Slide 1: Q3 2017 Supplemental Earnings Slides
SHAKE &3 SHACK’ Q3 2017 Supplemental Earnings Slides November 1, 2017
Slide 2: Cautionary Note On Forward-looking Statements
1) Cautionary Note On Forward-looking Statements This presentation contains forward-looking 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 that may cause actual
Slide 3: Earnings Highlights Third Quarter 2017
KD Earnings Highlights Third Quarter 2017 Total Revenue ($M) Shack-Level Operating Profit' ($M) _ 20% —* $21 @3'16 3/17 @3'16 @3'17 Operating Income ($M) Adjusted EBITDA' ($M) __—— 120% —* $18 | 3/16 @3/17 Q3'16 Q3'17
Slide 4: Domestic Company-Operated Shack Openings Continue To Accelerate
. Domestic Company-Operated Shack D . . — Openings Continue To Accelerate = Domestic Company-Operated Shacks (At Period End) Rapid Domestic Growth 156. Four new Shacks opened in Q3 ‘17 120-125 * Henderson, NV 125 = Morningside Heights, NY * Park North, TX 100 n CAGR 46% 88-90 = Livingston, NJ 79 75
Slide 5: Licensing Growth Consistently Strong, With Focus On Asia
Licensing Growth Consistently Strong, SS With Focus On Asia = Licensed Shacks (At Period End) Diversified International Growth 190% Now operating globally in 12 countries 90 84-86 80 Plans to expand further in at least 5 existing markets and 1 to 2 new 70 68 markets in 2018/2019, including Hong Kong
Slide 6: NYC Continues To Represent A Significant Portion Of Same-Shack Sales
NYC Continues To Represent A Significant Portion Of Same-Shack Sales! kD Composition of Same-Shack Sales! Declining Share of Same-Shack Sales! Attributable to NYC 100%, 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 15 Minyc Other 16 Q3 17 YID As of @3 ‘17, New York City represented 26% of our Same-Shack Un
Slide 7: Strong Shack-level Volumes And Margins Across All Regions
Strong Shack-level Volumes And Margins a Across All Regions = Domestic Company-Operated Shacks by Region', Q3 ‘17 TTM? NYC Northeast Southeast Midwest West 93°17TIM Total Shack Count 16 32 14 7 10 79 AUS $7.2M $3.8M $3.5M $4.5M $4.8M $4.7M SLOP 944 28% 25% 26% 31% 28% 27% 1. The regions of domestic
Slide 8: Consistent, Strong Performance Over 5+ Years
1) Consistent, Strong Performance Over 5+ Years Total Revenue ($M) _—— CAGR 47% Cash Flow From Operations ($M) CAGR wi —_ : | $41 a Bi 412 13 14 15 16 Q3'17 TIM? System-wide Shack Count Shack System-wide Sales! ($M) (At Period End) CAGR 49% eon si TH 12°13 14°15 16317 12 13 14 16 a v TIM? |. See opp
Slide 9: Compelling Unit Level Returns To Date And Going Forward
Compelling Unit Level Returns To Date And Going aan Forward (Illustrative) S 0 Company-wide Average Projected New Unit Metrics iit nae (Illustrative) \Uv2 $5.0M + $2.8M-$3.2M4 Shack-Level 28% 18% - 22%4 Cash on Cash Cash on Cash Free Cash Flow? Return® Free Cash Flow? Return® 1. Bepreseis he overage
Slide 10: 2017 & 2018 Full Year Guidance
1) 2017 & 2018 Full Year Guidance FY 2017 FY 2017 FY 2018 August 3, 2017 November 1, 2017 November 1, 2017 Revenue $351M to $355M. $354M to $355M = Same-Shack sales growth -2.0% to -3.0% -1.5% to -2.0% £ Domestic company-operated openings 23 to 24 24 to 26 32 to 35 licensed Shack openings 15, net 18
Slide 11: Our Guest
Our Guest Team Members = Higher wages - starting at $15/hour = Reduced cashier hours - maximizing employee time to guide guests and focus on hospitality = Dual kitchen lines increases ability to fulfil peak demand in-Shack and mobile/delivery Guests = Anew visual journey through our menu, with ease
Slide 12: Guest Experience
Guest Experience = Seamless orderto-pickup experience = 15-minute scheduling increments = Allows guests more time to browse menu in a relaxed setting " Traction = New Shack average App orders as a % of total orders higher than company-wide average = App orders as « % of sales continue to increase =
Slide 13: Delivery continues to be an important and evolving part of the restaurant landscape
Delivery continues to be an important and evolving part of the restaurant landscape = Shake Shack continues to partner selectively and pilot delivery programs Goal of ensuring that the guest experience is consistent across distribution channels - we've learned a lot so far and continue to do so y te
Slide 14: Culinary innovation is central to what we do
Culinary innovation is central to what we do = Q3 saw the introduction of new, seasonal shakes and Hot Chick’n as well as hyperlocal collaborations with celebrity chefs and tastemakers, which continue to drive guest engagement and pay homage to our fine dining roots Innovating across all categories
Slide 15: Appendix
1) Appendix GAAP AND NON-GAAP MEASURES
Slide 16: Income Statement
Income Statement Third Quarter And Year To Date 2017 (dollar amounts in thousands, except per share amounts) Thirteen Weeks Ended Thirty-Nine Weeks Ended 1) ‘September 27, 2017 ‘September 28, 2016 ‘September 27, 2017 ‘September 28, 2016 Shack sales Licensing revenue TOTAL REVENUE ‘Shack-level operat
Slide 17: Definitions
Definitions “Adjusted EBITDA,” a nonGAAP meosure, is defined as EBITDA excluding equitybased compensation expense, deferred rent expense, losses on the disposal of property ond equipment, as well as certain nonrecurring items that the Company does not believe direcily rellect is core operations and
Slide 18: Shack-Level Operating Profit
OD Shack-Level Operating Profit 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. How This Measure Is Useful W
Slide 19: Shack-Level Operating Profit
1) Shack-Level Operating Profit Thirteen Weeks Ended Thirty-Nine Weeks Ended Fiscal Year Ended September 27, September 28, September 27, September 28, December 28, (dolar amount in hhousands) 2017 2016 2017 2016 2016 Operating income 3 toe $ ai70 S$ 27a $ 287 $ 27,805 Less Licensing revenue 3,509 2,
Slide 20: Shack-Level Operating Profit by Region
Shack-Level Operating Profit by Region ‘dolar amounts in housands) Domessc Company-operated Shacks (Opened During 317 TTM Period) Domessc Company-operated Shacks (as 00317) Operating income Less LGcensing revenue Aa General and adminisatve expenses Depreciaton expense re-opening coss Loss on deposal
Slide 21: Adjusted EBITDA
1) Adjusted EBITDA 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 compensation expense, deferred
Slide 22: Adjusted EBITDA
Adjusted EBITDA Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27, September 28, September 27, September 28, (in thousands) 2017 2016 2017 2016 Netincome $ 7870 $§ 6769 § 19.916 $ 16,689 Depreciation expense 5,604 3.719 15,610 10,229 Interest expense, net 456 66 1,086 198 Income tax expense
Slide 23: Investor Contact
Investor Contact: Melissa Calandruccio, ICR Michelle Michalski, ICR (844) SHACK-04 (844-742-2504) investor@shakeshack.com Media Contact: Edwin Bragg, Shake Shack (646) 747-6654 ebragg@shakeshack.com