Slide 1: 2017 Supplemental Earnings Slides
2017 Supplemental Earnings Slides February 15, 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: Earnings Highlights: Fourth Quarter 2017
Earnings Highlights Fourth Quarter 2017 Total Revenue ($M) Shack-Level Operating Profit1 ($M) +32% +33% $96 $24 $73 $18 2016 2017 2016 2017 Operating Income ($M) Adjusted EBITDA1 ($M) +20% +36% $6 $15 $5 $11 2016 2017 2016 2017 1. Shack-Level operating profit and adjusted EBITDA are non-GAAP measure
Slide 4: Earnings Highlights: Full Year 2017
Earnings Highlights Full Year 2017 Total Revenue ($M) Shack-Level Operating Profit1 ($M) +34% +26% $359 $92 $268 $73 2016 2017 2016 2017 Operating Income ($M) Adjusted EBITDA1 ($M) +21% +30% $34 $65 $28 $50 2016 2017 2016 2017 1. Shack-Level operating profit and adjusted EBITDA are non-GAAP measures
Slide 5: Consistent, Strong Performance over 5+ Years
Consistent, Strong Performance over 5+ Years Total Revenue ($M) Cash Flow from Operations ($M) CAGR 44% CAGR 43% $359 $71 $268 $54 $191 $41 $82 $119 $57 $12 $13 $14 ’12 ’13 ’14 ’15 ’16 ’17 ’12 ’13 ’14 ’15 ’16 ’17 System-wide Shack Count Shack System-wide Sales1 ($M) (At Period End) CAGR 46% CAGR 50%
Slide 6: NYC Continues to Represent a Significant Portion of Same-Shack Sales
NYC Continues to Represent a Significant Portion of Same-Shack Sales1 Declining Share of Same-Shack Sales1 Composition of Same-Shack Sales1 Attributable to NYC 100% As of 2017, New York City represented 23% of 90% our Same-Shack Units and 41% of our Same Shack Sales 80% 44% 49% 70% 59% The New York
Slide 7: Domestic Company-Operated Shacks Open in New Markets Across the Country
Domestic Company-Operated Shacks Open in New Markets Across the Country Domestic Company-Operated Shacks (At Period End) Rapid Domestic Growth 150 Entered several new markets in 2017 • Detroit, MI 125 122 - 125 • Lexington, KY • San Antonio, TX 100 CAGR 45% 90 • San Diego, CA 17 • Milwaukee, WI 75 6
Slide 8: Licensing Growth Consistently Strong, with Focus on Asia
Licensing Growth Consistently Strong, with Focus on Asia Licensed Shacks (At Period End) Diversified International Growth 100 Operating globally through licensed 90 85 - 87 partnerships in 12 countries 80 Plans to expand further in existing and 69 70 new markets in 2018/2019, including CAGR 49% 8 Ho
Slide 9: 2018 Guidance
2018 Guidance Total Revenue 1 $444M to $448M — — Licensing Revenue $12M to $13M Same-Shack Sales 2 Flat Domestic Company- Operated Shack 32 to 35 Openings Licensed Shack Openings 16 to 18, net Shack-Level Operating Profit 2 24.5% to 25.5% General and $49M to $51M $4M to $6M Administrative Core Proje
Slide 10: 2018 Investments in People, Systems & Digital Innovation
2018 Investments in People, Systems & Digital Innovation, Strengthening the Foundation for Significant Growth • Technology and marketing initiatives in order to deliver increasing growth from existing and future digital channels • Investment in our people – hiring, training and development to suppor
Slide 11: Robust Near-Term Target Through 2020
Robust Near-Term Target Through 2020 Then (IPO) 1 Now 2 2020 CAGR Company- Operated 31 90 200+ 36% Shacks Licensed Shacks 32 69 120+ 25% Total Revenue $119M $359M $700M+ 34% 1. Represents Fiscal Year 2014. IPO was January 2015. 2. Represents Fiscal Year 2017. Note: CAGR is the compounded annual grow
Slide 12: Appendix
Appendix INCLUDING GAAP AND NON-GAAP MEASURES 12
Slide 13: Income Statement
Income Statement Fourth Quarter and Year to Date 2017 Fiscal Quarter Ended Fiscal Year Ended December 27, 2017 December 28, 2016 December 27, 2017 December 28, 2016 Shack sales $ 93,130 96.9% $ 70,920 96.8% $ 346,388 96.5% $ 259,350 96.6% Licensing revenue 3,006 3.1% 2,351 3.2% 12,422 3.5% 9,125 3.4
Slide 14: 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 15: Shack-Level Operating Profit
Shack-Level Operating Profit Shack-Level Operating Profit Shack-level operating profit is defined as Shack sales less Shack-level operating expenses, including food and paper costs, labor and related expenses, other operating expenses and occupancy and related expenses. How This Measure Is Useful Wh
Slide 16: Shack-Level Operating Profit
Shack-Level Operating Profit Fiscal Quarter Ended Fiscal Year Ended December 27, December 28, December 27, December 28, (dollar amounts in thousands) 2017 2016 2017 2016 Operating income $ 5,838 $ 4,988 $ 33,813 $ 27,805 Less: Licensing revenue 3,006 2,351 12,422 9,125 Add: General and administrativ
Slide 17: 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 equity-based compensation expense, deferred ren
Slide 18: Adjusted EBITDA
Adjusted EBITDA Fiscal Quarter Ended Fiscal Year Ended December 27, December 28, December 27, December 28, (in thousands) 2017 2016 2017 2016 Net income (loss) $ (11,032) $ 5,457 $ 8,884 $ 22,146 Depreciation expense 6,094 4,273 21,704 14,502 Interest expense, net 479 87 1,565 285 Income tax expense
Slide 19: Investor Contact: Media 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 19