What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2021-02-26 compared with 2020-02-24 · 33 added, 9 removed, 74 unchanged (36% of the section changed)

16 unchanged sentences

STOCK PERFORMANCE GRAPH

The following graph and table illustrate the total return from January 30, 2015 through December 25, 2019 for (i) our Class A common stock, (ii) the Standard and Poor's 500 Index, and (iii) the Standard and Poor’s 600 Restaurants Index, assuming an investment of $100 on January 30, 2015 including the reinvestment of dividends.

The following graph and table illustrate the total return from December 30, 2015 through December 30, 2020 for (i) our Class A common stock, (ii) the Standard and Poor's 500 Index, and (iii) the Standard and Poor’s 600 Restaurants Index, assuming an investment of $100 on December 30, 2015 including the reinvestment of dividends.

Comparison of 5 Year Cumulative Total Return

12/30/2015 12/28/2016 12/27/2017 12/26/2018 12/25/2019 12/30/2020

Shake Shack Inc.

$ 100.00 $ 92.17 $ 110.96 $ 108.13 $ 150.02 $ 212.36

S&P 500 Index 100.00 111.96 136.40 130.42 171.49 203.04

5 unchanged sentences

(dollar amounts in thousands, except per share amounts) 2020 1

2019 2018 2017 2016

Selected statement of income data:

Shack sales $ 506,339 $ 574,625 $ 445,589 $ 346,388 $ 259,350

Licensing revenue (2)

16,528 19,894 13,721 12,422 9,125

Shack-level operating expenses 434,961 446,607 332,683 254,079 186,058

1 unchanged sentence

Pre-opening costs 8,580 14,834 12,279 9,603 9,520

Operating income

Operating income (loss) (43,876) 25,685 31,711 33,813 27,805

Net income (loss) (45,534) 24,128 21,948 8,884 22,146

Net income (loss) attributable to Shake Shack Inc.

(42,158) 19,827 15,179 (320) 12,446

Per share data:

5 unchanged sentences

Total current assets 203,186 87,675 101,119 93,199 83,944

Total assets 1,145,348 968,268 610,532 470,606 538,194

Total current liabilities 109,705 99,392 59,948 34,024 31,716

Total debt — — 20,846 14,518 2,007

Total liabilities 710,855 646,283 337,077 246,127 336,841

Total equity 434,493 321,985 273,455 224,479 201,353

Selected cash flow data:

5 unchanged sentences

(dollar amounts in thousands) 2020 1

2019 2018 2017 2016

Selected operating data:

System-wide sales (2)

Shack system-wide sales (3)

$ 778,861 $ 895,288 $ 671,926 $ 532,137 $ 402,791

Same-Shack sales % (4)

(27.8) % 1.3 % 1.0 % (1.2) % 4.2 %

Shacks in the comparable base 114 85 61 43 29

5 unchanged sentences

Shack-level operating profit (7)

$ 71,378 $ 128,018 $ 112,906 $ 92,309 $ 73,292

Shack-level operating profit margin (7)

14.1 % 22.3 % 25.3 % 26.6 % 28.3 %

Adjusted EBITDA (8)

$ 22,739 $ 81,840 $ 73,850 $ 64,664 $ 50,234

Adjusted EBITDA margin (8)

4.3 % 13.8 % 16.1 % 18.0 % 18.7 %

Shack counts (at end of period):

System-wide 311 275 208 159 114

Domestic Company-operated 183 163 124 90 64

1 unchanged sentence

International licensed 106 90 72 59 43

On December 28, 2017 we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606).

(1) We operate on a 52/53 week fiscal year that ends on the last Wednesday of the calendar year.

Fiscal year 2020 was a 53-week year with the extra operating week (the " 53rd week ") falling in our fiscal fourth quarter.

Fiscal 2019, fiscal 2018, fiscal 2017 and fiscal 2016 each contained 52 weeks.

(2) On December 28, 2017 we adopted Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606).

Results for reporting periods beginning on or after December 28, 2017 are presented under Accounting Standards Codification Topic 606 ("ASC 606").

Prior period amounts were not revised and continue to be reported in accordance with ASC Topic 605 ("ASC 605"), the accounting standard then in effect.

See Note 3 to the consolidated financial statements for more information.

System-wide sales consists of sales from our domestic company-operated Shacks, our domestic licensed Shacks and our international licensed Shacks.

Prior period amounts were not revised and continue to be reported in accordance with Accounting Standards Codification Topic 605 ("ASC 605"), the accounting standard then in effect.

See Note 3, Revenue, to the consolidated financial statements for more information.

(3) Shack system-wide sales is an operating measure and consists of sales from our domestic Company-operated Shacks, domestic licensed Shacks and our international licensed Shacks.

We do not recognize the sales from our licensed Shacks as revenue.

Of these amounts, our revenue is limited to Shack sales from domestic company-operated Shacks and licensing revenue based on a percentage of sales from domestic and international licensed Shacks, as well as amortization of certain up-front fees such as territory fees and opening fees.

Of these amounts, our revenue is limited to Shack sales from domestic Company-operated Shacks and licensing revenue based on a percentage of sales from domestic and international licensed Shacks, as well as certain up-front fees such as territory and opening fees.

(4) Same-Shack sales % reflects the change in year-over-year Shack sales for domestic Company-operated Shacks open for 24 full fiscal months or longer.

Fiscal 2020 excludes the impact of the 53rd week.

For fiscal 2020, same-Shack sales compares the 52 weeks from December 26, 2019 through December 23, 2020 to the 52 weeks from December 27, 2018 through December 25, 2019.

In order to compare like-for-like periods for fiscal 2021, same-Shack sales will compare the 52 weeks from December 31, 2020 through December 29, 2021 to the 52 weeks from January 2, 2020 through December 30, 2020.

(5) Average weekly sales is calculated by dividing total Shack sales by the number of operating weeks for all Shacks in operation during the period.

For Shacks that are not open for the entire period, fractional adjustments are made to the number of operating weeks used in the denominator such that it corresponds to the period of associated sales.

Average unit volumes ("AUVs") are calculated by dividing total Shack sales by the number of Shacks open during the period.

(6) Average unit volumes are calculated by dividing total Shack sales by the number of Shacks open during the period.

For Shacks that are not open for the entire period, fractional adjustments are made to the number of Shacks used in the denominator such that it corresponds to the period of associated sales.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity