Shake Shack (SHAK) 10-Q 2 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document and Entity Information - shares	9 Months Ended
	Sep. 27, 2017	Oct. 25, 2017
Document Information [Line Items]
Document type	10-Q
Amendment flag	false
Document period end date	Sep. 27, 2017
Document fiscal year focus	2,017
Document fiscal period focus	Q3
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)		26,195,741
Class B Common Stock
Document Information [Line Items]
Entity common stock, shares outstanding (in shares)		10,534,792

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 27, 2017	Dec. 28, 2016
Current assets:
Cash and cash equivalents	$ 26,887	$ 11,607
Marketable Securities, Current	63,299	62,040
Accounts receivable	5,139	6,006
Inventories	1,127	806
Prepaid expenses and other current assets	2,057	3,485
Total current assets	98,509	83,944
Property and equipment, net	174,689	136,264
Deferred income taxes, net	322,224	313,207
Other assets	4,515	4,779
TOTAL ASSETS	599,937	538,194
Current liabilities:
Accounts payable	8,639	6,921
Accrued expenses	13,181	8,538
Accrued wages and related liabilities	5,127	6,084
Other current liabilities	9,817	10,173
Total current liabilities	36,764	31,716
Deemed landlord financing	13,162	2,007
Deferred rent	34,780	31,107
Liabilities under tax receivable agreement, net of current portion	280,820	267,902
Other long-term liabilities	2,633	4,109
Total liabilities	368,159	336,841
Commitments and contingencies
Stockholders' equity:
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of September 27, 2017 and December 28, 2016.	0	0
Additional paid-in capital	147,890	135,448
Retained earnings	28,862	16,719
Accumulated other comprehensive income (loss)	30	(15)
Total stockholders' equity attributable to Shake Shack Inc.	176,819	152,188
Non-controlling interests	54,959	49,165
Total equity	231,778	201,353
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	599,937	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	Sep. 27, 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)	26,161,111	25,151,384
Common Stock, Shares, Outstanding	26,161,111	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)	10,567,792	11,253,592
Common Stock, Shares, Outstanding	10,567,792	11,253,592

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Income Statement [Abstract]
Shack sales	$ 91,100	$ 71,871	$ 253,258	$ 188,430
Licensing revenue	3,509	2,696	9,416	6,774
TOTAL REVENUE	94,609	74,567	262,674	195,204
Shack-level operating expenses:
Food and paper costs	25,760	20,393	71,646	53,529
Labor and related expenses	23,806	18,216	66,692	46,640
Other operating expenses	9,229	6,577	25,380	17,475
Occupancy and related expenses	7,522	6,009	20,741	15,541
General and administrative expenses	9,204	7,885	27,352	22,265
Depreciation expense	5,604	3,719	15,610	10,229
Pre-opening costs	2,670	2,598	6,961	6,708
Loss on disposal of property and equipment	204	0	317	0
TOTAL EXPENSES	83,999	65,397	234,699	172,387
OPERATING INCOME	10,610	9,170	27,975	22,817
Other income, net	229	151	622	197
Interest Expense	(475)	(89)	(1,144)	(267)
INCOME BEFORE INCOME TAXES	10,364	9,232	27,453	22,747
Income tax expense	2,494	2,443	7,537	6,058
NET INCOME	7,870	6,789	19,916	16,689
Less: net income attributable to non-controlling interests	2,873	3,023	7,773	8,163
NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC.	$ 4,997	$ 3,766	$ 12,143	$ 8,526
Earnings per share of Class A common stock:
Basic (in dollars per share)	$ 0.19	$ 0.16	$ 0.47	$ 0.38
Diluted (in dollars per share)	$ 0.19	$ 0.15	$ 0.46	$ 0.37
Weighted-average shares of Class A common stock outstanding:
Basic (in shares)	26,024	24,023	25,733	22,310
Diluted (in shares)	26,477	24,554	26,248	22,805

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Statement of Comprehensive Income [Abstract]
Net income		$ 7,870	$ 6,789	$ 19,916	$ 16,689
Available-for-sale securities:
Change in net unrealized holding losses	[1]	53	(11)	36	(19)
Less: reclassification adjustments for net realized losses included in net income	[1]	14	3	28	3
OTHER COMPREHENSIVE LOSS		67	(8)	64	(16)
COMPREHENSIVE INCOME		7,937	6,781	19,980	16,673
Less: comprehensive income attributable to non-controlling interest		2,893	3,020	7,792	8,157
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAKE SHACK INC.		$ 5,044	$ 3,761	$ 12,188	$ 8,516
[1]	Net of tax benefit (expense) of $0 for the thirteen and thirty-nine weeks ended September 27, 2017 and September 28, 2016

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Statement of Comprehensive Income [Abstract]
Income tax benefit	$ 0	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - 9 months ended Sep. 27, 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	19,916						12,143		7,773
Other comprehensive loss:
Net unrealized losses related to available-for-sale securities	64							45	19
Equity-based compensation	3,909					3,909
Activity under stock compensation plans (in shares)				323,927
Activity under stock compensation plans	6,251			$ 1		3,580			2,670
Redemption of LLC Interests (in shares)				685,800	(685,800)
Redemption of LLC Interests	0			$ 0	$ 0	2,883			(2,883)
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	2,070					2,070
Distributions paid to non-controlling interest holders	(1,785)								1,785
Ending balance (shares) at Sep. 27, 2017		26,161,111	10,567,792	26,161,111	10,567,792
Ending balance at Sep. 27, 2017	$ 231,778			$ 26	$ 11	$ 147,890	$ 28,862	$ 30	$ 54,959

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016
OPERATING ACTIVITIES
Net income (including amounts attributable to non-controlling interests)	$ 19,916,000	$ 16,689,000
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation expense	15,610,000	10,229,000
Equity-based compensation	3,823,000	3,817,000
Deferred income taxes	3,056,000	121,000
Non-cash interest expense	245,000	211,000
Excess tax benefits on equity-based compensation	0	(35,000)
Loss on sale of marketable securities	27,000	3,000
Loss on disposal of property and equipment	(317,000)	0
Changes in operating assets and liabilities:
Accounts receivable	5,628,000	1,365,000
Inventories	(321,000)	(285,000)
Prepaid expenses and other current assets	1,844,000	196,000
Other assets	(516,000)	(768,000)
Accounts payable	536,000	(53,000)
Accrued expenses	4,455,000	4,503,000
Accrued wages and related liabilities	(957,000)	(493,000)
Other current liabilities	(1,544,000)	1,448,000
Deferred rent	702,000	3,863,000
Other long-term liabilities	1,150,000	(289,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES	53,971,000	40,522,000
INVESTING ACTIVITIES
Purchases of property and equipment	(41,179,000)	(39,268,000)
Purchases of marketable securities	(6,675,000)	(60,566,000)
Sales of marketable securities	6,399,000	498,000
NET CASH USED IN INVESTING ACTIVITIES	(41,455,000)	(99,336,000)
FINANCING ACTIVITIES
Proceeds from (Repayments of) Notes Payable	0	(313,000)
Sale Leaseback Transaction, Gross Proceeds, Financing Activities	530,000	0
Sale Leaseback Transaction, Transaction Costs, Financing Activities	154,000	0
Distributions paid to non-controlling interest holders	(2,392,000)	(1,602,000)
Tax Receivable Agreement Payments To Related Parties	(1,471,000)	0
Proceeds from stock option exercises	6,567,000	2,072,000
Payments Related to Tax Withholding for Share-based Compensation	316,000	0
Excess tax benefits from equity-based compensation	0	35,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	2,764,000	192,000
NET DECREASE IN CASH AND CASH EQUIVALENTS	15,280,000	(58,622,000)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	11,607,000	70,849,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 26,887,000	$ 12,227,000

