Document and Entity Information
Document and Entity Information Document and Entity Information - shares | 3 Months Ended | |
Mar. 29, 2023 | Apr. 26, 2023 | |
Document Information [Line Items] | ||
Security Exchange Name | NYSE | |
Trading Symbol | SHAK | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 | |
Entity Interactive Data Current | Yes | |
Local Phone Number | 747-7200 | |
City Area Code | 646 | |
Entity Address, Postal Zip Code | 10014 | |
Entity Tax Identification Number | 47-1941186 | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-36823 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Document type | 10-Q | |
Amendment flag | false | |
Document Period End Date | Mar. 29, 2023 | |
Document fiscal year focus | 2023 | |
Document fiscal period focus | Q1 | |
Entity registrant name | SHAKE SHACK INC. | |
Entity Address, Address Line One | 225 Varick Street | |
Entity Address, Address Line Two | Suite 301 | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity central index key | 0001620533 | |
Current fiscal year end date | --12-27 | |
Entity filer category | Large Accelerated Filer | |
Entity current reporting status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity common stock, shares outstanding (in shares) | 39,405,023 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity common stock, shares outstanding (in shares) | 2,844,513 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 29, 2023 | Dec. 28, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 293,430 | $ 230,521 |
Marketable securities | 0 | 80,707 |
Accounts receivable, net | 14,175 | 13,877 |
Inventories | 4,394 | 4,184 |
Prepaid expenses and other current assets | 18,075 | 14,699 |
Total current assets | 330,074 | 343,988 |
Property and equipment, net of accumulated depreciation of $310,939 and $290,362, respectively | 479,617 | 467,031 |
Operating lease assets | 379,475 | 367,488 |
Deferred income taxes, net | 301,538 | 300,538 |
Other assets | 16,211 | 15,817 |
TOTAL ASSETS | 1,506,915 | 1,494,862 |
Current liabilities: | ||
Accounts payable | 16,002 | 20,407 |
Accrued expenses | 45,677 | 47,945 |
Accrued wages and related liabilities | 18,678 | 17,576 |
Operating lease liabilities, current | 44,578 | 42,238 |
Other current liabilities | 18,117 | 19,552 |
Total current liabilities | 143,052 | 147,718 |
Long-term debt | 244,851 | 244,589 |
Long-term operating lease liabilities | 441,554 | 427,227 |
Liabilities under tax receivable agreement, net of current portion | 235,361 | 234,893 |
Other long-term liabilities | 22,192 | 20,687 |
Total liabilities | 1,087,010 | 1,075,114 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of March 29, 2023 and December 28, 2022. | 0 | 0 |
Additional paid-in capital | 417,451 | 415,611 |
Accumulated deficit | (22,071) | (20,537) |
Accumulated other comprehensive loss | (4) | 0 |
Total stockholders' equity attributable to Shake Shack Inc. | 395,418 | 395,116 |
Non-controlling interests | 24,487 | 24,632 |
Total equity | 419,905 | 419,748 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,506,915 | 1,494,862 |
Class A Common Stock | ||
Stockholders' equity: | ||
Common stock | 39 | 39 |
Class B Common Stock | ||
Stockholders' equity: | ||
Common stock | $ 3 | $ 3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
TOTAL REVENUE | $ 253,278 | $ 203,391 |
Shack-level operating expenses: | ||
Food and paper costs | 71,772 | 59,884 |
Labor and related expenses | 74,264 | 60,465 |
Other operating expenses | 34,936 | 30,171 |
Occupancy and related expenses | 18,583 | 16,276 |
General and administrative expenses | 31,311 | 31,386 |
Depreciation and amortization expense | 21,322 | 16,855 |
Pre-opening costs | 3,557 | 2,712 |
Impairment and loss on disposal of assets | 722 | 577 |
TOTAL EXPENSES | 256,467 | 218,326 |
LOSS FROM OPERATIONS | (3,189) | (14,935) |
Total | 2,837 | (289) |
Interest expense | (403) | (355) |
LOSS BEFORE INCOME TAXES | (755) | (15,579) |
Income tax expense (benefit) | 867 | (4,297) |
NET LOSS | (1,622) | (11,282) |
Reallocation of net income attributable to non-controlling interests from the assumed conversion of Class B shares | (88) | (1,120) |
NET LOSS ATTRIBUTABLE TO SHAKE SHACK INC. | $ (1,534) | $ (10,162) |
Loss per share of Class A common stock: | ||
Basic (in dollars per share) | $ (0.04) | $ (0.26) |
Diluted (in dollars per share) | $ (0.04) | $ (0.26) |
Weighted average shares of Class A common stock outstanding: | ||
Basic (in shares) | 39,332 | 39,163 |
Diluted (in shares) | 39,332 | 39,163 |
Shack sales | ||
TOTAL REVENUE | $ 244,254 | $ 196,791 |
Licensing revenue | ||
TOTAL REVENUE | $ 9,024 | $ 6,600 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (1,622) | $ (11,282) |
Other comprehensive loss, net of tax(1): | ||
Change in foreign currency translation adjustment | (4) | (1) |
OTHER COMPREHENSIVE LOSS | (4) | (1) |
COMPREHENSIVE LOSS | (1,626) | (11,283) |
Less: Comprehensive loss attributable to non-controlling interests | (88) | (1,120) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAKE SHACK INC. | $ (1,538) | $ (10,163) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Income tax benefit | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Non- Controlling Interest |
Beginning balance (shares) at Dec. 29, 2021 | 39,142,397 | 2,921,587 | |||||||
Beginning balance at Dec. 29, 2021 | $ 435,600 | $ 39 | $ 3 | $ 405,940 | $ 3,554 | $ 1 | $ 26,063 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (11,282) | (10,162) | (1,120) | ||||||
Other comprehensive loss: | |||||||||
Change in foreign currency translation adjustment | (1) | (1) | |||||||
Equity-based compensation | 3,224 | 3,224 | |||||||
Activity under stock compensation plans (in shares) | 65,893 | ||||||||
Activity under stock compensation plans | (2,024) | (2,276) | 252 | ||||||
Redemption of LLC Interests (in shares) | 10,000 | (10,000) | |||||||
Redemption of LLC Interests | 0 | 49 | (49) | ||||||
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis | 44 | 44 | |||||||
Distributions paid to non-controlling interest holders | (302) | (302) | |||||||
Ending balance (shares) at Mar. 30, 2022 | 39,218,290 | 2,911,587 | |||||||
Ending balance at Mar. 30, 2022 | 425,259 | $ 39 | $ 3 | 406,981 | (6,608) | 0 | 24,844 | ||
Beginning balance (shares) at Dec. 28, 2022 | 39,284,998 | 2,869,513 | 39,284,998 | 2,869,513 | |||||
Beginning balance at Dec. 28, 2022 | 419,748 | $ 39 | $ 3 | 415,611 | (20,537) | 0 | 24,632 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (1,622) | (1,534) | (88) | ||||||
Other comprehensive loss: | |||||||||
Change in foreign currency translation adjustment | (4) | (4) | |||||||
Equity-based compensation | 3,864 | 3,864 | |||||||
Activity under stock compensation plans (in shares) | 94,907 | ||||||||
Activity under stock compensation plans | (2,513) | (2,699) | 186 | ||||||
Redemption of LLC Interests (in shares) | 25,000 | (25,000) | |||||||
Redemption of LLC Interests | 0 | 194 | (194) | ||||||
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis | 481 | 481 | |||||||
Distributions paid to non-controlling interest holders | (49) | (49) | |||||||
Ending balance (shares) at Mar. 29, 2023 | 39,404,905 | 2,844,513 | 39,404,905 | 2,844,513 | |||||
Ending balance at Mar. 29, 2023 | $ 419,905 | $ 39 | $ 3 | $ 417,451 | $ (22,071) | $ (4) | $ 24,487 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
OPERATING ACTIVITIES | ||
Net loss (including amounts attributable to non-controlling interests) | $ (1,622) | $ (11,282) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization expense | 21,322 | 16,855 |
Amortization of debt issuance costs | 262 | 262 |
Amortization of cloud computing asset | 439 | 332 |
Non-cash operating lease cost | 16,075 | 13,681 |
Equity-based compensation | 3,802 | 3,188 |
Deferred income taxes | 1,917 | 5,719 |
Non-cash interest expense | 58 | 5 |
Gain on sale of equity securities | (81) | 0 |
Impairment and loss on disposal of assets | 722 | 577 |
Unrealized loss on equity securities | 0 | 400 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,354 | 1,902 |
Inventories | (210) | 70 |
Prepaid expenses and other current assets | (1,580) | (2,392) |
Other assets | (1,218) | (2,111) |
Accounts payable | (5,799) | (2,862) |
Accrued expenses | (2,018) | (10,369) |
Accrued wages and related liabilities | 1,068 | 1,394 |
Other current liabilities | (2,389) | 5,312 |
Operating lease liabilities | (16,830) | (11,726) |
Other long-term liabilities | 2,548 | (985) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 19,820 | 7,970 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | (34,326) | (27,974) |
Purchases of marketable securities | (690) | (77) |
Sales of marketable securities | 81,478 | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 46,462 | (28,051) |
FINANCING ACTIVITIES | ||
Payments on principal of finance leases | (807) | (747) |
Distributions paid to non-controlling interest holders | (49) | (302) |
Proceeds from stock option exercises | 113 | 84 |
Employee withholding taxes related to net settled equity awards | (2,626) | (2,108) |
NET CASH USED IN FINANCING ACTIVITIES | (3,369) | (3,073) |
Effect of exchange rate changes on cash and cash equivalents | (4) | (1) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 62,909 | (23,155) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 230,521 | 302,406 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 293,430 | $ 279,251 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION DISCLOSURE | 3 Months Ended |
Mar. 29, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION DISCLOSURE | SUPPLEMENTAL CASH FLOW INFORMATION The following table sets forth supplemental cash flow information: Thirteen Weeks Ended March 29 March 30 Cash paid for: Income taxes, net of refunds $ 782 $ 936 Interest, net of amounts capitalized 83 57 Non-cash investing activities: Accrued purchases of property and equipment 25,752 20,080 Capitalized equity-based compensation 43 25 Non-cash financing activities: Establishment of liabilities under tax receivable agreement 472 228 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION DISCLOSURE (Tables) | 3 Months Ended |
Mar. 29, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow Information | The following table sets forth supplemental cash flow information: Thirteen Weeks Ended March 29 March 30 Cash paid for: Income taxes, net of refunds $ 782 $ 936 Interest, net of amounts capitalized 83 57 Non-cash investing activities: Accrued purchases of property and equipment 25,752 20,080 Capitalized equity-based compensation 43 25 Non-cash financing activities: Establishment of liabilities under tax receivable agreement 472 228 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Mar. 29, 2023 | Dec. 28, 2022 |
Property and equipment, net of accumulated depreciation | $ 310,939 | $ 290,362 |
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) | 39,404,905 | 39,284,998 |
Common stock, shares, outstanding (in shares) | 39,404,905 | 39,284,998 |
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) | 2,844,513 | 2,869,513 |
Common stock, shares, outstanding (in shares) | 2,844,513 | 2,869,513 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION DISCLOSURE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Cash paid for: | ||
Income taxes, net of refunds | $ 782 | $ 936 |
Interest, net of amounts capitalized | 83 | 57 |
Non-cash investing activities: | ||
Accrued purchases of property and equipment | 25,752 | 20,080 |
Capitalized equity-based compensation | 43 | 25 |
Non-cash financing activities: | ||
Establishment of liabilities under tax receivable agreement | $ 472 | $ 228 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 3 Months Ended |
Mar. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Shake Shack Inc. 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"). Shake Shack Inc. is the sole managing member of SSE Holdings and, as sole managing member, the Company operates and controls all of the business and affairs of SSE Holdings. As a result, the Company consolidates the financial results of SSE Holdings and reports a non-controlling interest representing the economic interest in SSE Holdings held by the other members of SSE Holdings. As of March 29, 2023 the Company owned 93.3% 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. The Company operates and licenses Shake Shack restaurants ("Shacks"), which serve burgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine and more. As of March 29, 2023, there were 449 Shacks in operation, system-wide, of which 260 were domestic Company-operated Shacks, 35 were domestic licensed Shacks and 154 were international licensed Shacks. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 29, 2023 | |
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 its Annual Report on Form 10-K for the fiscal year ended December 28, 2022 ("2022 Form 10-K"). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These interim Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes thereto included in its 2022 Form 10-K. In the Company's opinion, all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the financial position and results of operation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year. The Company has elected to reclassify certain marketing expenses for prior periods to conform with the presentation for the thirteen weeks ended March 29, 2023. These reclassifications had no effect on previously reported Net Loss. For the thirteen weeks ended March 30, 2022, the Company reclassified $66 from Other operating expenses to General and administrative expenses in the accompanying Condensed Consolidated Statements of Loss. SSE Holdings is considered a variable interest entity. Shake Shack Inc. is the primary beneficiary as the Company has the majority economic interest in SSE Holdings and, as the sole managing member, has 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, the Company consolidates SSE Holdings. The assets and liabilities of SSE Holdings represent substantially all of the Company's consolidated assets and liabilities with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement. As of March 29, 2023 and December 28, 2022, the net assets of SSE Holdings were $364,977 and $362,571, respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreement. Fiscal Year The Company operates on a 52/53 week fiscal year ending on the last Wednesday of December. Fiscal 2023 contains 52 weeks and ends on December 27, 2023. Fiscal 2022 contained 52 weeks and ended on December 28, 2022. 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 management 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 The Company has not adopted any Accounting Standards Updates (“ASUs”) during the thirteen weeks ended March 29, 2023. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition Revenue primarily consists of Shack sales and Licensing revenue. Generally, revenue is recognized as promised goods or services transfer to the guest or customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenue from Shack sales is recognized when payment is tendered at the point of sale, net of discounts as the performance obligation has been satisfied. Sales tax collected from guests is excluded from Shack sales and the obligation is included as sales tax payable until the taxes are remitted to the appropriate taxing authorities. Delivery services are fulfilled by third-party delivery partners whether ordered through the Shack app and website ("Company-owned platforms") or through third-party delivery partners. Revenue from orders through Company-owned platforms includes delivery fees and is recognized when the delivery partner transfers the order to the guest as the Company controls the delivery. For these sales, the Company receives payment directly from the guest at the time of sale. Revenue from orders through third-party delivery partners is recognized when the order is transferred to the third-party delivery partner and excludes delivery fees collected by the delivery partner as the Company does not control the delivery. The Company receives payment from the delivery partner subsequent to the transfer of order and the payment terms are short-term in nature. For all delivery sales, the Company is considered the principal and recognizes the revenue on a gross basis. The Company sells gift cards which do not have expiration dates. Revenue from gift cards is recognized when gift cards are redeemed by the customer or, in the event a gift card is not expected to be redeemed, in proportion to actual redemptions of gift cards ("gift card breakage"). The gift card breakage rate is determined from historical gift card redemption patterns. Gift card breakage income of $106 and $1,309 was recognized during the thirteen weeks ended March 29, 2023 and March 30, 2022. The thirteen weeks ended March 30, 2022 included a cumulative catch-up adjustment of $1,281. Gift card breakage income is included in Shack sales in the Condensed Consolidated Statements of Loss. Licensing revenue includes initial territory fees, Shack opening fees and ongoing sales-based royalty fees from licensed Shacks. Generally, the licenses granted to develop, open and operate each Shack in a specified territory are the predominant good or service transferred to the licensee and represent distinct performance obligations. Ancillary promised services, such as training and assistance during the initial opening of a Shack, are typically combined with the license and considered one performance obligation per Shack. The Company determines the transaction price for each contract, which is comprised of the initial territory fee and an estimate of the total Shack opening fees the Company expects to be entitled to. The calculation of total Shack opening fees included in the transaction price requires judgment, as it is based on an estimated number of Shacks the Company expects the licensee to open. The transaction price is then allocated equally to each Shack expected to open. The performance obligation is satisfied over time, starting when a Shack opens through the end of the license term for the related Shack therefore revenue is recognized on a straight-line basis over the license term. Generally, payment for the initial territory fee is received upon execution of the license agreement and payment for the Shack opening fees is received either in advance of or upon opening the related Shack. These payments are initially deferred and recognized in revenue as the performance obligations are satisfied, which occurs over a long-term period. Revenue from sales-based royalties is recognized as the related sales occur. Revenue disaggregated by type was as follows: Thirteen Weeks Ended March 29 March 30 Shack sales $ 244,254 $ 196,791 Licensing revenue: Sales-based royalties 8,778 6,400 Initial territory and opening fees 246 200 Total revenue $ 253,278 $ 203,391 The aggregate amount of the transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of March 29, 2023 was $23,219. The Company expects to recognize this amount as revenue over a long-term period, as the license term for each Shack ranges from 5 to 20 years. This amount excludes any variable consideration related to sales-based royalties. Contract Balances Contract liabilities and receivables from contracts with customers were as follows: March 29 December 28 Shack sales receivables $ 7,684 $ 8,779 Licensing receivables, net of allowance for doubtful accounts 5,401 3,918 Gift card liability 2,002 2,285 Deferred revenue, current 1,037 969 Deferred revenue, long-term 16,085 14,340 Revenue recognized that was included in the respective liability balances at the beginning of the period was as follows: Thirteen Weeks Ended March 29 March 30 Gift card liability (1) $ 333 $ 1,506 Deferred revenue 244 197 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying values of the Company's Cash and cash equivalents, Accounts receivable, net, Accounts payable and Accrued expenses approximate fair value due to the short-term nature of these financial instruments. Assets measured at fair value on a recurring basis were as follows: Fair Value Measurements March 29 December 28 Level 1 Level 1 Equity securities: Mutual funds $ — $ 80,707 Total Marketable securities $ — $ 80,707 Refer to Note 6, Debt, for additional information relating to the fair value of the Company's outstanding debt instruments. A summary of other income (expense) from equity securities was as follows: Thirteen Weeks Ended March 29 March 30 Equity securities: Dividend income $ 495 $ 77 Realized gain on sale of investments 81 — Unrealized loss on equity securities — (400) Total $ 576 $ (323) Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 3 Months Ended |
Mar. 29, 2023 | |
Supplemental Balance Sheet Disclosures [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION The components of Other current liabilities were as follows: March 29 December 28 Sales tax payable $ 5,831 $ 5,363 Gift card liability 2,002 2,285 Current portion of financing equipment lease liabilities 2,521 2,546 Legal reserve 2,385 6,285 Other 5,378 3,073 Other current liabilities $ 18,117 $ 19,552 The components of Other long-term liabilities were as follows: March 29 December 28 Deferred licensing revenue $ 16,085 $ 14,340 Long-term portion of financing equipment lease liabilities 3,828 3,909 Other 2,279 2,438 Other long-term liabilities $ 22,192 $ 20,687 |
DEBT
DEBT | 3 Months Ended |
Mar. 29, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Convertible Notes The Company's $250,000 aggregate principal amount of 0% Convertible Senior Notes due 2028 (“Convertible Notes”) will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in certain circumstances. Upon conversion, the Company pays or delivers, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company's election. The Convertible Notes are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding December 1, 2027, only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on June 30, 2021 (and only during such fiscal quarter), if the last reported sale price of the Company's Class A common stock, par value $0.001 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the Convertible Notes on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per one thousand dollar principal amount of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate for the Convertible Notes on each such trading day; (3) if the Company calls such Convertible Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the Convertible Notes called (or deemed called) for redemption; and (4) upon the occurrence of specified corporate events as set forth in the Indenture. On or after December 1, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Convertible Notes may convert all or any portion of their Convertible Notes at any time, regardless of the foregoing circumstances. The Convertible Notes had an initial conversion rate of 5.8679 shares of Class A common stock per one thousand dollar principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $170.42 per share of Class A common stock. The fair value of the Convertible Notes was approximately $175,000 and $162,500, respectively, as of March 29, 2023 and December 28, 2022, based on external pricing data, including available quoted market prices of these instruments, and consideration of comparable debt instruments with similar interest rates and trading frequency, among other factors, and is classified as a Level 2 measurement within the fair value hierarchy. Thirteen Weeks Ended Classification March 29 March 30 Amortization expense on Convertible Notes Interest expense $ 262 $ 262 March 29 December 28 Convertible Notes $ 250,000 $ 250,000 Discount and debt issuance costs, net of amortization (5,149) (5,411) Long-term debt $ 244,851 $ 244,589 Revolving Credit Facility The Company maintains a revolving credit facility agreement ("Revolving Credit Facility") which permits borrowings up to $50,000 with the ability to increase available borrowings up to an additional $100,000, subject to satisfaction of certain conditions. Under the Revolving Credit Facility, outstanding borrowings bear interest at either: (i) LIBOR, or the Secured Overnight Financing Rate upon the discontinuance or unavailability of LIBOR, plus a percentage ranging from 1.0% to 2.5% or (ii) the base rate plus a percentage ranging from —% to 1.5%, in each case depending on our net lease adjusted leverage ratio. As of March 29, 2023 and December 28, 2022, no amounts were outstanding under the Revolving Credit Facility. The obligations under the Revolving Credit Facility are 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' direct and indirect subsidiaries, with certain exceptions. The Revolving Credit Facility requires the Company to comply with maximum net lease adjusted leverage and minimum fixed charge coverage ratios, as well as other customary affirmative and negative covenants. As of March 29, 2023, the Company was in compliance with all covenants. The Revolving Credit Facility also permits the issuance of letters of credit upon our request of up to $15,000. As of March 29, 2023 and December 28, 2022, the Company has outstanding letters of credit of $1,863 in connection with the Revolving Credit Facility. Thirteen Weeks Ended Classification March 29 March 30 Interest expense on Revolving Credit Facility Interest expense $ 24 $ 36 Classification March 29 December 28 Unamortized deferred financing costs on Revolving Credit Facility Other assets $ 57 $ 62 |
LEASES
LEASES | 3 Months Ended |
Mar. 29, 2023 | |
Leases [Abstract] | |
LEASES | LEASES Nature of Leases Shake Shack currently leases all of its domestic Company-operated Shacks, the home office and certain equipment under various non-cancelable lease agreements that expire on various dates through 2044. The Company evaluates contracts entered into to determine whether the contract involves the use of property or equipment, which is either explicitly or implicitly identified in the contract. The Company evaluates whether it controls the use of the asset, which is determined by assessing whether substantially all economic benefits from the use of the asset is obtained, and whether the Company has the right to direct the use of the asset. If these criteria are met and the Company has identified a lease, a right of use asset and lease liability are recorded on the Condensed Consolidated Balance Sheets. Upon possession of a leased asset, the Company determines whether the lease is an operating or finance lease. All of the Company's real estate leases are classified as operating leases and most equipment leases are classified as finance leases. Generally, real estate leases have initial terms ranging from 10 to 15 years and typically include two five-year renewal options. Renewal options are generally not recognized as part of the right-of-use assets and lease liabilities as it is not reasonably certain at commencement date that the Company would exercise the renewal options. Real estate leases typically contain fixed minimum rent payments and/or contingent rent payments which are based upon sales in excess of specified thresholds. When the achievement of such sales thresholds are deemed to be probable, contingent rent is accrued in proportion to the sales recognized during the period. For operating leases, fixed lease payments are recognized as operating lease costs on a straight-line basis over the lease term. Lease expense incurred before a Shack opens is recorded in Pre-opening costs on the Condensed Consolidated Statements of Loss. Once a domestic Company-operated Shack opens, the straight-line lease expense and contingent rent, if applicable, are recorded in Occupancy and related expenses on the Condensed Consolidated Statements of Loss. Many of the leases also require the Company to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in Occupancy and related expenses on the Condensed Consolidated Statements of Loss. Finance leases are recognized in depreciation expense on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For both operating and finance leases that contain lease and non-lease components, the components are combined and accounted for as a single lease component. Variable lease costs for both operating and finance leases, if any, is recognized as incurred. For leases with a lease term of 12 months or less ("short-term lease"), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Condensed Consolidated Balance Sheets. The Company calculates operating lease assets and lease liabilities as the present value of fixed lease payments over the reasonably certain lease term beginning at the commencement date. The Company uses its incremental borrowing rate ("IBR") in determining the present value of future lease payments as there are no explicit rates provided in the leases. The IBR used to measure the lease liability is derived from the average of the yield curves obtained from using the notching method and the recovery rate method. The most significant assumption in calculating the IBR is the Company's credit rating and is subject to judgment. The credit rating used to develop the IBR is determined by utilizing the credit ratings of other public companies with similar financial information as SSE Holdings. The Company expends cash for leasehold improvements to build out and equip leased properties. Generally, a portion of the leasehold improvements and building costs are reimbursed by the landlords through landlord incentives pursuant to agreed-upon terms in the lease agreements. Landlord incentives usually take the form of cash, full or partial credits against future minimum or contingent rents otherwise payable by the Company, or a combination thereof. In most cases, landlord incentives are received after the Company takes possession of the property and as milestones are met during the construction of the property. The Company includes these amounts in the measurement of the initial operating lease liability, which are also reflected as a reduction to the initial measurement of the right-of-use asset. A summary of operating and finance lease assets and lease liabilities were as follows: Classification March 29 December 28 Operating leases Operating lease assets $ 379,475 $ 367,488 Finance leases Property and equipment, net 6,117 6,152 Total right-of-use assets $ 385,592 $ 373,640 Operating leases: Operating lease liabilities, current $ 44,578 $ 42,238 Long-term operating lease liabilities 441,554 427,227 Finance leases: Other current liabilities 2,521 2,546 Other long-term liabilities 3,828 3,909 Total lease liabilities $ 492,481 $ 475,920 The components of lease expense were as follows: Thirteen Weeks Ended Classification March 29 March 30 Operating lease cost Occupancy and related expenses $ 16,075 $ 13,681 Finance lease cost: Amortization of right-of-use assets Depreciation and amortization expense 737 753 Interest on lease liabilities Interest expense 70 52 Variable lease cost Occupancy and related expenses 3,770 3,504 Short-term lease cost Occupancy and related expenses 240 98 Total lease cost $ 20,892 $ 18,088 As of March 29, 2023, future minimum lease payments for operating and finance leases consisted of the following: Operating Leases Finance Leases 2023 (1) $ 39,574 $ 2,138 2024 75,201 2,222 2025 74,664 1,314 2026 70,986 576 2027 66,535 332 Thereafter 291,236 263 Total minimum payments 618,196 6,845 Less: imputed interest 144,365 496 Total lease liabilities $ 473,831 $ 6,349 (1) Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of March 29, 2023. As of March 29, 2023 the Company had additional operating lease commitments of $144,967 for non-cancelable leases without a possession date, which begin to commence in 2023. These lease commitments are consistent with the leases that have been executed thus far. A summary of lease terms and discount rates for operating and finance leases were as follows: March 29 December 28 Weighted average remaining lease term (years): Operating leases 9.0 8.9 Finance leases 4.9 5.1 Weighted average discount rate: Operating leases 5.8 % 5.7 % Finance leases 4.3 % 4.0 % Supplemental cash flow information related to leases was as follows: Thirteen Weeks Ended March 29 March 30 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,830 $ 13,525 Operating cash flows from finance leases 70 52 Financing cash flows from finance leases 807 747 Right-of-use assets obtained in exchange for lease obligations: Operating leases 21,414 5,541 Finance leases 701 676 |
LEASES | LEASES Nature of Leases Shake Shack currently leases all of its domestic Company-operated Shacks, the home office and certain equipment under various non-cancelable lease agreements that expire on various dates through 2044. The Company evaluates contracts entered into to determine whether the contract involves the use of property or equipment, which is either explicitly or implicitly identified in the contract. The Company evaluates whether it controls the use of the asset, which is determined by assessing whether substantially all economic benefits from the use of the asset is obtained, and whether the Company has the right to direct the use of the asset. If these criteria are met and the Company has identified a lease, a right of use asset and lease liability are recorded on the Condensed Consolidated Balance Sheets. Upon possession of a leased asset, the Company determines whether the lease is an operating or finance lease. All of the Company's real estate leases are classified as operating leases and most equipment leases are classified as finance leases. Generally, real estate leases have initial terms ranging from 10 to 15 years and typically include two five-year renewal options. Renewal options are generally not recognized as part of the right-of-use assets and lease liabilities as it is not reasonably certain at commencement date that the Company would exercise the renewal options. Real estate leases typically contain fixed minimum rent payments and/or contingent rent payments which are based upon sales in excess of specified thresholds. When the achievement of such sales thresholds are deemed to be probable, contingent rent is accrued in proportion to the sales recognized during the period. For operating leases, fixed lease payments are recognized as operating lease costs on a straight-line basis over the lease term. Lease expense incurred before a Shack opens is recorded in Pre-opening costs on the Condensed Consolidated Statements of Loss. Once a domestic Company-operated Shack opens, the straight-line lease expense and contingent rent, if applicable, are recorded in Occupancy and related expenses on the Condensed Consolidated Statements of Loss. Many of the leases also require the Company to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in Occupancy and related expenses on the Condensed Consolidated Statements of Loss. Finance leases are recognized in depreciation expense on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For both operating and finance leases that contain lease and non-lease components, the components are combined and accounted for as a single lease component. Variable lease costs for both operating and finance leases, if any, is recognized as incurred. For leases with a lease term of 12 months or less ("short-term lease"), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Condensed Consolidated Balance Sheets. The Company calculates operating lease assets and lease liabilities as the present value of fixed lease payments over the reasonably certain lease term beginning at the commencement date. The Company uses its incremental borrowing rate ("IBR") in determining the present value of future lease payments as there are no explicit rates provided in the leases. The IBR used to measure the lease liability is derived from the average of the yield curves obtained from using the notching method and the recovery rate method. The most significant assumption in calculating the IBR is the Company's credit rating and is subject to judgment. The credit rating used to develop the IBR is determined by utilizing the credit ratings of other public companies with similar financial information as SSE Holdings. The Company expends cash for leasehold improvements to build out and equip leased properties. Generally, a portion of the leasehold improvements and building costs are reimbursed by the landlords through landlord incentives pursuant to agreed-upon terms in the lease agreements. Landlord incentives usually take the form of cash, full or partial credits against future minimum or contingent rents otherwise payable by the Company, or a combination thereof. In most cases, landlord incentives are received after the Company takes possession of the property and as milestones are met during the construction of the property. The Company includes these amounts in the measurement of the initial operating lease liability, which are also reflected as a reduction to the initial measurement of the right-of-use asset. A summary of operating and finance lease assets and lease liabilities were as follows: Classification March 29 December 28 Operating leases Operating lease assets $ 379,475 $ 367,488 Finance leases Property and equipment, net 6,117 6,152 Total right-of-use assets $ 385,592 $ 373,640 Operating leases: Operating lease liabilities, current $ 44,578 $ 42,238 Long-term operating lease liabilities 441,554 427,227 Finance leases: Other current liabilities 2,521 2,546 Other long-term liabilities 3,828 3,909 Total lease liabilities $ 492,481 $ 475,920 The components of lease expense were as follows: Thirteen Weeks Ended Classification March 29 March 30 Operating lease cost Occupancy and related expenses $ 16,075 $ 13,681 Finance lease cost: Amortization of right-of-use assets Depreciation and amortization expense 737 753 Interest on lease liabilities Interest expense 70 52 Variable lease cost Occupancy and related expenses 3,770 3,504 Short-term lease cost Occupancy and related expenses 240 98 Total lease cost $ 20,892 $ 18,088 As of March 29, 2023, future minimum lease payments for operating and finance leases consisted of the following: Operating Leases Finance Leases 2023 (1) $ 39,574 $ 2,138 2024 75,201 2,222 2025 74,664 1,314 2026 70,986 576 2027 66,535 332 Thereafter 291,236 263 Total minimum payments 618,196 6,845 Less: imputed interest 144,365 496 Total lease liabilities $ 473,831 $ 6,349 (1) Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of March 29, 2023. As of March 29, 2023 the Company had additional operating lease commitments of $144,967 for non-cancelable leases without a possession date, which begin to commence in 2023. These lease commitments are consistent with the leases that have been executed thus far. A summary of lease terms and discount rates for operating and finance leases were as follows: March 29 December 28 Weighted average remaining lease term (years): Operating leases 9.0 8.9 Finance leases 4.9 5.1 Weighted average discount rate: Operating leases 5.8 % 5.7 % Finance leases 4.3 % 4.0 % Supplemental cash flow information related to leases was as follows: Thirteen Weeks Ended March 29 March 30 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,830 $ 13,525 Operating cash flows from finance leases 70 52 Financing cash flows from finance leases 807 747 Right-of-use assets obtained in exchange for lease obligations: Operating leases 21,414 5,541 Finance leases 701 676 |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 3 Months Ended |
Mar. 29, 2023 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | NON-CONTROLLING INTERESTS Shake Shack is the primary beneficiary and sole managing member of SSE Holdings and, as a result, consolidates the financial results of SSE Holdings. The Company reports 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, the Company will receive a corresponding number of LLC Interests, increasing the total ownership interest in SSE Holdings. Changes in the ownership interest in SSE Holdings while the Company retains its 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: March 29, 2023 December 28, 2022 LLC Interests Ownership % LLC Interests Ownership % Number of LLC Interests held by Shake Shack Inc. 39,404,905 93.3 % 39,284,998 93.2 % Number of LLC Interests held by non-controlling interest holders 2,844,513 6.7 % 2,869,513 6.8 % Total LLC Interests outstanding 42,249,418 100.0 % 42,154,511 100.0 % The weighted average ownership percentages for the applicable reporting periods are used to attribute Net loss and Other comprehensive loss to the non-controlling interest holders. Thirteen Weeks Ended March 29 March 30 Non-controlling interest holders' weighted average ownership percentages 6.8 % 6.9 % The following table summarizes the effects of changes in ownership of SSE Holdings on the Company's equity: Thirteen Weeks Ended March 29 March 30 Net loss attributable to Shake Shack Inc. $ (1,534) $ (10,162) Other comprehensive loss: Unrealized loss on foreign currency translation adjustment (4) (1) Transfers (to) from non-controlling interests: Increase in additional paid-in capital as a result of the redemption of LLC Interests 194 49 Decrease in additional paid-in capital as a result of activity under its stock compensation plan and the related income tax effects (2,699) (2,276) Total effect of changes in ownership interest on loss attributable to Shake Shack Inc. $ (4,043) $ (12,390) The following table summarizes the LLC Interests activity under the Company's stock compensation plan and redemptions of LLC Interests activity: Thirteen Weeks Ended March 29 March 30 LLC Interests activity under the Company's stock compensation plan Number of LLC Interests received by Shake Shack Inc. 94,907 65,893 Redemption and acquisition of LLC Interests Number of LLC Interests redeemed by non-controlling interest holders 25,000 10,000 Number of LLC Interests received by Shake Shack Inc. 25,000 10,000 Issuance of Class A common stock Shares of Class A common stock issued in connection with redemptions of LLC Interests 25,000 10,000 Cancellation of Class B common stock Shares of Class B common stock surrendered and canceled 25,000 10,000 |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 3 Months Ended |
