Shake Shack, Inc. · NYSE:SHAK
Shake Shack — ICR Conference 2021
51 slides from Shake Shack's conference presentation, Jan 12, 2021
Slide 1: 2020 Strategic Plan - ICR Conference
ICR CONFERENCE JANUARY 12, 2021 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 1
Slide 2: Cautionary Note on Forward-Looking Statements
C A U T I O N A RY N O T E O N F O R WA R D - L O O K I N G S TAT E M E N T S This presentation contains forward-looking statements, these cautionary statements. Some of the factors which could cause results to differ materially from the Company’s expectations include the impact of the COVID-19 with
Slide 3: Our Mission and Commitments
OUR MISSION We are on an endless pursuit to create uplifting experiences Elevate Deliver Enlightened Gather communities Do the right thing Empower our team OUR to act like everything we Hospitality at every and enrich our and hold ourselves COMMITMENTS do touchpoint neighborhoods accountable entrepr
Slide 4: Stand for Something Good and Our Commitment to ESG
S TA N D F O R S O M E T H I N G G O O D A N D O U R C O M M I T M E N T T O E S G IN ALL AREAS OF THE BUSINESS INCLUDING MENU AND SOURCING, SUPPORTING O U R T E A M , C O M M U N I T Y E N G A G E M E N T, O P E R AT I O N S A N D C O R P O R AT E G O V E R N A N C E Environmental Social Governance
Slide 5: Q4 and Full Year 2020 Preliminary Results
Q 4 A N D F U L L Y E A R 2 0 2 0 P R E L I M I N A RY R E S U LT S 1 $158M $152M (17.4%) Q4 Total Revenue Q4 Shack Sales2 Decrease in Q4 same-Shack sales3, compared to (31.7%) in Q3 FY 2020: $523M Revenue FY 2020: $506M Shack Sales FY 2020: (27.8%) same-Shack sales 3.5X ~0% Growth of company-owned
Slide 6: Average Weekly Sales Show Continued Recovery
AV E R A G E W E E K LY S A L E S 1 ( AW S ) S H O W C O N T I N U E D R E C O V E RY 2 Q4 AWS $62K Q3 AWS $58K AWS (1%) (3%) Q2 AWS $45K (5%) (10%) Total YoY Shack Sales Growth (11%) (15%) (17%) (Decline) (20%) (21%) Same-Shack Sales %3 (23%) (23%) (29%) (32%) (32%) (34%) (39%) (42%) (42%) (56%) (6
Slide 7: Suburban SSS Recovered in Q4 to ~Flat YoY; Urban Improving
S U B U R B A N S S S R E C O V E R E D I N Q 4 T O ~ F L AT Y O Y ; U R B A N I M P R O V I N G Y E T S T I L L M AT E R I A L LY I M PA C T E D 1 URBAN/SUBURBAN2 QUARTERLY 2020 SAME-SHACK SALES3 VS PRIOR YEAR Second Quarter Third Quarter Fourth Quarter 2020 2020 2020 (0%) (16%) (38%) (31%) (43%) (
Slide 8: Sequential Recovery Continues Across All Regions
S E Q U E N T I A L R E C O V E RY C O N T I N U E S A C R O S S A L L R E G I O N S M A N H AT T A N A N D O T H E R U R B A N S H A C K S D R A G O V E R A L L C O M P 1 REGIONAL2 QUARTERLY 2020 SAME-SHACK SALES VS PRIOR YEAR3 Second Quarter Third Quarter Fourth Quarter 2020 2020 2020 (4%) Northea
Slide 9: Digital Sales Remain Strong
D I G I TA L S A L E S 1 R E M A I N S T R O N G Q 4 A P P / W E B S A L E S G R E W 3 . 5 x Yo Y ; 9 0 % + D I G I TA L S A L E S R E TA I N E D S I N C E H I G H P O I N T I N M AY 2 Q3 Digital Mix 60% Q4 Digital Mix 59% In-Shack Sales $ Digital Sales $ Q2 Digital Mix 75% 81% 62% 60% 59% 58% 60% 6
Slide 10: 2021 Key Financial Drivers
2021 KEY FINANCIAL DRIVERS Total Revenue • Operating environment continues to be volatile and timing of full recovery remains Units: Company-operated: uncertain with dining room restrictions in place and varying states of open markets 2021: 35-40 • Accelerating new Shack development with expansion o
Slide 11: Driving Sales and Growing Addressable Market
DRIVING SALES AND GROWING ADDRESSABLE MARKET Omnichannel Global Expansion & Menu Guest Experience New Shack Models Innovation 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 11
Slide 12: Driving Sales and Growing Addressable Market
