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and, unless otherwise stated, all of its subsidiaries, including SSE Holdings.
−Removed: Unless the context otherwise requires or unless specific reference is made to our licensed business, statements in this Part I of our Annual Report on Form 10-K refer to Shake Shack's Company-operated business.
Shake Shack serves modern, fun and elevated versions of American classics using only premium ingredients.
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It soon became a gathering place for locals and visitors alike, and a beloved New York City institution, garnering significant media attention, critical acclaim and a passionately devoted following.
−Removed: Since the original Shack opened in 2004 in Madison Square Park, the Company has expanded to 579 Shacks system-wide, of which 329 were Company-operated Shacks and 250 were licensed Shacks, including Shacks across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul, Toronto, Kuala Lumpur, and more.
+Added: Since the original Shack opened in 2004 in Madison Square Park, the Company has expanded to 659 Shacks system-wide, of which 373 were Company-operated Shacks and 286 were licensed Shacks, including Shacks across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.
+Added: Unless the context otherwise requires or unless specific reference is made to our licensed business, statements in this Part I of our Annual Report on Form 10-K refer to Shake Shack's Company-operated business.
WE STAND FOR SOMETHING GOOD
−Removed: At Shake Shack, we Stand For Something Good in everything we do.
−Removed: We are on an endless pursuit to create uplifting experiences through elevated, modern and fun versions of classic food and we are committed to seeing this vision executed across all aspects of the business, through the following actions:
−Removed: ▪ We elevate everything we do — Shake Shack is about creating uplifting experiences and moments of pure satisfaction.
−Removed: We aim to be thoughtful in every ingredient we buy, recipe we develop, Shack we design, team we build and community we support.
−Removed: ▪ We deliver Enlightened Hospitality™ at every touchpoint — Shake Shack was founded on the idea of Enlightened Hospitality:
−Removed: caring for each other, caring for our guests, caring for our communities, caring for our suppliers and our
+Added: Our Purpose — Stand for Something Good:
+Added: We will nurture the world’s communities by delivering exceptional food and hospitality.
+Added: Everything that we do should be in service of our team members, guests, and communities.
+Added: Our prosperity is a means to an end, with the end being improving the world in which we work, live, and play.
+Added: Our Mission — To bring the world’s best fine casual experience to as many guests, team members, and communities as possible and, in doing so, to bring pride to everyone in our company and to deliver a strong financial benefit for our team members and shareholders.
Shake Shack Inc.
Form 10-K | 2
−Removed: Today, we deliver on that vision by building hospitality through all our guest touchpoints.
−Removed: To us, hospitality is all about taking care of our team, our guests, our communities — and bringing those groups together.
−Removed: ▪ We gather communities and enrich our neighborhoods — Across the globe, Shacks have been an integral part of their communities, and we believe we have a role to play in supporting and revitalizing the neighborhoods where we work and serve.
−Removed: ▪ We do the right thing and hold ourselves accountable — At Shake Shack, we've always believed in leading by example and making better possibilities come to life with our teams and community, beyond just making great food.
−Removed: Our commitment to doing things differently includes a focus on exceptional career support for our teams, while creating meaningful impact in both our neighborhoods and the global industry.
−Removed: ▪ We are committed to environmental responsibility — We source our domestic ingredients from suppliers who share our values, including antibiotic-free and no added hormone proteins from ethically raised animals and non-GMO buns, and are committed to sustainable packaging, a focus on renewable energy, and assessing and managing our greenhouse gas emissions.
−Removed: ▪ We empower our teams to act like entrepreneurs — At the heart of a Shake Shack experience is our teams’ personal commitment to craft and hospitality.
−Removed: As we grow, we are developing our leaders and building tools that empower our Shacks to better promote uplifting experiences.
HUMAN CAPITAL MANAGEMENT
−Removed: To ensure the near-term and long-term success of our business, we are focused on recruiting, developing and rewarding high performing teams.
+Added: To ensure the near-term and long-term success of our business, we are focused on recruiting, developing.
+Added: and rewarding high performing teams.
Our teams are made up of people who have integrity, who are warm, motivated, self-aware, and intellectually curious alongside having the competencies and skills that continue to foster our growth.
−Removed: We train our team to understand and practice the values of Enlightened Hospitality.
We believe this culture is fundamental to the way we operate our business, and a key driver of our ability to deliver great guest experiences, and therefore, successfully grow our footprint.
−Removed: Working at Shake Shack is about more than making a great burger;
−Removed: it's about creating elevated and uplifting experiences for our team members and guests and getting opportunities to build a rewarding career.
−Removed: At Shake Shack, we are guided by and embrace the pillars of our Shack Pact — the set of values and behaviors necessary for us to achieve our mission.
−Removed: When team members commit to upholding the Shack Pact, they contribute to our business's success and positively impact their work environment and our overall culture.
−Removed: To live the Shack Pact, we lead with Enlightened Hospitality, do the right thing and hold each other accountable, uplift and take care of one another, and are optimistic and embrace ongoing learning.
−Removed: We Stand For Something Good.
−Removed: We enable our managers to build, coach, and lead strong teams by giving them the knowledge, tools, and resources to drive strong people practices in their Shacks and within the home office.
−Removed: In fiscal 2024, with a focus on technology and automation, we launched a new tool to improve efficiency in recruiting and hiring, which significantly improved applicant flow, and leaned into data to influence and understand the impact of labor.
−Removed: We strengthened our foundation with strategies designed to support our teams and continued to build and enhance our learning and talent development programs.
−Removed: We also continued to invest in our team members through increased wages.
−Removed: As of December 25, 2024, we had 12,826 team members, of whom 12,476 were hourly team members and Shack-level managers and 350 were home office personnel.
−Removed: Talent Acquisition
−Removed: We attract and recruit a workforce of top talent through employer branding, diversification of recruitment channels, and optimal recruiting practices to create a talent pipeline for the future of the business.
−Removed: We have a team of regional talent acquisition partners and coordinators supporting our operations to ensure that we source and recruit the right people to lead our new Shacks forward.
−Removed: Within the talent acquisition function, our hiring strategy is driven by employer branding as we continue to focus on strengthening our framework to support current staffing needs as well as enabling new Shack growth.
−Removed: In fiscal 2024, we introduced several key initiatives to improve our talent acquisition processes:
−Removed: Shake Shack Inc.
−Removed: Form 10-K | 3
−Removed: ▪ We launched a mobile-friendly recruiting platform to improve the application and interview experience for team members, making the process more efficient and accessible to ensure that our Shacks are equipped to utilize systems for best-in-class recruiting.
−Removed: ▪ We enhanced our employer branding presence by rolling out the Shake Shack Brand Ambassador program, which shares our unique culture and draws talent in emerging markets with lower brand awareness.
−Removed: ▪ We improved cross-functional collaborations with the marketing team to assist with promoting content across various channels to support our talent acquisition initiatives.
−Removed: ▪ We utilized data and insights from our technology improvements to gain deeper insights into labor trends and their impact on our growth in order to continue delivering a strong talent acquisition strategy.
−Removed: Through these initiatives, we are committed to broadening our reach as we expand in new and existing markets.
−Removed: Talent Management
+Added: As of December 31, 2025, we had 13,873 team members, of whom 13,427 were hourly team members and Shack-level managers and 446 were Shack Support Center personnel.
+Added: We attract and recruit a workforce of top talent through employer branding, diversification of recruitment channels, and optimal recruiting practices to create a talent pipeline to support current staffing needs as well as enabling new Shack growth.
At Shake Shack we foster an environment that attracts and welcomes individuals of all abilities, backgrounds, cultures, perspectives, skill sets, and experiences.
−Removed: Having a high performing and engaged workforce is important, and we have been working to ensure our team members feel recognized, connected, and proud to work at Shake Shack.
−Removed: We established a cross-functional workgroup that has been focused on addressing the areas our team members deemed as most important to their workplace experience through our annual engagement survey.
−Removed: This workgroup has worked to improve our internal job board and selection process, explore a monthly recognition program to reward team members in our Shacks who live our values, and find better channels to communicate and engage directly with our hourly team members.
−Removed: We lean into our team member value proposition by training managers in positive team member relations and effective people practices.
−Removed: We held a team member engagement cross-functional workshop that identified key engagement and recognition improvements to assist in retaining top talent while providing team members with a greater sense of belonging.
−Removed: We hosted regional talent meetings to get a holistic view of our operations leadership talent which included individualized talent assessments and calibration.
−Removed: We plan to continue this exercise periodically to evaluate leadership gaps and potential capabilities.
−Removed: We also look to broaden our continued education offerings and focus on development to further empower the frontline leaders of our business.
−Removed: These practices will help drive retention, ensure compliance with existing and new regulations, and establish Shake Shack as an employer of choice.
−Removed: To make sure every Shake Shack team member at every level has a positive experience, we strive to build an inclusive workplace, where all team members have the support and resources they need to succeed, feel a sense of belonging, and are valued for their contributions.
−Removed: We call this All-In.
−Removed: Some of the initiatives we have in place to help foster this type of culture include:
−Removed: ▪ Employee Resource Groups (ERGs) — Our ERGs, which are open to all team members, play a leading role in helping to shape an inclusive workplace culture.
−Removed: Led by volunteers and sponsored by members of our executive team, our ERGs actively work to educate the broader Company on their demographic group, support each other through mentoring, networking, and professional development, and provide their unique perspective on business initiatives.
−Removed: Our ERGs provide an internal storytelling platform used to educate, connect, and inspire our team members to take action to promote greater inclusion at Shake Shack.
−Removed: ▪ External Recognition — For the sixth year in a row, we are proud to be recognized as a "Best Place to Work for LGBTQ+ Equality" by the Human Rights Campaign Foundation, earning a 100% score on their Corporate Equality Index for our support of the LGBTQ+ community in the workplace.
−Removed: In addition, we were honored by Newsweek's America's Greatest Workplaces for LGBTQ+.
−Removed: These designations highlight the core of our Enlightened Hospitality ethos and our commitment to a great workplace for all.
−Removed: ▪ The Help Us Give (HUG) Fund — One of the ways we embrace Enlightened Hospitality internally is through the administration of our own HUG Fund, a 501(c)(3) organization funded by and available for our team members.
−Removed: The HUG Fund was created to support the values in our Shack Pact by providing timely financial assistance to team members impacted by emergency circumstances beyond their control and means.
−Removed: During fiscal 2024, the HUG Fund provided 48 grants to help team members dealing with hardships such as loss of income due to major medical setbacks, homelessness or housing insecurity, and other family emergencies.
−Removed: Shake Shack Inc.
−Removed: Form 10-K | 4
−Removed: ▪ Learning and Talent Development — We are dedicated to providing content and experiences that develop and retain team members.
+Added: Having a high performing and engaged workforce is important, and we seek to understand the needs of our teams through feedback to help to ensure they feel recognized, connected and proud to work at Shake Shack.
+Added: We are dedicated to providing content and experiences that develop and retain team members.
At Shake Shack, we continue to rethink how we provide career growth opportunities with lattice mobility replacing the traditional promotion ladder to ensure team members continue to succeed in a market that is rapidly changing.
−Removed: To help develop our Shack leaders, we created a library of content, programs, and approaches essential to scale and grow alongside our people and business.
−Removed: During fiscal 2024, development focus areas included:
−Removed: providing effective feedback;
−Removed: learning to navigate and lead change;
−Removed: organizing and delegating work;
−Removed: the culture of Shake Shack;
−Removed: essential communication methods;
−Removed: hospitality trends and business operations;
−Removed: managing a team and delivering results;
−Removed: new learning management system for trainings;
−Removed: and measurement of completion and engagement.
−Removed: ▪ On-going Leadership Programs — We invest in leadership development programs so that Shake Shack remains a compelling career choice for team members at every level, through their entire career.
−Removed: Our six-week Lead to Succeed Manager Leadership Program within the home office provides people managers with the tools needed to lead others effectively by covering key topics such as building the right team culture, providing critical feedback, and coaching for performance.
+Added: We offer training programs to foster leaders from within, such as:
+Added: ▪ Our nine-week Rise program is created for exempt managers and California non-exempt managers and focuses on elevating leadership capabilities through coaching, building effective team environments, and driving meaningful business impact within the Shack.
+Added: ▪ Our nine-week Emerge program is targeted towards assistant general managers and is designed to empower them to influence their teams, drive accountability and deliver results through strategic, data-informed decisions.
▪ Our 18-week Shift Up program is a leadership development program for early career Shack managers that provides training through cohort mentoring, business integration and real-world Shack experience to help improve their skill sets and grow their confidence to become senior leaders in our Shacks.
−Removed: During fiscal 2024, the Shift Up program had 61 participants, of which 16 were promoted into Manager-In-Training, Manager or California Non-Exempt Manager roles.
−Removed: Additionally, in fiscal 2024 we conducted Area Director Summits with operations leaders to provide tools and resources to develop leadership skills, and launched our Enlightened Leadership program to enhance and upskill our current and incoming talent base.
+Added: To make sure every Shake Shack team member at every level has a positive experience, we strive to build an inclusive workplace, where all team members have the support and resources they need to succeed and feel a sense of belonging.
+Added: We foster this sense of belonging in part through our employee resource groups, which are open to all team members.
+Added: Another way we support our team members is through the administration of our HUG Fund, a 501(c)(3) organization funded by and available for our team members.
+Added: The HUG Fund provides timely financial assistance to team members impacted by emergency circumstances beyond their control and means.
We care about our team and are committed to setting them up for success at Shake Shack and in their future careers.
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Our team members are at the center of all we do, and we remain committed to investing in their success and well-being.
−Removed: We have enhanced our team member value proposition to better attract and engage talent by offering a comprehensive package that integrates competitive pay and robust benefits.
−Removed: To further recognize and motivate our Shack leaders, we extend short-term bonus eligibility to our Shift Managers and offer our equity-based compensation program to all General Managers, empowering them to share in the success of our business, which fosters a sense of ownership and directly rewards high performance, reinforcing our commitment to their growth and leadership.
+Added: We continue to work diligently to ensure our team members have access to benefits to support their personal and family wellness and continue to explore new and meaningful ways to reward our high performing team members.
The following summarizes some of the benefits offered to eligible team members:
+Added: Shake Shack Inc.
+Added: Form 10-K | 3
▪ Comprehensive health insurance coverage and health and flexible spending accounts are offered to eligible team members working 25 hours or more each week.
▪ We offer eligible team members a 401(k) plan that includes a competitive matching component to support and encourage retirement savings.
+Added: ▪ Our tipping availability has offered team members the opportunity for increased hourly wages and is optional if our guests are inclined to reward our teams for additional hospitality and service.
▪ Team members can accrue paid time off and sick time based on hours worked, which can be used for personal needs or to care for family members.
▪ Parental leave is available for Shift Managers and above who are new parents welcoming a child through birth, adoption, or foster placement.
−Removed: ▪ Our Employee Assistance Program, available on the first day of employment, provides various resources to support team member's mental health and help improve the quality of work life.
▪ Our Shake Shack Field Management Bonus Program incentivizes our leaders to grow both sales dollars and operating profit percentage.
−Removed: We also took steps to think differently about the designs and practices of our benefits, including health and well-being benefits, absence support, tipping and wages, and incentive plan evaluation.
−Removed: Shake Shack Inc.
−Removed: Form 10-K | 5
−Removed: ▪ Tipping — Our tipping availability has offered team members the opportunity for increased hourly wages and is optional if our guests are inclined to reward our teams for additional hospitality and service.
−Removed: ▪ Medical Insurance Choices — Company sponsored health insurance provides four medical plan options starting in 2025, including a high deductible health plan and a basic health plan, offering designs with low-cost premiums but essential health benefits and flexibility.
−Removed: ▪ Expanded Benefits — We expanded our health benefit offerings to include reproductive health benefits with options for family planning, coverage for pregnancy terminations, and counseling support.
−Removed: We continue to work diligently to ensure our team members have access to benefits to support their personal and family wellness and continue to explore new and meaningful ways to reward our high performing team members.
+Added: ▪ General Managers participate in our equity-based compensation program, empowering them to share in the success of our business.
GUEST EXPERIENCE
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We believe that culture is the single most important factor in our success.
−Removed: To maintain this, we take care of our teams first and foremost, and this allows us to take care of our guests, our communities, our suppliers and our investors.
−Removed: With Enlightened Hospitality, we strive to create a personalized experience for our guests at each of our Shacks around the world.
+Added: To maintain this, we take care of our teams first and foremost, and this allows us to take care of our guests, our communities, our suppliers, and our shareholders.
+Added: We strive to create a personalized experience for our guests at each of our Shacks around the world.
We achieve this through innovations in service, trendsetting culinary innovation, and the design of warm community gathering places.
+Added: Engaging with our Guests
+Added: Shake Shack grew up alongside social media and we believe we have benefited from our close relationship with passionate fans who want to engage with us and share their real-time experiences.
+Added: We're proud to be recognized by media, influencers, and creators alike, garnering attention around the world.
+Added: Our positioning and brand voice, derived from the spirit, integrity and light-hearted nature of Shake Shack, are reinforced by our contemporary, responsible designs and hospitable team members.
+Added: This identity also anchors our marketing efforts, with the heart of our marketing strategy to awaken the world to joyful eating through uplifting experiences, cultivating community and connecting with guests both in our Shacks and through digital channels.
+Added: Capitalizing on Our Brand Strength
+Added: Since 2004, Shake Shack has become a globally recognized brand with strong consumer awareness relative to our current footprint of 659 Shacks system-wide.
+Added: We pride ourselves on providing a vibrant and authentic community gathering place that delivers an exceptional experience to our loyal guests.
+Added: One great advantage for Shake Shack has been our birthplace and headquarters in New York City and our origination from a fine-dining company, which have contributed to influential media visibility and brand recognition.
+Added: Shake Shack continues to receive recognition for being a fan and industry favorite, and was named to Restaurant Business' Top 500 Chain Restaurants and QSR Magazine's QSR 50 in 2025.
+Added: Just as we design our Shacks as community gathering places, our social media strategy creates an online community gathering place.
+Added: We interact with fans across Instagram, TikTok, X (formerly Twitter), Facebook, and more by sharing engaging content, comments, replies and the use of user-generated content;
+Added: a quick search of "#shakeshack" on Instagram reveals over 1.1 million organic posts from our fans.
+Added: Brand Marketing Model
+Added: In 2025, we evolved our brand marketing model to create a durable, demand-driving engine that supports long-term sales growth, in part, by adopting a unified approach across advertising, paid media, insights & analytics, and earned/social engagement.
+Added: As part of this evolution, we invested in paid media at scale for the first time supporting campaigns such as the Dubai Chocolate Shake, The Big Shack, and $1 soda in-app only promotion.
+Added: The evolution of our brand marketing model has
+Added: Shake Shack Inc.
+Added: Form 10-K | 4
+Added: informed our strategic brand positioning and selection of a new creative agency partner capable of elevating how we communicate the Shake Shack story.
Digital Evolution
−Removed: The focus of our digital strategy is to deliver Enlightened Hospitality to our guests across multiple channels.
−Removed: Through modern platforms, we continuously strive to build more frictionless ways to deliver the tailored Shake Shack experience with convenience and accessibility.
+Added: We are building a digital guest experience that aims to turn every visit into a routine and every order into growth.
+Added: By aligning our roadmap across guest journey improvement, loyalty, retention, and digital excellence, we’re creating a growth flywheel that drives both comparable and incremental sales.
+Added: We are making investments to amplify Shake Shack’s hospitality through a platform where ordering is frictionless, returning is rewarding, and reliability makes us a part of our guests’ everyday lives.
+Added: By weaving these priorities into one journey, we aim to scale growth of our digital channels and deepen loyalty.
Our digital initiatives are defined by each of the following themes:
−Removed: ▪ Enlightened Hospitality — Using our digital channels to bring guests an uplifted sense of hospitality.
−Removed: This ranges from developing innovative digital pre-ordering and pick-up experiences, to meaningfully engaging with guests through our Company-owned app, web and kiosk channels.
−Removed: ▪ Personalized Guest Experience — Knowing, understanding and creating a personal guest experience that drives loyalty, frequency, and brand engagement across multiple digital platforms and in the Shacks themselves.
−Removed: ▪ Smarter Every Day — Building and refining our data platform and overall digital approach so we may drive return on investment on marketing campaigns and technology spending and improve our ability to make smart decisions that fuel growth.
+Added: ▪ Personalization and Hospitality — Leveraging data and guest insights to anticipate needs, tailor experiences, and bring hospitality to our digital channels at scale.
+Added: We aim to make each guest feel recognized and valued.
+Added: ▪ Rewarding Guests with Value — Creating meaningful motivating value exchanges that deepen loyalty and help guests choose Shake Shack in a crowded space.
+Added: ▪ Easy, Reliable and Delightful Experiences — Delivering a frictionless journey that is fast, intuitive and dependable across app and web.
+Added: From improving efficiency and availability to seamless checkout and thoughtful user experience interfaces, we remove barriers and deliver experiences that keep guests coming back.
We are focused on driving traffic to our Company-owned app and web channels, including growing the number of app and web sessions by acquiring and converting users across our digital ecosystem.
−Removed: Our mobile apps drive higher frequency and offer a better guest experience, which we will continue to invest in.
+Added: Our mobile app drives higher frequency and offers a better guest experience, which we will continue to invest in.
We also continue to offer third-party delivery through Uber Eats, DoorDash, Grubhub and other third-party delivery providers.
−Removed: Offer Management
−Removed: In early November 2024, we launched a new offer management integration which will give us better visibility into the redemption of offers across our system, allowing us to have a more holistic view of how promotions are performing.
−Removed: We are excited about the capabilities this gives to our guests as well as operations and marketing teams throughout the organization.
−Removed: In 2024, we continued to invest in the development of our kiosk platform, maturing its functionalities as an ordering channel.
−Removed: We started by improving our analytics capabilities on the platform by revising the types of data we capture when a guest is building an order, giving us better reporting on guest behavior while they are using the kiosk and allowing us to have a better understanding of how guests prefer to use the kiosk.
−Removed: We also redesigned the post purchase experience to make it easier and clearer for a guest to opt into our marketing emails and request an emailed receipt.
−Removed: Additionally, we built our cross-sell experience at checkout, making recommended products easier to see and distinguish from items already part of a guest’s order.
+Added: Personalized Offers and Challenges
+Added: In 2025, we integrated our new offer management tool with our guest data platform and messaging platform to deliver personalized offers and challenges to targeted guest segments.
+Added: This enabled our marketing team to tailor offers to specific guests based on that guest’s behavior in Shack Shack’s ecosystem, allowing our messaging and offers to be more efficient and drive incremental value.
+Added: In addition to the back-end integration, we improved how users view and redeem offers on our mobile apps and website to make it a more user-friendly experience.
+Added: The integration and improvements also enabled the capability to run “challenge” offers where a user is rewarded for performing specific actions over multiple visits to Shake Shack, for example, visit three times in 30 days for a free Shackburger.
+Added: In 2025 we continued to invest in the development of our kiosk platform including releasing the capability for guests to identify themselves at our kiosks.
+Added: By simply entering their phone number at kiosk, guests are able to view a personalized kiosk experience, access tailored offers, and participate in the challenges mentioned above.
+Added: This has increased engagement on our kiosks and improved our tracking of guest behavior across ordering channels.
+Added: Additionally, we have made updates to the way users navigate our menu on kiosk, improving usability and merchandising of Shake Shack’s menu.
+Added: Culinary Innovation
+Added: Shake Shack's unique value proposition is partially defined by our roots in fine-dining, which inspire us to offer premium food and beverages, carefully crafted from a range of classic American foods.
+Added: We embrace that heritage and are committed to sourcing premium ingredients while offering excellent value to our guests.
+Added: Our core menu is inspired by elevated versions of American classics.
+Added: Fiscal 2025 represented a meaningful shift in how we develop and manage culinary innovation across the Company.
+Added: We strengthened our culinary and menu strategy by building a dedicated team and implementing a more diligent approach to taste testing, validation, and product development.
+Added: This included establishing a strategic culinary calendar planned 12 to 18 months in advance, supported by guest feedback and insights to ensure each item meets our standards for quality, execution, and guest appeal.
+Added: This new process has enabled us to deliver a consistent pipeline of compelling limited-time offerings across burgers and sandwiches, sides, shakes, and beverages, while reinforcing the quality of our food and our fine-casual positioning.
Shake Shack Inc.
Form 10-K | 5
+Added: we have shifted the way we think about culinary innovation—viewing it not only as a product development function but as a core driver of guest traffic and sales mix.
+Added: Shack-Wide Limited Time Offerings ("LTO")
+Added: Our LTO program generally features a new, premium burger or chicken sandwich, special side innovation, and unique beverages and shakes for varying periods of time throughout the year.
+Added: In fiscal 2025, these offerings highlighted several distinct culinary themes and showcased bold flavors and premium ingredients.
+Added: ▪ Black Truffle Menu — From September 2024 through April 2025, we reintroduced our beloved Black Truffle sauce made with real black truffle oil, with Black Truffle ShackStack as an option, combining our iconic ‘Shroom burger with one of our 100% Angus beef patties.
+Added: ▪ Summer BBQ Menu — In April, we brought back our seasonal BBQ flavors across burgers and new chicken sandwiches, complemented by sides of Fried Pickles and Spicy Fries, showcasing our signature Shack-crafted sauces and craveable combinations for the summer season.
+Added: ▪ Dog Days — In July, we launched a limited-time hot dog menu featuring elevated, inventive toppings, providing guests with unique options beyond our core burger and chicken offerings.
+Added: ▪ French Onion Menu — In September, we launched the French Onion Burger, 'Shroom, and ShackStack along with accompanying sides including Onion Rings and Parmesan Garlic Fries, bringing rich, fine-dining-inspired flavors to our LTO offerings.
+Added: Onion Rings were so well received by our guests that they will join the core menu permanently in 2026.
+Added: ▪ Big Shack — In November, we introduced a more deluxe version of our famous ShackBurger made with two 100% Angus beef patties split between three layers of bun and topped with our secret sauce, lettuce, American cheese, pickles, onions, and tomatoes.
+Added: ▪ Beverage and Dessert Innovation — Throughout fiscal 2025, we continued to expand our beverage innovation pipeline, highlighted by the Dubai Chocolate Pistachio Shake, one of our strongest Shake LTOs to date.
+Added: Following the success of the Dubai Chocolate Pistachio Shack, we added the same crackable feature to one of our holiday Shake LTOs - the Peppermint Bark Chocolate Shake.
+Added: We also offered a Mini Raspberry Popping Boba add-on for lemonades and iced teas, delivering a premium and fun sensory surprise.
Engaging the Community
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We regularly serve our communities in a variety of ways including Donation Days to show support for local schools and organizations.
−Removed: Guests who participate in these fundraisers have a portion of their order totals donated to a local nonprofit by mentioning the fundraiser when placing an order in-Shack or using a fundraiser code on the Shack app for pick-up or delivery.
−Removed: For certain new Shack openings, we partner with local charities for opening day.
−Removed: In some markets, we have existing tenured partnerships with organizations and in other markets, we are building new relationships in our local communities with Shacks we open.
−Removed: At select new Shack openings in fiscal 2024, we donated $1 from each designated menu item sold on opening day to the chosen local nonprofit partner.
−Removed: As we continue to grow our footprint across the United States, our opening day charitable partners are an example of how we continue to drive home our Stand for Something Good purpose.
−Removed: We regularly donate cash, food and gift cards to support dozens of local nonprofit organizations, schools, and food banks around the country.
−Removed: For example, in fiscal 2024, our teams donated over $60,000 worth of Shake Shack food to local communities including to first responders, nonprofits, hospitals, and schools, demonstrating our efforts towards uplifting communities and combating food insecurity.
+Added: Guests who participate in these fundraisers have a portion of their order totals donated to a local nonprofit by mentioning the fundraiser when placing an order in-Shack or using a fundraiser code on the Shack app, website, or kiosk for pick-up or delivery.
+Added: In 2025, Donation Days supported several of our Shack communities in need following disasters, including the Los Angeles-area wildfires and floods in North Carolina.
+Added: For new Shack openings, we partner with local charities to donate $1 from each designated menu item sold on opening day.
+Added: In some markets, we have existing tenured partnerships with organizations and in other markets we are building new relationships in our local communities as we open Shacks.
A Warm Community Gathering Place
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We place a high premium on connecting with our communities through the physical design of our Shacks and by the local causes we support.
−Removed: We provide the option of an omnichannel experience to suit the needs of our guests wherever and however they want their Shack today.
−Removed: We remain laser focused on delivering a great guest experience both digitally and in-Shack with elevated offerings reflective of our fine-dining culinary roots.
Each Shack is designed to convey a consistent brand message while also tailoring marketing efforts to its specific region.
−Removed: We may offer menu items that feature ingredients and beers specific to a Shack's community, and we often team up with local chefs and restaurants to offer our guests unique, collaborative menu items.
+Added: We may offer menu items that feature ingredients and beers specific to a Shack's community, and we may team up with local chefs and restaurants to offer our guests unique, collaborative menu items.
We also collaborate with local artists and designers to bring beautiful artwork and installations to our Shacks.
We participate in local celebrations and develop relationships within the community, helping position Shake Shack as a premium brand that is connected to its neighborhoods.
−Removed: Engaging with our Guests
−Removed: Shake Shack grew up alongside social media and we believe we have benefited from our close relationship with passionate fans who want to engage with us and share their real-time experiences.
−Removed: We're proud to be recognized by media, influencers, and creators alike, garnering attention around the world.
−Removed: Our positioning and brand voice, derived from the spirit, integrity and light-hearted nature of Shake Shack, are reinforced by our contemporary, responsible designs and hospitable team members who Stand for Something Good.
−Removed: This identity also anchors our marketing efforts, with the heart of our marketing strategy to provide an uplifting experience while cultivating community and connecting with guests both in our Shacks and through digital channels.
−Removed: Just as we design our Shacks as community gathering places, our social media strategy creates an online community gathering place.
−Removed: Through our social media presence, we bring Enlightened Hospitality to new audiences by mirroring the in-person experience a guest has when they visit a Shack.
−Removed: We interact with fans across Instagram, TikTok, X (formerly Twitter), Facebook, and more by sharing engaging content, comments, replies and the use of user-generated content;
−Removed: a quick search of "#shakeshack" on Instagram reveals over 1.1 million organic posts from our fans.
−Removed: This year, we continued our creator partnerships and expanded our brand storytelling to include long-form video.
−Removed: In addition to social media, we also connect with our guests through our email marketing program via targeted menu item alerts, local event invites, new Shack opening information and other relevant Shake Shack news.
−Removed: Campaigns, Promotions and Events
−Removed: We continue to extend our brand by collaborating with celebrated chefs, developing new creative concepts, unveiling exciting promotions and participating in special events to drive brand awareness and engage with our guests.
−Removed: These initiatives were key
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−Removed: to harnessing the growing strength of the Shake Shack brand and helping it stand out through unique moments.
−Removed: Some notable campaigns, promotions and events included:
−Removed: ▪ Chicken Sundays — For the month of April and from September 8 to December 15, we offered guests a free Chicken Shack with a $10 minimum purchase on Sundays.
−Removed: We highlighted the antibiotic-free chicken and other high-quality ingredients we use in our Chicken Shack as a key point of differentiation for Shake Shack.
−Removed: ▪ Avocados from Mexico x Shake Shack — To drive awareness of our avocado offerings from April 25 – April 28, we teamed up with Avocados from Mexico to offer guests a free avocado add-on when ordering a sandwich or burger.
−Removed: At select Shacks, guests also had the opportunity to hand-select their own avocado with an “Avocado Expert” and receive a tableside slicing demonstration in-Shack.
−Removed: For guests not near a participating location, they were invited to enter a sweepstakes to win a trip to New York City and an exclusive visit to our Innovation Kitchen with an avocado tasting menu.
−Removed: ▪ Bearaby x Shake Shack — To celebrate National French Fry Day on July 12, we teamed up with Bearaby to create the Crinkle Cut Cuddler, a body pillow shaped like our iconic Crinkle Cut fries.
−Removed: Made with plant-based Melofoam™, this limited-edition pillow is perfect for lounging, snacking, and adding fun decor to your home.
−Removed: It comes with a washable yellow cover and takeout box-inspired packaging—an ideal match for enjoying our delicious fries in comfort.
−Removed: ▪ Bacon a Difference — From August 9 – August 11, Shake Shack guests in Orange County and Los Angeles supported Niman Ranch’s sustainable farming by ordering any item with bacon.
−Removed: For every bacon-inclusive order, $1 was donated to the Young Farmers Regenerative Agriculture Grant.
−Removed: Shake Shack’s sustainably sourced bacon added a crispy, flavorful touch to burgers, chicken, and crinkle cut fries, allowing guests to enjoy a delicious meal while giving back.
−Removed: ▪ Beers for Good — From August 23 – August 25, Shake Shack donated $1 from every cold beer purchased in-Shack nationwide to Food Recovery Network.
−Removed: During the weekend, our brewery partners hosted pop-up events at Shacks across the country, showcasing local beer offerings.
−Removed: Guests enjoyed live music, a bite to eat, and beer — all in support of a great cause.
−Removed: ▪ Talea Beer Co.
−Removed: x Shake Shack — We partnered with TALEA to create the perfect complement to our Black Truffle Menu — a limited-edition Black Truffle Lager.
−Removed: Starting in September 2024 and running through early 2025, Shake Shack fans in New York City could enjoy this unique lager, brewed with real black truffles and porcini mushrooms, available at all New York City Shacks.
−Removed: The brew was also offered at TALEA’s taprooms in Bryant Park, Cobble Hill, West Village, and Williamsburg.
−Removed: ▪ EEEEEATSCON with The Infatuation — This year, we headlined Chicago, Los Angeles, and New York City EEEEEATSCON.
−Removed: In Chicago, we teamed up with Zingerman’s Deli, a Midwest Jewish Deli to create the Pastrami Shack and Hazelnut Brownie Affogato Frozen Custard.
−Removed: In New York City, we teamed up with Thai Diner, a Thai restaurant in Manhattan, to create the Thai Diner Shack and Jungle Fries.
−Removed: In Los Angeles, we partnered with Bridgetown Roti, a buzzy local Caribbean concept, to create a Roti Curry-Shack and Chili Mango Frozen Custard.
−Removed: Capitalizing on Our Brand Strength
−Removed: Since 2004, Shake Shack has become a globally recognized brand with significant consumer awareness relative to our current footprint of 579 Shacks system-wide.
−Removed: We pride ourselves on providing a vibrant and authentic community gathering place that delivers an exceptional experience to our loyal guests.
−Removed: One great advantage for Shake Shack has been our birthplace and headquarters in New York City, and our origination from a fine-dining company.
−Removed: This gives us tremendous media and brand power, often outweighing our relative size.
−Removed: Shake Shack continues to receive recognition for being a fan and industry favorite, and was named to Restaurant Business' Top 500 Chain Restaurants and QSR Magazine's QSR 50 in 2024.
−Removed: Culinary Approach
−Removed: Shake Shack's unique value proposition is partially defined by our roots in fine-dining.
−Removed: We embrace that heritage and are committed to sourcing premium ingredients, such as antibiotic-free and no added hormone proteins while offering excellent value to our guests.
−Removed: Our core menu is inspired by elevated versions of American classics.
−Removed: We often supplement it with limited time offers and experiment with potential new categories we may consider adding to the menu over time.
−Removed: We are committed to culinary creativity and excellence, collaborating with award-winning chefs, talented bakers, farmers and artisanal purveyors, each
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−Removed: of whom bring their unique skills and expertise to the Shake Shack experience.
−Removed: As we grow across the country, we are excited to expand these collaborations.
−Removed: All of our locations offer premium food and beverages, carefully crafted from a range of classic American foods.
−Removed: While ingredient specifications and menu options can vary by country, the core menus at our US-based locations include the following:
−Removed: Our burgers are made with a proprietary whole-muscle blend of 100% all-natural, no added hormone, and antibiotic-free Angus beef, ground fresh, cooked to order and served on a non-GMO potato bun.
−Removed: We take great care in the preparation of our burgers — from sourcing, to handling, to cooking — to ensure their taste and quality is second to none.
−Removed: Our signature burger is the ShackBurger®, a four-ounce cheeseburger topped with lettuce, tomato and ShackSauce™.
−Removed: Our burger offerings also include the SmokeShack®, 'Shroom Burger™ (a vegetarian burger), Shack Stack®, Avocado Bacon Burger and Hamburger.
−Removed: Our Chicken Shack is a 100% all-natural, no added hormone, and antibiotic-free chicken breast, slow cooked in buttermilk and herbs, hand-battered, hand-breaded and crisp-fried to order.
−Removed: Our Chicken Bites are made with all-natural, antibiotic-free whole muscle chicken that is sous-vide cooked for optimum flavor, moisture and texture.
−Removed: Crinkle Cut Fries
−Removed: Our classic, passionately beloved crinkle cut fries are made from premium potatoes and are prepared 100% free of artificial trans fats.
−Removed: So many of our guests love the crispiness and ridges of our crinkle cut fries;
−Removed: a nostalgic ode to the roadside burger stand of yesteryear.
−Removed: Guests can also enjoy our Cheese Fries, our crinkle cut fries topped with a proprietary blend of cheddar and American cheese sauce.
−Removed: Shake Shack was born as a hot dog cart in 2001 and we’re proud to honor that legacy by continuing to offer a premium hot dog.
−Removed: Our hot dogs are made from 100% all-natural, no added hormone and antibiotic-free beef.
−Removed: Shakes and Frozen Custard
−Removed: Our premium, rich and creamy frozen custard, hand-made daily on-site, is crafted from our proprietary vanilla and chocolate recipes.
−Removed: We use only real sugar (no high-fructose corn syrup) and milk from dairy farmers who pledge not to use artificial growth hormones.
−Removed: Shakes remain our guests' favorite in this category, and they're scooped and hand-spun to order.
−Removed: Beer, Wine and Beverages
−Removed: Our proprietary ShackMeister® Ale, brewed by Brooklyn Brewery, was specifically crafted to complement the ShackBurger's flavor profile.
−Removed: At select locations, we also offer local craft beers.
−Removed: Our Shack Red®, Shack White® and Shack Rose® wines are sourced and produced exclusively by Gotham Project, providing our guests with premium beverage options not commonly found in our industry, a nod to our fine-dining roots.
−Removed: In addition, we serve Abita Root Beer, Shack-made lemonade, organic fresh brewed iced tea, Fifty/Fifty (half lemonade, half organic iced tea), Honest Kids organic apple juice and Shack|2O® bottled still and sparkling waters.
−Removed: Innovation Kitchen
−Removed: Our Innovation Kitchen is located on the lower level of the West Village Shack in New York City, connected to our home office and allows us to explore exciting new menu items for our guests.
−Removed: The culinary team uses this dedicated space to be even more creative, dig deeper into our fine-dining roots, collaborate with other chefs, and explore new opportunities as we continue to grow.
−Removed: The West Village Shack’s menu has all our classic items and features items from the Innovation Kitchen, with guest-favorite test items potentially becoming national limited time offerings and permanent menu items.
−Removed: This space also allows us to house our quality assurance and culinary teams together, ensuring that every item on our menu meets our strict standards.
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−Removed: Shack-Wide Limited Time Offerings ("LTO")
−Removed: Our LTO program generally features a new, premium burger or chicken sandwich, and special fry options for varying time periods throughout the year along with unique beverages and shakes.
−Removed: Some of our notable LTOs throughout fiscal 2024 were:
−Removed: ▪ Korean Style Fried Chicken, Korean BBQ Burger, and Spicy Korean BBQ Fries and Cheese Fries – In January, we launched a menu full of big, bold flavors, bringing back a fan-favorite sweet and spicy chicken sandwich first launched in 2021, this time paired with an umami-packed burger and fries that paired the “swicy” and umami flavors perfectly.
−Removed: ▪ Summer BBQ Burger and Fries – In May, we launched two BBQ burgers made for the summer season, the Smoky Classic BBQ Burger and the Carolina BBQ Burger with Fried Pickles alongside BBQ fries and BBQ cheese fries.
−Removed: All of these options featured our own Shack BBQ sauces, one a classic smoky red sauce and the other a sweet and tangy gold sauce.
−Removed: ▪ Black Truffle Burger, ‘Shroom, ShackStack and Black Truffle Parmesan Fries – In September, our beloved Black Truffle sauce made with real black truffle oil returned to Shacks, this time with a Black Truffle ShackStack option, combining our iconic ‘Shroom burger with one of our 100% Angus beef patties.
−Removed: ▪ Limited-Time Shakes — Throughout fiscal 2024, we offered exciting new shakes like Strawberry Frosted Donut, Peaches & Cream and Chocolate Salted Caramel.
−Removed: In November, we launched our Holiday Shakes, bringing back fan-favorites Christmas Cookie and Apple Cider Donut as well as the new classic Chocolate Yule Log.
−Removed: ▪ Lemonades — Throughout fiscal 2024, we launched seasonal flavors like Dragonfruit Pomegranate Lemonade, Strawberry Peach Iced Tea and fan-favorites Pink Lemonade and Mango Passionade along with corresponding Fifty/Fifty options.
−Removed: GROWTH STRATEGIES
−Removed: During fiscal 2024, we focused our development strategy on improving how we build and open Shacks, which included reducing build cost, implementing strategies to better track and forecast timelines and expenses, evolving our design efforts to standardize key components of our restaurants while maintaining brand quality and guest experience, and opening a balanced portfolio of formats that allowed us to maximize our potential in each market.
−Removed: We opened 61 net new system-wide Shacks, which included 34 Company-operated and 27 Licensed Shacks.
−Removed: We believe we remain well-positioned to continue significant, sustainable financial growth and we plan to continue to execute our growth strategies with our purpose to Stand For Something Good in everything we do.
+Added: During fiscal 2025, we focused our development strategy on improving how we build and open Shacks, which included reducing build costs, implementing strategies to better predict and forecast timelines and manage our supply chain, evolving our design efforts to standardize key components of our Shacks while maintaining brand quality and guest experience, and opening a mixed portfolio of formats that allowed us to maximize our potential in each market.
+Added: We opened 80 net new system-wide Shacks, which included 44 net Company-operated and 36 net Licensed Shacks.
+Added: We believe we remain well-positioned to continue significant, sustainable financial growth and we plan to continue to execute our growth strategies.
Company-Operated Shacks
−Removed: We expanded our Company-operated footprint by nearly 12% from the prior fiscal year, and as of December 25, 2024 we had 329 Company-operated Shacks, which is net of the nine Shacks that were closed in fiscal 2024.
−Removed: Our disciplined expansion strategy is designed to leverage our business model's strength and our brand awareness.
−Removed: For 2025, we are targeting to open approximately 45 new Company-operated Shacks as we continue to be encouraged by the success of our multi-format strategy, which includes, but is not limited to, core, drive-thru, flagship, and small format.
−Removed: In the long-term, we believe we have the potential to grow our current Company-operated Shack footprint.
−Removed: Of course, the rate of future Shack growth in any particular period is inherently uncertain and is subject to numerous factors beyond our control.
−Removed: As a result, we do not currently have an anticipated timeframe for such expansion.
−Removed: In addition to opening new Shacks, we continue to focus on improving same-Shack sales performance by providing a dynamic, personalized guest experience that includes seasonal and Shack-specific offerings, enhancing kiosk functionalities, thoughtful integration with local communities and Enlightened Hospitality.
−Removed: Additionally, we are reinvesting in maintaining and updating our current portfolio of Shacks to ensure they continue to provide a great guest experience and strong operational excellence.
−Removed: Building a Robust Pipeline
−Removed: We see further opportunity for growth in opening new Company-operated Shacks, as we believe there is tremendous whitespace to expand in both new and existing U.S.
−Removed: markets and maximize our total addressable market.
−Removed: Our real estate strategy includes
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−Removed: focused expansion in our top markets to build critical mass and leverage our brand awareness to achieve greater economies of scale, while identifying new markets with strong demographics and high potential for macro growth where we can establish our brand quickly and scale our operations.
−Removed: We remain committed to investing with discipline for strong returns and profitability as we continue to build a robust pipeline for future growth.
−Removed: When choosing new sites for our pipeline, we use a data-driven, cross-functional, and collaborative approach to align each new location with our organizational strengths and capabilities so that each new Shack can provide the ideal opportunity for guests to receive a consistent, convenient, and compelling Shake Shack experience.
−Removed: We utilize tools that collect and analyze demographic and traffic data for both existing and potential sites, and operational data for our markets.
−Removed: In fiscal 2024, we took steps to elevate our team and tools and further developed our market planning, including data analytics, forecasting, and site mapping.
−Removed: We continued to build a team that can execute on our strategy and create robust growth.
−Removed: Towards this effort, we have an in-house data analytics team that has developed modeling tools to better understand our business needs and provide our real estate teams with the insights necessary to successfully expand our footprint.
−Removed: We also moved to working directly with local brokers to assist our in-house team of experienced real estate professionals in selecting locations and building our real estate pipeline.
−Removed: We continue to pursue sites aligned with our broader development strategy, including standardizing designs, innovating our formats, and maintaining our hallmark guest experience while expanding convenience.
+Added: We continued to expand our Company-operated footprint with 45 new-Shack openings for the year, our largest class of openings to date.
+Added: These openings advanced our disciplined growth strategy and extended our presence across a broader set of markets, particularly outside the Northeast.
+Added: As we grow, we remain focused on building a scalable foundation that supports our long-term opportunity, including our target to reach approximately 1,500 Company-operated Shacks, reflecting significant whitespace across both established and new U.S.
+Added: As of December 31, 2025 we had 373 Company-operated Shacks.
+Added: Building a Scalable Pipeline
+Added: Throughout 2025, we strengthened the capabilities that underpin our development strategy.
+Added: Our real estate team continued to leverage data analytics, traffic and demographic insights, and stronger developer partnerships, and expanded local brokerage relationships to support high-quality site selection.
+Added: We anticipate that these efforts will contribute to a strong future pipeline and reinforce our ability to deploy capital efficiently as we scale.
+Added: We made further progress in reducing development costs and delivered approximately 20% reduction in net cost-to-build for the year, despite continued inflationary pressures across the industry.
+Added: In fiscal 2025, average investment cost was approximately $2.3 million, or approximately $1.9 million net of tenant improvement allowances received from our landlords.
+Added: We lowered our build costs by implementing further standardization, including our first free-standing drive thru prototype.
+Added: We further refined key building systems, improving the cost profile on finishes, as well as making meaningful improvements to interior furniture, kitchen equipment optimization, signage, and mechanical, electrical, and plumbing systems across all formats.
+Added: Gross investment cost of a new Shack, which includes costs related to leasehold improvements, furniture, fixtures and equipment ranged from approximately $1.6 million to $4.1 million in fiscal 2025.
+Added: Shacks opened in fiscal 2025 took between 15 and 51 weeks to build.
+Added: One Shack experienced an extended build time largely due to landlord and utility company delays.
+Added: Excluding this Shack, the Shack class of 2025 took between 15 and 37 weeks to build.
+Added: Shacks opened in fiscal 2024 took between 14 and 39 weeks to build.
+Added: In fiscal 2026, we look forward to unlocking further opportunities for improving on how we build our Shacks including continuing our efforts to maintain our build cost structure and deliver strong cash-on-cash return across accelerated growth in new Shacks.
Executing a Multi-Format Strategy
We are focused on creating a balanced portfolio of Shacks across multiple formats and improving how we build our Shacks.
−Removed: We continue to build our Shacks with a premium look and feel, while being more efficient with our level of investment.
−Removed: In fiscal 2024, the average investment cost was approximately $2.8 million, or approximately $2.4 million net of tenant improvement allowances received from our landlords, achieving a decrease of roughly 7.7% compared to the prior year.
−Removed: We lowered our build costs with structural redesigns including moving from steel to wood construction, improving the cost profile on finishes, as well as making meaningful improvements to interior furniture, kitchen equipment optimization, signage, and mechanical, electrical, and plumbing systems.
−Removed: The gross investment cost of a new Shack, which includes costs related to leasehold improvements, furniture, fixtures and equipment ranged from approximately $1.7 million to $4.6 million.
−Removed: Shacks opened during fiscal 2024 took between 14 and 39 weeks to build, compared to 16 and 56 weeks in the prior year.
−Removed: In fiscal 2025, we look forward to unlocking further opportunities for improving on how we build our Shacks — including continuing our efforts to lower build costs — in order to enable accelerated growth in new Shacks.
−Removed: We are innovating our formats and developing prototypes that will create an improved guest and team member experience, while lowering costs and delivering strong returns on capital.
−Removed: Our efforts have included refining our existing formats, creating linear kitchen designs, and standardizing our production models.
−Removed: We have also made strides in our efforts to improve build timelines, including transitioning to an in-house design team, streamlining our permits and entitlement processes, and creating a more robust and effective procurement strategy, all with the goal of ensuring more consistent and efficient new Shack opening timelines.
−Removed: All of our improvements to productivity are being made to ensure that we can support higher throughput, ensure greater order accuracy, and reduce our total experience time as we look to continue to deliver on a consistent guest experience across all of our formats.
−Removed: This will afford us the opportunity to expand with continued improvement to our returns and profitability.
−Removed: Our teams are working to optimize our drive-thru format, which will be an opportunity for us as we look to increase our total addressable market.
−Removed: We remain encouraged by the drive-thru opportunity and continue to refine and improve the model overall for guests and team members alike.
−Removed: We are particularly excited to see drive-thrus in our strong coastal markets, including New Jersey and California, where we generally expect higher brand awareness.
−Removed: As of December 25, 2024, we had 42 drive-thru Shacks in operation.
+Added: In 2025, we continued to refine our multi-format approach, including core urban locations, suburban drive-thrus, small-format Shacks, and select flagship experiences.
+Added: Innovation remained central to this strategy, with meaningful progress in kitchen design, equipment optimization, and standardized production models, all aimed at unlocking higher throughput and improved unit-level performance.
+Added: Our first-of-its-kind Shack at The Battery in Atlanta showcased the benefits of this work, featuring a new equipment package, operational enhancements, and a broadened beverage platform, including a full bar, that delivered strong volumes.
Optimizing our Portfolio
−Removed: In addition to investments in new Shacks, we also undertook projects to renovate and refresh some of our existing Shacks.
−Removed: We deployed capital towards updating our current Shacks in order to maintain an optimal portfolio, including facility maintenance, renovations, and further investing in our digital infrastructure.
−Removed: As our Shacks continue to age, we will need to make additional investments to keep them operating effectively.
−Removed: We continued to invest in expanding our facilities and asset management teams and refining our investment strategies and processes to maintain our maturing portfolio.
−Removed: We also made additional improvements to our kiosks by adding functionalities that enhance the user experience and improve their reliability and availability.
+Added: Alongside our investments in new Shacks, we continued to reinvest in our existing Shacks to maintain operational excellence and deliver consistent guest experiences.
+Added: In 2025, we deployed capital towards facility upgrades, remodels, and ongoing digital enhancements, including improvements to kiosk functionality and reliability.
+Added: As our portfolio expands and matures, these reinvestments remain central to sustaining high standards across our system, supporting strong operations, guest experience
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+Added: and sales growth.
+Added: Together, our development, innovation, and operational initiatives position us to continue driving long-term growth and attractive unit-level economics across our Company-operated footprint.
Growing Our Licensed Shack Business
−Removed: In addition to expanding the footprint of our Company-operated Shacks, we see additional opportunities to continue growing our licensed portfolio.
−Removed: To date, our licensed business has been an asset-light and high-return strategy for growing our brand awareness, expanding our footprint, and increasing cash flow.
+Added: Our licensed business continues to serve as a key driver for enhancing brand visibility through iconic flagships in major cities around the world.
+Added: During 2025, we expanded our global footprint through disciplined partner selection and strong performance from both new and existing markets.
As of December 31, 2025 we had 286 licensed Shacks in operation.
−Removed: We opened new licensed Shacks in 13 countries, including five in China and Hong Kong, four in South Korea, and four in Mexico.
−Removed: We opened our first Shacks in three new countries, Canada, Israel, and Malaysia.
−Removed: We look forward to deepening our footprint in these markets and are optimistic about future expansion opportunities both within and beyond these new markets.
−Removed: While we remain highly confident in the long-term trajectory of our licensed business and are excited about our growth, conditions remain volatile and ever-changing and we expect that macroeconomic and geopolitical headwinds could continue to present challenges in 2025.
−Removed: During fiscal 2024, we permanently closed six of our international licensed Shacks.
−Removed: We opened five licensed Shacks domestically, including at St.
−Removed: Louis Lambert International Airport and Boston Logan International Airport, two in roadway travel plazas in New York, and a second location in St.
−Removed: Louis in Enterprise Center.
−Removed: Our domestic licensed Shacks continue to perform well due to strong travel volumes across U.S.
