Shake Shack Announces Fourth Quarter and Fiscal Year 2024 Financial Results
Shake Shack (NYSE: SHAK) reported strong financial results for Q4 and fiscal year 2024. In Q4, total revenue reached $328.7 million, up 14.8% year-over-year, with system-wide sales of $500.7 million increasing 13.3%. Same-Shack sales grew 4.3%, while net income was $9.3 million.
For the full fiscal year 2024, the company achieved total revenue of $1,252.6 million, a 15.2% increase from 2023. System-wide sales reached $1,922.7 million, up 13.0%, with same-Shack sales growing 3.6%. The company reported net income of $10.8 million and adjusted EBITDA of $175.6 million.
Expansion continued with 43 new Company-operated Shacks and 33 new licensed Shacks opened during the year, including 19 company-operated and 9 licensed locations in Q4 alone.
Shake Shack (NYSE: SHAK) ha riportato risultati finanziari solidi per il quarto trimestre e l'anno fiscale 2024. Nel quarto trimestre, il fatturato totale ha raggiunto $328,7 milioni, con un incremento del 14,8% rispetto all'anno precedente, e le vendite totali sono state di $500,7 milioni, in aumento del 13,3%. Le vendite negli stessi Shack sono cresciute del 4,3%, mentre il reddito netto è stato di $9,3 milioni.
Per l'intero anno fiscale 2024, l'azienda ha registrato un fatturato totale di $1.252,6 milioni, con un aumento del 15,2% rispetto al 2023. Le vendite totali hanno raggiunto $1.922,7 milioni, in crescita del 13,0%, e le vendite negli stessi Shack sono aumentate del 3,6%. L'azienda ha riportato un reddito netto di $10,8 milioni e un EBITDA rettificato di $175,6 milioni.
L'espansione è continuata con 43 nuovi Shack gestiti direttamente dall'azienda e 33 nuovi Shack in licenza aperti durante l'anno, inclusi 19 locali gestiti dall'azienda e 9 in licenza solo nel quarto trimestre.
Shake Shack (NYSE: SHAK) informó resultados financieros sólidos para el cuarto trimestre y el año fiscal 2024. En el cuarto trimestre, los ingresos totales alcanzaron $328.7 millones, un aumento del 14.8% en comparación con el año anterior, con ventas totales de $500.7 millones, lo que representa un incremento del 13.3%. Las ventas en los mismos Shack crecieron un 4.3%, mientras que el ingreso neto fue de $9.3 millones.
Para todo el año fiscal 2024, la compañía logró ingresos totales de $1,252.6 millones, un aumento del 15.2% respecto a 2023. Las ventas totales alcanzaron $1,922.7 millones, un aumento del 13.0%, con un crecimiento de las ventas en los mismos Shack del 3.6%. La compañía reportó un ingreso neto de $10.8 millones y un EBITDA ajustado de $175.6 millones.
La expansión continuó con 43 nuevos Shack operados por la compañía y 33 nuevos Shack licenciados abiertos durante el año, incluidos 19 operados por la compañía y 9 licenciados solo en el cuarto trimestre.
쉐이크쉑 (NYSE: SHAK)은 2024 회계연도 4분기 및 전체 회계연도에 대한 강력한 재무 결과를 발표했습니다. 4분기 동안 총 수익은 $328.7 백만에 도달했으며, 이는 전년 대비 14.8% 증가한 수치입니다. 시스템 전체 매출은 $500.7 백만으로 13.3% 증가했습니다. 동일한 샥 매출은 4.3% 증가했으며, 순이익은 $9.3 백만이었습니다.
2024 회계연도 전체에서 회사는 총 수익 $1,252.6 백만을 달성했으며, 이는 2023년 대비 15.2% 증가한 수치입니다. 시스템 전체 매출은 $1,922.7 백만에 도달하여 13.0% 증가했으며, 동일한 샥 매출은 3.6% 성장했습니다. 회사는 $10.8 백만의 순이익과 $175.6 백만의 조정 EBITDA를 보고했습니다.
올해 동안 43개의 신규 회사 운영 샥과 33개의 신규 라이센스 샥이 개설되었으며, 4분기 동안에는 회사 운영 샥 19개와 라이센스 샥 9개가 포함되었습니다.
Shake Shack (NYSE: SHAK) a annoncé de solides résultats financiers pour le quatrième trimestre et l'exercice fiscal 2024. Au quatrième trimestre, le chiffre d'affaires total a atteint $328,7 millions, en hausse de 14,8 % par rapport à l'année précédente, avec des ventes totales de $500,7 millions, en augmentation de 13,3 %. Les ventes dans les mêmes Shack ont augmenté de 4,3 %, tandis que le bénéfice net s'élevait à $9,3 millions.
Pour l'ensemble de l'exercice fiscal 2024, l'entreprise a réalisé un chiffre d'affaires total de $1.252,6 millions, soit une augmentation de 15,2 % par rapport à 2023. Les ventes totales ont atteint $1.922,7 millions, en hausse de 13,0 %, avec des ventes dans les mêmes Shack en croissance de 3,6 %. L'entreprise a enregistré un bénéfice net de $10,8 millions et un EBITDA ajusté de $175,6 millions.
L'expansion s'est poursuivie avec 43 nouveaux Shack gérés par l'entreprise et 33 nouveaux Shack sous licence ouverts au cours de l'année, dont 19 gérés par l'entreprise et 9 sous licence rien que pour le quatrième trimestre.
Shake Shack (NYSE: SHAK) hat starke finanzielle Ergebnisse für das 4. Quartal und das Geschäftsjahr 2024 gemeldet. Im 4. Quartal erreichten die Gesamteinnahmen $328,7 Millionen, was einem Anstieg von 14,8% im Vergleich zum Vorjahr entspricht, während die systemweiten Verkäufe $500,7 Millionen erreichten, was einem Anstieg von 13,3% entspricht. Die Same-Shack-Verkäufe wuchsen um 4,3%, während der Nettogewinn bei $9,3 Millionen lag.
Im gesamten Geschäftsjahr 2024 erzielte das Unternehmen Gesamteinnahmen von $1.252,6 Millionen, was einem Anstieg von 15,2% im Vergleich zu 2023 entspricht. Die systemweiten Verkäufe erreichten $1.922,7 Millionen, was einem Anstieg von 13,0% entspricht, während die Same-Shack-Verkäufe um 3,6% stiegen. Das Unternehmen meldete einen Nettogewinn von $10,8 Millionen und ein bereinigtes EBITDA von $175,6 Millionen.
Die Expansion setzte sich mit 43 neuen, vom Unternehmen betriebenen Shacks und 33 neuen lizenzierten Shacks fort, die im Laufe des Jahres eröffnet wurden, darunter 19 vom Unternehmen betriebene und 9 lizenzierte Standorte allein im 4. Quartal.
- Revenue growth of 14.8% in Q4 and 15.2% for FY2024
- Same-Shack sales increased 4.3% in Q4
- Strong expansion with 76 new locations opened in 2024
- Q4 restaurant-level profit margin of 22.7%
- Positive net income of $10.8 million for FY2024
- Operating income declined to $3.0 million for FY2024
- Restaurant-level profit margin decreased to 21.4% for FY2024
Insights
Shake Shack's Q4 2024 performance reveals a compelling growth story with several notable metrics. The 14.8% revenue growth to
The restaurant-level profit margin of
The company's expansion strategy shows careful balance between company-operated (19 new locations) and licensed locations (9 new locations) in Q4 alone. This dual approach allows for rapid growth while maintaining capital efficiency. The full-year addition of 76 total locations (43 company-operated, 33 licensed) represents approximately
The
System-wide sales growth of
Financial Highlights for the Fourth Quarter 2024:
-
Total revenue of
$328.7 million 14.8% versus 2023, including$316.6 million $12.1 million -
System-wide sales of
$500.7 million 13.3% versus 2023. -
Same-Shack sales up
4.3% versus 2023. -
Operating income of
$10.2 million -
Restaurant-level profit(1) of
$71.9 million 22.7% of Shack sales.
-
Restaurant-level profit(1) of
-
Net income of
$9.3 million -
Adjusted EBITDA(1) of
$46.7 million
-
Adjusted EBITDA(1) of
-
Net income attributable to Shake Shack Inc. of
$8.7 million $0.21 -
Adjusted pro forma net income(1) of
$11.6 million $0.26
-
Adjusted pro forma net income(1) of
- Opened 19 new Company-operated Shacks and nine new licensed Shacks.
Financial Highlights for the Fiscal Year 2024:
-
Total revenue of
$1,252.6 million 15.2% versus 2023, including$1,207.6 million $45.0 million -
System-wide sales of
$1,922.7 million 13.0% versus 2023. -
Same-Shack sales up
3.6% versus 2023. -
Operating income of
$3.0 million -
Restaurant-level profit(1) of
$257.9 million 21.4% of Shack sales.
-
Restaurant-level profit(1) of
-
Net income of
$10.8 million -
Adjusted EBITDA(1) of
$175.6 million
-
Adjusted EBITDA(1) of
-
Net income attributable to Shake Shack Inc. of
$10.2 million $0.24 -
Adjusted pro forma net income(1) of
$40.5 million $0.92
-
Adjusted pro forma net income(1) of
- Opened 43 new Company-operated Shacks and 33 new licensed Shacks.
