Shake Shack Provides Fourth Quarter 2024 Business Update and Long-Term Targets
Shake Shack (NYSE: SHAK) released preliminary Q4 2024 results, reporting strong performance with total revenue of $328.7 million, up 14.8% year-over-year. The company achieved same-Shack sales growth of 4.3% and expanded restaurant margins by nearly 300 basis points to 22.7%. Adjusted EBITDA grew 48% year-over-year.
The company updated its long-term growth target, now aiming for at least 1,500 Company-operated Shacks, significantly up from the previous target of 450. For FY2025, Shake Shack projects total revenue growth of 16-18%, restaurant margins of approximately 22%, and Adjusted EBITDA growth of 14-20%.
In FY2024, the company opened a record 43 new Company-operated Shacks and 33 licensed locations. The company's three-year targets include low-teens percentage growth in both total revenue and system-wide units, with restaurant-level profit margins of at least 22%.
Shake Shack (NYSE: SHAK) ha rilasciato i risultati preliminari per il quarto trimestre del 2024, riportando una forte performance con un fatturato totale di $328,7 milioni, in aumento del 14,8% rispetto all'anno precedente. L'azienda ha raggiunto una Crescita delle vendite same-Shack del 4,3% e ha ampliato i margini dei ristoranti di quasi 300 punti base, raggiungendo il 22,7%. L'Adjusted EBITDA è cresciuto del 48% rispetto all'anno precedente.
L'azienda ha aggiornato il suo obiettivo di crescita a lungo termine, puntando ora ad avere almeno 1.500 Shack gestiti dalla società, un aumento significativo rispetto al precedente obiettivo di 450. Per l'anno fiscale 2025, Shake Shack prevede una crescita del fatturato totale del 16-18%, margini dei ristoranti di circa il 22% e una crescita dell'Adjusted EBITDA del 14-20%.
Nell'anno fiscale 2024, l'azienda ha aperto un numero record di 43 nuovi Shack gestiti dalla società e 33 sedi con licenza. Gli obiettivi dell'azienda per i prossimi tre anni includono una crescita a due cifre basse sia nel fatturato totale che nelle unità a livello di sistema, con margini di profitto a livello di ristorante di almeno il 22%.
Shake Shack (NYSE: SHAK) presentó resultados preliminares para el cuarto trimestre de 2024, reportando un rendimiento sólido con ingresos totales de $328.7 millones, un aumento del 14.8% interanual. La empresa logró un crecimiento de ventas en same-Shack del 4.3% y amplió los márgenes de los restaurantes en casi 300 puntos básicos al 22.7%. El EBITDA ajustado creció un 48% interanual.
La empresa actualizó su objetivo de crecimiento a largo plazo, ahora apuntando a tener al menos 1,500 Shack operados por la compañía, un aumento significativo del objetivo anterior de 450. Para el año fiscal 2025, Shake Shack proyecta un crecimiento de ingresos totales del 16-18%, márgenes de restaurante de aproximadamente el 22%, y un crecimiento del EBITDA ajustado del 14-20%.
En el año fiscal 2024, la empresa abrió un récord de 43 nuevos Shack operados por la compañía y 33 ubicaciones licenciadas. Los objetivos de la empresa para los próximos tres años incluyen un crecimiento de porcentaje de dos dígitos bajos tanto en ingresos totales como en unidades a nivel de sistema, con márgenes de ganancia a nivel de restaurante de al menos el 22%.
쉐이크 샤크 (NYSE: SHAK)는 2024년 4분기 Preliminary 결과를 발표하며, 총 매출 3억 2천 870만 달러로 전년 대비 14.8% 증가한 강력한 실적을 보고했습니다. 회사는 동일 매장 판매 성장률 4.3%을 달성하였으며, 식당의 마진은 거의 300bp 증가하여 22.7%에 도달했습니다. 조정된 EBITDA는 48% 증가했습니다.
