UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934

Filed by the Registrant ☒    Filed by a Party other than the Registrant ☐

Check the appropriate box:

☐

Preliminary Proxy Statement

​

☐

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

​

☒

Definitive Proxy Statement

​

☐

Definitive Additional Materials

​

☐

Soliciting Material Pursuant to §240.14a-12

​

(Exact name of registrant as specified in its charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

☒

No fee required.

​

☐

Fee paid previously with preliminary materials.

​

☐

Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.

​

To Our Stockholders:

You are cordially invited to attend the 2025 Annual Meeting of Stockholders of Shake Shack Inc., which will be held virtually on June 4, 2025, at 9:00 a.m. Eastern time. The Annual Meeting can be accessed by visiting www.virtualshareholdermeeting.com/SHAK2025, where you will be able to listen to the meeting live, submit questions, and vote online. We believe that a virtual stockholder meeting provides greater access to those who may want to attend and therefore have chosen this over an in-person meeting.

Instructions regarding how to attend the meeting online and details concerning the matters expected to be acted upon at the meeting are described in detail in the accompanying Notice of Annual Meeting of Stockholders and Proxy Statement.

Your vote is important. Please cast your vote as soon as possible over the Internet, by telephone, or by completing and returning the enclosed proxy card in the postage-prepaid envelope so that your shares are represented. Your vote will mean that you are represented at the Annual Meeting regardless of whether or not you join the meeting. Returning the proxy card does not deprive you of your right to attend the meeting online and to vote your shares during the Annual Meeting.

We look forward to your attendance at the meeting.

Sincerely

/s/ Robert Lynch
Robert Lynch
Chief Executive Officer

SHAKE SHACK INC.
225 VARICK STREET,
SUITE 301 NEW YORK,
NEW YORK 10014

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

To Our Stockholders:

NOTICE IS HEREBY GIVEN that the 2025 Annual Meeting of Stockholders of Shake Shack Inc. will be held virtually on June 4, 2025, at 9:00 a.m. Eastern time. The Annual Meeting can be accessed by visiting www.virtualshareholdermeeting.com/SHAK2025, where you will be able to listen to the meeting live, submit questions, and vote online for the following purposes:

1.

To elect the three directors named in the Proxy Statement as Class I director candidates of Shake Shack Inc., each to serve for three years and until his or her successor has been elected and qualified, or until his or her earlier death, resignation or removal.

​

2.

To ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2025.

​

3.

To conduct an advisory vote on the compensation of our Named Executive Officers.

​

4.

To transact such other business as may properly come before the meeting or any adjournment or postponement hereof.

​

The foregoing items of business are more fully described in the Proxy Statement accompanying this Notice.

Beginning on or about April 24, 2025, we will send to our stockholders a Notice of Internet Availability of Proxy Materials with instructions on how to access our proxy materials over the Internet, how to vote your shares and how to attend the Annual Meeting virtually. If you did not receive such Notice electronically, you may elect to receive future notices, proxy materials and annual reports electronically through the Internet by following the instructions in this Proxy Statement. Only stockholders of record at the close of business on April 14, 2025 are entitled to notice of, and to vote at, the meeting or any adjournment or postponement thereof.

By Order of the Board of Directors

/s/ Ron Palmese
Ron Palmese
Chief Legal Officer

New York, New York
April 24, 2025

Whether or not you expect to attend the meeting, please vote via the Internet, by telephone, or complete, date, sign and promptly return a proxy card so that your shares may be represented at the meeting.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE STOCKHOLDER MEETING TO BE HELD ON JUNE 4, 2025: THIS PROXY STATEMENT AND THE ANNUAL REPORT ARE AVAILABLE AT WWW.PROXYVOTE.COM AND INVESTOR.SHAKESHACK.COM.

SHAKE SHACK INC.
Proxy Statement
For the Annual Meeting of
Stockholders To Be Held on June 4, 2025

TABLE OF CONTENTS

i​

[This Page Intentionally Left Blank.]

SHAKE SHACK INC.
225 VARICK STREET,
SUITE 301 NEW YORK,
NEW YORK 10014

PROXY STATEMENT

THE MEETING

The Board of Directors (the “Board of Directors” or the “Board”) of Shake Shack Inc., a Delaware corporation (“Shake Shack” or the “Company”), is soliciting proxies for use at the 2025 Annual Meeting of Stockholders (the “Annual Meeting”) to be held virtually on June 4, 2025, at 9:00 a.m. Eastern time. The Annual Meeting can be accessed by visiting www.virtualshareholdermeeting.com/SHAK2025, where you will be able to listen to the meeting live, submit questions, and vote online. The Notice of Internet Availability of Proxy Materials was first furnished to stockholders on or about April 24, 2025. Electronic copies of this Proxy Statement and the Annual Report for the year ended December 25, 2024 are available at www.proxyvote.com and investor.shakeshack.com.

Voting Rights, Quorum and Required Vote

Only holders of record of our common stock at the close of business on April 14, 2025 (the “Record Date”) will be entitled to vote at the Annual Meeting. At the close of business on the Record Date, we had 40,221,661 shares of Class A common stock outstanding and entitled to vote and 2,444,789 shares of Class B common stock outstanding and entitled to vote. Holders of the Company’s Class A common stock and Class B common stock are entitled to one vote for each share held as of the Record Date. A quorum is required for our stockholders to conduct business at the Annual Meeting. The holders of a majority in voting power of all issued and outstanding stock entitled to vote at the Annual Meeting, present or represented by proxy, will constitute a quorum for the transaction of business. Your shares are counted as present at the Annual Meeting if you are present and vote online at the Annual Meeting or if you have properly submitted a proxy card. Abstentions and “broker non-votes” ​(as defined below) will be counted in determining whether there is a quorum.

Proposal No. 1 - Election of Directors, directors will be elected by a plurality of the votes of the shares of common stock cast at the Annual Meeting, which means that the three nominees receiving the highest number of “for” votes will be elected. Withheld votes and broker non-votes will have no effect on Proposal No. 1.

Proposal No. 2 - Ratification of Appointment of Independent Registered Public Accounting Firm, requires the affirmative vote of the holders of a majority in voting power of the stock entitled to vote at the Annual Meeting, present at the Annual Meeting or represented by proxy. Abstentions will count the same as votes against Proposal No. 2. There will be no broker non-votes with respect to Proposal No. 2 because a broker may exercise its discretion to vote for or against the proposal in the absence of instruction from its clients.

Proposal No. 3 - Approval (on an advisory basis) of the Compensation of the Named Executive Officers. In order to be approved on an advisory basis, this proposal must receive the affirmative vote of the holders of a majority in voting power of the stock entitled to vote at the Annual Meeting, present at the Annual Meeting or represented by proxy. Abstentions will count the same as votes against Proposal No. 3. Broker non-votes will have no effect on Proposal No. 3.

Voting Your Shares

If you are a registered holder, meaning that you hold our stock directly (not through a bank, broker or other nominee), you may vote online at the Annual Meeting, by telephone or electronically through the Internet by following the instructions included on your Notice of Internet Availability of Proxy

1​

 ​

Materials or proxy card, or by completing, dating, signing and promptly returning your proxy card. All signed, returned proxies that are not revoked will be voted in accordance with the instructions contained therein. Signed proxies that give no instructions as to how they should be voted on a particular proposal at the Annual Meeting will be counted as votes consistent with the recommendations of the Board with respect to such proposal, and, in the case of the election of the Class I directors, as a vote “for” the election of each of the nominees presented by the Board, votes “for” each of Proposal 2 (the ratification of the appointment of our auditors) and Proposal 3 (the say-on-pay vote).

In order to vote via the virtual meeting website, any registered holder can attend the Annual Meeting by visiting www.virtualshareholdermeeting.com/SHAK2025, where stockholders may vote and submit questions during the meeting. The meeting starts at 9:00 a.m. Eastern time. Please have your 16-Digit Control Number to join the Annual Meeting. Instructions on how to attend and participate via the Internet, including how to demonstrate proof of stock ownership, are posted at www.proxyvote.com.

If your shares are held through a bank, broker or other nominee, you are considered the beneficial owner of those shares. You may be able to vote by telephone or electronically through the Internet in accordance with the voting instructions provided by that nominee. You may also vote by completing, dating, signing and promptly returning the voting instruction form sent by that nominee. You must obtain a legal proxy from the nominee that holds your shares if you wish to vote online at the Annual Meeting. If you do not provide voting instructions to your broker in advance of the Annual Meeting, New York Stock Exchange rules grant your broker discretionary authority to vote on “routine” proposals. Where a proposal is not “routine,” a broker who has received no instructions from its clients does not have discretion to vote its clients’ uninstructed shares on that proposal, and the unvoted shares are referred to as “broker non-votes.” For the Annual Meeting, Proposals No. 1 and 3 are not considered “routine” proposals, and Proposal No. 2 is considered a “routine” proposal.

In the event that sufficient votes in favor of the proposals are not received by the date of the Annual Meeting, the Chairman of the Annual Meeting may adjourn the Annual Meeting to permit further solicitations of proxies.

The telephone and Internet voting procedures are designed to authenticate stockholders’ identities, to allow stockholders to give their voting instructions and to confirm that stockholders’ instructions have been recorded properly. Stockholders voting via the telephone or Internet should understand that there may be costs associated with telephonic or electronic access, such as usage charges from telephone companies and Internet access providers, which must be borne by the stockholder.

Information about the Virtual Meeting

The virtual Annual Meeting is accessible on any Internet-connected device and stockholders will be able to submit questions and comments and to vote online during the meeting. We believe that a virtual stockholder meeting provides greater access to those who may want to attend and therefore have chosen this over an in-person meeting. In the event of a technical malfunction or other problem that disrupts the Annual Meeting, the Company may adjourn, recess, or expedite the Annual Meeting, or take such other action that the Company deems appropriate considering the circumstances. If you encounter any difficulties accessing the virtual meeting during the check-in or during the meeting, a technical assistance phone number will be made available on the virtual meeting registration page 15 minutes prior to the start of the meeting.

You may virtually attend the Annual Meeting by visiting www.virtualshareholdermeeting.com/​SHAK2025, where stockholders may vote and submit questions and comments during the meeting. Please have your 16-Digit Control Number to join the Annual Meeting. Instructions on how to attend and participate via the Internet, including how to demonstrate proof of stock ownership, are posted at www.proxyvote.com.

2​

 ​

Only holders of our common stock at the close of business on the Record Date will be permitted to ask questions during the Annual Meeting. If you wish to submit a question, on the day of the Annual Meeting, you may log into the virtual meeting platform at www.virtualshareholdermeeting.com/​SHAK2025, and type your question for consideration into the field provided in the web portal. To allow us to answer questions from as many stockholders as possible, we may limit each stockholder to two (2) questions. Questions from multiple stockholders on the same topic or that are otherwise related may be grouped, summarized and answered together. More information on submitting questions at the Annual Meeting will be posted on the website at www.virtualshareholdermeeting.com/SHAK2025 in advance of the meeting.

In accordance with Delaware law, for the 10 days prior to our Annual Meeting, a list of registered holders entitled to vote at our Annual Meeting will be available for inspection in our offices at 225 Varick Street, Suite 301, New York, New York 10014. Stockholders will also be able to access the list of registered holders electronically during the Annual Meeting through the virtual meeting website at www.virtualshareholdermeeting.com/SHAK2025.

Expenses of Solicitation

The expenses of any solicitation of proxies to be voted at the Annual Meeting will be paid by the Company. Following the original mailing of the proxies and other soliciting materials, the Company and its directors, officers or employees (for no additional compensation) may also solicit proxies in person, by telephone or email. Following the original mailing of the proxies and other soliciting materials, the Company will request that banks, brokers, and other nominees forward copies of the proxy and other soliciting materials to persons for whom they hold shares of common stock and request authority for the exercise of proxies. We will reimburse banks, brokers, and other nominees for reasonable charges and expenses incurred in forwarding soliciting materials to their clients.

Revocability of Proxies

Any person submitting a proxy has the power to revoke such proxy prior to the Annual Meeting or at the Annual Meeting prior to the vote. A proxy may be revoked by a writing delivered to the Company stating that the proxy is revoked, by a subsequent proxy that is submitted via telephone or Internet no later than 11:59 p.m. Eastern time on June 3, 2025, by a subsequent proxy that is signed by the person who signed the earlier proxy and is delivered before or at the Annual Meeting, or by attendance at the Annual Meeting and voting online. If you are a beneficial owner and wish to change any of your previously provided voting instructions, you must contact your bank, broker or other nominee directly.

Delivery of Documents to Stockholders Sharing an Address

We have adopted a procedure approved by the Securities and Exchange Commission (“SEC”) called “householding” under which multiple stockholders who share the same address will receive only one copy of the Annual Report, Proxy Statement, or Notice of Internet Availability of Proxy Materials, as applicable, unless we receive contrary instructions from one or more of the stockholders. If you wish to opt out of householding and receive multiple copies of the proxy materials at the same address, you may do so by contacting Broadridge Financial Solutions at (866) 540-7095, 51 Mercedes Way, Edgewood, New York 11717, Attention: Householding Department, or by notifying us by telephone at (844) 742-2504, by email at investor@shakeshack.com, or by mail at Shake Shack Inc., 225 Varick Street, Suite 301, New York, New York 10014, and Broadridge and we will promptly deliver the requested materials. You also may request additional copies of the proxy materials by notifying us by telephone or in writing at the same telephone number, email address, or mailing address. If you are currently receiving multiple copies of the proxy materials and wish to receive only one copy at the same address, then please notify Broadridge or us by telephone or in writing at the same telephone numbers or addresses above. A number of brokerage firms with account holders have instituted householding. Once a stockholder has consented or receives notice from his or her broker that the broker will be householding materials to the stockholders’ address, householding will continue until the

3​

 ​

stockholder is notified otherwise or until one or more of the stockholders revokes his or her consent. Stockholders with shares registered in the name of a brokerage firm or bank may contact their brokerage firm or bank to request information about householding.

Electronic Delivery of Proxy Materials to Stockholders

Beginning on or about April 24, 2025, we mailed or emailed to our stockholders a Notice of Internet Availability of Proxy Materials with instructions on how to access our proxy materials over the Internet and how to vote. If you received such Notice and would prefer to receive paper copies of the proxy materials, or if you received paper copies of the proxy materials and would prefer to receive a notice for future annual meetings, you may notify us by telephone, email or mail at the telephone number, email address or mailing address provided above.

Our Structure and Certain Defined Terms

Shake Shack was formed for the purpose of facilitating an initial public offering and other related transactions in order to carry on the business of SSE Holdings, LLC and its subsidiaries (“SSE Holdings”). Shake Shack is a holding company with no direct operations and our principal asset is our equity interest in SSE Holdings. We have a majority economic interest in, the sole voting interest in, and control the management of SSE Holdings.