Shake Shack will host a conference call at 8:00 a.m. ET. Hosting the call will be Robert Lynch, Chief Executive Officer, and Katherine Fogertey, Chief Financial Officer. The conference call can be accessed live over the phone by dialing (877) 407-0792, or for international callers by dialing (201) 689-8263. A replay of the call will be available until February 27, 2025 by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671; the passcode is 13750490.
The live audio webcast of the conference call will be accessible in the Events & Presentations section of the Company's Investor Relations website at investor.shakeshack.com. An archived replay of the webcast will also be available shortly after the live event has concluded.
(1) |
Restaurant-level profit, Adjusted EBITDA and Adjusted pro forma net income (loss) are non-GAAP measures. A reconciliation to the most directly comparable financial measures presented in accordance with GAAP is set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures” below. |
About Shake Shack
Shake Shack serves elevated versions of American classics using only the best ingredients. It’s known for its delicious made-to-order Angus beef burgers, crispy chicken, hand-spun milkshakes, house-made lemonades, beer, wine, and more. With its high-quality food at a great value, warm hospitality, and a commitment to crafting uplifting experiences, Shake Shack quickly became a cult-brand with widespread appeal. Shake Shack’s purpose is to Stand For Something Good®, from its premium ingredients and employee development, to its inspiring designs and deep community investment. Since the original Shack opened in 2004 in NYC’s Madison Square Park, the Company has expanded to over 570 locations system-wide, including over 370 in 34 U.S. States and the
Skip the line with the Shack App, a mobile ordering app that lets you save time by ordering ahead! Guests can select their location, pick their food, choose a pickup time and their meal will be cooked-to-order and timed to arrival. Available on iOS and Android.
Definitions
The following definitions apply to these terms as used in this release:
"Shack sales" is defined as the aggregate sales of food, beverages, gift card breakage income and Shake Shack branded merchandise at domestic Company-operated Shacks and excludes sales from licensed Shacks.
“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.
"Same-Shack sales" represents 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 Shacks were temporarily closed, the comparative period was also adjusted.
"Restaurant-level profit," a non-GAAP measure, also formerly referred to as Shack-level operating profit, is defined 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.
"Restaurant-level profit margin," a non-GAAP measure, also formerly referred to as Shack-level operating profit margin, is defined 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.
“EBITDA,” a non-GAAP measure, is defined as Net income (loss) before interest expense (net of interest income), Income tax expense (benefit), and Depreciation and amortization expense.
“Adjusted EBITDA,” a non-GAAP measure, is defined as EBITDA (as defined above), 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 the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.
"Adjusted pro forma net income," a non-GAAP measure, represents Net income (loss) attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Class A common stock, adjusted for certain non-recurring items that the Company does not believe are directly reflected to its core operations and may not be indicative of its recurring business operations.
SHAKE SHACK INC. |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(UNAUDITED) |
|||||||
(in thousands, except share and per share amounts) |
|||||||
|
December 25
|
|
December 27
|
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
320,714 |
|
|
$ |
224,653 |
|
Marketable securities |
|
— |
|
|
|
68,561 |
|
Accounts receivable, net |
|
19,687 |
|
|
|
16,847 |
|
Inventories |
|
6,014 |
|
|
|
5,404 |
|
Prepaid expenses and other current assets |
|
21,801 |
|
|
|
18,967 |
|
Total current assets |
|
368,216 |
|
|
|
334,432 |
|
Property and equipment, net of accumulated depreciation of |
|
551,600 |
|
|
|
