Shake Shack Flags Non-Reliance on Past Financials

TL;DR

**Shake Shack just dropped an 8-K saying they can't rely on old financial statements, so expect some volatility!**

AI Summary

Shake Shack Inc. filed an 8-K on February 26, 2024, reporting a non-reliance on previously issued financial statements or a related audit report or completed interim review, with the earliest event reported on February 24, 2024. The filing indicates a potential issue with the accuracy of past financial disclosures, which could impact investor confidence and the company's stock performance. The specific financial statements or periods affected were not detailed in this initial filing.

Why It Matters

This filing indicates that Shake Shack's previously reported financial statements may not be reliable, which could lead to restatements and impact investor trust and stock valuation.

Risk Assessment

Risk Level: high — A non-reliance on previously issued financial statements signals potential material misstatements, which can severely impact investor confidence and stock price.

Key Players & Entities

• Shake Shack Inc. (company) — Registrant filing the 8-K
• February 24, 2024 (date) — Date of earliest event reported
• February 26, 2024 (date) — Filing date of the 8-K
• 001-36823 (company) — Commission File Number for Shake Shack Inc.
• 225 Varick Street, Suite 301, New York, New York 10014 (company) — Business address of Shake Shack Inc.

FAQ

Key Financial Figures

• $0.001 — tered Class A Common Stock, par value $0.001 SHAK New York Stock Exchange Indica
• $17 million — ed consolidated statements of income, a $17 million increase to deferred tax assets and ret
• $14 million — and September 27, 2023, respectively, a $14 million increase to deferred tax assets and ret

Filing Documents

• tm247258d1_8k.htm (8-K) — 33KB
• image_001.jpg (GRAPHIC) — 5KB
• 0001104659-24-027494.txt ( ) — 215KB
• shak-20240224.xsd (EX-101.SCH) — 3KB
• shak-20240224_lab.xml (EX-101.LAB) — 33KB
• shak-20240224_pre.xml (EX-101.PRE) — 22KB
• tm247258d1_8k_htm.xml (XML) — 4KB

02 Non-Reliance on

Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review. As previously disclosed in the Company's Current Report on Form 8-K filed on February 15, 2024 (the "Original Form 8-K"), the Company announced that it is preparing restatements of the Company's Prior Financial Statements to be included in the Company's 2023 Form 10-K. Capitalized terms used in this Current Report on Form 8-K shall have the meanings provided in the Original Form 8-K. In connection with the restatements, the Company has concluded that the previously disclosed errors led to understatements of additional paid-in capital, retained earnings/(accumulated deficit) and deferred income tax assets of the amounts in the unaudited condensed consolidated balance sheets included in the Company's Quarterly Reports on Form 10-Q for the quarterly periods ended March 30, 2022, June 29, 2022, September 28, 2022, March 29, 2023, June 28, 2023 and September 27, 2023 (collectively, the "Prior Interim Financial Statements"). On February 24, 2024, the Audit Committee, after discussion with senior management and the Company's independent registered public accountants, concluded that the Prior Interim Financial Statements should no longer be relied upon. We estimate that the impacts reported in the Prior Interim Financial Statements result in no change to the Company's unaudited condensed consolidated statements of income, a $17 million increase to deferred tax assets and retained earnings/(accumulated deficit) as of March 29, 2023, June 28, 2023 and September 27, 2023, respectively, a $14 million increase to deferred tax assets and retained earnings/(accumulated deficit) as of March 30, 2022, June 29, 2022, and September 28, 2022, respectively, and a de minimis increase to additional paid-in capital at each period-end. The Company intends to include the restatements of the Prior Interim Financial Statements, in addition to the restatements of the Prior F

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains forward-looking 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 included herein are forward-looking statements. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. Some of the factors which could cause results to differ materially from the Company's expectations include the continuing impact of the COVID-19 pandemic, including the potential impact of any COVID-19 variants, the Company' s ability to develop and open new Shacks on a timely basis, increased costs or shortages or interruptions in the supply and delivery of our products, increased labor costs or shortages, inflationary pressures, the Company's management of its digital capabilities and expansion into new channels, including drive-thru and multiple format investments, the Company's ability to maintain and grow sales at its existing Shacks, risks relating to the restaurant industry generally, and the impact of any material weakness in our internal controls over financial reporting identified in connection with the restatement discussed above or otherwise. You should evaluate all forward-looking other period and current reports filed with the Securities and Exchange Commission.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Shake Shack Inc. (Registrant) Dated: February 26, 2024 By: /s/ Katherine Fogertey Katherine Fogertey Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR