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UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q(Mark One)

þþQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934

For the quarterly period ended March 27, 2019OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934

For the transition period from _______ to ______

Commissionfilenumber:001-36823

SHAKE SHACK INC.(Exactnameofregistrantasspecifiedinitscharter)

Delaware 47-1941186

(Stateorotherjurisdictionofincorporationororganization)

(IRSEmployerIdentificationNo.)

225 Varick Street, Suite 301New York, New York 10014

(Addressofprincipalexecutiveoffices) (ZipCode)

(646) 747-7200(Registrant'stelephonenumber,includingareacode)

Not applicable(Formernameorformeraddress,ifchangedsincelastreport)

Indicatebycheckmarkiftheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.þYesoNo

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule-405ofRegulationS-Tduringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).þYesoNo

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growthcompany. See thedefinitionsof"largeacceleratedfiler,""acceleratedfiler,""smallerreportingcompany,"and"emerginggrowthcompany"inRule12b-2oftheExchangeAct.

Largeacceleratedfiler þ Acceleratedfiler o

Non-acceleratedfiler o Smallerreportingcompany o

Emerginggrowthcompany o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any newor revised financial accountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.o

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).oYesþNo

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SecuritiesregisteredpursuanttoSection12(b)oftheAct

Titleofeachclass Tradingsymbol(s) NameofeachexchangeonwhichregisteredClassACommonStock,parvalue$0.001 SHAK NewYorkStockExchange

AsofApril24,2019,therewere29,701,558sharesofClassAcommonstockoutstandingand7,453,515sharesofClassBcommonstockoutstanding.

SHAKE SHACK INC.TABLE OF CONTENTS

Cautionary Note Regarding Forward-Looking Information 1

Part I 2 Item1. FinancialStatements(Unaudited) 2 Item2. Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations 27 Item3. QuantitativeandQualitativeDisclosuresAboutMarketRisk 42 Item4. ControlsandProcedures 42

Part II 43 Item1. LegalProceedings 43 Item1A. RiskFactors 43 Item2. UnregisteredSalesofEquitySecuritiesandUseofProceeds 43 Item3. DefaultsUponSeniorSecurities 43 Item4. MineSafetyDisclosures 43 Item5. OtherInformation 43 Item6. Exhibits 44

SIGNATURES 45

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Cautionary Note Regarding Forward-Looking InformationThisQuarterlyReportonForm10-Q("Form10-Q")containsforward-lookingstatements,withinthemeaningofthePrivateSecuritiesLitigationReformActof1995("PSLRA"),whicharesubjecttoknownandunknownrisks,uncertaintiesandotherimportantfactorsthatmaycauseactualresultstobemateriallydifferent.Allstatementsotherthanstatementsofhistoricalfactareforward-lookingstatements.Manyoftheforward-lookingstatementsarelocatedinPartI,Item2ofthisForm10-Qundertheheading"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations."Forward-lookingstatementsdiscussourcurrentexpectationsandprojectionsrelatingtoourfinancialposition,resultsofoperations,plans,objectives,futureperformanceandbusiness.Youcanidentifyforward-lookingstatementsbythefactthattheydonotrelatestrictlytohistoricalorcurrentfacts.Thesestatementsmayincludewordssuchas"aim,""anticipate,""believe," "estimate," "expect," "forecast," "outlook," "potential," "project," "projection," "plan," "intend," "seek," "may," "could," "would," "will," "should,""can,""canhave,""likely,"thenegativesthereofandothersimilarexpressions.

Whilewebelievethatourassumptionsarereasonable,itisverydifficulttopredicttheimpactofknownfactors,anditisimpossibletoanticipateallfactorsthatcould affect our actual results. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate allforward-lookingstatementsmadeinthisForm10-QinthecontextoftherisksanduncertaintiesdisclosedinPartI,Item1AofourAnnualReportonForm10-KforthefiscalyearendedDecember26,2018filedwiththeU.S.SecuritiesandExchangeCommission(the"SEC")undertheheading"RiskFactors."

The forward-looking statements included in this Form10-Qare made only as of the date hereof. Weundertake no obligation to publicly update or revise anyforward-lookingstatementasaresultofnewinformation,futureeventsorotherwise,exceptasotherwiserequiredbylaw.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

PageCondensedConsolidatedBalanceSheets 3CondensedConsolidatedStatementsofIncome 4CondensedConsolidatedStatementsofComprehensiveIncome 5CondensedConsolidatedStatementofStockholders'Equity 6CondensedConsolidatedStatementsofCashFlows 7NotestoCondensedConsolidatedFinancialStatements 8

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SHAKE SHACK INC.CONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED)(in thousands, except share and per share amounts)

March 27

2019 December 26

2018

ASSETS Currentassets: Cashandcashequivalents $ 31,897 $ 24,750

Marketablesecurities 47,659 62,113

Accountsreceivable 8,862 10,523

Inventories 1,626 1,749

Prepaidexpensesandothercurrentassets 2,312 1,984

Totalcurrentassets 92,356 101,119

Propertyandequipment,net 265,016 261,854

Operatingleaseassets 239,555 —

Deferredincometaxes,net 243,033 242,533

Otherassets 7,008 5,026

TOTAL ASSETS $ 846,968 $ 610,532

LIABILITIES AND STOCKHOLDERS' EQUITY Currentliabilities: Accountspayable $ 12,655 $ 12,467

Accruedexpenses 20,462 22,799

Accruedwagesandrelatedliabilities 7,627 10,652

Operatingleaseliabilities,current 22,280 —

Othercurrentliabilities 16,153 14,030

Totalcurrentliabilities 79,177 59,948

Deemedlandlordfinancing — 20,846

Deferredrent — 47,864

Long-termoperatingleaseliabilities 269,367 —

Liabilitiesundertaxreceivableagreement,netofcurrentportion 199,544 197,921

Otherlong-termliabilities 13,142 10,498

Totalliabilities 561,230 337,077

Commitmentsandcontingencies Stockholders'equity:

Preferredstock,noparvalue—10,000,000sharesauthorized;noneissuedandoutstandingasofMarch27,2019andDecember26,2018. — —

ClassAcommonstock,$0.001parvalue—200,000,000sharesauthorized;29,698,228and29,520,833sharesissuedandoutstandingasofMarch27,2019andDecember26,2018,respectively. 31 30

ClassBcommonstock,$0.001parvalue—35,000,000sharesauthorized;7,453,515and7,557,347sharesissuedandoutstandingasofMarch27,2019andDecember26,2018,respectively. 7 8

Additionalpaid-incapital 199,315 195,633

Retainedearnings 37,086 30,404

Totalstockholders'equityattributabletoShakeShackInc. 236,439 226,075

Non-controllinginterests 49,299 47,380

Totalequity 285,738 273,455

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 846,968 $ 610,532

See accompanying Notes to Condensed Consolidated Financial Statements.

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SHAKE SHACK INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(UNAUDITED)(in thousands, except per share amounts)

Thirteen Weeks Ended

March 27

2019 March 28

2018

Shacksales $ 128,569 $ 96,089

Licensingrevenue 4,040 3,027

TOTAL REVENUE 132,609 99,116

Shack-leveloperatingexpenses: Foodandpapercosts 37,991 26,955

Laborandrelatedexpenses 37,093 26,687

Otheroperatingexpenses 15,568 10,759

Occupancyandrelatedexpenses 10,899 7,675

Generalandadministrativeexpenses 13,937 11,809

Depreciationexpense 8,966 6,498

Pre-openingcosts 2,642 2,029

Lossondisposalofpropertyandequipment 351 190

TOTAL EXPENSES 127,447 92,602

OPERATING INCOME 5,162 6,514

Otherincome,net 564 228

Interestexpense (72) (565)

INCOME BEFORE INCOME TAXES 5,654 6,177

Incometaxexpense 2,047 1,198

NET INCOME 3,607 4,979

Less:netincomeattributabletonon-controllinginterests 1,061 1,471

NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC. $ 2,546 $ 3,508

EarningspershareofClassAcommonstock: Basic $ 0.09 $ 0.13

Diluted $ 0.08 $ 0.13

Weighted-averagesharesofClassAcommonstockoutstanding: Basic 29,563 27,039

Diluted 30,392 27,822

See accompanying Notes to Condensed Consolidated Financial Statements.

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SHAKE SHACK INC.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(UNAUDITED)(in thousands)

Thirteen Weeks Ended

March 27

2019 March 28

2018

Netincome $ 3,607 $ 4,979

Othercomprehensiveincome,netoftax: Available-for-salesecurities(1): Changeinnetunrealizedholdinggains(losses) — (3)

Less:reclassificationadjustmentsfornetrealizedlossesincludedinnetincome — 16

Netchange — 13

OTHER COMPREHENSIVE INCOME — 13

COMPREHENSIVE INCOME 3,607 4,992

Less:comprehensiveincomeattributabletonon-controllinginterest 1,061 1,474

COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAKE SHACK INC. $ 2,546 $ 3,518

(1) Net of tax benefit (expense) of $0 for the thirteen weeks ended March 27, 2019 andMarch 28, 2018 .

See accompanying Notes to Condensed Consolidated Financial Statements.

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SHAKE SHACK INC.CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY(UNAUDITED)(in thousands, except share amounts)

Class ACommon Stock

Class BCommon Stock Additional

Paid-InCapital

RetainedEarnings

AccumulatedOther

ComprehensiveIncome (Loss)

Non-Controlling

Interest

Total

Equity Shares Amount Shares Amount

BALANCE, DECEMBER 26, 2018 29,520,833 $ 30 7,557,347 $ 8 $ 195,633 $ 30,404 $ — $ 47,380 $ 273,455 Cumulativeeffectofaccountingchanges 4,136 1,059 5,195

Netincome 2,546 1,061 3,607

Othercomprehensiveincome: Netchangerelatedtoavailable-for-salesecurities —

Equity-basedcompensation 1,747 1,747

Activityunderstockcompensationplans 73,563 — 975 502 1,477

RedemptionofLLCInterests 103,832 1 (103,832) (1) 594 (594) —

Establishmentofliabilitiesundertaxreceivableagreementandrelatedchangestodeferredtaxassetsassociatedwithincreasesintaxbasis 366 366

Distributionspaidtonon-controllinginterestholders (109) (109)

BALANCE, MARCH 27, 2019 29,698,228 $ 31 7,453,515 $ 7 $ 199,315 $ 37,086 $ — $ 49,299 $ 285,738

Class ACommon Stock

Class BCommon Stock Additional

Paid-InCapital

RetainedEarnings

AccumulatedOther

ComprehensiveIncome (Loss)

Non-Controlling

Interest

Total

Equity Shares Amount Shares Amount

BALANCE, DECEMBER 27, 2017 26,527,477 $ 27 10,250,007 $ 10 $ 153,105 $ 16,399 $ (49) $ 54,987 $ 224,479 Cumulativeeffectofaccountingchanges (1,174) 39 (439) (1,574)

Netincome 3,508 1,471 4,979

Othercomprehensiveincome: Netchangerelatedtoavailable-for-salesecurities 10 3 13

Equity-basedcompensation 1,455 1,455

Activityunderstockcompensationplans 70,305 — 866 610 1,476

RedemptionofLLCInterests 1,029,771 1 (1,029,771) (1) 5,558 (5,558) —

Establishmentofliabilitiesundertaxreceivableagreementandrelatedchangestodeferredtaxassetsassociatedwithincreasesintaxbasis 2,388 2,388

Distributionspaidtonon-controllinginterestholders (83) (83)

BALANCE, MARCH 28, 2018 27,627,553 $ 28 9,220,236 $ 9 $ 163,372 $ 18,733 $ — $ 50,991 $ 233,133

See accompanying Notes to Condensed Consolidated Financial Statements.

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SHAKE SHACK INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)(in thousands)

Thirteen Weeks Ended

March 27 2019 March 28

2018

OPERATING ACTIVITIES Netincome(includingamountsattributabletonon-controllinginterests) $ 3,607 $ 4,979

Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities Depreciationexpense 8,966 6,498

Amortizationofoperatingleaseassets 8,911 —

Equity-basedcompensation 1,692 1,437

Deferredincometaxes 95 (305)

Non-cashinterestexpense — 72

Lossonsaleofmarketablesecurities — 16

Lossondisposalofpropertyandequipment 351 190

Unrealized(gain)lossonavailable-for-salesecurities (157) 38

Othernon-cashexpense 2 —

Netlossonsublease — 672

Changesinoperatingassetsandliabilities: Accountsreceivable 5,976 3,111

Inventories 123 83

Prepaidexpensesandothercurrentassets (474) (110)

Otherassets (2,335) 206

Accountspayable (61) —

Accruedexpenses 880 1,177

Accruedwagesandrelatedliabilities (3,025) (500)

Othercurrentliabilities 963 (528)

Deferredrent — 291

Long-termoperatingleaseliabilities (8,324) —

Otherlong-termliabilities 9 1,806

NET CASH PROVIDED BY OPERATING ACTIVITIES 17,199 19,133

INVESTING ACTIVITIES Purchasesofpropertyandequipment (24,985) (17,718)

Purchasesofmarketablesecurities (389) (277)

Salesofmarketablesecurities 15,000 2,144

NET CASH USED IN INVESTING ACTIVITIES (10,374) (15,851)

FINANCING ACTIVITIES Proceedsfromdeemedlandlordfinancing — 521

Paymentsondeemedlandlordfinancing — (79)

Paymentsonprincipaloffinanceleases (339) —

Distributionspaidtonon-controllinginterestholders (109) (83)

Paymentsundertaxreceivableagreement (707) —

Proceedsfromstockoptionexercises 1,452 1,476

Employeewithholdingtaxesrelatedtonetsettledequityawards 25 —

NET CASH PROVIDED BY FINANCING ACTIVITIES 322 1,835

NET INCREASE IN CASH AND CASH EQUIVALENTS 7,147 5,117

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 24,750 21,507

CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 31,897 $ 26,624

See accompanying Notes to Condensed Consolidated Financial Statements.

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SHAKE SHACK INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(in thousands, except share and per share amounts)

PageNote1 NatureofOperations 9Note2 SummaryofSignificantAccountingPolicies 9Note3 Revenue 10Note4 FairValueMeasurements 11Note5 Inventories 13Note6 PropertyandEquipment 14Note7 SupplementalBalanceSheetInformation 14Note8 Debt 15Note9 Leases 15Note10 Non-ControllingInterests 18Note11 Equity-BasedCompensation 19Note12 IncomeTaxes 20Note13 EarningsPerShare 22Note14 SupplementalCashFlowInformation 23Note15 CommitmentsandContingencies 24Note16 RelatedPartyTransactions 25

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NOTE 1: NATURE OF OPERATIONS

Shake Shack Inc. ("we," "us," "our," "Shake Shack" and the "Company") was formed on September 23, 2014 as a Delaware corporation for the purpose offacilitatinganinitialpublicofferingandotherrelatedtransactionsinordertocarryonthebusinessofSSEHoldings,LLCanditssubsidiaries("SSEHoldings").WearethesolemanagingmemberofSSEHoldingsand,assolemanagingmember,weoperateandcontrolallofthebusinessandaffairsofSSEHoldings.Asaresult,weconsolidatethefinancialresultsofSSEHoldingsandreportanon-controllinginterestrepresentingtheeconomicinterestinSSEHoldingsheldbytheother members of SSE Holdings. As ofMarch27, 2019we owned79.9%of SSEHoldings. Unless the context otherwise requires, "we," "us," "our," "ShakeShack,"the"Company"andothersimilarreferences,refertoShakeShackInc.and,unlessotherwisestated,allofitssubsidiaries,includingSSEHoldings.

WeoperateandlicenseShakeShackrestaurants("Shacks"),whichservehamburgers,hotdogs,chicken,crinkle-cutfries,shakes,frozencustard,beer,wineandmore.AsofMarch27,2019,therewere218Shacksinoperation,system-wide,ofwhich129weredomesticcompany-operatedShacks,15weredomesticlicensedShacksand74wereinternationallicensedShacks.

NOTE 2 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of PresentationThe accompanying unaudited condensed consolidated financial statements include the accounts of Shake Shack Inc. and its subsidiaries. All intercompanyaccountsandtransactionshavebeeneliminatedinconsolidation.TheseinterimcondensedconsolidatedfinancialstatementshavebeenpreparedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica("GAAP")andonabasisconsistentinallmaterialrespectswiththeaccountingpoliciesdescribedinourAnnualReportonForm10-KforthefiscalyearendedDecember26,2018("2018Form10-K").Inouropinion,alladjustments,whicharenormalandrecurringinnature,necessaryforafairpresentationofourfinancialpositionandresultsofoperationhavebeenincluded.Certainreclassificationshavebeenmadetopriorperiodamountstoconformtothecurrentyearpresentation.Operatingresultsforinterimperiodsarenotnecessarilyindicativeoftheresultsthatmaybeexpectedforafullfiscalyear.

TheaccompanyingCondensedConsolidatedBalanceSheetasofDecember26,2018hasbeenderivedfromtheauditedfinancialstatementsatthatdatebutdoesnot include all of the disclosures required by GAAP. These interim condensed consolidated financial statements should be read in conjunction with theconsolidatedfinancialstatementsandrelatednotestheretoincludedinour2018Form10-K.

SSEHoldingsisconsideredavariableinterestentity.ShakeShackInc.istheprimarybeneficiaryaswehavethemajorityeconomicinterestinSSEHoldingsand,asthesolemanagingmember,havedecisionmakingauthoritythatsignificantlyaffectstheeconomicperformanceoftheentity,whilethelimitedpartnershavenosubstantivekick-outorparticipatingrights.Asaresult,weconsolidateSSEHoldings.TheassetsandliabilitiesofSSEHoldingsrepresentsubstantiallyallofourconsolidated assets and liabilities with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement. As ofMarch27, 2019andDecember26,2018,thenetassetsofSSEHoldingswere$246,218and$232,711,respectively.TheassetsofSSEHoldingsaresubjecttocertainrestrictionsinSSEHoldings'revolvingcreditagreements.SeeNote8formoreinformation.

Fiscal YearWeoperateona52/53weekfiscalyearendingonthelastWednesdayinDecember.Fiscal2019contains52weeksandendsonDecember25,2019.Fiscal2018contained52weeksandendedonDecember26,2018.Unlessotherwisestated,referencestoyearsinthisreportrelatetofiscalyears.

Use of EstimatesThe preparation of these condensed consolidated financial statements in conformity with GAAPrequires us to make estimates and assumptions that affect thereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatements,andthereportedamountsofsalesandexpensesduringthereportingperiod.Actualresultscoulddifferfromthoseestimates.

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Recently Adopted Accounting Pronouncements WeadoptedtheAccountingStandardsUpdates(“ASUs”)summarizedbelowinfiscal2019.

AccountingStandards Update(“ASU”) Description

DateAdopted

Leases

(ASU's2016-02,2018-01,2018-10,2018-11)

Thisstandardestablishesanewleaseaccountingmodel,whichintroducestherecognitionofleaseassetsandliabilitiesforthoseleasesclassifiedasoperatingleasesunderpreviousGAAP.Itwasappliedusingamodifiedretrospectiveapproachappliedattheadoptiondatewiththeelectionofvariouspracticalexpedients.

SeeNote9Leasesformoreinformation.

December27,2018

NOTE 3 : REVENUE

Revenue RecognitionRevenueconsists of Shacksales andlicensingrevenue. Generally, revenueis recognizedas promisedgoodsor services transfer to the guest or customer in anamountthatreflectstheconsiderationweexpecttobeentitledinexchangeforthosegoodsorservices.

RevenuefromShacksalesispresentednetofdiscountsandrecognizedwhenfood,beverageandretail productsaresold.SalestaxcollectedfromcustomersisexcludedfromShacksalesandtheobligationisincludedinsalestaxpayableuntilthetaxesareremittedtotheappropriatetaxingauthorities.Revenuefromourgiftcardsisdeferredandrecognizeduponredemption.

Licensingrevenuesincludeinitialterritoryfees,Shackopeningfees,andongoingsales-basedroyaltyfeesfromlicensedShacks.Generally,thelicensesgrantedtodevelop, open and operate each Shack in a specified territory are the predominant goods or services transferred to the licensee in our contracts, and representdistinctperformanceobligations.Ancillarypromisedservices,suchastrainingandassistanceduringtheinitialopeningofaShack,aretypicallycombinedwiththelicensesandconsideredasoneperformanceobligationperShack.Wedeterminethetransactionpriceforeachcontract,whichiscomprisedoftheinitialterritoryfee, and an estimate of the total Shack opening fees we expect to be entitled to. The calculation of total Shack opening fees included in the transaction pricerequiresjudgment,asit isbasedonanestimateofthenumberofShacksweexpectthelicenseetoopen.ThetransactionpriceisthenallocatedequallytoeachShackexpectedtoopen.Theperformanceobligationsaresatisfiedovertime,startingwhenaShackopens,throughtheendofthetermofthelicensegrantedtotheShack.Becausewearetransferringlicensestoaccessourintellectual propertyduringacontractual term,revenueisrecognizedonastraight-linebasisoverthelicenseterm.Generally,paymentfortheinitialterritoryfeeisreceiveduponexecutionofthelicensingagreement,andpaymentfortherestaurantopeningfeesarereceived either in advance of or upon opening the related restaurant. These payments are initially deferred and recognized as revenue as the performanceobligationsaresatisfied,whichoccursoveralong-termperiod.

Revenuefromsales-basedroyaltiesisrecognizedastherelatedsalesoccur.

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RevenuerecognizedduringthethirteenweeksendedMarch27,2019andMarch28,2018,disaggregatedbytypeisasfollows:

Thirteen Weeks Ended

March 27

2019 March 28

2018

Shacksales $ 128,569 $ 96,089

Licensingrevenue: Sales-basedroyalties 3,904 2,972

Initialterritoryandopeningfees 136 55

Total revenue $ 132,609 $ 99,116

Theaggregateamountofthetransactionpriceallocatedtoperformanceobligationsthatareunsatisfied(orpartiallyunsatisfied)asofMarch27,2019is$15,196.Weexpecttorecognizethisamountasrevenueoveralong-termperiod,asthelicensetermforeachShackrangesfrom5to20years.Thisamountexcludesanyvariableconsiderationrelatedtosales-basedroyalties.

Contract BalancesOpeningandclosingbalancesofcontractliabilitiesandreceivablesfromcontractswithcustomersisasfollows:

March 27

2019 December 27

2018

Shacksalesreceivables $ 3,053 $ 2,550

Licensingreceivables 2,348 2,616

Giftcardliability 1,683 1,796

Deferredrevenue,current 352 307

Deferredrevenue,long-term 10,009 10,026

RevenuerecognizedduringthethirteenweeksendedMarch27,2019andMarch28,2018thatwasincludedintheirrespectiveliabilitybalancesatthebeginningoftheperiodisasfollows:

Thirteen Weeks Ended

March 27

2019 March 28

2018

Giftcardliability $ 278 $ 306

Deferredrevenue,current 134 55

NOTE 4 : FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring BasisThefollowingtablespresentinformationaboutourfinancialassetsandliabilitiesmeasuredatfairvalueonarecurringbasisasofMarch27,2019andDecember26,2018,andindicatetheclassificationwithinthefairvaluehierarchy.

Cash, Cash Equivalents and Marketable SecuritiesThefollowingtablessummarizeourcash,cashequivalentsandmarketablesecuritiesbysignificantinvestmentcategoriesasofMarch27,2019andDecember26,2018:

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March 27, 2019

Cost Basis

GrossUnrealized

Gains

GrossUnrealized

Losses Fair Value Cash and Cash

Equivalents Marketable

Securities

Cash $ 26,892 $ — $ — $ 26,892 $ 26,892 $ —

Level1: Moneymarketfunds 5,005 — — 5,005 5,005 —

Mutualfunds 47,624 35 — 47,659 — 47,659

Total $ 79,521 $ 35 $ — $ 79,556 $ 31,897 $ 47,659

December 26, 2018

Cost Basis

GrossUnrealized

Gains

GrossUnrealized

Losses Fair Value

Cash andCash

Equivalents Marketable

Securities

Cash $ 19,746 $ — $ — $ 19,746 $ 19,746 $ —

Level1: Moneymarketfunds 5,004 — — 5,004 5,004 —

Mutualfunds 62,235 — (122) 62,113 — 62,113

Total $ 86,985 $ — $ (122) $ 86,863 $ 24,750 $ 62,113

Netunrealizedgainsonavailable-for-saleequitysecurities totaling$157andnet unrealizedlossestotaling$38wereincludedontheCondensedConsolidatedStatementsofIncomeduringthethirteenweeksendedMarch27,2019andMarch28,2018,respectively.

Asummaryofotherincomefromavailable-for-salesecuritiesrecognizedduringthethirteenweeksendedMarch27,2019andMarch28,2018isasfollows:

Thirteen Weeks Ended

March 27

2019 March 28

2018

Available-for-salesecurities: Dividendincome $ 392 $ 275

Interestincome — 7

Realizedgain(loss)onsaleofinvestments (14) (16)

Unrealizedgain(loss)onavailable-for-saleequitysecurities 157 (38)

Total other income, net $ 535 $ 228

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Asummaryofavailable-for-salesecuritiessoldandgrossrealizedgainsandlossesrecognizedduringthethirteenweeksendedMarch27,2019andMarch28,2018isasfollows:

Thirteen Weeks Ended

March 27

2019 March 28

2018

Available-for-salesecurities: Grossproceedsfromsalesandredemptions $ 15,000 $ 2,144

Costbasisofsalesandredemptions 15,014 2,160

Grossrealizedgainsincludedinnetincome — 2

Grossrealizedlossesincludedinnetincome (14) (18)

Amountsreclassifiedoutofaccumulatedothercomprehensiveloss — 16

Realizedgainsandlossesaredeterminedonaspecificidentificationmethodandareincludedinotherincome,netontheCondensedConsolidatedStatementsofIncome.

Weperiodicallyreviewourmarketablesecuritiesforother-than-temporaryimpairment.Weconsiderfactorssuchastheduration,severityandthereasonforthedecline in value, the potential recovery period and our intent to sell. As ofMarch27, 2019andDecember 26, 2018 , the declines in the market value of ourmarketablesecuritiesinvestmentportfoliowereconsideredtobetemporaryinnature.

Other Financial InstrumentsThecarryingvalueofourotherfinancialinstruments,includingaccountsreceivable,accountspayable,andaccruedexpensesasofMarch27,2019andDecember26,2018approximatedtheirfairvalueduetotheshort-termnatureofthesefinancialinstruments.

Assets and Liabilities Measured at Fair Value on a Non-Recurring BasisAssetsandliabilities thataremeasuredatfair valueonanon-recurringbasisincludeourlong-livedassetsandindefinite-livedintangibleassets. TherewerenoimpairmentsrecognizedduringthethirteenweeksendedMarch27,2019andMarch28,2018.

NOTE 5 : INVENTORIES

InventoriesasofMarch27,2019andDecember26,2018consistedofthefollowing:

March 27

2019 December 26

2018

Food $ 1,187 $ 1,291

Wine 88 83

Beer 98 95

Beverages 198 203

Retailmerchandise 55 77

Inventories $ 1,626 $ 1,749

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NOTE 6 : PROPERTY AND EQUIPMENT

PropertyandequipmentasofMarch27,2019andDecember26,2018consistedofthefollowing:

March 27

2019 December 26

2018

Leaseholdimprovements $ 240,611 $ 228,453

Landlordfundedassets — 15,595

Equipment 44,163 40,716

Furnitureandfixtures 14,704 14,055

Computerequipmentandsoftware 19,597 19,008

Financingequipmentleaseassets 4,840 —

Constructioninprogress(1) 33,252 29,474

Propertyandequipment,gross 357,167 347,301

Less:accumulateddepreciation 92,151 85,447

Property and equipment, net $ 265,016 $ 261,854

(1) Construction in progress as of December 26, 2018 includes landlord funded assets under construction.

NOTE 7 : SUPPLEMENTAL BALANCE SHEET INFORMATION

ThecomponentsofothercurrentliabilitiesasofMarch27,2019andDecember26,2018areasfollows:

March 27

2019 December 26

2018

Salestaxpayable $ 3,481 $ 3,143

Currentportionofliabilitiesundertaxreceivableagreement 5,097 5,804

Giftcardliability 1,683 1,796

Currentportionoffinancingequipmentleaseliabilities 1,821 —

Other 4,071 3,287

Other current liabilities $ 16,153 $ 14,030

Thecomponentsofotherlong-termliabilitiesasofMarch27,2019andDecember26,2018areasfollows:

March 27

2019 December 26

2018

Deferredlicensingrevenue $ 10,009 $ 10,026

Long-termportionoffinancingequipmentleaseliabilities 2,681 —

Other 452 472

Other long-term liabilities $ 13,142 $ 10,498

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NOTE 8 : DEBT

InJanuary2015,weexecutedaThirdAmendedandRestatedCreditAgreement,whichbecameeffectiveonFebruary4,2015(togetherwiththeprioragreementsand amendments, and as further amended, the "Revolving Credit Facility"), which provides for a revolving total commitment amount of $50,000, of which$20,000isavailable immediately. TheRevolvingCredit Facilitywill matureandall amountsoutstandingwill bedueandpayablefiveyearsfromtheeffectivedate.TheRevolvingCreditFacilitypermitstheissuanceoflettersofcredituponourrequestofupto$10,000.BorrowingsundertheRevolvingCreditFacilitybearinterestateither:(i)LIBORplusapercentagerangingfrom2.3%to3.3%or(ii)theprimerateplusapercentagerangingfrom0.0%to0.8%,dependingonthetypeofborrowingmadeundertheRevolvingCreditFacility.AsofMarch27,2019andDecember26,2018,therewerenoamountsoutstandingundertheRevolvingCreditFacility.AsofMarch27,2019,wehad$19,317ofavailabilityundertheRevolvingCreditFacility,aftergivingeffectto$683inoutstandinglettersofcredit.

TheRevolvingCreditFacilityissecuredbyafirst-prioritysecurityinterestinsubstantiallyalloftheassetsofSSEHoldingsandtheguarantors.TheobligationsundertheRevolvingCreditFacilityareguaranteedbyeachofSSEHoldings'wholly-owneddomesticsubsidiaries(withcertainexceptions).

TheRevolvingCreditFacilitycontainsanumberofcovenantsthat,amongotherthings,limitourabilityto,subjecttospecifiedexceptions,incuradditionaldebt;incuradditionalliensandcontingentliabilities;sellordisposeofassets;mergewithoracquireothercompanies;liquidateordissolveourselves;paydividendsormakedistributions;engageinbusinessesthatarenotinarelatedlineofbusiness;makeloans,advancesorguarantees;engageintransactionswithaffiliates;andmakeinvestments.Inaddition,theRevolvingCreditFacilitycontainscertaincross-defaultprovisions.Wearerequiredtomaintainaspecifiedconsolidatedfixed-chargecoverageratioandaspecifiedfundednetdebttoadjustedEBITDAratio,bothasdefinedundertheRevolvingCreditFacility.AsofMarch27,2019,wewereincompliancewithallcovenants.