530,995 |
|
Operating lease assets |
|
424,611 |
|
|
|
398,296 |
|
Deferred income taxes, net |
|
341,586 |
|
|
|
326,208 |
|
Other assets |
|
10,958 |
|
|
|
15,926 |
|
TOTAL ASSETS |
$ |
1,696,971 |
|
|
$ |
1,605,857 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
23,609 |
|
|
$ |
22,273 |
|
Accrued expenses |
|
63,005 |
|
|
|
54,742 |
|
Accrued wages and related liabilities |
|
25,422 |
|
|
|
20,945 |
|
Operating lease liabilities, current |
|
55,739 |
|
|
|
49,004 |
|
Other current liabilities |
|
19,538 |
|
|
|
17,103 |
|
Total current liabilities |
|
187,313 |
|
|
|
164,067 |
|
Long-term debt |
|
246,683 |
|
|
|
245,636 |
|
Long-term operating lease liabilities |
|
494,499 |
|
|
|
464,533 |
|
Liabilities under tax receivable agreement, net of current portion |
|
247,017 |
|
|
|
235,613 |
|
Other long-term liabilities |
|
27,833 |
|
|
|
26,638 |
|
Total liabilities |
|
1,203,345 |
|
|
|
1,136,487 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 25, 2024 and December 27, 2023. |
|
— |
|
|
|
— |
|
Class A common stock, |
|
40 |
|
|
|
39 |
|
Class B common stock, |
|
2 |
|
|
|
3 |
|
Additional paid-in capital |
|
442,993 |
|
|
|
426,601 |
|
Retained earnings |
|
26,984 |
|
|
|
16,777 |
|
Accumulated other comprehensive loss |
|
(1 |
) |
|
|
(3 |
) |
Total stockholders' equity attributable to Shake Shack Inc. |
|
470,018 |
|
|
|
443,417 |
|
Non-controlling interests |
|
23,608 |
|
|
|
25,953 |
|
Total equity |
|
493,626 |
|
|
|
469,370 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
1,696,971 |
|
|
$ |
1,605,857 |
|
SHAKE SHACK INC. |
|||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||||||||||||||
(UNAUDITED) |
|||||||||||||||||||||||||||
(in thousands, except per share amounts) |
|||||||||||||||||||||||||||
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
||||||||||||||||||||||||
|
December 25
|
|
December 27
|
|
December 25
|
|
December 27
|
||||||||||||||||||||
Shack sales |
$ |
316,632 |
|
96.3 |
% |
|
$ |
275,775 |
|
96.3 |
% |
|
$ |
1,207,561 |
|
96.4 |
% |
|
$ |
1,046,819 |
|
96.3 |
% |
||||
Licensing revenue |
|
12,052 |
|
3.7 |
% |
|
|
10,468 |
|
3.7 |
% |
|
|
45,047 |
|
3.6 |
% |
|
|
40,714 |
|
3.7 |
% |
||||
TOTAL REVENUE |
|
328,684 |
|
100.0 |
% |
|
|
286,243 |
|
100.0 |
% |
|
|
1,252,608 |
|
100.0 |
% |
|
|
1,087,533 |
|
100.0 |
% |
||||
Shack-level operating expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Food and paper costs |
|
88,578 |
|
28.0 |
% |
|
|
80,289 |
|
29.1 |
% |
|
|
339,940 |
|
28.2 |
% |
|
|
305,041 |
|
29.1 |
% |
||||
Labor and related expenses |
|
85,104 |
|
26.9 |
% |
|
|
78,599 |
|
28.5 |
% |
|
|
338,750 |
|
28.1 |
% |
|
|
304,254 |
|
29.1 |
% |
||||
Other operating expenses |
|
47,008 |
|
14.8 |
% |
|
|
41,097 |
|
14.9 |
% |
|
|
178,381 |
|
14.8 |
% |
|
|
149,449 |
|
14.3 |
% |
||||
Occupancy and related expenses |
|
24,047 |
|
7.6 |
% |
|
|
21,162 |
|
7.7 |
% |
|
|
93,069 |
|
7.7 |
% |
|
|
79,846 |
|
7.6 |
% |
||||
General and administrative expenses |
|
41,099 |
|
12.5 |
% |
|
|
35,816 |
|
12.5 |
% |
|
|
149,047 |
|
11.9 |
% |
|
|
129,542 |
|
11.9 |
% |
||||
Depreciation and amortization expense |
|
25,809 |
|
7.9 |
% |
|
|
24,538 |
|
8.6 |
% |
|
|
102,468 |
|
8.2 |
% |
|
|
91,242 |
|
8.4 |
% |
||||
Pre-opening costs |
|
5,118 |
|
1.6 |
% |
|
|
5,128 |
|
1.8 |
% |
|
|
15,547 |
|
1.2 |
% |
|
|
19,231 |
|
1.8 |
% |
||||
Impairments, loss on disposal of assets, and Shack closures |
|
1,711 |
|
0.5 |
% |
|
|
909 |
|
0.3 |
% |
|
|
32,368 |
|
2.6 |
% |
|
|
3,007 |
|
0.3 |
% |
||||
TOTAL EXPENSES |
|
318,474 |
|
96.9 |
% |
|
|
287,538 |
|
100.5 |
% |
|
|
1,249,570 |
|
99.8 |
% |
|
|
1,081,612 |
|
99.5 |
% |
||||
INCOME (LOSS) FROM OPERATIONS |
|
10,210 |
|
3.1 |
% |
|
|
(1,295 |
) |
(0.5 |
)% |
|
|
3,038 |
|
0.2 |
% |
|
|
5,921 |
|
0.5 |
% |
||||
Other income, net |
|
3,241 |
|
1.0 |
% |
|
|
3,271 |
|
1.1 |
% |
|
|
13,251 |
|
1.1 |
% |
|
|
12,776 |
|
1.2 |
% |
||||
Interest expense |
|
(512 |
) |
(0.2 |
)% |
|
|
(476 |
) |
(0.2 |
)% |
|
|
(2,045 |
) |
(0.2 |
)% |
|
|
(1,717 |
) |
(0.2 |
)% |
||||
INCOME BEFORE INCOME TAXES |
|
12,939 |
|
3.9 |
% |
|
|
1,500 |
|
0.5 |
% |
|
|
14,244 |
|
1.1 |
% |
|
|
16,980 |
|
1.6 |
% |
||||
Income tax expense (benefit) |
|
3,606 |
|
1.1 |
% |
|
|
(5,753 |
) |
(2.0 |
)% |
|
|
3,424 |
|
0.3 |
% |
|
|
(4,010 |
) |
(0.4 |
)% |
||||
NET INCOME |
|
9,333 |
|
2.8 |
% |
|
|
7,253 |
|
2.5 |
% |
|
|
10,820 |
|
0.9 |
% |
|
|
20,990 |
|
1.9 |
% |
||||
Less: Net income attributable to non-controlling interests |
|
623 |
|
0.2 |
% |
|
|
30 |
|
— |
% |
|
|
613 |
|
— |
% |
|
|
726 |
|
0.1 |
% |
||||
NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC. |
$ |
8,710 |
|
2.6 |
% |
|
$ |
7,223 |
|
2.5 |
% |
|
$ |
10,207 |
|
0.8 |
% |
|
$ |
20,264 |
|
1.9 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings per share of Class A common stock: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic |
$ |
0.22 |
|
|
|
$ |
0.18 |
|
|
|
$ |
0.26 |
|
|
|
$ |
0.51 |
|
|
||||||||
Diluted |
$ |
0.21 |
|
|
|
$ |
0.17 |
|
|
|
$ |
0.24 |
|
|
|
$ |
0.48 |
|
|
||||||||
Weighted-average shares of Class A common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic |
|
40,047 |
|
|
|
|
39,470 |
|
|
|
|
39,830 |
|
|
|
|
39,419 |
|
|
||||||||
Diluted |
|
41,872 |
|
|
|
|
43,944 |
|
|
|
|
44,203 |
|
|
|
|
43,899 |
|
|
||||||||
_________________ |
||
(1) |
As a percentage of Shack sales. |
|
SHAKE SHACK INC. |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(UNAUDITED) |
|||||||
(in thousands) |
|||||||
|
Fifty-Two Weeks Ended |
||||||
|
December 25
|
|
December 27
|
||||
OPERATING ACTIVITIES |
|
|
|
||||
Net income (loss) (including amounts attributable to non-controlling interests) |
$ |
10,820 |
|
|
$ |
20,990 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
102,468 |
|
|
|
91,242 |
|
Amortization of debt issuance costs |
|
1,047 |
|
|
|
1,047 |
|
Amortization of cloud computing assets |
|
2,138 |
|
|
|
1,798 |
|
Non-cash operating lease cost |
|
77,432 |
|
|
|
67,781 |
|
Equity-based compensation |
|
15,915 |
|
|
|
14,888 |
|
Deferred income taxes |
|
(1,054 |
) |
|
|
(9,074 |
) |
Non-cash interest |
|
(102 |
) |
|
|
116 |
|
Gain on sale of equity securities |
|
— |
|
|
|
(81 |
) |
Net amortization of discount on held-to-maturity securities |
|
(440 |
) |
|
|
(1,620 |
) |
Impairments, loss on disposal of assets, and Shack closures |
|
32,368 |
|
|
|
3,007 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(2,839 |
) |
|
|
(2,970 |
) |
Inventories |
|
(610 |
) |
|
|
(1,220 |
) |
Prepaid expenses and other current assets |
|
(2,629 |
) |
|
|
(2,253 |
) |
Other assets |
|
(2,896 |
) |
|
|
(6,307 |
) |
Accounts payable |
|
3,356 |
|
|
|
687 |
|
Accrued expenses |
|
6,644 |
|
|
|
9,513 |
|
Accrued wages and related liabilities |
|
4,477 |
|
|
|
3,328 |
|
Other current liabilities |
|
(712 |
) |
|
|
(2,809 |
) |
Operating lease liabilities |
|
(77,167 |
) |
|
|
(58,216 |
) |
Other long-term liabilities |
|
2,939 |
|
|
|
2,292 |
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
171,155 |
|
|
|
132,139 |
|
INVESTING ACTIVITIES |
|
|
|
||||
Purchases of property and equipment |
|
(135,499 |
) |
|
|
(146,167 |
) |
Purchases of held-to-maturity securities |
|
— |
|
|
|
(94,019 |
) |
Maturities of held-to-maturity marketable securities |
|
69,420 |
|
|
|
27,078 |
|
Purchases of equity securities |
|
— |
|
|
|
(690 |
) |
Sales of equity securities |
|
— |
|
|
|
81,478 |
|
NET CASH USED IN INVESTING ACTIVITIES |
|
(66,079 |
) |
|
|
(132,320 |
) |
FINANCING ACTIVITIES |
|
|
|
||||
Payments on principal of finance leases |
|
(3,964 |
) |
|
|
(3,272 |
) |
Distributions paid to non-controlling interest holders |
|
(482 |
) |
|
|
(162 |
) |
Net proceeds from stock option exercises |
|
1,627 |
|
|
|
744 |
|
Employee withholding taxes related to net settled equity awards |
|
(6,198 |
) |
|
|
(2,994 |
) |
NET CASH USED IN FINANCING ACTIVITIES |
|
(9,017 |
) |
|
|
(5,684 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
2 |
|
|
|
(3 |
) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
96,061 |
|
|
|
(5,868 |
) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
224,653 |
|
|
|
230,521 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
320,714 |
|
|
$ |
224,653 |
|
SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
To supplement the Consolidated Financial Statements, which are prepared and presented in accordance with
Restaurant-Level Profit
Restaurant-level profit, also formerly referred to as Shack-level operating profit, is defined 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.
How This Measure Is Useful
When used in conjunction with GAAP financial measures, Restaurant-level profit and Restaurant-level profit margin are supplemental measures of operating performance that the Company believes are useful measures to evaluate the performance and profitability of its Shacks. Additionally, Restaurant-level profit and Restaurant-level profit margin are key metrics used internally by management to develop internal budgets and forecasts, as well as assess the performance of its Shacks relative to budget and against prior periods. It is also used to evaluate employee compensation as it serves as a metric in certain performance-based employee bonus arrangements. The Company believes presentation of Restaurant-level profit and Restaurant-level profit margin provides investors with a supplemental view of its operating performance that can provide meaningful insights to the underlying operating performance of the Shacks, as these measures depict the operating results that are directly impacted by the Shacks and exclude items that may not be indicative of, or are unrelated to, the ongoing operations of the Shacks. It may also assist investors to evaluate the Company's performance relative to peers of various sizes and maturities and provides greater transparency with respect to how management evaluates the business, as well as the financial and operational decision-making.
Limitations of the Usefulness of this Measure
Restaurant-level profit and Restaurant-level profit margin may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of Restaurant-level profit and Restaurant-level profit margin is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Restaurant-level profit excludes certain costs, such as General and administrative expenses and Pre-opening costs, which are considered normal, recurring cash operating expenses and are essential to support the operation and development of the Company's Shacks. Therefore, this measure may not provide a complete understanding of the Company's operating results as a whole and Restaurant-level profit and Restaurant-level profit margin should be reviewed in conjunction with the Company's GAAP financial results. A reconciliation of Restaurant-level profit to Income (loss) from Operations, the most directly comparable GAAP financial measure, is set forth below.
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
||||||||||||
(dollar amounts in thousands) |
December 25
|
|
December 27
|
|
December 25
|
|
December 27
|
||||||||
Income (loss) from operations |
$ |
10,210 |
|
|
$ |
(1,295 |
) |
|
$ |
3,038 |
|
|
$ |
5,921 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Licensing revenue |
|
12,052 |
|
|
|
10,468 |
|
|
|
45,047 |
|
|
|
40,714 |
|
Add: |
|
|
|
|
|
|
|
||||||||
General and administrative expenses |
|
41,099 |
|
|
|
35,816 |
|
|
|
149,047 |
|
|
|
129,542 |
|
Depreciation and amortization expense |
|
25,809 |
|
|
|
24,538 |
|
|
|
102,468 |
|
|
|
91,242 |
|
Pre-opening costs |
|
5,118 |
|
|
|
5,128 |
|
|
|
15,547 |
|
|
|
19,231 |
|
Impairments, loss on disposal of assets, and Shack closures |
|
1,711 |
|
|
|
909 |
|
|
|
32,368 |
|
|
|
3,007 |
|
Adjustment: |
|
|
|
|
|
|
|
||||||||
Employee benefit charges(1) |
|
— |
|
|
|
— |
|
|
|
453 |
|
|
|
— |
|
Restaurant-level profit |
$ |
71,895 |
|
|
$ |
54,628 |
|
|
$ |
257,874 |
|
|
$ |
208,229 |
|
|
|
|
|
|
|
|
|
||||||||
Total revenue |
$ |
328,684 |
|
|
$ |
286,243 |
|
|
$ |
1,252,608 |
|
|
$ |
1,087,533 |
|
Less: Licensing revenue |
|
12,052 |
|
|
|
10,468 |
|
|
|
45,047 |
|
|
|
40,714 |
|
Shack sales |
$ |
316,632 |
|
|
$ |
275,775 |
|
|
$ |
1,207,561 |
|
|
$ |
1,046,819 |
|
|
|
|
|
|
|
|
|
||||||||
Restaurant-level profit margin(2) |
|
22.7 |
% |
|
|
19.8 |
% |
|
|
21.4 |
% |
|
|
19.9 |
% |
_________________ |
||
(1) |
Expenses related to |
|
(2) |
As a percentage of Shack sales. |
|
SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
EBITDA and Adjusted EBITDA
EBITDA, a non-GAAP measure, is defined as Net income before interest expense (net of interest income), Income tax expense (benefit) and Depreciation and amortization expense. Adjusted EBITDA, a non-GAAP measure, is defined as EBITDA (as defined above) excluding equity-based compensation expense, Impairments, loss on the disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, EBITDA and adjusted EBITDA are supplemental measures of operating performance that the Company believes are useful measures to facilitate comparisons to historical performance and competitors' operating results. Adjusted EBITDA is a key metric used internally by management to develop internal budgets and forecasts and also serves as a metric in its performance-based equity incentive programs and certain bonus arrangements. The Company believes presentation of EBITDA and adjusted EBITDA provides investors with a supplemental view of the Company's operating performance that facilitates analysis and comparisons of its ongoing business operations because they exclude items that may not be indicative of the Company's ongoing operating performance.