As used in this Proxy Statement, unless the context otherwise requires:

“IPO” refers to the Company’s initial public offering, which closed on February 4, 2015.

“LLC Interests” refers to the single class of common membership interests of SSE Holdings.

“Meyer Group” refers collectively to (i) Daniel Meyer, (ii) the Daniel H. Meyer Investment Trust dated 5/15/92, of which Mr. Meyer is the sole beneficiary (the “Investment Trust”), and (iii) the DHM 2012 Gift Trust, formerly known as the Daniel H. Meyer 2012 Gift Trust (the “Gift Trust”), of which Mr. Meyer’s spouse is a trustee and beneficiary.

Forward-Looking Information

This Proxy Statement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”), which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss management’s current expectations and projections relating to the Company’s financial position, results of operations, strategy, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “future,” “intend,” “likely,” “outlook,” “potential,” “project,” “projection,” “plan,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” the negatives thereof and other similar expressions.

All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made herein in the context of the risks and uncertainties detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2024 filed with the SEC and its other filings with the SEC after that date, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports.

The forward-looking statements included in this Proxy Statement are made only as of the date hereof. We undertake no obligation to publicly update any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

4​

PROPOSAL NO. 1 - ELECTION OF DIRECTORS

The Company’s Board of Directors is presently comprised of ten members who are divided into three classes designated as Class I, Class II and Class III. One class of directors is elected by the stockholders at each annual meeting to serve a three-year term. Class I directors consist of: Daniel Meyer, Anna Fieler (who will not be seeking re-election), Jeff Flug, and Lori George; Class II directors consist of Robert Lynch, Joshua Silverman, and Tristan Walker; and Class III directors consist of Sumaiya Balbale, Charles Chapman III, and Jeffrey Lawrence.

On April 23, 2025, the Company filed a Current Report on Form 8-K to report that Anna Fieler had informed the Board of her intention to step down from the Board effective immediately prior to the Annual Meeting, and to not stand for re-election as a Class I director at the Annual Meeting. Accordingly, the Board determined to reduce the size of the Board from ten to nine directors, effective immediately prior to the Annual Meeting. Following the departure of Ms. Fieler from the Board, the Board will consist of three Class I directors, three Class II directors, and three Class III directors.

Class I directors standing for re-election at the Annual Meeting are Daniel H. Meyer, Jeff Flug, and Lori George. Class II directors will stand for re-election at the 2026 annual meeting of stockholders and Class III directors will stand for re-election at the 2027 annual meeting of stockholders.

Each of the nominees for election to Class I is currently a director of the Company. If elected at the Annual Meeting, each of the nominees would serve for three years and until his or her successor is duly elected and qualified, or until such director’s earlier death, resignation or removal. If any of the nominees is unable to serve or for good cause will not serve (a contingency which the Board does not expect to occur), the proxies will be voted for a substitute nominee chosen by the present Board. In such situation and in any other situation in which a nominee will not serve, the present Board may also (i) reduce the size of the Board or (ii) maintain the size of the Board and the stockholders may vote for a substitute nominee chosen by the present Board to fill the vacancy or vote for just the remaining nominee or nominees, leaving a vacancy or vacancies that may be filled at a later date by the Board.

The names of the nominees for election as Class I directors at the Annual Meeting and of the incumbent and continuing Class II and Class III directors, and certain information about them, including their ages as of the Record Date, are included below.

5​

 ​

​

*

Currently a member of the Compensation Committee. Ms. Fieler will be stepping down immediately prior to the Annual Meeting as a member of the Board and as a member of the Compensation Committee.

​

(1)

Lead Director and a member of the Audit Committee and the Compensation Committee.

​

(2)

Chair of the Nominating and Corporate Governance Committee and a member of the Compensation Committee.

​

(3)

Member of the Audit Committee and the Nominating and Corporate Governance Committee.

​

(4)

Member of the Nominating and Corporate Governance Committee.

​

(5)

Chair of the Compensation Committee and a member of the Audit Committee.

​

(6)

Member of the Compensation Committee and the Nominating and Corporate Governance Committee.

​

(7)

Chair of the Audit Committee.

​

6​

 ​

Nominees for Election as Class I Directors

Daniel Meyer has served as the Chairman of the Board of Directors of Shake Shack since January 2010. Mr. Meyer is the Founder and Executive Chairman of Union Square Hospitality Group (“USHG”), which owns and operates the following restaurants: Union Square Cafe, Gramercy Tavern, Blue Smoke, The Modern, the Cafes at MOMA, Porchlight, Daily Provisions, Ci Siamo and Manhatta; and an event services business, Union Square Events. The restaurants have earned 28 James Beard Awards among them. Mr. Meyer co-authored the best-selling Union Square Cafe Cookbook and authored the New York Times bestseller Setting the Table: The Transforming Power of Hospitality in Business. Mr. Meyer is currently a member of the board of directors of Olo, as well as the not-for-profit Madison Square Park Conservancy. Mr. Meyer previously served as a member of the board of directors of The Container Store from 2013 to 2017, Sotheby’s from 2011 to 2015 and OpenTable from 2000 through 2014, as well as the following not-for-profit organizations: City Harvest, New Yorkers for Parks, Union Square Partnership and NYC & Co.

Key Skills and Experience: Mr. Meyer brings to his service on our Board of Directors a deep understanding of our business derived from his leadership role in our founding and our subsequent growth, his long career in hospitality, and a particular knowledge and experience in strategic planning and leadership of complex organizations, hospitality businesses and board practices of other major corporations.

Jeff Flug has served on the Board of Directors of Shake Shack since January 2010. Mr. Flug has over 25 years of leadership and management experience primarily in the financial industry, as well as in the non-profit sector. After graduating from the University of Massachusetts/Amherst in 1984, with a BBA in Accounting, summa cum laude, Mr. Flug began his career as an accountant at PricewaterhouseCoopers where he attained his CPA in 1986. Mr. Flug attended Columbia Business School, where he received his MBA in Finance in 1988. In 1988, Mr. Flug joined Goldman, Sachs & Co., and ultimately served as a Managing Director and Head of Fixed Income Financial Futures and Options Sales. In 2000, Mr. Flug became the Head of North America Fixed Income Institutional Sales for JPMorgan Chase & Co. In 2006, Mr. Flug served as Chief Executive Officer and Executive Director for Millennium Promise, a not-for-profit organization whose mission is to end extreme poverty and malaria in Africa. Mr. Flug served as USHG’s Chief Financial Officer and Chief Operating Officer from December 2009 until January 2011, and as USHG’s President from January 2011 until his retirement from the company in June 2015. Mr. Flug currently serves as a board member of Pennant Park Investment Corporation and Pennant Park Floating Rate Capital Limited. Mr. Flug previously served as a member of the board of directors of USHG from 2009 until his retirement from the company in June 2015 and Sears Hometown & Outlet Stores and the Mountain School of Milton Academy, both from 2012 until 2015.

Key Skills and Experience: Mr. Flug brings to his service on our Board of Directors a broad-base of financial experience and particular knowledge and experience in strategic planning and leadership of complex organizations as well as risks facing public companies.

Lori George has served on the Board of Directors of Shake Shack since October 2022. Ms. George is the former Global Chief Diversity, Equity and Inclusion (“DEI”) Officer for The Coca-Cola Company (“TCCC”), a role in which she served from October 2018 until March 2022. In that role, Ms. George led TCCC’s DEI Center of Excellence, directed to enable a more engaged global workforce, mirror the markets served, and support a more inclusive culture to best position the employees of TCCC to drive growth. Prior to this role, Ms. George served as the Vice President of Community and Stakeholder Relations for TCCC’s North America Operating Unit from January 2018 through September 2018. Since 2002 when she joined TCCC, Ms. George served in a number of roles at TCCC relating to public affairs, global issues communications, shareowner affairs, community and stakeholder relations, social impact and diversity, equity and inclusion with increasing responsibility. Prior to joining TCCC, Ms. George led her own public relations consultancy, LG Communications; was a vice president at Porter/Novelli, a leading public relations firm where she founded their Multicultural Communications and Alliance Building practices; and a senior public affairs specialist for the District of

7​

 ​

Columbia Government’s Office of Human Rights and Minority Business. Ms. George received her Bachelor of Arts in public relations from Howard University and her Master of Arts in public communications at American University. In 2019, Ms. George completed a 13-month Executive Leadership Experience Program at Harvard Business School and in 2021, Ms. George completed Stanford University Graduate School of Business Directors’ Consortium. Ms. George currently serves on the board of directors of NAACP Foundation and Arete Executive Women of Influence. She is a founding member of TCCC’s Equity Accountability Councils, and a member of the National Association of Corporate Director’s Center for Inclusive Governance Advisory Council, Howard University’s School of Communications Board of Visitors, Executive Leadership Council, OnBoard, International Women’s Forum, Extraordinary Women on Boards, Leadership Atlanta, Black Women on Boards, Public Relations Society of American and The Links, Inc.

Key Skills and Experience: Ms. George brings to her service on our Board of Directors experience in leadership, growth and strategic planning in complex organizations and in developing and implementing breakthrough programs that meet organizational goals.

Incumbent and Continuing Directors

Robert Lynch has served as Shake Shack’s Chief Executive Officer and as a member of the Board of Directors since May of 2024. Prior to Shake Shack, Mr. Lynch served as President and Chief Executive Officer of Papa John’s International, Inc. since August 2019. Prior to joining Papa John’s, Mr. Lynch served in multiple positions within Arby’s Restaurant Group, Inc., including as President from August 2017 to August 2019 and Brand President and Chief Marketing Officer from September 2013 to August 2017. From 2012 until August 2013, Mr. Lynch served as Vice President of Marketing at Taco Bell. Mr. Lynch also held senior roles at H.J. Heinz Company and Procter & Gamble. Mr. Lynch currently serves on the board of directors at Kontoor Brands, Inc. (NYSE: KTB). Mr. Lynch is a graduate of the University of Rochester, where he obtained his BA and MBA.

Key Skills and Experience: Mr. Lynch brings to his service on our Board of Directors extensive quick-service restaurant industry and marketing experience, leading purpose-driven organizations and high-performing teams, and growing successful consumer brands. Mr. Lynch also has a track record of leading brand turnaround and improved profitability.

Joshua Silverman has served on the Board of Directors of Shake Shack since November 2016. Mr. Silverman currently serves as Chief Executive Officer of Etsy, Inc., a position he has held since May 2017. Mr. Silverman served as Executive in Residence for Greylock Partners, a venture capital firm, from October 2015 to April 2017. He previously held this position from October 2010 through June 2011. From June 2011 to December 2015, Mr. Silverman served as President of Consumer Products and Services at American Express. Prior to joining American Express, Mr. Silverman served as Chief Executive Officer of Skype from February 2008 until September 2010. From July 2006 until March 2008, Mr. Silverman served as Chief Executive Officer of Shopping.com, an eBay company, and, from December 2003 until June 2006, Mr. Silverman served as Managing Director of Markplaats.nl & eBay NL, a Dutch subsidiary of eBay. Mr. Silverman is the co-founder of Evite, Inc., and served as its Chief Executive Officer from December 1998 until its sale in May 2001. Mr. Silverman received his BA in Public Policy from Brown University in 1991 and his MBA from Stanford University Graduate School of Business in 1997. Mr. Silverman currently serves on the board of directors of Etsy, Inc., as well as Clubbed Thumb Theater, a not-for-profit organization. He also served on the Consumer Advisory Board of the Consumer Financial Protection Bureau from 2012 to 2015.

Key Skills and Experience: Mr. Silverman brings to his service on our Board of Directors particular knowledge and experience in strategic planning and leadership of complex organizations, including risk and financial management. He also brings meaningful experience in cybersecurity and sustainability.

Tristan Walker has served on the Board of Directors of Shake Shack since June 2020. Mr. Walker is the Founder and was the Chief Executive Officer of Walker & Company Brands, which Mr. Walker founded in 2013 and which merged with Procter & Gamble in December 2018, through June 2023.

8​

 ​

Mr. Walker is also the Founder of Heirloom Management Co., an investment fund which aims to partner with founders of disruptive companies committed to developing culturally connected products and services. Prior to founding Walker & Company Brands, Mr. Walker was an Entrepreneur-in-Residence at Andreessen Horowitz from 2012 to 2013. From 2009 to 2012, Mr. Walker served as the Director of Business Development for Foursquare, where he oversaw strategic partnerships and monetization. In this role, Mr. Walker managed integrations with large brands and media companies including American Express, The New York Times, CNN, MTV, Starwood Hotels & Resorts, and Starbucks. In 2019, Mr. Walker was named one of Fortune Magazine’s 50 “World’s Greatest Leaders.” Mr. Walker has also been named a USA Today Person of the Year, TIME 100 Next, Ebony Magazine’s 100 Most Powerful People, Vanity Fair’s “Next Establishment,” Fortune Magazine’s “40 Under 40,” AdAge “Creative 50,” and Black Enterprise’s “40 Next.” Mr. Walker is a member of the board of directors of Footlocker, Inc. and the Founder of CODE2040, a program that matches high performing Black and Latino undergraduate and graduate coders and software engineering students with Silicon Valley start-ups for summer internships. Mr. Walker holds a bachelor’s degree in economics from Stony Brook University, where he graduated as valedictorian in 2005, and obtained an MBA from the Stanford University Graduate School of Business in 2010.

Key Skills and Experience: Mr. Walker brings to his service on our Board of Directors a broad-based experience and deep knowledge of strategic planning in complex organizations as well as detailed understanding of brand and marketing strategies.

Sumaiya Balbale has served on the Board of Directors of Shake Shack since March 2019. Ms. Balbale currently serves as the Chief Operating Officer for Sequoia Capital, which she joined in June 2020. Ms. Balbale previously served as the Vice President of E-commerce, Mobile and Digital Marketing for Walmart US, from February 2017 until her resignation from the company in February 2019. At Walmart she led e-commerce marketing and transformed the digital media, social media, marketing analytics and marketing technology capabilities of the company. Ms. Balbale joined Walmart after the retailer purchased Jet.com in 2016. At Jet.com she served as the Vice President of Marketing from September 2014 through October 2017, where she led all consumer marketing including brand, acquisition and retention efforts. During the first year of the acquisition, Ms. Balbale continued to operate in a dual capacity for both Jet.com and Walmart. From 2010 through 2014, Ms. Balbale worked for Quidsi, a collection of specialty e-commerce verticals that was acquired by Amazon during her tenure. Ms. Balbale graduated with a BA degree in History from Brown University in 2002, and received her MBA from Harvard Business School in 2009. In 2018, Ms. Balbale was named to Fortune’s 40 under 40 list.

Key Skills and Experience: Ms. Balbale brings to her service on our Board of Directors particular knowledge and experience in e-commerce, mobile and digital marketing as well as digital and social media brand management.