NATURE OF OPERATIONS

NATURE OF OPERATIONS	9 Months Ended
	Sep. 27, 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 September 27, 2017 we owned 71.2% 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, chicken sandwiches, hot dogs, crinkle-cut fries, shakes, frozen custard, beer, wine and more. As of September 27, 2017 , there were 143 Shacks in operation, system-wide, of which 79 were domestic company-operated Shacks, 10 were domestic licensed Shacks and 54

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 27, 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 , as amended ("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 September 27, 2017 and December 28, 2016 , the net assets of SSE Holdings were $189,581 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 was 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 Accounting Standards Update (“ASU”) Description Expected Impact Effective Date 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. Based on our preliminary assessment, we believe that the pattern and timing of revenue recognition related to the fixed fees associated with our licensing agreements (such as restaurant opening and territory fees) will differ from current policy. Currently, restaurant opening fees are recorded as deferred revenue when received and proportionate amounts are recognized as revenue when a licensed Shack is opened and all material services and conditions related to the fee have been substantially performed. Territory fees are recorded as deferred revenue when received and recognized as revenue on a straight-line basis over the term of the license agreement, which generally begins upon execution of the contract. Under the new standard, we will likely identify the licenses granted to each restaurant under each licensing agreement as separate performance obligations. Accordingly, we would allocate the opening and territory fees to each restaurant and recognize such fees as revenue on a straight-line basis over the individual restaurants’ license terms, which generally begin when the restaurant opens. We do not expect the accounting for the sales-based royalties of our licensing agreements to change from current policy. We are still 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. We plan to adopt the standard on December 28, 2017, and we have not yet selected a transition method. 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	9 Months Ended
	Sep. 27, 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 September 27, 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 September 27, 2017 and December 28, 2016 : September 27, 2017 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 21,862 $ — $ — $ 21,862 $ 21,862 $ — Level 1: Money market funds 5,025 — — 5,025 5,025 — Mutual funds 60,769 60 — 60,829 — 60,829 Level 2: Corporate debt securities (1) 2,493 2 (25 ) 2,470 — 2,470 Total $ 90,149 $ 62 $ (25 ) $ 90,186 $ 26,887 $ 63,299 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 gains on available-for-sale securities totaling $37 and net unrealized losses on available-for-sale securities totaling $27 were included in accumulated other comprehensive income (loss) on the Condensed Consolidated Balance Sheet as of September 27, 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 September 27, 2017 and December 28, 2016 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position: September 27, 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 1,638 (9 ) 322 (16 ) 1,960 (25 ) Total $ 1,638 $ (9 ) $ 322 $ (16 ) $ 1,960 $ (25 ) 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 and thirty-nine weeks ended September 27, 2017 and September 28, 2016 is as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 September 28 September 27 September 28 Available-for-sale securities: Dividend income $ 222 $ 133 $ 591 $ 133 Interest income 19 22 58 68 Loss on investments (12 ) (4 ) (27 ) (4 ) Total other income, net $ 229 $ 151 $ 622 $ 197 A summary of available-for-sale securities sold and gross realized gains and losses recognized during the thirteen and thirty-nine weeks ended September 27, 2017 and September 28, 2016 is as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 September 28 September 27 September 28 Available-for-sale securities: Gross proceeds from sales and redemptions $ 584 $ 176 $ 1,212 $ 498 Cost basis of sales and redemptions 597 180 1,239 502 Gross realized gains included in net income 1 — 1 1 Gross realized losses included in net income (13 ) (4 ) (28 ) (5 ) Amounts reclassified out of accumulated other comprehensive loss 14 3 28 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 September 27, 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 September 27, 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 and thirty-nine weeks ended September 27, 2017 and September 28, 2016

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 27, 2017
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories as of September 27, 2017 and December 28, 2016 consisted of the following: September 27 December 28 Food $ 774 $ 543 Wine 55 47 Beer 75 58 Beverages 102 79 Retail merchandise 121 79 Inventories $ 1,127 $ 806

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 27, 2017
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT Property and equipment as of September 27, 2017 and December 28, 2016 consisted of the following: September 27 December 28 Leasehold improvements $ 146,939 $ 120,629 Landlord funded assets 6,555 — Equipment 28,139 23,194 Furniture and fixtures 9,082 7,342 Computer equipment and software 10,966 8,710 Construction in progress (includes assets under construction from deemed landlord financing) 25,608 13,510 Property and equipment, gross 227,289 173,385 Less: accumulated depreciation 52,600 37,121 Property and equipment, net $ 174,689 $ 136,264

SUPPLEMENTAL BALANCE SHEET INFO

SUPPLEMENTAL BALANCE SHEET INFORMATION	9 Months Ended
	Sep. 27, 2017
Supplemental Balance Sheet Disclosures [Abstract]
SUPPLEMENTAL BALANCE SHEET INFORMATION	SUPPLEMENTAL BALANCE SHEET INFORMATION The components of other current liabilities as of September 27, 2017 and December 28, 2016 are as follows: September 27 December 28 Sales tax payable $ 1,539 $ 1,324 Current portion of liabilities under tax receivable agreement 3,140 4,580 Gift card liability 1,003 1,153 Deferred compensation 2,400 — Other 1,735 3,116 Other current liabilities $ 9,817 $ 10,173

DEBT

DEBT	9 Months Ended
	Sep. 27, 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 September 27, 2017 and December 28, 2016 , there were no amounts outstanding under the Revolving Credit Facility. As of September 27, 2017 , we had $19,317 of availability under the Revolving Credit Facility, after giving effect to $683 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 September 27, 2017 , we were in compliance with all covenants. As of September 27, 2017 and December 28, 2016 we had deemed landlord financing liabilities of $13,162 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 $527 and $1,260 for the thirteen and thirty-nine weeks ended September 27, 2017 , respectively, and $89 and $267 for the thirteen and thirty-nine weeks ended September 28, 2016 , respectively. Total amounts capitalized into property and equipment were $51 and $115 for the thirteen and thirty-nine weeks ended September 27, 2017 , respectively. No amounts were capitalized for the thirteen and thirty-nine weeks ended September 28, 2016

NON-CONTROLLING INTERESTS

NON-CONTROLLING INTERESTS	9 Months Ended
	Sep. 27, 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 September 27, 2017 and December 28, 2016 . September 27, 2017 December 28, 2016 LLC Interests Ownership% LLC Interests Ownership % Number of LLC Interests held by Shake Shack Inc. 26,161,111 71.2 % 25,151,384 69.1 % Number of LLC Interests held by non-controlling interest holders 10,567,792 28.8 % 11,253,592 30.9 % Total LLC Interests outstanding 36,728,903 100.0 % 36,404,976 100.0 % The weighted average ownership percentages for the applicable reporting periods are used to attribute net income and other comprehensive income (loss) to Shake Shack Inc. and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentage for the thirteen and thirty-nine weeks ended September 27, 2017 was 29.1% and 29.7% , respectively. The non-controlling interest holders' weighted average ownership percentage for the thirteen and thirty-nine weeks ended September 28, 2016 was 33.9% and 38.5% , respectively. The following table summarizes the effects of changes in ownership of SSE Holdings on our equity during the thirteen and thirty-nine weeks ended September 27, 2017 and September 28, 2016 . Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 September 28 September 27 September 28 Net income attributable to Shake Shack Inc. $ 4,997 $ 3,766 $ 12,143 $ 8,526 Other comprehensive income (loss): Unrealized holding gains (losses) on available-for-sale securities 47 (5 ) 45 (10 ) Transfers (to) from non-controlling interests: Increase in additional paid-in capital as a result of the redemption of LLC Interests 841 4,708 2,883 15,086 Increase in additional paid-in capital as a result of activity under stock compensation plans 78 17 3,580 421 Total effect of changes in ownership interest on equity attributable to Shake Shack Inc. $ 5,963 $ 8,486 $ 18,651 $ 24,023 During the thirty-nine weeks ended September 27, 2017 and September 28, 2016 , an aggregate of 685,800 and 4,706,663 LLC Interests, respectively, were redeemed by non-controlling interest holders for newly-issued shares of Class A common stock, and we received 685,800 and 4,706,663 LLC Interests in connection with these redemptions for the thirty-nine weeks ended September 27, 2017 and September 28, 2016 , respectively, increasing our total ownership interest in SSE Holdings. During the thirty-nine weeks ended September 27, 2017 and September 28, 2016 , we received an aggregate of 323,927 and 101,837

EQUITY-BASED COMPENSATION

EQUITY-BASED COMPENSATION	9 Months Ended
	Sep. 27, 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 and thirty-nine weeks ended September 27, 2017 and September 28, 2016 is as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 September 28 September 27 September 28 Stock options $ 816 $ 1,085 $ 2,643 $ 3,168 Performance stock units 345 492 1,029 649 Restricted stock units 128 — 151 — Equity-based compensation expense $ 1,289 $ 1,577 $ 3,823 $ 3,817 Total income tax benefit recognized related to equity-based compensation $ 47 $ 53 $ 142 $ 117 Amounts are included in general and administrative expense and labor and related expenses on the Condensed Consolidated Statements of Income

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 27, 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 Thirty-Nine Weeks Ended September 27 2017 September 28 September 27 2017 September 28 Expected U.S. federal income taxes at statutory rate $ 3,627 35.0 % $ 3,139 34.0 % $ 9,609 35.0 % $ 7,734 34.0 % State and local income taxes, net of federal benefit 630 6.1 % 533 5.8 % 1,638 6.0 % 1,277 5.6 % Foreign withholding taxes 292 2.8 % 148 1.6 % 705 2.6 % 505 2.2 % Tax credits (399 ) (3.8 )% (243 ) (2.6 )% (777 ) (2.8 )% (369 ) (1.6 )% Non-controlling interest (1,132 ) (10.9 )% (1,134 ) (12.3 )% (3,114 ) (11.3 )% (3,089 ) (13.6 )% Other (524 ) (5.1 )% — — % (524 ) (2.0 )% — — % Income tax expense $ 2,494 24.1 % $ 2,443 26.5 % $ 7,537 27.5 % $ 6,058 26.6 % Our effective income tax rates for the thirteen weeks ended September 27, 2017 and September 28, 2016 were 24.1% and 26.5% , respectively. The decrease was driven by a benefit related to an adjustment recognized in connection with the filing of our prior year tax returns and higher tax credits, which were partially offset by the increase in our ownership interest in SSE Holdings, which increases our share of the taxable income of SSE Holdings, and higher foreign withholding taxes. Our weighted-average ownership interest in SSE Holdings was 70.9% and 66.1% for the thirteen weeks ended September 27, 2017 and September 28, 2016 , respectively. Our effective income tax rates for the thirty-nine weeks ended September 27, 2017 and September 28, 2016 were 27.5% and 26.6% , 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. 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 70.3% and 61.5% for the thirty-nine weeks ended September 27, 2017 and September 28, 2016 , respectively. This increase in ownership interest was partially offset by a benefit related to an adjustment recognized in connection with the filing of our prior year tax returns and higher tax credits. Deferred Tax Assets and Liabilities During the thirty-nine weeks ended September 27, 2017 , we acquired an aggregate of 1,009,727 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 $9,883 associated with the basis difference in our investment in SSE Holdings upon acquisition of these LLC Interests. As of September 27, 2017 , the total deferred tax asset related to the basis difference in our investment in SSE Holdings was $216,285 . 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 September 27, 2017 , the total valuation allowance established against the deferred tax asset to which this portion relates was $15,679 . During the thirty-nine weeks ended September 27, 2017 , we also recognized $5,216 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 September 27, 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 September 27, 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 2013 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 member of SSE Holdings, that is a party to the Tax Receivable Agreement, are assignable to transferees of their respective LLC Interests. During the thirty-nine weeks ended September 27, 2017 , we acquired an aggregate of 685,800 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 $12,918 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 thirty-nine weeks ended September 27, 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 thirty-nine weeks ended September 28, 2016 . As of September 27, 2017 , the total amount of TRA Payments due under the Tax Receivable Agreement, was $283,961 , of which $3,140 was included in other current liabilities on the Condensed Consolidated Balance Sheet. See Note 13