Limitations of the Usefulness of These Measures
EBITDA and adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of EBITDA and adjusted EBITDA is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA and adjusted EBITDA exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of the Company's performance and should be reviewed in conjunction with the GAAP financial measures. A reconciliation of EBITDA and adjusted EBITDA to Net income, the most directly comparable GAAP measure, is set forth below.
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
||||||||||||
(dollar amounts in thousands) |
December 25
|
|
December 27
|
|
December 25
|
|
December 27
|
||||||||
Net income |
$ |
9,333 |
|
|
$ |
7,253 |
|
|
$ |
10,820 |
|
|
$ |
20,990 |
|
Depreciation and amortization expense |
|
25,809 |
|
|
|
24,538 |
|
|
|
102,468 |
|
|
|
91,242 |
|
Interest (income) expense, net |
|
474 |
|
|
|
(562 |
) |
|
|
1,284 |
|
|
|
(726 |
) |
Income tax expense (benefit) |
|
3,606 |
|
|
|
(5,753 |
) |
|
|
3,424 |
|
|
|
(4,010 |
) |
EBITDA |
|
39,222 |
|
|
|
25,476 |
|
|
|
117,996 |
|
|
|
107,496 |
|
|
|
|
|
|
|
|
|
||||||||
Equity-based compensation |
|
4,376 |
|
|
|
3,668 |
|
|
|
15,915 |
|
|
|
15,093 |
|
Amortization of cloud-based software implementation costs |
|
561 |
|
|
|
478 |
|
|
|
2,138 |
|
|
|
1,798 |
|
Impairments, loss on disposal of assets, and Shack closures |
|
1,711 |
|
|
|
909 |
|
|
|
32,368 |
|
|
|
3,007 |
|
Restatement costs(1) |
|
778 |
|
|
|
— |
|
|
|
2,378 |
|
|
|
— |
|
CEO transition costs |
|
38 |
|
|
|
206 |
|
|
|
679 |
|
|
|
206 |
|
Employee benefit charges(2) |
|
— |
|
|
|
— |
|
|
|
453 |
|
|
|
— |
|
Legal settlements(3) |
|
— |
|
|
|
(385 |
) |
|
|
— |
|
|
|
619 |
|
Severance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
211 |
|
Other(4) |
|
8 |
|
|
|
1,065 |
|
|
|
3,652 |
|
|
|
3,386 |
|
Adjusted EBITDA |
$ |
46,694 |
|
|
$ |
31,417 |
|
|
$ |
175,579 |
|
|
$ |
131,816 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA margin(5) |
|
14.2 |
% |
|
|
11.0 |
% |
|
|
14.0 |
% |
|
|
12.1 |
% |
_________________ |
||
(1) |
Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K. |
|
(2) |
Expenses related to |
|
(3) |
Expenses incurred to establish accruals related to the settlements of legal matters. |
|
(4) |
Expenses incurred for professional fees related to non-recurring matters. |
|
(5) |
Calculated as a percentage of Total revenue, which was |
|
SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Adjusted Pro Forma Net Income (Loss) and Adjusted Pro Forma Earnings (Loss) Per Fully Exchanged and Diluted Share
Adjusted pro forma net income represents Net income attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Class A common stock, adjusted for certain non-recurring items that the Company does not believe are directly related to its core operations and may not be indicative of recurring business operations. Adjusted pro forma earnings per fully exchanged and diluted share is calculated by dividing adjusted pro forma net income 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.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share are supplemental measures of operating performance that the Company believes are useful measures to evaluate performance period-over-period and relative to its competitors. By assuming the full exchange of all outstanding LLC Interests, the Company believes these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in Net income attributable to Shake Shack Inc. driven by increases in its ownership of SSE Holdings, which are unrelated to the Company's operating performance, and excludes items that are non-recurring or may not be indicative of ongoing operating performance.
