality Group, LLC. As a result, Union Square Hospitality Group, LLC and its subsidiaries are considered related parties. USHG, LLC Effective January 2015, we entered into an Amended and Restated Management Services Agreement with USHG, LLC ("USHG"), in which USHG provides reduced management services to SSE Holdings comprised of executive leadership from members of its senior management, advisory and development services and limited leadership development and human resources services. The initial term of the Amended and Restated Management Services Agreement is through December 31, 2019, with renewal periods. Total amounts paid to USHG for general corporate expenses were $5 and $6 for the thirteen weeks ended March 29, 2017 and March 30, 2016 , respectively. These amounts are included in general and administrative expenses on the Condensed Consolidated Statements of Income . Total amounts payable to USHG as of March 29, 2017 and December 28, 2016 were $1 . These amounts are included in other current liabilities on the Condensed Consolidated Balance Sheets. No amounts were due from USHG as of March 29, 2017 and December 28, 2016 . Hudson Yards Sports and Entertainment In fiscal 2011, we entered into a Master License Agreement (as amended, "MLA") with Hudson Yards Sports and Entertainment LLC ("HYSE") to operate Shake Shack branded limited menu concession stands in sports and entertainment venues within the United States. The agreement expires on December 31, 2027 and includes five consecutive five -year renewal options at HYSE's option. As consideration for these rights, HYSE pays us a license fee based on a percentage of net food sales, as defined in the MLA. HYSE also pays us a percentage of profits on sales of branded beverages, as defined in the MLA. Amounts paid to us by HYSE in the thirteen weeks ended March 29, 2017 were $20 . These amounts are included in licensing revenue on the Condensed Consolidated Statements of Income . No amounts were paid to us in the thirteen weeks ended March 30, 2016 . Total amounts due from HYSE as of March 29, 2017 and December 28, 2016 were $24 and $11 , which are included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets . Madison Square Park Conservancy The Chairman of our Board of Directors serves as a director of the Madison Square Park Conservancy ("MSP Conservancy"), with which we have a license agreement and pay license fees to operate our Madison Square Park Shack. Amounts paid to Madison Square Park Conservancy as rent amounted to $199 and $195 for the thirteen weeks ended March 29, 2017 and March 30, 2016 , respectively. These amounts are included in occupancy and related expenses on the Condensed Consolidated Statements of Income . No amounts were due to MSP Conservancy as of March 29, 2017 . Total amounts due to MSP Conservancy as of December 28, 2016 were $1 , which is included in accrued expenses on the Condensed Consolidated Balance Sheets. Additionally, we received tenant improvement allowances from MSP Conservatory related to a reconstruction project which ended in 2015. Total amounts due from MSP Conservancy as of December 28, 2016 were $200 , which are included in accounts receivable on the Condensed Consolidated Balance Sheets. Amounts paid to us during the thirteen weeks ended March 29, 2017 totaled $200 and no amounts were paid to us during the thirteen weeks ended March 30, 2016 . As of March 29, 2017 no amounts were due from MSP Conservancy. Share Our Strength The Chairman of our Board of Directors serves as a director of Share Our Strength, for which Shake Shack holds the "Great American Shake Sale" every year during the month of May to raise money and awareness for childhood hunger. During the Great American Shake Sale, we encourage guests to donate money to Share Our Strength's No Kid Hungry campaign in exchange for a coupon for a free cake-themed shake. All of the guest donations we collect go directly to Share Our Strength. No amounts have been raised for the thirteen weeks ended March 29, 2017 and March 30, 2016 . Mobo Systems, Inc. The Chairman of our Board of Directors serves as a director of Mobo Systems, Inc. (also known as "Olo"), a platform we use in connection with our mobile ordering application. Amounts paid to Olo during the thirteen weeks ended March 29, 2017 totaled $18 , which are included in other operating expenses on the Condensed Consolidated Statements of Income . No amounts were paid to Olo for the thirteen weeks ended March 30, 2016 . No amounts were payable to Olo as of March 29, 2017 and December 28, 2016 . Tax Receivable Agreement As described in Note 10 , we entered into a tax receivable agreement with certain members of SSE Holdings that provides for the payment by us of 85% of the amount of tax benefits, if any, that Shake Shack actually realizes or in some cases is deemed to realize as a result of certain transactions. During the thirteen weeks ended March 29, 2017 , payments of $1,471 , inclusive of interest, were made to the members of SSE Holdings pursuant to the Tax Receivable Agreement. No amounts were paid to the members during the thirteen weeks ended March 30, 2016 . As of March 29, 2017 and December 28, 2016 , total amounts due under the Tax Receivable Agreement were $277,370 and $272,482 , respectively. Distributions to Members of SSE Holdings Under the terms of the SSE Holdings LLC Agreement, SSE Holdings is obligated to make tax distributions to its members . During the thirteen weeks ended March 29, 2017 distributions paid to non-controlling interest holders were $355 . No tax distributions were paid to non-controlling interest holders during the thirteen weeks ended March 30, 2016 . As of March 29, 2017 and December 28, 2016 , tax distributions payable to non-controlling interest holders were $607 .