Charles Chapman III has served on the Board of Directors of Shake Shack since July 2023. Mr. Chapman is a seasoned restaurant executive with a strong strategic and operational track record in the industry, with a background in operations, supply chain, development, and marketing. Mr. Chapman was a senior executive at Panera Bread, where he served in several leadership positions from 2011 through 2019, including as (i) Chief Operating Officer, where he was responsible for Company Operations and Franchise Operations, Learning & Development, Retail Human Resources, Operations Tools and Services, and the Bakery Function; (ii) Chief International and Supply Chain Officer; and (iii) Executive Vice President of Development, Information Technology, and Non-Traditional Growth. Before joining Panera, Mr. Chapman also held several leadership positions at International Dairy Queen, including as Chief Operating Officer, Chief Development Officer, and Chief Concept Officer. Prior to Dairy Queen, Mr. Chapman was Chief Operating Officer of Bruegger’s Bagels, and, prior to that, the President and Co-owner of Beantown Bagels, a Bruegger’s Bagels franchisee. Early on, Mr. Chapman held various marketing, finance, and operations roles at Darden Restaurants. Mr. Chapman began his career as an associate consultant and consultant at Bain & Company. Mr. Chapman served as the Chief Executive Officer of Tatte Bakery & Café from 2020 through

9​

 ​

February 2024 and is a Partner in Act III Holdings, LLC, which invests in emerging niches in restaurants and entertainment. Mr. Chapman is currently a member of the board of directors of Taymax and formerly served on the Board of Directors of Cava, Panera Bread, and American Dairy Queen.

Key Skills and Experience: Mr. Chapman brings to his service on our Board of Directors broad public company experience, more than 25 years of senior executive experience in the restaurant industry, and in-depth knowledge of restaurant operations, development, supply chain, franchising, and evolving concepts.

Jeffrey Lawrence has served on the Board of Shake Shack since May 2023. Beginning in 2000, Mr. Lawrence spent more than 20 years at Domino’s Pizza, Inc., the leader in the global pizza industry, including five years as Executive Vice President & Chief Financial Officer. Mr. Lawrence was instrumental in Domino’s successful initial public offering, then the largest restaurant IPO ever, as well as the ground-breaking turnaround of the brand including the technological transformation, global expansion and dramatic increase in store level profitability, all of which led to best-in-class shareholder returns for more than a decade. Mr. Lawrence also previously served on the board of directors of Domino’s master franchisee in China. Subsequent to his time at Domino’s, he served as Chief Financial Officer of FIGS, Inc., a direct-to-consumer apparel brand, where he led its successful initial public offering and partnered to grow significant shareholder value during his tenure, from 2020 to 2021. Mr. Lawrence later served as Chief Financial Officer of ShiftKey, a technology-enabled marketplace connecting licensed professionals to the future of work, a position he held from 2022 to 2023. Mr. Lawrence is currently serving as a Senior Advisor to General Atlantic. Mr. Lawrence began his career in public accounting and is a certified public accountant (registered status) in the State of Michigan. Mr. Lawrence holds an MBA with High Distinction from the Ross School of Business at the University of Michigan as well as a BBA (summa cum laude) from Wayne State University. Mr. Lawrence serves as a member of the board of directors of Xponential Fitness (NYSE: XPOF) and as a member and chair of the board of directors of Joe & the Juice.

Key Skills and Experience: Mr. Lawrence brings to his service on our Board of Directors more than 25 years of experience with particular expertise in the consumer retail and restaurant industries globally as well as in digital and technological transformation, and capital markets.

Anna Fieler has served on the Board of Directors of Shake Shack since December 2017. Ms. Fieler has served as a member of the board of directors of QuinStreet (NASDAQ: QNST) since July 2020, where she serves as a member of the audit committee. Ms. Fieler has also served on the board of J.Crew Group since January 2021 where she serves as a member of the audit committee and the technology investment task force. Ms. Fieler’s additional governance expertise includes having earned the CERT Certificate in Cybersecurity Oversight for public company board directors. Ms. Fieler is currently Founder & Partner of Madison Park Ventures, an investment and advisory firm she founded in 2019, focusing on seed to Series B technology companies that advance well-being, connection and productivity. Ms. Fieler served as Chief Marketing Officer of PopSugar Inc., a leading digital lifestyle media company, from 2014 to 2018. Prior to PopSugar, Ms. Fieler served as the Chief Marketing Officer of Stella & Dot LLC, an online social selling company, from 2011 to 2012. From 2009 to 2011, Ms. Fieler served as Vice President of Marketing at Shutterfly, Inc., the leading e-commerce company for personalized products and custom design, where she led the brand strategy for the company’s portfolio of brands and served as the head of marketing for Tiny Prints, Inc., a subsidiary she helped grow and scale prior to its acquisition by Shutterfly, Inc. Ms. Fieler also served in various leadership roles at eBay Inc. from 2001 to 2007. Ms. Fieler began her career in traditional advertising at Ogilvy & Mather. Ms. Fieler received an MBA from Harvard Business School in 2000 and graduated magna cum laude from Brown University in 1995. She serves on the board of directors of the San Francisco Opera Board. Ms. Fieler will be stepping down from the Board effective immediately prior to the Annual Meeting.

10​

 ​

Key Skills and Experience: Ms. Fieler has brought to her service on our Board of Directors public company board experience, executive experience, cybersecurity oversight experience and in-depth knowledge regarding brand strategy, digital marketing and digital customer experience.

11​

 ​

CORPORATE GOVERNANCE

Composition of our Board of Directors

We are committed to maintaining strong corporate governance practices that promote the long-term interests of the Company and our stockholders and help strengthen the oversight function of our management and Board of Directors. Additional information about our corporate governance policies and practices, including our committee charters, Corporate Governance Guidelines, and our Code of Business Conduct and Ethics can be found on our website under the “Corporate Governance” tab. Additionally, for more information on our commitment to corporate social responsibility and stewardship and other key initiatives, please see our Stand For Something Good Summary, which is discussed in more detail below and posted on our website referenced above. Our website is not part of this Proxy Statement; references to our website address in this Proxy Statement are intended to be inactive textual references only.

The following table highlights some of our key corporate governance practices:

In accordance with our amended and restated certificate of incorporation and the second amended and restated bylaws, our Board of Directors is currently comprised of ten members and is divided into three classes with staggered three-year terms. As discussed in more detail above, the Board will be reduced to nine members immediately prior to the Annual Meeting. At each annual meeting of stockholders, the successors to directors whose terms then expire will be elected to serve from the time of election and qualification until the third annual meeting following election. The authorized number of directors may be changed by resolution of the Board of Directors. Vacancies on

12​

 ​

the Board of Directors can be filled by resolution of the Board of Directors. Daniel Meyer serves as the Chairman of our Board of Directors. We believe the following directors are independent as determined by the rules of the New York Stock Exchange: Sumaiya Balbale, Charles Chapman III, Anna Fieler, Jeff Flug, Lori George, Jeffrey Lawrence, Joshua Silverman, and Tristan Walker.

Daniel Meyer, Anna Fieler, Jeff Flug, and Lori George are the Class I directors and their terms will expire in 2025. Ms. Fieler has announced her intention to step down from the Board effective immediately prior to the Annual Meeting and not stand for re-election at the Annual Meeting.

Robert Lynch, Joshua Silverman, and Tristan Walker are the Class II directors and their terms will expire in 2026.

Sumaiya Balbale, Charles Chapman III, and Jeffrey Lawrence are the Class III directors and their terms will expire in 2027.

When evaluating the designation of our directors into the appropriate class, our Board considers a variety of factors, including the experience and tenure of the directors in each respective class.

We believe that the division of our Board into three classes continues to be the appropriate structure for the Company. This structure, among other things:

•

Promotes stability and continuity, allowing our Board and management to remain focused on our long-term strategic objectives;

​

•

Enhances independence of our non-employee directors by decreasing potential pressures from special interest groups or others who may have motives or interests contrary to the creation of sustainable stockholder value; and

​

•

Allows for the development of institutional knowledge at the Board level, which we believe is important as we continue to grow and develop our business.

​

As noted above, the Nominating and Corporate Governance Committee reviews and considers on a quarterly basis whether our Board structure continues to align with the Company’s long-term strategic objectives, as well as reviews and considers other stockholder rights, all of which the Committee periodically reviews with the Board.

Pursuant to the Stockholders Agreement, described under “Certain Relationships and Related Party Transactions—The IPO and Other Organizational Transactions—Stockholders Agreement,” the Meyer Group is entitled to designate individuals to be included in the slate of nominees recommended by our Board of Directors, for election to our Board of Directors at each annual or special meeting at which directors are to be elected. In 2023, the Stockholders Agreement was amended concurrently with the cooperation agreement to make certain changes, including that the Meyer Group’s right to designate nominees to the Board or committee members will terminate immediately after the 2025 Annual Meeting of Stockholders.

Leadership Structure of the Board of Directors

We have continued to separate the positions of Chairman of the Board and Chief Executive Officer. We believe this arrangement allows our Chief Executive Officer to focus on our day-to-day business, while allowing the Chairman of the Board to lead the Board of Directors in its fundamental role of providing advice to and independent oversight of management. Our bylaws and corporate governance guidelines, which do not require that our Chairman and Chief Executive Officer positions be separate, allow our Board to determine the board leadership structure that is appropriate for us at any given point in time, taking into account the dynamic demands of our business, our senior executive personnel, and other factors.

Lead Director

The Board of Directors created the position of lead director (“Lead Director”) to serve as the lead non-management director of the Board in 2021, after having reviewed the duties and authority of the

13​

 ​

previously named presiding director function. The Lead Director serves in such capacity on an annual basis consistent with the Board’s service year. The Lead Director receives cash equal to $12,500, payable in four equal installments at the conclusion of each of the four quarterly meetings of the Board and additional restricted stock units with a fair value of the date of grant of $12,500, as additional compensation for such position. Mr. Flug was appointed Lead Director through the current director service year.

The Lead Director has the power and authority to: (i) preside at all meetings of non-management directors when they meet in executive session without management participation; (ii) set agendas, priorities and procedures for meetings of non-management directors meeting in executive session without management participation; (iii) report to the Board and senior management concerning those matters discussed in executive session without management participation that require further attention or for which decisions have been made; (iv) generally assist the Chairman of the Board and to serve as liaison between the Chairman and non-management directors; (v) add agenda items to the established agenda for meetings of the Board; (vi) request access to the Company’s management, employees and its independent advisers for purposes of discharging his or her duties and responsibilities as a director; and (vii) retain independent outside financial, legal or other advisors at any time, at the expense of the Company, on behalf of the Board or any committee or subcommittee of the Board.

Communications by Stockholders and Other Interested Parties with the Board of Directors

Stockholders and other interested parties may contact the Lead Director and the Secretary by sending regular mail to the Lead Director and the Secretary, Shake Shack Inc., 225 Varick Street, Suite 301, New York, New York 10014, Attention: Secretary, or by email at investor.shakeshack.com.

Each communication should specify the applicable addressee or addressees to be contacted, as well as the general topic of the communication. We initially will receive and process communications before forwarding them to the addressee. We also may refer communications to other departments at the Company. We generally will not forward to the directors a communication that is primarily commercial in nature, relates to an improper or irrelevant topic, or requests general information regarding the Company.

Board Committees

Our Board of Directors has three standing committees: an Audit Committee, a Nominating and Corporate Governance Committee and a Compensation Committee. Each of these Committees reports to the Board of Directors as appropriate, and as the Board of Directors may request. The composition, duties and responsibilities of these committees are described below. In the future, our Board of Directors may establish other committees, as it deems appropriate, to assist it with its responsibilities.

Pursuant to the terms of the Stockholders Agreement, the Meyer Group has the ability to assign at least one-third, but in no event fewer than one, of the members of each committee of the Board of Directors, provided that the Meyer Group has the right to designate between one and three individuals for nomination to the Board of Directors. This ability will terminate immediately after the 2025 annual meeting of stockholders pursuant to an amendment to the Stockholders Agreement.

Audit Committee

The Audit Committee operates under a written charter adopted by the Board of Directors. The charter contains a detailed description of the scope of the Audit Committee’s responsibilities and how they will be carried out. The Audit Committee’s charter is available on our website at investor.shakeshack.com, under “Governance Documents.” In accordance with its charter, the Audit Committee, among other responsibilities, (i) engages and oversees our independent registered public accounting firm; (ii) reviews and discusses with management and our independent registered public accounting firm the interim and annual financial statements that we file with the SEC and the other

14​

 ​

financial information presented to our stockholders; (iii) reviews with our independent registered public accounting firm the scope and results of their audit; (iv) approves all audit and permissible non-audit services to be performed by our independent registered public accounting firm; (v) reviews and monitors our accounting principles, accounting policies, financial and accounting controls and compliance with legal and regulatory requirements; (vi) reviews our responsibilities with respect to risk assessment and risk management; (vii) establishes procedures for the confidential anonymous submission of concerns regarding questionable accounting, internal controls or auditing matters; (viii) reviews risk assessments from management with respect to our information technology systems and procedures, including cybersecurity, and oversees our cybersecurity risk management processes; and (ix) reviews risk assessments from management with respect to our food safety and quality assurance practices, and oversees our food safety and quality assurance risk management processes.

Our Audit Committee currently consists of Sumaiya Balbale, Jeff Flug, Jeffrey Lawrence, and Joshua Silverman, with Mr. Lawrence serving as chair. As required by Rule 10A-3 of the Exchange Act and the New York Stock Exchange rules, each of Messrs. Flug, Lawrence, and Silverman and Ms. Balbale meets the definition of “independent director” for purposes of serving on an audit committee. In addition, the Board of Directors has determined that each of Messrs .Lawrence and Silverman qualifies as an “audit committee financial expert,” as such term is defined in Item 407(d)(5) of Regulation S-K.

Nominating and Corporate Governance Committee

The Nominating and Corporate Governance Committee operates under a written charter adopted by the Board of Directors. The charter contains a detailed description of the scope of the Nominating and Corporate Governance Committee’s responsibilities and how they will be carried out. The Nominating and Corporate Governance Committee’s charter is available on our website at investor.shakeshack.com, under “Governance Documents.” The primary responsibilities of the Nominating and Corporate Governance Committee are to (i) identify individuals qualified to become members of our Board of Directors, consistent with criteria approved by our Board of Directors and in accordance with the terms of the Stockholders Agreement; (ii) develop and recommend to our Board of Directors a set of corporate governance guidelines and principles; (iii) oversee the evaluation of the Board of Directors; and (iv) review the overall adequacy and effectivenss of, and provide oversight with respect to the Company’s strategies, policies and practices relating to corporate governance, sustainability and social responsibility matters. Our Corporate Governance Guidelines include the membership criteria that apply to nominees recommended for a position on the Board of Directors.

