Shake Shack Inc.SHAK

Shake Shack Inc. Earnings Per Share Disclosure

10-KFiled Feb 26, 20263 min read
EARNINGS PER SHARE
Basic earnings per share of Class A common stock is computed by dividing Net income attributable to Shake Shack Inc. by the weighted average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing Net income attributable to Shake Shack Inc. by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock (in thousands, except per share amounts):
202520242023
Numerator:
Net income attributable to Shake Shack Inc.—basic$45,725 $10,207 $20,264 
Reallocation of net income attributable to non-controlling interests from the assumed conversion of Class B shares— 613 726 
Net income attributable to Shake Shack Inc.—diluted$45,725 $10,820 $20,990 
Denominator:
Weighted average shares of Class A common stock outstanding—basic40,212 39,830 39,419 
Effect of dilutive securities:
Stock options2 52 75 
Performance stock units35 69 11 
Restricted stock units131 173 85 
Convertible Notes1,467 1,467 1,467 
Shares of Class B common stock— 2,612 2,842 
Weighted average shares of Class A common stock outstanding—diluted41,847 44,203 43,899 
Earnings per share of Class A common stock—basic$1.14 $0.26 $0.51 
Earnings per share of Class A common stock—diluted$1.09 $0.24 $0.48 
The effect of potential share settlement of the Convertible Notes outstanding for the period is included as potentially dilutive shares of Class A common stock under application of the if-converted method in the computation of diluted earnings per share, except when the effect would be anti-dilutive. Refer to Note 8, Debt, for additional information.
Shares of Class B common stock do not share in the earnings or losses of Shake Shack and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. However, shares of Class B common stock outstanding for the period are considered potentially dilutive shares of Class A common stock under application of the if-converted method and are included in the computation of diluted earnings per share, except when the effect would be anti-dilutive.
The following table presents potentially dilutive securities excluded from the computations of diluted earnings per share of Class A common stock:
202520242023
Performance stock units120,706 (1)50,556 (1)99,718 (1)
Shares of Class B common stock2,434,789 (2)— — 
(1)Number of securities outstanding at the end of the period that were excluded from the computation of diluted earnings per share of Class A common stock because the performance conditions associated with these awards were not met assuming the end of the reporting period was the end of the performance period.
(2)Number of securities outstanding at the end of the period that were excluded from the computation of diluted earnings per share of Class A common stock because the effect would have been anti-dilutive.
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Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2021Feb 18, 2022
2020Feb 26, 2021
2019Feb 24, 2020
2018Feb 25, 2019
2017Feb 26, 2018
2016Mar 13, 2017
2015Mar 30, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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