Obtain Shake Shack, Inc.’s Form 10-K for the fiscal year ending on December 27, 2017. To obtain the Form 10-K, you can use the EDGAR system (see Appendix A at the back of this text for instructions), or it can be found under the “Investor Relations” link on the company’s website at www.shakeshack .com. Read the following sections of the 10-K: “Growth Strategies” on page 13, and the Consolidated Statements of Cash Flows on page 78.

Required

a. How many company-owned Shacks did Shake Shack plan to open during its 2017 fiscal year? By what percentage would these new Shacks increase the size of Shake Shack’s company-owned Shacks?

b. How much cash did Shake Shack spend on investing activities during its 2015, 2016, and 2017 fiscal years? Do you think the amount spent on investing activities represents the full costs that Shake Shack incurred to open new Shacks? Explain your answer.

c. Where did Shake Shack get the cash used to make these investments?