−Removed: airports and roadways, and we believe that these formats remain a growth opportunity for the licensed business.
−Removed: The enduring strength of our brand creates opportunities to bring Enlightened Hospitality to guests in new and innovative ways.
−Removed: In particular, we are excited by our new partnership with Delta Air Lines that launched in late 2024, through which Shake Shack will be served aboard limited domestic flights.
−Removed: Through learnings from our licensed partnerships, we are able to share insights with the broader Company and we continue to work with our licensees to navigate macroeconomic uncertainty, inflationary challenges, and geopolitical pressures around the globe.
−Removed: Thanks to our roots in New York City and the success of our licensed Shacks, we continue to attract interest from potential licensees from many different markets.
+Added: Internationally, fiscal 2025 was marked by continued expansion, format development, and menu innovation.
+Added: We opened 36 new licensed Shacks across 12 countries, including four in China and Hong Kong, where new product introductions, most notably our first-ever fish sandwich, generated significant guest adoption and informed subsequent product rollouts.
+Added: Growth in Canada, Japan, and other regions exceeded expectations, and we signed several new long-term development agreements, including a plan to open 15 Shacks in Vietnam with Maxim's and a 12-Shack partnership in Panama with Grupo Attie–Multifood Enterprises.
+Added: During fiscal 2025, we permanently closed three of our international licensed Shacks.
+Added: Domestically, we opened four licensed Shacks and expanded our footprint in major airports, travel plazas, and high-traffic entertainment venues, benefiting from strong demand driven by elevated leisure and business travel.
+Added: Our partnership with Delta Air Lines grew meaningfully in 2025, with Shake Shack now served in select routes across flights originating from 13 domestic airports via First Class pre select and supported by strong guest feedback.
+Added: In addition, we executed new licensing agreements with Union MAK Corporation to bring Shake Shack to Hawaii and also with PENN Entertainment to bring Shake Shack to 10 U.S.
+Added: casino properties, expanding our nontraditional format growth and aligning with our strategy of entering high-volume destinations through experienced operators.
+Added: During fiscal 2025, we permanently closed one of our domestic licensed Shacks.
At Shake Shack, we believe our success depends upon maintaining efficient and nimble operations.
−Removed: Just as we invest in our menu items, digital offerings, drive-thru and in-Shack experience, we take special care to ensure our supply chain, distribution, quality assurance and management information systems are constantly being evaluated and streamlined to ensure cohesiveness.
−Removed: Focus on Profitability
−Removed: Profitability is vital to our success and impacts our ability to grow.
−Removed: To maximize profitability, our Shacks must be fully staffed, operating at full capacity with optimized throughput to capture maximum sales potential.
−Removed: In fiscal 2024, we continued to make significant investments in our operations as well as digital and technology initiatives to support our current Shacks and those to come.
−Removed: We focused on improving our profitability through our strategy of identifying and executing on operational efficiencies to reduce the total cost to serve, and invested more in marketing strategies to drive sales and increase brand awareness.
−Removed: We invested in building our data and guest recognition capabilities to allow for more personalized marketing opportunities to drive more conversion and consideration, and focused on sales initiatives that target our own, more profitable channels.
−Removed: Further, our teams have balanced product innovation with pricing to mitigate inflation and technology implementations to supplement our strategic sales promotions.
−Removed: We have also reduced build costs, optimized labor, deployed supply chain initiatives, and unlocked other opportunities within other operating expenses such as repair and maintenance costs.
−Removed: We also made the difficult decision to close nine Shacks that were not projected to provide acceptable returns in the foreseeable future, in part due to changes in the trade area and the negative impact on other Shacks within their proximity by cannibalizing sales.
−Removed: We believe these closures will allow us to better focus our resources and we believe there are several opportunities to continue to grow long-term profitability and are focusing our efforts on these strategies to execute in 2025 and beyond.
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−Removed: Management Information Systems
−Removed: Our Company-operated Shacks use computerized point-of-sale and back-office systems designed for the restaurant industry.
−Removed: We use many customized features to increase operational effectiveness, improve internal communication, enhance data analysis, and maintain our focus on an exceptional guest experience.
−Removed: The point-of-sale system uses a touch screen interface, graphical order confirmation display, touch screen kitchen display and integrated, high-speed credit card and gift card processing.
−Removed: This system also collects daily transaction data, which generates information about sales, product mix and average transaction size.
−Removed: From there, our back-office systems assist in the management of our Company-operated Shacks and provide real-time revenue, labor, and food cost management tools.
−Removed: These tools provide the home office and operations management quick, easy access to detailed business data, and allow our teams to spend less time addressing administrative needs.
−Removed: In fiscal 2024, we engaged in efforts to automate many of the manual processes existing within our back-office systems, with the goal of creating time-saving and value-adding efficiencies.
−Removed: The automations we implemented are designed to improve accuracy, provide better insights and improve decision making tools.
−Removed: In addition, we have continued to expand our data warehouse to improve data insights, better facilitate informed decision making across the organization, and empower our operations teams with tools to better run our Shacks.
−Removed: We expect to continue expanding the data warehouse and improving our information technology infrastructure to better serve our business needs and accommodate growth.
−Removed: We also undertook efforts to improve and upgrade our front-of-house technologies, with a focus on enhancing the guest experience.
−Removed: We rolled out improvements across all of our ordering channels to create a simplified experience when redeeming offers.
−Removed: In addition, we launched new kiosk functionalities designed to promote cross-sale, offer opt-in to marketing messaging, ease the check-out process, and enhance the overall user experience.
−Removed: We have also made continued investments into the reliability and availability of our kiosks and will continue equipping our Company-operated Shacks with kiosks and increasing usage of them.
−Removed: As cybersecurity continues to be a challenge, our focus remains on enhancing cyber maturity with a combination of end user training, third-party tooling and services, updated policies and benchmarking.
−Removed: During fiscal 2024, we continued to see elevated levels of cyber attacks including phishing, malware and bot attacks.
−Removed: We upgraded our information technology systems to better protect guests as they interact on our digital platforms.
−Removed: In addition, as artificial intelligence becomes more prevalent, we have taken steps to safeguard our Company and enhance our systems.
−Removed: We have introduced a business use policy for artificial intelligence.
+Added: Just as we invest in our menu items, digital offerings, drive-thru and in-Shack experiences, we take special care to ensure our supply chain, distribution, quality assurance and management information systems are constantly being evaluated and streamlined to ensure cohesiveness.
+Added: Optimize Restaurant Operations
+Added: We continue to drive profitability through a focus on developing our team members, reinforcing performance accountability, and executing with operational excellence.
+Added: In fiscal 2025, we strengthened the foundation of our business by executing on initiatives that improved efficiency, operational consistency, and the overall guest experience.
+Added: We implemented a performance scorecard that drives accountability and visibility across our Shacks, helping to drive improvements in guest experience and overall profitability.
+Added: To ensure that our teams are equipped to provide exceptional service, we invested in tools that empower our teams to operate more efficiently, including smarter scheduling systems and targeted coaching.
+Added: These efforts have contributed to stronger performance across key operational metrics, including labor optimization, speed of service, and order accuracy.
+Added: As we continue to strengthen productivity and operational discipline, we are also seeing corresponding improvements in guest experience metrics.
+Added: We remain focused on identifying and executing opportunities to streamline our operations, including optimizing staffing levels, refining processes, and consistently delivering an elevated guest experience.
Sourcing and Supply Chain
−Removed: We pride ourselves on sourcing premium ingredients from partners who share our dedication to quality, such as 100% all-natural proteins with no added hormones or antibiotics, that are humanely raised and source-verified.
+Added: We pride ourselves on sourcing premium ingredients from partners who share our dedication to quality, such as 100% all-natural proteins with no added hormones, that are humanely raised and source-verified.
We are currently sourcing 100% cage-free eggs across our domestic supply chain.
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Our domestic regional strategy for ground beef production is designed to help ensure we consistently serve freshly ground beef at our domestic Shacks.
−Removed: As of December 25, 2024, we have nine approved raw beef suppliers and nine approved ground beef processors in the U.S.
−Removed: who produce our burgers on a daily basis.
−Removed: To ensure quality, we maintain strict standards for selecting and contracting domestic suppliers for our major ingredients, including beef patties, chicken, crinkle cut fries, potato buns, custard, portobello mushrooms and cheese sauce.
−Removed: During fiscal 2024, we purchased our (i) ground beef patties from 10 approved ground beef processors, with approximately 40% of our ground beef patties from one supplier;
−Removed: (ii) chicken breasts from two suppliers;
−Removed: (iii) potato buns from two suppliers;
−Removed: (iv) custard base from four suppliers;
−Removed: (v) 'Shroom Burgers from one supplier;
−Removed: (vi) crinkle cut fries from three suppliers;
−Removed: and (vii) ShackSauce from one supplier.
−Removed: We believe we have developed a reliable supply chain, but have also taken strides to identify alternative sources to help lessen the possible interruptions of service and product, including testing with new suppliers.
