Shake Shack reports $423.27 million revenue for Q3 2026

Cover page 2 changes

3 unchanged paragraphs

For the quarterly period ended July 1, September 30, 2026

20 unchanged paragraphs

As of July 29, October 28, 2026, there were 40,408,149 40,421,151 shares of Class A common stock outstanding and 2,390,789 2,380,789 shares of Class B common stock outstanding.

2 unchanged paragraphs

Notes to the financial statements 197 changes

3 unchanged paragraphs

Other assets 11,556 10,373

Cash and cash equivalents $ 307,962 319,004 $ 360,123

Accounts receivable, net 34,657 30,563 32,962

Inventories 7,359 7,562 7,182

Prepaid expenses and other current assets 43,780 40,242 30,080

Total current assets 393,758 397,371 430,347

Property and equipment, net of accumulated depreciation of $ 604,230 630,566 and $ 551,004 , respectively.

Operating lease assets 551,687 568,563 507,253

Deferred income taxes, net 319,980 315,438 322,385

Other assets 8,132 10,373

TOTAL ASSETS $ 1,950,280 1,985,295 $ 1,896,209

2 unchanged paragraphs

Accounts payable $ 23,612 $ 24,747

Accrued expenses 92,318 103,354

Accounts payable $ 25,085 $ 24,747

Accrued expenses 82,599 103,354

Accrued wages and related liabilities 23,175 24,375 25,481

Operating lease liabilities, current 67,164 69,850 63,553

Other current liabilities 29,732 29,043 27,783

Total current liabilities 236,001 230,952 244,918

Long-term debt 248,255 248,517 247,731

Long-term operating lease liabilities 621,756 639,888 575,138

Liabilities under tax receivable agreement, net of current portion 244,713 244,030 244,463

Other long-term liabilities 28,004 27,095 30,210

Total liabilities 1,378,729 1,390,482 1,342,460

2 unchanged paragraphs

Retained earnings 88,099 72,709

Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of July 1, September 30, 2026 and December 31, 2025. — —

Class A common stock, $0.001 par value—200,000,000 shares authorized; 40,370,460 40,415,423 and

40,254,281 shares issued and outstanding as of July 1, September 30, 2026 and December 31, 2025, respectively. 40 40

Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,425,789 2,385,789 and

2,434,789 shares issued and outstanding as of July 1, September 30, 2026 and December 31, 2025, respectively. 2 2

Additional paid-in capital 456,186 459,366 452,577

Retained earnings 104,585 72,709

1 unchanged paragraph

Total equity 571,551 553,749

Total stockholders' equity attributable to Shake Shack Inc. 544,321 563,987 525,327

Non-controlling interests 27,230 30,826 28,422

Total equity 594,813 553,749

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,950,280 1,985,295 $ 1,896,209

4 unchanged paragraphs

Thirteen Weeks Ended Twenty-Six Weeks Ended

Shack sales $ 403,437 $ 343,224 $ 757,484 $ 653,062

Licensing revenue 14,181 13,242 26,871 24,302

TOTAL REVENUE 417,618 356,466 784,355 677,364

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Shack sales $ 408,026 $ 352,846 $ 1,165,510 $ 1,005,908

Licensing revenue 15,247 14,565 42,118 38,867

TOTAL REVENUE 423,273 367,411 1,207,628 1,044,775

1 unchanged paragraph

Food and paper costs 116,276 96,621 216,299 182,658

Labor and related expenses 101,226 88,058 193,943 174,726

Other operating expenses 63,118 50,768 120,630 99,030

Occupancy and related expenses 30,151 25,593 58,805 50,224

General and administrative expenses 48,321 40,671 101,929 81,311

Depreciation and amortization expense 30,717 26,545 59,837 53,088

Pre-opening costs 6,638 4,955 13,508 8,173

TOTAL EXPENSES 396,872 334,092 766,243 652,148

INCOME FROM OPERATIONS 20,746 22,374 18,112 25,216

Other income, net 2,602 2,850 5,345 5,821

Interest expense ( 553 ) ( 548 ) ( 1,101 ) ( 1,111 )

INCOME BEFORE INCOME TAXES 22,795 24,676 22,356 29,926

Income tax expense 5,913 6,193 5,768 6,930

NET INCOME 16,882 18,483 16,588 22,996

NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC. $ 15,680 $ 17,148 $ 15,390 $ 21,393

Food and paper costs 115,276 103,461 331,575 286,119

Labor and related expenses 103,823 88,033 297,766 262,759

Other operating expenses 65,828 53,779 186,458 152,809

Occupancy and related expenses 31,366 26,995 90,171 77,219

General and administrative expenses 44,989 44,381 146,918 125,692

Depreciation and amortization expense 32,930 27,079 92,767 80,167

Pre-opening costs 6,978 4,625 20,486 12,798

Impairments, loss on disposal of assets, and Shack closures 425 881 1,292 2,938 601 510 1,893 3,448

TOTAL EXPENSES 401,791 348,863 1,168,034 1,001,011

INCOME FROM OPERATIONS 21,482 18,548 39,594 43,764

Other income, net 2,459 3,103 7,804 8,924

Interest expense ( 567 ) ( 504 ) ( 1,668 ) ( 1,615 )

INCOME BEFORE INCOME TAXES 23,374 21,147 45,730 51,073

Income tax expense 5,607 7,436 11,375 14,366

NET INCOME 17,767 13,711 34,355 36,707

Less: Net income attributable to non-controlling interests 1,202 1,335 1,198 1,603 1,281 1,210 2,479 2,813

NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC. $ 16,486 $ 12,501 $ 31,876 $ 33,894

1 unchanged paragraph

Basic $ 0.39 $ 0.43 $ 0.38 $ 0.53

Diluted $ 0.37 $ 0.41 $ 0.37 $ 0.51

Basic $ 0.41 $ 0.31 $ 0.79 $ 0.84

1 unchanged paragraph

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and 117 more changes in the filing

Note 1: NATURE OF OPERATIONS 2 changes

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 July 1, September 30, 2026 the Company owned 94.3 94.4 % 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, and more. As of July 1, September 30, 2026, there were 703 738 Shacks in operation system wide, of which 406 427 were Company-operated Shacks and 297 311 were licensed Shacks.

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1 change

2 unchanged paragraphs

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 July 1, September 30, 2026 and December 31, 2025, the net assets of SSE Holdings were $ 527,776 555,256 and $ 500,732 , respectively. The assets of SSE Holdings are subject to certain restrictions in SSE Holdings' revolving credit agreement.

5 unchanged paragraphs

Note 3: REVENUE 18 changes

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Shack sales $ 403,437 $ 343,224 $ 757,484 $ 653,062

Sales-based royalties 13,561 12,613 25,714 23,252

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Shack sales $ 408,026 $ 352,846 $ 1,165,510 $ 1,005,908

Sales-based royalties 14,624 13,561 40,338 36,813

1 unchanged paragraph

Total revenue $ 417,618 $ 356,466 $ 784,355 $ 677,364

Total revenue $ 423,273 $ 367,411 $ 1,207,628 $ 1,044,775

The aggregate amount of the transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of July 1, September 30, 2026 was $ 26,226 25,673 . The Company expects to recognize this amount as revenue over a long-term period, as the majority of license terms for each Shack range from ten to twenty years . This amount excludes any variable consideration related to sales-based royalties.

1 unchanged paragraph

Shack sales receivables $ 14,397 13,297 $ 13,397

Licensing receivables, net of allowance for doubtful accounts 6,408 7,073 7,507

Gift card liability 2,704 2,744 3,711

Deferred revenue, current 1,972 2,144 1,928

Deferred revenue, long-term 18,677 18,225 19,154

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Deferred revenue 611 617 1,146 1,036

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Deferred revenue 605 561 1,751 1,597

1 unchanged paragraph

Note 4: FAIR VALUE MEASUREMENTS 1 change

4 unchanged paragraphs

There were no impairment charges recognized during the thirteen and twenty-six thirty-nine weeks ended July 1, September 30, 2026. During the thirteen and twenty-six thirty-nine weeks ended June 25, September 24, 2025, the Company recognized impairment charges of nil $ 8 and $ 162 170 , respectively, related to the nine Shack closures in fiscal 2024. Additionally, the Company recognized miscellaneous Shack closure expense of $( 295 52 ) and $ 1,786 1,734 , respectively for the thirteen and twenty-six thirty-nine weeks ended June 25, September 24, 2025, primarily related to the true-up of expenses for the nine Shack closures in fiscal 2024.

Note 5: SUPPLEMENTAL BALANCE SHEET INFORMATION 4 changes

4 unchanged paragraphs

Sales tax payable $ 8,339 8,018 $ 10,080

Current portion of financing equipment lease liabilities 6,633 7,024 5,959

Gift card liability 2,704 2,744 3,711

1 unchanged paragraph

Other current liabilities $ 29,732 29,043 $ 27,783

Note 6: DEBT 22 changes

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.

1 unchanged paragraph

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.

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Classification July 1

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 $ 229,415 236,000 and $ 236,875 , respectively, as of July 1, September 30, 2026 and December 31, 2025, 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 Thirty-Nine Weeks Ended

Classification September 30

Amortization expense on Convertible Notes Interest expense $ 262 $ 262 $ 524 786 $ 524 786

1 unchanged paragraph

Discount and debt issuance costs, net of amortization ( 1,745 1,483 ) ( 2,269 )

Long-term debt $ 248,255 248,517 $ 247,731

3 unchanged paragraphs

Outstanding borrowings under the Revolving Credit Facility bear interest at either: (i) the base rate plus applicable margin ranging from 0.0 % to 1.5 % or (ii) the Secured Overnight Financing Rate ("SOFR") plus applicable margin ranging from 1.0 % to 2.5 %, in each case dependent upon the net lease adjusted leverage ratio. As of July 1, September 30, 2026 and December 31, 2025, 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 July 1, 2026, the Company was in compliance with all covenants.

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Classification July 1

Classification July 1

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 September 30, 2026, 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 July 1, September 30, 2026 and December 31, 2025, the Company had outstanding letters of credit of $ 4,853 4,917 and $ 4,839 , respectively, in connection with the Revolving Credit Facility.

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Classification September 30

Interest expense on Revolving Credit Facility Interest expense $ 13 14 $ 16 14 $ 27 41 $ 33 47

Classification September 30

Unamortized deferred financing costs on Revolving Credit Facility Other assets $ 14 12 $ 19

Note 7: LEASES 44 changes

1 unchanged paragraph

Classification July 1

Classification September 30

Operating leases Operating lease assets $ 551,687 568,563 $ 507,253

Finance leases Property and equipment, net 14,218 14,116 15,056

Total right-of-use assets $ 565,905 582,679 $ 522,309

Operating lease liabilities, current $ 67,164 69,850 $ 63,553

Long-term operating lease liabilities 621,756 639,888 575,138

Other current liabilities 6,633 7,024 5,959

Other long-term liabilities 8,278 7,796 9,745

Total lease liabilities $ 703,831 724,558 $ 654,395

2 unchanged paragraphs

Thirteen Weeks Ended Twenty-Six Weeks Ended

Classification July 1

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Classification September 30

1 unchanged paragraph

General and administrative expenses $ 25,937 $ 21,576 $ 50,624 $ 42,250

General and administrative expenses $ 26,689 $ 22,239 $ 77,313 $ 64,489

Amortization of right-of-use assets Depreciation and amortization expense 1,683 1,397 3,306 2,751 1,756 1,430 5,062 4,181

Interest on lease liabilities Interest expense 212 231 434 466 211 227 645 693

1 unchanged paragraph

General and administrative expenses 6,779 5,932 13,210 11,535

Total lease cost $ 34,765 $ 29,299 $ 67,880 $ 57,312

General and administrative expenses 6,884 6,517 20,094 18,052

Short-term lease cost Occupancy and related expenses 154 163 306 310 170 171 476 481

Total lease cost $ 35,710 $ 30,584 $ 103,590 $ 87,896

As of July 1, September 30, 2026, future minimum lease payments for operating and finance leases consisted of the following:

1 unchanged paragraph

Thereafter 430,323 174

Total minimum payments 888,412 15,917

Less: imputed interest 218,587 1,006

Total lease liabilities $ 669,825 $ 14,911

Thereafter 474,608 439

Total minimum payments 919,784 15,828

Less: imputed interest 231,151 1,008

Total lease liabilities $ 688,633 $ 14,820

(1) Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of July 1, September 30, 2026.

As of July 1, September 30, 2026, the Company had additional operating lease commitments of $ 184,053 182,697 for non-cancelable leases without a possession date, which commence in 2026 or later. The terms of these lease commitments are materially consistent with leases recognized on the Condensed Consolidated Balance Sheets.

9 unchanged paragraphs

Twenty-Six Weeks Ended

Thirty-Nine Weeks Ended

1 unchanged paragraph

Operating cash flows from operating leases $ 51,463 79,083 $ 52,000 75,776

Operating cash flows from finance leases 434 466 645 693

Financing cash flows from finance leases 3,254 2,631 4,999 4,013

1 unchanged paragraph

Operating leases 75,213 55,233

Finance leases 2,688 6,292

16 | Shake Shack Inc. Form 10-Q

Operating leases 108,171 82,119

Finance leases 4,372 7,943

Note 8: NON-CONTROLLING INTERESTS 27 changes

2 unchanged paragraphs

July 1, September 30, 2026 December 31, 2025

1 unchanged paragraph

Number of LLC Interests held by Shake Shack Inc. 40,370,460 94.3 40,415,423 94.4 % 40,254,281 94.3 %

Number of LLC Interests held by non-controlling interest holders 2,425,789 5.7 2,385,789 5.6 % 2,434,789 5.7 %

Total LLC Interests outstanding 42,796,249 42,801,212 100.0 % 42,689,070 100.0 %

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Non-controlling interest holders' weighted average ownership percentages 5.7 5.6 % 5.7 % 5.7 % 5.7 %

16 | Shake Shack Inc. Form 10-Q

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Net income attributable to Shake Shack Inc. $ 15,680 $ 17,148 $ 15,390 $ 21,393

Other comprehensive loss:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Net income attributable to Shake Shack Inc. $ 16,486 $ 12,501 $ 31,876 $ 33,894

Other comprehensive income (loss):

Foreign currency translation adjustment — ( 2 ) 3 ( 5 ) ( 3 —

1 unchanged paragraph

Shake Shack Inc. Form 10-Q | 17

Increase (decrease) in additional paid-in capital as a result of the redemption of LLC Interests 54 20 70 438 28 508 ( 299 271 )

Decrease in additional paid-in capital as a result of activity under stock compensation plan ( 694 3,032 ) ( 1,149 1,459 ) ( 6,166 9,198 ) ( 9,491 10,950 )

Total effect of changes in ownership interest on equity attributable to Shake Shack Inc. $ 15,040 13,892 $ 16,017 11,073 $ 9,289 23,181 $ 11,600 22,673

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Thirteen Weeks Ended Thirty-Nine Weeks Ended

1 unchanged paragraph

Number of LLC Interests received by Shake Shack Inc. 15,305 17,320 107,179 159,989 4,963 4,463 112,142 164,452

1 unchanged paragraph

Number of LLC Interests redeemed by non-controlling interest holders 5,000 40,000 5,000 9,000 15,924 49,000 20,924

Number of LLC Interests received by Shake Shack Inc. 5,000 40,000 5,000 9,000 15,924 49,000 20,924

1 unchanged paragraph

Shares of Class A common stock issued in connection with redemptions of LLC Interests 5,000 40,000 5,000 9,000 15,924 49,000 20,924

1 unchanged paragraph

18 | Shake Shack Inc. Form 10-Q

Shares of Class B common stock surrendered and canceled 5,000 40,000 5,000 9,000 15,924 49,000 20,924

Note 9: EQUITY-BASED COMPENSATION 18 changes

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Performance stock units $ ( 333 ) $ 1,390 $ 460 $ 2,538

Restricted stock units 4,255 3,819 8,622 7,212

Equity-based compensation expense $ 3,922 $ 5,209 $ 9,082 $ 9,750

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Performance stock units $ 978 $ 729 $ 1,438 $ 3,267

Restricted stock units 4,017 3,694 12,639 10,906

Equity-based compensation expense $ 4,995 $ 4,423 $ 14,077 $ 14,173

Shake Shack Inc. Form 10-Q | 17

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

General and administrative expenses $ 3,201 $ 4,653 $ 7,789 $ 8,768

Labor and related expenses 689 556 1,261 982

Equity-based compensation expense $ 3,922 $ 5,209 $ 9,082 $ 9,750

Thirteen Weeks Ended Thirty-Nine Weeks Ended

General and administrative expenses $ 4,401 $ 3,899 $ 12,190 $ 12,667

Labor and related expenses 626 524 1,887 1,506

Pre-opening costs 32 ( 32 ) — — —

Equity-based compensation expense $ 4,995 $ 4,423 $ 14,077 $ 14,173

Note 10: INCOME TAXES 28 changes

3 unchanged paragraphs

Thirteen Weeks Ended Twenty-Six Weeks Ended

Effective income tax rates 25.9 % 25.1 % 25.8 % 23.2 %

The increases in the effective income tax rates for the thirteen and twenty-six weeks ended July 1, 2026 were primarily driven by a decrease in forecasted pre-tax income compared to the prior year, including the effects of nondeductible tax items and a nonrecurring deferred tax adjustment recognized in the prior-year period.

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Effective income tax rates 24.0 % 35.2 % 24.9 % 28.1 %

The decreases in the effective income tax rates for the thirteen and thirty-nine weeks ended September 30, 2026 were primarily due to state tax rate true-ups recorded in the prior year.

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Thirteen Weeks Ended Thirty-Nine Weeks Ended

1 unchanged paragraph

Shake Shack Inc. Form 10-Q | 19

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18 | Shake Shack Inc. Form 10-Q

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Thirteen Weeks Ended Thirty-Nine Weeks Ended

LLC Interests activity under the Company's stock compensation plan 15,305 17,320 107,179 159,989 4,963 4,463 112,142 164,452

LLC Interests activity from redemptions of LLC Interests 5,000 40,000 5,000 9,000 15,924 49,000 20,924

2 unchanged paragraphs

Thirteen Weeks Ended Twenty-Six Weeks Ended

Thirteen Weeks Ended Thirty-Nine Weeks Ended

3 unchanged paragraphs

Thirteen Weeks Ended Twenty-Six Weeks Ended

Thirteen Weeks Ended Thirty-Nine Weeks Ended

1 unchanged paragraph

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 July 1, September 30, 2026, 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) are more likely than not to be realized. As such, no additional valuation allowance was recognized.

1 unchanged paragraph

On July 4, 2025, bill H.R. 1, commonly referred to as the "One Big Beautiful Bill Act" or "OBBBA," was signed into law, with certain provisions effective in 2025 and others in 2026. The Act provides for changes to U.S. federal tax law, including the expensing of U.S. research expenditures and certain eligible capital expenditures, among other provisions. The Company has recognized the effects of the OBBBA provisions in its financial results to the extent they are applicable to the twenty-six thirty-nine weeks ended July 1, September 30, 2026.

1 unchanged paragraph

resulting from payments made under the Tax Receivable Agreement, and (iii) deductions from imputed interest under the agreement (the "TRA Payments"). The Company expects to benefit from the remaining 15 % of any realized tax benefits. The TRA Payments are not conditioned upon any continued ownership interest in SSE Holdings or us. Additionally, the rights of each non-controlling interest holder under the Tax Receivable Agreement, are assignable to transferees of its LLC Interests.

On February 4, 2015, the Company entered into a tax receivable agreement with certain then-existing non-controlling members of SSE Holdings (the "Tax Receivable Agreement"). This agreement obligates the Company to pay the non-controlling interest holders 85 % of any tax benefits that the Company may actually realize, or be deemed to realize, from (i) increases in the Company's share of the tax basis of SSE Holdings due to redemptions or exchanges of LLC Interests, (ii) tax basis increases resulting from payments made under the Tax Receivable Agreement, and (iii) deductions from imputed interest under the agreement (the "TRA Payments"). The Company expects to benefit from the remaining 15 % of any realized tax benefits. The TRA Payments are not conditioned upon any continued ownership interest in SSE Holdings or us. Additionally, the rights of each non-controlling interest holder under the Tax Receivable Agreement, are assignable to transferees of its LLC Interests.

20 | Shake Shack Inc. Form 10-Q | 19

1 unchanged paragraph

There were no transactions subject to the Tax Receivable Agreement for which the Company did not recognize the related liability, as the Company concluded that it would have sufficient future taxable income to utilize all of the related tax benefits generated by all transactions that occurred during the twenty-six thirty-nine weeks ended July 1, September 30, 2026 and June 25, September 24, 2025.

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Thirteen Weeks Ended Thirty-Nine Weeks Ended

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Thirteen Weeks Ended Thirty-Nine Weeks Ended

2 unchanged paragraphs

Note 11: EARNINGS PER SHARE 20 changes

1 unchanged paragraph

20 | Shake Shack Inc. Form 10-Q | 21

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Net income attributable to Shake Shack Inc.—basic $ 15,680 16,486 $ 17,148 12,501 $ 15,390 31,876 $ 21,393 33,894

Net income attributable to Shake Shack Inc.—diluted $ 15,680 16,486 $ 17,148 12,501 $ 15,390 31,876 $ 21,393 33,894

Weighted average shares of Class A common stock outstanding—basic 40,358 40,226 40,323 40,173 40,399 40,250 40,349 40,199

1 unchanged paragraph

Performance stock units 6 23 15 53

Restricted stock units 34 101 67 146

Stock options 1 2 1 3 2

Performance stock units 13 19 14 41

Restricted stock units 30 136 54 143

1 unchanged paragraph

Weighted average shares of Class A common stock outstanding—diluted 41,866 41,819 41,873 41,842 41,910 41,874 41,885 41,852

Earnings per share of Class A common stock—diluted $ 0.37 stock—basic $ 0.41 $ 0.37 0.31 $ 0.51 0.79 $ 0.84

Earnings per share of Class A common stock—basic stock—diluted $ 0.39 $ 0.43 0.30 $ 0.38 0.76 $ 0.53 0.81

3 unchanged paragraphs

Thirteen Weeks Ended Twenty-Six Weeks Ended

Performance stock units 225,832 (1) 120,892 (1) 225,832 (1) 120,892 (1)

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Performance stock units 206,252 (1) 119,101 (1) 206,252 (1) 119,101 (1)

Shares of Class B common stock 2,425,789 2,385,789 (2) 2,439,789 2,434,789 (2) 2,425,789 2,385,789 (2) 2,439,789 2,434,789 (2)

2 unchanged paragraphs

22 | Shake Shack Inc. Form 10-Q | 21

Note 12: SUPPLEMENTAL CASH FLOW INFORMATION 6 changes

1 unchanged paragraph

Twenty-Six Weeks Ended

Thirty-Nine Weeks Ended

Income taxes, net of refunds $ 2,129 3,868 $ 2,882 4,120

Interest, net of amounts capitalized 550 451 842 629

1 unchanged paragraph

Accrued purchases of property and equipment 34,992 24,171 32,654 31,227

Capitalized equity-based compensation 138 144 221 155

2 unchanged paragraphs

Note 13: COMMITMENTS AND CONTINGENCIES 3 changes

1 unchanged paragraph

Certain leases require the Company to obtain letters of credit. As of July 1, September 30, 2026, the Company held three letters of credit totaling $ 695 .

2 unchanged paragraphs

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 July 1, September 30, 2026, the amount of the ultimate liability with respect to these matters was not material.

2 unchanged paragraphs

22 | Shake Shack Inc. Form 10-Q | 23

1 unchanged paragraph

Note 14: RELATED PARTY TRANSACTIONS 19 changes

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Classification July 1

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 July 1, September 30, 2026 and December 31, 2025.

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Classification September 30

4 unchanged paragraphs

Thirteen Weeks Ended Twenty-Six Weeks Ended

Classification July 1

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Classification September 30

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Classification July 1

Classification September 30

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Liabilities under Tax Receivable Agreement, net of current portion $ 246,109 245,426 $ 246,835

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Thirteen Weeks Ended Twenty-Six Weeks Ended

Classification July 1

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 July 1, September 30, 2026 and December 31, 2025.

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Classification September 30

Amounts paid to non-controlling interest holders Non-controlling interests $ 2,805 114 $ 836 901 $ 2,817 2,931 $ 857 1,758

24 | Shake Shack Inc. Form 10-Q | 23

Note 15: SEGMENT REPORTING 24 changes

3 unchanged paragraphs

Thirteen Weeks Ended Twenty-Six Weeks Ended

Food and paper costs 116,276 96,621 216,299 182,658

Labor and related expenses 101,226 88,058 193,943 174,726

Thirteen Weeks Ended Thirty-Nine Weeks Ended

Food and paper costs 115,276 103,461 331,575 286,119

Labor and related expenses 103,823 88,033 297,766 262,759

1 unchanged paragraph

Occupancy and related expenses 30,151 25,593 58,805 50,224

Occupancy and related expenses 31,366 26,995 90,171 77,219

1 unchanged paragraph

Depreciation and amortization expense 30,717 26,545 59,837 53,088

Pre-opening costs 6,638 4,955 13,508 8,173

Interest expense 553 548 1,101 1,111

Income tax expense 5,913 6,193 5,768 6,930

Depreciation and amortization expense 32,930 27,079 92,767 80,167

Pre-opening costs 6,978 4,625 20,486 12,798

Impairments, loss on disposal of assets, and Shack closures 425 881 1,292 2,938 601 510 1,893 3,448

Interest expense 567 504 1,668 1,615

Income tax expense 5,607 7,436 11,375 14,366

1 unchanged paragraph

Segment income 16,882 18,483 16,588 22,996

Segment income 17,767 13,711 34,355 36,707

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Consolidated net income $ 16,882 $ 18,483 $ 16,588 $ 22,996

Consolidated net income $ 17,767 $ 13,711 $ 34,355 $ 36,707

Total Assets $ 1,950,280 1,985,295 $ 1,896,209

1 unchanged paragraph

(2) Other income, net consists primarily of interest income, adjustments to liabilities under the Tax Receivable Agreement, dividend income, and net unrealized and realized gain and losses from marketable securities. Interest income was $ 85 42 and $ 117 159 for the thirteen and twenty-six thirty-nine weeks ended July 1, September 30, 2026, respectively, and $ 49 32 and $ 88 120 for the thirteen and twenty-six thirty-nine weeks ended June 25, September 24, 2025, respectively.

24 | Shake Shack Inc. Form 10-Q | 25

MD&A 277 changes

9 unchanged paragraphs

26 | Shake Shack Inc. Form 10-Q | 25

1 unchanged paragraph

Average weekly sales were $78,000 for the thirteen weeks ended July 1, 2026, which was flat compared to the same period last year, primarily driven by higher menu prices, partially offset by menu mix. Average weekly sales were $75,000 for the twenty-six weeks ended July 1, 2026, which was flat compared to the same period last year, primarily driven by higher menu prices, partially offset by menu mix.

Digital sales for the thirteen weeks ended July 1, 2026 increased 34.3% to $164.5 million compared to the same period last year. Digital sales for the twenty-six weeks ended July 1, 2026 increased 27.1% to $305.6 million compared to the same period last year. Digital sales includes orders placed on the Shake Shack app, website and third-party delivery platforms, which represented 40.8% and 40.3%, respectively, of Shack sales during the thirteen and twenty-six weeks ended July 1, 2026.

Same-Shack sales for the thirteen weeks ended July 1, September 30, 2026 increased 3.5% 2.5% compared to the same period last year, driven by a 2.0% 1.7% increase in guest traffic price mix and a 1.5% 0.8% increase in price mix. guest traffic. Same-Shack sales for the twenty-six thirty-nine weeks ended July 1, September 30, 2026 increased 4.0% 3.5% compared to the same period last year, driven by a 2.3% 2.1% increase in price mix and a 1.7% 1.4% increase in guest traffic. For the purpose of calculating same-Shack sales for the thirteen and twenty-six thirty-nine weeks ended July 1, September 30, 2026, Shack sales for 296 304 Shacks were included in the comparable Shack base.

Average weekly sales were $75,000 for the thirteen weeks ended September 30, 2026, compared to $78,000 for the same period last year. Average weekly sales were $75,000 for the thirty-nine weeks ended September 30, 2026, compared to $76,000 for the same period last year. The decreases were primarily due to the continued acceleration of our development pipeline leading to a larger portion of our system consisting of Shacks that are ramping toward mature sales volumes.

System-wide sales for the thirteen weeks ended July 1, September 30, 2026 increased 13.8% 12.8% to $625.8 $644.8 million compared to the same period last year. System-wide sales for the twenty-six thirty-nine weeks ended July 1, September 30, 2026 increased 13.9% 13.5% to $1,184.1 $1,828.9 million compared to the same period last year.

In Q3 2026, we changed our definition of digital sales to include kiosk and exclude third-party delivery. We believe digital sales, which now consists of kiosk, the Shake Shack app and website channels, better reflects how we make investment decisions, prioritize and review our digital business to deepen our understanding of guest behavior. Digital sales for prior periods have been reclassified to reflect this change and are included in the tables below.

Thirteen Weeks Ended Thirty-Nine Weeks Ended

April 1, 2026 July 1, 2026 September 30, 2026 September 30, 2026

Digital Sales $ 206,006 $ 237,931 $ 240,180 $ 684,117

Percentage of Shack sales 58.2 % 59.0 % 58.9 % 58.7 %

Thirteen Weeks Ended Thirty-Nine Weeks Ended

March 26, 2025 June 25, 2025 September 24, 2025 September 24, 2025

Digital Sales $ 166,884 $ 195,351 $ 205,299 $ 567,534

Percentage of Shack sales 53.9 % 56.9 % 58.2 % 56.4 %

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The following tables summarize the Shacks opened and closed during the thirteen and twenty-six thirty-nine weeks ended July 1, September 30, 2026.

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Twenty-six Weeks Ended

26 | Shake Shack Inc. Form 10-Q

Thirty-Nine Weeks Ended

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Thirteen Weeks Ended Twenty-Six Weeks Ended

Shack sales $ 403,437 96.6 % $ 343,224 96.3 % $ 757,484 96.6 % $ 653,062 96.4 %

Licensing revenue 14,181 3.4 % 13,242 3.7 % 26,871 3.4 % 24,302 3.6 %

TOTAL REVENUE 417,618 100.0 % 356,466 100.0 % 784,355 100.0 % 677,364 100.0 %

The following table summarizes our results of operations for the thirteen and twenty-six thirty-nine weeks ended July 1, September 30, 2026 and June 25, September 24, 2025:

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(dollar amounts in thousands) July 1 September 30

Shack sales $ 408,026 96.4 % $ 352,846 96.0 % $ 1,165,510 96.5 % $ 1,005,908 96.3 %

Licensing revenue 15,247 3.6 % 14,565 4.0 % 42,118 3.5 % 38,867 3.7 %

TOTAL REVENUE 423,273 100.0 % 367,411 100.0 % 1,207,628 100.0 % 1,044,775 100.0 %

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Food and paper costs 116,276 28.8 % 96,621 28.2 % 216,299 28.6 % 182,658 28.0 %

Food and paper costs 115,276 28.3 % 103,461 29.3 % 331,575 28.4 % 286,119 28.4 %

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Other operating expenses 63,118 15.6 % 50,768 14.8 % 120,630 15.9 % 99,030 15.2 %

Occupancy and related expenses 30,151 7.5 % 25,593 7.5 % 58,805 7.8 % 50,224 7.7 %

Other operating expenses 65,828 16.1 % 53,779 15.2 % 186,458 16.0 % 152,809 15.2 %

Occupancy and related expenses 31,366 7.7 % 26,995 7.7 % 90,171 7.7 % 77,219 7.7 %

1 unchanged paragraph

Depreciation and amortization expense 30,717 7.4 % 26,545 7.4 % 59,837 7.6 % 53,088 7.8 %

Pre-opening costs 6,638 1.6 % 4,955 1.4 % 13,508 1.7 % 8,173 1.2 %

TOTAL EXPENSES 396,872 95.0 % 334,092 93.7 % 766,243 97.7 % 652,148 96.3 %

INCOME FROM OPERATIONS 20,746 5.0 % 22,374 6.3 % 18,112 2.3 % 25,216 3.7 %

Other income, net 2,602 0.6 % 2,850 0.8 % 5,345 0.7 % 5,821 0.9 %

Interest expense (553) (0.1) % (548) (0.2) % (1,101) (0.1) % (1,111) (0.2) %

INCOME BEFORE INCOME TAXES 22,795 5.5 % 24,676 6.9 % 22,356 2.9 % 29,926 4.4 %

Income tax expense 5,913 1.4 % 6,193 1.7 % 5,768 0.7 % 6,930 1.0 %

NET INCOME 16,882 4.0 % 18,483 5.2 % 16,588 2.1 % 22,996 3.4 %

Depreciation and amortization expense 32,930 7.8 % 27,079 7.4 % 92,767 7.7 % 80,167 7.7 %

Pre-opening costs 6,978 1.6 % 4,625 1.3 % 20,486 1.7 % 12,798 1.2 %

Impairments, loss on disposal of assets, and Shack closures 425 601 0.1 % 881 0.2 510 0.1 % 1,292 1,893 0.2 % 2,938 0.4 3,448 0.3 %

TOTAL EXPENSES 401,791 94.9 % 348,863 95.0 % 1,168,034 96.7 % 1,001,011 95.8 %

INCOME FROM OPERATIONS 21,482 5.1 % 18,548 5.0 % 39,594 3.3 % 43,764 4.2 %

Other income, net 2,459 0.6 % 3,103 0.8 % 7,804 0.6 % 8,924 0.9 %

Interest expense (567) (0.1) % (504) (0.1) % (1,668) (0.1) % (1,615) (0.2) %

INCOME BEFORE INCOME TAXES 23,374 5.5 % 21,147 5.8 % 45,730 3.8 % 51,073 4.9 %

Income tax expense 5,607 1.3 % 7,436 2.0 % 11,375 0.9 % 14,366 1.4 %

NET INCOME 17,767 4.2 % 13,711 3.7 % 34,355 2.8 % 36,707 3.5 %

Less: Net income attributable to non-controlling interests 1,202 1,281 0.3 % 1,335 0.4 1,210 0.3 % 1,198 2,479 0.2 % 1,603 0.2 2,813 0.3 %

NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC. $ 15,680 3.8 16,486 3.9 % $ 17,148 4.8 12,501 3.4 % $ 15,390 2.0 31,876 2.6 % $ 21,393 33,894 3.2 % (1) As a percentage of Shack sales.

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Thirteen Weeks Ended Twenty-Six Weeks Ended

Shack sales $ 403,437 $ 343,224 $ 757,484 $ 653,062

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(dollar amounts in thousands) July 1 September 30

Shack sales $ 408,026 $ 352,846 $ 1,165,510 $ 1,005,908

Percentage of Total revenue 96.6 96.4 % 96.3 96.0 % 96.6 96.5 % 96.4 96.3 %

Dollar change compared to prior year $ 60,213 55,180 $ 104,422 159,602

Percentage change compared to prior year 17.5 15.6 % 16.0 15.9 %

Shack sales for the thirteen weeks ended July 1, September 30, 2026 increased 17.5% 15.6% to $403.4 $408.0 million versus the same period last year. The increase was primarily due to the opening of 61 69 new Company-operated Shacks between June 25, September 24, 2025 and July 1, September 30, 2026, which contributed $47.2 $47.4 million, as well as a 3.5% 2.5% increase in same-Shack sales.

1 unchanged paragraph

Shack sales for the twenty-six thirty-nine weeks ended July 1, September 30, 2026 increased 16.0% 15.9% to $757.5 $1,165.5 million versus the same period last year. The increase was primarily due to the opening of 61 69 new Company-operated Shacks between June 25, September 24, 2025 and July 1, September 30, 2026, which contributed $76.4 $102.5 million, as well as a 4.0% 3.5% increase in same-Shack sales.

1 unchanged paragraph

Thirteen Weeks Ended Twenty-Six Weeks Ended

Licensing revenue $ 14,181 $ 13,242 $ 26,871 $ 24,302

Thirteen Weeks Ended Thirty-Nine Weeks Ended

(dollar amounts in thousands) July 1 September 30

Licensing revenue $ 15,247 $ 14,565 $ 42,118 $ 38,867

Percentage of Total revenue 3.4 3.6 % 3.7 4.0 % 3.4 3.5 % 3.6 3.7 %

Dollar change compared to prior year $ 939 682 $ 2,569 3,251

Percentage change compared to prior year 7.1 4.7 % 10.6 8.4 %

Licensing revenue for the thirteen weeks ended July 1, September 30, 2026 increased 7.1% 4.7% to $14.2 $15.2 million versus the same period last year. The increase was primarily due to the opening of 40 49 new licensed Shacks between June 25, September 24, 2025 and July 1, September 30, 2026, which contributed $1.3 $1.7 million, partially offset by decreased sales at revenue from existing international licensed Shacks, primarily in and the Middle East. permanent closure of nine licensed Shacks between September 24, 2025 and September 30, 2026.

Licensing revenue for the twenty-six thirty-nine weeks ended July 1, September 30, 2026 increased 10.6% 8.4% to $26.9 $42.1 million versus the same period last year. The increase was primarily due to the opening of 40 49 new licensed Shacks between June 25, September 24, 2025 and July 1, September 30, 2026, which contributed $2.2 $3.5 million.

2 unchanged paragraphs

Thirteen Weeks Ended Twenty-Six Weeks Ended

Food and paper costs $ 116,276 $ 96,621 $ 216,299 $ 182,658

Percentage of Shack sales 28.8 % 28.2 % 28.6 % 28.0 %

As a percentage of Shack sales, the increases in Food and paper costs for the thirteen and twenty-six weeks ended were primarily driven by unfavorable menu mix and increased commodity costs, mainly beef, and marketing promotions, partially offset by increased menu prices.

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and 197 more changes in the filing

Controls and procedures 1 change

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There were no changes to our internal control over financial reporting that occurred during the quarter ended July 1, September 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Other information 1 change

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and 1 more change in the filing