AsofDecember26,2018wehaddeemedlandlordfinancingliabilitiesof$20,846,forcertainleaseswherewewereinvolvedintheconstructionofleasedassetsandwereconsideredtheaccountingownerof theconstructionproject. Uponadoptionof ASU2016-02,Leases (Topic 842) onDecember27,2018,wearenolonger considered to be the accounting owner of these construction projects and had nodeemed landlord financing liabilities on the Condensed ConsolidatedBalanceSheetsasofMarch27,2019.AsofMarch27,2019wehad$291,647ofoperatingleaseliabilitiesand$4,502offinanceleaseliabilitiesontheCondensedConsolidatedBalanceSheets,refertoNote9Leasesforfurtherdetails.

Totalinterestcostsincurredwere$72and$609forthethirteenweeksendedMarch27,2019andMarch28,2018,respectively.Totalamountscapitalizedintopropertyandequipmentwere$44forthethirteenweeksendedMarch28,2018.NoamountswerecapitalizedintopropertyandequipmentforthethirteenweeksendedMarch27,2019.

NOTE 9 : LEASES

Effect of Standard AdoptionOnDecember27,2018weadoptedASU2016-02,Leases (Topic 842) ,usingamodifiedretrospectiveapproach.WeelectedthepackageofpracticalexpedientspermittedunderthetransitionguidancewithinAccountingStandardsCodificationTopic842("ASC842")which,amongotheritems,allowedustocarryforwardthehistoricalleaseclassifications.Assuch,weappliedthemodifiedretrospectiveapproachasoftheadoptiondatetothoseleasecontractsforwhichwehavetakenpossessionofthepropertyasofDecember26,2018.Aspartofthetransition,wederecognizedalllandlordfundedassetsanddeemedlandlordfinancingliabilitiesasofDecember26,2018anddeterminedtheclassificationaseitheroperatingorfinanceleases.

Inadditiontotheaforementionedpracticalexpedient,wehavealsoelectedto:

• Adopttheshort-termleaseexceptionforleaseswithtermsoftwelvemonthsorlessandaccountforthemasiftheywereoperatingleasesunderASC840;and

• Applythepracticalexpedientofcombiningleaseandnon-leasecomponents.

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ResultsforreportingperiodsbeginningonorafterDecember27,2018arepresentedunderASC842.PriorperiodamountswerenotrevisedandcontinuetobereportedinaccordancewithASCTopic840("ASC840"),theaccountingstandardthenineffect.

Upon transition, on December 27, 2018, we recorded the following increases (decreases) to the respective line items on the Condensed Consolidated BalanceSheet:

Adjustment as of

December 27, 2018

Prepaidexpensesandothercurrentassets $ 6Propertyandequipment,net (11,448)Operatingleaseassets 229,885Deferredincometaxes,net (121)Deemedlandlordfinancing (20,846)Deferredrent (47,862)Long-termoperatingleaseliabilities 277,224Otherlong-termliabilities 4,611Retainedearnings 4,136Non-controllinginterests 1,059

Nature of LeasesWeleaseall of our domestic company-operatedShacks, our HomeOffice andcertain equipment undervariousnon-cancelable leaseagreements that expire onvarious dates through 2035. We evaluate contracts entered into to determine whether the contract involves the use of property or equipment, which is eitherexplicitly or implicitly identified in the contract. We evaluate whether we control the use of the asset, which is determined by assessing whether we obtainsubstantiallyall economicbenefits fromtheuseoftheasset, andwhetherwehavetherighttodirect theuseoftheasset. If thesecriteria aremetandwehaveidentifiedalease,weaccountforthecontractundertherequirementsofASC842.

Uponthepossessionofaleasedasset, wedetermineits classificationasanoperatingorfinancelease. Mostofourreal estate leasesareclassifiedasoperatingleasesandmostofourequipmentleasesareclassifiedasfinanceleases. Generally, ourreal estateleaseshaveinitial termsrangingfrom10to 15yearsandtypicallyincludetwofive-yearrenewaloptions.Renewaloptionsaregenerallynotrecognizedaspartoftheright-of-useassetsandleaseliabilitiesasitisnotreasonablycertainatcommencementdatethatwewouldexercisetheoptionstoextendthelease.Ourrealestateleasestypicallyprovideforfixedminimumrentpaymentsand/orcontingentrentpaymentsbaseduponsalesinexcessofspecifiedthresholds. Whentheachievementofsuchsalesthresholdsaredeemedtobeprobable, contingent rent is accrued in proportion to the sales recognized during the period. For operating leases that include rent holidays and rent escalationclauses,werecognizeleaseexpenseonastraight-linebasisovertheleasetermfromthedatewetakepossessionoftheleasedproperty.Leaseexpenseincurredbefore a Shack opens is recorded in pre-opening costs. Once a domestic company-operated Shack opens, we record the straight-line lease expense and anycontingentrent,ifapplicable,inoccupancyandrelatedexpensesontheConsolidatedStatementsofIncome.Manyofourleasesalsorequireustopayrealestatetaxes, common area maintenance costs and other occupancy costs which are included in occupancy and related expenses on the Consolidated StatementsofIncome.

Asthere were noexplicit rates providedin our leases, weusedour incremental borrowingrate in determiningthe present value of future lease payments. Thediscountrateusedtomeasuretheleaseliabilityatthetransitiondatewasderivedfromtheaverageoftheyieldcurvesobtainedfromusingthenotchingmethodandthe recovery rate method. The most significant assumption in calculating the incremental borrowing rate is our credit rating and subject to judgment. Wedeterminedourcredit ratingbasedonacomparisonofthefinancial informationofSSEHoldingsto800other public companiesandthenusedtheir respectivecreditratingstodevelopourown.

Weexpendcashforleaseholdimprovementstobuildoutandequipourleasedpremises.Generally,aportionoftheleaseholdimprovementsandbuildingcostsarereimbursedbyourlandlordsaslandlordincentivespursuanttoagreed-upontermsinourleaseagreements.Ifobtained,landlordincentivesusuallytaketheformofcash,fullorpartialcreditsagainstourfutureminimumor

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contingentrentsotherwisepayablebyus,oracombinationthereof.Inmostcases,thetenantimprovementallowancesarereceivedafterwetakepossessionoftheproperty,aswemeetrequiredmilestonesduringtheconstructionoftheproperty.TenantimprovementallowancesarerecordedaspartoftheleaseliabilityontheCondensedConsolidatedBalanceSheetandareamortizedonastraight-linebasisovertheleasetermasareductiontooccupancyandrelatedexpenses.

Asummaryoffinanceandoperatingleaseright-of-useassetsandliabilitiesasofMarch27,2019isasfollows:

Classification March 27 2019

Financeleases Propertyandequipment,net $ 4,507

Operatingleases Operatingleaseassets 239,555

Total right-of-use assets $ 244,062

Financeleases OthercurrentliabilitiesOtherlong-termliabilities

$ 4,502

Operatingleases Operatingleaseliabilities,currentLong-termoperatingleaseliabilities

291,647

Total lease liabilities $ 296,149

ThecomponentsofleaseexpenseforthethirteenweeksendedMarch27,2019wereasfollows:

Classification March 27

2019

Financeleasecost: Amortizationofright-of-useassets Depreciationexpense $ 334

Interestonleaseliabilities Interestexpense 41Operatingleasecost Occupancyandrelatedexpenses

GeneralandadministrativeexpensesPre-openingcosts

8,910

Short-termleasecost Occupancyandrelatedexpenses 17Variableleasecost Occupancyandrelatedexpenses

GeneralandadministrativeexpensesPre-openingcosts

3,462

Total lease cost $ 12,764

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AsofMarch27,2019,futureminimumleasepaymentsforfinanceandoperatingleasesconsistedofthefollowing:

Finance Leases Operating Leases

2019 $ 1,340 $ 27,545

2020 1,329 37,837

2021 752 40,170

2022 520 40,830

2023 441 40,695

Thereafter 342 212,290

Totalminimumpayments 4,724 399,367

Less:imputedinterest 222 107,720

Total lease liabilities $ 4,502 $ 291,647

As ofMarch 27, 2019we had additional operating lease commitments of $65,050 for non-cancelable leases without a possession date, which will begin tocommencein2019.Theseleasecommitmentsareconsistentwiththeleasesthatwehaveexecutedthusfarandincludeanumberofrealestatesleaseswhereweareinvolvedintheconstructionanddesign.

AsummaryofleasetermsanddiscountratesforfinanceandoperatingleasesasofMarch27,2019isasfollows:

March 27

2019

Weighted-averageremainingleaseterm(years): Financeleases 5.6

Operatingleases 9.9

Weighted-averagediscountrate: Financeleases 5.3%

Operatingleases 6.0%

SupplementalcashflowinformationrelatedtoleasesasofMarch27,2019isasfollows:

March 27

2019

Cashpaidforamountsincludedinthemeasurementofleaseliabilities: Operatingcashflowsfromfinanceleases $ 41

Operatingcashflowsfromoperatingleases 8,324

Financingcashflowsfromfinanceleases 339

Right-of-useassetsobtainedinexchangeforleaseobligations: Financeleases 230

Operatingleases 14,789

NOTE 10 : NON-CONTROLLING INTERESTS

We are the sole managing member of SSE Holdings and, as a result, consolidate the financial results of SSE Holdings. We report a non-controlling interestrepresentingtheeconomicinterestinSSEHoldingsheldbytheothermembersofSSEHoldings.TheThirdAmendedandRestatedLimitedLiabilityCompanyAgreement,asfurtheramended,(the"LLCAgreement")ofSSEHoldings

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providesthatholdersofLLCInterestsmay,fromtimetotime,requireSSEHoldingstoredeemalloraportionoftheirLLCInterestsfornewly-issuedsharesofClass A common stock on a one-for-one basis. In connection with any redemption or exchange, we will receive a corresponding number of LLC Interests,increasing our total ownership interest in SSE Holdings. Changes in our ownership interest in SSE Holdings while we retain our controlling interest in SSEHoldingswillbeaccountedforasequitytransactions.Assuch,futureredemptionsordirectexchangesofLLCInterestsinSSEHoldingsbytheothermembersofSSEHoldingswillresultinachangeinownershipandreducetheamountrecordedasnon-controllinginterestandincreaseadditionalpaid-incapital.

ThefollowingtablesummarizestheownershipinterestinSSEHoldingsasofMarch27,2019andDecember26,2018.

March 27, 2019 December 26, 2018 LLC Interests Ownership% LLC Interests Ownership %

NumberofLLCInterestsheldbyShakeShackInc. 29,698,228 79.9% 29,520,833 79.6%

NumberofLLCInterestsheldbynon-controllinginterestholders 7,453,515 20.1% 7,557,347 20.4%

TotalLLCInterestsoutstanding 37,151,743 100.0% 37,078,180 100.0%

TheweightedaverageownershippercentagesfortheapplicablereportingperiodsareusedtoattributenetincomeandothercomprehensiveincometoShakeShackInc.andthenon-controllinginterestholders.Thenon-controllinginterestholders'weightedaverageownershippercentageforthethirteenweeksendedMarch27,2019andMarch28,2018was20.3%and26.5%,respectively.

ThefollowingtablesummarizestheeffectsofchangesinownershipofSSEHoldingsonourequityduringthethirteenweeksendedMarch27,2019andMarch28,2018.

Thirteen Weeks Ended

March 27

2019 March 28

2018

NetincomeattributabletoShakeShackInc. $ 2,546 $ 3,508

Othercomprehensiveincome: Netchangerelatedtoavailable-for-salesecurities — 10

Transfers(to)fromnon-controllinginterests: Increaseinadditionalpaid-incapitalasaresultoftheredemptionofLLCInterests 594 5,558

Increaseinadditionalpaid-incapitalasaresultofactivityunderstockcompensationplans 975 866

Total effect of changes in ownership interest on equity attributable to Shake Shack Inc. $ 4,115 $ 9,942

DuringthethirteenweeksendedMarch27,2019andMarch28,2018,anaggregateof103,832and1,029,771LLCInterests,respectively,wereredeemedbynon-controlling interest holders for newly-issuedshares of Class Acommonstock, andwereceived103,832and1,029,771LLCInterests inconnectionwiththeseredemptionsforthethirteenweeksendedMarch27,2019andMarch28,2018,respectively,increasingourtotalownershipinterestinSSEHoldings.

DuringthethirteenweeksendedMarch27,2019andMarch28,2018,wereceivedanaggregateof73,563and70,305LLCInterests,respectively,inconnectionwiththeactivityunderourstockcompensationplan.

NOTE 11 : EQUITY-BASED COMPENSATION

Asummaryofequity-basedcompensationexpenserecognizedduringthethirteenweeksendedMarch27,2019andMarch28,2018isasfollows:

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Thirteen Weeks Ended

March 27

2019 March 28

2018

Stockoptions $ 682 $ 827

Performancestockunits 712 454

Restrictedstockunits 298 156

Equity-based compensation expense $ 1,692 $ 1,437

Total income tax benefit recognized related to equity-based compensation $ 42 $ 38

Equity-basedcompensationexpenseisincludedingeneralandadministrativeexpensesandlaborandrelatedexpensesontheCondensedConsolidatedStatementsofIncomeduringthethirteenweeksendedMarch27,2019andMarch28,2018asfollows:

Thirteen Weeks Ended

March 27

2019 March 28

2018

Generalandadministrativeexpenses $ 1,642 $ 1,400

Laborandrelatedexpenses 50 37

Equity-based compensation expense $ 1,692 $ 1,437

NOTE 12 : INCOME TAXES

WearethesolemanagingmemberofSSEHoldingsand,asaresult,consolidatethefinancialresultsofSSEHoldings.SSEHoldingsistreatedasapartnershipforU.S. federal andmost applicable state andlocal incometaxpurposes. Asa partnership, SSEHoldingsis not subject to U.S. federal andcertain state andlocalincometaxes.AnytaxableincomeorlossgeneratedbySSEHoldingsispassedthroughtoandincludedinthetaxableincomeorlossofitsmembers,includingus,ona pro rata basis. Weare subject to U.S. federal incometaxes, in addition to state andlocal incometaxes with respect to our allocable share of anytaxableincomeorlossof SSEHoldings, aswell asanystand-aloneincomeorloss generatedbyShakeShackInc. Wearealsosubject towithholdingtaxesinforeignjurisdictions.

Income Tax ExpenseAreconciliationofincometaxexpensecomputedattheU.S.federalstatutoryincometaxratetotherecognizedincometaxexpenseisasfollows:

Thirteen Weeks Ended

March 27

2019 March 28

2018ExpectedU.S.federalincometaxesatstatutoryrate $ 1,188 21.0% $ 1,297 21.0%

Stateandlocalincometaxes,netoffederalbenefit 418 7.4% 412 6.7%

Foreignwithholdingtaxes 342 6.0% 531 8.6%

Taxcredits (376) (6.6)% (277) (4.5)%

Non-controllinginterest (323) (5.7)% (454) (7.3)%TaxeffectofchangeinbasisrelatedtotheadoptionofASC842 1,161 20.5% — — —%Changeinvaluationallowance (365) (6.5)% — — —%

Other 2 0.1% (311) (5.0)%

Income tax expense $ 2,047 36.2% $ 1,198 19.4%

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OureffectiveincometaxratesforthethirteenweeksendedMarch27,2019andMarch28,2018were36.2%and19.4%,respectively.TheincreasewasprimarilydrivenbythetaxeffectofachangeintaxbasisrelatingtotheadoptionofASC842onDecember27,2018aswellasanincreaseinourownershipinterestinSSEHoldings,whichincreasesourshareofthetaxableincomeofSSEHoldings.Ourweighted-averageownershipinterestinSSEHoldingswas79.7%and73.5%forthethirteenweeksendedMarch27,2019andMarch28,2018,respectively.

Deferred Tax Assets and LiabilitiesDuringthethirteenweeksendedMarch27,2019,weacquiredanaggregateof177,395LLCInterestsinconnectionwiththeredemptionofLLCInterestsandactivityrelatingtoourstockcompensationplan.Werecognizedadeferredtaxassetintheamountof$1,708associatedwiththebasisdifferenceinourinvestmentinSSEHoldingsuponacquisitionoftheseLLCInterests.AsofMarch27,2019,thetotaldeferredtaxassetrelatedtothebasisdifferenceinourinvestmentinSSEHoldingswas$169,877.However,aportionofthetotalbasisdifferencewillonlyreverseupontheeventualsaleofourinterestinSSEHoldings,whichweexpectwouldresult in a capital loss. AsofMarch27, 2019 , the total valuationallowanceestablishedagainst the deferred taxasset to whichthis portionrelates was$6,010.

DuringthethirteenweeksendedMarch27,2019,wealsorecognized$459ofdeferredtaxassetsrelatedtoadditionaltaxbasisincreasesgeneratedfromexpectedfuturepaymentsundertheTaxReceivableAgreementandrelateddeductionsforimputedinterestonsuchpayments.See"—TaxReceivableAgreement"formoreinformation.

Weevaluatetherealizabilityofourdeferredtaxassetsonaquarterlybasisandestablishvaluationallowanceswhenitismorelikelythannotthatalloraportionofadeferredtaxassetmaynotberealized.AsofMarch27,2019,weconcluded,basedontheweightofallavailablepositiveandnegativeevidence,thatallofourdeferredtaxassets(exceptforthosedeferredtaxassetsdescribedaboverelatingtobasisdifferencesthatareexpectedtoresultinacapitallossupontheeventualsaleofourinterestinSSEHoldings)aremorelikelythannottoberealized.Assuch,noadditionalvaluationallowancewasrecognized.

Uncertain Tax PositionsNouncertaintaxpositionsexistedasofMarch27,2019.ShakeShackInc.wasformedinSeptember2014anddidnotengageinanyoperationspriortotheIPOand related organizational transactions. Shake Shack Inc. first filed tax returns for tax year 2014, which is the first tax year subject to examination by taxingauthoritiesforU.S.federalandstateincometaxpurposes.Additionally,althoughSSEHoldingsistreatedasapartnershipforU.S.federalandstateincometaxespurposes, it is still requiredtofileanannualU.S.ReturnofPartnershipIncome,whichissubject toexaminationbytheInternal RevenueService("IRS"). Thestatuteoflimitationshasexpiredfortaxyearsthrough2014forSSEHoldings.

Tax Receivable AgreementPursuanttoourelectionunderSection754oftheInternalRevenueCode(the"Code"),weexpecttoobtainanincreaseinourshareofthetaxbasisinthenetassetsofSSEHoldingswhenLLCInterestsareredeemedorexchangedbytheothermembersofSSEHoldings.WeplantomakeanelectionunderSection754oftheCodeforeachtaxableyearinwhicharedemptionorexchangeofLLCInterestoccurs.WeintendtotreatanyredemptionsandexchangesofLLCInterestsasdirectpurchasesofLLCInterestsforU.S.federalincometaxpurposes.Theseincreasesintaxbasismayreducetheamountsthatwewouldotherwisepayinthefuturetovarioustaxauthorities.Theymayalsodecreasegains(orincreaselosses)onfuturedispositionsofcertaincapitalassetstotheextenttaxbasisisallocatedtothosecapitalassets.

OnFebruary4,2015,weenteredintoataxreceivableagreementwithcertainofthethen-existingmembersofSSEHoldings(the"TaxReceivableAgreement")that provides for the payment by us of85%of the amount of any tax benefits that we actually realize, or in some cases are deemed to realize, as a result of(i)increasesinourshareofthetaxbasisinthenetassetsofSSEHoldingsresultingfromanyredemptionsorexchangesofLLCInterests,(ii)taxbasisincreasesattributabletopaymentsmadeundertheTaxReceivableAgreement,and(iii)deductionsattributabletoimputedinterestpursuanttotheTaxReceivableAgreement(the"TRAPayments").Weexpecttobenefitfromtheremaining15%ofanytaxbenefitsthatwemayactuallyrealize.TheTRAPaymentsarenotconditioneduponanycontinuedownershipinterestinSSEHoldingsorus.TherightsofeachmemberofSSEHoldings,thatisapartytotheTaxReceivableAgreement,areassignabletotransfereesoftheirrespectiveLLCInterests.

DuringthethirteenweeksendedMarch27,2019,weacquiredanaggregateof103,832LLCInterestsinconnectionwiththeredemptionofLLCInterests,whichresultedinanincreaseinthetaxbasisofourinvestmentinSSEHoldingssubjecttotheprovisionsoftheTaxReceivableAgreement.Werecognizedanadditionalliabilityintheamountof$1,636fortheTRAPaymentsduetothe

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redeemingmembers,representing85%oftheaggregatetaxbenefitsweexpecttorealizefromthetaxbasisincreasesrelatedtotheredemptionofLLCInterests,after concluding it was probable that such TRAPayments would be paid based on our estimates of future taxable income. During the thirteen weeks endedMarch27,2019,paymentsof$707,inclusiveofinterest,weremadetothemembersofSSEHoldingspursuanttotheTaxReceivableAgreement.NopaymentsweremadetothemembersofSSEHoldingspursuanttotheTaxReceivableAgreementduringthethirteenweeksendedMarch28,2018.AsofMarch27,2019,the total amount of TRAPayments due under the TaxReceivable Agreement, was$204,641, of which$5,097was included in other current liabilities on theCondensedConsolidatedBalanceSheet.SeeNote15formoreinformationrelatingtoourliabilitiesundertheTaxReceivableAgreement.

NOTE 13 : EARNINGS PER SHARE

BasicearningspershareofClassAcommonstockiscomputedbydividingnetincomeattributabletoShakeShackInc.bytheweighted-averagenumberofsharesofClassAcommonstockoutstandingduringtheperiod.DilutedearningspershareofClassAcommonstockiscomputedbydividingnetincomeattributabletoShakeShackInc.bytheweighted-averagenumberofsharesofClassAcommonstockoutstandingadjustedtogiveeffecttopotentiallydilutivesecurities.

ThefollowingtablesetsforthreconciliationsofthenumeratorsanddenominatorsusedtocomputebasicanddilutedearningspershareofClassAcommonstockforthethirteenweeksendedMarch27,2019andMarch28,2018.

Thirteen Weeks Ended

March 27

2019 March 28

2018

Numerator: Netincome $ 3,607 $ 4,979

Less:netincomeattributabletonon-controllinginterests 1,061 1,471

NetincomeattributabletoShakeShackInc. $ 2,546 $ 3,508

Denominator: Weighted-averagesharesofClassAcommonstockoutstanding—basic 29,563 27,039

Effectofdilutivesecurities: Stockoptions 731 702

Performancestockunits 76 70

Restrictedstockunits 22 11

Weighted-averagesharesofClassAcommonstockoutstanding—diluted 30,392 27,822

EarningspershareofClassAcommonstock—basic $ 0.09 $ 0.13

EarningspershareofClassAcommonstock—diluted $ 0.08 $ 0.13

Shares of our Class B common stock do not share in the earnings or losses of Shake Shack and are therefore not participating securities. As such, separatepresentationofbasicanddilutedearningspershareofClassBcommonstockunderthetwo-classmethodhasnotbeenpresented.

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ThefollowingtablepresentspotentiallydilutivesecuritiesexcludedfromthecomputationsofdilutedearningspershareofClassAcommonstockforthethirteenweeksendedMarch27,2019andMarch28,2018.

Thirteen Weeks Ended

March 27

2019 March 28

2018 Stock options 3,785 (1) — Performance stock units 69,772 (2) — Shares of Class B common stock 7,453,515 (3) 9,220,236 (3)

(1) Number of securities excluded from the computation of diluted earnings per share of Class A common stock because the exercise price of the stock options exceeded theaverage market price of our Class A common stock during the period ("out-of-the-money").

(2) Excluded from the computation of diluted earnings per share of Class A common stock because the performance conditions associated with these awards were not metassuming the end of the reporting period was the end of the performance period.

(3) Shares of our Class B common stock outstanding as of the end of the period are considered potentially dilutive shares of Class A common stock. Amounts have been excludedfrom the computations of diluted earnings per share of Class A common stock because the effect would have been anti-dilutive under the if-converted and two-classmethods.

NOTE 14 : SUPPLEMENTAL CASH FLOW INFORMATION

ThefollowingtablesetsforthsupplementalcashflowinformationforthethirteenweeksendedMarch27,2019andMarch28,2018:

Thirteen Weeks Ended

March 27

2019 March 28

2018

Cashpaidfor: Incometaxes,netofrefunds $ 617 $ 854

Interest,netofamountscapitalized 72 563

Non-cashinvestingactivities: Accruedpurchasesofpropertyandequipment 15,763 7,302

Capitalizedlandlordassetsforleaseswherewearedeemedtheaccountingowner — 2,327

Capitalizedequity-basedcompensation 27 18

Non-cashfinancingactivities: ClassAcommonstockissuedinconnectionwiththeredemptionofLLCInterests 1 1

CancellationofClassBcommonstockinconnectionwiththeredemptionofLLCInterests (1) (1)

Establishmentofliabilitiesundertaxreceivableagreement 1,636 12,680

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NOTE 15 : COMMITMENTS AND CONTINGENCIES

Lease CommitmentsWeareobligatedundervariousoperatingleasesforShacksandourhomeofficespace,expiringinvariousyearsthrough2035.Undercertainoftheseleases,weareliableforcontingentrentbasedonapercentageofsalesinexcessofspecifiedthresholdsandaretypicallyresponsibleforourproportionateshareofrealestatetaxes,commonareamaintenancechargesandutilities.SeeNote9,Leases.

Assecurityunderthetermsofoneofourleases,weareobligatedunderaletterofcredittotaling$130asofMarch27,2019,whichexpiresinFebruary2026.Inaddition,weenteredintotwoirrevocablestandbylettersofcredit:(i)inDecember2013,weenteredintoaletterofcreditinconjunctionwithourpreviousHomeOfficeleaseintheamountof$80,whichexpiresinSeptember2019and(ii)inSeptember2017,weenteredintoaletterofcreditinconjunctionwithournewHomeOfficeleaseintheamountof$603,whichexpiresinAugust2019andrenewsautomaticallyforone-yearperiodsthroughJanuary31,2034.

Purchase CommitmentsPurchase obligations include legally binding contracts, including commitments for the purchase, construction or remodeling of real estate and facilities, firmminimum commitments for inventory purchases, equipment purchases, marketing-related contracts, software acquisition/license commitments and servicecontracts. Theseobligationsaregenerallyshort-terminnatureandarerecordedasliabilities whentherelatedgoodsarereceivedorservicesrendered. Wealsoenterintolong-term,exclusivecontractswithcertainvendorstosupplyuswithfood,beveragesandpapergoods,obligatingustopurchasespecifiedquantities.

Legal ContingenciesInFebruary2018,aclaimwasfiledagainstShakeShackinCaliforniastatecourtallegingcertainviolationsoftheCaliforniaLaborCode.Atamediationbetweenthe parties, we agreed to settle the matter with the plaintiff and all other California employees who elect to participate in the settlement for $1,200. As ofMarch27,2019,anaccrualintheamountof$1,200wasrecordedforthismatterandrelatedexpenses.

Wearesubjecttovariouslegalproceedings,claimsandliabilities,suchasemployment-relatedclaimsandslipandfallcases,whichariseintheordinarycourseofbusinessandaregenerallycoveredbyinsurance.AsofMarch27,2019,theamountoftheultimateliabilitywithrespecttothesematterswasnotmaterial.

Liabilities under Tax Receivable AgreementAsdescribedinNote12, weareapartytotheTaxReceivableAgreementunderwhichwearecontractuallycommittedtopaycertainofthemembersofSSEHoldings85%oftheamountofanytaxbenefits thatweactuallyrealize, orinsomecasesaredeemedtorealize, asaresult ofcertaintransactions. Wearenotobligatedto makeanypayments under theTaxReceivable Agreement until the taxbenefits associatedwiththe transactions that gaverise to the payments arerealized.AmountspayableundertheTaxReceivableAgreementarecontingentupon,amongotherthings,(i)generationoffuturetaxableincomeoverthetermofthe Tax Receivable Agreement and (ii) future changes in tax laws. If we do not generate sufficient taxable income in the aggregate over the term of the TaxReceivable Agreement to utilize the tax benefits, then we would not be required to make the related TRA Payments. During the thirteen weeks endedMarch27,2019andMarch28,2018,werecognizedliabilitiestotaling$1,636and$12,680,respectively,relatingtoourobligationsundertheTaxReceivableAgreement,afterconcludingthatitwasprobablethatwewouldhavesufficientfuturetaxableincomeoverthetermoftheTaxReceivableAgreementtoutilizetherelatedtaxbenefits. AsofMarch27,2019andDecember26,2018, ourtotal obligationsundertheTaxReceivableAgreement were$204,641and$203,725,respectively.TherewerenotransactionssubjecttotheTaxReceivableAgreementforwhichwedidnotrecognizetherelatedliability,asweconcludedthatwewouldhavesufficientfuturetaxableincometoutilizealloftherelatedtaxbenefits.

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NOTE 16 : RELATED PARTY TRANSACTIONS

Union Square Hospitality GroupTheChairmanofourBoardofDirectorsservesastheChiefExecutiveOfficerofUnionSquareHospitalityGroup,LLC.Asaresult, UnionSquareHospitalityGroup,LLCanditssubsidiaries,setforthbelow,areconsideredrelatedparties.

USHG, LLCEffective January 2015, we entered into an Amended and Restated Management Services Agreement with USHG, LLC("USHG"), in which USHGprovidesreducedmanagementservicestoSSEHoldingscomprisedofexecutiveleadershipfrommembersofitsseniormanagement,advisoryanddevelopmentservicesandlimited leadership development and human resources services. The initial term of the Amended and Restated Management Services Agreement is throughDecember31,2019,withrenewalperiods.

Hudson Yards Sports and EntertainmentInfiscal2011,weenteredintoaMasterLicenseAgreement(asamended,"MLA")withHudsonYardsSportsandEntertainmentLLC("HYSE")tooperateShakeShack branded limited menu concession stands in sports and entertainment venues within the United States. In February 2019, the agreement was assigned toHudsonYardsCatering("HYC"),theparentofHYSE.TheagreementexpiresinJanuary2027andincludesfiveconsecutivefive-yearrenewaloptionsatHYC'soption.Asconsiderationfortheserights,HYCpaysusalicensefeebasedonapercentageofnetfoodsales,asdefinedintheMLA.HYCalsopaysusapercentageofprofitsonsalesofbrandedbeverages,asdefinedintheMLA.

Thirteen Weeks Ended

Classification March 27 2019 March 28

2018

AmountsreceivedfromHYC Licensingrevenue $ 66 $ 47

Classification March 27

2019 December 26

2018

AmountsduefromHYC Prepaidexpensesandothercurrentassets $ 25 $ 37

Madison Square Park ConservancyThe Chairman of our Board of Directors serves as a director of the Madison Square Park Conservancy ("MSP Conservancy"), with which we have a licenseagreementandpaylicensefeestooperateourMadisonSquareParkShack.

Thirteen Weeks Ended

Classification March 27 2019 March 28

2018

AmountspaidtoMSPConservancy Occupancyandrelatedexpenses $ 278 $ 267

Classification March 27

2019 December 26

2018

AmountsduetoMSPConservancy Accruedexpenses $ — $ 70

Share Our StrengthTheChairmanofourBoardofDirectorsservesasadirectorofShareOurStrength,forwhichShakeShackholdsthe"GreatAmericanShakeSale"everyyearduringthemonthofMaytoraisemoneyandawarenessforchildhoodhunger.DuringtheGreatAmericanShakeSale,weencouragegueststodonatemoneytoShareOurStrength'sNoKidHungrycampaigninexchangeforacouponforafreecake-themedshake.AlloftheguestdonationswecollectgodirectlytoShareOurStrength.NoamountshavebeenraisedforthethirteenweeksendedMarch27,2019andMarch28,2018,respectively.

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Mobo Systems, Inc.The Chairman of our Board of Directors serves as a director of MoboSystems, Inc. (also knownas "Olo"), a platformweuse in connection with our mobileorderingapplication.NoamountswereduetoOloasofMarch27,2019andDecember26,2018,respectively.

Thirteen Weeks Ended

Classification March 27 2019 March 28

2018

AmountspaidtoOlo Otheroperatingexpenses $ 38 $ 25

Square, Inc.Our Chief Executive Officer is a member of the Board of Directors of Square, Inc. ("Square").We currently use certain point-of-sale applications, paymentprocessingservices,hardwareandotherenterpriseplatformservicesinconnectionwiththeprocessingofalimitedamountofsalesatcertainofourlocations,salesforcertainoff-siteeventsandinconnectionwithourkiosktechnology.Additionally,wepartneredwithCaviar,Square’sfoodorderingdeliveryservice,toallowgueststoorderShakeShackinselectmarketsaswellasparticipatedinSquare’snewBoostoffers,providingassetsandpermissionforSquaretorunselectofferstotheircashcardusers.NoamountswereduetoSquareasofMarch27,2019andDecember26,2018,respectively.

Thirteen Weeks Ended

Classification March 27 2019 March 28

2018

AmountspaidtoSquare Otheroperatingexpenses $ 266 $ 43

Tax Receivable AgreementAsdescribedinNote12,weenteredintoataxreceivableagreementwithcertainmembersofSSEHoldingsthatprovidesforthepaymentbyusof85%oftheamountoftaxbenefits,ifany,thatShakeShackactuallyrealizesorinsomecasesisdeemedtorealizeasaresultofcertaintransactions.

Thirteen Weeks Ended

Classification March 27 2019 March 28

2018

Amountspaidtomembers(inclusiveofinterest) Othercurrentliabilities $ 707 $ —

Classification March 27

2019 December 26

2018

AmountsdueundertheTaxReceivableAgreement OthercurrentliabilitiesLiabilitiesundertaxreceivableagreement,netofcurrentportion

$ 204,641

$ 203,725

Distributions to Members of SSE HoldingsUnderthetermsoftheSSEHoldingsLLCAgreement,SSEHoldingsisobligatedtomaketaxdistributionstoitsmembers.Notaxdistributionswerepayabletonon-controllinginterestholdersasofMarch27,2019andDecember26,2018,respectively.

Thirteen Weeks Ended

Classification March 27 2019 March 28

2018

Amountspaidtonon-controllinginterestholders Netincomeattributabletonon-controllinginterests $ 109 $ 83

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Item 2. Management's Discussion and Analysis of Financial Conditionand Results of Operations.

This section and other parts of this Quarterly Report on Form 10-Q ("Form 10-Q") contain forward-looking statements, within the meaning of the PrivateSecurities Litigation Reform Act of 1995 ("PSLRA"), which are subject to known and unknown risks, uncertainties and other important factors that may causeactual results to be materially different. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements providecurrent expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact, such asour expected financial outlook for fiscal 2019, expected Shack openings, expected same-Shack sales growth and trends in our business. Forward-lookingstatements can also be identified by words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "intend," "outlook," "plan,""potential," "predict," "project," "seek," "may," "can," "will," "would," "could," "should," the negatives thereof and other similar expressions. Forward-lookingstatements are not guarantees of future performance and actual results may differ significantly from the results discussed in the forward-looking statements. Allforward-looking statements are expressly qualified in their entirety by these cautionary statements. Factors that might cause such differences include, but are notlimited to, those discussed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 26, 2018 (" 2018 Form 10-K") and Part II,Item 1A of this Form 10-Q. The following discussion should be read in conjunction with our 2018 Form 10-K and the condensed consolidated financial statementsand notes thereto included in Part I, Item 1 of this Form 10-Q. All information presented herein is based on our fiscal calendar. Unless otherwise stated,references to particular years, quarters, months or periods refer to our fiscal years and the associated quarters, months and periods of those fiscal years. Weundertake no obligation to revise or update any forward-looking statements for any reason, except as required by law.

OVERVIEW

Shake Shack is a modern day "roadside" burger stand serving a classic American menu of premium burgers, chicken sandwiches, hot dogs, crinkle cut fries,shakes,frozencustard,beerandwine.AsofMarch27,2019,therewere218Shacksinoperation,system-wide,ofwhich129weredomesticcompany-operatedShacks,15weredomesticlicensedShacksand74wereinternationallicensedShacks.

Development Highlights

Duringthequarter,weopenedfivedomesticcompany-operatedShacks,whichincludedourfirstShackinProvidence,RhodeIsland.WeopenedfourinternationallicensedShacks,whichincludedaninternationallicensedShackintheCityofShanghai,ourfirstShacktoopeninmainlandChina.Additionally,weopenedthreedomesticlicensedShacksatDallasFortWorthAirport,PhoenixSkyHarborInternationalAirportandClevelandHopkinsInternationalAirport,furtherexecutingonourgrowthstrategywithinairports.

Financial Highlights for the First Quarter 2019 compared to the First Quarter 2018:

▪ Totalrevenueincreased33.8%to$132.6million.▪ Shacksalesincreased33.8%to$128.6million.▪ Same-Shacksalesincreased3.6%.▪ Shacksystem-widesalesincreased33.5%to$195.2million.▪ Operatingincomewas$5.2million,or3.9%oftotalrevenue,whichincludedtheimpactofcostsassociatedwithProjectConcreteandotherone-timeitems

totaling$0.5million,resultinginadecreaseof20.8%.▪ Shack-leveloperatingprofit*,anon-GAAPmeasure,increased12.5%to$27.0million,or21.0%ofShacksales.▪ Netincomewas$3.6millionandadjustedEBITDA*,anon-GAAPmeasure,increased10.4%to$17.8million.▪ Twelvesystem-wideShackopenings,comprisedoffivedomesticcompany-operatedShacksandsevenlicensedShacks.

* Shack-level operating profit, adjusted EBITDA and adjusted pro forma net income are non-GAAP measures. See "—Non-GAAP Financial Measures" forreconciliations of Shack-level operating profit to operating income, adjusted EBITDA to net income , and adjusted pro forma net income to net incomeattributable to Shake Shack Inc., the most directly comparable financial measures presented in accordance with GAAP.

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Wecontinued to execute our strategic growthplan in 2019andthe firstquarterwas positively impacted by the incremental sales fromthe 34newdomesticcompany-operatedShacksopenedbetweenMarch28,2018andMarch27,2019,partiallyoffsetby:(i)increasedfoodandpapercostsduetoexpensesrelatedtoour promotional launchof Chick'n Bites, higher commodity costs andanincrease in packagingcosts associated with our digital channel growth; (ii) increasedlaborandrelatedexpensesresultingfromongoingincreasesinminimumwages,regulatoryfactors,suchastheFairWorkweeklegislationinNewYorkCity,aswellashigherlaborcostsfromtheShacksthatopenedattheendoffiscal2018,whichtypicallycarryhigherlaborcostsduringthefirstfewmonthsofoperationsandwereexacerbatedwithacompressedopeningschedule;(iii)deliverycommissionspaidaspartofourdigitalgrowth;(iv)impactrelatedtotheadoptionofthenewleaseaccountingstandard;and(v)theadditionofnewShacksatabroaderrangeofaverageunitvolumes.

NetincomeattributabletoShakeShackInc.was$2.5million,or$0.08perdilutedshare,forthefirstquarterof2019,comparedto$3.5million,or$0.13perdiluted share, for the same period last year. On an adjusted pro forma basis, which excludes certain non-recurring and other items and also assumes that alloutstandingLLCInterestswereexchangedforsharesofClassAcommonstockasofthebeginningoftheperiod,wewouldhaverecognizednetincomeof$4.9million,or$0.13perfullyexchangedanddilutedshare,forthefirstquarterof2019comparedto$5.7million,or$0.15perfullyexchangedanddilutedshareforthefirstquarterof2018,adecreaseof12.5%.

FISCAL 2019 OUTLOOK

These forward-looking projections are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to bematerially different. Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A of our Form 10-K for the fiscalyear ended December 26, 2018 under the heading “Risk Factors.” These forward-looking projections should be reviewed in conjunction with the consolidatedfinancial statements and the section titled “Trends in Our Business” which forms the basis of our assumptions used to prepare these forward-looking projections.You should not attribute undue certainty to these projections and we undertake no obligation to revise or update any forward-looking information, except asrequired by law.

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ForthefiscalyearendingDecember25,2019,wehaverevisedourfinancialoutlooktothefollowingwithchangesfromthepreviousoutlookinbold:

Current Outlook Previous Outlook

Totalrevenue(inclusiveoflicensingrevenue) $576 million to $582 million $570millionto$576million

Licensingrevenue $15millionto$16million $15millionto$16million

Same-Shacksalesgrowth(%)(1) 1% to 2% 0%to1%

Domesticcompany-operatedShackopenings 36to40 36to40

LicensedShackopenings,net 16to18 16to18

Averageannualsalesvolumefordomesticcompany-operatedShacks $4.0millionto$4.1million $4.0millionto$4.1million

Shack-leveloperatingprofitmargin(%)(2)(3) 23.0%to24.0% 23.0%to24.0%

Totalgeneralandadministrativeexpenses $66.4millionto$68.2million $66.4millionto$68.2million

Coregeneralandadministrative $56millionto$57million $56millionto$57million

Equity-basedcompensation $7.4millionto$7.7million $7.4millionto$7.7million

One-timecostsrelatedtoProjectConcrete $3.0millionto$3.5million $3.0millionto$3.5million

ProjectConcretecapitalspend approximately$4million approximately$4million

Depreciationexpense $41millionto$42million $41millionto$42million

Pre-openingcosts $13millionto$14million $13millionto$14million

Interestexpense $0.3millionto$0.4million $0.3millionto$0.4million

Adjustedproformaeffectivetaxrate(%)(4) 26.5%to27.5% 26.5%to27.5%(1) Includes approximately 1.5% of menu price increases taken in December 2018.(2) Includes approximately 50 bps of impact from the adoption of the new lease accounting standard.(3) Shack-level operating profit margin is a non-GAAP measure. A reconciliation to the most directly comparable GAAP measure, operating income, has not been provided as we cannot

project certain reconciling items, such as gains or losses on disposal of property and equipment, without unreasonable effort given the uncertainty around the timing and amount of suchlosses or gains. Losses on disposal of property and equipment were less than $1 million for each of the fiscal years 2018, 2017 and 2016.

(4) Adjusted pro forma effective tax rate is a non-GAAP measure. A reconciliation to the most directly comparable GAAP measure, income tax expense, has not been provided as we cannotproject income tax expense without unreasonable effort due to our inability to predict changes in our ownership interest in SSE Holdings resulting from redemptions of LLC Interests bynon-controlling interest holders and equity-based award activity. Income tax expense for fiscal years 2018, 2017 and 2016 was $8.9 million, $151.4 million and $6.4 million, respectively.

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RESULTS OF OPERATIONS

ThefollowingtablesummarizesourresultsofoperationsforthethirteenweeksendedMarch27,2019andMarch28,2018:

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018Shacksales $ 128,569 97.0% $ 96,089 96.9%

Licensingrevenue 4,040 3.0% 3,027 3.1%

TOTAL REVENUE 132,609 100.0% 99,116 100.0%

Shack-leveloperatingexpenses(1): Foodandpapercosts 37,991 29.5% 26,955 28.1%

Laborandrelatedexpenses 37,093 28.9% 26,687 27.8%

Otheroperatingexpenses 15,568 12.1% 10,759 11.2%

Occupancyandrelatedexpenses 10,899 8.5% 7,675 8.0%

Generalandadministrativeexpenses 13,937 10.5% 11,809 11.9%

Depreciationexpense 8,966 6.8% 6,498 6.6%

Pre-openingcosts 2,642 2.0% 2,029 2.0%

Lossondisposalofpropertyandequipment 351 0.3% 190 0.2%

TOTAL EXPENSES 127,447 96.1% 92,602 93.4%

OPERATING INCOME 5,162 3.9% 6,514 6.6%

Otherincome,net 564 0.4% 228 0.2%

Interestexpense (72) (0.1)% (565) (0.6)%

INCOME BEFORE INCOME TAXES 5,654 4.3% 6,177 6.2%

Incometaxexpense 2,047 1.5% 1,198 1.2%

NET INCOME 3,607 2.7% 4,979 5.0%

Less:netlossattributabletonon-controllinginterests 1,061 0.8% 1,471 1.5%

NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC. $ 2,546 1.9% $ 3,508 3.5%

(1) As a percentage of Shack sales.

Shack SalesShacksalesrepresenttheaggregatesalesoffood,beveragesandShakeShackbrandedmerchandiseatourdomesticcompany-operatedShacks.Shacksalesinanyperiodaredirectlyinfluencedbythenumberofoperatingweeksinsuchperiod,thenumberofopenShacksandsame-Shacksales.Same-Shacksalesmeans,foranyreportingperiod,salesforthecomparableShackbase,whichwedefineasthenumberofdomesticcompany-operatedShacksopenfor24fullfiscalmonthsorlonger.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Shacksales $ 128,569 $ 96,089

Percentage of total revenue 97.0% 96.9%

Dollarchangecomparedtoprioryear $ 32,480 Percentagechangecomparedtoprioryear 33.8%

ThegrowthinShacksaleswasdrivenbytheopeningof34newdomesticcompany-operatedShacksbetweenMarch28,2018andMarch27,2019.Same-Shacksalesincreased$2.6million,or3.6%.Theincreaseinsame-Shacksalesconsistedofanincreaseinguesttrafficof1.6%andacombinedincreaseinpriceandsalesmixof2.0%.Forpurposesofcalculatingsame-Shacksalesgrowth,Shacksalesfor66ShackswereincludedinthecomparableShackbase.

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Licensing RevenueLicensingrevenueiscomprisedofsales-basedroyaltyfeesandamortizationofcertainupfrontfees,includingopeningfeesforcertainlicensedShacksandinitialterritoryfeesreceivedfortheexclusiverighttodevelopShacksinaspecificgeographicarea.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Licensingrevenue $ 4,040 $ 3,027

Percentage of total revenue 3.0% 3.1%

Dollarchangecomparedtoprioryear $ 1,013 Percentagechangecomparedtoprioryear 33.5%

Theincreaseinlicensingrevenuewasprimarilydrivenbyanetincreaseof16ShacksopeningbetweenMarch28,2018andMarch27,2019.

