Slide 1: First Quarter 2020 Earnings Supplemental
FIRST QUARTER 2020 EARNINGS SUPPLEMENTAL MAY 4, 2020
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 RWA R D - L O O K I N G S TAT E M E N T S This presentation contains forward-looking Forward-looking statements discuss the Company's current expectations and projections relating to its financial position, results of operations, plans, objectives, statements, with
Slide 3: Q1 2020 Financial Highlights
Q1 2020 FINANCIAL HIGHLIGHTS -12.8% YoY +8% YoY +13% YoY Decrease in Total Revenue Shack System-wide Sales2 Same-Shack Sales1 $143.2M $221.6M $14.3M 13 $26.4M Adjusted EBITDA3 New Domestic Shack-Level Operating -20% YoY Company-Operated and Licensed Profit4 Shacks opened in Q1 19.1% of Shack Sales 1
Slide 4: Business Highlights
BUSINESS HIGHLIGHTS The COVID-19 pandemic has Despite the global impact of The company opened had a severe impact on the COVID-19 during the First 4 company-operated business starting in March as Quarter, System-wide sales Shacks and 8 dining rooms closed, and stay-at- grew by 13% compared to net li
Slide 5: Quarter-To-Date Snapshot
Q 2 2 0 2 0 TO D AT E S N A P S H O T -45% YoY -47% YoY +100% Decrease in Decrease in Same-Shack Sales1, Shack System-wide Sales2, Average Weekly Sales Growth Week Ending 4/29/20 Week Ending 4/29/20 Week Ending 4/29/20 compared to Week Ending 3/25/20 80% ~3X YoY Digital3 % of Total Shack Sales, Incr
Slide 6: Weekly Company-Operated Shack Sales
W E E K LY C O M PA N Y- O P E R AT E D S H A C K S A L E S Sales have shown steady improvement over the last five weeks with most recent Average Weekly Sales 1 doubling when compared to week ending 3/25; driven by strength in our digital channels, new operating models and expansion of integrated de
Slide 7: Weekly Digital Sales Performance
W E E K LY D I G I TA L S A L E S P E R F O R M A N C E Throughout COVID-19, digital1 channels have been a key sales driver, consistently increasing week-over-week with strong growth across each of app, web and delivery In-Shack Sales $ Digital Sales $ 84% 83% 81% % Indicates 75% 64% 71% Digital Mix
Slide 8: Same-Shack Sales Week Ending April 29, 2020 vs Prior Year
SAME-SHACK SALES WEEK ENDING APRIL 29, 2020 VS PRIOR YEAR Weekly sales across all regions1 improving; significant exposure to NYC which has been acutely impacted -60% NYC -35% Northeast -39% Southeast -41% Midwest -41% Current Year Same-Shack Sales $ West Prior Year Same-Shack Sales $ 1. The regions
Slide 9: Licensed Business Update
L I C E N S E D B U S I N E S S U P D AT E Approximately half of licensed Shacks currently closed1, with the vast majority of those remaining open operating in a restricted capacity Licensed Shacks Temporarily Closed Domestically, eight of a total of 14 airports/roadside locations are closed, in Lic
Slide 10: Focus on Company Owned Digital Channels and Expansion of Delivery Partnerships
F O C U S O N C O M PA N Y O W N E D D I G I TA L C H A N N E L S A N D E X PA N S I O N O F D E L I V E RY PA R T N E R S H I P S Shack App & Web are Shifted to multi-partner Capitalizing on update the strongest growing strategy, integrating marketing digital channels year- UberEats, DoorDash, Cavi
Slide 11: Innovation and Flexibility Through Operating Model Pivots in Reaction to COVID-19
I N N O VAT I O N A N D F L E X I B I L I T Y T H R O U G H O P E R AT I N G M O D E L P I V O T S I N R E A C T I O N TO C O V I D - 1 9 In response to closed dining rooms and social distancing requirements, Shacks have created new methods of operating with makeshift drive throughs, curbside pick-u
Slide 12: Designing New "Shack Track" Experience
DESIGNING NEW “SHACK TRACK” EXPERIENCE Commitment to greater convenience, increasing access, and clear distinction between in-Shack, pre-order and delivery pick-up experiences Shack app & web pick-up with a potential drive-thru pre- Exterior pick-up windows to support continued growth order experien
Slide 13: Definitions
DEFINITIONS “Adjusted EBITDA,” a non-GAAP measure”, is defined as EBITDA (as defined below), "Shack-level operating profit," a non-GAAP measure, is defined as Shack sales less excluding equity-based compensation expense, deferred lease costs, impairment and loss Shack-level operating expenses includ
Slide 14: Income Statement
I N C O M E S TAT E M E N T Thirteen Weeks Ended March 25, 2020 March 27, 2019 Shack sales $ 138,048 96.4% $ 128,569 97.0% Licensing revenue 5,122 3.6% 4,040 3.0% TOTAL REVENUE 143,170 100.0% 132,609 100.0% Shack-level operating expenses(1): Food and paper costs 39,564 28.7% 37,991 29.5% Labor and r
Slide 15: Shack-Level Operating Profit Definitions
S H A C K - L E V E L O P E R AT I N G P R O F I T D E F I N I T I O N S Shack-Level Operating Profit Limitations of the Usefulness of this Measure Shack-level operating profit is defined as Shack sales less Shack-level operating Shack-level operating profit and Shack-level operating profit margin m
Slide 16: Shack-Level Operating Profit
S H A C K - L E V E L O P E R AT I N G P R O F I T Thirteen Weeks Ended (dollar amount in thousands) March 25, 2020 March 27, 2019 Operating income (loss) $ (787) $ 5,162 Less: Licensing revenue 5,122 4,040 Add: General and administrative expenses 16,191 13,937 Depreciation expense 11,768 8,966 Pre-
Slide 17: Adjusted EBITDA Definitions
ADJUSTED EBITDA DEFINITIONS EBITDA and Adjusted EBITDA Limitations of the Usefulness of These Measures EBITDA is defined as net income (loss) before interest expense (net of interest EBITDA and adjusted EBITDA may differ from similarly titled measures used by income), income tax expense and deprecia
Slide 18: Adjusted EBITDA
ADJUSTED EBITDA Thirteen Weeks Ended (1) Represents amortization of capitalized implementation costs related to cloud-based software arrangements that (dollar amounts in thousands) March 25, 2020 March 27, 2019 are included within general and administrative expenses. Net income (loss) $ (1,079) $ 3,
Slide 19: 2020 Adjusted Pro Forma Effective Tax Rate
2 0 2 0 A D J U S T E D P R O F O R M A E F F E C T I V E TA X R AT E Thirteen Weeks Ended March 25, 2020 Income Tax Expense Income (Loss) Before (dollar amounts in thousands) (Benefit) Income Taxes Effective Tax Rate As reported $ 87 $ (992) -8.8% Non-GAAP adjustments (before tax): Executive transi
Slide 20: 2019 Adjusted Pro Forma Effective Tax Rate
2 0 1 9 A D J U S T E D P R O F O R M A E F F E C T I V E TA X R AT E Thirteen Weeks Ended Thirteen Weeks Ended Thirteen Weeks Ended Thirteen Weeks Ended Fiscal Year Ended March 27, 2019 June 26, 2019 September 25, 2019 December 25, 2019 December 25, 2019 Income Tax Income Before Effective Tax Incom
Slide 21: 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 646-747-8776 kclark@shakeshack.com 21