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 29, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Shake Shack Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and on a basis consistent in all material respects with the accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 28, 2016 ("2016 Form 10-K"). In our opinion, all adjustments, which are normal and recurring in nature, necessary for a fair presentation of our financial position and results of operation have been included. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year. The accompanying Condensed Consolidated Balance Sheet as of December 28, 2016 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our 2016 Form 10-K. SSE Holdings is considered a VIE. Shake Shack Inc. is the primary beneficiary as we have the majority economic interest in SSE Holdings and, as the sole managing member, have decision making authority that significantly affects the economic performance of the entity, while the limited partners have no substantive kick-out or participating rights. As a result, we consolidate SSE Holdings. The assets and liabilities of SSE Holdings represent substantially all of our consolidated assets and liabilities with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement.
Fiscal Year	Fiscal Year We operate on a 52/53 week fiscal year ending on the last Wednesday in December. Fiscal 2017 contains 52 weeks and ends on December 27, 2017 . Fiscal 2016 contained 52 weeks and ended on December 28, 2016 . Unless otherwise stated, references to years in this report relate to fiscal years.
Use of Estimates	Use of Estimates The preparation of these condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates.
Recently Adopted and Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements We adopted the Accounting Standards Updates (“ASUs”) summarized below in fiscal 2017. The effects of adoption did not have a material impact on our consolidated financial statements. Accounting Standards Update (“ASU”) Description Date Adopted Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) This standard simplifies certain aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, certain classifications on the statement of cash flows, and an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur. Upon adoption, we made such policy election. The adoption methodology applied varied based on each applicable provision of the standard, and none of the provisions had a material impact on our consolidated financial statements. December 29, 2016 Simplifying the Measurement of Inventory (ASU 2015-11) This standard applies to inventory measured using methods other than last-in, first-out (LIFO) or the retail method, and requires entities to measure such inventory at the lower of cost or net realizable value. It should be applied prospectively. December 29, 2016 Recently Issued Accounting Pronouncements Accounting Standards Update (“ASU”) Description Expected Impact Effective Date Statement of Cash Flows: Classification of Certain Cash Receipts and Payments (ASU 2016-15) This standard provides guidance on eight specific cash flow issues with the objective of reducing diversity in practice. It should be applied retrospectively to each period presented, subject to certain conditions. We are currently evaluating the impact this standard will have on our consolidated financial statements. December 28, 2017 Accounting Standards Update (“ASU”) Description Expected Impact Effective Date Recognition and Measurement of Financial Assets and Financial Liabilities For public business entities, this standard requires: (i) certain equity investments to be measured at fair value with changes in fair value recognized in net income; (ii) a qualitative assessment to identify impairment of equity investments without readily determinable fair values; (iii) elimination of the requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet; (iv) use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) separate presentation of financial assets and liabilities by measurement category and form of financial asset in the financial statements; and (vii) an entity to evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The standard should be applied by means of a cumulative-effect adjustment to the balance sheet at the beginning of the fiscal year of adoption. Early adoption is permitted, subject to certain conditions resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value. We are currently evaluating the impact this standard will have on our consolidated financial statements. December 28, 2017 Revenue from Contracts with Customers and related standards This standard supersedes the existing revenue recognition guidance and provides a new framework for recognizing revenue. The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard also requires significantly more comprehensive disclosures than the existing standard. Guidance subsequent to ASU 2014-09 has been issued to clarify various provisions in the standard, including principal versus agent considerations, identifying performance obligations, licensing transactions, as well as various technical corrections and improvements. This standard may be adopted using either a retrospective or modified retrospective method. Early adoption is permitted. We are currently in the process of evaluating the impact this standard is expected to have on our consolidated financial statements. It is still too early in our process to determine the magnitude of the potential impact. However, based on our preliminary assessment, we believe that further evaluation of the initial territory fees associated with our licensing agreements may reveal differences in the timing of revenue recognition from current policy, but that it is likely that recognition of sales-based royalties will not significantly change. In addition to further evaluating each of our licensing agreements, we are in the process of assessing whether any sales promotions or discounts we currently offer related to our Shack sales could be considered separate performance obligations. As we continue our evaluation, we will further clarify the expected impact of the adoption of the standard. December 28, 2017 Leases (ASU 2016-02) This standard establishes a new lease accounting model, which introduces the recognition of lease assets and liabilities for those leases classified as operating leases under previous GAAP. It should be applied using a modified retrospective approach, with the option to elect various practical expedients. Early adoption is permitted. We are currently evaluating the impact this standard will have on our consolidated financial statements. December 27, 2018