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 27, 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 and thirty-nine weeks ended September 27, 2017 and September 28, 2016 . Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 2017 September 28 September 27 2017 September 28 Numerator: Net income $ 7,870 $ 6,789 $ 19,916 $ 16,689 Less: net income attributable to non-controlling interests 2,873 3,023 7,773 8,163 Net income attributable to Shake Shack Inc. $ 4,997 $ 3,766 $ 12,143 $ 8,526 Denominator: Weighted-average shares of Class A common stock outstanding—basic 26,024 24,023 25,733 22,310 Effect of dilutive securities: Stock options 411 531 486 495 Performance stock units 26 — 24 — Restricted stock units 16 — 5 — Weighted-average shares of Class A common stock outstanding—diluted 26,477 24,554 26,248 22,805 Earnings per share of Class A common stock—basic $ 0.19 $ 0.16 $ 0.47 $ 0.38 Earnings per share of Class A common stock—diluted $ 0.19 $ 0.15 $ 0.46 $ 0.37 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. The following table presents potentially dilutive securities excluded from the computations of diluted earnings per share of Class A common stock for the thirteen and thirty-nine weeks ended September 27, 2017 and September 28, 2016 . Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 2017 September 28 September 27 2017 September 28 Stock options (1) 18,676 (2) — 18,676 (2) — Performance stock units (1) 86,396 (3) 62,800 (3) 86,396 (3) 62,800 (3) Shares of Class B common stock 10,567,792 (4) 11,754,078 (4) 10,567,792 (4) 11,754,078 (4) (1) Represents the number of instruments outstanding at the end of the period. Application of the treasury stock method would reduce this amount if they had a dilutive effect and were included in the computation of diluted earnings per share. (2) Excluded from the computation of diluted earnings per share of Class A common stock because the exercise price of the stock options exceeded the average market price of our Class A common stock during the period ("out-of-the-money"). (3) Excluded from the computation of diluted earnings per share of Class A common stock because the performance conditions associated with these awards were not met assuming the end of the reporting period was the end of the performance period. (4)

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	9 Months Ended
	Sep. 27, 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 thirty-nine weeks ended September 27, 2017 and September 28, 2016 : Thirty-Nine Weeks Ended September 27 September 28 Cash paid for: Income taxes, net of refunds $ 1,936 $ 1,292 Interest, net of amounts capitalized 684 40 Non-cash investing activities: Accrued purchases of property and equipment 10,138 5,792 Capitalized landlord assets for leases where we are deemed the accounting owner 9,095 — Accrued purchases of marketable securities 307 51 Capitalized equity-based compensation 86 107 Non-cash financing activities: Class A common stock issued in connection with the redemption of LLC Interests — 5 Cancellation of Class B common stock in connection with the redemption of LLC Interests — (5 ) Establishment of liabilities under tax receivable agreement 12,918 90,776 Accrued distributions payable to non-controlling interest holders — 607

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 27, 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 September 27, 2017 . The letters of credit expire in April 2018 and February 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 2018 and renews automatically for one -year periods through September 2019. In September 2017, we entered into an irrevocable standby letter of credit in conjunction with our new home office lease in the amount of $603 . The letter of credit expires in August 2018 and renews automatically for one -year periods through January 2034. 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) were required to release Shake Shack from all federal and/or state wage and hour claims that may have existed through the settlement date. In March 2016, the parties entered into a settlement agreement in the amount of $750 . In May 2017, we paid to the claims administrator $774 in full satisfaction of the amounts owed by us under the settlement agreement and related expenses. 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 September 27, 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 thirty-nine weeks ended September 27, 2017 and September 28, 2016 , we recognized liabilities totaling $12,918 and $90,776 , respectively, relating to our obligations under the Tax Receivable Agreement, after concluding that it was probable that we would have sufficient future taxable income over the term of the Tax Receivable Agreement to utilize the related tax benefits. As of September 27, 2017 and December 28, 2016 , our total obligations under the Tax Receivable Agreement, including accrued interest, were $283,961 and $272,482

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 27, 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, set forth below, 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. No amounts were paid to USHG for general corporate expenses during the thirteen weeks ended September 27, 2017 and $1 was paid to USHG during the thirteen weeks ended September 28, 2016 . Total amounts paid to USHG for general corporate expenses during the thirty-nine weeks ended September 27, 2017 and September 28, 2016 were $6 and $7 , respectively. These amounts are included in general and administrative expenses on the Condensed Consolidated Statements of Income . No amounts were payable to USHG as of September 27, 2017 . Total amounts payable to USHG as of December 28, 2016 were $1 , which is included in other current liabilities on the Condensed Consolidated Balance Sheets. No amounts were due from USHG as of September 27, 2017 and December 28, 2016 . Daily Provisions In May 2017 we began purchasing coffee cake from the restaurant Daily Provisions to offer as a breakfast item at our Madison Square Park Shack. Amounts paid to Daily Provisions during the thirteen and thirty-nine weeks ended September 27, 2017 were $4 . No amounts were paid to Daily Provisions during the thirteen and thirty-nine weeks ended September 28, 2016 . Total amounts payable to Daily Provisions as of September 27, 2017 were $1 , which are included in accounts payable on the Condensed Consolidated Balance Sheets. No amounts were payable to Daily provisions as of 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 in January 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 for the thirteen and thirty-nine weeks ended September 27, 2017 were $193 and $328 , respectively. For the thirteen and thirty-nine weeks ended September 28, 2016 a mounts paid to us by HYSE were $174 and $277 , respectively. These amounts are included in licensing revenue on the Condensed Consolidated Statements of Income . Total amounts due from HYSE as of September 27, 2017 and December 28, 2016 were $75 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 $531 for the thirteen and thirty-nine weeks ended September 27, 2017 , respectively. Amounts paid to Madison Square Park Conservancy as rent amounted to $195 and $585 for the thirteen and thirty-nine weeks ended September 28, 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 September 27, 2017 . Total amounts due to MSP Conservancy were $1 as of December 28, 2016 . These amounts are included in accrued expenses on the Condensed Consolidated Balance Sheets. Additionally, we received tenant improvement allowances from MSP Conservancy related to a reconstruction project which ended in 2015. No amounts were paid to us from MSP Conservancy during the thirteen weeks ended September 27, 2017 . During the thirty-nine weeks ended September 27, 2017 amounts paid to us from MSP Conservancy totaled $200 . No amounts were paid to us during the thirteen and thirty-nine weeks ended September 28, 2016 . No amounts were due to us from MSP Conservancy as of September 27, 2017 . 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. 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. During the thirty-nine weeks ended September 27, 2017 and September 28, 2016 the Great American Shake Sale raised $631 and $587 , respectively, for Share Our Strength. No amounts were raised for both the thirteen weeks ended September 27, 2017 and September 28, 2016 . All proceeds were remitted to Share Our Strength in the respective years. We incurred costs of approximately $29 and $148 for the thirteen and thirty-nine weeks ended September 27, 2017 , respectively, and $17 and $115 for the thirteen and thirty-nine weeks ended September 28, 2016 , respectively, which represent the cost of the free shakes redeemed. These costs are included in general and administrative expenses on the Condensed Consolidated Statements of Income. 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 and thirty-nine weeks ended September 27, 2017 were $19 and $57 , respectively, which are included in other operating expenses on the Condensed Consolidated Statements of Income . No amounts were paid to Olo for the thirteen and thirty-nine weeks ended September 28, 2016 . No amounts were payable to Olo as of September 27, 2017 and December 28, 2016 . Square, Inc. In July 2017, our Chief Executive Officer joined the Board of Directors of Square, Inc. ("Square"). We currently use certain point-of-sale applications, payment processing services, hardware and other enterprise platform services in connection with the processing of a limited amount of sales at certain of our Shacks, sales for certain off-site events and in connection with our kiosk technology. Additionally, in March 2017, we partnered with Caviar, Square’s food ordering service, for a limited-time delivery promotion. 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. No payments were made to the members of SSE Holdings pursuant to the Tax Receivable Agreement during the thirteen weeks ended September 27, 2017 . During the thirty-nine weeks ended September 27, 2017 , payments of $1,471 , inclusive of interest, were made to the members. No amounts were paid to the members during the thirteen and thirty-nine weeks ended September 28, 2016 . As of September 27, 2017 and December 28, 2016 , total amounts due under the Tax Receivable Agreement were $283,961 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 and thirty-nine weeks ended September 27, 2017 distributions paid to non-controlling interest holders were $13 and $2,392 , respectively. No distributions were paid to non-controlling interest holders for the thirteen weeks ended September 28, 2016 . For the thirty-nine weeks ended September 28, 2016 tax distributions of $1,602 were paid to non-controlling interest holders. No tax distributions were payable to non-controlling interest holders as of September 27, 2017 . As of December 28, 2016 tax distributions of $607

