Slide 1: ICR Conference January 9, 2018
ICR CONFERENCE JANUARY 9, 2018 1
Slide 2: Cautionary note on forward looking statements
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 res
Slide 3: 3
3
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. 4
Slide 5: Domestic growth delivering increased momentum
Domestic growth delivering increased momentum Domestic Company-Operated Shacks at Period End • 2017 represented a record 90 year with 26 domestic openings • New Market entries included Detroit, San Diego, 64 Milwaukee, St. Louis, Lexington and San Antonio CAGR 47% • Continued market penetration 44 i
Slide 6: Photo credit: Zagat 2017
Photo credit: Zagat 2017 6
Slide 7: Troy, MI
Get pic from Matt Meyer - nighttime Rice Village, Houston, TX Troy, MI Troy, MI 7
Slide 8: El Segundo, CA
[INSERT 2017 DOMESTIC OPENING PIC 4] Rice Village, Houston, TX El Segundo, CA 8
Slide 9: The Wharf, DC
[INSERT 2017 DOMESTIC OPENING PIC 4] Rice Village, Houston, TX The Wharf, DC 9
Slide 10: Milwaukee, WI
Milwaukee, WI 10
Slide 11: St. Louis, MO
SHAKE £ > SHACK SHAKE
Slide 12: Domestic growth delivering increased momentum
Domestic growth delivering increased momentum Domestic Company-Operated Shacks at Period End 122 - 125 • 2018 targeted to deliver our largest class of domestic openings at 32-35 Shacks, although 2H back-weighted 90 • Strength of brand continues to enable premium real estate choices CAGR 46% 64 • Ope
Slide 13: Denver, CO
ti ba enver, CO- + al
Slide 14: Rice Village, TX
Rice Village, TX 14
Slide 15: Seattle, WA
Seattle, WA 15
Slide 16: Diversified and strong licensing growth
Diversified and strong licensing growth Licensed Shacks at Period End • Operating globally across 69 12 countries 8 • Capital light, high margin 10 expansion model 50 CAGR 54% 5 11 • Key partnerships with top- 40 5 1 tier international 4 7 restaurant/retail operators 32 1 5 5 • 2017 openings across
Slide 17: LAX, T3
LAX, T3 17
Slide 18: M&T Stadium, Baltimore, MD; Minute Maid Park, Houston, TX
M&T Stadium, Baltimore, MD Minute Maid Park, Houston, TX 18
Slide 19: Riyadh, KSA
x al @ | A _ =~) id Poy Sp - =. he Riyadh, KSA
Slide 20: Cambridge Circus, London, UK
Cambridge Circus, London, UK 20
Slide 21: Goyang, Seoul, Korea
Goyang, Seoul, Korea 21
Slide 22: Roppongi, Tokyo, Japan
Roppongi, Tokyo, Japan 22
Slide 23: 2018 - Significant growth year with focus on Asia
2018 - Significant growth year with focus on Asia Licensed Shacks at Period End 85 - 87 • International brand strength continues to represent 69 significant ongoing expansion 8 opportunity CAGR 49% 10 • Most recent partnership with 50 Maxim’s will see us entering 5 40 11 Hong Kong in 2018 and 5 1 Sh
Slide 24: IFC, Hong Kong, China
Avenues, Bahrain IFC, Hong Kong, China 24
Slide 25: Consistently strong financial performance
Consistently strong financial performance Shack System-wide Sales1 ($M) Total Revenue ($M) CAGR 49% CAGR 47% $499 $336 $403 $268 $295 $191 $217 $119 $140 $57 $82 $81 ’12 ’13 ’14 ’15 ’16 Q3 ’17 ’12 ’13 ’14 ’15 ’16 Q3 ’17 TTM2 TTM2 Adjusted EBITDA3 ($M) Cash Flow From Operations ($M) CAGR 58% CAGR 46%
Slide 26: Born in NYC; strong nationwide
Born in NYC; strong nationwide Midwest1 $4.5M AUV2 (7) 31% SLOP3 Northeast1 (32) $3.8M AUV2 25% SLOP3 Q3 ‘17 TTM Portfolio West1 79 Shacks NYC1 (10) $4.7M AUV 2 (16) $4.8M AUV2 $7.2M AUV2 27% SLOP 3 28% SLOP3 28% SLOP3 Southeast1 (14) $3.5M AUV2 26% SLOP3 Note: The above represents the results for t
Slide 27: Preliminary assessment of tax reform
Preliminary assessment of tax reform • Reviewing and analyzing the full impact of the bill and will provide tax guidance on Q4 earnings call (Feb ‘18) • Decreased Federal corporate rate will lower our effective tax rate and benefit EPS • Revaluation of Deferred Tax assets & Tax Receivable Agreement
Slide 28: Digital innovation a key focus & area of investment
Digital innovation a key focus & area of investment Experience meets Convenience • iOS app launched Jan ’17; Android Jul ‘17 • Seamless order-to-pickup experience • Encouraging download and retention performance • Average check >15% higher than in- Shack • Increased ability to connect directly with
Slide 29: Digital innovation a key focus & area of investment
Digital innovation a key focus & area of investment Astor Place, NYC • Our latest NYC Shack, designed to experiment • Kiosk only, no cashiers with guests supported by hospitality champs • Kiosk experience highly visual and mirrors the app • Cashless environment • Split kitchen allows for greater thr
Slide 30: Delivery
Delivery Your Shack whenever, wherever • Multiple pilots conducted through 2017 with potential future delivery partners • Test and learn approach across multiple selection criteria including operational integration • Any future partnership must have sustainable economics for the long- term • Focus o
Slide 31: Menu Innovation: Hot Chick'n
Menu Innovation Hot Chick’n • Launched as an App-exclusive offering to drive App usage • Ran July- December • Strong performance alongside the Chick’n Shack 31
Slide 32: Menu Innovation: Chili
Menu Innovation Chili • Currently running nationally • Multi-category LTO: Burger, Fries, Dog, & Bowl of Chili 32
Slide 33: Menu Innovation: Griddled Chicken
Menu Innovation Griddled Chicken • Currently in test • Launches as a National LTO end of January • Healthier Chicken option 33
Slide 34: Q1 2018 Trio of Shakes
Q1 2018 Trio of Shakes Mint Cookies & Cream Apple Pie à la Mode Chocolate Chip Red Velvet 34
Slide 35: People & Culture
i a People & Culture Lo at Wag “ a” ™ . Team Members a oO Ge) a Shareholders Enlightened Guests Hospitality 6) B Suppliers Community EE — SHAKE SHACK 35
Slide 36: 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 37: 37
37
Slide 38: ICR Conference January 9, 2018
ICR CONFERENCE JANUARY 9, 2018 38
Slide 39: Appendix
= , SHAKE 3 SHACK Appendix
Slide 40: Definitions
Definitions “Adjusted EBITDA,” a non-GAAP measure, is defined as EBITDA excluding equity-based compensation expense, deferred rent expense, losses on the disposal of property and equipment, as well as certain non-recurring items that the Company does not believe directly reflect its core operations
Slide 41: Income Statement – Third Quarter and YTD 2017
Income Statement – Third Quarter and YTD 2017 Thirteen Weeks Ended Thirty-Nine Weeks Ended September 27, 2017 September 28, 2016 September 27, 2017 September 28, 2016 Shack sales $ 91,100 96.3% $ 71,871 96.4% $ 253,258 96.4% $ 188,430 96.5% Licensing revenue 3,509 3.7% 2,696 3.6% 9,416 3.6% 6,774 3.
Slide 42: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains non-GAAP financial measures, including but not limited to, EBITDA, Adjusted EBITDA, Shack-level operating profit and Shack-level operating profit margin. Shack-level operating profit and Shack-level operating profit margin are not required by, o
Slide 43: Shack-level Operating Profit by Region
Shack-level Operating Profit by Region Total Company Domestic Company-operated Shacks By Region (1), Q3 '17 TTM Trailing Twelve Corporate / (dollar amounts in thousands) Q4 2016 Q1 2017 Q2 2017 Q3 2017 Months NYC Northeast Southeast Midwest West Other (2) Domestic Company-operated Shacks (Opened Dur
Slide 44: Adjusted EBITDA
Adjusted EBITDA Trailing Twelve Months Ended (in thousands) Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q3'17 2016 2015 2014 2013 2012 Net income $ 5,457 $ 3,862 $ 8,184 $ 7,870 $ 25,373 $ 22,146 $ 3,124 $ 2,118 $ 5,423 $ 4,133 Depreciation expense 4,273 4,748 5,258 5,604 19,883 14,502 10,222 5,809 3,541 2,162
Slide 45: 2017 & 2018 Full Year Guidance
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 23 to 24 24 to 26 32 to 35 openings Licensed Shack openings 15, net 18, ne