Our Nominating and Corporate Governance Committee currently consists of Charles Chapman III, Lori George, Joshua Silverman, and Tristan Walker, with Ms. George serving as chair. As required by the New York Stock Exchange rules, each of Messrs. Chapman, Silverman and Walker and Ms. George meets the definition of “independent director” for purposes of serving on a nominating and corporate governance committee.

Compensation Committee

The Compensation Committee operates under a written charter adopted by the Board of Directors. The charter contains a detailed description of the scope of the Compensation Committee’s responsibilities and how they will be carried out. The Compensation Committee’s charter is available on our website at investor.shakeshack.com under “Governance Documents.” In accordance with its charter, the primary responsibilities of the Compensation Committee are to (i) review and approve the Company’s executive compensation strategy and in connection with such review, identify and approve the Company’s peer group companies and to establish appropriate targets, as well as the level and mix of compensation elements for executive compensation; (ii) review and approve the corporate goals and objectives with respect to the compensation of the Chief Executive Officer, evaluate the performance of the Chief Executive Officer in light of these goals and objectives, and determine the compensation of the Chief Executive Officer based upon that evaluation; (iii) review and set or make recommendations to the Board of Directors regarding the compensation of other executive officers; (iv) review and make

15​

 ​

recommendations to the Board of Directors regarding director compensation; (v) review and approve or make recommendations to the Board of Directors regarding the Company’s incentive compensation and equity-based plan and arrangements; (vi) ensure an appropriate management development and succession strategy with respect to the Chief Executive Officer, the other executive officers, and senior management; and (vii) review risk assessments from management with respect to the Company’s people practices, including without limitation, recruiting and retention, culture and labor.

Our Compensation Committee currently consists of Sumaiya Balbale, Charles Chapman III, Anna Fieler, Jeff Flug, and Lori George, with Ms. Balbale serving as chair. As required by New York Stock Exchange rules, each of Messrs. Chapman and Flug and Mses. Balbale, Fieler, and George meets the definition of “independent director” for purposes of serving on a compensation committee. Ms. Fieler has informed the Board of her intention to step down from the Board effective immediately prior to the Annual Meeting and Ms. Fieler will not stand for re-election as a Class I director at the Annual Meeting. Ms. Fieler will also step down as a member of the Board’s Compensation Committee effective immediately prior to the Annual Meeting.

Risk Oversight

Our Board of Directors is responsible for overseeing our risk management process. Our Board of Directors focuses on our general risk management strategy and the most significant risks facing us, and oversees the implementation of risk mitigation strategies by management. Our Board of Directors is also apprised of particular risk management matters in connection with its general oversight and approval of corporate matters and significant transactions.

Our Board of Directors does not have a standing risk management committee, but rather we administer this oversight function directly through our Board of Directors as a whole. In particular, our Board of Directors is responsible for monitoring and assessing strategic risk exposure, our Audit Committee is responsible for overseeing our major financial risk exposures and the steps our management has taken to monitor and control these exposures, our Nominating and Corporate Governance Committee is responsible for the oversight of risks associated with our strategies, policies and practices relating to corporate governance, sustainability and social responsibility matters, and our Compensation Committee assesses and monitors whether any of our compensation policies and programs has the potential to encourage unnecessary risk-taking. Our Audit Committee also oversees the performance of our internal audit function and considers and approves or disapproves any related-party transactions. Additionally, our Audit Committee oversees cybersecurity risk as part of its responsibilities for the Company’s risk management approach and structure. The Audit Committee receives quarterly reports from management, including the Director of Information Security who is responsible for leading our governance on information security. The Audit Committee then reports to the Board regarding its activities related to cybersecurity, data privacy and other information technology risks.

In addition, our management has created a Risk Management Oversight Committee, which is responsible for monitoring the Company’s risk environment and providing direction for the activities that are anticipated to mitigate, to an acceptable level, the risks that may adversely affect the Company’s ability to achieve its goals. The Risk Management Oversight Committee facilitates and monitors the implementation of effective risk mitigation steps taken by all Company leaders and assists risk owners in defining target risk exposure and reporting adequate risk-related information throughout the Company. This oversight includes identifying, evaluating, and addressing potential risks that may exist at the enterprise, strategic, financial, operational, compliance and reporting levels. We have also established a business use policy for artificial intelligence to safeguard the Company and enhance our systems.

Risk Considerations in our Compensation Program

We conducted an assessment of our compensation policies and practices for our employees and concluded that these policies and practices are not reasonably likely to have a material adverse effect on the Company. The Company’s compensation program and policies mitigate risk by combining

16​

 ​

performance-based, long-term compensation elements with payouts that are highly correlated to the value delivered to stockholders. The combination of performance measures for annual bonuses and the equity compensation programs for executive officers, as well as the multi-year vesting schedules for equity awards, encourage employees to maintain both a short- and long-term view with respect to Company performance.

Code of Ethics

We have adopted a written Code of Business Conduct and Ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. We have posted a current copy of the code on our website, investor.shakeshack.com. In addition, we intend to post on our website all disclosures that are required by law or the New York Stock Exchange listing standards concerning any amendments to, or waivers from, any provision of the code.

Our website is not part of this Proxy Statement; references to our website address in this Proxy Statement are intended to be inactive textual references only.

Director Recommendations

The Nominating and Corporate Governance Committee, in recommending director candidates, and the Board, in nominating director candidates, will evaluate candidates in accordance with the qualification standards set forth in our Corporate Governance Guidelines, available on our website, investor.shakeshack.com. The Nominating and Corporate Governance Committee and the Board may also consider the additional selection criteria listed in the Corporate Governance Guidelines. These qualification standards and additional selection criteria are summarized below.

Director Qualification Standards

The Nominating and Corporate Governance Committee, in recommending director candidates for election to the Board, and the Board, in nominating director candidates, considers candidates who have a high level of personal and professional integrity, strong ethics and values and the ability to make mature business judgments.

Additional Selection Criteria

The Nominating and Corporate Governance Committee and the Board may also consider the following criteria as well as any other factor that they deem to be relevant:

•

Experience in corporate management, such as serving as an officer or former officer of a publicly held company;

​

•

Experience as a board member of another publicly held company;

​

•

Experience as an executive of a publicly held retail restaurant company;

​

•

Professional and academic experience relevant to the Company’s industry;

​

•

Diversity of skill sets, experiences, backgrounds, and perspectives;

​

•

Strength of the candidate’s leadership skills;

​

•

Experience in finance and accounting and/or executive compensation practices;

​

•

Experience in successfully scaled technology business(es);

​

•

Availability for preparation, participation and attendance at Board meetings and committee meetings;

​

•

Appreciation/understanding of the values of Daniel Meyer’s vision of “Enlightened Hospitality”/​culture/brand strength;

​

17​

 ​

•

International business experience, in particular with respect to franchising or licensing;

​

•

Understanding of technologies pertinent to the Company’s business;

​

•

Experience with raising and deploying capital; and

​

•

Experience in addressing sustainability priorities.

​

In addition, the Board considers whether there are potential conflicts of interest with the candidate’s other personal and professional pursuits.

The Board also monitors the mix of specific experience, qualifications and skills of its directors in order to assure that the Board, as a whole, has the necessary tools to perform its oversight function effectively in light of the Company’s business and structure.

The Company seeks to achieve a mix of Board members that represent a diversity of skill sets, experiences, backgrounds, and perspectives, along with the qualifications set forth above. Although the Board does not establish specific goals with respect to diversity, the Board’s overall diversity is a consideration in the director nomination process.

Stockholder Recommendations

The Nominating and Corporate Governance Committee will consider director candidates recommended by stockholders in the same manner it considers other candidates, but it has no obligation to recommend such candidates. A stockholder that wants to recommend a candidate for election to the Board of Directors should send a recommendation in writing to Shake Shack Inc., c/ o Corporate Secretary, 225 Varick Street, Suite 301, New York, New York 10014. Such recommendation should describe the candidate’s qualifications and other relevant biographical information and provide confirmation of the candidate’s consent to serve as director.

Stockholders may also nominate directors at an annual meeting by adhering to the advance notice procedure described under “Stockholder Proposals” elsewhere in this Proxy Statement.

Prohibitions on Insider Trading and Hedging Transactions

We have adopted an Insider Trading Policy which prohibits the purchase, sale, and other transactions with respect to our equity securities or derivatives by any director, officer and employee that may be in possession of material and non-public information relating to the Company. The Insider Trading Policy provides guidance as to what constitutes material information and when information becomes public. The Insider Trading Policy addresses transactions by family members and under Company plans, as well as other transactions which may be prohibited. The policy discusses the consequences of an insider trading violation, additional trading restrictions and certain reporting requirements applicable to directors, officers and designated key employees. The policy also contains guidelines and requirements related to the establishment of Rule 10b5-1 trading plans. Our Insider Trading Policy is available on our website at investor.shakeshack.com, under “Governance Documents,” and as an exhibit to our Annual Report on Form 10-K filed with the SEC. We have also implemented related processes applicable to the Company that we believe are reasonably designed to promote compliance with insider trading laws, rules and regulations and the NYSE’s listing standards.

Our Insider Trading Policy also precludes all of the Company’s employees, including our named executive officers, along with our directors, from engaging in hedging transactions involving the Company’s equity securities, including short selling, buying exchange-traded put options or call options associated with our stock, transactions relating to zero-cost collars, forward sales contracts, purchases of the Company’s securities on margin, and pledging the Company’s securities as collateral to secure loans. We aim to restrict these transactions because they could serve to “hedge” the risk of owning our stock and otherwise can be highly speculative transactions with respect to our stock.

18​

 ​

Compensation Committee Interlocks and Insider Participation

None of our executive officers currently serves, or in the past year has served, as a member of the Board of Directors or Compensation Committee of any entity that has one or more executive officers serving on our Board of Directors or Compensation Committee.

Family Relationships

There are no family relationships among any of our directors or executive officers.

Director Compensation

The Compensation Committee periodically reviews the director compensation program and its competitiveness relative to the compensation peer group as well as other industry peers.

Our non-employee director compensation policy awards each non-employee director a combination of cash and restricted stock units in consideration for his or her service on our Board of Directors as follows: (A) (1) annual cash compensation equal to $62,500, payable in four equal installments following each of the Board’s quarterly meetings, (2) for the chairperson of each of the Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee, additional annual cash compensation equal to $10,000, $7,500, and $5,000, respectively, payable in four equal installments following each of the Board’s quarterly meetings, and (3) for the Lead Director, cash equal to $12,500, payable in four equal installments following each of the Board’s quarterly meetings; and (B) (1) an annual equity award in the form of restricted stock units with an aggregate grant date fair value of $62,500 granted immediately following the annual meeting of stockholders, and (2) for the chairperson of each of the Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee, an additional annual equity award in the form of restricted stock units with an aggregate grant date fair value of $10,000, $7,500, and $5,000, respectively, and (3) for the Lead Director, an additional annual equity award in the form of restricted stock units with an aggregate grant date fair value of $12,500, granted immediately following the annual meeting of stockholders . With respect to the annual cash compensation, each director may elect to receive all, 75%, or 50% of his or her annual cash compensation in the form of additional restricted stock units. In 2024, we adopted an amended and restated non-employee director compensation policy which includes the option for non-employee directors to defer the settlement of restricted stock units granted in 2025 and thereafter until a specified number of years after the settlement would have otherwise occurred or until the non-employee director’s retirement from our Board (or up to two years thereafter).

The terms of each such annual equity award described above is set forth in a written award agreement between the applicable non-employee director and us, which provides for vesting after one year of continued service as a director, subject to acceleration upon a change of control.

The non-employee director compensation policy may be further amended, modified or terminated by our Board of Directors at any time in its sole discretion.

In addition to the non-employee director compensation policy, the Board approved a revised director stock ownership policy in 2024 to require non-employee directors to hold shares of our Class A common stock and/or LLC Interests with a value equal to or in excess of five times the annual cash compensation payable for Board service. Non-employee directors have a period of five years from the effective date of the policy, or for newly elected directors, five years from the date of their appointment, to achieve the required stock ownership.

19​

 ​

The following table sets forth the cash compensation and equity grant for each of our non-employee directors in fiscal 2024. The awards below were made in accordance with the above compensation amounts.

​

(1)

In fiscal 2024, nine non-employee directors received cash compensation under the non-employee director compensation policy. The fiscal year 2024 includes one quarter of the Board service year that commenced in 2023 and three quarters of the Board service year that commenced in 2024. For the service year that began in 2023, Messrs. Sokoloff and Vivian and Ms. Lyons received cash compensation in respect to their Board service that ended in 2024. Ms. George elected to receive 50% of her cash compensation, prorated due to her appointment during the service year, in the form of equity compensation. For the service year that began in 2024, Messrs. Meyer, Chapman and Lawrence elected to receive their cash compensation in the form of equity compensation.

​

(2)

In fiscal 2024, each non-employee director was awarded equity compensation under the non-employee director compensation policy. Fiscal 2024 awards were granted to Board members as of the date of the 2024 annual meeting held on June 12, 2024.

​

(3)

As of December 25, 2024, the following non-employee directors held unvested restricted stock units as follows: Mr. Meyer - 1,348; Ms. Balbale - 755; Mr. Chapman - 1,348; Ms. Fieler - 674; Mr. Flug - 809; Ms. George - 728; Mr. Lawrence - 1,564; Mr. Silverman - 674; and Mr. Walker - 674.

​

Board and Annual Meetings

During fiscal 2024, the Board of Directors held ten meetings, each of the Nominating and Corporate Governance Committee and the Compensation Committee held five meetings, and the Audit Committee held four meetings. Each of our directors attended at least 75% of the meetings of the Board of Directors and meetings held by any of the committees of the Board on which such director served.

The Company’s directors are expected to attend our Annual Meeting pursuant to our mandatory attendance policy. All of the Company’s directors at the time of the Company’s 2024 annual meeting attended such meeting.

Stand For Something Good Summary

Our purpose is to Stand For Something Good® in all aspects of our business. Stand For Something Good is a call to action for all of our stakeholders—our team, guests, communities, suppliers and investors—and we actively invite them all to share in this philosophy with us. This commitment drives our integration into the local communities in which we operate and fosters a deep and lasting connection with our guests. We are committed to a positive social impact, creating an equitable and inclusive workplace and community and focusing on environmental sustainability. Our Stand For Something Good Summary is available on our website at investor.shakeshack.com, under “Governance Documents.” Our website is not part of this Proxy Statement; references to our website address in this Proxy Statement are intended to be inactive textual references only.

20​

 ​

PROPOSAL NO. 2 - RATIFICATION OF APPOINTMENT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Audit Committee of the Board of Directors has selected Ernst & Young LLP (“EY”) to be the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, and recommends that the stockholders vote for ratification of such appointment. EY has been engaged as our independent registered public accounting firm since September 9, 2014. As a matter of good corporate governance, the Audit Committee has requested the Board of Directors to submit the selection of EY as the Company’s independent registered public accounting firm for fiscal 2025 to stockholders for ratification. In the event of a negative vote on such ratification, the Audit Committee will reconsider its selection. We expect representatives of EY to be present at the Annual Meeting. They will have the opportunity to make a statement at the Annual Meeting if they desire to do so and will be available to respond to appropriate questions.