회사는 이제 1,500개의 회사 운영 샤크를 목표로 장기 성장 목표를 업데이트했으며, 이는 이전 목표인 450에서 크게 늘어난 수치입니다. 2025 회계연도에 대해 쉐이크 샤크는 총 매출 성장률 16-18%, 식당 마진 약 22%, 조정된 EBITDA 성장률 14-20%를 예상하고 있습니다.
2024 회계연도에는 기록적으로 43개의 신규 회사 운영 샤크와 33개의 라이센스 매장을 열었습니다. 회사의 3년 목표는 총 매출 및 시스템 전체 단위 모두에서 저 십대 성장률을 포함하며, 식당 수준 이익 마진은 최소 22%를 목표로 하고 있습니다.
Shake Shack (NYSE: SHAK) a publié ses résultats préliminaires pour le quatrième trimestre 2024, rapportant une solide performance avec un chiffre d'affaires total de 328,7 millions de dollars, en hausse de 14,8 % par rapport à l'année précédente. L'entreprise a atteint une croissance des ventes same-Shack de 4,3% et a élargi les marges des restaurants de près de 300 points de base à 22,7 %. Le EBITDA ajusté a augmenté de 48% d'une année sur l'autre.
L'entreprise a mis à jour son objectif de croissance à long terme, visant désormais au moins 1 500 Shack gérés par l'entreprise, un chiffre considérablement supérieur à l'objectif précédent de 450. Pour l'exercice 2025, Shake Shack prévoit une croissance du chiffre d'affaires total de 16 à 18 %, des marges de restaurant d'environ 22 % et une croissance de l'EBITDA ajusté de 14 à 20 %.
Pour l'exercice 2024, l'entreprise a ouvert un nombre record de 43 nouveaux Shack gérés par l'entreprise et 33 emplacements sous licence. Les objectifs de l'entreprise pour les trois prochaines années incluent une croissance à faible chiffre d'affaires à la fois en termes de chiffre d'affaires total et d'unités à l'échelle du système, avec des marges bénéficiaires au niveau des restaurants d'au moins 22 %.
Shake Shack (NYSE: SHAK) hat vorläufige Ergebnisse für das vierte Quartal 2024 veröffentlicht und dabei eine starke Leistung mit einem Gesamtumsatz von 328,7 Millionen Dollar berichtet, was einem Anstieg von 14,8 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte ein Wachstum der Same-Shack-Umsätze von 4,3% und erweiterte die Restaurantmargen um nahezu 300 Basispunkte auf 22,7 %. Das bereinigte EBITDA wuchs um 48% im Vergleich zum Vorjahr.
Das Unternehmen aktualisierte sein langfristiges Wachstumsziel und strebt nun an, mindestens 1.500 von der Gesellschaft betriebene Shacks zu betreiben, ein erheblicher Anstieg gegenüber dem vorherigen Ziel von 450. Für das Geschäftsjahr 2025 prognostiziert Shake Shack ein Wachstum des Gesamtumsatzes von 16-18%, Restaurantmargen von etwa 22% und ein Wachstum des bereinigten EBITDA von 14-20 %.
Im Geschäftsjahr 2024 eröffnete das Unternehmen einen Rekord von 43 neuen von der Gesellschaft betriebenen Shacks sowie 33 lizenzierten Standorten. Die Zielvorgaben des Unternehmens für die nächsten drei Jahre beinhalten ein Wachstum im niedrigen zweistelligen Bereich sowohl im Gesamtumsatz als auch bei den betrieblichen Einheiten, bei Restaurantprofitmargen von mindestens 22 %.
- Q4 2024 revenue increased 14.8% to $328.7 million
- Adjusted EBITDA grew 48% year-over-year in Q4
- Restaurant margins expanded by 300 basis points to 22.7%
- Record 43 new Company-operated Shacks opened in FY2024
- Same-Shack sales grew 4.3% in Q4 2024
- Updated growth target to 1,500+ Company-operated locations from 450
- None.