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 27, 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 , as amended ("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 September 27, 2017 and December 28, 2016 , the net assets of SSE Holdings were $189,581 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	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
Use of Estimates	Use of EstimatesThe 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 was 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 Accounting Standards Update (“ASU”) Description Expected Impact Effective Date 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. Based on our preliminary assessment, we believe that the pattern and timing of revenue recognition related to the fixed fees associated with our licensing agreements (such as restaurant opening and territory fees) will differ from current policy. Currently, restaurant opening fees are recorded as deferred revenue when received and proportionate amounts are recognized as revenue when a licensed Shack is opened and all material services and conditions related to the fee have been substantially performed. Territory fees are recorded as deferred revenue when received and recognized as revenue on a straight-line basis over the term of the license agreement, which generally begins upon execution of the contract. Under the new standard, we will likely identify the licenses granted to each restaurant under each licensing agreement as separate performance obligations. Accordingly, we would allocate the opening and territory fees to each restaurant and recognize such fees as revenue on a straight-line basis over the individual restaurants’ license terms, which generally begin when the restaurant opens. We do not expect the accounting for the sales-based royalties of our licensing agreements to change from current policy. We are still 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. We plan to adopt the standard on December 28, 2017, and we have not yet selected a transition method. 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)	9 Months Ended
	Sep. 27, 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 September 27, 2017 and December 28, 2016 : September 27, 2017 Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 21,862 $ — $ — $ 21,862 $ 21,862 $ — Level 1: Money market funds 5,025 — — 5,025 5,025 — Mutual funds 60,769 60 — 60,829 — 60,829 Level 2: Corporate debt securities (1) 2,493 2 (25 ) 2,470 — 2,470 Total $ 90,149 $ 62 $ (25 ) $ 90,186 $ 26,887 $ 63,299 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)
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 September 27, 2017 and December 28, 2016 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position: September 27, 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 1,638 (9 ) 322 (16 ) 1,960 (25 ) Total $ 1,638 $ (9 ) $ 322 $ (16 ) $ 1,960 $ (25 ) 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 and thirty-nine weeks ended September 27, 2017 and September 28, 2016 is as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 September 28 September 27 September 28 Available-for-sale securities: Dividend income $ 222 $ 133 $ 591 $ 133 Interest income 19 22 58 68 Loss on investments (12 ) (4 ) (27 ) (4 ) Total other income, net $ 229 $ 151 $ 622 $ 197
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 and thirty-nine weeks ended September 27, 2017 and September 28, 2016 is as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 September 28 September 27 September 28 Available-for-sale securities: Gross proceeds from sales and redemptions $ 584 $ 176 $ 1,212 $ 498 Cost basis of sales and redemptions 597 180 1,239 502 Gross realized gains included in net income 1 — 1 1 Gross realized losses included in net income (13 ) (4 ) (28 ) (5 ) Amounts reclassified out of accumulated other comprehensive loss 14 3 28 3

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 27, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories as of September 27, 2017 and December 28, 2016 consisted of the following: September 27 December 28 Food $ 774 $ 543 Wine 55 47 Beer 75 58 Beverages 102 79 Retail merchandise 121 79 Inventories $ 1,127 $ 806

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 27, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment as of September 27, 2017 and December 28, 2016 consisted of the following: September 27 December 28 Leasehold improvements $ 146,939 $ 120,629 Landlord funded assets 6,555 — Equipment 28,139 23,194 Furniture and fixtures 9,082 7,342 Computer equipment and software 10,966 8,710 Construction in progress (includes assets under construction from deemed landlord financing) 25,608 13,510 Property and equipment, gross 227,289 173,385 Less: accumulated depreciation 52,600 37,121 Property and equipment, net $ 174,689 $ 136,264

SUPPLEMENTAL BALANCE SHEET IN27

SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables)	9 Months Ended
	Sep. 27, 2017
Supplemental Balance Sheet Disclosures [Abstract]
Supplemental Balance Sheet Information	The components of other current liabilities as of September 27, 2017 and December 28, 2016 are as follows: September 27 December 28 Sales tax payable $ 1,539 $ 1,324 Current portion of liabilities under tax receivable agreement 3,140 4,580 Gift card liability 1,003 1,153 Deferred compensation 2,400 — Other 1,735 3,116 Other current liabilities $ 9,817 $ 10,173

NON-CONTROLLING INTERESTS (Tabl

NON-CONTROLLING INTERESTS (Tables)	9 Months Ended
	Sep. 27, 2017
Noncontrolling Interest [Abstract]
Schedule of ownership interests in SSE holdings	The following table summarizes the ownership interest in SSE Holdings as of September 27, 2017 and December 28, 2016 . September 27, 2017 December 28, 2016 LLC Interests Ownership% LLC Interests Ownership % Number of LLC Interests held by Shake Shack Inc. 26,161,111 71.2 % 25,151,384 69.1 % Number of LLC Interests held by non-controlling interest holders 10,567,792 28.8 % 11,253,592 30.9 % Total LLC Interests outstanding 36,728,903 100.0 % 36,404,976 100.0 %
Schedule of non-controlling interest	The following table summarizes the effects of changes in ownership of SSE Holdings on our equity during the thirteen and thirty-nine weeks ended September 27, 2017 and September 28, 2016 . Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 September 28 September 27 September 28 Net income attributable to Shake Shack Inc. $ 4,997 $ 3,766 $ 12,143 $ 8,526 Other comprehensive income (loss): Unrealized holding gains (losses) on available-for-sale securities 47 (5 ) 45 (10 ) Transfers (to) from non-controlling interests: Increase in additional paid-in capital as a result of the redemption of LLC Interests 841 4,708 2,883 15,086 Increase in additional paid-in capital as a result of activity under stock compensation plans 78 17 3,580 421 Total effect of changes in ownership interest on equity attributable to Shake Shack Inc. $ 5,963 $ 8,486 $ 18,651 $ 24,023

EQUITY-BASED COMPENSATION (Tabl

EQUITY-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 27, 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 and thirty-nine weeks ended September 27, 2017 and September 28, 2016 is as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 September 28 September 27 September 28 Stock options $ 816 $ 1,085 $ 2,643 $ 3,168 Performance stock units 345 492 1,029 649 Restricted stock units 128 — 151 — Equity-based compensation expense $ 1,289 $ 1,577 $ 3,823 $ 3,817 Total income tax benefit recognized related to equity-based compensation $ 47 $ 53 $ 142 $ 117

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 27, 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 Thirty-Nine Weeks Ended September 27 2017 September 28 September 27 2017 September 28 Expected U.S. federal income taxes at statutory rate $ 3,627 35.0 % $ 3,139 34.0 % $ 9,609 35.0 % $ 7,734 34.0 % State and local income taxes, net of federal benefit 630 6.1 % 533 5.8 % 1,638 6.0 % 1,277 5.6 % Foreign withholding taxes 292 2.8 % 148 1.6 % 705 2.6 % 505 2.2 % Tax credits (399 ) (3.8 )% (243 ) (2.6 )% (777 ) (2.8 )% (369 ) (1.6 )% Non-controlling interest (1,132 ) (10.9 )% (1,134 ) (12.3 )% (3,114 ) (11.3 )% (3,089 ) (13.6 )% Other (524 ) (5.1 )% — — % (524 ) (2.0 )% — — % Income tax expense $ 2,494 24.1 % $ 2,443 26.5 % $ 7,537 27.5 % $ 6,058 26.6 %

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Antidilutive Securities(Tables)	9 Months Ended
	Sep. 27, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
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 and thirty-nine weeks ended September 27, 2017 and September 28, 2016 . Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27 2017 September 28 September 27 2017 September 28 Numerator: Net income $ 7,870 $ 6,789 $ 19,916 $ 16,689 Less: net income attributable to non-controlling interests 2,873 3,023 7,773 8,163 Net income attributable to Shake Shack Inc. $ 4,997 $ 3,766 $ 12,143 $ 8,526 Denominator: Weighted-average shares of Class A common stock outstanding—basic 26,024 24,023 25,733 22,310 Effect of dilutive securities: Stock options 411 531 486 495 Performance stock units 26 — 24 — Restricted stock units 16 — 5 — Weighted-average shares of Class A common stock outstanding—diluted 26,477 24,554 26,248 22,805 Earnings per share of Class A common stock—basic $ 0.19 $ 0.16 $ 0.47 $ 0.38 Earnings per share of Class A common stock—diluted $ 0.19 $ 0.15 $ 0.46 $ 0.37

SUPPLEMENTAL CASH FLOW INFORM32

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	9 Months Ended
	Sep. 27, 2017
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash Flow Information	The following table sets forth supplemental cash flow information for the thirty-nine weeks ended September 27, 2017 and September 28, 2016 : Thirty-Nine Weeks Ended September 27 September 28 Cash paid for: Income taxes, net of refunds $ 1,936 $ 1,292 Interest, net of amounts capitalized 684 40 Non-cash investing activities: Accrued purchases of property and equipment 10,138 5,792 Capitalized landlord assets for leases where we are deemed the accounting owner 9,095 — Accrued purchases of marketable securities 307 51 Capitalized equity-based compensation 86 107 Non-cash financing activities: Class A common stock issued in connection with the redemption of LLC Interests — 5 Cancellation of Class B common stock in connection with the redemption of LLC Interests — (5 ) Establishment of liabilities under tax receivable agreement 12,918 90,776 Accrued distributions payable to non-controlling interest holders — 607

NATURE OF OPERATIONS (Details)

NATURE OF OPERATIONS (Details)	Feb. 04, 2015$ / sharesshares	Sep. 27, 2017Restaurant	Dec. 28, 2016
Class of Stock [Line Items]
Ownership percent of noncontrolling interest		71.20%	69.10%
Number of restaurants		143
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		79
United States | Licensed
Class of Stock [Line Items]
Number of restaurants		10
Non-United States | Licensed
Class of Stock [Line Items]
Number of restaurants		54

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Sep. 27, 2017	Dec. 28, 2016
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Net assets held by SSE holders	$ 189,581	$ 158,845

FAIR VALUE MEASUREMENTS - Cash,

FAIR VALUE MEASUREMENTS - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 27, 2017	Dec. 28, 2016	Sep. 28, 2016	Dec. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	$ 26,887	$ 11,607	$ 12,227	$ 70,849
Cash and cash equivalents fair value	26,887	11,607
Gross Unrealized Gains	62	3
Gross Unrealized Losses	(25)	(30)
Fair Value Including Mutual Funds	90,186
Fair Value		74,285
Fair value of marketable securities	63,299	62,678
Total cost basis including Mutual Funds	90,149	74,312
Level 1 | Mutual funds
Schedule of Available-for-sale Securities [Line Items]
Mutual funds	60,769	60,232
Fair value of marketable securities	60,829	60,232
Level 2 | Mutual funds
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Gains	60
Level 2 | Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Corporate debt securities	2,493	2,473
Gross Unrealized Gains	2	3
Gross Unrealized Losses	(25)	(30)
Fair value of marketable securities	2,470	2,446
Cash
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	21,862	6,322
Cash and cash equivalents fair value	21,862	6,322
Money market funds | Level 1
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	5,025	5,285
Cash and cash equivalents fair value	$ 5,025	$ 5,285

FAIR VALUE MEASUREMENTS - Addit

FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016	Dec. 28, 2016
Fair Value Disclosures [Abstract]
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax		$ 37		$ 37		$ 27
Fair value of investments with unrealized losses		25		25		$ 30
Change in net unrealized holding losses	[1]	$ 53	$ (11)	$ 36	$ (19)
[1]	Net of tax benefit (expense) of $0 for the thirteen and thirty-nine weeks ended September 27, 2017 and September 28, 2016

FAIR VALUE MEASUREMENTS - Other

FAIR VALUE MEASUREMENTS - Other Income From Available For Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Available-for-sale securities
Other Income	$ 229	$ 151	$ 622	$ 197
Available-for-sale Securities
Available-for-sale securities
Dividend income	222	133	591	133
Interest income	19	22	58	68
Loss on investments	(12)	(4)	(27)	(4)
Other Income	$ 229	$ 151	$ 622	$ 197

FAIR VALUE MEASUREMENTS - Avail

FAIR VALUE MEASUREMENTS - Available for Sale Securities and Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Available-for-sale securities:
Gross proceeds from sales and redemptions		$ 584	$ 176	$ 1,212	$ 498
Cost basis of sales and redemptions		597	180	1,239	502
Gross realized gains included in net income		1	0	1	1
Gross realized losses included in net income		(13)	(4)	(28)	(5)
Amounts reclassified out of accumulated other comprehensive loss	[1]	$ 14	$ 3	$ 28	$ 3
[1]	Net of tax benefit (expense) of $0 for the thirteen and thirty-nine weeks ended September 27, 2017 and September 28, 2016

FAIR VALUE MEASUREMENTS FAIR VA

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Unrealized Loss on Investments (Details) - USD ($) $ in Thousands	Sep. 27, 2017	Dec. 28, 2016
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 1,638	$ 1,244
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(25)	(30)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(9)	(10)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	322	540
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(16)	(20)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,960	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	1,638	1,244
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(25)	(30)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(9)	(10)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	322	540
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(16)	(20)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ 1,960	$ 1,784

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 27, 2017	Dec. 28, 2016
Inventory [Line Items]
Inventories	$ 1,127	$ 806
Food
Inventory [Line Items]
Inventories	774	543
Wine
Inventory [Line Items]
Inventories	55	47
Beer
Inventory [Line Items]
Inventories	75	58
Beverages
Inventory [Line Items]
Inventories	102	79
Retail merchandise
Inventory [Line Items]
Inventories	$ 121	$ 79

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Sep. 27, 2017	Dec. 28, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 227,289	$ 173,385
Less: accumulated depreciation	52,600	37,121
Property and equipment, net	174,689	136,264
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	146,939	120,629
Buildings, Deemed Landlord Financing [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,555	0
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	28,139	23,194
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,082	7,342
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,966	8,710
Construction in progress (includes assets under construction from deemed landlord financing)
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 25,608	$ 13,510

SUPPLEMENTAL BALANCE SHEET IN42

SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands	Sep. 27, 2017	Dec. 28, 2016
Other Liabilities, Current
Sales tax payable	$ 1,539	$ 1,324
Current portion of liabilities under tax receivable agreement	3,140	4,580
Gift card liability	1,003	1,153
Deferred Compensation Liability, Current	2,400	0
Other	1,735	3,116
Other current liabilities	$ 9,817	$ 10,173

DEBT (Details)

DEBT (Details) - USD ($)	Sep. 27, 2017	Feb. 04, 2015	Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016	Dec. 28, 2016
Debt Instrument [Line Items]
Deemed landlord financing	$ 13,162,000		$ 13,162,000		$ 13,162,000		$ 2,007,000
Interest costs incurred			(527,000)	$ (89,000)	(1,260,000)	$ (267,000)
Interest Expense			475,000	89,000	1,144,000	267,000
Interest costs capitalized			51,000	$ 0	115,000	$ 0
Notes payable
Debt Instrument [Line Items]
Notes payable	0		0		$ 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	19,317,000		19,317,000		$ 19,317,000
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	$ 683,000		$ 683,000		$ 683,000
Revolving Credit Facility | Minimum | Line of credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.30%
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	3.30%
Revolving Credit Facility | Maximum | Line of credit | Prime rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.80%

NON-CONTROLLING INTERESTS - Own

NON-CONTROLLING INTERESTS - Ownership Interest in SSE Holdings (Details) - shares	Sep. 27, 2017	Dec. 28, 2016
Noncontrolling Interest [Abstract]
Number of LLC Interests held by Shake Shack Inc. (in shares)	26,161,111	25,151,384
Number of LLC Interests held by Shake Shack Inc. (as a percentage)	71.20%	69.10%
Number of LLC Interests held by non-controlling interest holders (in shares)	10,567,792	11,253,592
Number of LLC Interests held by non-controlling interest holders (as a percentage)	28.80%	30.90%
Total LLC Interests outstanding (in shares)	36,728,903	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		9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Noncontrolling Interest [Line Items]
Non-controlling interest holders' weighted average ownership percentage	29.10%	33.90%	29.70%	38.50%
Units acquired during the period (in shares)			1,009,727
Number of units redeemed (in shares)			685,800	4,706,663
Redemption or Exchange of Units
Noncontrolling Interest [Line Items]
Units acquired during the period (in shares)			685,800	4,706,663
Employee Stock Option
Noncontrolling Interest [Line Items]
Units acquired during the period (in shares)			323,927	101,837

NON-CONTROLLING INTERESTS - Ch

NON-CONTROLLING INTERESTS - Changes in Ownership Interests in SSE Holdings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Noncontrolling Interest [Line Items]
Net Income (Loss) Attributable to Parent	$ 4,997	$ 3,766	$ 12,143	$ 8,526
Net unrealized losses related to available-for-sale securities	67	(8)	64	(16)
Total effect of changes in ownership interest on equity attributable to Shake Shack Inc.	5,963	8,486	18,651	24,023
Redemption or Exchange of Units
Noncontrolling Interest [Line Items]
Increase (decrease) in additional paid-in capital	841	4,708	2,883	15,086
Employee Stock Option
Noncontrolling Interest [Line Items]
Increase (decrease) in additional paid-in capital	78	17	3,580	421
Accumulated Other Comprehensive Loss
Noncontrolling Interest [Line Items]
Net unrealized losses related to available-for-sale securities	$ 47	$ (5)	$ 45	$ (10)

EQUITY-BASED COMPENSATION - Sch

EQUITY-BASED COMPENSATION - Schedule of compensation expense recognized (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 1,289	$ 1,577	$ 3,823	$ 3,817
Total income tax benefit recognized related to equity-based compensation	47	53	142	117
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	816	1,085	2,643	3,168
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	345	492	1,029	649
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 128	$ 0	$ 151	$ 0

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Income Tax Disclosure [Abstract]
Document period end date			Sep. 27, 2017
Expected U.S. federal income taxes at statutory rate, percentage	35.00%	34.00%	35.00%	34.00%
Expected U.S. federal income taxes at statutory rate	$ 3,627	$ 3,139	$ 9,609	$ 7,734
State and local income taxes, net of federal benefit	$ 630	$ 533	$ 1,638	$ 1,277
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent	6.10%	5.80%	6.00%	5.60%
Foreign withholding taxes	$ 292	$ 148	$ 705	$ 505
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent	2.80%	1.60%	2.60%	2.20%
Tax credits	$ (399)	$ (243)	$ (777)	$ (369)
Effective Income Tax Rate Reconciliation, Tax Credit, Percent	(3.80%)	(2.60%)	(2.80%)	(1.60%)
Non-controlling interest	$ (1,132)	$ (1,134)	$ (3,114)	$ (3,089)
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent	(10.90%)	(12.30%)	(11.30%)	(13.60%)
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	$ (524)	$ 0	$ (524)	$ 0
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Percent	(5.10%)		(2.00%)
Income tax expense	$ 2,494	$ 2,443	$ 7,537	$ 6,058
Effective income tax rate reconciliation (in percentage)	24.10%	26.50%	27.50%	26.60%

