Slide 1: Jefferies 2018 Consumer Conference
Cc) ; SHAKE SS SHACK Jefferies 2018 asal @: Consumer Conference June 9, 2018 GHILLingauRS)
Slide 2: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements 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 that may cause actual resu
Slide 3: 3
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Slide 4: Shake Shack is a growing, loyal, connected community
Shake Shack is a growing, loyal, connected community. We are relentlessly focused on excellence, experience and hospitality. Driving Smart Growth Deeply Understanding-Our G Be Brilliant with the Basi Building Our Business Infra Stand for Something Good —
Slide 5: Consistent strong financial performance over 5+ years
Consistent strong financial performance over 5+ years Total Revenue ($M) caal 12 13 14 a Shack System-wide Sales' ($M) 1. See appendix for definition Note: CAGR is the compounded annual growth rate between '12 and '17. Cash Flow from Operations ($M) MB siz [a sis Esa) 12 13, 14 15 16 17 System-wide
Slide 6: First Quarter 2018 Results
First Quarter 2018 Results Total Revenue $99.1M, +29.1% Shack-level Cperating Profit Maxgin' $24.0M, +28.5% (25% of Shack sales) @peating Income $6.5M, +15.7% (6.6% of total revenue) Adjusted EBITDA! $16.2M, +32.8% 1. Shacklevel operating profit and adjusted EBITDA are nonGAAP measures. Definitions
Slide 7: On track to achieve 2018 targets
On track to achieve 2018 targets Total Revenue ($M) Shack Count 210+ $446 - $450 13 14 15 ‘16 17 ‘18E 13 14 15 16 17 "18E Note: CAGR is the compounded annual growth rate between 13 and the midpoint of 18 guidance
Slide 8: Domestic growth delivering increased momentum
Domestic growth delivering increased momentum Domestic Company-Operated Shacks at Period End 122-125 90 olo 9° & & 64 44 31 21 13 12 13 ‘14 15 ‘16 17 ‘18E Note: GAGR is the compounded annual growth rate represented by the maximum of the '18 range in relation to 12 2018 targeted to deliver our larges
Slide 9: Denver, CO
Denver, CO 9
Slide 10: Charlotte, NC
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Slide 11: Rice Village, TX
1 ets 4 4 bh Man: heh Rice Village, TX
Slide 12: Aventura Mall, FL
Aventura Mall, FL 12
Slide 13: Nashville, TN
Nashville, TN 13
Slide 14: Birmingham, AL
Birmingham, AL 14
Slide 15: Seattle, WA
Seattle, WA 15
Slide 16: Marin County, SF
Marin County, SF a SHAKE S=SHACK 16
Slide 17: 2018 - Significant growth year with focus on Asia
2018 - Significant growth year with focus on Asia Licensed Shacks at Period End 85-87 69 wo & (a 50 5 40 5 +1 32 4 1 bi 40 1 8 ok 12 13 14 15 16 17 “18E [By Middle East, Turkey, Russia [_]UK [| Japan, Korea [_] US Note: CAGR is the compounded annual growth rate represented by ‘the midpoint of the '1
Slide 18: IFC, Hong Kong
IFC, Hong Kong 18
Slide 19: Central City, Seoul, Korea
Central City, Seoul, Korea 19
Slide 20: Roppongi, Tokyo, Japan
Roppongi, Tokyo, Japan 20
Slide 21: Experience meets Convenience
“* 4 Experience meets Convenience > * Continue to grow digital fan base, since launch of iOS app in 2017 » © Average check >15% higher than in- . é Shack ’ * Increased ability to connect directly od "with guests * Planned browser-based ordering for 4 mobile and desktop later this year. YY x tet fe P
Slide 22: Digital innovation a key focus
/ — / Digital innovation a key focu : ee | Delivery - Your Shack whenever, _ wherever * Continue to test and learn through integrated pilots with key delivery service partners throughout 2018 * Strong demand from our guests for Shake Shack to be delivered, encouraged by the results with positive upl
Slide 23: Self-order Kiosks
Self-order Kiosks * Astor Place Shack, our first cashless , i in October 2017 Ea = | * Testing selForder kioskslin 6 Shack locations, retrofit, hybrid environment [NN * Goals of enhancing the guest — experience, improving ms of a | and providing an opportunity to offset I increasing labor costs ———
Slide 24: Menu Innovation
lf Reine * Launched as a ITO in Ql 201 8 * Featuring a new smokey cheese on both our BBQ Cheddar & Bacon Cheeseburger and the BBQ Cheddar and Bacon Griddled Chick’n
Slide 25: Menu Innovation
Menu Innovation * Currently in test * Launched as a National LTO at the end of January * Healthier option a SHAKE SS SHACK 25
Slide 26: Menu Innovation
Menu Innovation Veggie Shack * Currently in test in various locations in New York, California and Texas * Launched in Q1’18 * Our own innovation made from brown rice, black bean, and beats [amy SHAKE S=SHACK 26
Slide 27: Team Members
Team Members [oe] Shareholders Enlightened Hospitality o) & Community a SHAKE SS SHACK 27
Slide 28: Looking ahead...
Looking ahead... * Strong growth momentum to date, both domestically & internationally *2018 will represent an acceleration of Shack openings, another record year throughout new and existing markets *We will strategically invest in financial & operational systems and infrastructure to support ramped
Slide 29: Appendix
= , SHAKE 3 SHACK Appendix
Slide 30: Definitions
Definitions “Adjusted EBITDA,” a norGAAP 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 its core operations and
Slide 31: Shack-Level Operating Profit
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 When
Slide 32: Shack-level operating profit reconciliation
Thirteen Weeks Ended (dollar amounts in thousands) March 28, 2018 March 29, 2017 Operating income $ 6,514 $ 5,628 Less: Licensing revenue 3,027 2,594 Add: General and administrative expenses 11,809 8,470 Depreciation expense 6,498 4,748 Pre-opening costs 2,029 2,415 Loss on disposal of property and
Slide 33: Adjusted EBITDA
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 equit-based compensation expense, deferred rent
Slide 34: Adjusted EBITDA reconciliation
Thirteen Weeks Ended (in thousands) March 28, 2018 March 29, 2017 Net income $ 4,979 $ 3,862 Depreciation expense 6,498 4,748 Interest expense, net 558 283 Income tax expense 1,198 1,658 EBITDA 13,233 10,551 Equity-based compensation 1,437 1,249 Deferred rent 69 225 Loss on disposal of property and