Food and Paper CostsFood and paper costs include the direct costs associated with food, beverage and packaging of our menu items. The components of food and paper costs arevariablebynature,changewithsalesvolume,areimpactedbymenumixandaresubjecttoincreasesordecreasesincommoditycosts.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Foodandpapercosts $ 37,991 $ 26,955

Percentage of Shack sales 29.5% 28.1%

Dollarchangecomparedtoprioryear $ 11,036 Percentagechangecomparedtoprioryear 40.9%

TheincreaseinfoodandpapercostsforthethirteenweeksendedMarch27,2019wasprimarilyduetotheopeningof34newdomesticcompany-operatedShacksbetweenMarch28,2018andMarch27,2019.TheincreaseinfoodandpapercostsasapercentageofShacksalesforthethirteenweeksendedMarch27,2019was the result of a number of factors including: (i) increased costs associated with our promotional launch of Chick'n Bites; (ii) higher commodity costs, inparticularbeef;(iii)andanincreaseinpackagingcostsassociatedwithourdigitalchannelgrowth.

Labor and Related ExpensesLaborandrelatedexpensesincludedomesticcompany-operatedShack-levelhourlyandmanagementwages,bonuses,payrolltaxes,equity-basedcompensation,workers’compensationexpenseandmedical benefits. Asweexpectwithothervariableexpenseitems,weexpectlaborcoststogrowasourShacksalesgrow.Factors that influence labor costs include minimumwageandpayroll taxlegislation, health care costs andthe performance of our domestic company-operatedShacks.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Laborandrelatedexpenses $ 37,093 $ 26,687

Percentage of Shack sales 28.9% 27.8%

Dollarchangecomparedtoprioryear $ 10,406 Percentagechangecomparedtoprioryear 39.0%

TheincreaseinlaborandrelatedexpensesforthethirteenweeksendedMarch27,2019wasprimarilyduetotheopeningof34newdomesticcompany-operatedShacksbetweenMarch28,2018andMarch27,2019.AsapercentageofShacksales,the

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increasein labor and related expenses for the thirteen weeksendedMarch27, 2019was primarily due to increased labor and related expenses resulting fromongoing increases in minimumwages and regulatory factors, such as the Fair Workweeklegislation in NewYork City, as well as higher labor costs fromtheShacks that opened at the end of fiscal 2018, which typically carry higher labor costs during the first few months of operations and were exacerbated with acompressedopeningschedule.

Other Operating ExpensesOtheroperatingexpensesconsist ofShack-level marketingexpenses, repairs andmaintenance, utilities andotheroperatingexpensesincidental tooperatingourdomesticcompany-operatedShacks,suchasnon-perishablesupplies,creditcardfees,deliverycommissionsandbusinessinsurance.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Otheroperatingexpenses $ 15,568 $ 10,759

Percentage of Shack sales 12.1% 11.2%

Dollarchangecomparedtoprioryear $ 4,809 Percentagechangecomparedtoprioryear 44.7%

TheincreaseinotheroperatingexpensesforthethirteenweeksendedMarch27,2019wasprimarilyduetotheopeningof34newdomesticcompany-operatedShacks betweenMarch28, 2018andMarch27, 2019 . As a percentage of Shack sales, the increasein other operating expenses for the thirteen weeks endedMarch27,2019wasprimarilyduetodeliverycommissionspaidaspartofourdigitalgrowth.

Occupancy and Related ExpensesOccupancyandrelatedexpensesconsistofShack-leveloccupancyexpenses(includingrent,commonareaexpensesandcertainlocaltaxes),excludingpre-openingcosts,whicharerecordedseparately.WeadoptedthenewleaseaccountingstandardonDecember27,2018,referto"Note9:Leases"underPartI,Item1ofthisForm10-Qforfurtherdetailsontheimpacttooccupancyandrelatedexpenses.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Occupancyandrelatedexpenses $ 10,899 $ 7,675

Percentage of Shack sales 8.5% 8.0%

Dollarchangecomparedtoprioryear $ 3,224 Percentagechangecomparedtoprioryear 42.0%

Theincreaseinoccupancyandrelatedexpensesforthe thirteenweeksendedMarch27,2019wasprimarilyduetotheopeningof34newdomesticcompany-operatedShacksbetweenMarch28,2018andMarch27,2019.AsapercentageofShacksales,theincreaseinoccupancyandrelatedexpensesforthethirteenweeksendedMarch27,2019wasprimarilyduetotheimpactfromthenewaccountingleasestandardadoptedinfiscal2019.

General and Administrative ExpensesGeneralandadministrativeexpensesconsistofcostsassociatedwithHomeOfficeandadministrativefunctionsthatsupportShackdevelopmentandoperations,aswellasequity-basedcompensationexpense.

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Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Generalandadministrativeexpenses $ 13,937 $ 11,809

Percentage of total revenue 10.5% 11.9%

Dollarchangecomparedtoprioryear $ 2,128 Percentagechangecomparedtoprioryear 18.0%

TheincreaseingeneralandadministrativeexpensesforthethirteenweeksendedMarch27,2019wasprimarilyduetoanincreaseininvestmentacrossallareasofourbusinessincludingfoundationalinfrastructureupgradestosupportourongoinggrowthinitiatives, withcostsof$0.5millionrelatedtoProjectConcreteandotherone-timecharges.Asapercentageoftotalrevenue,thedecreaseingeneralandadministrativeexpensesforthethirteenweeksendedMarch27,2019wasprimarilyduetotheincreasedlevelsofShacksales.

Depreciation ExpenseDepreciationexpenseconsistsofthedepreciationoffixedassets,includingleaseholdimprovementsandequipment,aswellasfinancingequipmentleaseassetsbeginninguponthenewleaseaccountingstandardadoptiononDecember27,2018.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Depreciationexpense $ 8,966 $ 6,498

Percentage of total revenue 6.8% 6.6%

Dollarchangecomparedtoprioryear $ 2,468 Percentagechangecomparedtoprioryear 38.0%

TheincreaseindepreciationexpenseforthethirteenweeksendedMarch27,2019wasprimarilyduetoincrementaldepreciationofcapitalexpendituresrelatedtothe opening of 34new domestic company-operated Shacks betweenMarch 28, 2018 andMarch 27, 2019 . As a percentage of total revenue, the increaseindepreciationexpenseforthethirteenweeksendedMarch27,2019wereprimarilyduetotheentryofShacksatvariousvolumesintothesystemandtheimpactofthenewleaseaccountingstandardadoptedinfiscal2019.

Pre-Opening CostsPre-openingcostsconsistprimarilyof:(i)rent;(ii)managers’salaries;(iii)trainingcosts;(iv)employeepayrollandrelatedexpenses;(iv)allcoststorelocateandcompensateShackmanagementteamspriortoanopening;(v)wages,travelandlodgingcostsforouropeningtrainingteamandothersupportteammembers;(vi)marketing costs; (vii) attorney fees; and (viii) permits and licensing. All such costs incurred prior to the opening of a domestic company-operated Shack areexpensedintheperiodinwhichtheexpenseisincurred.Pre-openingcostscanfluctuatesignificantlyfromperiodtoperiod,basedonthenumberandtimingofdomestic company-operated Shack openings and the specific pre-opening costs recognized for each domestic company-operated Shack. Additionally, domesticcompany-operatedShackopeningsinnewgeographicmarketareaswillinitiallyexperiencehigherpre-openingcoststhanourestablishedgeographicmarketareas,suchastheNewYorkCitymetropolitanarea,wherewehavegreatereconomiesofscaleandtypicallyincurlowertravelandlodgingcostsforourtrainingteam.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Pre-openingcosts $ 2,642 $ 2,029

Percentage of total revenue 2.0% 2.0%

Dollarchangecomparedtoprioryear $ 613 Percentagechangecomparedtoprioryear 30.2%

Theincreaseinpre-openingcostsforthethirteenweeksendedMarch27,2019wasduetothetimingandtotalnumberofnewdomesticcompany-operatedShacksexpectedtoopen.

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Loss on Disposal of Property and EquipmentLoss on disposal of property and equipment represents the net book value of assets that have been retired and consists primarily of furniture, equipment andfixturesthatwerereplacedinthenormalcourseofbusiness.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Lossondisposalofpropertyandequipment $ 351 $ 190

Percentage of total revenue 0.3% 0.2%

Dollarchangecomparedtoprioryear $ 161 Percentagechangecomparedtoprioryear 84.7%

ThelossondisposalofpropertyandequipmentforthethirteenweeksendedMarch27,2019andMarch28,2018wasnotmaterial.

Other Income, netOtherincomeconsistsofinterestincome,dividendincome,adjustmentstoliabilitiesunderourtaxreceivableagreementandnetrealizedandunrealizedgainsandlossesfromthesaleofmarketablesecurities.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Otherincome,net $ 564 $ 228

Percentage of total revenue 0.4% 0.2%

Dollarchangecomparedtoprioryear $ 336 Percentagechangecomparedtoprioryear 147.4%

Theincreasein other income, net for the thirteen weeks endedMarch 27, 2019was primarily related to dividend income and unrealized gains related to ourinvestmentsinmarketablesecurities.

Interest ExpenseInterestexpenseprimarilyconsistsofamortizationofdeferredfinancingcosts,imputedinterestondeferredcompensation,interestonthecurrentportionofourliabilitiesundertheTaxReceivableAgreement,interestandfeesonourRevolvingCreditFacility,interestexpenserelatedtofinanceleases,aswellastheimputedinterestonourdeemedlandlordfinancingliabilityforperiodsbeforethenewleaseaccountingstandardadoptedonDecember27,2018.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Interestexpense $ (72) $ (565)

Percentage of total revenue (0.1)% (0.6)%

Dollarchangecomparedtoprioryear $ 493 Percentagechangecomparedtoprioryear (87.3)%

Thedecreaseininterestexpensewasprimarilyduetotheleaseswhereweweredeemedtobetheaccountingownerintheprioryear,butarenolongerconsideredtobeaftertheadoptionofthenewleaseaccountingstandard.

Income Tax ExpenseWearethesolemanagingmemberofSSEHoldings,whichistreatedasapartnershipforU.S.federalandmostapplicablestateandlocalincometaxpurposes.Asa partnership, SSEHoldings is not subject to U.S. federal and certain state and local incometaxes. Anytaxable incomeor loss generated by SSEHoldings ispassedthroughtoandincludedinthetaxableincomeorlossof

Shake Shack Inc. Form10-Q|34

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itsmembers,includingus,onaproratabasis.WearesubjecttoU.S.federalincometaxes,inadditiontostateandlocalincometaxeswithrespecttoourallocableshareofanytaxableincomeorlossgeneratedbySSEHoldings.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Incometaxexpense $ 2,047 $ 1,198

Percentage of total revenue 1.5% 1.2%

Dollarchangecomparedtoprioryear $ 849 Percentagechangecomparedtoprioryear 70.9%

TheincreaseinincometaxexpenseforthethirteenweeksendedMarch27,2019wasprimarilydrivenbytheimpactoftheofthenewleaseaccountingstandardadoptedonDecember27,2018,aswellastheincreaseinourownershipinterestinSSEHoldings.AsourownershipinterestinSSEHoldingsincreases,ourshareofthetaxableincomeofSSEHoldingsalsoincreases.Ourweighted-averageownershipinterestinSSEHoldingsincreasedto79.7%from73.5%forthethirteenweeksendedMarch27,2019andMarch28,2018,respectively.Oureffectiveincometaxrateincreasedto36.2%from19.4%forthethirteenweeksendedMarch27,2019andMarch28,2018,respectively,primarilyduetotheaforementioneditems.

Net Income Attributable to Non-Controlling InterestsWe are the sole managing member of SSE Holdings and have the sole voting power in, and control the management of, SSE Holdings. Accordingly, weconsolidate the financial results of SSEHoldings and report a non-controlling interest on our Condensed Consolidated Statements of Income, representing theportion of net income attributable to the other members of SSE Holdings. The Third Amended and Restated Limited Liability Company Agreement of SSEHoldingsprovidesthatholdersofLLCInterestsmay,fromtimetotime,requireSSEHoldingstoredeemalloraportionoftheirLLCInterestsfornewly-issuedsharesofClassAcommonstockonaone-for-onebasis.Inconnectionwithanyredemptionorexchange,wewillreceiveacorrespondingnumberofLLCInterests,increasingourtotalownershipinterestinSSEHoldings.

Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Netincomeattributabletonon-controllinginterests $ 1,061 $ 1,471

Percentage of total revenue 0.8 % 1.5%

Dollarchangecomparedtoprioryear $ (410) Percentagechangecomparedtoprioryear (27.9)%

Thedecreaseinnet incomeattributable tonon-controllinginterests forthethirteenweeksendedMarch27,2019wasprimarily drivenbyanincrease inourweighted-averageownershipinterest inSSEHoldingsto79.7%from 73.5%forthethirteenweeksendedMarch28,2018asaresultofredemptionsofLLCInterests.

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NON-GAAP FINANCIAL MEASURES

To supplement the consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles(“GAAP”),weusethefollowingnon-GAAPfinancialmeasures:Shack-leveloperatingprofit,Shack-leveloperatingprofitmargin,EBITDA,adjustedEBITDA,adjusted EBITDAmargin, adjusted proformanet incomeandadjusted proformaearnings per fully exchangedanddiluted share (collectively the "non-GAAPfinancialmeasures").

Shack-Level Operating ProfitShack-level operating profit is defined as Shack sales less Shack-level operating expenses including food and paper costs, labor and related expenses, otheroperatingexpensesandoccupancyandrelatedexpenses.

How This Measure Is UsefulWhen used in conjunction with GAAPfinancial measures, Shack-level operating profit and Shack-level operating profit margin are supplemental measures ofoperatingperformancethatwebelieveareusefulmeasurestoevaluatetheperformanceandprofitabilityofourShacks.Additionally,Shack-leveloperatingprofitand Shack-level operating profit margin are key metrics used internally by our management to develop internal budgets and forecasts, as well as assess theperformanceofourShacksrelativetobudgetandagainstpriorperiods.Itisalsousedtoevaluateemployeecompensationasitservesasametricincertainofourperformance-based employee bonus arrangements. We believe presentation of Shack-level operating profit and Shack-level operating profit margin providesinvestorswithasupplementalviewofouroperatingperformancethatcanprovidemeaningfulinsightstotheunderlyingoperatingperformanceofourShacks,asthese measures depict the operating results that are directly impacted by our Shacks and exclude items that may not be indicative of, or are unrelated to, theongoingoperationsofourShacks.Itmayalsoassistinvestorstoevaluateourperformancerelativetopeersofvarioussizesandmaturitiesandprovidesgreatertransparencywithrespecttohowourmanagementevaluatesourbusiness,aswellasourfinancialandoperationaldecision-making.

Limitations of the Usefulness of this MeasureShack-leveloperatingprofitandShack-leveloperatingprofitmarginmaydifferfromsimilarlytitledmeasuresusedbyothercompaniesduetodifferentmethodsofcalculation.PresentationofShack-leveloperatingprofitandShack-leveloperatingprofitmarginisnotintendedtobeconsideredinisolationorasasubstitutefor,orsuperiorto,thefinancialinformationpreparedandpresentedinaccordancewithGAAP.Shack-leveloperatingprofitexcludescertaincosts,suchasgeneralandadministrative expenses and pre-opening costs, which are considered normal, recurring cash operating expenses and are essential to support the operation anddevelopmentofourShacks.Therefore,thismeasuremaynotprovideacompleteunderstandingoftheoperatingresultsofourcompanyasawholeandShack-leveloperating profit and Shack-level operating profit margin should be reviewed in conjunction with our GAAP financial results. A reconciliation of Shack-leveloperatingprofittooperatingincome,themostdirectlycomparableGAAPfinancialmeasure,isasfollows.