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 29, 2017
Fair Value Disclosures [Abstract]
Schedule of Cash and Cash Equivalents	The following tables summarize our cash, cash equivalents and marketable securities by significant investment categories as of March 29, 2017 and December 28, 2016 : March 29, 2017 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 10,683 $ — $ — $ 10,683 $ 10,683 $ — Level 1: Money market funds 5,028 — — 5,028 5,028 — Mutual funds 55,393 — — 55,393 — 55,393 Level 2: Corporate debt securities (1) 2,480 2 (35 ) 2,447 2,447 Total $ 73,584 $ 2 $ (35 ) $ 73,551 $ 15,711 $ 57,840 December 28, 2016 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 6,322 $ — $ — $ 6,322 $ 6,322 $ — Level 1: Money market funds 5,285 — — 5,285 5,285 — Mutual funds 60,232 — — 60,232 — 60,232 Level 2: Corporate debt securities (1) 2,473 3 (30 ) 2,446 — 2,446 Total $ 74,312 $ 3 $ (30 ) $ 74,285 $ 11,607 $ 62,678 (1) Corporate debt securities were measured at fair value using a market approach utilizing observable prices for identical securities or securities with similar characteristics and inputs that are observable or can be corroborated by observable market data
Schedule of Unrealized Loss on Investments	The following tables summarize the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 29, 2017 and December 28, 2016 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position: March 29, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Money market funds $ — $ — $ — $ — $ — $ — Mutual funds — — — — — — Corporate debt securities 1,117 (6 ) 637 (29 ) 1,754 (35 ) Total $ 1,117 $ (6 ) $ 637 $ (29 ) $ 1,754 $ (35 ) December 28, 2016 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Money market funds $ — $ — $ — $ — $ — $ — Mutual funds — — — — — — Corporate debt securities 1,244 (10 ) 540 (20 ) 1,784 (30 ) Total $ 1,244 $ (10 ) $ 540 $ (20 ) $ 1,784 $ (30 )
Schedule of Other Income From Available for Sale Securities	A summary of other income from available-for-sale securities recognized during the thirteen weeks ended March 29, 2017 and March 30, 2016 is as follows: Thirteen Weeks Ended March 29 March 30 Available-for-sale securities: Dividend income $ 178 $ — Interest income 20 23 Loss on investments 3 — Total other income, net $ 201 $ 23
Schedule of Available-for-sale Securities and Gross Realized Gains and Losses	A summary of available-for-sale securities sold and gross realized gains and losses recognized during the thirteen weeks ended March 29, 2017 and March 30, 2016 is as follows: Thirteen Weeks Ended March 29 March 30 Available-for-sale securities: Gross proceeds from sales and redemptions $ 155 $ — Cost basis of sales and redemptions 158 — Gross realized gains included in net income — — Gross realized losses included in net income (3 ) — Amounts reclassified out of accumulated other comprehensive loss 3 —

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 29, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories as of March 29, 2017 and December 28, 2016 consisted of the following: March 29 December 28 Food $ 577 $ 543 Wine 54 47 Beer 58 58 Beverages 91 79 Retail merchandise 123 79 Inventories $ 903 $ 806