Insights
The preliminary Q4 2024 results showcase remarkable performance with 14.8% revenue growth to
The updated long-term target of 1,500+ company-operated locations represents a dramatic expansion from the original 450-unit target, supported by strong unit economics with projected cash-on-cash returns of
The 2025 guidance targeting
The expansion strategy aligns with shifting consumer dining preferences and market opportunities. The
System-wide sales reaching
The six strategic priorities for 2025 represent a comprehensive approach to sustainable growth, with particular emphasis on culture, operations and strategic capabilities. The accelerated expansion plan is supported by over 20 years of operational data and proven returns, reducing execution risk.
The dual-growth strategy through company-operated and licensed locations provides flexibility in market entry and capital allocation. The projected general and administrative expenses of
Updates Company-operated footprint target to at least 1,500 Shacks
4QFY2024 Adjusted EBITDA grew
"Since the Company's founding in 2004, Shake Shack has been on a continuous journey of expanding how we bring Enlightened Hospitality to our guests and elevate our team members and our communities. We are proud to announce that we ended FY2024 with 329 Company-operated Shacks with a marked improvement in our profitability and returns. However, we believe that we are just getting started, and see an ample runway for growth ahead. We are committed to bringing the world's best fine casual experience to as many guests, team members, and communities as possible. In doing so, we aim to bring pride to everyone in our Company and to deliver a strong financial benefit for our team members and shareholders.
"We designed our six 2025 Strategic Priorities to deliver on our robust opportunity, mission and objective. These are to (1) Build a culture of leaders, (2) Optimize restaurant operations, (3) Drive comp sales by increasing guest frequency, (4) Build and operate our Shacks with best-in-class returns, (5) Accelerate our Licensed business, and (6) Invest in long-term strategic capabilities. Leveraging our internal data models, as well as more than 20 years of opening and operating our Shacks with among industry-leading returns, we now see our domestic Company-operated footprint to reach at least 1,500 Shacks," said CEO Rob Lynch.
"We ended 2024 with broad based strength in the business. Our preliminary unaudited results show that in the fourth quarter FY2024, we grew same-Shack sales by
The presentation at ICR will be held on Monday, January 13, 2025 at 9:00 a.m. Eastern Time. Presenting from the Company will be Rob Lynch, Chief Executive Officer, and Katie Fogertey, Chief Financial Officer. The presentation will be webcast live from the Company's Investor Relations website at investor.shakeshack.com on the Events & Presentations page.
For more information, please also see the presentation materials, which will be available on the Company's Investor Relations website on the Events & Presentations page prior to the start of the presentation.
Preliminary Unaudited Results for the Fourth Quarter and Fiscal Year Ended December 25, 2024:(1)
-
Total revenue of
$328.7 million $1.3 billion -
Shack sales of
$316.6 million $1.2 billion -
Licensing revenue of
$12.1 million $45.0 million
-
Shack sales of
-
System-wide sales of
$500.7 million $1.9 billion -
Same-Shack sales up
4.3% versus 2023 in 4Q24 and3.6% versus 2023 in FY24. -
Restaurant-level profit margin(2) expected to be approximately
22.7% of Shack sales in 4Q24 and approximately21.4% of Shack sales in FY24. -
Adjusted EBITDA(2) of
$46.5 million $175.4 million - Opened 43 new Company-operated Shacks in FY24, 19 of which opened in 4Q24. Opened 33 new licensed Shacks in FY24, nine of which opened in 4Q24.
Initial 2025 Financial Guidance:
-
Total revenue of
$1.45 billion $1.48 billion -
Licensing revenue of
$49.0 million $51.0 million
-
Licensing revenue of
-
Same-Shack sales growth of approximately
3% . -
Restaurant-level profit margin(2) to be approximately
22.0% of Shack sales. -
General and administrative expenses to be approximately
11.5% of Total revenue. -
Equity-based compensation to be approximately
$22.0 million -
Depreciation and amortization expense to be
$108.0 million $112.0 million -
Pre-opening costs to be approximately
$17.0 million -
Net income to be
$45.0 million $60.0 million -
Adjusted EBITDA(2) to be
$200.0 million $210.0 million -
Adjusted Pro Forma Tax Rate to be approximately
24.0% -25.0% . - Company-operated openings to be approximately 45.
- Licensed openings to be approximately 35 - 40.
We believe that over the long-term we have the potential to achieve the below targets:
- Total addressable market of 1,500+ Company-operated Shacks.
-
Target unit economics:
-
Average unit volume in the range of
$2.8 million $4.0 million -
Restaurant-level profit margin(2) in the range of
18% -24% . -
Net build costs in the range of
$1.5 million $3.0 million -
Cash-on-cash returns in the range of at least
30% -33% .
-
Average unit volume in the range of
-
Three-year financial growth targets:
- Total revenue growth low-teens %.
- System-wide unit growth low-teens %.
-
Restaurant-level profit margin(2) at least approximately
22% . - Adjusted EBITDA(2) growth in the range of low to mid-teens %.
(1) |
|
Estimated results are preliminary and unaudited and subject to change based upon completion of the audit and Annual Report on Form 10-K for the fiscal year ended December 25, 2024. |
(2) |
|
Restaurant-level profit margin and Adjusted EBITDA are non-GAAP measures. See below for full definitions and discussions of these measures. |
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 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, 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, 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.
"Average unit volume" is calculated by dividing total Shack sales by the number of Shacks open during the period. For Shacks that are not open for the entire period, fractional adjustments are made to the number of Shacks in the denominator such that it corresponds to the period of associated sales.
"Adjusted Pro Forma Effective Tax Rate" represents the effective tax rate 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 the Company does not believe are directly related to its core operations and may not be indicative of its recurring business operations.
"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.
The Company is not able to reconcile the expected preliminary guided non-GAAP estimates to the most directly comparable GAAP financial measures without unreasonable effort because it is unable to predict, forecast or determine the probable significance of various reconciling items with a reasonable degree of accuracy. Accordingly, the most directly comparable GAAP estimates are not provided.
When used in conjunction with GAAP financial measures, the non-GAAP measures included in this press release are supplemental measures of operating performance that the Company believes are useful measures to evaluate the performance and profitability of its Shacks, and 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. The Company believes the presentation of these measures provides investors with a supplemental view of its operating performance that can provide meaningful insights to the underlying operating performance of the Company. These measures may differ from similarly titled measures used by other companies due to different methods of calculation, and presentation of these measures is not intended to be considered in isolation for, or superior to, the financial information prepared and presented in accordance with GAAP.
Cautionary Note on Forward-Looking Statements
This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, 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 included in this press release are forward-looking statements, including, but not limited to, statements regarding the Company's long-term targets, strategic initiatives, preliminary expected financial results and operating performance for fiscal 2024 and the fourth quarter of fiscal 2024, expected development targets, including expected Shack construction and openings, and expected same-Shack sales growth and trends in the Company’s operations. Forward-looking statements discuss the Company’s current expectations, targets and projections relating to its financial position, results of operations, 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," "outlook," "potential," "preliminary," "project," "projection," "plan," "seek," "target," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions. All forward-looking statements are expressly qualified in their entirety by these cautionary statements, and involve risks and uncertainties that could cause actual results or events to differ materially from the expectations discussed in this press release. Some of the factors which could cause results to differ materially from the Company’s expectations or cause the Company to not meet its long-term targets include 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 the Company's 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 the Company's internal controls over financial reporting identified in connection with the restatement described in the Company's Annual Report on Form 10-K filed with the SEC on February 29, 2024 or otherwise. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2023 and the Company's other filings as filed with the SEC. All of the Company's SEC filings are available online at www.sec.gov, www.shakeshack.com or upon request from Shake Shack Inc. The forward-looking statements included in this press release are made only as of the date hereof and you should not place undue reliance on these forward-looking statements. There can be no assurance that the results or developments currently anticipated by the Company will be realized, or that the Company will achieve its potential long-term targets as updated and currently in place. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. In addition, the preliminary financial results set forth in this press release are preliminary and unaudited, and these estimates are based on information currently available to the Company. While the Company believes these estimates are meaningful, they could differ from the actual results that the Company ultimately reports in its Annual Report on Form 10-K for the fiscal year ended December 25, 2024. The Company assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended December 25, 2024.
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 550 locations system-wide, including over 350 in 33 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250111140182/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
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