Audit and Related Fees

The following table sets forth the aggregate fees for various professional services rendered by EY:

​

(1)

Consists of fees for professional services rendered for the audits of the Company’s consolidated financial statements included in its Annual Reports on Form 10-K for fiscal years 2024 and 2023 and for the review of the Company’s interim condensed consolidated financial statements included in its Quarterly Reports on Form 10-Q for fiscal years 2024 and 2023. Fiscal 2023 includes additional fees related to the restatement of prior periods in the 2023 Form 10-K.

​

(2)

Fiscal 2024 consists of fees related to review procedures performed on Forms S-3, S-8 and various system implementations. Fiscal 2023 consists of fees for post-report review procedures performed on Form 10-K/A for fiscal year 2022.

​

Pre-Approval Policy

The Audit Committee’s policy is to pre-approve all audit and permissible non-audit services provided by EY. These services may include audit services, audit-related services, tax services and all other services. Proposed services may either be pre-approved without consideration of specific case-by-case services by the Audit Committee or require the specific pre-approval of the Audit Committee. Unless a type of service has received general pre-approval, it will require specific pre-approval if it is to be provided by EY.

All of the services described above were approved by the Audit Committee.

21​

 ​

PROPOSAL NO. 3 - APPROVE (ON AN ADVISORY BASIS) COMPENSATION OF THE NAMED EXECUTIVE OFFICERS AS DISCLOSED IN THIS PROXY STATEMENT

As required by Section 14A of the Securities Exchange Act of 1934 (the “Exchange Act”), we are providing our stockholders with the opportunity to cast an advisory vote on the compensation of our Named Executive Officers (“NEOs”) as disclosed in this Proxy Statement, including in the section entitled “Compensation Discussion and Analysis,” the compensation tables and other executive compensation disclosures. The advisory stockholder vote to approve NEO compensation is often referred to as the “say-on-pay vote.”

The Compensation Committee believes that compensation of our executive officers in fiscal 2024 met the objectives of our program which were to foster long-term business success using a pay-for-performance philosophy intended to encourage performance and growth and to align the executive officers’ interests with those of our stockholders.

Stockholders are being asked to vote on the following resolution:

RESOLVED, that the stockholders approve the compensation of Shake Shack’s executive officers named in the Summary Compensation Table, as disclosed in Shake Shack’s Proxy Statement dated April 24, 2025, including the Compensation Discussion and Analysis, the compensation tables and other executive compensation disclosures.

Although this say-on-pay vote proposal is advisory and not binding, the Compensation Committee, which is comprised solely of independent directors and is responsible for making decisions regarding the amount and form of compensation paid to our executive officers, will carefully consider the stockholder vote on this matter, along with other expressions of stockholder views it receives on specific policies and desirable actions. In each case, the Compensation Committee will seek to understand the concerns that influenced the vote and address them in making future decisions affecting our executive compensation program.

Please refer to the sections of this Proxy Statement entitled “Compensation Discussion and Analysis” and “Fiscal 2024 Compensation Tables” for a detailed discussion of our executive compensation principles and practices, the fiscal 2024 compensation of our NEOs, and changes implemented in our program for fiscal 2024.

We urge you to read these sections of the Proxy Statement and the related compensation tables closely in determining how to vote on this matter.

22​

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table shows information about the beneficial ownership of our Class A common stock and Class B common stock, as of the Record Date, for:

•

each person known by us to beneficially own more than 5% of our outstanding Class A common stock or Class B common stock, based solely on our review of filings with the SEC pursuant to Section 13(d) or 13(g) of the Exchange Act;

​

•

each of our directors and NEOs; and

​

•

all of our directors and executive officers as a group.

​

The number of shares beneficially owned by each stockholder is determined under rules promulgated by the SEC under which beneficial ownership includes any shares as to which the individual or entity has sole or shared voting power or investment power. In computing the number of shares beneficially owned by an individual or entity and the percentage ownership of that person, shares of common stock subject to options, or other rights held by such person that are currently exercisable or will become exercisable within 60 days of the Record Date, are considered outstanding, although these shares are not considered outstanding for purposes of computing the percentage ownership of any other person. However, in computing the number of shares of Class A common stock beneficially owned by an individual or entity, we do not include LLC Interests, which are exchangeable into Class A common stock, held by such individual or entity because the voting rights represented by the LLC Interests are reflected in the shares of Class B common stock reported for such individual or entity. Unless otherwise indicated, the address of all listed stockholders is c/o Shake Shack Inc., 225 Varick Street, Suite 301, New York, New York 10014. Each of the stockholders listed has sole voting and investment power with respect to the shares beneficially owned by the stockholder unless noted otherwise, subject to community property laws where applicable.

*

Represents beneficial ownership of less than 1%.

​

(1)

Includes the voting power of each owner based on the voting power held through both the owner’s Class A common stock and Class B common stock. Represents percentage of voting power of the Class A common stock and Class B common stock of Shake Shack voting together as a single class.

​

23​

 ​

(2)

Includes: (i) 380,437 shares of Class A common stock held by the Investment Trust, of which Mr. Meyer is the grantor, trustee and beneficiary, (ii) 2,003 shares of Class A common stock that Mr. Meyer currently has the right to acquire through the exercise of stock options, (iii) 1,348 shares of Class A common stock that Mr. Meyer will have the right to acquire within 60 days of the Record Date through the vesting of restricted stock units, (iv) 9,861 shares of Class A common stock held directly, (v) 1,861,057 shares of Class B common stock held by the Gift Trust, of which Mr. Meyer’s spouse is a trustee and beneficiary, and (vi) 1,305,306 shares of Class A common stock held by the Gift Trust. Mr. Meyer disclaims beneficial ownership of all of the shares held by the Gift Trust and the Investment Trust.

​

(3)

Includes 12,888 shares of Class A common stock that Mr. Lynch will have the right to acquire within 60 days of the Record Date through the vesting of restricted stock units.

​

(4)

Based on the Form 4 filed by Mr. Garutti, our former Chief Executive Officer, on December 27, 2023, Mr. Garutti beneficially owns (i) 114,054 shares of Class A common stock, and based on the Form 4 filed by Mr. Garutti on February 22, 2024, Mr. Garutti also beneficially owns (ii) 237,551 shares of Class B common stock, and (iii) 55,972 shares of Class B common stock held by The Randall J. Garutti 2014 GST Trust, of which Mr. Garutti’s spouse is a trustee and beneficiary. Mr. Garutti disclaims beneficial ownership of all of the shares held by The Randall J. Garutti 2014 GST Trust.

​

(5)

Includes 755 shares of Class A common stock that Ms. Balbale will have the right to acquire within 60 days of the Record Date through the vesting of restricted stock units.

​

(6)

Includes 1,348 shares of Class A common stock that Mr. Chapman will have the right to acquire within 60 days of the Record Date through the vesting of restricted stock units.

​

(7)

Includes 674 shares of Class A common stock that Ms. Fieler will have the right to acquire within 60 days of the Record Date through the vesting of restricted stock units.

​

(8)

Includes 809 shares of Class A common stock that Mr. Flug will have the right to acquire within 60 days of the Record Date through the vesting of restricted stock units.

​

(9)

Includes 728 shares of Class A common stock that Ms. George will have the right to acquire within 60 days of the Record Date through the vesting of restricted stock units.

​

(10)

Includes 1,564 shares of Class A common stock that Mr. Lawrence will have the right to acquire within 60 days of the Record Date through the vesting of restricted stock units.

​

(11)

Includes (i) 1,108 shares of Class A common stock that Mr. Silverman has the right to acquire through the exercise of stock options, and (ii) 674 shares of Class A common stock that Mr. Silverman will have the right to acquire within 60 days of the Record Date through the vesting of restricted stock units.

​

(12)

Includes 674 shares of Class A common stock that Mr. Walker will have the right to acquire within 60 days of the Record Date through the vesting of restricted stock units.

​

(13)

Based on a Schedule 13G filed by BlackRock, Inc. on January 22, 2024. According to the Schedule 13G, BlackRock, Inc. has sole voting power, shared voting power, sole dispositive power and shared dispositive power over 6,027,178 shares, 0 shares, 6,158,465 shares, and 0 shares, respectively, of Class A common stock. The principal business office of BlackRock, Inc. is 50 Hudson Yards, New York, NY 10001.

​

(14)

Based on a Schedule 13G filed by The Vanguard Group on February 13, 2024. According to the Schedule 13G, The Vanguard Group has sole voting power, shared voting power, sole dispositive power and shared dispositive power over 0 shares, 69,220 shares, 4,362,731 shares and 104,735 shares, respectively, of Class A common stock. The principal business office of the Vanguard Group is 100 Vanguard Blvd., Malvern, PA 19355.

​

24​

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

Executive Officers

The following table sets forth information regarding the executive officers of the Company as of the Record Date:

Robert Lynch - please see “Proposal No. 1—Election of Directors—Incumbent and Continuing Directors” for Mr. Lynch’s biography.

Effective on May 20, 2024, Robert Lynch joined as our Chief Executive Officer and was appointed as a member of the Board.

Katherine Fogertey has served as Shake Shack’s Chief Financial Officer since June 2021. Prior to joining Shake Shack, Ms. Fogertey spent 16 years at Goldman Sachs, where she recently served as Vice President & Lead Equity Analyst for the Restaurant sector. In this position, she had a heavy focus on the impact of technology on restaurant profitability and market share. She additionally developed deep relationships and unique insights into the largest peers in our industry. Prior to covering the Restaurant sector, Ms. Fogertey was a Vice President, Lead Derivative Strategist overseeing single stock options in the U.S. and Latin America as well as global ETFs and market structure. Ms. Fogertey has a BSBA in Accounting, Finance and International Business from Washington University in St. Louis, Olin School of Business.

Stephanie Sentell has served as Shake Shack’s Chief Operations Officer since July 1, 2024. Prior to joining Shake Shack, Ms. Sentell served as SVP of Company Operations at Inspire Brands. Before that, Ms. Sentell was SVP Restaurant Operations & Innovation at Inspire Brands from June 2020 until April 2023. Ms. Sentell previously served as SVP of Restaurant Excellence of Arby’s Restaurant Group, Inc. from January 2018 until 2020 and prior to that served as SVP Product Development and Menu Delivery from November 2016 until February 2018. Prior to joining Arby’s and Inspire Brands, Ms. Sentell spent over 11 years at Dairy Queen as the Director of Marketing and a franchise owner. Ms. Sentell is a graduate of the University of Wisconsin at River Falls, where she obtained her A.S. in Marketing Communications.

25​

 ​

COMPENSATION DISCUSSION AND ANALYSIS

This section provides a detailed description of our compensation philosophy and practices; our compensation-setting process; our executive compensation program components; and the rationale for compensation decisions made in 2024 with respect to our NEOs. For the fiscal year ended December 25, 2024, our NEOs were:

Executive Summary

We are proud of the results our team members delivered in fiscal 2024, as we grew Total revenue 15.2% with 3.6% same-Shack sales growth and expanded Restaurant-level profit margin due to the success of our strategies, including growing sales and improving our operations. During fiscal 2024, we opened 34 net domestic Company-operated Shacks, and 27 net licensed Shacks.

Please refer to our fiscal 2024 Annual Report on Form 10-K for a discussion of our business, operations and development, including our digital evolution, new Shack openings, and financial statements, as well as a discussion of our human capital management.

Financial Highlights

•

Total revenue for fiscal year 2024 increased 15.2% to $1,252.6 million versus the prior year.

​

•

Shack sales for fiscal year 2024 increased 15.4% to $1,207.6 million versus the prior year.

​

•

Same-Shack sales(1) increased 3.6%, for fiscal year 2024 versus the prior year.

​

•

Licensing revenue for fiscal year 2024 increased 10.7% to $45.0 million versus the prior year.

​

•

System-wide sales(2) increased 13.0% to $1,922.7 million, versus the prior year.

​

•

Operating income for fiscal year 2024 was $3.0 million compared to $5.9 million versus the same period last year.

​

•

Restaurant-level profit(3), a non-GAAP measure, was $257.9 million, or 21.4% of Shack sales for fiscal year 2024.

​

•

Net income was $10.8 million for fiscal year 2024 compared to $21.0 million for the same period last year.

​

•

Adjusted EBITDA(4), a non-GAAP measure, was $175.6 million for fiscal year 2024, compared to $131.8 million for the same period last year.

​

•

Net income attributable to Shake Shack Inc.   was $10.2 million, or earnings of $0.24 per diluted share for fiscal year 2024, compared to $20.3 million, or earnings of $0.48 per diluted share for the same period last year.

​

•

Adjusted pro forma net income(5), a non-GAAP measure, was $40.5 million, or earnings of $0.92 per fully exchanged and diluted share for fiscal year 2024, compared to $16.2 million, or earnings of $0.37 per fully exchanged and diluted share, for the same period last year.

​

26​

 ​

(1) Same-Shack sales represents Shack sales for the comparable Shack base, which is defined as the number of domestic Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shacks were temporarily closed, the comparative period was also adjusted.

(2) System-wide sales is an operating measure and consists of sales from Company-operated Shacks and licensed Shacks. The Company does not recognize the sales from licensed Shacks as revenue. Of these amounts, revenue is limited to licensing revenue based on a percentage of sales from licensed Shacks, as well as certain up-front fees, such as territory fees and opening fees.

(3) Restaurant-level profit, formally referred to as Shack-level operating profit, is defined as Shack sales less Shack-level operating expenses which include Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses. Please refer to the “Non-GAAP Financial Measures” section on pages 62-66 of our Annual Report on Form 10-K filed on February 21, 2025 for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

(4) Adjusted EBITDA is defined as Net income (loss) before Interest expense (net of interest income), Income tax expense (benefit) and Depreciation and amortization expense and excluding equity-based compensation expense, Impairments, loss on disposal of assets and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that we do not believe directly reflect our core operations and may not be indicative of our recurring business operations. Please refer to the “Non-GAAP Financial Measures” section on pages 62-66 of our Annual Report on Form 10-K filed on February 21, 2025 for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

(5) Adjusted pro forma net income (loss) represents Net income (loss) attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests for shares of Class A common stock, adjusted for certain non-recurring items that we do not believe are directly related to our core operations and may not be indicative of our recurring business operations. Adjusted pro forma earnings (loss) per fully exchanged and diluted share is calculated by dividing adjusted pro forma net income (loss) by the weighted average shares of Class A common stock outstanding, assuming the full exchange of all outstanding LLC Interests, after giving effect to the dilutive effect of outstanding equity-based awards. Please refer to the “Non-GAAP Financial Measures” section on pages 62-66 of our Annual Report on Form 10-K filed on February 21, 2025 for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

Say-on-Pay and Stockholder Engagement

At our 2024 Annual Meeting, we asked our stockholders to vote to approve, on an advisory basis, the compensation of our NEOs. Our stockholders overwhelmingly approved the compensation paid to our NEOs, with over 90.5% of votes cast in favor of our say-on-pay resolution. We value this positive endorsement by our stockholders of our executive compensation policies. As we evaluated our compensation practices for fiscal 2024, we were mindful of the strong support our stockholders expressed for our pay-for-performance philosophy, and the Compensation Committee and the Board considered the outcome of the vote when setting our compensation policies for 2024. The Board and the Compensation Committee will consider the future stockholder advisory votes of our stockholders, including the vote that will take place at the 2025 Annual Meeting, when we make compensation decisions for our NEOs in the future. Consistent with the recommendation of our stockholders at our 2024 annual meeting, the Company’s Board of Directors determined that the Company will hold non-binding advisory votes to approve the compensation of the Company’s named executive officers every year until the next required advisory vote on the frequency of future advisory votes for the compensation of the Company’s named executive officers.