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016	Dec. 28, 2016
Income Tax Contingency [Line Items]
Effective income tax rate reconciliation (in percentage)	24.10%	26.50%	27.50%	26.60%
Noncontrolling Interest, Ownership Percentage by Parent, Weighted Average	70.90%	66.10%	70.30%	61.50%
Units acquired during the period (in shares)			1,009,727
Deferred tax asset recognized as a result of investment in partnership			$ 9,883,000
Deferred Tax Asset, Investment in Partnership	$ 216,285,000		216,285,000
Valuation allowance, deferred tax asset	15,679,000		15,679,000
Deferred tax asset related to additional tax basis			5,216,000
Uncertain tax positions	$ 0		$ 0
Percentage of tax benefits due to equity owners	85.00%		85.00%
Tax Receivable Agreement Payments To Related Parties	$ 0	$ 0	$ 1,471,000	$ 0
Percentage of tax benefits expected to be realized	15.00%		15.00%
Establishment of liabilities under tax receivable agreement			$ 12,918,000	$ 90,776,000
Liabilities under tax receivable agreement	$ 283,961,000		283,961,000		$ 272,482,000
Current portion of liabilities under tax receivable agreement	$ 3,140,000		$ 3,140,000		$ 4,580,000
Redemption or Exchange of Units
Income Tax Contingency [Line Items]
Units acquired during the period (in shares)			685,800	4,706,663

EARNINGS PER SHARE - Schedule50

EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Numerator:
Document period end date			Sep. 27, 2017
Net income	$ 7,870	$ 6,789	$ 19,916	$ 16,689
Less: net income attributable to non-controlling interests	2,873	3,023	7,773	8,163
NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC.	$ 4,997	$ 3,766	$ 12,143	$ 8,526
Denominator:
Weighted-average shares of Class A common stock outstanding—basic (in shares)	26,024	24,023	25,733	22,310
Effect of dilutive securities:
Weighted-average shares of Class A common stock outstanding—diluted (in shares)	26,477	24,554	26,248	22,805
Earnings (loss) per share of Class A common stock—basic (in dollars per share)	$ 0.19	$ 0.16	$ 0.47	$ 0.38
Earnings (loss) per share of Class A common stock—diluted (in dollars per share)	$ 0.19	$ 0.15	$ 0.46	$ 0.37
Performance stock units
Effect of dilutive securities:
Stock options (in shares)	26	0	24	0
Restricted Stock Units (RSUs) [Member]
Effect of dilutive securities:
Stock options (in shares)	16	0	5	0
Employee Stock Option
Effect of dilutive securities:
Stock options (in shares)	411	531	486	495

EARNINGS PER SHARE - Antidilut

EARNINGS PER SHARE - Antidilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016	Sep. 27, 2017	Sep. 28, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Document period end date			Sep. 27, 2017
Common stock | Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	18,676	0	18,676	0
Common stock | Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	86,396	62,800	86,396	62,800
Common stock | Shares of Class B common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	10,567,792	11,754,078	10,567,792	11,754,078

SUPPLEMENTAL CASH FLOW INFORM52

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2017	Sep. 28, 2016
Cash paid for:
Income taxes, net of refunds	$ 1,936	$ 1,292
Interest, net of amounts capitalized	684	40
Non-cash investing activities:
Accrued purchases of property and equipment	10,138	5,792
Noncash Deemed Landlord Financing	9,095	0
Equity Securities Incurred But Not Yet Paid	307	51
Capitalized equity-based compensation	86	107
Non-cash financing activities:
Establishment of liabilities under tax receivable agreement	12,918	90,776
Accrued Distributions to Noncontrolling Interests	0	607
Redemption or Exchange of Units | Class A Common Stock
Non-cash financing activities:
Class A common stock issued	0	5
Redemption or Exchange of Units | Class B Common Stock
Non-cash financing activities:
Cancellation of Class B common stock	$ 0	$ (5)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	May 01, 2017USD ($)	Nov. 30, 2015USD ($)manager	Sep. 27, 2017USD ($)	Sep. 28, 2016USD ($)	Dec. 28, 2016USD ($)	Dec. 31, 2013USD ($)
Loss Contingencies [Line Items]
Document period end date			Sep. 27, 2017
Percentage of tax benefits due to equity owners			85.00%
Establishment of liabilities under tax receivable agreement			$ 12,918	$ 90,776
Tax receivable agreement liability			$ 283,961		$ 272,482
Exempt Classification Matter
Loss Contingencies [Line Items]
Number of former Shake Shack managers | manager		2
Settlement amount		$ (750)
Loss Contingency Accrual, Payments	$ 774
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			$ 603			$ 80

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	3 Months Ended		9 Months Ended
	Sep. 27, 2017USD ($)	Sep. 28, 2016USD ($)	Sep. 27, 2017USD ($)renewal_option	Sep. 28, 2016USD ($)	Dec. 28, 2016USD ($)
Related Party Transaction [Line Items]
Percentage of tax benefits due to equity owners	85.00%		85.00%
Tax Receivable Agreement Payments To Related Parties	$ 0	$ 0	$ 1,471,000	$ 0
Tax receivable agreement liability	283,961,000		283,961,000		$ 272,482,000
Distributions paid to non-controlling interest holders	13,000	0	2,392,000	1,602,000
Tax distributions payable to non-controlling interest holders	0		0		607,000
Affiliated Entity
Related Party Transaction [Line Items]
Amount paid to USHG for general corporate expenses	0	1,000	6,000	7,000
Due from related parties, current	0		0		0
Amounts due to related parties, current	0		0		1,000
Share Our Strength [Member]
Related Party Transaction [Line Items]
Expenses from transactions with related party	29,000	17,000	148,000	115,000
Charitable campaign flow through	0	0	631,000	587,000
Daily Provisions
Related Party Transaction [Line Items]
Amounts due to related parties, current and noncurrent	1,000		1,000
Revenue from related parties		0	$ 4,000	0
Amounts due to related parties, current					0
Subsidiary to Affiliated Entity [Member]
Related Party Transaction [Line Items]
Number of renewal terms | renewal_option			5
Renewal option period			5 years
Concession Income [Member] | Subsidiary to Affiliated Entity [Member]
Related Party Transaction [Line Items]
Due from related parties, current	75,000		$ 75,000		11,000
Revenue from Related Parties	193,000	174,000	328,000	277,000
Rent Expense [Member] | Madison Square Park Conservancy
Related Party Transaction [Line Items]
Expenses from transactions with related party	199,000	195,000	531,000	585,000
Amounts due to related parties, current	0		0		1,000
Tenant Improvement Allowance [Member] | Madison Square Park Conservancy
Related Party Transaction [Line Items]
Accounts Receivable, Related Parties, Current	0		0		200,000
Related Party Transaction, Other Revenues from Transactions with Related Party	0	0	200,000	0
Mobo Systems, Inc. [Member] | Board of Directors Chairman
Related Party Transaction [Line Items]
Expenses from transactions with related party	19,000	$ 0	57,000	$ 0
Amounts due to related parties, current	$ 0		$ 0		$ 0