Limitations of the Usefulness of These Measures
Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share should not be considered alternatives to Net income and earnings (loss) per share, as determined under GAAP. While these measures are useful in evaluating the Company's performance, it does not account for the earnings (loss) attributable to the non-controlling interest holders and therefore does not provide a complete understanding of the Net income attributable to Shake Shack Inc. Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share should be evaluated in conjunction with GAAP financial results. A reconciliation of adjusted pro forma net income to Net income attributable to Shake Shack Inc., the most directly comparable GAAP measure, and the computation of adjusted pro forma earnings per fully exchanged and diluted share are set forth below.
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
||||||||||||
(in thousands, except per share amounts) |
December 25
|
December 27
|
|
December 25
|
|
December 27
|
|||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Net income attributable to Shake Shack Inc. |
$ |
8,710 |
|
$ |
7,223 |
|
|
$ |
10,207 |
|
|
$ |
20,264 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Reallocation of Net income attributable to non-controlling interests from the assumed exchange of LLC Interests(1) |
|
623 |
|
|
30 |
|
|
|
613 |
|
|
|
726 |
|
|
Restatement costs(2) |
|
778 |
|
|
— |
|
|
|
2,378 |
|
|
|
— |
|
|
CEO transition costs |
|
38 |
|
|
206 |
|
|
|
679 |
|
|
|
206 |
|
|
Employee benefit charges(3) |
|
— |
|
|
— |
|
|
|
453 |
|
|
|
— |
|
|
Impairment charge and Shack closures(4) |
|
1,191 |
|
|
— |
|
|
|
29,348 |
|
|
|
— |
|
|
Legal settlements |
|
— |
|
|
(385 |
) |
|
|
— |
|
|
|
619 |
|
|
Severance |
|
— |
|
|
— |
|
|
|
— |
|
|
|
211 |
|
|
Other(5) |
|
8 |
|
|
1,065 |
|
|
|
3,652 |
|
|
|
3,386 |
|
|
Tax impact of above adjustments(6) |
|
269 |
|
|
(7,108 |
) |
|
|
(6,785 |
) |
|
|
(9,254 |
) |
|
Adjusted pro forma net income |
$ |
11,617 |
|
$ |
1,031 |
|
|
$ |
40,545 |
|
|
$ |
16,158 |
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted-average shares of Class A common stock outstanding—diluted |
|
41,872 |
|
|
43,944 |
|
|
|
44,203 |
|
|
|
43,899 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Assumed exchange of LLC Interests for shares of Class A common stock(1) |
|
2,456 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted pro forma fully exchanged weighted-average shares of Class A common stock outstanding—diluted |
|
44,328 |
|
|
43,944 |
|
|
|
44,203 |
|
|
|
43,899 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted pro forma loss per fully exchanged share—diluted |
$ |
0.26 |
|
$ |
0.02 |
|
|
$ |
0.92 |
|
|
$ |
0.37 |
|
|
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
||||||||||||
|
December 25
|
|
December 27
|
|
December 25
|
|
December 27
|
||||||||
Earnings per share of Class A common stock—diluted |
$ |
0.21 |
|
$ |
0.17 |
|
|
$ |
0.24 |
|
$ |
0.48 |
|
||
Non-GAAP adjustments(7) |
|
0.05 |
|
|
(0.15 |
) |
|
|
0.68 |
|
|
(0.11 |
) |
||
Adjusted pro forma earnings per fully exchanged share—diluted |
$ |
0.26 |
|
$ |
0.02 |
|
|
$ |
0.92 |
|
$ |
0.37 |
|
||
_________________ |
||
(1) |
Assumes the exchange of all outstanding LLC Interests for shares of Class A common stock, resulting in the elimination of the non-controlling interest and recognition of the net income attributable to non-controlling interests. |
|
(2) |
Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K. |
|
(3) |
Expenses related to |
|
(4) |
Expenses incurred related to Shack closures during fiscal 2024. |
|
(5) |
Expenses incurred for professional fees related to non-recurring matters. |
|
(6) |
Represents the tax effect of the aforementioned adjustments and pro forma adjustments to reflect corporate income taxes at assumed effective tax rates of |
|
(7) |
Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation of Adjusted pro forma net income above, for additional information. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250219067306/en/
Media:
Meg Davis, Shake Shack
mcastranova@shakeshack.com
Investor Relations:
Melissa Calandruccio, ICR
Michelle Michalski, ICR
(844) SHACK-04 (844-742-2504)
investor@shakeshack.com
Source: Shake Shack Inc.
FAQ
What was Shake Shack's (SHAK) revenue growth in Q4 2024?
How many new locations did SHAK open in 2024?
What was SHAK's same-store sales growth in fiscal year 2024?
What was Shake Shack's (SHAK) net income for Q4 2024?
What was SHAK's restaurant-level profit margin in Q4 2024?