Executive Compensation Practices—Governance

Below are our current practices and policies that guide our executive compensation program. We believe the following items promote good corporate governance and are in the best interests of our stockholders and NEOs:

•

Our Compensation Committee is comprised of fully-independent directors;

​

•

We cap short-term cash incentive award payouts to mitigate risk;

​

•

We maintain stock ownership guidelines for our Directors and NEOs;

​

•

We do not provide significant perquisites;

​

•

We prohibit hedging, short sales, and pledging of Company stock; and

​

•

We hold an annual say-on-pay vote.

​

27​

 ​

What Guides Our Program

Compensation Philosophy and Objectives

Our executive talent and executive compensation philosophy enables us to attract well-qualified executives and to motivate and reward them for business results and leadership behaviors that drive our business strategy. We are committed to a pay-for-performance culture that includes high standards of ethical behavior and corporate governance.

The objective of our executive compensation program is to attract, retain, and motivate individuals who share in our dedication to our community and are committed to our purpose, Stand For Something Good. We believe that competitive executive compensation packages that consist of both fixed and variable pay in the form of base salaries, short-term cash incentive opportunities, and long-term equity incentives that vest over a multi-year period enable us to achieve those objectives and align the compensation of our executive officers with our performance and long-term value creation for our stockholders.

Elements of Compensation

Our compensation philosophy is supported by the following principal elements of pay:

How We Make Compensation Decisions

The Compensation Committee oversees the executive compensation program of our NEOs and is made up of independent, non-employee directors of the Board. The Compensation Committee works very closely with management to evaluate the effectiveness of the Company’s executive compensation program throughout the year. The Committee’s specific responsibilities are set forth in its charter, which can be found on the Company’s website at investor.shakeshack.com, under “Governance Documents.”

Role of the Compensation Committee

The Compensation Committee makes all final compensation and equity award decisions regarding our NEOs. In setting compensation for our NEOs, the Compensation Committee considers the relative amount of compensation that is delivered on a current and long-term basis and in the form of cash and equity. The combination of performance measures for short-term cash incentives and the equity compensation programs for executive officers, as well as the multi-year vesting schedules for equity awards, encourage key employees to maintain both a short-term and a long-term view with respect to Company performance. The compensation arrangement for each of our NEOs is intended to encourage performance and growth and to align the NEOs’ interests with those of our stockholders. The Compensation Committee’s primary responsibilities include:

•

Reviewing and approving incentive plans and performance objectives;

​

•

Assessing each NEO’s performance relative to these targets and objectives;

​

28​

 ​

•

Evaluating the competitiveness of each NEO’s total compensation package;

​

•

Approving changes to a NEO’s compensation package, including base salary, and short-term and long-term incentive opportunities and awards; and

​

•

Designing executive compensation plans and programs.

​

Role of the CEO

Our CEO plays a significant role in reviewing the performance of our executive officers (other than his own) and making compensation recommendations to the Compensation Committee. The CEO’s responsibilities include:

•

Reviewing the performance of other executive officers and making recommendations with respect to their compensation to the Compensation Committee; and

​

•

Working closely with members of senior management to provide input to the Compensation Committee on performance targets and compensation and benefit program design and development.

​

The CEO does not participate in the deliberations of the Compensation Committee regarding his own compensation. Independent members of the Board make all final determinations regarding CEO compensation.

Competitive Positioning

The Company competes with business entities across multiple industries for executive-level talent. To this end, the Compensation Committee periodically evaluates industry-specific and general market compensation practices and trends to ensure that our program and NEO pay opportunities remain appropriately competitive. The Compensation Committee compares each component of the total compensation package to the compensation components of comparable executive positions of a peer group of publicly traded companies (the “Peer Group”). The companies comprising the Peer Group were selected based on the following considerations:

•

Business dynamics;

​

•

Geographic dispersion;

​

•

Workforce dynamics; and

​

•

Brand equity and company culture.

​

The Compensation Committee selected the following 11 companies for the 2024 Peer Group as they are of similar size and scope based on measures of current and projected total revenues, enterprise values, market capitalization, brand equity and industry and operating alignment.

29​

 ​

​

(1)

Total Revenue, Enterprise Value and Market Cap are as of 12/31/2024 or most recent fiscal year ending in 2024.

​

As a result of the NEO transitions in 2024, our Compensation Committee conducted a secondary review of the Peer Group and approved the 13 companies below (the “Updated Peer Group”). The Compensation Committee used similar criteria noted above, with additional emphasis on the restaurant industry as well as the scale of our financial and operating targets.

​

(1)

Total Revenue, Enterprise Value and Market Cap are as of 12/31/2024 or most recent fiscal year ending in 2024.

​

Consideration of competitive compensation data is one of several factors that the Compensation Committee takes into account when making its decisions with respect to the compensation of our NEOs. For purposes of gauging market position, the Compensation Committee reviews data obtained from publicly available information such as the proxy statements of publicly traded companies, compensation survey data and other published reports on executive compensation, and the general knowledge of the Compensation Committee with regard to the market for executive-level positions.

We believe that market data should be interpreted within the context of other important factors and should not solely be relied upon in setting the target pay levels of our NEOs. As a result, the Compensation Committee also reviews a variety of other factors including individual performance, competencies, skills, future potential, prior experience, scope of responsibility and accountability within the organization.

30​

 ​

2024 Executive Compensation Program in Detail

Base Salary

We provide competitive base salaries to our NEOs to compensate them for services rendered to the Company. Base salaries provide a fixed component of compensation reflecting the executive’s skills, expertise, leadership contributions and day-to-day performance. The annual review of NEO compensation that occurred in the first half of fiscal 2024 was limited to Ms. Fogertey as Mr. Garutti had previously announced his resignation. The Compensation Committee reviewed total direct compensation for Ms. Fogertey against Peer Group NEO compensation as well as other competitive benchmark detail. This review revealed the base pay for Ms. Fogertey was below the competitive range of the Peer Group. Accordingly, the Compensation Committee approved a market adjustment as well as a merit-based increase due to Ms. Fogertey’s performance.

As a result of the appointments of Mr. Lynch and Ms. Sentell in the first half of 2024, the Compensation Committee conducted a secondary review of NEO compensation. To ensure competitive alignment with the Updated Peer Group and recognize performance during the leadership transitions in 2024, the Compensation Committee approved an additional base salary increase for Ms. Fogertey.

Note: This table represents annualized amounts for Messrs. Lynch and Garutti and Mses. Fogertey and Sentell as of the end of fiscal 2024. As noted above, Ms. Fogertey’s base salary was increased to $600,000 effective 6/27/2024.

Short-Term Cash Incentive Plan Design

The NEOs are entitled to receive short-term performance-based cash bonuses, the amount of which is based on satisfaction of Company objectives that are approved by the Board of Directors. Cash incentives reward both the achievement of short-term financial targets, as well as the execution of activities to advance our strategic and operational priorities, which support near-term financial performance and long-term strategic objectives.

Target short-term incentive opportunities are expressed as a percentage of base salary, earned during the applicable performance period and are based on the individual NEO’s level of responsibility and ability to impact the business results. As a result of the annual review of NEO compensation that occurred in the first half of fiscal 2024, the Compensation Committee determined to increase the short-term incentive target for Ms. Fogertey for the 2024 fiscal year to align with the competitive market position of the Updated Peer Group.

As a result of the secondary review of NEO compensation and to ensure competitive alignment with the Updated Peer Group and internal equity, the Compensation Committee approved an additional increase in the short-term incentive target for Ms. Fogertey.

Below are the annualized threshold, target and maximum award levels approved by the Compensation Committee.

31​

 ​

Note: Ms. Fogertey received an increase to her short-term incentive target to 75% effective for the 2024 fiscal year with an additional adjustment to 100% effective 6/27/2024.

2024 Short-Term Cash Incentive Plan Performance Metrics

The Compensation Committee initially approved Total Revenue and Adjusted EBITDA to be the performance metrics for the 2024 Short-Term Cash Incentive Plan to be measured on a semi-annual basis, and these performance metrics continued to apply to Ms. Fogertey’s 2024 Short-Term Cash Incentive Plan.

In connection with his appointment as CEO, the Compensation Committee approved Adjusted EBITDA, Restaurant-level Profit Margin and same-Shack sales to be the performance metrics, for Mr. Lynch’s 2024 Short-Term Cash Incentive Plan. These metrics are weighted 50%, 25% and 25%, respectively, and were measured on an annual basis and pro-rated from his effective date of employment.

In connection with her appointment as COO, the Compensation Committee approved semi-annual Total Revenue, semi-annual Adjusted EBITDA and semi-annual Restaurant-level Profit Margin to be the performance metrics for Ms. Sentell’s 2024 Short-Term Cash Incentive Plan. These metrics are weighted 33.5%, 33.5% and 33%, respectively, and were measured on a semi-annual basis based on the commencement date of Ms. Sentell’s employment.

​

(1)

For purposes of the Short-Term Cash Incentive Plan, the Company defines Adjusted EBITDA as net income (loss) before Interest expense (net of interest income), Income tax expense and Depreciation and amortization expense (collectively, EBITDA), excluding equity-based compensation expense, Impairments, loss on disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that do not directly reflect core operations and may not be indicative of recurring business operations. Adjusted EBITDA performance is calculated excluding all performance-based bonuses.

​

(2)

For purposes of the Short-Term Cash Incentive Plan, the Company defines same-Shack sales as Shack sales for the comparable Shack base, which is defined as the number of Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shack were temporarily closed, the comparative period is adjusted. Shack sales is defined as the aggregate sales of food, beverages, and Shake Shack branded merchandise at Company-operated Shacks and gift card breakage income. To measure performance on this metric, we calculate the weighted-average of each fiscal month’s same-Shack Sales percentage throughout the measurement period weighted for the number of weeks in each fiscal month, with the exception of periods with a 53rd week as the 53rd week is excluded from same-Shack Sales calculations.

​

32​

 ​

(3)

For purposes of the Short-Term Cash Incentive Plan, the Company defines Restaurant-level profit margin as Shack sales less Shack-level operating expenses, including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses as a percentage of Shack sales. To measure performance on this metric, we measure the cumulative Restaurant-level profit dollars generated over the measurement period divided by the cumulative Shack sales generated over the measurement period. For Ms. Sentell, this is measured on a semi-annual basis.

​

(4)

For purposes of the Short-Term Cash Incentive Plan, the Company defines Total Revenue as revenue, inclusive of revenue from Company-operated Shacks and licensing revenue from international and domestic licensed Shacks.

​

2024 Short-Term Cash Incentive Plan Payout

The Short-Term Cash Incentive Plan payout is determined by the achievement of the performance metrics approved by the Board of Directors. The table below summarizes the annualized threshold, target, and maximum performance achievement levels and the respective payout results for fiscal 2024.

Note: If performance is achieved at a level between the threshold and target or between target and maximum, the payout level is determined through straight-line interpolation.

(1) The actual achievement corresponds to a payout of the target value of 116.1% for Mr. Garutti and Ms. Fogertey.

(2) The actual achievement corresponds to a payout of the target value of 129.0% for Ms. Fogertey and Ms. Sentell for the weighting of these metrics.

(3) The actual achievement corresponds to a payout of the target value of 112.3% for Mr. Lynch across all metrics. For Ms. Sentell, payout was awarded on the actual achievement on the Restaurant-level Profit Margin per the plan design. For the weighting of this metric, the actual achievement corresponds to a payout of the target value of 110%.

33​

 ​

The total amounts of the short-term cash incentives paid to each NEO for fiscal 2024 performance are shown in the table below:

Note: Target annual incentive value is calculated as a percentage of base salary. In the case of Mr. Garutti, both the target amount and payout amount reflects the pro-rated incentive based on his resignation date. For Mr. Lynch and Ms. Sentell, the amounts reflect the pro-rated incentive based on their respective hire dates. For Ms. Fogertey, this amount reflects the pro-rated incentive target of 75% effective with the 2024 fiscal year with an additional adjustment to 100% effective 6/27/2024.

Other Awards

Cash Bonus to Mr. Lynch

Pursuant to Mr. Lynch’s employment agreement and as an inducement for him to join the Company, Mr. Lynch was entitled to receive a cash award equal to a pro rata amount of 150% of his annual base salary, which was payable within 30 days following the conclusion of fiscal 2024 if he remained employed through the date of payment. This award was paid in fiscal 2025.

Cash Bonus to Ms. Sentell

Pursuant to Ms. Sentell’s employment agreement and as an inducement for her to join the Company, Ms. Sentell received a cash award of $750,000, which was paid shortly after her commencement of employment and is subject to repayment if she is terminated by the Company for Cause or resigns without Good Reason within 12 months following the date on which the cash award was paid.

2025 Short-Term Incentive Plan Design

For fiscal 2025, our NEOs will be measured and awarded cash bonuses based on the achievement of the Company’s annual performance across the three key financial performance metrics of Adjusted EBITDA, Restaurant-level profit margin, and same-Shack Sales which are weighted 50%, 25% and 25%, respectively.

Long-Term Incentives

We provide our NEOs with long-term incentive awards under our 2025 Incentive Award Plan (the “2025 Plan”), which is an amendment and restatement of our 2015 Incentive Award Plan (the “2015 Incentive Plan”). Awards under the 2015 Plan and the 2025 Plan are intended to align the interests of our NEOs with those of our stockholders and to create a link between executive pay and long-term stockholder value creation. Awards earned by our NEOs in connection with the 2015 Plan and the 2025 Plan are subject to service conditions and, at times, also subject to performance conditions.

