Slide 1: Q3 2018 Supplemental Earnings Slides
SHAKE SHACK’ Q3 2018 Supplemental Earnings Slides November 1, 2018 erase z ale D -
Slide 2: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements G2 Third Quarter 2018 | This presentation contains forwardlooking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"), which are subject to known and unknown risks, uncertainties and other important factors th
Slide 3: Earnings Highlights
Earnings Highlights Third Quarter 2018 OD Total Revenue ($M) Seven domestic, company-operated Shacks and two licensed Shacks opened in the Third Quarter Entered new markets of Birmingham and Nashville, and expanded footprint in New York City, Washington D.C. area and Kansas City Entry to Latin Ameri
Slide 4: Consistent, Strong Performance Across All Key Metrics
Consistent, Strong Performance Across All Key Metrics Third Quarter 2018 OD Total Revenue ($M) Cash Flow from Operations ($M) _ woe _—_— 53% 359 ool og Bl Hi - m _BH 13 14 q q Q3'18 13 a 15 q Q3'18 TM ? TIM 2 System-wide Shack Count Shack System-wide Sales! ($M) (At Period End) _ wo CAGR 41% a 188 6
Slide 5: • • • • • • •
• 17 • 15 • 11 73 10 49 • 7 33 7 6 14 21 • • • 5
Slide 6: Licensing Growth Consistently Strong
OGD Licensing Growth Consistently Strong Licensed Shacks (At Period End) Opened 12 Licensed Shacks year-to-date and opened 100 5 ninth Shack in the City of London and Hartsfield- 95 - Mus Jackson Atlanta Airport in the Third Quarter MN Middle East, Turkey, Russia 90 4 Mi uk 83 - 85 Airport growth pl
Slide 7: Strong Shack-level Volumes & Margins Across All Regions
Strong Shack-level Volumes & Margins Across All Regions OGD Domestic Company-Operated Shacks by Region!, Q3 ’18 TTM2 NYC Northeast Southeast Midwest West Q3'18 TTM Total Shack Count 20 37 21 12 17 107 Unit Growth 4 5 7 5 7 28 Revenue Growth 14% 19% 43% 60% 61% 29% AuUV3 $6.9M $3.7M $3.5M $3.8M $4.7M
Slide 8: Strong Revenue Growth Across All Regions, While Maintaining Comp Base Performance
Strong Revenue Growth Across All Regions, BD While Maintaining Comp Base Performance — 29% | Non-CompSales $417.5M HM Same Shack Sales +$25.1M $0.7 +$14.3M _ “$0.1M_ +$16.2M po +$1.9M +$21.0M +$15.3M -$0.4M $324.1 mM a -$0.7M a 2017 Q3 TTM NYC Northeast Southeast Midwest West 2018 Q3 TTM Comp base r
Slide 9: Full Year 2018 Guidance & 2019 Headlines
OD Full Year 2018 Guidance & 2019 Headlines FY 2018 Guidance FY 2018 Guidance FY 2019 Headlines August 2, 2018 November 1, 2018 November 1, 2018 Revenue $446M to $450M $450M to $452M * Same-Shack sales growth 0.0% to 1.0% 0.0% to 1.0% * AUV $4.1M to $4.2M $4.2M to $4.3M * Pes iataee tne Tet 32 to 35
Slide 10: West Village, NYC - Innovation Kitchen and Leadership Center
West Village, NYC - Innovation Kitchen and Leadership Center The Innovation Kitchen, located on the lower level of the West Village Shack will be the hub of all menu development. This dedicated space will allow our culinary team to get even more creative, improve our core menu, work on throughput in
Slide 11: Appendix
Appendix INCLUDING GAAP AND NON-GAAP MEASURES OD 11
Slide 12: Shack sales, Licensing revenue, Total revenue
Thirteen Weeks Ended Thirty-Nine Weeks Ended September 26, 2018 September 27, 2017 September 26, 2018 September 27, 2017 Shack sales $ 115,882 96.9% $ 91,100 96.3% $ 324,869 97.0% $ 253,258 96.4% Licensing revenue 3,765 3.1% 3,509 3.7% 10,176 3.0% 9,416 3.6% TOTAL REVENUE 119,647 100.0% 94,609 100.0
Slide 13: Definitions
Definitions Third Quarter 2018 OGD “Adjusted EBITDA,” a nonGAAP measure, is defined as EBITDA excluding equitybased compensation expense, deferred rent expense, losses on the disposal of property and equipment, as well as certain nonrecurring items that the Company does not believe directly reflect
Slide 14: Shack-Level Operating Profit Definition
Shack-Level Operating Profit Definition Third Quarter 2018 OD Shack-Level Operating Profit Shacklevel operating profit is defined as Shack sales less Shacklevel operating expenses, including food and paper costs, labor and related expenses, other operating expenses and occupancy and related expenses
Slide 15: Shack-Level Operating Profit Reconciliation
Thirteen Weeks Ended Thirty-Nine Weeks Ended (dollar amounts in thousands) September 26, 2018 September 27, 2017 September 26, 2018 September 27, 2017 Operating income $ 9,343 $ 10,610 $ 28,875 $ 27,975 Less: Licensing revenue 3,765 3,509 10,176 9,416 Add: General and administrative expenses 13,151
Slide 16: Domestic Company-operated Shacks By Region, Q3 '18 TTM
Total Company Domestic Company-operated Shacks By Region(1), Q3 '18 TTM Trailing Twelve Corporate / (dollar amounts in thousands) Q4 2017 Q1 2018 Q2 2018 Q3 2018 Months NYC Northeast Southeast Midwest West Other (2) Domestic Company-operated Shacks (Opened During Q3 '18 TTM Period) 28 4 5 7 5 7 0 Do
Slide 17: Adjusted EBITDA Definition
Adjusted EBITDA Definition Third Quarter 2018 OD EBITDA and Adjusted EBITDA EBITDA is defined as net income before interest expense (net of interest income), income tax expense and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA (as defined above) excluding equity-based c
Slide 18: Adjusted EBITDA Reconciliation
Thirteen Weeks Ended Thirty-Nine Weeks Ended (in thousands) September 26, 2018 September 27, 2017 September 26, 2018 September 27, 2017 Net income $ 6,946 $ 7,870 $ 22,496 $ 19,916 Depreciation expense 7,439 5,604 20,905 15,610 Interest expense, net 591 456 1,762 1,086 Income tax expense 2,241 2,494
Slide 19: Investor Contact
Investor Contact: Melissa Calandruccio, ICR Michelle Michalski; HIER (844) SHACK-04 (844-74 y 1504 tld | " Mediar€< Cont | pl Ped aA A lore ke Shacky em fh | Bes ee | ia