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INCOME TAXES
 6 Months Ended
Jul. 01, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Shake Shack is the sole managing member of SSE Holdings, which is classified as a partnership for U.S federal and most applicable state and local income tax purposes. As the managing member, the Company consolidates SSE Holdings financial results. As a partnership, SSE Holdings is not subject to U.S. federal and certain state and local income taxes. Instead, any taxable income or loss generated by SSE Holdings is allocated to its members, including the Company, on a pro rata basis. The Company is subject to U.S. federal, state and local income taxes with respect to its allocable share of taxable income or loss from SSE Holdings, as well as any stand-alone income or loss generated by Shake Shack Inc. The Company is also subject to withholding taxes in foreign jurisdictions.
Effective Income Tax Rates
The following table presents the Company’s effective income tax rates:

Thirteen Weeks EndedTwenty-Six Weeks Ended
July 1
2026		June 25
2025		July 1
2026		June 25
2025
Effective income tax rates25.9 %25.1 %25.8 %23.2 %
The increases in the effective income tax rates for the thirteen and twenty-six weeks ended July 1, 2026 were primarily driven by a decrease in forecasted pre-tax income compared to the prior year, including the effects of nondeductible tax items and a nonrecurring deferred tax adjustment recognized in the prior-year period.
The Company's weighted average ownership interest in SSE Holdings was as follows:
Thirteen Weeks EndedTwenty-Six Weeks Ended
July 1
2026		June 25
2025		July 1
2026		June 25
2025
Shake Shack's weighted average ownership percentages
94.3 %94.3 %94.3 %94.3 %
Deferred Tax Assets and Liabilities
The Company acquires LLC Interests in connection with the redemption of LLC Interests and activity relating to its stock compensation plan and recognizes deferred tax assets associated with the basis difference in its investment in SSE Holdings upon acquisition of these LLC Interests.
The following table summarizes the LLC Interests acquired by the Company:
Thirteen Weeks EndedTwenty-Six Weeks Ended
July 1
2026		June 25
2025		July 1
2026		June 25
2025
LLC Interests activity under the Company's stock compensation plan15,305 17,320 107,179 159,989 
LLC Interests activity from redemptions of LLC Interests5,000 5,000 9,000 15,924 
Total LLC Interests acquired by the Company
20,305 22,320 116,179 175,913 
Deferred tax assets related to the basis difference in the Company's investment in SSE Holdings were as follows:
Thirteen Weeks EndedTwenty-Six Weeks Ended
July 1
2026		June 25
2025		July 1
2026		June 25
2025
Deferred tax assets recognized upon acquisition of LLC Interests
$(633)$(541)$541 $2,817 
July 1
2026		December 31
2025
Total deferred tax assets related to the acquisition of LLC Interests
$85,260 $74,094 
The Company also recognizes deferred tax assets related to additional tax basis increases generated from expected future payments under the Tax Receivable Agreement and related deductions for imputed interest on such payments. Refer to "Tax Receivable Agreement," herein for additional information.
Thirteen Weeks EndedTwenty-Six Weeks Ended
July 1
2026		June 25
2025		July 1
2026		June 25
2025
Deferred tax assets recognized under the Tax Receivable Agreement
$27 $55 $58 $168 
The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized. As of July 1, 2026, the Company concluded, based on the weight of all available positive and negative evidence, that all of its deferred tax assets (except for those deferred tax assets relating to certain state tax credits and net operating losses) are more likely than not to be realized. As such, no additional valuation allowance was recognized.
One Big Beautiful Bill Act
On July 4, 2025, bill H.R. 1, commonly referred to as the "One Big Beautiful Bill Act" or "OBBBA," was signed into law, with certain provisions effective in 2025 and others in 2026. The Act provides for changes to U.S. federal tax law, including the expensing of U.S. research expenditures and certain eligible capital expenditures, among other provisions. The Company has recognized the effects of the OBBBA provisions in its financial results to the extent they are applicable to the twenty-six weeks ended July 1, 2026.
Tax Receivable Agreement
On February 4, 2015, the Company entered into a tax receivable agreement with certain then-existing non-controlling members of SSE Holdings (the "Tax Receivable Agreement"). This agreement obligates the Company to pay the non-controlling interest holders 85% of any tax benefits that the Company may actually realize, or be deemed to realize, from (i) increases in the Company's share of the tax basis of SSE Holdings due to redemptions or exchanges of LLC Interests, (ii) tax basis increases
resulting from payments made under the Tax Receivable Agreement, and (iii) deductions from imputed interest under the agreement (the "TRA Payments"). The Company expects to benefit from the remaining 15% of any realized tax benefits. The TRA Payments are not conditioned upon any continued ownership interest in SSE Holdings or us. Additionally, the rights of each non-controlling interest holder under the Tax Receivable Agreement, are assignable to transferees of its LLC Interests.
Pursuant to the Company's election under Section 754 of the Internal Revenue Code (the "Code"), the Company expects to obtain an increase in its share of the tax basis in the net assets of SSE Holdings when LLC Interests are redeemed or exchanged by the other members of SSE Holdings. The Company plans to make an election under Section 754 of the Code for each taxable year in which a redemption or exchange of LLC Interest occurs. The Company intends to treat any redemptions and exchanges of LLC Interests as direct purchases of LLC Interests for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that would otherwise be paid in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.
There were no transactions subject to the Tax Receivable Agreement for which the Company did not recognize the related liability, as the Company concluded that it would have sufficient future taxable income to utilize all of the related tax benefits generated by all transactions that occurred during the twenty-six weeks ended July 1, 2026 and June 25, 2025.
A summary of obligations and payments made under the Tax Receivable Agreement were as follows:

Thirteen Weeks EndedTwenty-Six Weeks Ended
July 1
2026		June 25
2025		July 1
2026		June 25
2025
Amounts paid under the Tax Receivable Agreement, including interest
$— $— $977 $24 
Thirteen Weeks EndedTwenty-Six Weeks Ended
July 1
2026		June 25
2025		July 1
2026		June 25
2025
Additional liabilities recognized under the Tax Receivable Agreement
$101 $204 $251 $608 
July 1
2026		December 31
2025
Total obligations under the Tax Receivable Agreement
$246,109 $246,835