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 29, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment as of March 29, 2017 and December 28, 2016 consisted of the following: March 29 December 28 Leasehold improvements $ 131,817 $ 120,629 Landlord funded assets 3,296 — Equipment 25,411 23,194 Furniture and fixtures 7,987 7,342 Computer equipment and software 9,582 8,710 Construction in progress (includes assets under construction from deemed landlord financing) 11,465 13,510 Property and equipment, gross 189,558 173,385 Less: accumulated depreciation 42,073 37,121 Property and equipment, net $ 147,485 $ 136,264

SUPPLEMENTAL BALANCE SHEET IN27

SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables)	3 Months Ended
	Mar. 29, 2017
Supplemental Balance Sheet Disclosures [Abstract]
Supplemental Balance Sheet Information	The components of other current liabilities as of March 29, 2017 and December 28, 2016 are as follows: March 29 December 28 Sales tax payable $ 1,498 $ 1,324 Current portion of liabilities under tax receivable agreement 3,110 4,580 Gift card liability 1,083 1,153 Deferred compensation 2,350 — Other 3,386 3,116 Other current liabilities $ 11,427 $ 10,173

NON-CONTROLLING INTERESTS (Tabl

NON-CONTROLLING INTERESTS (Tables)	3 Months Ended
	Mar. 29, 2017
Noncontrolling Interest [Abstract]
Schedule of ownership interests in SSE holdings	The following table summarizes the ownership interest in SSE Holdings as of March 29, 2017 and December 28, 2016 . March 29, 2017 December 28, 2016 LLC Interests Ownership % LLC Interests Ownership % Number of LLC Interests held by Shake Shack Inc. 25,681,875 70.1 % 25,151,384 69.1 % Number of LLC Interests held by non-controlling interest holders 10,929,592 29.9 % 11,253,592 30.9 % Total LLC Interests outstanding 36,611,467 100.0 % 36,404,976 100.0 %
Schedule of non-controlling interest	The following table summarizes the effects of changes in ownership in SSE Holdings on our equity during the thirteen weeks ended March 29, 2017 and March 30, 2016 . Thirteen Weeks Ended March 29 March 30 Net income attributable to Shake Shack Inc. $ 2,267 $ 1,462 Other comprehensive loss: Unrealized holding losses on available-for-sale securities (4 ) (1 ) Transfers (to) from non-controlling interests: Increase in additional paid-in capital as a result of the redemption of LLC Interests 1,322 4,642 Increase in additional paid-in capital as a result of activity under stock compensation plans 2,870 216 Total effect of changes in ownership interest on equity attributable to Shake Shack Inc. $ 6,455 $ 6,319

EQUITY-BASED COMPENSATION (Tabl

EQUITY-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of equity-based compensation expense recognized	A summary of equity-based compensation expense recognized during the thirteen weeks ended March 29, 2017 and March 30, 2016 is as follows: Thirteen Weeks Ended March 29 March 30 Stock options $ 964 $ 1,030 Performance stock units 285 — Equity-based compensation expense $ 1,249 $ 1,030 Total income tax benefit recognized related to equity-based compensation $ 51 $ 31

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 29, 2017
Income Tax Disclosure [Abstract]
Schedule of effective income tax rate reconciliation	A reconciliation of income tax expense computed at the U.S. federal statutory income tax rate to the recognized income tax expense is as follows: Thirteen Weeks Ended March 29 March 30 Expected U.S. federal income taxes at statutory rate $ 1,932 35.0 % $ 1,581 34.0 % State and local income taxes, net of federal benefit 349 6.3 % 272 5.8 % Foreign withholding taxes 186 3.4 % 240 5.2 % Tax credits (130 ) (2.4 )% (39 ) (0.8 )% Non-controlling interest (679 ) (12.3 )% (755 ) (16.3 )% Income tax expense $ 1,658 30.0 % $ 1,299 27.9 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 29, 2017
Earnings Per Share [Abstract]
Schedule of earnings per share	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 weeks ended March 29, 2017 and March 30, 2016 . Thirteen Weeks Ended March 29 March 30 Numerator: Net income $ 3,862 $ 3,351 Less: net income attributable to non-controlling interests 1,595 1,889 Net income attributable to Shake Shack Inc. $ 2,267 $ 1,462 Denominator: Weighted-average shares of Class A common stock outstanding—basic 25,376 20,353 Effect of dilutive securities: Stock options 552 459 Performance stock units 27 — Weighted-average shares of Class A common stock outstanding—diluted 25,955 20,812 Earnings (loss) per share of Class A common stock—basic $ 0.09 $ 0.07 Earnings (loss) per share of Class A common stock—diluted $ 0.09 $ 0.07