Mar. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION A summary of equity-based compensation expense recognized was as follows: Thirteen Weeks Ended March 29 March 30 Performance stock units 1,310 1,424 Restricted stock units 2,492 1,764 Equity-based compensation expense $ 3,802 $ 3,188 Total income tax benefit recognized related to equity-based compensation $ 102 $ 56 Equity-based compensation expense was as follows: Thirteen Weeks Ended March 29 March 30 General and administrative expenses $ 3,529 $ 2,991 Labor and related expenses 273 197 Equity-based compensation expense $ 3,802 $ 3,188 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Shake Shack is the sole managing member of SSE Holdings and, as a result, consolidates 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 the Company, on a pro rata basis. The Company is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to its 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. The Company is also subject to withholding taxes in foreign jurisdictions. The effective income tax rates for the thirteen weeks ended March 29, 2023 and March 30, 2022 were (114.8)% and 27.6%, respectively. The decrease was primarily driven by a decrease in pre-tax book loss, a decrease in discrete tax expense related to foreign withholding tax and valuation allowance, partially offset by an increase in tax credits. Additionally, an increase in the Company's ownership interest in SSE Holdings increases its share of the taxable income (loss) of SSE Holdings. The weighted average ownership interest in SSE Holdings was 93.2% and 93.1% for the thirteen weeks ended March 29, 2023 and March 30, 2022, respectively. Deferred Tax Assets and Liabilities During the thirteen weeks ended March 29, 2023, the Company acquired an aggregate of 119,907 LLC Interests in connection with the redemption of LLC Interests, and activity relating to its stock compensation plan. The Company recognized a deferred tax asset in the amount of $824 associated with the basis difference in its investment in SSE Holdings upon acquisition of these LLC Interests. As of March 29, 2023, the total deferred tax asset related to the basis difference in the Company's investment in SSE Holdings was $88,520. During the thirteen weeks ended March 29, 2023, the Company also recognized $129 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. Refer to "Tax Receivable Agreement," herein for additional information. The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized. As of March 29, 2023, the Company concluded, based on the weight of all available positive and negative evidence, that all of its deferred tax assets (except for those deferred tax assets relating to certain state tax credits and net operating losses and certain foreign tax credits) are more likely than not to be realized. As such, no additional valuation allowance was recognized. Tax Receivable Agreement Pursuant to the Company's election under Section 754 of the Internal Revenue Code (the "Code"), the Company expects to obtain an increase in its 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. The Company plans to make an election under Section 754 of the Code for each taxable year in which a redemption or exchange of LLC Interest occurs. The Company intends 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 would otherwise be paid 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, the Company 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 the Company of 85% of the amount of any tax benefits that are actually realized, or in some cases are deemed to realize, as a result of (i) increases in the Company's 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"). The Company expects to benefit from the remaining 15% of any tax benefits that may actually realize. The TRA Payments are not conditioned upon any continued ownership interest in SSE Holdings or the Company. 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 thirteen weeks ended March 29, 2023, the Company acquired an aggregate of 25,000 LLC Interests in connection with the redemption of LLC Interests, which resulted in an increase in the tax basis of its investment in SSE Holdings subject to the provisions of the Tax Receivable Agreement. The Company recognized an additional liability in the amount of $472 for the TRA Payments due to the redeeming members, representing 85% of the aggregate tax benefits the Company expects 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 estimates of future taxable income. During the thirteen weeks ended March 29, 2023 and March 30, 2022, inclusive of interest, no payments were made to the parties to the Tax Receivable Agreement. As of March 29, 2023, the total amount of TRA Payments due under the Tax Receivable Agreement, was $235,361. Refer to Note 13, Commitments and Contingencies, for additional information relating to the liabilities under the Tax Receivable Agreement. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 29, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS (LOSS) PER SHARE Basic loss per share of Class A common stock is computed by dividing Net loss attributable to Shake Shack Inc. by the weighted average number of shares of Class A common stock outstanding during the period. Diluted loss per share of Class A common stock is computed by dividing Net loss 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 loss per share of Class A common stock (in thousands, except per share amounts): Thirteen Weeks Ended March 29 March 30 Numerator: Net loss attributable to Shake Shack Inc.—basic $ (1,534) $ (10,162) Net loss attributable to Shake Shack Inc.—diluted (1,534) (10,162) Denominator: Weighted average shares of Class A common stock outstanding—basic 39,332 39,163 Weighted average shares of Class A common stock outstanding—diluted 39,332 39,163 Loss per share of Class A common stock—basic $ (0.04) $ (0.26) Loss per share of Class A common stock—diluted $ (0.04) $ (0.26) 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 loss per share, except when the effect would be anti-dilutive. Refer to Note 6, Debt, for additional information. Shares of Class B common stock do not share in the earnings or losses of Shake Shack and are therefore not participating securities. As such, separate presentation of basic and diluted loss 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 loss per share, except when the effect would be anti-dilutive. The following table presents potentially dilutive securities excluded from the computations of diluted loss per share of Class A common stock: Thirteen Weeks Ended March 29 March 30 Stock options 128,656 (1) 149,731 (1) Performance stock units 134,659 (1) 165,108 (1) Restricted stock units 576,227 (1) 401,716 (1) Shares of Class B common stock 2,844,513 (1) 2,911,587 (1) Convertible notes 1,466,975 (1) 1,466,975 (1) (1) Number of securities outstanding at the end of the period that were excluded from the computation of diluted loss per share of Class A common stock because the effect would have been anti-dilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments The Company is obligated under various operating leases for Shacks and the home office space, expiring in various years through 2044. Under certain of these leases, the Company is liable for contingent rent based on a percentage of sales in excess of specified thresholds and typically responsible for its proportionate share of real estate taxes, common area maintenance costs and other occupancy costs. Refer to Note 7, Leases, for additional information. Certain leases require the Company to obtain letters of credit. As of March 29, 2023, the Company held two letters of credit, one for $130 which expires in February 2026 and the second for $603, which expires in August 2023 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. The Company also enters into long-term, exclusive contracts with certain vendors to supply food, beverages and paper goods, obligating the Company to purchase specified quantities. Legal Contingencies In May 2022, a claim was filed against Shake Shack alleging certain violations of the Fair Labor Standards Act relating to the classification of exempt managers. An accrual of $900 was recorded in connection with settling this matter during the thirteen weeks ended March 29, 2023. The Company is subject to various legal proceedings, claims and liabilities, involving employees and guests alike, which arise in the ordinary course of business and are generally covered by insurance. As of March 29, 2023, the amount of the ultimate liability with respect to these matters was not material. Liabilities under Tax Receivable Agreement |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 29, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Union Square Hospitality Group The Chairman of the Board of Directors serves as the Executive Chairman of Union Square Hospitality Group, LLC. As a result, Union Square Hospitality Group, LLC and its subsidiary, set forth below, are considered related parties. Hudson Yards Sports and Entertainment In fiscal 2011, Shake Shack 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. In February 2019, the agreement was assigned to Hudson Yards Catering ("HYC"), the parent of HYSE. The agreement expires in January 2027 and includes five consecutive five-year renewal options at HYC's option. As consideration for these rights, HYC pays the Company a license fee based on a percentage of net food sales, as defined in the MLA. HYC also pays a percentage of profits on sales of branded beverages, as defined in the MLA. Thirteen Weeks Ended Classification March 29 March 30 Amounts received from HYC Licensing revenue $ 146 $ 104 Classification March 29 December 28 Amounts due from HYC Accounts receivable, net $ 24 $ 69 Madison Square Park Conservancy The Chairman of the Board of Directors serves as a director of the Madison Square Park Conservancy ("MSP Conservancy"), with which Shake Shack has a license agreement and pays license fees to operate the Madison Square Park Shack. No amounts were due to MSP Conservancy as of March 29, 2023 and December 28, 2022. Thirteen Weeks Ended Classification March 29 March 30 Amounts paid to MSP Conservancy Occupancy and related expenses $ 224 $ 220 Olo, Inc. The Chairman of the Board of Directors serves as a director of Olo, Inc. (formerly known as "Mobo Systems, Inc."), a platform the Company uses in connection with its mobile ordering application. Thirteen Weeks Ended Classification March 29 March 30 Amounts paid to Olo, Inc. Other operating expenses $ 124 $ 134 Classification March 29 December 28 Amounts due to Olo, Inc. Accounts payable $ 81 $ 39 Block, Inc. The Company's Chief Executive Officer is a member of the board of directors of Block, Inc. (formerly known as "Square, Inc."). The Company currently uses certain point-of-sale applications, payment processing services, hardware and other enterprise platform services in connection with its kiosk technology, sales for certain off-site events and the processing of a limited amount of sales at certain locations. Thirteen Weeks Ended Classification March 29 March 30 Amounts paid to Block, Inc. Other operating expenses $ 1,571 $ 825 Classification March 29 December 28 Amounts due to Block, Inc. Accounts payable $ 45 $ 55 Tax Receivable Agreement The Company entered into a Tax Receivable Agreement that provides for the payment by the Company of 85% of the amount of any tax benefits that are actually realized, or in some cases are deemed to realize, as a result of certain transactions. Refer to Note 10, Income Taxes, for additional information. No payments were made to the members of SSE Holdings pursuant to the Tax Receivable Agreement during the thirteen weeks ended March 29, 2023 and March 30, 2022. Classification March 29 December 28 Amounts due under the Tax Receivable Agreement Other current liabilities $ 235,361 $ 234,893 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. No tax distributions were payable to non-controlling interest holders as of March 29, 2023 and December 28, 2022, respectively. Thirteen Weeks Ended Classification March 29 March 30 Amounts paid to non-controlling interest holders Non-controlling interests $ 49 $ 302 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 29, 2023 | |
