Shake Shack Inc. Leases Disclosure
| Classification | December 31 2025 | December 25 2024 | ||||||||||||
| Operating leases | $ | 507,253 | $ | 424,611 | ||||||||||
| Finance leases | 15,056 | 12,225 | ||||||||||||
| Total right-of-use assets | $ | 522,309 | $ | 436,836 | ||||||||||
| Operating leases: | ||||||||||||||
| Operating lease liabilities, current | $ | 63,553 | $ | 55,739 | ||||||||||
| Long-term operating lease liabilities | 575,138 | 494,499 | ||||||||||||
| Finance leases: | ||||||||||||||
| Other current liabilities | 5,959 | 4,086 | ||||||||||||
| 9,745 | 8,616 | |||||||||||||
| Total lease liabilities | $ | 654,395 | $ | 562,940 | ||||||||||
| Classification | 2025 | 2024 | 2023 | ||||||||||||||||||||
| Operating lease cost | Occupancy and related expenses Pre-opening costs General and administrative expenses | $ | 88,849 | $ | 77,432 | $ | 67,781 | ||||||||||||||||
| Finance lease cost: | |||||||||||||||||||||||
| Amortization of right-of-use assets | Depreciation and amortization expense | 5,721 | 4,181 | 3,324 | |||||||||||||||||||
| Interest on lease liabilities | Interest expense | 920 | 770 | 476 | |||||||||||||||||||
| Variable lease cost | Occupancy and related expenses Pre-opening costs General and administrative expenses | 25,128 | 21,694 | 18,305 | |||||||||||||||||||
| Short-term lease cost | Occupancy and related expenses | 665 | 840 | 938 | |||||||||||||||||||
| Total lease cost | $ | 121,283 | $ | 104,917 | $ | 90,824 | |||||||||||||||||
| Operating Leases | Finance Leases | ||||||||||
| 2026¹ | $ | 82,229 | $ | 6,674 | |||||||
| 2027 | 106,097 | 6,086 | |||||||||
| 2028 | 103,001 | 3,308 | |||||||||
| 2029 | 95,959 | 500 | |||||||||
| 2030 | 83,522 | 284 | |||||||||
| Thereafter | 349,842 | 96 | |||||||||
| Total minimum payments | 820,650 | 16,948 | |||||||||
| Less: imputed interest | 199,883 | 1,245 | |||||||||
| Total lease liabilities | $ | 620,767 | $ | 15,703 | |||||||
| December 31 2025 | December 25 2024 | |||||||||||||
| Weighted average remaining lease term (years): | ||||||||||||||
| Operating leases | 8.6 | 8.7 | ||||||||||||
| Finance leases | 2.8 | 3.3 | ||||||||||||
| Weighted average discount rate: | ||||||||||||||
| Operating leases | 6.3 | % | 6.2 | % | ||||||||||
| Finance leases | 5.8 | % | 6.1 | % | ||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
| Operating cash flows from operating leases | $ | 100,328 | $ | 91,783 | $ | 72,128 | ||||||||||||||
| Operating cash flows from finance leases | 920 | 770 | 476 | |||||||||||||||||
| Financing cash flows from finance leases | 5,511 | 3,964 | 3,272 | |||||||||||||||||
| Right-of-use assets obtained in exchange for lease obligations: | ||||||||||||||||||||
| Operating leases | 136,882 | 84,887 | 72,403 | |||||||||||||||||
| Finance leases | 9,553 | 4,792 | 8,972 | |||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2016 | Mar 13, 2017 | |
| 2015 | Mar 30, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.