SUPPLEMENTAL CASH FLOW INFORM32

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Mar. 29, 2017
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash Flow Information	The following table sets forth supplemental cash flow information for the thirteen weeks ended March 29, 2017 and March 30, 2016 : Thirteen Weeks Ended March 29 March 30 Cash paid for: Income taxes, net of refunds $ 1,093 $ 475 Interest, net of amounts capitalized 19 15 Non-cash investing activities: Accrued purchases of property and equipment 4,415 3,133 Capitalized landlord assets for leases where we are deemed the accounting owner 4,545 — Capitalized equity-based compensation 40 30 Non-cash financing activities: Class A common stock issued in connection with the redemption of LLC Interests — 2 Cancellation of Class B common stock in connection with the redemption of LLC Interests — (2 ) Establishment of liabilities under tax receivable agreement 6,357 34,920

NATURE OF OPERATIONS (Details)

NATURE OF OPERATIONS (Details)	Feb. 04, 2015$ / sharesshares	Mar. 29, 2017Restaurant	Dec. 28, 2016
Class of Stock [Line Items]
Ownership percent of noncontrolling interest		70.10%	69.10%
Number of restaurants		127
IPO | Common stock | Class A Common Stock
Class of Stock [Line Items]
Shares issued during the period (in shares) | shares	5,750,000
Shares issued, share price (in dollars per share) | $ / shares	$ 21
United States | Company-operated
Class of Stock [Line Items]
Number of restaurants		71
United States | Licensed
Class of Stock [Line Items]
Number of restaurants		7
Non-United States | Licensed
Class of Stock [Line Items]
Number of restaurants		49

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Mar. 29, 2017	Dec. 28, 2016
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Net assets held by SSE holders	$ 169,267	$ 158,845

FAIR VALUE MEASUREMENTS - Cash,

FAIR VALUE MEASUREMENTS - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 29, 2017	Dec. 28, 2016	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	$ 15,711	$ 11,607	$ 65,855	$ 70,849
Cash and cash equivalents fair value	15,711	11,607
Gross Unrealized Gains	2	3
Gross Unrealized Losses	(35)	(30)
Fair Value Including Mutual Funds	73,551
Fair Value		74,285
Fair value of marketable securities	57,840	62,678
Total cost basis including Mutual Funds	73,584
Total cost basis		74,312
Level 1 | Mutual funds
Schedule of Available-for-sale Securities [Line Items]
Mutual funds	55,393	60,232
Fair value of marketable securities	55,393	60,232
Level 2 | Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Corporate debt securities	2,480	2,473
Gross Unrealized Gains	2	3
Gross Unrealized Losses	(35)	(30)
Fair value of marketable securities	2,447	2,446
Cash
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	10,683	6,322
Cash and cash equivalents fair value	10,683	6,322
Money market funds | Level 1
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	5,028	5,285
Cash and cash equivalents fair value	$ 5,028	$ 5,285

FAIR VALUE MEASUREMENTS - Addit

FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 29, 2017	Mar. 30, 2016	Dec. 28, 2016
Fair Value Disclosures [Abstract]
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax		$ 33		$ 27
Fair value of investments with unrealized losses		35		$ 30
Change in net unrealized holding losses	[1]	(9)	$ (2)
Asset impairment charges		$ 0	$ 0
[1]	Net of tax benefit of $0 for the thirteen weeks ended March 29, 2017 and March 30, 2016.