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Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Operatingincome $ 5,162 $ 6,514

Less: Licensingrevenue 4,040 3,027

Add: Generalandadministrativeexpenses 13,937 11,809

Depreciationexpense 8,966 6,498

Pre-openingcosts 2,642 2,029

Lossondisposalofpropertyandequipment 351 190

Shack-leveloperatingprofit $ 27,018 $ 24,013

Totalrevenue $ 132,609 $ 99,116

Less:licensingrevenue 4,040 3,027

Shacksales $ 128,569 $ 96,089

Shack-leveloperatingprofitmargin 21.0% 25.0%

EBITDA and Adjusted EBITDAEBITDAis defined as net income before interest expense (net of interest income), income tax expense and depreciation and amortization expense. AdjustedEBITDAis defined as EBITDA(as defined above) excluding equity-based compensation expense, deferred lease costs, losses on the disposal of property andequipment, as well as certain non-recurringitemsthat wedon't believe directly reflect our core operations andmaynot beindicative of our recurringbusinessoperations.

How These Measures Are UsefulWhenusedinconjunctionwithGAAPfinancialmeasures,EBITDAandadjustedEBITDAaresupplementalmeasuresofoperatingperformancethatwebelieveareusefulmeasurestofacilitatecomparisonstohistoricalperformanceandcompetitors'operatingresults.AdjustedEBITDAisakeymetricusedinternallybyourmanagementtodevelopinternalbudgetsandforecastsandalsoservesasametricinourperformance-basedequityincentiveprogramsandcertainofourbonusarrangements. We believe presentation of EBITDA and adjusted EBITDA provides investors with a supplemental view of our operating performance thatfacilitates analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operatingperformance.

Limitations of the Usefulness of These MeasuresEBITDA and adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation ofEBITDAandadjustedEBITDAisnotintendedtobeconsideredinisolationorasasubstitutefor,orsuperiorto,thefinancialinformationpreparedandpresentedin accordance with GAAP.EBITDAandadjusted EBITDAexclude certain normal recurring expenses. Therefore, these measures maynot provide a completeunderstandingofourperformanceandshouldbereviewedinconjunctionwithourGAAPfinancialmeasures.AreconciliationofEBITDAandadjustedEBITDAtonetincome,themostdirectlycomparableGAAPmeasure,isasfollows.

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Thirteen Weeks Ended

(dollar amounts in thousands)March 27

2019 March 28

2018

Netincome $ 3,607 $ 4,979

Depreciationexpense 8,966 6,498

Interestexpense,net 72 558

Incometaxexpense 2,047 1,198

EBITDA 14,692 13,233

Equity-basedcompensation 1,720 1,437

Deferredleasecosts(1) 585 69

Lossondisposalofpropertyandequipment 351 190

Otherincomerelatedtoadjustmentofliabilitiesundertaxreceivableagreement (14) —

Executivetransitioncosts(2) 38 —

Projectconcrete(3) 472 239

CostsrelatedtorelocationofHomeOffice(4) — 998

ADJUSTED EBITDA $ 17,844 $ 16,166

Adjusted EBITDA margin (5) 13.5% 16.3%(1) Reflects the extent to which lease expense is greater than or less than cash lease payments. As a result of adoption of the new lease accounting standard on December 27, 2018, these lease

costs may also include certain additional lease components, such as common area maintenance costs and property taxes, that were previously not included in lease expense for priorperiods.

(2) Represents fees paid in connection with the search for certain of our executive and key management positions.(3) Represents consulting and advisory fees related to our enterprise-wide system upgrade initiative called Project Concrete.(4) Costs incurred in connection with our relocation to a new Home Office.(5) Calculated as a percentage of total revenue.

Adjusted Pro Forma Net Income and Adjusted Pro Forma Earnings Per Fully Exchanged and Diluted ShareAdjusted pro forma net income represents net income attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLCmembershipinterests("LLCInterests")forsharesofClassAcommonstock,adjustedforcertainnon-recurringitemsthatwedon'tbelievedirectlyreflectourcoreoperations andmaynot be indicative of our recurring business operations. Adjusted pro formaearnings per fully exchangedanddiluted share is calculated bydividingadjustedproformanetincomebytheweighted-averagesharesofClassAcommonstockoutstanding,assumingthefullexchangeofalloutstandingLLCInterests,aftergivingeffecttoanydilutivesecuritiessuchasoutstandingequity-basedawards.

How These Measures Are UsefulWhenusedinconjunctionwithGAAPfinancialmeasures,adjustedproformanetincomeandadjustedproformaearningsperfullyexchangedanddilutedshareare supplemental measures of operating performance that we believe are useful measures to evaluate our performance period over period and relative to ourcompetitors. Byassumingthe full exchangeof all outstandingLLCInterests, webelievethesemeasures facilitate comparisons with other companies that havedifferentorganizationalandtaxstructures,aswellascomparisonsperiodoverperiodbecauseiteliminatestheeffectofanychangesinnetincomeattributabletoShake Shack Inc. driven by increases in our ownership of SSEHoldings, which are unrelated to our operating performance, and excludes items that are non-recurringormaynotbeindicativeofourongoingoperatingperformance.

Limitations of the Usefulness of These MeasuresAdjustedproformanetincomeandadjustedproformaearningsperfullyexchangedanddilutedsharearenotnecessarilycomparabletosimilarlytitledmeasuresused by other companies due to different methods of calculation. Presentation of adjusted pro forma net income and adjusted pro forma earnings per fullyexchangedanddilutedshareshouldnotbeconsideredalternativestonet

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incomeandearningspershare,asdeterminedunderGAAP.Whilethesemeasuresareusefulinevaluatingourperformance,itdoesnotaccountfortheearningsattributable to the non-controlling interest holders and therefore does not provide a complete understanding of the net incomeattributable to Shake Shack Inc.AdjustedproformanetincomeandadjustedproformaearningsperfullyexchangedanddilutedshareshouldbeevaluatedinconjunctionwithourGAAPfinancialresults.AreconciliationofadjustedproformanetincometonetincomeattributabletoShakeShackInc.,themostdirectlycomparableGAAPmeasure,andthecomputationofadjustedproformaearningsperfullyexchangedanddilutedsharearesetforthbelow.

Thirteen Weeks Ended

(in thousands, except per share amounts)March 27

2019 March 28

2018

Numerator: NetincomeattributabletoShakeShackInc. $ 2,546 $ 3,508

Adjustments:

Reallocationofnetincomeattributabletonon-controllinginterestsfromtheassumedexchangeofLLCInterests(1) 1,061 1,471

Executivetransitioncosts(2) 38 —

ProjectConcrete(3) 472 239

CostsrelatedtorelocationofHomeOffice(4) — 998

Otherincomerelatedtoadjustmentofliabilitiesundertaxreceivableagreement (14) —

Taxeffectofchangeintaxbasisrelatedtotheadoptionofnewaccountingpronouncements(5) 1,161 (311)

Incometaxexpense(6) (315) (246)

Adjustedproformanetincome $ 4,949 $ 5,659

Denominator: Weighted-averagesharesofClassAcommonstockoutstanding—diluted 30,392 27,822

Adjustments: AssumedexchangeofLLCInterestsforsharesofClassAcommonstock(1) 7,539 9,761

Adjustedproformafullyexchangedweighted-averagesharesofClassAcommonstockoutstanding—diluted 37,931 37,583

Adjustedproformaearningsperfullyexchangedshare—diluted $ 0.13 $ 0.15

Thirteen Weeks Ended

March 27

2019 March 28

2018

EarningspershareofClassAcommonstock-diluted $ 0.08 $ 0.13

AssumedexchangeofLLCInterestsforsharesofClassAcommonstock(1) 0.01 0.01

Non-GAAPadjustments(7) 0.04 0.01

Adjustedproformaearningsperfullyexchangedshare—diluted $ 0.13 $ 0.15(1) Assumes the exchange of all outstanding LLC Interests for shares of Class A common stock, resulting in the elimination of the non-controlling interest and recognition of the net income

attributable to non-controlling interests.(2) Represents costs incurred in connection with our executive search, including fees paid to an executive recruiting firm.(3) Represents consulting and advisory fees related to our enterprise-wide system upgrade initiative called Project Concrete.(4) Costs incurred in connection with our relocation to a new Home Office.(5) Represents tax effect of change in tax basis related to the adoption of the new lease accounting standard for the thirteen weeks ended March 27, 2019 and the revenue recognition standard

for the thirteen weeks ended March 28, 2018 .(6) Represents the tax effect of the aforementioned adjustments and pro forma adjustments to reflect corporate income taxes at assumed effective tax rates of 19.5% and 23.7% for the thirteen

weeks ended March 27, 2019 and March 28, 2018 , respectively.(7) Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation of Adjusted Pro Forma Net Income above for further details.

39|Shake Shack Inc. Form10-Q

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LIQUIDITY AND CAPITAL RESOURCES

Sources and Uses of CashOurprimarysourcesofliquidityarecashfromoperations,cashandcashequivalentsonhand,short-terminvestmentsandavailabilityunderourRevolvingCreditFacility.AsofMarch27,2019,wemaintainedacashandcashequivalentsbalanceof$31.9million,ashort-terminvestmentsbalanceof$47.7millionandhad$19.3millionofavailabilityunderourRevolvingCreditFacility.

Ourprimaryrequirementsforliquidityaretofundourworkingcapitalneeds,operatingandfinanceleaseobligations,capitalexpendituresandgeneralcorporateneeds.Ourrequirementsforworkingcapitalarenotsignificantbecauseourguestspayfortheirfoodandbeveragepurchasesincashorondebitorcreditcardsatthetimeofthesaleandweareabletosellmanyofourinventoryitemsbeforepaymentisduetothesupplierofsuchitems.Ourongoingcapitalexpendituresareprincipally related to opening new Shacks, existing Shack capital investments (both for remodels and maintenance), as well as investments in our corporateinfrastructure.

In addition, we are obligated to make payments to certain members of SSE Holdings under the Tax Receivable Agreement. As of March 27, 2019 , suchobligations totaled$204.6 million . Amounts payable under the Tax Receivable Agreement are contingent upon, among other things, (i) generation of futuretaxableincomeoverthetermoftheTaxReceivableAgreementand(ii)futurechangesintaxlaws.IfwedonotgeneratesufficienttaxableincomeintheaggregateoverthetermoftheTaxReceivableAgreementtoutilizethetaxbenefits,thenwewouldnotberequiredtomaketherelatedTRAPayments.AlthoughtheamountofanypaymentsthatmustbemadeundertheTaxReceivableAgreementmaybesignificant,thetimingofthesepaymentswillvaryandwillgenerallybelimitedtoonepaymentpermemberperyear.Theamountofsuchpaymentsarealsolimitedtotheextentweutilizetherelateddeferredtaxassets.ThepaymentsthatwearerequiredtomakewillgenerallyreducetheamountofoverallcashflowthatmighthaveotherwisebeenavailabletousortoSSEHoldings,butweexpectthecashtaxsavingswewillrealizefromtheutilizationoftherelateddeferredtaxassetstofundtherequiredpayments.

Webelievethatcashprovidedbyoperatingactivities, cashonhandandavailabilityundertheRevolvingCreditFacilitywillbesufficienttofundouroperatingleaseobligations,capitalexpenditures,deemedlandlordfinancingobligationsandworkingcapitalneedsforatleastthenext12monthsandtheforeseeablefuture.

Summary of Cash FlowsThefollowingtablepresentsasummaryofourcashflowsfromoperating,investingandfinancingactivities.

Thirteen Weeks Ended

(in thousands)March 27

2019 March 28

2018

Netcashprovidedbyoperatingactivities $ 17,199 $ 19,133

Netcashusedininvestingactivities (10,374) (15,851)

Netcashprovidedbyfinancingactivities 322 1,835

Increaseincash 7,147 5,117

Cashatbeginningofperiod 24,750 21,507

Cashatendofperiod $ 31,897 $ 26,624

Operating ActivitiesForthethirteenweeksendedMarch27,2019netcashprovidedbyoperatingactivitieswas$17.2millioncomparedto$19.1millionforthethirteenweeksendedMarch28,2018,adecreaseof$1.9million.ThisdecreasewasprimarilydrivenbyadeclineinShack-leveloperatingprofitmarginscombinedwithadditionalspendingoninvestmentsincludingfoundationalinfrastructureupgradestosupportourongoinggrowthinitiatives.

Investing ActivitiesFor the thirteen weeksendedMarch27, 2019net cash used in investing activities was$10.4 million compared to$15.9 million for the thirteen weeks endedMarch28,2018,adecreaseof$5.5million.Thisdecreasewasprimarilyduetoanincreaseof$12.9

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million of proceeds from sales of marketable securities offset by an increase of $7.3 million in capital expenditures, with the opening of 34 new domesticcompany-operatedShacks.

Financing ActivitiesForthethirteenweeksendedMarch27,2019netcashprovidedbyfinancingactivitieswas$0.3millioncomparedto$1.8millionforthethirteenweeksendedMarch28,2018,adecreaseof$1.5million.Thisdecreaseisprimarilyduetoincreasedpaymentsof$0.7millionmadeundertheTaxReceivableAgreementanddistributionstoournon-controllinginterestholdersduringthethirteenweeksendedMarch27,2019,aswellastheimpactfromadoptingthenewleaseaccountingstandard,wherewenolongerreceiveproceedsormakepaymentsrelatedtodeemedlandlordfinancing,aswearenotdeemedtobetheaccountingowner,offsetbypaymentsontheprincipalofourfinancingleases.

Revolving Credit FacilityWemaintainaRevolvingCreditFacilitythatprovidesforarevolvingtotalcommitmentamountof$50.0million,ofwhich$20.0millionisavailableimmediately.The Revolving Credit Facility will mature and all amounts outstanding will be due and payable in February 2020. The Revolving Credit Facility permits theissuance of letters of credit uponour request of upto$10.0million. Borrowings under the RevolvingCredit Facility bear interest at either: (i) LIBORplus apercentagerangingfrom2.3%to3.3%or(ii)theprimerateplusapercentagerangingfrom0.0%to0.8%,dependingonthetypeofborrowingmadeundertheRevolvingCreditFacility.AsofMarch27,2019,therewerenoamountsoutstandingundertheRevolvingCreditFacility.Wehad$19.3millionofavailability,asofMarch27,2019,aftergivingeffectto$0.7millioninoutstandinglettersofcredit.

TheRevolvingCreditFacilityissecuredbyafirst-prioritysecurityinterestinsubstantiallyalloftheassetsofSSEHoldingsandtheguarantors.TheobligationsundertheRevolvingCreditFacilityareguaranteedbyeachofSSEHoldings'wholly-owneddomesticsubsidiaries(withcertainexceptions).

TheRevolvingCreditFacilitycontainsanumberofcovenantsthat,amongotherthings,restrictourabilityto,subjecttospecifiedexceptions,incuradditionaldebt;incuradditionalliensandcontingentliabilities;sellordisposeofassets;mergewithoracquireothercompanies;liquidateordissolveourselves;paydividendsormakedistributions;engageinbusinessesthatarenotinarelatedlineofbusiness;makeloans,advancesorguarantees;engageintransactionswithaffiliates;andmakeinvestments.Inaddition,theRevolvingCreditFacilitycontainscertaincross-defaultprovisions.Wearerequiredtomaintainaspecifiedconsolidatedfixed-chargecoverageratioandaspecifiedfundednetdebttoadjustedEBITDAratio,bothasdefinedundertheRevolvingCreditFacility.AsofMarch27,2019,wewereincompliancewithallcovenants.

CONTRACTUAL OBLIGATIONS

TherehavebeennomaterialchangestothecontractualobligationsasdisclosedinourAnnualReportonForm10-KforthefiscalyearendedDecember26,2018,otherthanthosemadeintheordinarycourseofbusiness.