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 its Annual Report on Form 10-K for the fiscal year ended December 28, 2022 ("2022 Form 10-K"). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These interim Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes thereto included in its 2022 Form 10-K. In the Company's opinion, all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the financial position and results of operation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year. The Company has elected to reclassify certain marketing expenses for prior periods to conform with the presentation for the thirteen weeks ended March 29, 2023. These reclassifications had no effect on previously reported Net Loss. For the thirteen weeks ended March 30, 2022, the Company reclassified $66 from Other operating expenses to General and administrative expenses in the accompanying Condensed Consolidated Statements of Loss. SSE Holdings is considered a variable interest entity. Shake Shack Inc. is the primary beneficiary as the Company has the majority economic interest in SSE Holdings and, as the sole managing member, has 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, the Company consolidates SSE Holdings. The assets and liabilities of SSE Holdings represent substantially all of the Company's consolidated assets and liabilities with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement. As of March 29, 2023 and December 28, 2022, the net assets of SSE Holdings were $364,977 and $362,571, respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreement. |
Fiscal Year | Fiscal Year The Company operates on a 52/53 week fiscal year ending on the last Wednesday of December. Fiscal 2023 contains 52 weeks and ends on December 27, 2023. Fiscal 2022 contained 52 weeks and ended on December 28, 2022. Unless otherwise stated, references to years in this report relate to fiscal years. |
Use of Estimates | Use of Estimates The preparation of these Condensed Consolidated Financial Statements in conformity with GAAP requires management 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 The Company has not adopted any Accounting Standards Updates (“ASUs”) during the thirteen weeks ended March 29, 2023. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue disaggregated by type was as follows: Thirteen Weeks Ended March 29 March 30 Shack sales $ 244,254 $ 196,791 Licensing revenue: Sales-based royalties 8,778 6,400 Initial territory and opening fees 246 200 Total revenue $ 253,278 $ 203,391 |
Schedule of Contract with Customer, Asset and Liability | Contract liabilities and receivables from contracts with customers were as follows: March 29 December 28 Shack sales receivables $ 7,684 $ 8,779 Licensing receivables, net of allowance for doubtful accounts 5,401 3,918 Gift card liability 2,002 2,285 Deferred revenue, current 1,037 969 Deferred revenue, long-term 16,085 14,340 Revenue recognized that was included in the respective liability balances at the beginning of the period was as follows: Thirteen Weeks Ended March 29 March 30 Gift card liability (1) $ 333 $ 1,506 Deferred revenue 244 197 (1) For the thirteen weeks ended March 30, 2022, amount includes the cumulative catch-up adjustment of $1,281 for gift card breakage income. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured On A Recurring Basis | Assets measured at fair value on a recurring basis were as follows: Fair Value Measurements March 29 December 28 Level 1 Level 1 Equity securities: Mutual funds $ — $ 80,707 Total Marketable securities $ — $ 80,707 |
Schedule of Other Income From Available for Sale Securities | A summary of other income (expense) from equity securities was as follows: Thirteen Weeks Ended March 29 March 30 Equity securities: Dividend income $ 495 $ 77 Realized gain on sale of investments 81 — Unrealized loss on equity securities — (400) Total $ 576 $ (323) |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 3 Months Ended |
Mar. 29, 2023 | |
Supplemental Balance Sheet Disclosures [Abstract] | |
Supplemental Balance Sheet Information | The components of Other current liabilities were as follows: March 29 December 28 Sales tax payable $ 5,831 $ 5,363 Gift card liability 2,002 2,285 Current portion of financing equipment lease liabilities 2,521 2,546 Legal reserve 2,385 6,285 Other 5,378 3,073 Other current liabilities $ 18,117 $ 19,552 The components of Other long-term liabilities were as follows: March 29 December 28 Deferred licensing revenue $ 16,085 $ 14,340 Long-term portion of financing equipment lease liabilities 3,828 3,909 Other 2,279 2,438 Other long-term liabilities $ 22,192 $ 20,687 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Thirteen Weeks Ended Classification March 29 March 30 Amortization expense on Convertible Notes Interest expense $ 262 $ 262 March 29 December 28 Convertible Notes $ 250,000 $ 250,000 Discount and debt issuance costs, net of amortization (5,149) (5,411) Long-term debt $ 244,851 $ 244,589 Thirteen Weeks Ended Classification March 29 March 30 Interest expense on Revolving Credit Facility Interest expense $ 24 $ 36 Classification March 29 December 28 Unamortized deferred financing costs on Revolving Credit Facility Other assets $ 57 $ 62 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 29, 2023 | |
Leases [Abstract] | |
Lease, Cost | A summary of operating and finance lease assets and lease liabilities were as follows: Classification March 29 December 28 Operating leases Operating lease assets $ 379,475 $ 367,488 Finance leases Property and equipment, net 6,117 6,152 Total right-of-use assets $ 385,592 $ 373,640 Operating leases: Operating lease liabilities, current $ 44,578 $ 42,238 Long-term operating lease liabilities 441,554 427,227 Finance leases: Other current liabilities 2,521 2,546 Other long-term liabilities 3,828 3,909 Total lease liabilities $ 492,481 $ 475,920 The components of lease expense were as follows: Thirteen Weeks Ended Classification March 29 March 30 Operating lease cost Occupancy and related expenses $ 16,075 $ 13,681 Finance lease cost: Amortization of right-of-use assets Depreciation and amortization expense 737 753 Interest on lease liabilities Interest expense 70 52 Variable lease cost Occupancy and related expenses 3,770 3,504 Short-term lease cost Occupancy and related expenses 240 98 Total lease cost $ 20,892 $ 18,088 March 29 December 28 Weighted average remaining lease term (years): Operating leases 9.0 8.9 Finance leases 4.9 5.1 Weighted average discount rate: Operating leases 5.8 % 5.7 % Finance leases 4.3 % 4.0 % Supplemental cash flow information related to leases was as follows: Thirteen Weeks Ended March 29 March 30 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,830 $ 13,525 Operating cash flows from finance leases 70 52 Financing cash flows from finance leases 807 747 Right-of-use assets obtained in exchange for lease obligations: Operating leases 21,414 5,541 Finance leases 701 676 |
Lessee, Operating Lease, Liability, Maturity | As of March 29, 2023, future minimum lease payments for operating and finance leases consisted of the following: Operating Leases Finance Leases 2023 (1) $ 39,574 $ 2,138 2024 75,201 2,222 2025 74,664 1,314 2026 70,986 576 2027 66,535 332 Thereafter 291,236 263 Total minimum payments 618,196 6,845 Less: imputed interest 144,365 496 Total lease liabilities $ 473,831 $ 6,349 (1) Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of March 29, 2023. |
Finance Lease, Liability, Maturity | As of March 29, 2023, future minimum lease payments for operating and finance leases consisted of the following: Operating Leases Finance Leases 2023 (1) $ 39,574 $ 2,138 2024 75,201 2,222 2025 74,664 1,314 2026 70,986 576 2027 66,535 332 Thereafter 291,236 263 Total minimum payments 618,196 6,845 Less: imputed interest 144,365 496 Total lease liabilities $ 473,831 $ 6,349 (1) Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of March 29, 2023. |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 3 Months Ended |
Mar. 29, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of Ownership Interests in SSE Holdings | The following table summarizes the ownership interest in SSE Holdings: March 29, 2023 December 28, 2022 LLC Interests Ownership % LLC Interests Ownership % Number of LLC Interests held by Shake Shack Inc. 39,404,905 93.3 % 39,284,998 93.2 % Number of LLC Interests held by non-controlling interest holders 2,844,513 6.7 % 2,869,513 6.8 % Total LLC Interests outstanding 42,249,418 100.0 % 42,154,511 100.0 % |
Noncontrolling Interest, Ownership Percentages | Thirteen Weeks Ended March 29 March 30 Non-controlling interest holders' weighted average ownership percentages 6.8 % 6.9 % |
Schedule of Non-Controlling Interest | The following table summarizes the effects of changes in ownership of SSE Holdings on the Company's equity: Thirteen Weeks Ended March 29 March 30 Net loss attributable to Shake Shack Inc. $ (1,534) $ (10,162) Other comprehensive loss: Unrealized loss on foreign currency translation adjustment (4) (1) Transfers (to) from non-controlling interests: Increase in additional paid-in capital as a result of the redemption of LLC Interests 194 49 Decrease in additional paid-in capital as a result of activity under its stock compensation plan and the related income tax effects (2,699) (2,276) Total effect of changes in ownership interest on loss attributable to Shake Shack Inc. $ (4,043) $ (12,390) |