FAIR VALUE MEASUREMENTS - Other

FAIR VALUE MEASUREMENTS - Other Income From Available For Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Available-for-sale securities
Other Income	$ 195	$ 23
Available-for-sale Securities
Available-for-sale securities
Dividend income	178	0
Interest income	20	23
Loss on investments	3	0
Other Income	$ 201	$ 23

FAIR VALUE MEASUREMENTS - Avail

FAIR VALUE MEASUREMENTS - Available for Sale Securities and Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 29, 2017	Mar. 30, 2016
Available-for-sale securities:
Gross proceeds from sales and redemptions		$ 155	$ 0
Cost basis of sales and redemptions		158	0
Gross realized gains included in net income		0	0
Gross realized losses included in net income		(3)	0
Amounts reclassified out of accumulated other comprehensive loss	[1]	$ 3	$ 0
[1]	Net of tax benefit of $0 for the thirteen weeks ended March 29, 2017 and March 30, 2016.

FAIR VALUE MEASUREMENTS FAIR VA

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Unrealized Loss on Investments (Details) - USD ($) $ in Thousands	Mar. 29, 2017	Dec. 28, 2016
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 1,117	$ 1,244
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(35)	(30)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(6)	(10)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	637	540
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(29)	(20)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,754	1,784
Corporate debt securities
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,117	1,244
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(35)	(30)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(6)	(10)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	637	540
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(29)	(20)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ 1,754	$ 1,784

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 29, 2017	Dec. 28, 2016
Inventory [Line Items]
Inventories	$ 903	$ 806
Food
Inventory [Line Items]
Inventories	577	543
Wine
Inventory [Line Items]
Inventories	54	47
Beer
Inventory [Line Items]
Inventories	58	58
Beverages
Inventory [Line Items]
Inventories	91	79
Retail merchandise
Inventory [Line Items]
Inventories	$ 123	$ 79

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Mar. 29, 2017	Dec. 28, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 189,558	$ 173,385
Less: accumulated depreciation	42,073	37,121
Property and equipment, net	147,485	136,264
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	131,817	120,629
Buildings, Deemed Landlord Financing [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,296	0
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	25,411	23,194
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,987	7,342
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,582	8,710
Construction in progress (includes assets under construction from deemed landlord financing)
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 11,465	$ 13,510

SUPPLEMENTAL BALANCE SHEET IN42

SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands	Mar. 29, 2017	Dec. 28, 2016
Other Liabilities, Current
Sales tax payable	$ 1,498	$ 1,324
Current portion of liabilities under tax receivable agreement	3,110	4,580
Gift card liability	1,083	1,153
Deferred Compensation Liability, Current	2,350	0
Other	3,386	3,116
Other current liabilities	$ 11,427	$ 10,173

DEBT (Details)

DEBT (Details) - USD ($)	Feb. 04, 2015	May 31, 2016	Mar. 29, 2017	Mar. 30, 2016	Dec. 28, 2016
Debt Instrument [Line Items]
Deemed Landlord Financing Liability			$ 8,016,000		$ 2,007,000
Interest costs incurred			(324,000)
Interest Expense			303,000	$ 87,000
Interest costs capitalized			21,000	$ 0
Notes payable
Debt Instrument [Line Items]
Notes payable			$ 0
Letter of credit
Debt Instrument [Line Items]
Term to maturity			1 year
Revolving Credit Facility | Line of credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 50,000,000
Current borrowing capacity	$ 20,000,000
Term to maturity	5 years
Amount available under revolving credit facility			$ 19,920,000
Notes payable					$ 0
Revolving Credit Facility | Letter of credit | Line of credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 10,000,000
Current borrowing capacity			$ 80,000
Revolving Credit Facility | Minimum | Line of credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate		2.25%
Revolving Credit Facility | Minimum | Line of credit | Prime rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.00%
Revolving Credit Facility | Maximum | Line of credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate		3.25%
Revolving Credit Facility | Maximum | Line of credit | Prime rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.75%

NON-CONTROLLING INTERESTS - Own

NON-CONTROLLING INTERESTS - Ownership Interest in SSE Holdings (Details) - shares	Mar. 29, 2017	Dec. 28, 2016
Noncontrolling Interest [Abstract]
Number of LLC Interests held by Shake Shack Inc. (in shares)	25,681,875	25,151,384
Number of LLC Interests held by Shake Shack Inc. (as a percentage)	70.10%	69.10%
Number of LLC Interests held by non-controlling interest holders (in shares)	10,929,592	11,253,592
Number of LLC Interests held by non-controlling interest holders (as a percentage)	29.90%	30.90%
Total LLC Interests outstanding (in shares)	36,611,467	36,404,976
Total LLC Interests outstanding (as a percentage)	100.00%	100.00%