DRIVING SALES AND GROWING ADDRESSABLE MARKET Omnichannel Global Expansion & Menu Guest Experience New Shack Models Innovation New digital tools expand access to Robust domestic and international LTOs driving engagement among core the brand and remove friction in the growth & pipeline guests or
Slide 13: 2020 – A Year of Digital Transformation
2 0 2 0 – A Y E A R O F D I G I TA L T R A N S F O R M AT I O N Pandemic resulted in acceleration of digital innovation and execution Multiple digital product launches throughout 2020 focused on maximizing access, speed and convenience 1.8 million first-time app/web purchasers since early March Incr
Slide 14: New Digitally-Enabled Ordering Experiences: Curbside Pick-Up
N E W D I G I TA L LY- E N A B L E D O R D E R I N G E X P E R I E N C E S C U R B S I D E P I C K - U P L A U N C H E D I N J U LY ‘ 2 0 Pre-order on the app and food is then delivered to guest's car In place at ~70 Shacks primarily in suburban markets with sufficient parking ~150,000 unique guests
Slide 15: Delivery Through Shack App
N E W D I G I TA L LY- E N A B L E D O R D E R I N G E X P E R I E N C E S DELIVERY THROUGH SHACK APP Pilot across three Miami Shacks, full systemwide rollout through Q1/Q2 2021 Native delivery functionality without leaving Shack app/web (fulfilled by Uber Eats) Enhanced post-ordering experience wit
Slide 16: New Website and Android App Launch in H2 2021
N E W D I G I TA L LY- E N A B L E D O R D E R I N G E X P E R I E N C E S NEW WEBSITE AND ANDROID APP LAUNCH IN H2 2021 Redesigned mobile-first experience focused on conversion, speed and upsell An owned platform delivers an immersive branded experience Best-in-class tech enables enhanced merchandi
Slide 17: Digital Wallet and New Payments Platform Launch in H2 2021
N E W D I G I TA L LY- E N A B L E D O R D E R I N G E X P E R I E N C E S D I G I T A L W A L L E T A N D N E W P AY M E N T S P L AT F O R M L A U N C H I N H 2 2 0 2 1 Introduction of next-gen digital payment processing, card storage, and stored value processing platform Unlocks broader digital p
Slide 18: Data Platform Enhances Marketing Capabilities
D ATA P L AT F O R M E N H A N C E S M A R K E T I N G C A PA B I L I T I E S S E G M E N T AT I O N , T A R G E T I N G A N D I M P R O V E D M A R K E T I N G E F F I C I E N C Y Opportunity to reactivate specific New channel users within a to-the- experimentation (e.g. mile radius of specific Waz
Slide 19: Digital Roadmap – Still at Foundational Stage
D I G I TA L R O A D M A P – S T I L L AT F O U N D AT I O N A L S TA G E C O N T I N U E D I N V E S T M E N T C O M M I T T E D AS C APA B I L I T I E S S T R E N G T H E N 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 19
Slide 20: Driving Sales and Growing Addressable Market
DRIVING SALES AND GROWING ADDRESSABLE MARKET Omnichannel Global Expansion & Menu Guest Experience New Shack Models Innovation New digital tools expand access to Robust domestic and international LTOs driving engagement among core the brand and remove friction in the growth and pipeline guests
Slide 21: Targeting ~45% Company-Operated Shack Unit Growth Over Next Two Years
TA R G E T I N G ~ 4 5 % C O M PA N Y- O P E R AT E D S H A C K U N I T GROWTH OVER NEXT TWO YEARS 20 Shacks opened in 2020 despite 262-272 challenging COVID environment 217-222 Targeting 35-40 openings in 2021 and 45-50 openings in 2022 183 Return to pre-COVID development 163 momentum with robust p
Slide 22: Expansion of Urban and Suburban Shack Formats
E X PA N S I O N O F U R B A N A N D S U B U R B A N S H A C K F O R M AT S Proven Formats FREE STANDING PAD URBAN CENTER FOOD COURT SHOPPING CENTER New Shack Track & Drive- Thru Formats SHACK TRACK WALK-UP SHACK TRACK DRIVE-UP DRIVE-THRU SMALL 2020 DIGITAL-FOCUSED Strategic Plan Meeting of the Boar
Slide 23: Shack Track: Enhanced Digital Pre-Order and Pick-Up Solution
S H A C K T R A C K : E N H A N C E D D I G I TA L P R E - O R D E R AND PICK-UP SOLUTION Shack Track enables expanded digital pre-order and pick-up options for guests, delivering added speed and convenience via: • Curbside • Walk-up window • Drive-up window • In-Shack enhanced pick-up shelves Suppo
Slide 24: Eight Shack Track Walk-Up Windows Added in 2020
E I G H T S H A C K T R A C K WA L K - U P W I N D O W S A D D E D I N 2 0 2 0 MORE PLANNED IN 2021 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 24
Slide 25: University Village, WA – Opened September 2020
U N I V E R S I T Y V I L L A G E , WA – O P E N E D S E P T E M B E R 2 0 2 0 S H AC K T R AC K WAL K - U P W I N D O W F O R AP P AN D W E B P R E - O R D E R P I C K - U P 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 25
Slide 26: Cherry Creek, CO – Opened December 2020
C H E R RY C R E E K , C O – O P E N E D D E C E M B E R 2 0 2 0 S E P A R AT E E N T R A N C E A N D V E S T I B U L E F O R D I G I T A L A N D D E L I V E R Y P I C K U P 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 26
Slide 27: First Shack Track Drive-Up Window Converted at Vernon Hills
F I R S T S H A C K T R A C K D R I V E - U P W I N D O W C O N V E R T E D AT VERNON HILLS IN 2020, ABOUT FIVE NEW PLANNED IN 2021 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 27
Slide 28: Danbury, CT – Opening
D A N B U RY, C T – O P E N I N G 2 0 2 1 SHACK TRACK DRIVE-UP; PRE-ORDER ON APP AND DRIVE-UP TO COLLECT 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 28 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: B
Slide 29: Orlando, FL – Opening 2021
ORLANDO, FL – OPENING 2021 FIVE TO EIGHT DRIVE-THRU SHACKS PLANNED ACROSS THE US BY END OF 2022 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 29 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Zebra
Slide 30: Piedmont Park, Atlanta, GA – Opening 2021
P I E D M O N T PA R K , AT L A N TA , G A – O P E N I N G 2 0 2 1 D I G I T A L F I R S T S M A L L F O R M AT S I N U R B A N C E N T E R S 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 30 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as
Slide 31: Downtown Portland, OR – Opening 2021
DOWNTOWN PORTLAND, OR – OPENING 2021 O N G O I N G C O M M I T M E N T T O G R E AT U R B A N G AT H E R I N G P L A C E S 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 31 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalize
Slide 32: Oakland, CA – Opened December 2020
OAKLAND, CA – OPENED DECEMBER 2020 SHOWCASING ARTISTS FROM THE COMMUNITY 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 32
Slide 33: Global Licensed Business
GLOBAL LICENSED BUSINESS Opened 23 licensed Shacks in Increased Asian market 2021 targeting 15-20 Licensed partners are strong, 2020 Shack count by 35% in 2020 new licensed Shacks proven operators with previous success expanding global brands Speed of recovery by Successful Beijing market 2022 targe
Slide 34: Targeting >160 Total Licensed Shacks by End of 2022
TA R G E T I N G > 1 6 0 T O TA L L I C E N S E D S H A C K S B Y E N D O F 2 0 2 2 163-173 23 Shacks opened in 2020 143-148 despite challenging global operating environment 128 Targeting 15-20 openings in 112 2021 and 20-25 in 2022 84 Strength of brand continues to 69 reinforce opportunity for glob
Slide 35: Global Licensing Presence Amplified by Opportunities in Asia
GLOBAL LICENSING PRESENCE FURTHER AMPLIFIED BY O P P O R T U N I T I E S I N A S I A , PA R T I C U L A RY C H I N A United Kingdom 12 SHACKS South Korea 14 SHACKS US Licensed Turkey 22 SHACKS Japan 4 SHACKS China 12 SHACKS 7 SHACKS Mexico Hong Kong SAR 4 SHACKS 6 SHACKS Philippines Middle East 3 SH
Slide 36: Significant Growth Opportunity Ahead in China
SIGNIFICANT GROWTH OPPORTUNITY AHEAD IN CHINA THREE DEVELOPMENT AGREEMENTS IN PLACE IN MAINLAND CHINA WITH SEVEN S H A C K S O P E N T O D AT E Current mainland Chinese market thriving Contracts in place to significantly expand unit count and delivering sales above pre-COVID levels and regional foot
Slide 37: Taikoo Li Sanlitun, Beijing, China – Opened August 2020
TA I K O O L I S A N L I T U N B E I J I N G , C H I N A – O P E N E D A U G U S T 2020 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 37
Slide 38: Beijing, China – Opening 2021
BEIJING, CHINA – OPENING 2021 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 38 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Zebra
Slide 39: Venetian Sands, Macau – Opening 2021
VENETIAN SANDS, MACAU – OPENING 2021 Oakland, CA 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 39 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Zebra
Slide 40: Shenzhen, China Launch – Opening 2021
SHENZHEN, CHINA LAUNCH – OPENING 2021 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 40 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Zebra
Slide 41: Orchard Road, Singapore – Opened August 2020
ORCHARD ROAD, SINGAPORE – OPENED AUGUST 2020 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 41
Slide 42: Daejeon, Korea – Opened November 2020
DAEJEON, KOREA – OPENED NOVEMBER 2020 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 42
Slide 43: Condesa Roma, Mexico City – Opening 2021
CONDESA ROMA, MEXICO CITY – OPENING 2021 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 43 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Zebra
Slide 44: Vince Lombardi Travel Plaza, NJ – Opening 2021
V I N C E L O M B A R D I T R AV E L P L A Z A , N J – O P E N I N G 2 0 2 1 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 44 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Host International, Inc.
Slide 45: Driving Sales and Growing Addressable Market
DRIVING SALES AND GROWING ADDRESSABLE MARKET Omnichannel Global Expansion & Menu Guest Experience New Shack Models Innovation New digital tools expand access to Robust domestic and international LTOs driving engagement among core the brand and remove friction in the growth and pipeline guests
Slide 46: Elevated, Modern, Fun Versions of the Classics
E L E VAT E D , M O D E R N , F U N V E R S I O N S O F T H E C L A S S I C S C O N T I N U E D F O C U S O N C H I C K E N A N D B U R G E R LT O S 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 46
Slide 47: Seasonally Inspired Shakes and Beverages
S E A S O N A L LY I N S P I R E D S H A K E S A N D B E V E R A G E S 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 47
Slide 48: Culinary Collaborations
C U L I N A RY C O L L A B O R AT I O N S PA R T N E R S H I P S D R I V E B U Z Z & E X C I T E M E N T W H I L E F O C U S I N G O N F I N E D I N I N G R O O T S 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 48
Slide 49: Testing Various Vegetarian Options Through 2021
T E S T I N G VA R I O U S V E G E TA R I A N O P T I O N S T H R O U G H 2 0 2 1 V E G G I E S H A C K C U R R E N T LY I N T E S T AT ~ 3 0 S H A C K S 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 49
Slide 50: Thank You
THANK YOU 2020 Strategic Plan Meeting Board of theofBoard Directors of Directors Meeting| | Q4 202050 Q1 2019 50
Slide 51: Contact Information
C O N TA C T I N F O R M AT I O N INVESTOR CONTACT Melissa Calandruccio, ICR Michelle Michalski, ICR (844) Shack-04 (844-742-2504) investor@shakeshack.com MEDIA CONTACT Kristyn Clark, Shake Shack kclark@shakeshack.com 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 51