Redemption of LLC Interests | The following table summarizes the LLC Interests activity under the Company's stock compensation plan and redemptions of LLC Interests activity: Thirteen Weeks Ended March 29 March 30 LLC Interests activity under the Company's stock compensation plan Number of LLC Interests received by Shake Shack Inc. 94,907 65,893 Redemption and acquisition of LLC Interests Number of LLC Interests redeemed by non-controlling interest holders 25,000 10,000 Number of LLC Interests received by Shake Shack Inc. 25,000 10,000 Issuance of Class A common stock Shares of Class A common stock issued in connection with redemptions of LLC Interests 25,000 10,000 Cancellation of Class B common stock Shares of Class B common stock surrendered and canceled 25,000 10,000 |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Equity-Based Compensation Expense Recognized | A summary of equity-based compensation expense recognized was as follows: Thirteen Weeks Ended March 29 March 30 Performance stock units 1,310 1,424 Restricted stock units 2,492 1,764 Equity-based compensation expense $ 3,802 $ 3,188 Total income tax benefit recognized related to equity-based compensation $ 102 $ 56 Equity-based compensation expense was as follows: Thirteen Weeks Ended March 29 March 30 General and administrative expenses $ 3,529 $ 2,991 Labor and related expenses 273 197 Equity-based compensation expense $ 3,802 $ 3,188 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 29, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted loss per share of Class A common stock (in thousands, except per share amounts): Thirteen Weeks Ended March 29 March 30 Numerator: Net loss attributable to Shake Shack Inc.—basic $ (1,534) $ (10,162) Net loss attributable to Shake Shack Inc.—diluted (1,534) (10,162) Denominator: Weighted average shares of Class A common stock outstanding—basic 39,332 39,163 Weighted average shares of Class A common stock outstanding—diluted 39,332 39,163 Loss per share of Class A common stock—basic $ (0.04) $ (0.26) Loss per share of Class A common stock—diluted $ (0.04) $ (0.26) The following table presents potentially dilutive securities excluded from the computations of diluted loss per share of Class A common stock: Thirteen Weeks Ended March 29 March 30 Stock options 128,656 (1) 149,731 (1) Performance stock units 134,659 (1) 165,108 (1) Restricted stock units 576,227 (1) 401,716 (1) Shares of Class B common stock 2,844,513 (1) 2,911,587 (1) Convertible notes 1,466,975 (1) 1,466,975 (1) (1) Number of securities outstanding at the end of the period that were excluded from the computation of diluted loss per share of Class A common stock because the effect would have been anti-dilutive. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 29, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Thirteen Weeks Ended Classification March 29 March 30 Amounts received from HYC Licensing revenue $ 146 $ 104 Classification March 29 December 28 Amounts due from HYC Accounts receivable, net $ 24 $ 69 Thirteen Weeks Ended Classification March 29 March 30 Amounts paid to MSP Conservancy Occupancy and related expenses $ 224 $ 220 Thirteen Weeks Ended Classification March 29 March 30 Amounts paid to Olo, Inc. Other operating expenses $ 124 $ 134 Classification March 29 December 28 Amounts due to Olo, Inc. Accounts payable $ 81 $ 39 Thirteen Weeks Ended Classification March 29 March 30 Amounts paid to Block, Inc. Other operating expenses $ 1,571 $ 825 Classification March 29 December 28 Amounts due to Block, Inc. Accounts payable $ 45 $ 55 Classification March 29 December 28 Amounts due under the Tax Receivable Agreement Other current liabilities $ 235,361 $ 234,893 Thirteen Weeks Ended Classification March 29 March 30 Amounts paid to non-controlling interest holders Non-controlling interests $ 49 $ 302 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2022 USD ($) | Mar. 29, 2023 Restaurant | Dec. 28, 2022 | |
Class of Stock [Line Items] | |||
Number of restaurants | 449 | ||
Cumulative catch-up adjustment | $ | $ 1,281 | ||
Shake Shack Inc. | |||
Class of Stock [Line Items] | |||
Ownership percent of noncontrolling interest | 93.30% | 93.20% | |
United States | Company-operated | |||
Class of Stock [Line Items] | |||
Number of restaurants | 260 | ||
United States | Licensed | |||
Class of Stock [Line Items] | |||
Number of restaurants | 35 | ||
Non-United States | Licensed | |||
Class of Stock [Line Items] | |||
Number of restaurants | 154 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2023 | Mar. 30, 2022 | Dec. 28, 2022 | |
Variable Interest Entity [Line Items] | |||
Net assets held by SSE holders | $ 1,506,915 | $ 1,494,862 | |
General and administrative expenses | 31,311 | $ 31,386 | |
Revision of Prior Period, Reclassification, Adjustment | |||
Variable Interest Entity [Line Items] | |||
General and administrative expenses | $ 66 | ||
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Net assets held by SSE holders | $ 364,977 | $ 362,571 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Gift card breakage income | $ 106 | $ 1,309 |
Cumulative catch-up adjustment | $ 1,281 | |
Revenue, remaining performance obligation | $ 23,219 | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
License term | 5 years | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
License term | 20 years |
REVENUE - Schedule of Disaggreg
REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 253,278 | $ 203,391 |
Shack sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 244,254 | 196,791 |
Sales-based royalties | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 8,778 | 6,400 |
Initial territory and opening fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 246 | $ 200 |
REVENUE - Schedule of Respectiv
REVENUE - Schedule of Respective Liability Balances (Details) - USD ($) $ in Thousands | Mar. 29, 2023 | Dec. 28, 2022 |
Disaggregation of Revenue [Line Items] | ||
Gift card liability | $ 2,002 | $ 2,285 |
Deferred revenue, current | 1,037 | 969 |
Deferred revenue, long-term | 16,085 | 14,340 |
Shack sales | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, asset, net | 7,684 | 8,779 |
Licensing receivables, net of allowance for doubtful accounts | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, asset, net | $ 5,401 | $ 3,918 |
REVENUE - Liability Balance (De
REVENUE - Liability Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Gift card liability | $ 333 | $ 1,506 |
Deferred revenue | $ 244 | 197 |
Cumulative catch-up adjustment | $ 1,281 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets Measured On a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 29, 2023 | Dec. 28, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 0 | $ 80,707 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 80,707 |
Level 1 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 0 | $ 80,707 |
FAIR VALUE MEASUREMENTS - Other
FAIR VALUE MEASUREMENTS - Other Income From Available For Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Available-for-sale securities | ||
Dividend income | $ 495 | $ 77 |
Realized gain on sale of investments | 81 | 0 |
Unrealized loss on equity securities | 0 | (400) |
Total | 2,837 | (289) |
Available-for-sale Securities | ||
Available-for-sale securities | ||
Total | $ 576 | $ (323) |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Fair Value Disclosures [Abstract] | ||
Asset impairment charges | $ 0 | $ 0 |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands | Mar. 29, 2023 | Dec. 28, 2022 | Mar. 30, 2022 |
Other Liabilities, Current | |||
Sales tax payable | $ 5,831 | $ 5,363 | |
Gift card liability | $ 2,002 | $ 2,285 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities | |
Current portion of financing equipment lease liabilities | $ 2,521 | $ 2,546 | $ 2,546 |
Legal reserve | 2,385 | 6,285 | |
Other | 5,378 | 3,073 | |
Other current liabilities | $ 18,117 | $ 19,552 |
SUPPLEMENTAL BALANCE SHEET IN_4
SUPPLEMENTAL BALANCE SHEET INFORMATION Other long-term liabilities (Details) - USD ($) $ in Thousands | Mar. 29, 2023 | Dec. 28, 2022 | Mar. 30, 2022 |
Other Liabilities Disclosure [Abstract] | |||
Deferred licensing revenue | $ 16,085 | $ 14,340 | |
Long-term portion of financing equipment lease liabilities | $ 3,828 | $ 3,909 | $ 3,909 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities | |
Other | $ 2,279 | $ 2,438 | |
Other long-term liabilities | $ 22,192 | $ 20,687 |
DEBT - Convertible Notes (Detai
DEBT - Convertible Notes (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 29, 2023 | Jun. 29, 2022 | Dec. 28, 2022 | Dec. 29, 2021 | |
Debt Instrument [Line Items] | |||||
Fair value of convertible notes | $ 175,000 | $ 162,500 | |||
0% Convertible Senior Notes | Private Placement | |||||
Debt Instrument [Line Items] | |||||
Stock issued during period | $ 250,000 | $ 250,000 | $ 250,000 | ||
Conversion rate | 5,867.9000 | ||||
Conversion of stock, price per share | $ 170,420 | ||||
Class A Common Stock | |||||
Debt Instrument [Line Items] | |||||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Debt - Convertible Notes Classi
Debt - Convertible Notes Classification (Details) - 0% Convertible Senior Notes - Private Placement - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2021 | Mar. 29, 2023 | Mar. 30, 2022 | Jun. 29, 2022 | |
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs | $ 262 | $ 262 | ||
Stock issued during period | $ 250,000 | 250,000 | $ 250,000 | |
Debt issuance costs | (5,149) | (5,411) | ||
Total Long-term debt | $ 244,851 | $ 244,589 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - USD ($) | 3 Months Ended | |
Mar. 29, 2023 | Dec. 28, 2022 | |
Debt Instrument [Line Items] | ||
Outstanding amount under credit facility | $ 0 | $ 0 |
Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 50,000,000 | |
Incremental borrowing capacity | $ 100,000,000 | |
Revolving Credit Facility | Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1% | |
Revolving Credit Facility | Revolving Credit Facility | Minimum | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0% | |
Revolving Credit Facility | Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Revolving Credit Facility | Revolving Credit Facility | Maximum | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Letter of credit | Line of credit | Third Amendment and Restated Credit Arrangement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 15,000,000 | |
Letters of credit outstanding | $ 1,863,000 | $ 1,863,000 |
Debt - Revolving Credit Facil_2
Debt - Revolving Credit Facility Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2023 | Mar. 30, 2022 | Dec. 28, 2022 | |
Debt Instrument [Line Items] | |||
Interest costs incurred | $ 24 | $ 36 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance cost | $ 57 | $ 62 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 29, 2023 USD ($) option | |
Operating Leased Assets [Line Items] | |
Number of renewal options | option | 2 |
Renewal term | 5 years |
Operating lease for non-cancellable leases | $ | $ 144,967 |
Minimum | |
Operating Leased Assets [Line Items] | |
Term of contract | 10 years |
Maximum | |