NON-CONTROLLING INTERESTS - Nar

NON-CONTROLLING INTERESTS - Narrative (Details) - shares	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Noncontrolling Interest [Line Items]
Non-controlling interest holders' weighted average ownership percentage	30.40%	43.90%
Units acquired during the period (in shares)	530,491
Redemption or Exchange of Units
Noncontrolling Interest [Line Items]
Units acquired during the period (in shares)	324,000	1,877,855
Employee Stock Option
Noncontrolling Interest [Line Items]
Units acquired during the period (in shares)	206,491	33,070
Limited Liability Company
Noncontrolling Interest [Line Items]
Number of units redeemed (in shares)	324,000	1,877,855

NON-CONTROLLING INTERESTS - Ch

NON-CONTROLLING INTERESTS - Changes in Ownership Interests in SSE Holdings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Noncontrolling Interest [Line Items]
Net Income (Loss) Attributable to Parent	$ 2,267	$ 1,462
Net unrealized losses related to available-for-sale securities	(6)	(2)
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.	6,455	6,319
Redemption or Exchange of Units
Noncontrolling Interest [Line Items]
Increase (decrease) in additional paid-in capital	1,322	4,642
Employee Stock Option
Noncontrolling Interest [Line Items]
Increase (decrease) in additional paid-in capital	2,870	216
Accumulated Other Comprehensive Loss
Noncontrolling Interest [Line Items]
Net unrealized losses related to available-for-sale securities	$ (4)	$ (1)

EQUITY-BASED COMPENSATION - Sch

EQUITY-BASED COMPENSATION - Schedule of compensation expense recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 1,249	$ 1,030
Total income tax benefit recognized related to equity-based compensation	51	31
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	964	1,030
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 285	$ 0

EQUITY-BASED COMPENSATION (Narr

EQUITY-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 1,249	$ 1,030
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	964	1,030
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 285	$ 0

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation (in percentage)	35.00%	34.00%
Expected U.S. federal income taxes at statutory rate	$ 1,932	$ 1,581
State and local income taxes, net of federal benefit	$ 349	$ 272
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent	6.30%	5.80%
Foreign withholding taxes	$ 186	$ 240
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent	3.40%	5.20%
Tax credits	$ (130)	$ (39)
Effective Income Tax Rate Reconciliation, Tax Credit, Percent	(2.40%)	(0.80%)
Non-controlling interest	$ (679)	$ (755)
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent	(12.30%)	(16.30%)
Income tax expense	$ 1,658	$ 1,299
Effective income tax rate reconciliation (in percentage)	30.00%	27.90%

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016	Dec. 28, 2016
Income Tax Contingency [Line Items]
Effective income tax rate reconciliation (in percentage)	30.00%	27.90%
Noncontrolling Interest, Ownership Percentage by Parent, Weighted Average	69.60%	56.10%
Units acquired during the period (in shares)	530,491
Deferred tax asset recognized as a result of investment in partnership	$ 5,310,000
Deferred Tax Asset, Investment in Partnership	216,281,000
Valuation allowance, deferred tax asset	16,077,000
Deferred tax asset related to additional tax basis	2,567,000
Uncertain tax positions	$ 0
Percentage of tax benefits due to equity owners	85.00%
Tax Receivable Agreement Payments To Related Parties	$ 1,471,000	$ 0
Percentage of tax benefits expected to be realized	15.00%
Establishment of liabilities under tax receivable agreement	$ 6,357,000	$ 34,920,000
Liabilities under tax receivable agreement	277,370,000		$ 272,482,000
Current portion of liabilities under tax receivable agreement	$ 3,110,000		$ 4,580,000
Redemption or Exchange of Units
Income Tax Contingency [Line Items]
Units acquired during the period (in shares)	324,000	1,877,855

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Numerator:
Net income	$ 3,862	$ 3,351
Less: net income attributable to non-controlling interests	1,595	1,889
NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC.	$ 2,267	$ 1,462
Denominator:
Weighted-average shares of Class A common stock outstanding—basic (in shares)	25,376	20,353
Effect of dilutive securities:
Weighted-average shares of Class A common stock outstanding—diluted (in shares)	25,955	20,812
Earnings (loss) per share of Class A common stock—basic (in dollars per share)	$ 0.09	$ 0.07
Earnings (loss) per share of Class A common stock—diluted (in dollars per share)	$ 0.09	$ 0.07
Stock options
Effect of dilutive securities:
Stock options (in shares)	552	459
Performance stock units
Effect of dilutive securities:
Stock options (in shares)	27	0