2024 Long-Term Incentive Plan Design

Annual Equity Awards

In March 2024, consistent with the Company’s practice of granting equity awards annually, the Compensation Committee granted time-based restricted stock units (“RSUs”) and performance-based

34​

 ​

restricted stock units (“PSUs”) to only Ms. Fogertey as Mr. Garutti had announced his resignation prior to the grant. RSUs represented 50% of the award value which vest ratably over a four-year period and are subject to her continued employment with us through the applicable vesting date. PSUs represented the remaining 50% of the award value which are earned based on the achievement of two, equally weighted, predetermined financial metrics measured over a one-year performance period which is the 2024 fiscal year and vest ratably over four years subject to her continued employment with us through the applicable vesting date. The Compensation Committee determined that a one-year performance period measuring Total Revenue and Adjusted EBITDA was appropriate due to the appointment of Mr. Lynch and the potential impacts of our long-term business goals. See below sections for equity awards granted to Mr. Lynch and Ms. Sentell.

​

(1)

For purposes of the annual PSU, the Company defines Total Revenue as revenue, inclusive of revenue from Company-operated Shacks and licensing revenue from international and domestic licensed Shacks.

​

(2)

For purposes of the annual PSU, the Company defines Adjusted EBITDA as net income before deducting: (A) interest, (B) taxes, (C) depreciation and (D) amortization, and excluding certain non-cash and other items not considered in the Company’s evaluation of ongoing operating performance, including equity-based compensation expense, non-cash deferred rent charges, executive transition costs and certain non-recurring charges. Adjusted EBITDA performance is calculated excluding all performance-based bonuses.

​

PSUs are earned to the extent the Company achieves the Total Revenue and Adjusted EBITDA performance metrics over the annual performance period. Earned PSUs will vest, subject to the continued employment with the Company, ratably over a four-year period commencing on the first anniversary of the grant date.

The number of PSUs earned is a percentage, ranging from 0% to 200%, of Ms. Fogertey’s PSU Target amount. In 2025, the Compensation Committee certified the following results.

Based on these results, Ms. Fogertey earned the followings PSU awards for fiscal 2024, which vest according to the provisions described above.

Note: The number of target awards were determined based on the closing share price of Shake Shack Class A common stock on the date of grant.

CEO Annual Equity Awards

In May 2024, in connection with Mr. Lynch’s appointment and pursuant to his employment agreement, the Compensation Committee granted RSUs and PSUs to Mr. Lynch. The RSUs were granted with a grant date fair value of $2,000,000 and vest ratably over a four-year period on the anniversary of the grant date and are subject to Mr. Lynch’s continued employment through the applicable vesting dates. The PSUs were granted with a grant date fair value of $3,000,000 and vest on the fourth anniversary of the grant date subject to his continued employment on such date and are

35​

 ​

earned based on the achievement of predetermined financial metrics measured over a three-year cumulative performance period from fiscal 2024 through fiscal 2026, with a maximum payout opportunity of 200%. The metrics and weightings of this PSU are:

​

(1)

For purposes of the CEO annual PSU, the Company defines Adjusted EBITDA as net income (loss) before Interest expense (net of interest income), Income tax expense and Depreciation and amortization expense (collectively, EBITDA), excluding equity-based compensation expense, Impairments, loss on disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that do not directly reflect core operations and may not be indicative of recurring business operations. Adjusted EBITDA performance is calculated excluding all performance-based bonuses.

​

(2)

For purposes of the CEO annual PSU, the Company defines same-Shack Sales as Shack sales for the comparable Shack base, which is defined as the number of Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shack were temporarily closed, the comparative period is adjusted. Shack sales is defined as the aggregate sales of food, beverages, and Shake Shack branded merchandise at Company-operated Shacks and gift card breakage income. To measure performance on this metric, we calculate the weighted-average of each fiscal month’s same-Shack Sales percentage throughout the measurement period weighted for the number of weeks in each fiscal month, with the exception of periods with a 53rd week as the 53rd week is excluded from same-Shack Sales calculations.

​

(3)

For purposes of the CEO annual PSU, the Company defines Restaurant-level profit margin as Shack sales less Shack-level operating expenses, including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses as a percentage of Shack sales. To measure performance on this metric, we measure the cumulative Restaurant-level profit dollars generated over the measurement period divided by the cumulative Shack sales generated over the measurement period.

​

CEO Sign-on Equity Awards

In May 2024, in connection with Mr. Lynch’s employment agreement and as an inducement for him to join the Company, the Compensation Committee granted Mr. Lynch sign-on RSUs and PSUs.

The RSUs were granted with a grant date fair value of $1,600,000 and will vest ratably over a two-year period on the anniversary of the grant date and are subject to Mr. Lynch’s continued employment through the applicable vesting dates. The PSUs were granted with a grant date fair value of $4,200,000 and are earned based on the achievement of four predetermined financial metrics, measured over a three-year period from May 23, 2024 through the vesting date of May 26, 2027 with a maximum payout opportunity of 200%. The metrics and weightings of this PSU are:

​

(1)

For purposes of the CEO sign-on PSU, the Company defines Adjusted EBITDA as net income (loss) before Interest expense (net of interest income), Income tax expense and Depreciation and amortization expense (collectively, EBITDA), excluding equity-based compensation expense, Impairments, loss on disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that do not directly reflect core operations and may not be indicative of recurring business operations. Adjusted EBITDA performance is calculated excluding all performance-based bonuses.

​

(2)

For purposes of the CEO sign-on PSU, the Company defines same-Shack Sales as Shack sales for the comparable Shack base, which is defined as the number of Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shack were temporarily closed, the comparative period is adjusted. Shack sales is defined as the aggregate sales of food, beverages, and Shake Shack branded merchandise at Company-operated Shacks and gift card

​

36​

 ​

breakage income. To measure performance on this metric, we calculate the weighted-average of each fiscal month’s same-Shack Sales percentage throughout the measurement period weighted for the number of weeks in each fiscal month, with the exception of periods with a 53rd week as the 53rd week is excluded from same-Shack Sales calculations.

(3)

For purposes of the CEO sign-on PSU, the Company defines Restaurant-level profit margin as Shack sales less Shack-level operating expenses, including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses as a percentage of Shack sales. To measure performance on this metric, we measure the cumulative Restaurant-level profit dollars generated over the measurement period divided by the cumulative Shack sales generated over the measurement period.

​

(4)

For purposes of the CEO sign-on PSU, the Company defines TSR as the overall appreciation in the stock price, plus any dividends paid by the Company, during a specified interval; this sum is then divided by the initial purchase price of the stock to arrive at the TSR. As a mathematical equation, TSR is the ending stock price minus the beginning stock price plus dividends divided by the beginning stock price. TSR is measured on Shake Shack Class A common stock relative to the TSR of a peer group of publicly traded companies determined by the Committee as below.

​

COO Sign-on Equity Awards

In July 2024, in connection with Ms. Sentell’s employment agreement and as an inducement for her to join the Company, the Compensation Committee granted Ms. Sentell sign-on RSUs with a grant date fair value of $750,000 and will vest ratably over a four-year period on the anniversary of the grant date, and are subject to Ms. Sentell’s continued employment through the applicable vesting dates.

November 2021 PSU Award

In November 2021, the Compensation Committee granted a special one-time performance based restricted stock award to retain and motivate the management team to achieve strategic, long-term financial metrics. The PSUs were earned based on the achievement of predetermined financial metrics measured over a three-year performance period measured from fiscal 2022 through fiscal 2024, with a maximum payout opportunity of 200% and vested on March 1, 2025. The metrics and weightings of this PSU are:

​

(1)

For purposes of the Special, One-Time PSU, the Company defines Total Revenue as revenue, inclusive of revenue from Company-owned operations and licensing revenue from international and domestic licensed operations.

​

(2)

For purposes of the Special One-Time PSU, the Company defines Adjusted EBITDA as net income before deducting: (A) interest, (B) taxes, (C) depreciation and (D) amortization, and excluding certain non-cash and other items not considered in the Company’s evaluation of ongoing operating performance, including equity-based compensation expense, non-cash deferred rent charges, and certain non-recurring charges. Adjusted EBITDA performance is calculated excluding all performance-based bonuses.

​

37​

 ​

In 2025, the Compensation Committee certified the following results:

Based on these results, Ms. Fogertey earned the following November 2021 PSU award, which vested according to the provisions described above.

Note: Target award amounts for PSUs were determined based on the closing share price of Shake Shack Class A common stock on the date of grant.

2025 Long-Term Incentive Plan Design

For 2025, we are continuing a compensation philosophy that seeks to balance performance-based and time-based long-term equity incentive awards. For fiscal 2025, the Compensation Committee approved the vesting period for the RSU awards to be three years, from four years, to align with peer design practices. The Compensation Committee also approved both the performance and vesting periods for PSU awards to be the following: the performance period is now three years, from one year and the vesting period is now three years from four years, to align with peer design practices and measure long-term, cumulative growth targets. The performance metrics for the PSU award are Total Revenue and Adjusted EBITDA.

Other Compensation and Governance Programs, Policies and Guidelines

Stock Ownership Policy

We have an executive stock ownership policy requiring Mr. Lynch, Ms. Fogertey and Ms. Sentell as of the fifth anniversary of the date of his or her hire to hold shares of our Class A common stock or LLC Interests with a value equal to two times for Mr. Lynch and one times for Mses. Fogertey and Sentell of their respective annual base salaries. Securities that qualify in determining whether Mr. Lynch and Mses. Fogertey and Sentell have satisfied the shareholding requirements include (i) issued and outstanding shares of Class A common stock held beneficially or of record, (ii) issued and outstanding LLC Interests held beneficially or of record, (iii) issued and outstanding shares of Class A common stock or LLC Interests held by a qualifying trust (i.e., a trust created for the benefit of the executive officer, his or her spouse or members of his or her immediate family), (iv) issued and outstanding shares of Class A common stock or LLC Interests held by a 401(k) or other qualified pension or profit-sharing plan for the benefit of the executive officer, and (v) shares of Class A common stock underlying vested Shake Shack time-based stock options and restricted stock units deliverable upon exercise or settlement in full, less tax withholdings and, in the case of stock options, a number of shares of Class A common stock with a value equal to the exercise price thereof.

Clawback Policy

Effective December 1, 2023, upon recommendation of the Compensation Committee, the Board of Directors adopted a new Dodd-Frank Clawback Policy (the “Clawback Policy”) designed to satisfy the NYSE’s listing standards implemented pursuant to the final rule from the SEC under the Dodd-Frank rules. The Clawback Policy applies to the Company’s current and former executive officers and

38​

 ​

provides for the mandatory recovery of certain erroneously awarded Incentive-Based Compensation (as defined in the policy) in the event that the Company is required to prepare an accounting restatement due to material non-compliance with any financial reporting requirements under the federal securities laws.

Employment Agreements

We entered into an amended and restated employment agreement with Mr. Garutti, effective as of October 25, 2018; an employment agreement with Mr. Lynch, effective as of May 20, 2024; an employment agreement with Ms. Fogertey, effective as of June 14, 2021; and an employment agreement with Ms. Sentell, effective as of July 1, 2024. The material terms of such agreements are summarized below.

Pursuant to advice of a tax advisor retained by the Company, effective as of the start of fiscal 2018, Mr. Garutti ceased to be treated as an employee of the Company for tax purposes, while remaining a partner of SSE Holdings. In respect of the period during which he provided services to the Company for income tax purposes, pursuant to his amended and restated employment agreement, Mr. Garutti is entitled to an annual gross-up payment that will leave Mr. Garutti in the same economic position as if he had been classified as an employee for income tax purposes. The gross-up arrangement has had and is expected to have a minimal impact on the Company. The Company also will reimburse Mr. Garutti for any expenses he incurs in connection with calculating his tax obligations pursuant to the amended and restated employment agreement.

Randy Garutti

As previously announced, on January 26, 2024, Randy Garutti, the Company’s former Chief Executive Officer, entered into a Transition and Advisory Agreement (the “Transition and Advisory Agreement”). As previously disclosed, Mr. Garutti retired from the Company effective May 20, 2024 as its Chief Executive Officer and as an executive Board member, and ceased serving as an advisor on December 31, 2024.

The terms of the Transition and Advisory Agreement modified the terms of the Amended and Restated Employment Agreement, entered into on October 23, 2018, between Mr. Garutti and the Company (the “Employment Agreement”).

Pursuant to the Transition and Advisory Agreement, Mr. Garutti continued to serve as the Company’s Chief Executive Officer and as an executive Board member until May 20, 2024 (the “Resignation Date”). Through this time period, Mr. Garutti continued to receive his current compensation and Mr. Garutti received a partial bonus for the first half of 2024 in an amount equal to the product of (A) the actual bonus that he would otherwise have been entitled to receive absent his termination of employment on the Resignation Date and (B) the ratio of (x) the number of days elapsed during the first half of 2024 through the Resignation Date to (y) the number of days elapsed during the first half of 2024. In addition, as consideration for staying through the Resignation Date, Mr. Garutti was entitled to the vesting of the RSUs awarded to Mr. Garutti pursuant to the Company’s 2015 Plan that would have vested if Mr. Garutti was still employed by the Company through March 31, 2025.

Following the Resignation Date and through the end of 2024, Mr. Garutti was to make and did make himself available as an “Advisor” to his successor and the Chairman of the Board in the same capacity that members of the Board currently serve the Chief Executive Officer. As full payment for Mr. Garutti’s services as an Advisor, the Company was to pay and did pay Mr. Garutti a monthly fee equivalent to the monthly fee payable to the Company’s directors pursuant to the Non-Employee Director Compensation Policy.

Robert Lynch

As previously announced, on March 18, 2024, the Board appointed Robert Lynch to serve as the Company’s Chief Executive Officer, effective as of May 20, 2024. In addition, Mr. Lynch has been appointed as a member of the Board, also effective as of May 20, 2024.

39​

 ​

In connection with his appointment, Mr. Lynch entered into an Employment Agreement with the Company The term of Mr. Lynch’s employment will be three (3) years through May 20, 2027, subject to automatic one (1)-year extensions unless either party gives notice of non-extension no later than 90 days prior to the expiration of the then-applicable term.

Mr. Lynch received an initial annual base salary of $1.0 million, subject to annual review by the Board. Mr. Lynch is eligible to receive an annual bonus, semi-annual bonus, or such other periodic bonus as determined by the Board, in each case based on an annualized target bonus opportunity of 150% of his annual base salary, payable upon the attainment of Company performance goals established by the Board (or the Compensation Committee), with the opportunity to make up to 200%, on an annualized basis, of his annualized target bonus opportunity. For fiscal 2024, Mr. Lynch was eligible to receive a pro rata amount of an annual performance-based cash bonus based on a target bonus opportunity of 150% of his annual base salary, payable upon the attainment of Company performance goals established by the Compensation Committee solely for the purposes of determining his 2024 bonus, with the opportunity to make up to 200% of his 2024 target bonus opportunity on a pro-rata basis. Mr. Lynch is also eligible to receive an annual equity award. For fiscal 2024, Mr. Lynch received (i) an annual equity award comprised of restricted stock units for such number of shares of the Company’s Class A common stock as may be determined based on an aggregate grant date fair value of $2.0 million, and (ii) an annual equity award comprised of performance stock units representing the right to receive shares of the Company’s Class A common stock as may be determined based on an aggregate grant date fair value of $3.0 million.

Mr. Lynch also received the following signing awards: (i) a cash award equal to a pro rata amount of 150% of his annual base salary, which was paid in fiscal 2025, (ii) an RSU award comprised of RSUs for such number of shares of the Company’s Class A common stock as may be determined based on an aggregate grant date fair value of $1.6 million, and (iii) a PSU award representing the right to receive shares of the Company’s Class A common stock as may be determined based on an aggregate grant date fair value of $4.2 million.

Stephanie Sentell

As previously announced, on June 20, 2024, the Board appointed Stephanie Sentell to serve as the Company’s Chief Operations Officer, effective as of July 1, 2024.

In connection with her appointment, Ms. Sentell entered into an Employment Agreement with the Company. The term of Ms. Sentell’s appointment will be through July 1, 2027, subject to automatic one (1)-year extensions unless either party gives notice of non-extension no later than 90 days prior to the expiration of the then-applicable term.

Ms. Sentell received an initial annual base salary of $550,000, subject to annual review by the Company. Ms. Sentell is eligible to receive an annual bonus, semi-annual bonus, or such other periodic bonus as determined by the Board, in each case based on an annualized target bonus opportunity of 75% of her annual base salary, payable upon the attainment of Company performance goals established by the Board (or the Compensation Committee), with the opportunity to make up to 200%, on an annualized basis, of her annualized target bonus opportunity. For fiscal 2024, Ms. Sentell was eligible to receive a pro-rata amount of an annual performance-based cash bonus based on a target bonus opportunity of 75% of her annual base salary, payable upon the attainment of Company performance goals established for the period beginning on July 1, 2024 and ending on the last day of fiscal 2024, with the opportunity to make up to 200% of her 2024 target bonus opportunity on a pro-rata basis. Beginning in fiscal 2025, Ms. Sentell is also eligible to receive an annual equity award with a grant date fair value equal to at least $750,000.

Ms. Sentell also received the following signing awards: (i) a cash award equal to $750,000, subject to repayment if Ms. Sentell is terminated by the Company for Cause or resigns without Good Reason within 12 months following the date on which the cash award was paid, and (ii) an RSU award comprised of RSUs for such number of shares of the Company’s Class A common stock as may be determined based on an aggregate grant date fair value of $750,000.

40​

 ​

Position and Employment Term

Under the applicable employment agreements, during their respective terms of employment, Mr. Lynch, Ms. Fogertey, and Ms. Sentell serve as Chief Executive Officer, Chief Financial Officer, and Chief Operations Officer, respectively, of Shake Shack, SSE Holdings and all of its affiliates. The current employment terms are as follows: (i) for Mr. Lynch, through May 20, 2027 with automatic one (1)-year renewal terms thereafter, unless either party provides written notice of non-extension within 90 days of the expiration of the then-current term; (ii) for Ms. Fogertey, through June 14, 2025 (the term was automatically extended on June 14, 2024 for an additional one year) with automatic one (1)-year renewal terms thereafter, unless either party provides written notice of non-extension within 90 days of the expiration of the then-current term; and (iii) for Ms. Sentell through July 1, 2027 with automatic one (1)-year renewal terms thereafter unless either party provides written notice of non-extension within 90 days of the expiration of the then-current term (as discussed above, Mr. Garutti stepped down effective May 20, 2024).

Base Salary, Annual Bonus and Equity Compensation

The annual base salary for fiscal 2024 for each of Mr. Lynch, Ms. Fogertey and Ms. Sentell was $1,000,000, $600,000 and $550,000, respectively.

In addition, pursuant to their employment agreements, Mr. Lynch, Ms. Fogertey, and Ms. Sentell are eligible to receive short-term cash incentives upon the attainment of Company performance goals established by the Compensation Committee. The amount of the annual performance-based cash bonus that may be received by Mr. Lynch, Ms. Fogertey and Ms. Sentell upon attainment of target performance for the 2024 fiscal year was 150% of base salary (pro-rated as described above), 75% of base salary, and 75% of base salary, respectively, and the maximum amount of the annual performance-based cash bonus that may be received by Mr. Lynch, Ms. Fogertey, and Ms. Sentell for the 2024 fiscal year was 200% of the target amount.

Under the employment agreements, Mr. Lynch, Ms. Fogertey, and Ms. Sentell are also eligible for annual equity awards.

Severance

The employment agreements for each of Mr. Lynch, Ms. Fogertey and Ms. Sentell provides for severance upon a termination by us without cause or by Mr. Lynch, Ms. Fogertey and Ms. Sentell for good reason, in each case, subject to the execution and non-revocation of a waiver and release of claims by Mr. Lynch, Ms. Fogertey or Ms. Sentell, as applicable.

Upon such a termination, each of Mr. Lynch, Ms. Fogertey, and Ms. Sentell is entitled to severance consisting of (a) continued base salary (i) for Mr. Lynch, for 18 months following the date of termination, (ii) for Ms. Fogertey, during the severance period, which is three months if Ms. Fogertey has completed six months of service, six months if Ms. Fogertey has completed one year of service, and thereafter, one additional month for every twelve months of service, up to 12 months of severance, and (iii) for Ms. Sentell, for 12 months following the date of termination, (b) a prorated annual cash bonus for the year of termination based on actual Company performance, and (c) reimbursement of COBRA premiums such that the cost of coverage is equal to the cost for then current employees for up to the applicable severance period described in subpart (a) of this sentence.

Upon such a termination, Mr. Lynch is entitled to accelerated vesting of a prorated portion of all of the annual equity awards, along with the signing RSU award described above that would have vested within 18 months following the date of termination absent such termination.

For purposes of the employment agreements, the Company will have “cause” to terminate each of Mr. Lynch’s, Ms. Fogertey’s or Ms. Sentell’s employment upon (a) his or her willful misconduct, gross negligence or act of dishonesty with regard to the Company or any of its affiliates, which in either case, results in or could reasonably be expected to result in material harm to the Company or such affiliate, (b) his or her willful and continued failure to attempt to perform his or her duties with the Company or

41​

 ​

any of its affiliates (other than any such failure resulting from disability), which failure is not remedied within 30 days after receiving written notice thereof, (c) his or her conviction of (or his or her plea of guilty or nolo contendere to) any felony involving moral turpitude (other than traffic related offenses or as a result of vicarious liability), or (d) his or her material breach of any material provision of the employment agreement, which breach is not remedied within 10 days after receiving written notice thereof.

For purposes of the employment agreements, each of Mr. Lynch, Ms. Fogertey and Ms. Sentell will have “good reason” to terminate his or her employment after the occurrence, without his or her consent, of (a) any material adverse change in base salary, position, duties, responsibilities, authority, title or reporting obligations, or the assignment of duties that are materially inconsistent with his or her position, (b) a relocation of principal business location by more than 50 miles from its then current location, or (c) any other material breach by the Company of the employment agreement or any other agreement with him or her. However, no termination for good reason will be effective unless (i) Mr. Lynch, Ms. Fogertey or Ms. Sentell, as applicable, provides the Company with at least 30 days’ prior written notice of his or her intent to resign for good reason (which notice must be provided within 60 days following the occurrence of the event(s) purported to constitute good reason); (ii) the Company has not remedied the alleged violation(s) within the 30-day period; and (iii) Mr. Lynch’s, Ms. Fogertey’s or Ms. Sentell’s resignation, as applicable, becomes effective no later than 30 days after the Company has either failed to cure such event or indicated that it will not cure such event.

Restrictive Covenants

Pursuant to their employment agreements, Mr. Lynch, Ms. Fogertey and Ms. Sentell are subject to certain non-competition and non-solicitation restrictions during employment and for a(n) (a) 18-month period, in the case of Mr. Lynch, and (b) 12-month period, in the case of each Ms. Fogertey and Ms. Sentell, after termination of employment. During the restricted period, Mr. Lynch may not compete, directly or indirectly, with the Company in the business of developing, managing, and/or operating of (a) “better burger” restaurants, (b) “quick service” or “fast food” restaurants with an emphasis on hamburgers, and (c) restaurants that derive 50% or more of their revenues from the sale of hamburgers, hot dogs, chicken, French fries, and/or frozen desserts. Each of Five-Guys and In-N-Out Burger are included in the competitive restrictions described above for Mr. Lynch. Each of Ms. Fogertey and Ms. Sentell may not compete, directly or indirectly, with the Company in the business of developing, managing, and/or operating of (a) “better burger” restaurants, (b) “quick service” or “fast food” restaurants with an emphasis on hamburgers, or (c) “fast casual” restaurants.

No severance payments or benefits described above shall be paid following the first date that any of Mr. Lynch, Ms. Fogertey or Ms. Sentell violates his or her restrictive covenants.

Other Benefits

Our NEOs, like our other employees, participate in health and welfare benefit plans, subject to satisfying eligibility requirements. We believe the benefits described above are necessary and appropriate to provide a competitive compensation package.

Health & Wellness

All of our full-time employees, including our NEOs, are eligible to participate in health and welfare plans maintained by the Company, including:

•

Medical, dental and vision benefits;

​

•

Medical care flexible spending accounts;

​

•

Short-term and long-term disability insurance; and

​

•

Life insurance.

​

42​

 ​

Our NEOs participate in these plans largely on the same basis as other eligible employees. Beginning in July 2018, Shake Shack obtained supplemental individual long-term disability plans for each of the NEOs to provide the same level of coverage provided to all other eligible participants in the group long-term disability plan.

Retirement Plan

The Company’s employees, including our NEOs, participate in the Company’s 401(k) retirement savings plan (the “401(k) plan”), subject to satisfying eligibility requirements. The Internal Revenue Code (“IRC”) allows eligible employees to defer a portion of their compensation, within prescribed limits, on a pre-tax basis through contributions to the 401(k) plan. The Company does not currently match contributions made under the 401(k) plan by our NEOs and other highly compensated employees. We believe that providing a vehicle for tax deferred retirement savings through the 401(k) plan adds to the overall desirability of our executive compensation package.

Limited Perquisites and Other Personal Benefits

We have not provided significant perquisites to our NEOs that are not generally available to other employees. From time to time, we may provide such benefits for recruitment or retention purposes. Mr. Lynch and Ms. Sentell were newly hired in 2024, and a discussion of the perquisites that were given to them for recruitment purposes is included in the Summary Compensation Table.

Equity Award Granting Policy

Tax Considerations

Deductibility of Executive Compensation

We may be entitled to a tax deduction in connection with the vesting, settlement, or exercise of an award in an amount equal to the ordinary income realized by a participant at the time the participant recognized such income. However, we are subject to IRC Section 162(m), which places a limit of $1 million on the amount of compensation that we may deduct as a business expense in any year with respect to certain executive officers. While the Compensation Committee considers the deductibility of compensation as one factor in determining the overall level of compensation and the mix of compensation among individual elements, the Compensation Committee also looks at other factors in making its decisions and will retain the flexibility to award compensation that it determines to be consistent with the goals of our executive compensation program even if such compensation is not deductible for tax purposes.

Accounting Considerations

The Compensation Committee recognizes accounting implications that may impact executive compensation. For example, we recognize expense related to salaries and performance-based cash compensation when earned in our financial statements. U.S. GAAP also requires us to record an expense in our financial statements for equity awards, even though equity awards are not paid as cash to employees.

43​

 ​

COMPENSATION COMMITTEE REPORT

Our Compensation Committee has reviewed and discussed the “Compensation Discussion and Analysis” required by Item 402(b) of Regulation S-K. Based on such review and discussions, our Compensation Committee recommended to our Board of Directors that the “Compensation Discussion and Analysis” be included in this Proxy Statement.

This report has been furnished by the members of the Compensation Committee.

THE COMPENSATION COMMITTEE

Sumaiya Balbale, Chair
Charles Chapman III
Anna Fieler
Jeff Flug
Lori George

44​

FISCAL 2024 COMPENSATION TABLES

Summary Compensation

The following table sets forth our NEOs’ total compensation for fiscal 2024, 2023 and 2022.

(1)

For Mr. Lynch and Ms. Sentell, the amount in this column is prorated based on the date of hire. For Mr. Garutti, the amount in this column is prorated based on the date of his resignation.

​

(2)

For Mr. Lynch and Ms. Sentell, the amounts in this column represent the cash bonus, as previously described, in accordance with the terms of their employment agreements.

​

(3)

The amounts in this column represent the aggregate grant date fair value of RSUs and PSUs granted in fiscal 2024, fiscal 2023 and fiscal 2022. The fair value of RSUs and PSUs is computed in accordance with Accounting Standards Codification Topic 718 (“ASC Topic 718”) and based on the market value of the Company’s Class A common stock on the date of grant, among other inputs where required by ASC Topic 718. For Mr. Lynch and Ms. Fogertey, the amounts disclosed for PSUs granted are based upon 100% achievement of the performance targets for fiscal 2024. If the maximum performance level were achieved, the fair value of PSUs granted in fiscal 2024 would be $13,350,207 and $750,107 Mr. Lynch and Ms. Fogertey, respectively. For Mr. Lynch, the RSUs and PSUs awarded were calculated using a thirty (30)-day trailing average closing stock price. For Ms. Sentell, the RSUs granted in fiscal 2024 include a one-time RSU award pursuant to the terms of her employment agreement.

​

(4)

For Mr. Lynch, these amounts represent $12,922 of premiums paid under our executive disability insurance plan in 2024, $3,465 of COBRA reimbursements prior to coverage under our healthcare plan, and $87,677, which consists of $58,839 provided for housing and commuting stipend, pursuant to his employment agreement, as well as $28,838 as a gross-up of taxable income related to such housing and commuting stipend. For Mr. Garutti, these amounts represent gross-up and tax equalization payments of $111,314 and $11,512 of premiums paid under our executive disability insurance plan in 2024, gross-up and tax equalization payments of $183,728 and $20,085 of premiums paid under our executive disability insurance plan in 2023, gross-up and tax equalization payments of $105,683 and $12,541 of premiums paid under our executive disability insurance plan in 2022. For Ms. Fogertey, these amounts represent premiums paid under our executive disability insurance plan in 2024, 2023, and 2022. For Ms. Sentell, this amount represents $6,578 of premiums paid under our executive disability insurance plan in 2024, as well as $34,190, which consists of $24,000 provided for housing and commuting stipend, pursuant to her employment agreement, as well as $10,190 as a gross-up of taxable income related to such housing and commuting stipend.

​

45​

 ​

Plan-Based Awards

The following table sets forth information with respect to plan-based awards made to our NEOs in fiscal 2024.