Operating Leased Assets [Line Items] | |
Term of contract | 15 years |
LEASES - Balance Sheet Clasific
LEASES - Balance Sheet Clasification (Details) - USD ($) $ in Thousands | Mar. 29, 2023 | Dec. 28, 2022 | Mar. 30, 2022 |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Operating lease assets | Operating lease assets | |
Operating lease assets | $ 379,475 | $ 367,488 | $ 367,488 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net of accumulated depreciation of $310,939 and $290,362, respectively | Property and equipment, net of accumulated depreciation of $310,939 and $290,362, respectively | |
Finance lease right-of-use asset | $ 6,117 | 6,152 | |
Total right-of-use assets | 385,592 | 373,640 | |
Operating leases: | |||
Operating lease liabilities, current | 44,578 | $ 42,238 | 42,238 |
Long-term operating lease liabilities | 441,554 | 427,227 | 427,227 |
Finance leases: | |||
Other current liabilities | 2,521 | 2,546 | 2,546 |
Other long-term liabilities | 3,828 | $ 3,909 | 3,909 |
Total lease liabilities | $ 492,481 | $ 475,920 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Total lease cost | ||
Operating lease cost | $ 16,075 | $ 13,681 |
Amortization of right-of-use assets | 737 | 753 |
Interest on lease liabilities | 70 | 52 |
Variable lease cost | 3,770 | 3,504 |
Short-term lease cost | 240 | 98 |
Total lease cost | $ 20,892 | $ 18,088 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 29, 2023 USD ($) |
Operating Leases | |
2023 | $ 39,574 |
2024 | 75,201 |
2025 | 74,664 |
2026 | 70,986 |
2027 | 66,535 |
Thereafter | 291,236 |
Total minimum payments | 618,196 |
Less: imputed interest | 144,365 |
Total lease liabilities | 473,831 |
Finance Leases | |
2023 | 2,138 |
2024 | 2,222 |
2025 | 1,314 |
2026 | 576 |
2027 | 332 |
Thereafter | 263 |
Total minimum payments | 6,845 |
Less: imputed interest | 496 |
Total lease liabilities | $ 6,349 |
LEASES - Lease Terms and Discou
LEASES - Lease Terms and Discount Rates (Details) | Mar. 29, 2023 | Dec. 28, 2022 |
Weighted average remaining lease term (years): | ||
Operating leases | 9 years | 8 years 10 months 24 days |
Finance leases | 4 years 10 months 24 days | 5 years 1 month 6 days |
Weighted average discount rate: | ||
Operating leases | 5.80% | 5.70% |
Finance leases | 4.30% | 4% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 16,830 | $ 13,525 |
Operating cash flows from finance leases | 70 | 52 |
Financing cash flows from finance leases | 807 | 747 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 21,414 | 5,541 |
Finance leases | $ 701 | $ 676 |
NON-CONTROLLING INTERESTS - Own
NON-CONTROLLING INTERESTS - Ownership Interest in SSE Holdings (Details) - shares | Mar. 29, 2023 | Dec. 28, 2022 |
Noncontrolling Interest [Line Items] | ||
Number of LLC Interests held by Shake Shack Inc. (in shares) | 39,404,905 | 39,284,998 |
Number of LLC Interests held by non-controlling interest holders (in shares) | 2,844,513 | 2,869,513 |
Total LLC Interests outstanding (in shares) | 42,249,418 | 42,154,511 |
Total LLC Interests outstanding (as a percentage) | 100% | 100% |
Shake Shack Inc. | ||
Noncontrolling Interest [Line Items] | ||
Number of LLC Interests held by Shake Shack Inc. (as a percentage) | 93.30% | 93.20% |
Non-Controlling Interest Holders | ||
Noncontrolling Interest [Line Items] | ||
Number of LLC Interests held by non-controlling interest holders (as a percentage) | 6.70% | 6.80% |
NON-CONTROLLING INTERESTS - Wei
NON-CONTROLLING INTERESTS - Weighted Average Ownership Percentages (Details) | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Noncontrolling Interest [Abstract] | ||
Non-controlling interest holders' weighted average ownership percentage | 6.80% | 6.90% |
NON-CONTROLLING INTERESTS - Cha
NON-CONTROLLING INTERESTS - Changes in Ownership Interests in SSE Holdings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Noncontrolling Interest [Line Items] | ||
Net loss attributable to Shake Shack Inc. | $ (1,534) | $ (10,162) |
Other comprehensive loss: | ||
Change in foreign currency translation adjustment | (4) | (1) |
Transfers (to) from non-controlling interests: | ||
Total effect of changes in ownership interest on loss attributable to Shake Shack Inc. | (4,043) | (12,390) |
Redemption or Exchange of Units | ||
Transfers (to) from non-controlling interests: | ||
Increase (decrease) in additional paid-in capital | 194 | 49 |
Employee Stock Option | ||
Transfers (to) from non-controlling interests: | ||
Increase (decrease) in additional paid-in capital | (2,699) | (2,276) |
Unrealized holding gains on equity securities | ||
Other comprehensive loss: | ||
Change in foreign currency translation adjustment | $ (4) | $ (1) |
NON-CONTROLLING INTERESTS - Red
NON-CONTROLLING INTERESTS - Redemption of LLC Interests (Details) - shares | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Stock options | ||
Class of Stock [Line Items] | ||
Units acquired during the period (in shares) | 94,907 | 65,893 |
Limited Liability Company | ||
Class of Stock [Line Items] | ||
Units acquired during the period (in shares) | 119,907 | |
Number of units redeemed (in shares) | 25,000 | 10,000 |
Redemptions by NCI Holders | Limited Liability Company | ||
Class of Stock [Line Items] | ||
Number of units redeemed (in shares) | 25,000 | 10,000 |
Common Stock | Class A Common Stock | ||
Class of Stock [Line Items] | ||
Shares of Class A common stock issued in connection with redemptions of LLC Interests | 25,000 | 10,000 |
Common Stock | Class B Common Stock | ||
Class of Stock [Line Items] | ||
Shares of Class A common stock issued in connection with redemptions of LLC Interests | (25,000) | (10,000) |
Shares of Class B common stock surrendered and canceled | 25,000 | 10,000 |
EQUITY-BASED COMPENSATION - Sch
EQUITY-BASED COMPENSATION - Schedule of compensation expense recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | $ 3,802 | $ 3,188 |
Total income tax benefit recognized related to equity-based compensation | 102 | 56 |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | 1,310 | 1,424 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | 2,492 | 1,764 |
General and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | 3,529 | 2,991 |
Labor and related expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | $ 273 | $ 197 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Income Tax Contingency [Line Items] | ||
Effective income tax rate reconciliation (in percentage) | (114.80%) | 27.60% |
Ownership percentage, weighted average | 93.20% | 93.10% |
Deferred tax asset recognized as a result of investment in partnership | $ 824 | |
Deferred tax asset related to additional tax basis | $ 129 | |
Percentage of tax benefits due to equity owners | 85% | |
Percentage of tax benefits expected to be realized | 15% | |
Consolidated entity, ownership by parent, LLC units acquired | 25,000 | |
Establishment of liabilities under tax receivable agreement | $ 472 | $ 228 |
Tax Receivable Agreement Payments To Related Parties | 0 | $ 0 |
Tax receivable agreement liability | 235,361 | |
Foreign Tax Credit | ||
Income Tax Contingency [Line Items] | ||
Deferred tax assets, valuation allowance | $ 0 | |
Limited Liability Company | ||
Income Tax Contingency [Line Items] | ||
Units acquired during the period (in shares) | 119,907 | |
Deferred tax asset, investment in partnership | $ 88,520 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Numerator: | ||
Net loss attributable to Shake Shack Inc.—basic | $ (1,534) | $ (10,162) |
Net loss attributable to Shake Shack Inc.—diluted | $ (1,534) | $ (10,162) |
Denominator: | ||
Weighted-average shares of Class A common stock outstanding—basic (in shares) | 39,332 | 39,163 |
Weighted-average shares of Class A common stock outstanding—diluted (in shares) | 39,332 | 39,163 |
Earnings per share of Class A common stock—basic (in dollars per share) | $ (0.04) | $ (0.26) |
Earnings per share of Class A common stock—diluted (in dollars per share) | $ (0.04) | $ (0.26) |
EARNINGS PER SHARE - Antidiluti
EARNINGS PER SHARE - Antidilutive Securities (Details) - Common Stock - shares | 3 Months Ended | |
Mar. 29, 2023 | Mar. 30, 2022 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares (in shares) | 128,656 | 149,731 |
Performance stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares (in shares) | 134,659 | 165,108 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares (in shares) | 576,227 | 401,716 |
Shares of Class B common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares (in shares) | 2,844,513 | 2,911,587 |
Convertible Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares (in shares) | 1,466,975 | 1,466,975 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2023 | Mar. 30, 2022 | Dec. 28, 2022 | |
Loss Contingencies [Line Items] | |||
Loss contingency accrual | $ 900 | ||
Percentage of tax benefits due to equity owners | 85% | ||
Establishment of liabilities under tax receivable agreement | $ 472 | $ 228 | |
Tax Receivable Agreement Liability, Noncurrent | 235,361 | $ 234,893 | |
Retail site | |||
Loss Contingencies [Line Items] | |||
Letters of credit outstanding | 130 | ||
Office building | |||
Loss Contingencies [Line Items] | |||
Letters of credit outstanding | $ 603 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 29, 2023 USD ($) renewal_option | Mar. 30, 2022 USD ($) | |
Related Party Transaction [Line Items] | ||
Percentage of tax benefits due to equity owners | 85% | |
Tax Receivable Agreement Payments To Related Parties | $ | $ 0 | $ 0 |
Subsidiary to Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Master license agreement, number of renewal terms | renewal_option | 5 | |
Renewal option period | 5 years |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 29, 2023 | Mar. 30, 2022 | Dec. 28, 2022 | |
Related Party Transaction [Line Items] | |||
Tax Receivable Agreement Liability, Noncurrent | $ 235,361,000 | $ 234,893,000 | |
Distributions paid to non-controlling interest holders | 49,000 | $ 302,000 | |
Concession Income | Subsidiary to Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 146,000 | 104,000 | |
Due from related parties, current | 24,000 | 69,000 | |
Rent Expense | Entity with Common Management | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from transactions with related party | 224,000 | 220,000 | |
Mobo Systems, Inc. | Board of Directors Chairman | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from transactions with related party | 124,000 | 134,000 | |
Due to related parties, current | 81,000 | 39,000 | |
Square, Inc | Board of Directors Chairman | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from transactions with related party | 1,571,000 | $ 825,000 | |
Due to related parties, current | $ 45,000 | $ 55,000 |