EARNINGS PER SHARE - Antidilut

EARNINGS PER SHARE - Antidilutive Securities (Details) - Class B Common Stock - shares	Mar. 29, 2017	Dec. 28, 2016	Mar. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common Stock, Shares, Outstanding	10,929,592	11,253,592
Common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common Stock, Shares, Outstanding	10,929,592	11,253,592	14,582,886

SUPPLEMENTAL CASH FLOW INFORM53

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Cash paid for:
Income taxes, net of refunds	$ 1,093	$ 475
Interest, net of amounts capitalized	19	15
Non-cash investing activities:
Accrued purchases of property and equipment	4,415	3,133
Noncash Deemed Landlord Financing	4,545	0
Capitalized equity-based compensation	40	30
Non-cash financing activities:
Establishment of liabilities under tax receivable agreement	6,357	34,920
Redemption or Exchange of Units | Class A Common Stock
Non-cash investing activities:
Class A common stock issued	0	2
Redemption or Exchange of Units | Class B Common Stock
Non-cash financing activities:
Cancellation of Class B common stock	$ 0	$ (2)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	May 01, 2017USD ($)	Nov. 30, 2015USD ($)manager	Mar. 29, 2017USD ($)	Mar. 30, 2016USD ($)	Dec. 28, 2016USD ($)	Dec. 31, 2013USD ($)
Loss Contingencies [Line Items]
Percentage of tax benefits due to equity owners			85.00%
Establishment of liabilities under tax receivable agreement			$ 6,357	$ 34,920
Tax receivable agreement liability			277,370		$ 272,482
Exempt Classification Matter
Loss Contingencies [Line Items]
Number of former Shake Shack managers | manager		2
Settlement amount		$ 750
Amount of loss accrued			$ 770
Letter of credit
Loss Contingencies [Line Items]
Renewal term			1 year
Retail site
Loss Contingencies [Line Items]
Letters of credit outstanding			$ 160
Office building
Loss Contingencies [Line Items]
Letters of credit outstanding						$ 80
Subsequent Event [Member] | Exempt Classification Matter
Loss Contingencies [Line Items]
Loss Contingency Accrual, Payments	$ 774

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	3 Months Ended
	Mar. 29, 2017USD ($)renewal_option	Mar. 30, 2016USD ($)	Dec. 28, 2016USD ($)
Related Party Transaction [Line Items]
Percentage of tax benefits due to equity owners	85.00%
Tax Receivable Agreement Payments To Related Parties	$ 1,471,000	$ 0
Tax receivable agreement liability	277,370,000		$ 272,482,000
Distributions paid to non-controlling interest holders	355,000	0
Tax distributions payable to non-controlling interest holders	607,000		607,000
Affiliated Entity
Related Party Transaction [Line Items]
Amount paid to USHG for general corporate expenses	5,000	6,000
Amounts due to related parties	1,000		1,000
Due from related parties, current	$ 0
Charitable campaign flow through		0
Hudson Yards Sports and Entertainment
Related Party Transaction [Line Items]
Number of renewal terms | renewal_option	5
Renewal option period	5 years
Hudson Yards Sports and Entertainment | Concession income
Related Party Transaction [Line Items]
Due from related parties, current	$ 24,000		11,000
Revenue from related parties	20,000	0
Madison Square Park Conservancy | Rent expense
Related Party Transaction [Line Items]
Expenses from transactions with related party	199,000	195,000
Due to MSP conservancy	0		1,000
Madison Square Park Conservancy | Tenant Improvement Allowance [Member]
Related Party Transaction [Line Items]
Accounts Receivable, Related Parties, Current			200,000
Related Party Transaction, Other Revenues from Transactions with Related Party	200,000	0
Board of Directors Chairman | Mobo Systems, Inc.
Related Party Transaction [Line Items]
Expenses from transactions with related party	18,000	$ 0
Due to MSP conservancy	$ 0		$ 0