Trade associations or other organizations to which a company belongs or contributes may at times take positions that contradict or undercut company values or positions on important issues. Companies that find themselves with serious misalignment face reputational risk and, where misalignment concerns issues core to value creation, risk to the business. Shake Shack?s 2024 ?Stand for Something Good? report emphasizes the Company?s commitment to its employees. The report describes ?deliver[ing] a strong financial benefit for our team members? as a key element of Shake Shack?s mission, and says that it ?prioritize[s] creating a supportive and inclusive work environment for our people and offer[s] benefits, rewards, and recognition programs to ensure their health and well-being.1 Among the initiatives CEO Rob Lynch recently identified as key to Shake Shack?s performance is the improvement in the average hourly employee turnover rate from 90 to 180 days.2 Shake Shack is a member of the National Restaurant Association (?NRA?), the ?largest foodservice trade association in the world.?3 Some of the NRA?s lobbying positions, however, appear to be at odds with Shake Shack?s stated approach to its workforce. The NRA has vociferously opposed efforts to repeal the subminimum wage of $2.13 for tipped workers. Its affiliate, the Arizona Restaurant Association, sued to challenge signatures needed to put the One Fair Wage Act on the ballot (the Act sought to eliminate the subminimum wage). The Colorado Restaurant Association opposed a bill requiring a state agency to disclose employers that committed wage theft and a bill requiring employers to notify workers of their schedules in advance.4 We are concerned that Shake Shack may be funding organizations that take public policy positions that are inconsistent with Shake Shack?s values and the reputation the company seeks to maintain. Current disclosures do not adequately inform investors how the Company ensures its direct and indirect lobbying aligns with its public policy commitments, and how it is managing policy misalignment risks. To fill that gap, Shake Shack should join leading companies like Unilever by analyzing the actions taken by groups to which it belongs or contributes and disclosing to shareholders how the Company assesses alignment between the groups? policy advocacy and Shake Shack?s own values and public positions. 1 https://shakeshack.com/sites/default/files/2025-04/2025-04-23_SHA_2024-SFSG%20Report_R8c.pdf , at 2, 17 2 https://www.restaurantbusinessonline.com/operations/how-shake-shack-plans-win-market-share-2026 3 https://restaurant.org/About-Us 4 Eyal Press, ?Check Your Bill,? The New Yorker, Aug. 4, 2025