+Added: As of December 31, 2025, we have 11 approved raw beef suppliers and seven approved ground beef
Shake Shack Inc.
Form 10-K | 8
+Added: processors in the U.S.
+Added: who produce our burgers on a daily basis.
+Added: To ensure quality, we maintain strict standards for selecting and contracting domestic suppliers for our major ingredients, including beef patties, chicken, crinkle cut fries, potato buns, custard, portobello mushrooms and cheese sauce.
+Added: We believe we have developed a reliable supply chain, but have also taken strides to identify alternative sources to help mitigate business risk and optimize costs, including diversifying our supplier base and supplier footprint, and optimizing logistics.
+Added: As Shake Shack continues to grow, we aim to refine ingredients and products to improve consistency and reduce back of house labor inputs, unlock transportation and logistics efficiencies, and enhance sourcing discipline through structured bid processes.
+Added: Refer to "Risks Related to Our Growth Strategies and Operations", in Item 1A, Risk Factors , for additional information relating to our suppliers.
We have a centralized distribution process with one distributor, which we refer to as our "broadline" distributor, to provide nearly all of our food distribution services in the U.S.
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As of December 31, 2025, we were utilizing 20 affiliated distribution centers to supply our Company-operated Shacks.
−Removed: We recognize that the safety and consistency of our products begins with our suppliers, and therefore, we require our suppliers must meet certain criteria and strict quality control standards in the production and delivery of our food and other products.
+Added: We recognize that the safety and consistency of our products begins with our suppliers, and therefore, we require our suppliers to meet certain criteria and strict quality control standards in the production and delivery of our food and other products.
Additionally, we regularly evaluate our broadline distributor to ensure the products we purchase conform to our standards and contracted prices are fair and competitive.
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We conduct quarterly, third-party food safety assessments of our Shacks, utilize technology to manage and document food safety procedures, and ensure appropriate corrective actions are implemented for any noncompliance findings.
−Removed: In fiscal 2024, we implemented new technology designed to digitize our food safety specifications, improving our capabilities to maintain consistent food safety procedures.
+Added: In fiscal 2025, we implemented Belltower Instant Recall System, an industry-leading system for communicating product recalls from supplier to distributor to restaurant level.
+Added: The implementation of this system improves our ability to react to and communicate any ingredient recalls with our Shacks.
We have a comprehensive supplier and ingredient selection process, and we maintain a list of approved suppliers that meet our standards.
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Environmental Responsibility
−Removed: We focus on environmental responsibility across our operations, including with respect to our ingredients, where we are committed to sourcing our premium ingredients from suppliers who share our values.
−Removed: We remained dedicated in our efforts to reduce our environmental footprint by using streamlined and minimal packaging elements and continued to use more sustainable, certified packaging materials whenever possible.
−Removed: We track and calculate scope 1 and scope 2 greenhouse gas emissions to report in compliance with industry standards, in order to assess our current standing.
+Added: We focus on environmental responsibility across our operations, including with respect to ingredients, where we are committed to sourcing premium ingredients from like-minded suppliers.
+Added: We remain dedicated in our efforts to reduce our environmental footprint by using streamlined and minimal packaging elements and continue to use more sustainable, certified packaging materials whenever possible.
+Added: We track and calculate scope 1 and scope 2 greenhouse gas emissions to publicly report in compliance with industry standards and assess our emissions year-over-year.
+Added: Management Technology Services
+Added: During fiscal 2025, we advanced our digital guest experience, operator tools, and underlying technology platforms to support scalable growth and enhance operational performance.
+Added: On the guest-facing side, we introduced behavior-based promotions, strengthened guest recognition on kiosks, and improved the digital ordering experience.
+Added: Foundational improvements to kiosk performance, fraud prevention, and development processes further increased scalability of our digital platform.
+Added: Shake Shack Inc.
+Added: Form 10-K | 9
+Added: advanced our enterprise operational and analytics strategy to strengthen data-driven decision-making across the organization.
+Added: We further advanced the technology backbone that supports enterprise operations and restaurant systems.
+Added: As cybersecurity threats continue to increase in sophistication and frequency, we remained focused on strengthening our cyber maturity and safeguarding guest and Company data and continue to invest in our security and technology infrastructure and enhancing threat detection capabilities.
+Added: As artificial intelligence becomes more embedded in business operations, we expanded our governance framework for artificial intelligence technologies, including updating our business-use policy and implementing guardrails that promote responsible adoption in alignment with emerging regulatory expectations.
The restaurant industry is highly competitive and fragmented, with restaurants competing on a variety of fronts, including taste, price, food quality, service, location and the ambiance and condition of the restaurant.
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For more information regarding the risks we face from our competitors, see "Risks Related to Operating in the Restaurant Industry — We face significant competition for guests, and if we are unable to compete effectively, our business could be adversely affected" in Item 1A, Risk Factors .
−Removed: Shake Shack Inc.
−Removed: Form 10-K | 14
We see ourselves as well-positioned to continue our market growth, as we believe consumers will keep seeking higher quality offerings, especially given an increasing consumer focus on responsible sourcing, ingredients and preparation.
Additionally, we place a focus on culinary innovation to ensure our menu offerings stand out from those of our competitors.
−Removed: We believe that many consumers want to associate with brands whose ethos matches their own, and that Shake Shack, with our purpose to Stand For Something Good and our culture of Enlightened Hospitality, reflects the values of conscientious consumers.
+Added: We believe that many consumers want to associate with brands whose ethos matches their own, and that Shake Shack, with our purpose to Stand For Something Good, reflects the values of conscientious consumers.
INTELLECTUAL PROPERTY
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Our proprietary products include the burger recipe for our specific blend, our patty grinding specifications and the product formulations.
−Removed: We've developed several product formulations including our ShackSauce, 'Shroom Burger, chicken breast, chicken bites, chicken breading, buttermilk herb mayo, cheese sauce, unflavored custard base, vanilla custard base, chocolate custard base, as well as certain toppings and custard mix-ins.
+Added: We've developed several product formulations including our ShackSauce, 'Shroom Burger, chicken breast, chicken bites, chicken breading, buttermilk herb mayo, cheese sauce, unflavored custard base, vanilla custard base,
+Added: Shake Shack Inc.
+Added: Form 10-K | 10
+Added: chocolate custard base, as well as certain toppings and custard mix-ins.
We also have exclusive arrangements with our suppliers of crinkle cut fries, ShackMeister Ale, Shack Red wine, Shack White wine, Shack Rosé wine, hot dogs and cherry peppers.
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Year-over-year and quarter-to-quarter results can also be impacted by the number and timing of new Shack openings.
−Removed: Shake Shack Inc.
−Removed: Form 10-K | 15
INFORMATION ABOUT OUR EXECUTIVE OFFICERS
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49 Chief Executive Officer and Director
−Removed: Fogertey 41 Chief Financial Officer
Stephanie Sentell
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Lynch is a graduate of the University of Rochester, where he obtained his B.A.
−Removed: Fogertey has served as our Chief Financial Officer since June 2021.
−Removed: Prior to joining Shake Shack, Ms.
−Removed: Fogertey spent 16 years at Goldman Sachs, where she served as Vice President & Lead Equity Analyst for the Restaurant sector.
−Removed: In this position, she had a heavy focus on the impact of technology on restaurant profitability and market share and built various statistical forecasting models.
−Removed: She additionally developed deep relationships and unique insights into the largest peers in our industry, and currently serves as a Member of the Society of Fellows for the Culinary Institute of America.
−Removed: Prior to covering the Restaurant sector, Ms.
−Removed: Fogertey was a Vice President, Lead Derivative Strategist overseeing single stock options in the U.S.
−Removed: and Latin America as well as global ETFs and market structure.
−Removed: Fogertey has a BSBA in Accounting, Finance and International Business from Washington University in St.
−Removed: Louis, Olin School of Business.
Stephanie Sentell has served as Shake Shack’s Chief Operations Officer since July 2024.
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Sentell held the position of SVP Restaurant Operations & Innovation at Inspire Brands.
−Removed: Sentell served as SVP Restaurant Excellence as well as SVP Product Development and Menu Delivery at Arby's Restaurant Group.
+Added: Sentell served as SVP Restaurant Excellence as well as SVP
+Added: Shake Shack Inc.
+Added: Form 10-K | 11
+Added: Product Development and Menu Delivery at Arby's Restaurant Group.
Sentell also spent over 11 years at Dairy Queen as the Director of Marketing and a franchisee owner.
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We webcast our earnings calls and certain events we participate in or host with members of the investment community on our investor relations website.
−Removed: Additionally, we provide notifications of news or announcements regarding our financial performance,
−Removed: Shake Shack Inc.
−Removed: Form 10-K | 16
−Removed: including SEC filings, investor events, and press and earnings releases as part of our investor relations website.
+Added: Additionally, we provide notifications of news or announcements regarding our financial performance, including SEC filings, investor events, and press and earnings releases as part of our investor relations website.
Investors and others can receive notifications of new information posted on our investor relations website in real time by subscribing to email alerts.
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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.