OFF-BALANCE SHEET ARRANGEMENTS

There have been no other material changes to our off-balance sheet arrangements as disclosed in our Annual Report on Form10-Kfor th e fiscal year endedDecember26,2018.

41|Shake Shack Inc. Form10-Q

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Ourdiscussionandanalysisofourconsolidatedfinancial conditionandresults ofoperationsisbasedupontheaccompanyingcondensedconsolidatedfinancialstatementsandnotesthereto,whichhavebeenpreparedinaccordancewithGAAP.Thepreparationofthecondensedconsolidatedfinancialstatementsrequiresustomakeestimates,judgmentsandassumptions,whichwebelievetobereasonable,basedontheinformationavailable.Theseestimatesandassumptionsaffectthereportedamountsofassets,liabilities,revenuesandexpenses,andrelateddisclosuresofcontingentassetsandliabilities.Variancesintheestimatesorassumptionsusedtoactualexperiencecouldyieldmateriallydifferentaccountingresults. Onanongoingbasis, weevaluatethecontinuedappropriatenessofouraccountingpolicies andresultingestimates tomakeadjustments weconsiderappropriate underthefacts andcircumstances. Therehavebeennosignificant changestoourcriticalaccountingpoliciesasdisclosedinourAnnualReportonForm10-KforthefiscalyearendedDecember26,2018,exceptforthosemadeinconnectionwiththeadoptionofASC842.See"Note9:Leases"underPartI,Item1ofthisForm10-Q.

Recently Issued Accounting Pronouncements

See"Note2:SummaryofSignificantAccountingPolicies—RecentlyIssuedAccountingPronouncements”underPartI,Item1ofthisForm10-Q.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

TherehavebeennomaterialchangestoourexposuretomarketrisksasdescribedinPartII,Item7AofourAnnualReportonForm10-KforthefiscalyearendedDecember26,2018.

Item 4. Controls and Procedures.

DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we conducted anevaluationoftheeffectivenessofourdisclosurecontrolsandprocedures(assuchtermisdefinedinRules13a-15(e)and15d-15(e)undertheExchangeAct)asofthe end of the period covered by this report. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosurecontrolsandprocedureswereeffectiveasofsuchdate.OurdisclosurecontrolsandproceduresaredesignedtoensurethatinformationrequiredtobedisclosedinthereportswefileorsubmitundertheExchangeActisrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedintheSEC'srulesandformsandthatsuchinformationisaccumulatedandcommunicatedtomanagement,includingtheChiefExecutiveOfficerandChiefFinancialOfficer,toallowtimelydecisionsregardingrequireddisclosure.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

TherewerenochangestoourinternalcontroloverfinancialreportingthatoccurredduringthequarterendedMarch27,2019thathavemateriallyaffected,orarereasonablylikelytomateriallyaffect,ourinternalcontroloverfinancialreporting.

Shake Shack Inc. Form10-Q|42

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

TheinformationrequiredbythisItemisincorporatedbyreferencetoPartI,Item1,Note15:CommitmentsandContingencies—LegalContingencies.

Item 1A. Risk Factors.

TherehavebeennomaterialchangeswithrespecttotheriskfactorsdisclosedinourAnnualReportonForm10-KforthefiscalyearendedDecember26,2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Notapplicable.

Item 5. Other Information.

None.

43|Shake Shack Inc. Form10-Q

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Item 6. Exhibits.

ExhibitNumber

Incorporated by Reference FiledHerewith Exhibit Description Form Exhibit Filing Date

3.1

AmendedandRestatedCertificateofIncorporationofShakeShackInc.,effectiveFebruary4,2015

8-K

3.1

2/10/2015

3.2 AmendedandRestatedBylawsofShackShakeInc.,datedFebruary4,2015 8-K 3.2 2/10/2015 4.1 FormofClassACommonStockCertificate S-1/A 4.1 1/28/2015 10.1 AmendmentNo.2totheShakeShackInc.2015IncentiveAwardPlan,datedFebruary5,2019 *

31.1

CertificationofthePrincipalExecutiveOfficerpursuanttoSection302oftheSarbanes-OxleyActof2002

*

31.2

CertificationofthePrincipalFinancialOfficerpursuanttoSection302oftheSarbanes-OxleyActof2002

*

32

CertificationofPrincipalExecutiveOfficerandPrincipalFinancialOfficerpursuantto18U.S.C.Section1350,asadoptedpursuanttoSection906oftheSarbanes-OxleyActof2002

#

101.INS

XBRLInstanceDocument-theinstancedocumentdoesnotappearintheinteractivedatafilebecauseitsXBRLtagsareembeddedwithintheInlineXBRLdocument.

*

101.SCH XBRLTaxonomyExtensionSchemaDocument *

101.CAL XBRLTaxonomyExtensionCalculationLinkbaseDocument *

101.DEF XBRLTaxonomyExtensionDefinitionLinkbaseDocument *

101.LAB XBRLTaxonomyExtensionLabelLinkbaseDocument *

101.PRE XBRLTaxonomyExtensionPresentationLinkbaseDocument *

# Furnished herewith.

Shake Shack Inc. Form10-Q|44

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SIGNATURESPursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,thereuntodulyauthorized.

Shake Shack Inc. (Registrant)

Date:May6,2019 By: /s/RandyGarutti RandyGarutti

ChiefExecutiveOfficer(PrincipalExecutiveOfficerandDulyAuthorizedOfficer)

Date:May6,2019 By: /s/TaraComonte TaraComonte

ChiefFinancialOfficer(PrincipalFinancialOfficerandDulyAuthorizedOfficer)

45|Shake Shack Inc. Form10-Q

Exhibit 10.1

AMENDMENT NO. 2 TO SHAKE SHACK INC.2015 INCENTIVE AWARD PLAN

ThisAMENDMENTNO.2TO2015INCENTIVEAWARDPLAN,datedandeffectiveasofFebruary5,2019(this“Amendment”),isenteredintobythe Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of Shake Shack Inc., a Delaware corporation (the “Company”). Allcapitalizedtermsdefinedhereinbutnotusedhereinshallhavethemeaningsasascribedtosuchtermsinthe2015IncentivePlan(asdefinedbelow).

WITNESSETH:

WHEREAS,onJanuary 29, 2015, the Boardandits stockholders approvedthe ShakeShackInc. 2015Incentive AwardPlan (as amended, the “2015IncentivePlan”),whichprovidesfor,amongotherthings,thegrant,atthediscretionoftheCommittee(asAdministrator),ofAwardstocertaineligibleindividualsuponthetermsandsubjecttotheprovisionsofthe2015IncentivePlan;

WHEREAS,pursuanttoSection14.1ofthe2015IncentivePlan,the2015IncentivePlanmaybepartiallyamendedbytheCommittee;

WHEREAS,onApril26,2016,theCommitteeamendedthe2015IncentivePlan;and

WHEREAS,theCommitteedesirestofurtheramendedthe2015IncentivePlan.

NOW,THEREFORE,theCommitteeherebyamendsthe2015IncentivePlanasfollows:

A.Section2.41ofthe2015IncentivePlanisherebyamendedandrestatedinitsentiretyasfollows(withemphasisonaddedordeletedterms):

“2.41“PerformanceCriteria”shallmeanthecriteria(andadjustments)thattheCommitteeselectsforanAwardforpurposesofestablishingthePerformanceGoalorPerformanceGoalsforaPerformancePeriod,determinedasfollows:

(a)ThePerformanceCriteriathatshallbeusedtoestablishPerformanceGoalsarelimitedtothefollowing:(i)netearningsorlosses(eitherbeforeorafteroneormoreofthefollowing:(A)interest,(B)taxes,(C)depreciation,(D)amortization; and(E)rent); and (F) bonuses and related employerpayroll taxes on such bonuses ;(ii)grossornetsalesorrevenue;(iii)revenuegrowthorproductrevenuegrowth;(iv)netincome(eitherbeforeoraftertaxes);(v)same-storesales;(vi)operatingearningsorprofit(eitherbeforeorafteroneormoreofthefollowing:(A)generalandadministrativeexpenses,(B)depreciation,(C) pre-opening costs, (D) loss on disposal of property and equipment, (E) occupancy and related expenses ; and(F) utilities ; and (G) bonuses and relatedemployer payroll taxes on such bonuses );(vii)cashflow(including,butnotlimitedto,operatingcashflowandfreecashflow);(viii)returnonassetsornetassets;(ix)returnoncapitalandcostofcapital;(x)returnonstockholders’equity;(xi)totalstockholderreturn;(xii)returnonsales;(xiii)grossornetprofitoroperatingmargin;(xiv)costs,reductionsincostsandcostcontrolmeasures;(xv)fundsfromoperationsorfundsavailablefordistributions;(xvi)expenses;(xvii)workingcapital;(xviii)earningsorlosspershare;(xix)adjustedproformaearningsorlosspershare;(xx)pricepershareofCommonStockorappreciationinand/or maintenance of such price; (xxi) economic value added models or similar metrics; (xxii) regulatory achievements or compliance (including, withoutlimitation, regulatory bodyapproval for commercializationof a product); (xxiii) implementationor completionof critical projects or processes; (xxiv) sales ormarket share; (xxv) licensing revenue; (xxvi) brand recognition/acceptance, (xxvii) inventory turns or cycle time and supply chain achievements (including,without limitation, establishing relationships with manufacturers or suppliers of component materials and manufacturers of the Company’s products), (xxviii)strategic initiatives (including, without limitation, with respect to market penetration, geographic business expansion, manufacturing, commercialization,productionandproductivity,customersatisfactionandgrowth,employeesatisfaction,recruitmentandmaintenanceofpersonnel,humanresourcesmanagement,supervisionoflitigationandotherlegalmatters,informationtechnology,strategicpartnershipsandtransactions(includingacquisitions,dispositions,jointventures,in-licensingandoutlicensingofintellectualproperty,andestablishmentofrelationshipswithcommercialentitieswithrespecttothemarketing,distributionandsaleofCompanyproducts,andfactoringtransactions,researchanddevelopmentandrelatedactivity,andfinancialorothercapitalraisingtransactions);(xxix)newor existing store results and operations and new store openings; and (xxx) financial ratios (including, without limitation, those measuring liquidity, activity,profitabilityorleverage),anyofwhichmaybemeasuredeitherinabsolutetermsorascomparedtoanyincrementalincreaseordecreaseorascomparedtoresultsofapeergrouportomarketperformanceindicatorsorindices.PerformanceCriteriashallbecalculatedinaccordancewiththeCompany’sfinancialstatementsorgenerallyacceptedaccountingprinciples,onanoperatingbasis,orunderamethodologyestablishedbytheCommitteepriortotheissuanceofanAwardthatisconsistentlyappliedandidentified.

(b)TheAdministrator,initssolediscretion,mayprovidethatoneormoreobjectivelydeterminableadjustmentsshallbemadetooneormoreofthePerformanceGoals.Suchadjustmentsmayincludeoneormoreofthefollowing:(i)itemsrelatedtoachangeinaccountingprinciple;(ii)itemsrelatingtofinancingactivities;(iii)expensesforrestructuringorproductivityinitiatives;(iv)othernon-operating

items;(v)itemsrelatedtoacquisitions;(vi)itemsattributabletothebusinessoperationsofanyentityacquiredbytheCompanyduringthePerformancePeriod;(vii) items related to the disposal of a business or segment of a business; (viii) items related to discontinued operations that do not qualify as a segment of abusinessunderApplicableAccountingStandards;(ix)itemsattributabletoanystockdividend,stocksplit,combinationorexchangeofstockoccurringduringthePerformancePeriod;(x)anyotheritemsofsignificantincomeorexpensewhicharedeterminedtobeappropriateadjustments(includingcertainnon-cashandotheritems not considered in the Company’s evaluation of ongoing operating performance, including equity-based compensation expense, non-cash deferred rentchargesandcertain non-recurringcharges); (xi) itemsrelatingtounusual or extraordinary corporate transactions, events or developments, (xii) itemsrelatedtoamortization of acquired intangible assets; (xiii) items that are outside the scope of the Company’s core, on-going business activities; (xiv) items related toacquiredin-processresearchanddevelopment;(xv)itemsrelatingtochangesintaxlaws;(xvi)itemsrelatingtomajorlicensingorpartnershiparrangements;(xvii)itemsrelatingtoassetimpairmentcharges;(xviii)itemsrelatingtogainsorlossesforlitigation,arbitrationandcontractualsettlements;or(xix)itemsrelatingtoany other unusual or nonrecurring events or changes in Applicable Law, accounting principles or business conditions. For all Awards intended to qualify asPerformance-Based Compensation, suchdeterminations shall be madewithin the timeprescribed by, andotherwise in compliance with, Section 162(m)of theCode.”

B.AsherebyamendedbythisAmendment,the2015IncentivePlanremainsinfullforceandeffect.

IN WITNESS WHEREOF, each of the undersigned members of the Compensation Committee of the Board of Directors of Shake Shack Inc. has signed thisAmendmentNo.2to2015IncentiveAwardPlanasofthedatefirstabovewritten.

/s/BertVivian Name:BertVivian Title:Chair,CompensationCommittee

/s/AnnaFieler Name:AnnaFieler Title:CompensationCommittee

/s/JennaLyons Name:JennaLyons Title:CompensationCommittee

/s/JonathanD.Sokoloff Name:JonathanD.Sokoloff Title:CompensationCommittee

Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I,RandyGarutti,certifythat:

1. IhavereviewedthisQuarterlyReportonForm10-QforthequarterlyperiodendedMarch27,2019ofShakeShackInc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4. Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for theregistrantandhave:

(a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethat material informationrelatingtotheregistrant, includingits consolidatedsubsidiaries, is madeknowntousbyothers withinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about theeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

(d) Disclosedinthisreportanychangeintheregistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant’smostrecentfiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely tomateriallyaffect,theregistrant’sinternalcontroloverfinancialreporting;and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’sauditorsandtheauditcommitteeoftheregistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

(a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant’sabilitytorecord,process,summarizeandreportfinancialinformation;and

(b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant’sinternalcontroloverfinancialreporting.

Date:May6,2019 /s/RandyGarutti RandyGarutti

ChiefExecutiveOfficer

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I,TaraComonte,certifythat:

1. IhavereviewedthisQuarterlyReportonForm10-QforthequarterlyperiodendedMarch27,2019ofShakeShackInc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4. Theregistrant'sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for theregistrantandhave:

(a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethat material informationrelatingtotheregistrant, includingits consolidatedsubsidiaries, is madeknowntousbyothers withinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about theeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

(d) Disclosedinthisreportanychangeintheregistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant’smostrecentfiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely tomateriallyaffect,theregistrant’sinternalcontroloverfinancialreporting;and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’sauditorsandtheauditcommitteeoftheregistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

(a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant’sabilitytorecord,process,summarizeandreportfinancialinformation;and

(b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant’sinternalcontroloverfinancialreporting.

Date:May6,2019 /s/TaraComonte TaraComonte

ChiefFinancialOfficer

Exhibit 32

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

InconnectionwiththeQuarterlyReportonForm10-QofShakeShackInc.(the“Company”),forthequarterlyperiodendedMarch27,2019,asfiledwiththeSecuritiesandExchangeCommissiononthedatehereof(the“Report”),eachoftheundersignedofficersoftheCompanycertifiespursuantto18U.S.C.Section1350,asadoptedpursuanttoSection906oftheSarbanes-OxleyActof2002,that:

1. TheReportfullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934;and2. TheinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheCompany.

Date:May6,2019 /s/RandyGarutti RandyGarutti ChiefExecutiveOfficer

Date:May6,2019 /s/TaraComonte TaraComonte ChiefFinancialOfficer